India has started a probe into the alleged dumping of spandex yarn - used in manufacturing of hosiery, swimsuits, and diapers - from China and three other countries. The Directorate General of Anti-Dumping and Allied Duties (DGAD) has initiated the investigation in the imports after Indorama Industries sought imposition of anti-dumping duty on the alleged cheap shipments. In a notification, the DGAD said prima facie sufficient evidence of dumping of the product originating or exported from China, South Korea, Taiwan and Vietnam exists to justify initiation of anti-dumping investigation. "...the Authority (DGAD) hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry... to determine the existence, degree and effect of alleged dumping and to recommend the amount of anti-dumping duty, which if levied, would be adequate to remove the 'injury' to the domestic industry," it said. 'Elastomeric Filament Yarn' is commonly referred to as Spandex or Elastane. In common parlance, these yarns are also referred to as 'Lycra' in the market even though it is a specific brand name.
Spandex yarn is mainly used to make garments that require great comfort and fit. It finds application in manufacturing of hosiery, swimsuits, aerobic or exercise wear, ski pants, golf jackets, disposable diapers and waist bands, among others. Countries initiate an anti-dumping probe to determine whether their domestic industries have been hurt because of surge in cheap import of any product. As a counter measure, they impose duties under the multilateral regime of the WTO. The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters resorting to dumping of goods at below-cost rates.
SOURCE: The Economic Times
Stating that the Make in India Week would address the issue of agrarian crisis in Maharashtra, chief minister Devendra Fadnavis on Monday said a dedicated seminar on textile industry is aimed at cherishing the dream of 'from farm to fashion', which would help state's cotton growers. Fadnavis said the food processing industry is vital for sustainable agriculture and the Week would have a separate session on this issue. He added that only through food processing opportunities can the farmers receive remuneration. The CM also said that cotton growers in Vidarbha, Marathwada and parts of North Maharashtra would benefit from the textile policy and that the government would be creating textile parks. Fadnavis said only 25% of the cotton grown in Maharashtra is utilised for value addition. If it is possible through textile parks to ensure that 100% cotton is utilised for value addition, state's farmers would be the biggest beneficiaries of the Make in India Week, he added. Union minister Nirmala Sitharaman said the Centre is also taking steps towards providing farmers better facilities so that manufacturing can be linked with agriculture produce. She added that the biggest reason for the agrarian crisis is lack of storage facilities for farm produce and, through the Make in India Week, investors in this field would be attracted, which would be an advantage for farmers.
SOURCE: The DNA India
The Maharashtra Industrial Development Corporation (MIDC) has started the process to develop infrastructure at the proposed textile park at Sayane in Malegaon tehsil of the district. The MIDC has already started survey to develop the proposed textile park and the proposal to develop infrastructure such as road, water supply, streetlights is to be sent to the head office in Mumbai, shortly. The MIDC has proposed the textile park on 113 hectares, of which, 100 hectares have been acquired by the MIDC so far. The state agency is in the process of acquiring the remaining land.
Speaking to TOI, an official from MIDC said, "We have acquired 100 hectares of the total 113 hectares at Sayane in Malegaon tehsil for the proposed textile park. We have already started survey prior to developing infrastructure there. The expenditure is estimated at around Rs 30 crore. We are preparing a proposal for development of infrastructure, which is to be sent to Mumbai for approval." The MIDC has notified around 5,000 hectares for industries across the district and they are under various stages of acquisition. About 200 of 339 hectares have been acquired at Talegaon-Akrale in Dindori tehsil, while 109 hectares and 100 hectares have been acquired at Yeola. Moreover, negotiations with farmers for acquiring 128 hectares at Gonde and 109 hectares at Sinnar are to be started. Satpur and Ambad industrial estates, both within the city limits, are fully occupied and there is no land available for further expansion. Industrial growth has been hampered due to non-availability of land here. At this juncture, land acquisition at some locations would help to boost the industrial sector.
SOURCE: The Times of India
The Andhra Pradesh state government has sanctioned three handloom clusters costing Rs.2.19 crore in Anantapur district, this was unveiled by Collector Kona Sasidhar, while addressing the district level Handloom and Jute Committee meeting here on Saturday. Joint Collector II Syed Khaja Mohiuddin, Regional Director (Handlooms) V Kamaleswara Rao, Assistant Director D Pavan Kumar, DCAO Suryanarayana, LDM Jayashankar and the APCO District Manager were present for the meeting. The clusters to be established in Rayadurgam, Peddapappur and Somandepalli were intended for bettering the lot of weavers. The government has released Rs 62 lakh for the clusters in the first phase, he added. He directed the officials to spend the amount for the welfare of the members and ensure that the allotted amount should be spent for technology upgradation, marketing and for securing bobbins and reels. The Collector said that there were 380, 298 and 290 members in Somandepalli, Peddapappur and Rayadurgam clusters respectively. The funds allotted to them were Rs 73 lakh, Rs 73 lakh and Rs 72.80 lakh respectively.
SOURCE: Yarns&Fibers
An exhibition organized by the regional office of the textile commissioner (ROC), Amritsar, began in the city on Friday at an exhibition hall on Malhar Road where around 40 participants are displayed products like blankets, carpets, suits, etc. Mayor Harcharan Singh Gohalwaria said that the industrial city Ludhiana was chosen as a venue for the second year in a row, for which he congratulated the officers of the department. Bhushan Abbi, president of home furnishing and textile cluster, thanked the textile ministry for conducting the event in Ludhiana, and offering a platform to the micro, small, and medium enterprises (MSME) sector to showcase their products. Abbi also informed that the issues of the textile industry will be discussed with officials, and a delegation of the textile industry representatives will soon conduct a meeting to review the progress of their cluster. Meawhile, deputy director and office-in-charge of ROC Amritsar, Rajinder Kumar present at the event disclosed that buyer-seller meets would be organized during the event, and textile industrialists would be informed about new schemes and guidelines issued by the textile ministry. Many industrialists and office-bearers of several industry associations were also present.
SOURCE: Yarns&Fibers
Union Minister for Commerce Nirmala Sitharaman on Monday said that the Make in India initiative will fuel economic growth in 25 sectors. At a time when Foreign Direct Investments (FDI) are falling elsewhere, India is attracting FDI at the rate of 38 per cent, she said, addressing the media at the curtain raiser press conference for the Make in India Week, to be held in Mumbai from February 13. The Make in India programme will have 55 events and will see participation from 17 States, 60 countries and 207 exhibitors. The event is expected to see government delegation from 49 nations and business delegations from 68 countries and will be inaugurated by Prime Minister Narendra Modi. Sitharaman said that at a time when the world’s economy is going through a depression stage with falling demand and economy of large countries such as Russia and Brazil contracting, the Indian economy is growing and this has been vouched by global financial institutions such as World Bank, ADB, Nomura and IMF. “Make in India is not a scheme or a programme. It is an initiative through which mindsets have been changed, new processes have been brought in,” Sitharaman said. She said as the Indian economy is stable, other countries are showing interest in forming partnerships. The ease of doing business has helped showcase the potential in India. It has also fuelled competition among States, which is generating new interest among investors.
Comparing the Make in India Week to the Hannover Messe industrial fair, she said that German trade fair’s management gets about 12 months to put up a grand show. But the Maharashtra Government has managed to do it in three months, she said. Stefan Löfven, Prime Minister of Sweden; Uwe Beckmeyer, Germany’s Parliamentary State Secretary, Ministry of Economic and Energy; Kevin Rudd, former Prime Minister of Australia; John Chambers, Chairman, USIBC; Anand Mahindra, Chairman of Mahindra & Mahindra; Kumar Mangalam Birla, Chairman of Aditya Birla Group, and Kunal Behl, CEO, Snapdeal, are expected to attend the event.
New investments
The CEO of Maharashtra Industrial Development Corporation (MIDC) Bhushan Gagrani told reporters that the Maharashtra Government plans to attract investments of Rs. 4 lakh crore during the Make in India Week. He, however, declined to share details of companies that have promised investments. The MIDC is the primary body of the Maharashtra Government for facilitating industrial investments in the State. The Make in India Centre, setup at the MMRDA grounds in Mumbai to host the event, would showcase exhibitions of the most innovative products and manufacturing processes across 11 sectors.
SOURCE: The Hindu Business Line
United Arab Emirates leader and Crown Prince of Abu Dhabi Mohammed bin Zayed Al Nahyan is set to arrive in India on Wednesday along with seven ministers on a visit that is expected to witness signing of a landmark civil nuclear cooperation pact among agreements across sectors including a deal on security and information sharing to combat terrorists. On his maiden visit to India in official capacity, Zayed Al Nahyan, chief architect of the UAE's counter-terror partnerships including that with India, also hopes to push bilateral trade and investments. "India and the UAE hope to sign 16 agreements during the visit of Abu Dabhi crown prince. This includes a pact on civil nuclear cooperation involving power stations and setting up research and development centres," the UAE's envoy to India Ahmed AR Albanna told media persons, referring to the upcoming visit of the crown prince within six months of Prime Minister Narendra Modi's trip to the Gulf nation. The UAE leader is scheduled to visit the country for three days, but he may extend the trip to attend the first day of the 'Make in India Week' in Mumbai on Saturday where business leaders from his country are among the participants.
On Friday, a business delegation of about a hundred people is expected to participate in the India-UAE economic symposium in Mumbai. The nuclear cooperation agreement to be signed with the UAE will be India's first with any West Asian nation. The UAE has civil nuclear pacts with France and South Korea, both of which have nuclear cooperation agreements with India as well. The remaining 15 pacts will cover security cooperation and information sharing in the light of bilateral counter-terror partnership; industrial cooperation, aerospace, finance, renewable energy, IT, cyber security and investments among other areas.
Albanna said that the joint statement that will be released after Modi-Al Nahyan meeting will deal with details on the counter-terror partnership. "This visit in many ways will reinforce the vision that was put in place by Modi's visit to the UAE last August and will uplift ties to strategic cooperation and strategic coordination on all regional issues and other major global issues," he said. The UAE has deported a number of ISI-backed terror operatives and Islamic State (IS) radicalised youth to Delhi. Its leader's visit comes in the backdrop of the UAE handing over three Indian IS sympathisers to India last month, taking the total number of radicalised youth deported by the country since last year to a dozen. The UAE has set up two centres with the radical and extremist groups and individuals. The country had come out in India's support within hours of the Pathankot attack and even suggested that the terror strike should be investigated, in what was seen as an indirect reference to Pakistan. The UAE envoy said that his country supports peace process between any two countries and that it would be glad to further India-Pakistan peace process if need be.
Last year, during Prime Minister Modi's visit to both Abu Dabhi and Dubai, India and the UAE had announced a comprehensive counter-terror partnership that called for delinking terror from religion and denounced state-sponsored terrorism in an indirect message to Pakistan, the strong ties between Pakistan and the UAE notwithstanding. The ministers expected to accompany the crown prince include the minister of state for foreign affairs, the minister of interior affairs (brother of the crown prince), the minister of energy, the minister of economy, the minister of labour, the minister of state for renewable energy and minister of state for India. Besides security matters, the key objective of the visit is to strengthen economic and investment ties. The UAE has identified key sectors including railways, housing, ports, roads and renewable energy (mainly solar) for investments in India as part of the $75-billion investment fund announced during PM Modi's August 2015 trip by the Abu Dabhi Investment Authority. The authority and the Indian government held a brainstorming session in Delhi last week on investment proposals. Albanna said that government-funded private players from his country are also expected to make investment commitments in India this week. India is the UAE's biggest trading partner, with the figure touching $ 60 billion last year.
SOURCE: The Economic Times
As India and Nepal look to normalise ties after months of tense relations, Finance Minister Arun Jaitley today discussed bilateral trade and economic issues with his Nepalese counterpart, Bishnu Prasad Paudel. The meeting comes ahead of Nepal Prime Minister K P Sharma Oli's likely visit to India on February 19, his first foreign visit as the country's premier. Jaitley, who also hosted a lunch for Paudel, discussed bilateral economic ties with a view to boosting trade between the two countries, official sources said. India's assistance to Nepal for reconstruction after the devastating April earthquake also came up for discussion. India had extended USD 1 billion in assistance at a donors' conference in Kathmandu in June. Also, Nepal is facing an acute shortage of cooking gas LPG, fuel, medicines and other essential goods as key border trade points with India have been blocked for five months due to the Madhesi agitation. Paudel, who is on a two-day visit to India, had yesterday met External Affairs Minister Sushma Swaraj. According to the sources, during the meeting, Swaraj said India is looking forward to Oli's visit as it could "further strengthen" the bilateral ties. Oli is scheduled to hold comprehensive talks with Prime Minister Narendra Modi on February 20 on key regional and bilateral issues, the sources said. Ties between the two countries had soured following Nepal adopting its new Constitution in September. Sections of the Nepalese population -- the Tharus, Madhesis and Janjatis -- saw the new Constitution as discriminatory that would lead to their political marginalisation. New Delhi wanted amendments to those sections seen as discriminatory. Madhesis blocked a key supply route between the two countries at Raxaul in Bihar and Birganj on the Nepalese side of the border, which are used to transport most of the fuel and other essential supplies. The supply routes were opened after Nepalese Parliament last month passed two amendments addressing the set of demand.
SOURCE: The Economic Times
A draft copy of the proposed India-US Bilateral Investment Treaty is not ambitious enough to attract American investors to India, feels Washington, which would rather prefer an agreement similar to the ones Delhi has signed with Japan and South Korea. "What India has proposed is not yet attractive enough for the US," an American government source said. India had shared a model text of the proposed treaty (BIT) with the US last year. The issue had come up for discussion at the US-India Trade Policy Forum (TPF) meeting in Washington last year, and bet over the past year, both sides held formal negotiations on BIT either in person or through video conferencing.
According to the US source, the Barack Obama administration feels that the current form of agreement does not provide robust market access. There are differences over the issue of Japan or Indo-South Korea trade treaties should be the model for the India-US BIT. Japan and South Korea are two big investors in India. Signed in 2009, the Comprehensive Economic Partnership Agreement (CEPA) is a free trade agreement betover agreement eases restrictions on foreign direct investments and companies can own up to 65% of a company in the other country. Indo-Japan CEPA came into force in 2011. The pact seeks to abolish import duties on most products, increase access for Indian professionals and contractual service suppliers to the Japanese market and liberalise investment rules.
According to the officials in the Obama administration, US investments into India and vice-versa are being carried out irrespective of a bilateral BIT. American investments in India amount to $28 billion and Indian investments in the US amount to $ 18 billion. Sources feel that under such circumstances, the Narendra Modi government has to make attractive offers for concluding the BIT as the Obama administration has entered its last leg. Incidentally, both governments separately decided to review their model texts of BITs and reviews happened consecutively. When Barack Obama visited Delhi in January 2015 the two sides decided to pick up threads on BIT.
SOURCE: The Economic Times
Union Finance Minister Arun Jaitley has said that India continues to be one of the fastest growing economies in the world, but there is still potential to grow at a much faster pace, according to an official press release. Ahead of the Budget, Jaitley's comments came during the opening remarks at the first meeting of the Consultative Committee attached to the Finance Ministry. He said that the world economy is passing through an uncertain and fragile situation. “All the major economic organisations including IMF have predicted low growth for the world economy in the coming year. These developments have implications on India's economy as our exports are also affected,” he said. However, he added, that silver lining is low international commodities and oil prices which in turn has helped in better macroeconomic situation of the country. The Finance Minister said that the agriculture growth in the last two years has suffered mainly due to insufficient monsoons. The highest ever amount was given to the States for drought relief during the current financial year 2015-16 and more incentives will be given to agriculture sector for increasing agriculture production and productivity, he said.
Jaitley also said that loans worth over Rs. 90 crores have been already disbursed in the current financial year so far to more than two crore micro, small and medium enterprises under MUDRA Scheme. “We will be able to contain the fiscal deficit as per the target fixed for the current financial year 2015-16,” he said. The Finance Minister said that this was also the first time that the real expenditure amount was higher than the Budget proposal. “This year we have spent more but still, we will very well manage our deficit targets,” he said. He said that during the financial year 2016-17, the Central Government has to make provision for about Rs.1.10 lakh crore in order to meet the liabilities on account of implementation of Seventh Pay Commission recommendations and One Rank One Pension (OROP) Scheme. Among the suggestions given by the Members of Consultative Committee was that the forthcoming budget may give relief to industries to set-up sewage and affluent treatment plants in order to keep the environment clean. This is of particular importance to the textile industry that has been flagged as a major polluter of the environment.
SOURCE: Fibre2fashion
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$ 31.06 per barrel (bbl) on 08.02.2016.
In rupee terms, the price of Indian Basket increased to Rs 2106.17 per bbl on 08.02.2016 as compared to Rs 2100.50 per bbl on 05.02.2016. Rupee closed weaker at Rs 67.82 per US$ on 08.02.2016 as against Rs 67.64 per US$ on 05.02.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on February 08, 2016 (Previous trading day i.e. 05.02.2016) |
Pricing Fortnight for 01.02.2016 (14 Jan to 27 Jan, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
*31.06 (31.06) |
26.05 |
|
(Rs/bbl |
2106.17 (2100.50) |
1763.06 |
|
|
Exchange Rate |
(Rs/$) |
67.82 (67.64) |
67.68 |
* Since Oman & Dubai prices are not available due to holiday in Singapore on 08.02.2016, the price of Indian Basket Crude oil cannot be derived. Therefore, price of Indian basket as of 05.02.2016 has been considered.
SOURCE: PIB
The latest update of this series of reports contains statistical data, information and insight into global textile and clothing trade. The report identifies key trends and includes information on: textile trade flows, clothing trade flows, intra-Asian textile and clothing trade, and textile and clothing deficits and surpluses. It also analyses the trade activities of the world's leading textile and clothing exporting and importing countries and regions. The report presents a wealth of information and is essential for anyone involved in buying or sourcing textiles and clothing. During 2014, world textile and clothing trade rose to a record high, reflecting growth in almost all the major trade flows. The world's biggest exporter of textiles was China, followed by the EU and India. China was also the world's biggest exporter of clothing, followed by the EU and Bangladesh. Meanwhile, the EU was the world's biggest importer of textiles and clothing, followed by the USA. However, China was the third largest importer of textiles and the tenth largest importer of clothing.
SOURCE: Innovation in Textiles
In an airy 1950s factory on the western outskirts of the Indonesian capital, Rina Yulianti watches over a knitting machine with the quiet intensity of an 18-year-old just a few months into her first job. "I was worried when I graduated," she says, raising her voice over the low thrum of 137 machines producing garments at PT Mulia Knitting Factory. "It took me six months to find work." Many of the risks and opportunities in Indonesia's economy this year can be seen in the fraying threads of the archipelago's garment and textiles trade. The labor-intensive business is dependent on imported cotton priced in dollars, making it vulnerable to a weak rupiah and economic tremors in Beijing.
Rising interest rates in the U.S. and slower Chinese growth present similar concerns for Indonesia, which is Southeast Asia's largest economy. Fears of currency depreciation and inflationary pressures prompted the central bank to keep its main policy rate on hold at 7.5% for 11 months before cutting it by 25 basis points in January. At the same time, Indonesia's economic growth edged down to a six-year low of 4.76% in 2015, as trade plunged amid weak external demand and sluggish domestic consumption. The value of the country's exports last year fell by an annual 14.6% to $150.3 billion. The slow pace of growth has raised concerns that the archipelago is creating too few productive jobs for young Indonesians like Yulianti, who are joining the workforce in record numbers. A welcome uptick in the fourth quarter of 2015, to 5.04% annualized growth in gross domestic product, has raised hopes for an improved rate in 2016. But Indonesia's labor-intensive textiles companies and other light manufacturers are facing other problems. In recent years they have struggled with higher electricity rates, rising labor costs and price pressures from cheaper Chinese imports. Garment exports from Cambodia and Vietnam expanded in 2015; Indonesia's apparel shipments fell by 10.9% from 2014, according to government data.
Wage woes
Annual increases in minimum wages in West Java and Jakarta have squeezed already-tough margins -- machinists like Yulianti are paid 3.1 million Indonesian rupiah ($228) per month -- more than double the 1.5 million rupiah paid in 2012. Many garment and textiles companies have responded by laying off workers and reducing the number of shifts. On top of this problem, a fall in the external value of the rupiah last year imposed new risks on businesses buying raw materials in dollars and selling to the domestic market in rupiah. "This is the handicap on our industry right now," said Indonesian Textiles Association chief Ade Sudrajat.
SOURCE: The Nikkei Asian Review
The Zimbabwean government has gazetted some Statutory Instruments to discourage cheap imports of textile products into the country, this is likely to push the capacity utilization of local textile industry to 45 percent this year, an official said. Zimbabwe Textile Manufacturers’ Association secretary-general, Raymond Huni said that the industry would take off well this year due to measures introduced by government to protect the industry. In 2015, due to an influx of cheap import, the industry was operating at below 30% of capacity. But this year, they are anticipating an improvement due to a number of measures introduced by the government to protect the industry. Raymond Huni said that if everything goes well they want to push industry capacity to 45 percent.
Currently the textile industry is reeling under low capitalization levels and an influx of cheap imports. To revive the textile sector, at least $20 million is required but the government does not have the funds. In his Mid-Term Fiscal Policy review, Finance minister Patrick Chinamasa introduced the manufacturers’ rebate of duty on critical inputs imported by approved textile manufacturers. This rebate covers spare parts, yarn and unbleached fabric, among others. Furthermore, it was proposed to remove blankets from the Open General Import Licence for a period of 24 months. Poly-knitted fabric is currently imported in semi-processed form, hence, undergoes very limited local value addition before transformation into a blanket, which competes with locally manufactured blankets. To that effect, government increased customs duty on poly knitted fabric from 10% to 40% plus $2,50 per kg. The government also banned imports of the second-hand clothes, if implemented would see the sector double its contribution to gross domestic product by at least 10 percent.
SOURCE: Yarns&Fibers
The Pakistani textile exports showed around 9 percent decline during July-December 2015 as compared to same period of previous year. Textile exports continue to decline except a minor improvement in some of the small segments, sources revealed. Raw cotton exports were 72 million during July December 2015, as compared to 114 million in previous year, a decline of 37 percent and cotton yarn declined 30 percent as its exports in second half of 2015 dropped to 698 million from 992 million in 2014. Cotton Cloth exports remained 1110 million as compare to 1237 million previous year, a decline of 10 percent. Knitwear garments exports were 1199 million in July-December 2015 as compare to 1236 million in July-December 2014. Ready-made garments and towels showed a slight increase. Readymade garments exports in July-December 2015 were 1044 as compare to 1006 in same period of 2014, an increase of 4 percent. Towels showed an improvement of 5 percent as its exports in last six months of 2015 jumped to 398 from 390 million in 2014 same period. According to official, the overall export scenario remained same in the first month of January 2016, with some slight changes due to documentation process or some other procedures, but the overall picture is the same. However the data has yet to be announced.
SOURCE: Yarns&Fibers
