In a boost to the textile industry in Uttarakhand, the state government has earmarked over 103 acres for the establishment of the long promised textile park at the State Infrastructure and Industrial Development Corporation of Uttarakhand Ltd (SIDCUL), Sitarganj. The park is to be completed in the current year, said NK Koranga, DGM, SIDCUL, in Rudrapur. “We have started inviting applications from industrialists for the textile parks at Pantnagar, Sitarganj, Jaspur and Rudrapur towns. The park is to be established in joint venture with the Central government holding 40 per cent share and the industrialists and the state government having the remaining 60 per cent,” said Gaurav Chatwal, Regional Manager, SIDCUL, The Tribune newspaper has reported. Chatwal said over seven textile manufacturers from across the country had applied to establish their units at SIDCUL, Sitargaj. According to SIDCUL sources, some companies have even identified land to establish their units. Former Chief Minister Vijay Bahuguna had announced the establishment of the textile park at the Sitarganj SIDCUL in 2012. The then Union Textile Minister Anand Sharma had laid its foundation stone of the project. If the park is established according to plans, every company will be able to create over 3,000 jobs, the report said.
SOURCE: Fibre2fashion
South India Textile Research Association (SITRA), which has a centre of excellence for medical textiles here, will commission an incubation facility in another three months to support new ventures in medical textiles. Prakash Vasudevan, director of SITRA, told reporters here on Tuesday that the facilities at the centre are now used by 19. The dedicated incubation centre for medical textiles (textile products used in the healthcare sector) is set up at a cost of Rs. 2 crore and it can incubate two units at a time for a period of six months to two years. Medical textiles is growing in the country every year at 13 per cent to 15 per cent. Both, medical and hygiene textiles, are picking up in the country as more hospitals are using disposable products. The centre of excellence here has so far completed 25 projects and three of these products have been commercialised. It has also developed standards for medical textiles for the Bureau of Indian Standards. Mr. Vasudevan said the association has tie-ups with some overseas universities for technology and plans more such agreements with universities in Australia, Germany, and Korea.
Focus
SITRA gets non-plan support and plan support (for research and development projects) from the Union Government. It takes up three to five research projects a year. So far, the focus of the association was on the spinning sector. Now it is looking at the other segments – weaving, and processing. “Just 12 per cent to 13 per cent of our revenue is from government grant. The rest are generated by SITRA. We hope to be self-sustainable in another five years,” he said. Its testing facilities and energy audits are used widely by the industry and there are plans to set up a centre at SIPCOT, Perundurai, to extend technical guidance to textile processing units there. SITRA has trained 10,000 people in the last three years and plans to impart training to another 25,000 in the next three to four years under the integrated skill development scheme.
Diamond Jubilee celebrations
According to D. Krishnamurthy, chairman, council of administration of SITRA, the association’s Diamond Jubilee celebrations will be held on January 22 here. Union Minister for Textiles Santhosh Kumar Gangwar will take part. The association has also organised a CEOs meet on “Prognosticating 2025 – Opportunities and Challenges for the Textile Industry” on the same day.
SOURCE: The Hindu
Textile processors in the district have been encouraged by the Tamil Nadu Pollution Control Board to establish Common Effluent Treatment Plants with promise of 75 per cent funding from Central and State Governments. The Central Government has assured to provide 50 per cent funding and the State Government 25 per cent. The rest of the amount must be invested by the units themselves. The Rs. 700 crore CETP project for Erode, Karur, Salem and Tirpur districts to be executed by Tamil Nadu Water Investment Corporation must be optimally utilised by the textile units, State Environment Minister Thoppu N.D. Venkatachalam said at a meeting with processors on Monday. The technicalities for establishing a CETP at B.P. Agraharam in Erode were analysed during the meeting. On its part, the Erode Textile Processors Association has sought interest-free loan for establishing the proposed CETP. The association already has in its possession a 22-acre site for the purpose, against the requirement of just six acres.
According to the association president K.S. Thennarasu, there was no cause for any fear of pollution since the about 400 dyeing, bleaching and printing units that were already equipped with Effluent Treatment Plants and Reverse Osmosis systems would get only the sludge treated at the CETP. The proposed facility will only handle solid waste, he said, after a petition was submitted to the Minister by PMK State Deputy General Secretary P.V. Arumugam opposing the location for CETP. Mr. Arumugam had expressed apprehensions over contamination of groundwater in the vicinity of River Cauvery. The proposed CETP, warranting Rs. 370 crore expenditure, is likely to be established in two phases. In the first phase, bigger units will together see through formation of a CETP at a cost of Rs. 170 crore. The smaller companies will have another such facility in the second phase. Due to scattered location of the units, officials advised the industries to transport sludge from their units to the proposed CETP through tanker lorries. Officials informed that proposals have already been sent to the Government for approval of CETP sites proposed for the clusters in Bhavani, Perundurai and Chennimalai.
SOURCE: The Hindu
Chennimalai, located at a distance of 27 km from Erode, was once a flourishing handloom sheeting hub. Though still known for its bedsheets and Jamakkalams, the village has in the last five decades or so lost its distinct handwoven textile heritage to powerloom. An attempt is being made now to revive, protect and preserve the heritage skills of the handloom weavers in that belt.
Dwindling numbers
The villagers say the number of handloom weavers in Chennimalai has shrunk from over a lakh in the 60s and 70s to less than 3,000 at present. They admit that the younger lot moved out in search of greener pastures because “handloom weaving is hard labour and the returns are not commensurate to the work.” Devarajan Chinnuswamy, Managing Director of URC Construction (P) Ltd, who incidentally hails from a village near Chennimalai, has vowed to restore the textile heritage of this small village. “When I meet up with the octogenarian weavers here, they invariably recount their days of hard labour before voicing apprehension about the possible extinction of the Chennimalai weaver tribe. I decided to transform the villages. Thus was born Five P Venture India (P) Ltd – an initiative that I mooted along with my friend Sampath Kasirajan, an expert in value chain engineering and cluster development.” The duo with a technical team for guidance is now trying to beat the odds to revive this community.
Five P's
Five P's stand for “protection (of the heritage), preservation (of tradition), promotion (of hard skills), which in turn will ensure prosperity and posterity of the community,” Chinnuswamy explained. And to ensure that the weavers do not struggle within the confines of their homes, as also understand the market requirements better, Chinnuswamy has set up a loom factory at a place called Myladi, about 3 km from Chennimalai. The unit which has come up on a 15-acre plot is being developed in phased manner. “We have earmarked seven acres in the first phase of development and plan to install 27 looms in each of the two sheds. Our investment on the looms is around Rs. 3.5 cr,” the URCC MD said adding “we are trying to raise a like-sum to sustain it for the next 2-3 years.”
Product offering
Production has already begun in one of the two sheds and Five P Venture has, according to its Chief Executive Bharathi Chinnuswamy, started offering to the global market a variety of contemporary, handwoven and bespoke fabrics with jacquard designs using recycled, organic and natural dyed yarns. “The demand from overseas buyers is overwhelming. They are awed with our designs. We have in the first nine months of the last calendar year exported products worth Rs. 40 lakh. The demand is huge. Five P is in the process of reaching out to many designers to use this loom facility,” Bharathi said.
‘Nool By Hand’
In June 2015, Five P launched an in-house brand ‘Nool By Hand’. “Nool strikes a fine balance with the designer entrepreneurs towards creating a range of apparel and home textiles. Our range includes natural linen, Indigo dyed fabric, organic cotton and cotton denim. Five P will enter every segment that has a niche to offer. We have just begun the journey through the social medium. Our intent is to use this tool extensively to promote our brand,” Bharathi told Business Line. Nool has participated in five exhibitions since its launch. Bharathi is aiming to introduce the brand in at least 10 boutique stores across the country by June this year.
SOURCE: The Hindu Business Line
In an endeavor to promote Indian Handicraft products and to showcase the rich heritage of India, CCIC has organized an Exhibition cum Sale of exclusive handcrafted creations by National Awardees in its showroom at Janpath, New Delhi from 19th January 2016 to 31st January 2016. The exhibition was inaugurated today by Ms. Rashmi Verma, Secretary, Ministry of Textiles, at CCIC showroom, Janpath, New Delhi. Synonym with its name ‘SHRESTHKRITI’ the exhibition showcases unique artifacts, paintings, Wooden Panels, Antique Oil Lamps, Brass handicrafts, Marble Artefacts, Painted Wooden Artefacts , Dhokra ,Pottery, Papier machie, sarees ,shawls, and home linen. The highlight of the exhibition was the launch of “COTTAGE PREMIUM”- An exquisite collection of highly exclusive and very limited collection of handicraft and handloom products for the connoisseur of crafts. Showcosing works of Master Craftspersons, Shilpgurus and National Award Winning Artisans, besides a few handpicked masterpieces. The limited Cottage Premium Collection is available initially only in CCIC Emporium of Jawahar Vyapar Bhawan, Janpath, New Delhi. Cottage Premium Collection is an ode to India’s hoary crafts and weaving traditions. Each product is a marvel and proves a worthy edition to the premium collection. This exhibition is yet another step in the series of special displays being organised by CCIC to encourage the craftpersons and present their creations to the discerning buyers from all parts of the globe. The exhibition is open to general public from January 19th to 31st, 2016, and the visiting hours will be 10.00am to 7.00pm daily.
SOURCE: PIB
Army soldiers serving in the inhospitable, icy climates of Siachen glacier — the most dangerous battlefield in the world — could soon be using special jackets, trousers, boots, sleeping bags and other specialised extreme winter clothing items that are made in India. These clothes are designed to allow soldiers to operate in temperatures which go up to minus 55 degree Celsius. Since 1984, when India captured the Siachen glacier, the army has lost 869 soldiers in Siachen due to extreme climatic conditions and environmental factors. Indian suppliers have now, for the first time, given their samples to the army for trials in five items of Siachen and Super High Altitude clothing. Soldiers deployed beyond an altitude of 14,000 feet — in Siachen, Kargil, Drass, Arunachal Pradesh and Sikkim —are issued Siachen and Super High Altitude clothing which consists of 55 items. Out of 55, 22 are one-time issue items, such as a down jacket or a sleeping bag, issued to an individual soldier and not recycled thereafter: nine of them are imported. The balance 33 items are unit issue items, such as special tents and ice axes: 11 of them are imported. These imported items are mostly made in China, although they are supplied by around a dozen foreign firms from Switzerland, Italy, Australia, Canada, Singapore, Norway and UK. The annual requirement of Siachen clothing for the army is around 27,000 sets. The army maintains a reserve for another year’s requirement. The average shortfall of items in Siachen clothing is between 5-10 per cent every year which is replenished from the reserves.
Besides ensuring that there is no depletion in reserve stock, once these items are produced under ‘Make in India’, the defence ministry is also concerned about other problems related to the import of Siachen clothing. The import process has a long gestation period and fluctuating foreign exchange rates further complicate it. “The biggest issue for us is the China factor. Most of these items use bird feathers as a filling. Even though the items are certified for avian flu, we can never be sure about the Chinese products. Despite the quality check, we feel that we are still taking a chance of bringing infection to India,” a defence ministry official said. As per defence ministry sources, the impetus to promote ‘Make in India’ in Siachen clothing came from a meeting last February with the Indian Technical textile Association (ITTA), the apex body representing technical textile manufacturers in the country. Army had displayed all the items of Siachen clothing at an exhibition-cum-seminar in Delhi and asked Indian manufacturers to bid for supplying the imported items. “This first of its kind event was supported by the Ministry of Textiles and attended by Defence Forces, DRDO, DGQA and the domestic Industry. That interaction has now started showing results and the army is moving towards both product improvement and cutting down its import bill for textiles by working with Indian companies,” Sundaraman KS, vice-chairman of ITTA and executive director of Shiva Texyarn Ltd told The Indian Express. Besides Shiva Texyarn, National Textile Corporation, Sara Sae, Key Tent and Sabre Safety Ltd are the other Indian companies who have deposited the samples of their items with the army. After the tenders are opened, these items will undergo 90 days of trials at Siachen in peak winters. The trial report shall be available to the defence ministry by April and based on technical evaluation and lab testing by DGQA, the suppliers will be finalised. “Unlike earlier, we are not going for generic specifications, but going by user approved samples. For example, in the sleeping bag, we used to say 90 per cent down feather filling. Now we have changed it to ‘or any other suitable material’. At the end of this process, we will be able to fix new technical specifications for each item which will help Indian vendors indigenise these products,” an army official involved with the tender process explained.
SOURCE: The Indian Express
India has every chance of becoming an export powerhouse, Prime Minister Narendra Modi's top economic adviser told Reuters, despite an ill wind blowing from China that has hurt the ability of Asia's third-largest economy to compete. Arvind Panagariya, the Columbia University economics professor tapped to run the government's policy think tank last year, said in an interview he had seen China's slowdown coming as wage costs there grew. "It was only a matter of time," said Panagariya, 63, describing "miracle" growth rates sustained by China for decades as without precedent. The natural slowdown in the Chinese economy offered an opportunity, he said, because rising wages and an ageing workforce will encourage manufacturers to move to places where labour costs are cheaper - like India. From parity in 1980, China's economy has outgrown India's fivefold to $10 trillion. India's best choice would be to emulate China, said Panagariya, disagreeing with naysayers who argue that advances in labour-saving technology make that impossible. "Many pessimists think that manufacturing is now passe, that the robots are coming, 3D printing is coming," said Panagariya. "None of those factors is going to be a barrier to India becoming a manufacturing hub right now." In the short run, though, China's slowdown and weakness in its yuan currency are creating headwinds. India would be "very concerned" if China were to allow a major devaluation in the yuan currency, said Panagariya, who is also India's negotiator for the Group of 20 summit being hosted by China this year. "In the end, that not only makes Indian goods less competitive in the Chinese market, but also India's ability to compete with the Chinese in third markets is impacted," he said.
Figures this week showed that India's merchandise exports fell in December for the 13th month - and were down by nearly 15 percent from a year earlier. That meant India was losing its share of the global trade pie, said Panagariya, attributing some of those losses to the appreciation of the rupee against currencies other than the U.S. dollar. He highlighted Modi's decision to build out India's coastal ports to improve access to the world market for goods as one key initiative to expand India's 1.7 percent share of world exports. Modi has also promoted a "Make in India" drive that, after a slow start, has attracted U.S. auto makers and Chinese consumer electronics firms. India is the world's fastest growing large economy - outpacing even China - with the government forecasting real GDP growth of 7.0-7.5 percent in the fiscal year to March 31. But a collapse in prices for oil and other commodities has meant that nominal economic growth is only half the level factored into Finance Minister Arun Jaitley's plans. That has cut into revenues. Ahead of Jaitley's budget next month, Panagariya urged the Reserve Bank of India to cut interest rates and called for a less ambitious inflation target to underpin growth.
At the same time, he advised against "tinkering" with borrowing targets, saying the government's credibility was riding on its commitment to bring down the budget deficit to 3 percent of GDP over the medium term. While no comment was available from the RBI on Panagariya's call for easier monetary policy, private sector economists said Modi should instead focus on policy execution on the ground. That includes reviving stalled infrastructure projects and helping farmers recover after two years of drought. "We believe progress on implementation should get expedited," said Shubhada Rao, chief economist at Yes Bank in Mumbai. "Interest rates alone are not holding the growth recovery to ransom.
SOURCE: The Economic Times
With India and Israel expanding cooperation to new areas like homeland security innovation and science and technology, External Affairs Minister Sushma Swaraj has asked Israeli businesses to look beyond trade for building "long-term stakes" in the Indian economy. Swaraj, in her address at an Indian community reception here last night, expressed optimism for the future in the growth of bilateral ties. "To quote your (Israeli) Prime Minister (Benjamin Netanyahu) 'sky is the limit' for ties between India and Israel," she said, underlining that India and Israel are expanding cooperation to new areas such as homeland security, innovation, education and science and technology. "We should work towards a new vision of our important partnership, which should reflect our close friendship and harness fully the potential of our two knowledge economies," Swaraj said. Swaraj, who was here on her first visit to the West Asia region, also held talks with the top Israeli leadership and discussed a wide-range of bilateral and regional issues. "The economic relationship is the key to developing our bilateral ties. We should move from a trade-based relationship to one that is based on investment, manufacturing and services," Swaraj said. "As you know 'Make in India' is a priority of our Government. Our flagship schemes of 'Clean Ganga', 'Smart Cities' or 'Digital India' are all areas of Israeli expertise. We encourage you to look beyond trade to build long term stakes in the Indian economy through investment and joint development of products and services," she said. The Minister said she had "very good" meetings with President Reuven Rivlin and Prime Minister Benjamin Netanyahu and other leaders. "All of them expressed to me the importance they attach to Israel's relations with India, as a friend and partner. I wish to assure you that these feelings are reciprocated by the Government and people of India. We attach high priority to India's relations with Israel," she said.
Swaraj noted that the bilateral interactions at the political level are also increasing. In this context, she highlighted President Pranab Mukherjee's visit here last year. "This first ever visit by the President of India gave a substantial boost to our bilateral relationship. Next year will mark the 25th anniversary of the full establishment of diplomatic relations between our two countries," she said. "I am very happy to be here in Israel. I served as the Chairman of the India-Israel Parliamentary Friendship Group for three years during which I also had the pleasure of visiting Israel. I am a personal advocate of strong ties between India and Israel; so I am very happy to see that our relations are progressing so well in all fields of our engagement," she said. Swaraj highlighted that India has always offered the Jewish people a safe and secure home for many centuries. Advocating closer exchanges between the peoples of the two countries, Swaraj said, "We need many more exchanges between our civil societies, parliamentarians, opinion makers and women. Our students should collaborate in scientific research. Our entrepreneurs should build start-ups together." Swaraj also lauded the Indian Jewish community and the friends of India gathered at the reception as she congratulated the Indian caregivers who "are performing very commendable service far away from their homes and families". "I also convey my good wishes to the Indian men serving in the UN Disengagement Observer Force. India has always been an important actor in the United Nations and we will continue our role," she said.
Swaraj said India and Israel had walked a "long distance" together in the short time since the full establishment of diplomatic ties in 1992. "We have developed close cooperation in critical areas such as agriculture and defence. Indian farmers and soldiers know Israel well because of its innovative technologies. We should also create conditions that stimulate the flow of knowledge in both directions," she said. Noting that India and Israel are among the "most vibrant democracies in the world", Swaraj said yet they do not know enough about how each other's societies work. Praising the Indian diaspora, Swaraj said, "India is very proud of its large diaspora. Wherever Indians go they have become model citizens in their adopted countries." "They are hardworking, sincere and community-minded. They are the most preferred expatriate community in the Gulf region. The Indian Jewish community in Israel is no different and it always pleases me to see how well they have done here," she said. "We would like to see more and more Indian Jews becoming active catalysts in building ties between India and Israel," she said. "We have always viewed Israel as an important regional country and share the belief that our partnership will be strengthened further in future," she concluded.
SOURCE: The Economic Times
With a steady rise in de-notification of Special Economic Zones (SEZs) and increased delay in implementation of projects, the Commerce Ministry has once again made a case for exemption or lowering of Minimum Alternate Tax (MAT) and Dividend Distribution Tax (DDT) on units and developers in the forthcoming Union Budget. It has also asked the Finance Ministry to permit SEZ units to sell in the domestic market by paying concessional import duties in line with what is paid by India’s Free Trade Agreement (FTA) partners, a government official told BusinessLine . “Last year, the Centre made SEZs eligible for export incentive schemes such as Merchandise Export from India Scheme, but that is not enough. The Finance Ministry has to do more if it wants the SEZ scheme not to collapse,” the official said. The official added that the government was flooded with applications requesting more time for implementation of projects and for de-notification of zones, while the number of new proposals had dwindled. The BoA de-notified 56 SEZ proposals in February last year and 22 more in May. Big players, such as Navi Mumbai SEZ co-promoted by Mukesh Ambani, have sought numerous extensions for implementation of their projects citing the imposition of MAT and DDT as one of the factors for delay. In its Budget proposal to the Finance Ministry, the Commerce Ministry has suggested that the MAT and DDT, imposed on SEZs in 2011, be either fully withdrawn or brought down significantly as it was the biggest disincentive for investors who had been promised a tax holiday for the initial years of operation.
Under pressure
According to the Export Promotion Council for SEZs, units are not able to recover MAT credit charged at 18.5 per cent within the stipulated period of 10 years. It has urged the Centre to reduce MAT to at least 7.5 per cent so that exporters from SEZs are able to set off those advance tax MAT paid within the stipulated period, and the government also gets some revenue. Another proposal being pushed by the Commerce Ministry relates to lowering of customs duties to be paid by SEZ units when they sell their goods in the domestic market by bringing it in line with the best rates offered to the country’s FTA partners. “If India allows a particular item to be imported from an FTA partner country, say Japan, at nil duty or at a concession, the same rate should be extended to units in SEZs,” the official said. The Commerce Ministry’s argument is that with fall in global demand and uncertainty gripping major economies, SEZ units should not be deprived from accessing the domestic market. At present, there are 204 operational SEZs in the country with a total investment of Rs. 3, 63,112.46 crore and providing employment for 15, 44,526, according to government figures. Exports from SEZs in 2013-14 at $82.35 billion were 8 per cent lower than the year before.
EXPORT ZONES
SOURCE: The Hindu Business Line
The fall in exports for the thirteenth successive month, with December 2015 figures down 14.75 per cent in dollar terms over the previous year, is too alarming to be brushed aside as the fallout of the global slump. While the Centre is right in that the US, the EU and China have been badly affected as well, the fact is that India’s export dip of 18 per cent since April 2015 is worse than the single digit declines registered by China and some East Asian economies. Commodity exporters such as Indonesia and Brazil may have fared poorly, but more diversified exporters such as Malaysia have managed better. Given that world trade grew by about 2.5 per cent in 2015, it implies that some countries have performed well even in these adverse times by pushing non-commodity exports. To be sure, the headwinds cannot be denied. The world economy is unlikely to grow beyond a rate of 2.5 per cent in 2016. China’s growth and exports are likely to remain in downturn mode with the yuan falling further. Commodity exporters may keep world markets and currencies on tenterhooks by liquidating their investments. The nature of the US recovery is still anyone’s guess. Yet, weak global demand and competitive devaluations do not entirely explain the crisis in India’s export sector. Internal factors and the changing architecture of world trade have also played a part. The Centre must take cognizance of these aspects.
The composition of our exports has shifted towards commodities over the last decade, and away from manufacturing. Researchers point out that the share of manufactured products in exports has fallen from about 80 per cent in 1999-2000 to 67 per cent today, while commodities (ores and minerals, oil and agricultural products) account for a third of India’s exports. This has not only rendered India vulnerable to the crash in commodities (refined petroleum accounts for 18 per cent of India’s exports) but has also led to the neglect of labour-intensive sectors such as textiles and leather. Capital subsidies for sectors such as textiles could be replaced by those that are labour related. Good performers in such times, such as pharma generics and auto components, should be encouraged. The other issue that requires urgent attention is export-import procedures, as small exporters are put to great hardship in the offices of the Directorate General of Foreign Trade.
The growth of mega trade blocs as well as some adverse free trade agreements may hurt India’s export prospects. The world is in financial and geo-political flux, with China and Russia trying to carve out their zones of influence through the newly created Asia Infrastructure Investment Bank, besides the Shanghai Cooperation Organisation, the BRICS Bank and the Regional Comprehensive Economic Partnership. These developments call for a unified view of forex management (diversifying from the dollar and considering currency swaps), export policy and diplomatic engagement.
SOURCE: The Hindu Business Line
The International Monetary Fund (IMF) has retained India's growth projections at 7.5 per cent for 2016-17 and 2017-18 each, even as it cut its forecast for the global economy by two percentage points for 2016 and 2017 calendar years on depressed oil and commodity prices. The World Economic Outlook Update by the IMF came on a day when data showed that the Chinese economy slowed in December, capping the weakest quarter of growth since the 2009 global recession. Though China's economic growth projections have been retained at 6.3 per cent and 6 per cent for 2016 and 2017 respectively, the economic expansion would come down from 6.9 per cent in 2015. On the other hand, Indian economy is expected to grow at 7.3 per cent in 2015-16. "Growth in China is expected to slow to 6.3 per cent in 2016 and six per cent in 2017, primarily reflecting weaker investment growth as the economy continues to rebalance. India and the rest of emerging Asia are generally projected to continue growing at a robust pace, although with some countries facing strong headwinds from China's economic rebalancing and global manufacturing weakness," the IMF said in the Update.
IMF retains India forecast, cuts world growth The Fund scaled down world economic growth at 3.4 per cent in 2016 and 3.6 per cent in 2017. The comparative figures were 3.6 per cent and 3.8 per cent in the October outlook. The IMF cut economic growth projection of emerging markets by 0.2 percentage points, higher than one percentage point in case of advanced economies, both for 2016 and 2017. However, global growth is likely to be marginally better in 2016 and 2017 compared with 3 per cent in 2015. "The pickup in global activity is projected to be more gradual than in the October 2015 World Economic Outlook (WEO), especially in emerging markets and developing economies," the IMF said. The projected pickup in global growth in the next two years - despite the ongoing slowdown in China - primarily reflects gradual improvement in countries that are currently in economic distress, notably Brazil, Russia, and some countries in west Asia. However, even the partial recovery could be frustrated by new economic or political shocks, the Fund said.
Advanced economies are expected to have grown by 1.9 per cent in 2015, slightly higher than 1.8 per cent a year ago. In 2016 and 2017, they are likely to grow by 2.1 per cent each. Emerging market economies, on the other hand, expanded by about four per cent in 2015, much slower than 4.6 per cent a year ago. In 2016 and 2017, they would grow by 4.3 per cent and 4.7 per cent respectively. The growth rate witnessed in 2014 is expected to somewhat return only in 2017. In advanced economies, the Fund said, a modest and uneven recovery is expected to continue, with a gradual further narrowing of output gaps. On the other hand, "The picture for emerging market and developing economies is diverse but in many cases challenging. The slowdown and rebalancing of the Chinese economy, lower commodity prices, and strains in some large emerging market economies will continue to weigh on growth prospects in 2016-17," it said. Even as IMF retained growth projections for India's economy for the current financial year, it should be noted that it represents stagnation in growth compared to 2014-15. Besides, it also implied that the growth would be only bit higher in the second half of the current financial year, since the first half yielded expansion at 7.2 per cent. India's finance ministry now expects the economy to grow 7-7.5 per cent in the current financial year against 8.1-8.5 per cent projected by it earlier.
Data provided by IMF also showed that India will have to diversify its exports to developing countries since they would see increase in their imports in 2016 and 2017 compared to 2015. World trade in volume terms was projected to grow by 3.4 per cent in 2016, 0.7 percentage points lower than earlier estimates, and 4.1 per cent in 2017, slower by 0.5 per centage points over the October estimate. The growth was 2.6 per cent in 2015. Imports into the advanced world, were forecast to increase 3.7 per cent in 2016, which would be less by 0.5 percentage points over previous estimates, and 4.1 per cent the next year, lower by 0.4 percentage points than the October estimates. The imports were projected to have grown 4 per cent in 2015. Imports into the emerging markets and developing economies, on the other hand, were projected to grow 3.4 per cent and 4.3 per cent in 2016 and 2017, respectively against earlier estimates of 3.5 per cent and 5.4 per cent respectively. The imports were expected to have risen just 0.4 per cent in 2015. Merchandise exports from India shrank for the 13th straight month in December, longest-ever such decline in the recent history.
SOURCE: The Business Standard
India will host 22 African countries at the India-Africa Hydrocarbon Conference later this week. To be held in New Delhi on Thursday and Friday, this will be the fourth edition of the conference. Three conferences were earlier held in 2007, 2009 and 2011. India had invited 25 oil and gas-producing African countries to the conference. Of these, 22 have confirmed their participation. Nine countries will be represented at the ministerial level. These include Algeria, Morocco, Tunisia, Mauritius, Sudan and South Sudan. Mozambique and South Africa will skip the conference, as their ministers are busy with the World Economic Forum at Davos, official sources said. The government hopes to consolidate the discussions that External Affairs Minister Sushma Swaraj and Petroleum Minister Dharmendra Pradhan had with delegates at India-Africa Summit three months ago. Sources said India’s domestic production of crude oil has plateaued at 37 million tonnes (mt) and is likely to remain at this level with little likelihood of future discoveries and technological breakthroughs. Meanwhile, the number of African nations that have struck oil or gas has increased from seven in 1990 to 25 now. India imports 76 per cent of its crude oil needs, which by 2030 is estimated to reach 90 per cent. The country also imports 37 per cent of its gas requirement. Africa is likely to be a significant source of meeting India’s hydrocarbon needs in the years to come. This will also help India diversify its source of crude from volatile West Asia. In 2014, India had imported 32 mt of crude, 15 per cent of its consumption that year, from Africa. This was primarily from Nigeria and Angola. Currently, India’s oil imports from Africa stand at 7.5 per cent. Of India’s top four sources of gas – Qatar, Nigeria, Australia and Equatorial Guinea – two are from Africa. In 2015, India’s gas imports from Africa doubled compared to 2013; India accounted for eight per cent of Africa’s gas exports in 2015, compared to four per cent in 2013, official sources said.
India is also a major exporter of refined petroleum products and Africa is the second largest destination for these products. Seventeen per cent of India’s refined products are headed for Africa. New Delhi expects this figure to rise to 20 per cent. Apart from energy security, India hopes to nurture the growth of African hydrocarbon sector by providing its expertise in oil exploration, refining, consultancy, training and infrastructure development. Indian public sector company ONGC Videsh has significant investments in the African oil & gas sector, particularly in Sudan, South Sudan and Libya. However, India's investments in Africa pales compared to China's $25 billion in that continent's oil & gas sector. The total India-Africa trade has increased nine-fold from $8.2 billion in 2004 to $75 billion in 2014. New Delhi expects this to touch $100 billion in the next couple of years.
SOURCE: The Business Standard
After Russia placed sanctions on Turkey, some Turkish textile companies replaced the Made in Turkey label with Made in Azerbaijan in order to avoid problems. “Armenpress” reports the information, referring to Fashion United. For instance, textile companies of the Aegean Region which is the industrial center of Turkey started to use Made in Azerbaijan or Made in Iran labels. The former head of the Turkish Fashion and ReadytoWear Clothing Federation said that the products of Turkish manufacturers reach the Russian market by means of Azerbaijan or Iran.
SOURCE: The Armen Press
Textile exporters are losing their share in the US market as compared to other competitors, The State Bank of Pakistan (SBP) said. In its first quarterly review released a day ago, the central bank said that in the US market the overall import demand for textiles and apparel increased during July–September 2015; however, Pakistan had not been able to firm up its exports. It said that following the trend in previous years, the demand for cotton textile, which constitutes the bulk of Pakistan’s exports, continued to decline in the US market. “The market for manmade fiber products is expanding at a fast pace, but Pakistan has failed to diversify its product range accordingly,” the SBP said, adding: “Worryingly, Pakistan has now begun to lose its share even in the cotton apparel market of the US.” The SBP said that the textile exports continued to face subdued global demand. The cloth manufacturing progressed slowly due to depressed demand from the European market, it said. “In the US, Pakistani manufactures are losing their share to other exporting countries such as India and Vietnam.”
In the yarn segment, the report said, availability of cheaper yarn from India posed serious challenges to local manufacturers. “However, the situation is expected to improve, as the government has imposed 10 percent duty on yarn imports from November 1, 2015,” the report added. The textile exports registered a decline of 5.6 percent during the first quarter of 2015/16 mainly due to shrinking global demand. The overall imports of textile and clothing of the European Union declined sharply during the period under review. In the case of clothing, all major countries faced decline in exports to the EU markets, except Pakistan and Bangladesh. “These two countries enjoy duty-free access to this market: Pakistan in terms of GSP+ and Bangladesh via Everything-But-Arms (EBA),” the SBP said. The overall exports of Pakistan registered a decline of 14 percent during the period under review as compared to the decline of 10.4 percent due to global factors. However, the central bank said Pakistan had been able to increase its share in the EU and US markets. Share of Pakistan in the EU and US import markets has increased to 0.37 percent and 0.17 percent, respectively, during July-September 2015 as compared to 0.34 percent and 0.16 percent in the same period last year, it added.
SOURCE: The News
Pakistan Expo Malaysia “PEXPO KL 2016” will be held in the heart of Kuala Lumpur from February 12 to 15 at Mid Valley Exhibition Centre (MVEC). The event, organised by EVECON, under the patronage of PAK-ASEAN Business Forum, and supported by key associations from textile, furniture, gems and jewellery, surgical sector and the Women Chamber of Commerce and Industry (WCCI South – Karachi) and WCCI Multan are expected to feature over 50 top organisations representing some of the Pakistan’s leading designers, companies and brands from a diverse range of industries.
During his recent visit, EVECON Chairman Mir Nasir Abbas met with MATRADE South Asia Director Abubakar Kolkuty and the Associated Chinese Chambers of Commerce and Industry (ACCIM) vice chairman who appreciated the efforts being made to strengthen the trade between Pakistan and Malaysia. They welcomed the exhibitors to Malaysia and assured their full support to promote the event in Malaysia through their platforms and provide necessary assistance to make PEXO KL 2016 successful. The MATRADE Deputy CEO said that the Pakistani products specially fashion fabrics and garments, gems and jewellery would attract Malay, Chinese and Indian consumers in Malaysia, and appreciated that MVEC is the ideal venue for such events being visited by tens and thousands of visitor’s on daily basis. She further said that Pakistani fashion, home textile, food, leather, surgical & dental instruments, sports goods, engineering products, handicrafts and many other products would find an excellent market in Malaysia. MVEC is proved to be a popular venue as it is strategically located within one of Malaysia’s largest and most popular shopping mall, Mid Valley Megamall and is packed with thousands of visitors daily. In addition, its central location and good accessibility makes Mid Valley Megamall a destination of choice for locals and tourists. Mid Valley project is one of the largest urban development projects in the world. It hosts over 40 leading consumer and business-to-business expos around the year attracting millions of followers.
High Commissioner of Pakistan in Malaysia Hassan Raza has extended full support to EVECON for arranging the event in a befitting manner. WCCI-South Karachi President Farida Qureshi has expressed her pleasure on receiving the wholehearted support of the high commission, MATRADE and ACCIM, which in her opinion would prove to be a source of inspiration for the exhibitors and would undoubtedly help in creating and exploring new market for the Pakistani products in Malaysia. She added that the event is organised in view of the fact that India constitutes perhaps the most natural market for many of Pakistan’s core products and this expo would prove to be the largest Expo with B2B and business-to-consumer (B2C) components. Leading designers from Pakistan are all set to showcase their collection of fabrics, stitched and unstitched, formal and semi-formal outfits and jewellery at the 4-day exhibition during the celebrations of Chinese new year, as millions of tourists from world over would flock to MVEC.
Companies like PEL, Ghani Glass and leading surgical and dental instruments manufacturers are also showcasing their product range and will be having B2B meetings with the leading distributors, retailers and import firms based in Malaysia. PEXPO KL 2016 is being marketed through a smartly designed outdoor campaign and strategically planned social media campaign. Some of the new features available at the exhibition are the “Register online Win on ground” lucky draw where the visitors can register online prior to the event and short-listed winners stand a chance to win mystery gifts including return ticket for valentine day couple to Bangkok. A total of 150,000 visitors are expected to throng the four-day exhibition. This move of EVECON aims to provide a platform to the Pakistan-based companies, for showcasing their range of products and services to the Malaysian public and business community.
SOURCE: The Daily Times
As Vietnam prepares to sign the 12-nation Trans-Pacific Partnership (TPP) agreement, economists in the Southeast Asian country have said that signing free trade agreements with big partners including the US, Japan, the European Union would help Vietnam to expand its trade relations across the globe, boost exports and enhance its participation regional value chains and service development. Addressing a seminar on Vietnam's Socio economy in 2015 and Opportunity – Challenges in Hanoi recently, Nguyen Quynh Nga, Deputy Head of the Multilateral Trade Policy Department under the Ministry of Industry and Trade said, the Trans-Pacific Partnership (TPP) was expected to be signed on February 4, 2016, in New Zealand, and Vietnamese agencies concerned were preparing a document for the occasion, the Voice of Vietnam has reported.
Although Vietnam has renewed its economic mechanism, boosted renovation and improved the business climate with a view to attracting more foreign investors, Nga said challenges such as huge import bills and competition from foreign service and goods, and poor high-tech quality remained. All sectors such as textiles, fisheries, infrastructure, and logistics, apart from real estate, steel and timber products, and drugs would benefit from the TPP, noted. Can Van Luc, Director of BIDV Training School at the Bank for Investment and Development of Vietnam (BIDV) said adding that Vietnam would enjoy many benefits from the TPP once it comes into effect after two years. He said Vietnam and neighbouring Cambodia stood to gain as the largest beneficiaries after the establishment of ASEAN Economic Community (AEC) in 2015. Vietnam's GDP could grow a further 3.5 per cent thanks to the AEC while the World Bank has forecast 10 per cent economic growth after it joins the TPP.
Projecting a brighter economic outlook for 2016, Trung Thanh, Associate Professor of the National Economic University said Vietnam's economy will continue to recover as the world economy bounces back stronger than before in which foreign direct investment (FDI) plays an important role. With the world economic growth showing signs of improvement, especially in the US, Vietnam will be able participate better in the global value chain and receive numerous opportunities from the free trade agreements to increase exports and attract more investment capital, Thanh said. He, however, pointed out that, Vietnam lacked a long-term motivation for growth, and it needed to renew its growth model and restructure the economy by focussing on important industries.
SOURCE: Fibre2fashion
