|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
933.16 |
USD/Ton |
0% |
1/28/2016 |
|
VSF |
1879.99 |
USD/Ton |
0% |
1/28/2016 |
|
ASF |
1895.95 |
USD/Ton |
0% |
1/28/2016 |
|
Polyester POY |
952.91 |
USD/Ton |
0% |
1/28/2016 |
|
Nylon FDY |
2188.51 |
USD/Ton |
0% |
1/28/2016 |
|
40D Spandex |
4787.37 |
USD/Ton |
0% |
1/28/2016 |
|
Nylon DTY |
2036.53 |
USD/Ton |
0% |
1/28/2016 |
|
Viscose Long Filament |
2078.33 |
USD/Ton |
0% |
1/28/2016 |
|
Polyester DTY |
1025.87 |
USD/Ton |
0% |
1/28/2016 |
|
Nylon POY |
2462.08 |
USD/Ton |
0% |
1/28/2016 |
|
Acrylic Top 3D |
5662.77 |
USD/Ton |
0% |
1/28/2016 |
|
Polyester FDY |
1124.65 |
USD/Ton |
0% |
1/28/2016 |
|
30S Spun Rayon Yarn |
2644.45 |
USD/Ton |
0% |
1/28/2016 |
|
32S Polyester Yarn |
1519.80 |
USD/Ton |
0% |
1/28/2016 |
|
45S T/C Yarn |
2431.68 |
USD/Ton |
0% |
1/28/2016 |
|
45S Polyester Yarn |
2796.43 |
USD/Ton |
0% |
1/28/2016 |
|
T/C Yarn 65/35 32S |
2416.48 |
USD/Ton |
0% |
1/28/2016 |
|
40S Rayon Yarn |
1686.98 |
USD/Ton |
0% |
1/28/2016 |
|
T/R Yarn 65/35 32S |
2097.32 |
USD/Ton |
0% |
1/28/2016 |
|
10S Denim Fabric |
1.06 |
USD/Meter |
0% |
1/28/2016 |
|
32S Twill Fabric |
0.89 |
USD/Meter |
0% |
1/28/2016 |
|
40S Combed Poplin |
0.97 |
USD/Meter |
0% |
1/28/2016 |
|
30S Rayon Fabric |
0.71 |
USD/Meter |
0% |
1/28/2016 |
|
45S T/C Fabric |
0.73 |
USD/Meter |
0% |
1/28/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15198 USD dtd. 28/01/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The 2015-16 fiscal has been one of the most challenging year for the synthetic and rayon textile exporters because of unstable market conditions prevailing globally, stated Mr. Anil Rajvanshi, Chairman, Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) here. While delivering his welcome address at the SRTEPC export award function, Mr. Rajvanshi informed that oil prices have nose-dived. The fall in crude oil prices has been unprecedented in the last 10-15 years and one does not know where it will stabilise. Some of our consultants estimate that the crude price will stabilise between US $ 20 to US $ 30 per barrel while some estimate it to rise to US $ 40 per barrel.
One fact nevertheless is clear that the commodities prices have come down on account of which India’s exports have also come down. However, in terms of volume there is no major reduction in exports. The exports of synthetic and rayon textiles have also gone down by 6 per cent during the current year, Mr. Rajvanshi informed. On the foreign trade policy, SRTEPC Chairman said that benefits to man-made fibre industry were withdrawn. However, with the intervention of Textile Ministry many synthetic and rayon textile items have been included in the Merchandise Exports from India Scheme (MEIS), he stressed. While lauding the efforts of the Textile Ministry, Mr. Rajvanshi informed that there are still certain items which have been not included in the list and the council with the help of the Textile Ministry was pursuing with the Commerce Ministry to include such items. While stating that the efficiency of labour was not an issue in India, Mr. Rajvanshi noted that Indian industry is hit by structural inefficiency. To rectify this, we need some policy changes and change in mind-set.
Referring to the excise duty on man-made fibre industry, SRTEPC Chairman informed that the council with the support of the Textile Ministry was trying to prevail upon the Finance Ministry to reduce the duty from 12 to 6 per cent in the forthcoming budget. If on studies all our competing nations, one will find that these countries have a uniform duty structure for manmade and natural fibres. It is unfortunate that only in India an inverted duty structure prevails and man-made fibre is considered to be a rich-man’s fibre. In India, it is believed that cotton is textile industry and textile industry is only cotton. This thinking has prevailed for a very long time and only in 1990s that man-made fibre industry was given recognition. The authorities should realise that man-made fibre industry has 70% share in the global market while the balance 30% is with cotton. And for the progress of Indian textile industry, man-made fibre industry needs to be encouraged.
Even to meet the Government’s target of making Indian textile industry a US $ 300 billion industry from the current US $ 110 billion industry, only man-made fibre industry can help meet the target and not cotton industry, Mr. Rajvanshi pointed out. Earlier, Mr. V. K. Ladia, Convener, Export Award Function, informed that the function has been organised by the council over the last 27 years in order to commemorate the achievements of the award winners and also motivate the exporting community at large to rise to the occasion and scale new export heights and become award winners. SRTEPC members, Mr. Ladia said, were exporting goods to the tune of US $ 6 billion every year despite all odds prevailing in the international markets.
SOURCE: The Tecoya Trend
District Collector A. Gnanasekaran has convened a meeting of entrepreneurs who are interested to collectively set up micro textile parks in Tiruvannamalai district. Chief Minister Jayalalithaa has announced in the Assembly that State would grant Rs. 2.5 crore to provide infrastructure to those who collectively come forward to set up micro textile units in textile centres.
Common amenities
This is to facilitate provision of electricity, water, construction of teleconference facility, marketing centres and common amenities in the micro textile parks set up out of the towns. Mr. Gnanasekaran told the participants that suitable proposals to set up micro textile parks should have details such as type of the project, sustainability and feasibility of the project. The proposals should be sent to Director, Handloom and Textile, 2nd floor, Kuralagam, Chennai, he added. Assistant Director, Handloom and Textile Department S. Balasubramanian participated.
SOURCE: The Hindu
British author Jenny Balfour-Paul, a world authority on indigo, says the Indian fashion and textile industry has to be really careful as the sector is a major cause for environmental pollution courtesy the use of synthetic dyes. ”The fashion and textile industry has to watch it really. Because they are huge polluters,” Balfour-Paul told IANS here. Describing indigo as the “perfect green crop”, Paul suggests incorporation of natural dyes in textiles (including natural indigo and not the synthetic variant). In addition, the researcher takes a different approach on fashion, advising on opting for timeless pieces of organic textiles and treasuring them instead of throwing them away. ”Natural indigo is a perfect green crop. In some places in Bangladesh, people grow indigo not so much for the dye but for the fertiliser. “You can make denim in a complete organic way now. Fashion is changing all the time but we should treasure things, we shouldn’t throw things away so much,” said Balfour-Paul, a honorary research fellow in the Institute of Arab and Islamic Studies, Exeter University in Britain. Her latest book “Deeper than Indigo: tracing Thomas Machell, forgotten explorer” narrates the detailed account of the Victorian explorer and indigo planter in the 19th century who spent most of his adult life in India.
Machell was a witness to many important historical events, including the First Opium War and the Indian Mutiny. Balfour-Paul’s book is based on Machell’s journals chronicling his voyages and experiences in India, Bangladesh, China, North Africa and the Arab world. The author follows him to indigo plantations of rural Bengal and Bangladesh, to coffee estates in Kerala’s Malabar Hills, to unexplored regions of central India and to the city of Calcutta (now Kolkata). Machell also travelled up the Indus River to Kashmir and the North-West Frontier and undertook an intrepid sea voyage with Muslim merchants. Talking to IANS at the just-concluded Tata Steel Kolkata Literary Meet here, Balfour-Paul stresses Machell’s relevance today lies in his approach towards different religions and their inter-connectedness. The adventurer was born to a clergyman near York in 1824. He died in India in 1864, aged 39. “Since I started the book in 2000, he has become more relevant. He travels with Arabs for nine months and dresses like them. He says, ‘Let’s be tolerant of each others religion and study them else there will be trouble in the future.’ He sees education is the key and starts a school in his plantation,” the author added.
SOURCE: The Prepsure
The Karnataka state government would be holding “Invest Karnataka -2016” from February 3 for three days for attracting investments from domestic and global firms in various sectors, including textiles. With the mission to establish the textile and garment industry of Karnataka, as a producer of internationally competitive value added products, Karnataka will be showcasing 145 projects to investors during the event. The focus areas for interventions are technological upgradation of textile value chain activities, technical textiles, geographical dispersion of textile and garment units, infrastructure development, branding, design development and product diversification. Bagalkot, Belgaum, Bellary, Bidar, Bijapur, Chamarajanagar, Chikkaballapur, Chitradurga, Dharwad, Davanagere, Gadag, Gulbarga, Haveri, Kolar, Koppal, Kodagu, Raichur, Shimoga, Uttara Kannada, Yadgir are classified in zone-1 districts getting the maximum benefits with potential textile units. Marginally lesser benefits will be given for zone-2 districts which includes Bangalore Rural, Anekal, Chickmagalur, Dakhsina Kannada, Hassan, Mandya, Mysore, Ramanagara, Tumkur and Udupi. Bangalore Urban comes in zone-3 with no incentives. The projects are classified as mega, ultra-mega and super mega projects with the investments of Rs 100 crore to Rs 500 crore, Rs 500 crore to Rs 1,000 crore and above Rs 1,000 crore respectively. The state government will provide a capital subsidy of 10 per cent of the project cost or Rs 10 crores. It will also provide exemption up to 10 per cent on the total amount of taxes levied by state and local taxes and levies, 100 per cent exemption of stamp duty and entry tax on plant and machinery. Also power subsidy of Re 1.00 per unit will be provided. At present, around 70 medium and large textile companies as well as over 50,000 small units operate in Karnataka.
SOURCE: Fibre2fashion
With international oil prices slumping to 12-year low, the government may look at reimposing 5 per cent customs duty on crude oil imports to shore up revenue by close to Rs 18,000 crore. The government had cut customs duty on crude oil imports to zero from 5 per cent in June 2011 when rates zoomed to over $100 per barrel. But with oil prices hovering at $30 a barrel now, the duty may be back, official sources said. As the government looks to shore up its revenue without hurting economic growth, reimposing import duty on crude oil presents a viable alternative the Budget 2016-17 to be presented on February 29, the sources said. Alongside, customs duty on petroleum products, petrol and diesel may also be increased in equal proportion to duty levied on domestic refiners. Petrol and diesel currently attract 2.5 per cent import duty. This duty differential is maintained so as to protect domestic industry by making import of product costlier as compared to domestic manufacturing.
If import duty on crude oil is raised in the budget for 2016-17, it would go up on allied products too from 2.5 per cent to 7.5 per cent, sources said. At $30 per barrel crude oil price, 5 per cent customs duty will fetch the government close to Rs 18,000 crore at current levels of imports. India imported 189.4 million tons of crude oil in 2014-15 and after excluding 29 million tons of import for SEZ refinery, the dutiable imports are about 161 million tons. Raw material import by SEZ units are exempt from import duty. Sources said this mop up may help offset the loss of revenue the government may face because of likely cut in cess on domestic crude oil. The Budget may announce an ad valorem rate of cess instead of Rs 4,500 per tonne fixed levy currently. The ad valorem rate of cess will results in higher payouts when prices are high and lower when rates fall.
Currently, state-owned Oil and Natural Gas Corp ( ONGC) and Oil India Ltd (OIL) pay a cess of Rs 4,500 per tonne on crude oil they produce from their allotted fields on a nomination basis. Cairn has to pay the same cess for oil from the Rajasthan block. With oil prices dropping to 12-year low of under $30 per barrel, the cess translates into one-third of the realisation going away in just one levy. The Budget may fix the levy at around 8-9 per cent of the crude oil price to provide relief to domestic producers, sources said.
SOURCE: The Economic Times
The benefits to the Indian economy from fall in crude oil prices will be “limited” this year and domestic reforms and developments will gain focus, a report said. “Low crude prices have been of great help to a net oil importer like India. Brent prices (INR terms) are down 70 per cent from mid-2014 levels,” global financial services major DBS noted in the report, titled ‘India: Fading boost from low oil price’. “While the economy benefited significantly from the first leg of the oil price down move, the incremental boost to the economy will be limited this year,” it said, adding that “as the tide runs out, underlying fundamentals and policy decisions will be back in focus”. The report said the government’s pro-growth policy and the RBI’s role in providing macro-stability has provided a favourable backdrop for the economy over the past two years. “The drop in global crude prices was an unexpected windfall and helped to magnify improvements in the macroeconomic variables,” it added.
Noting that the incremental impact of falling oil prices is fading, the report said that while the fall has halved the oil import bill, exports have also fared poorly, down 18 per cent year-on-year so far this fiscal year. “The higher weight of commodities in India’s export basket has hurt earnings in recent months. On the demand side, shipments to oil-producing economies have taken a hit,” DBS said. As per the report, a favourable external environment had magnified the post-election optimism in domestic financial markets since mid-2014. “However, as the boost from these factors wanes, local developments will gain in importance,” it said. While expecting a GDP growth of 7.4 per cent for the current fiscal and 7.8 per cent for the next year, DBS said the recovery has been uneven, with the “private sector still to participate in the growth upturn”. “Reforms have been under way, with executive decisions proving to be less of a challenge than legislative ones,” the report said. “It is imperative that progress continues, if India is to fare better than its peers in face of falling risk-appetite on the part of global investors,” it added.
SOURCE: The Financial Express
Business leaders of over 80 Chinese companies and enterprises on Thursday participated in a road show organised in the southwestern Sichuan province, highlighting the opportunity for entrepreneurs to invest in India under the government’s ‘Make in India’ initiative. Speaking on the occasion, Consul General of India in Guangzhou, Sailas Thangal said that ‘Make in India’ campaign offers great opportunities for Chinese business and entrepreneurs to invest in India and take advantage of India’s large potential for growth. He invited all Chinese business leaders present at the road show at Chengdu to attend the ‘Make in India’ week to be held in Mumbai from February 13-18. The week-long event to be inaugurated by Prime Minister Narendra Modi would offer unprecedented access, insights and opportunities to connect and collaborate with India and global industry leaders, academicians, central and state administrations, Thangal said in a statement. The road show was organised by Consulate General of India in Guangzhou in partnership with China Council for the Promotion of International Trade (CCPITs) of Sichuan. It was attended by about 120 businessmen from Sichuan from 84 companies and enterprises based in Sichaun. The road show was also addressed by President Sichuan CCPIT Li Geng, who encouraged the Chinese businessmen to look at large market and opportunity for Chinese businessmen in India. During the event, representatives of Punjab and Kerala provided detailed presentations to the Chinese participants as to why they should look at the two states as important emerging attractive investment destinations.
GOING INTERNATIONAL
‘Make in India’ initiative was launched globally in September 2014 as part of the Government of India’s renewed focus on invigorating the country’s manufacturing sector.The initiative has opened up 24 key sectors including infrastructure development, food processing, healthcare, IT, media and entertainment, mining, oil and gas, ports, railways, telecommunications, tourism and hospitality for foreign investment.
SOURCE: The Business Standard
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 29.95 per barrel (bbl) on 28.01.2016. This was higher than the price of US$ 28.05 per bbl on previous publishing day of 27.01.2016.
In rupee terms, the price of Indian Basket increased to Rs 2038.91 per bbl on 28.01.2016 as compared to Rs 1907.04 per bbl on 27.01.2016. Rupee closed weaker at Rs 68.09 per US$ on 28.01.2016 as against Rs 67.98 per US$ on 27.01.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on January 28, 2016 (Previous trading day i.e. 27.01.2016) |
Pricing Fortnight for 16.01.2016 (Dec 30 to Jan 13, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
29.95 (28.05) |
30.63 |
|
(Rs/bbl |
2038.91 (1907.04) |
2040.26 |
|
|
Exchange Rate |
(Rs/$) |
68.09 (67.98 ) |
66.61 |
SOURCE: PIB
Vietnam has seen a significantly growing inflow of investment from the US in the textile and garment sector in recent years, in anticipation of the potential from the Trans Pacific Partnership (TPP). Huntsman Textile Effects – a supplier of dyes and chemicals under the US-based Huntsman Group, is one of the many US investors in Vietnam that hopes to tap into the potential of the textile and garment sector. After only six months of operation since its opening in mid 2015, the warehouse, located in the Long Binh Industrial Park in the southern province of Dong Nai is operating at its full capacity of 250,000 tonnes. President of Hunstman Textile Effects Paul G. Hulme said the warehouse aims to help the company cut down on delivery time, and added that it is expandable to meet the domestic market demands in the context of the TPP becoming effective. Meanwhile, in January 2016, Avery Dennison RBIS under the US Avery Dennison Group inaugurated its factory in the Long Hau Industrial Park in the Mekong Delta province of Long An with a total investment of 30 million USD.
According to the Group, the hi-tech factory aims to provide label solutions to renowned names in the domestic market, such as Uniqlo, North Face, Nike, or Adidas. Director General of Avery Dennision RBIS, Deon Stander said the investment project aims to contribute to the development of the textile and garment sector as well as the domestic market. The TPP will boost textile and garment production in Vietnam, thus facilitating the growth of the Long An-based factory by 2020, he commented. Previously in July 2015, Avery Dennision RBIS established a distribution centre in Binh Tan District, Ho Chi Minh City, while building the factory in Long An at the same time. President of the Vietnam Cotton and Spinning Association Nguyen Son highlighted the increasing demand for accessories for the recent growing domestic textile-garment sector. The annual import value of the textile-garment accessories such as dyes and chemicals and labels hits billions of USD, he said, adding that the investment project will boost production and the development of the sector. There remains huge room for investors in the accessory industry to garment-textile, and leather and footwear in Vietnam, Son affirmed. According to the Vietnam Textile Association (VITAS), as of the end of 2015, the sector had received a record 2 billion USD in Foreign Direct Investment. The American Chamber of Commerce (AmCham) estimates that Vietnam will earn some 51.4 billion USD from exporting to the US by 2020. Of which the garment-textile sector is expected to account for 15.2 billion USD. The figure is estimated at 20 billion USD by 2025.
SOURCE: The Vietnam Net
Smart Myanmar is an EU-funded Switch Asia project focused on making social and environmental improvements in Myanmar's garment industry. An EU project aimed at boosting Myanmar's garment export sector has started its second phase with EU funding of €2.8million to the end of 2019. In its first phase it worked with local garment factories on social and environmental compliance issues, providing technical support and capacity building for local trade bodies. It also helped the Myanmar Garment Manufacturers Association (MGMA) increase staffing and drafted a first-ever Code of Conduct for garment exporting factory members. The next stage of Smart Myanmar will see the expansion of previous activities as well as new work promoting sustainable production and "transparency in procurement practices in Myanmar" - a county where more than a dozen major apparel brands, including GAP, H&M, Primark and Adidas are now sourcing. The move towards greater transparency in Myanmar – should it transpire would be a welcome one. Simone Lehmann, project director, Smart Myanmar, said that the garment sector has quickly become Myanmar's main export sector after oil and gas. The value of exports has more than doubled in less than two years and is projected to continue to grow almost exponentially for the next several years. The growth of the garment sector will contribute to the growth of the industrial sector and create many new jobs. Continuing to work closely with Myanmar factories and the Myanmar Garment Manufacturers Association, aim of the Smart project is to actively promote and support the sustainable production of garments 'Made in Myanmar' striving to increase the international competitiveness of Small and Medium Enterprises (SMEs) in this sector. Smart supports local companies meeting the consumer requirements in Europe for products that are good for the environment and for the people. It also aims at scaling-up and institutionalizing successful practices in Myanmar which were developed and implemented during Smart's first phase from 2013 – 2015.
SOURCE: Yarns&Fibers
Ambassador of the European Union (EU) to Nigeria and ECOWAS, Mitchel Arrion, on Wednesday in Abuja, questioned Nigeria’s decision not to sign the Economic Partnership Agreements (EPA) long after the initiative was formally launched in February 2014, after over 10 years of negotiations. Imports from Europe to West Africa are worth approximately €31 billion annually, while West Africa’s exports to the EU account for €37 billion, a situation Arrion said would benefit Nigeria immensely, especially if the nation’s transparency image was considered improved in the eyes of the international community. EPAs are trade and development agreements negotiated between the EU and African, Caribbean and Pacific (ACP) partners engaged in regional economic integration processes, aimed at promoting trade and investment, sustainable development and poverty reduction. However, the House of Representatives on Wednesday resolved to investigate the nature of the EPA between Nigeria and the EU. The lawmakers during a debate on the motion titled: “Call for caution in the implementation of the EPA between EU and Nigeria,” expressed regrets over the collapse of the textile industry due to unhealthy competition by foreign companies and smuggling of textile products through the borders.
Following the adoption of the motion, Speaker Yakubu Dogara referred the motion to the joint committee on commerce and industry for further legislative action. In his lead debate, Segun Adekola called for the intervention of the House to thoroughly examine the terms and conditions of the proposed EPA with EU. While expressing reservation on the recent push by the EU to expand its economic relations with Nigeria through the implementation of the EPA, the lawmaker noted that the policy had been resisted by various operators and stakeholders. Adekola explained that based on the terms of agreement, the EU would offer 15 members of the Economic Community of West African States (ECOWAS) full access to its market and in return, members of ECOWAS would open up 75 percent of their markets with over 300 million consumers to Europe over a 20-year period. “Nigeria has a weak manufacturing base occasion by infrastructural deficit and environmental factors, and thus is not on the same economic pedestal with any European countries to warrant such a reciprocal trade as envisaged in the trade agreement,” he said. “The agreement would lead to stunting of the growth of industries in West Africa, with serious economic and employment consequences for Nigeria which controls 60 percent share of the regional market.”
SOURCE: The Will Nigeria
Amid an economic slowdown, profits of China's major industrial firms in 2015 fell year on year for the first time in over a decade, fuelling concern for the world's second-largest economy. Cumulative profits of China's industrial enterprises fell 2.3 per cent in 2015, the National Bureau of Statistics said, after a 3.3 per cent gain the prior year that was the weakest in at least 15 years. Profits in December fell 4.7 per cent from a year earlier, slumping for a seventh month, after a 1.4 per cent drop in November. He Ping, an official with the NBS Department of Industry, attributed the annual drop to weak demand both at home and abroad, falling prices of industrial products and rising production costs. Revenues from the firms' primary business inched up 0.8 per cent last year, compared with a 7-per cent rise posted in 2014. The profits decline was most alarming in mining and raw material industries like oil and natural gas exploitation. Coal miners' profits tumbled 65 per cent from a year earlier while that of oil and natural gas exploration firms slumped 74.5 per cent on an annual basis.
Although the overall situation is grim, He said there were favorable signs from industrial restructuring. The high-tech industry, equipment manufacturing enterprises and consumer goods producers posted profit gains of 8.9 per cent, 4 per cent and 7 per cent, respectively. State-owned enterprises registered a profit drop of 21.9 percent for the full year, compared with a 3.7 percent rise in the earnings for privately owned firms. Faced with stubborn downward pressures, China's policy makers are striving to ensure short-term growth while steering the economy away from an export-driven and credit-fueled growth model to one based on stronger consumer spending, innovation and the service sector. China's GDP grew 6.9 per cent in 2015, the slowest in 25 years.
SOURCE: Fibre2fashion
India will join the US, Japan, Germany and France at the International Monetary Fund's top table along with three other emerging markets after the multilateral institution approved much-delayed quota reforms on Wednesday. India is now among the top largest 10 members of the IMF, along with Italy and the UK besides fellow newcomers, Brazil, China and Russia. The changes had been pending since 2010. Finance minister Arun Jaitley had made a strong pitch for their early implementation at the last IMF-World Bank meeting at Lima in October last year. The IMF's quota reforms of December 2010 recommended that developing countries benefit to the tune of a 6 per cent shift in quotas in their favour, in order for them to be better represented. India's vote share will go up to 2.69 per cent from the current 2.34 per cent. "These reforms will ensure that the Fund is able to bet-ter meet and represent the needs of its members in a rapidly changing global environment," IMF managing director Christine Lagarde said in a statement accompanying the move. "Today marks a crucial step forward and it is not the end of change as our efforts to strengthen the IMF's governance will continue." The IMF said the changes are aimed at better governance and reflect the increasing role of dynamic emerging markets and developing countries. "The entry into force of these reforms will reinforce the credibility, effectiveness, and legitimacy of the IMF," it said. "For the first time, four emerging market countries (Brazil, China, India, Russia) will be among the 10 largest members of the IMF." The amendment to the IMF's Articles of Agreement creating an all-elected executive board (board reform amendment) entered into force on Wednesday. The board reform amendment was part of a broader package of reforms that also included a doubling of IMF reservations under the 14th general review of quotas. It also marked a shift in quota shares toward dynamic emerging markets and developing countries.
SOURCE: The Economic Times
