Industry in the state is protesting against the rise in GST rates on clothes and shoes from 5% to 12%. The increase will be applicable from January 1, 2022. Opposing the hike, president of Federation of Rajasthan Trade and Industry (FORTI) said the increase in GST rates on footwear and clothing was contrary to the basic concept of GST. Agarwal said while implementing the system in 2017, it was said by the central government that most of the items related to the common consumer would be gradually brought in to the minimum slab. “The government also followed this announcement and after some time, while revising the rates of GST, it was reduced on many consumer goods, but now the GST Council has increased the rates on clothes and shoes. This is against the sentiment.” A large number of textile and garment manufacturers, stockists, distributors and retailers of Rajasthan are members of FORTI. Other members of FORTI like its general secretary Naresh Singhal said that roti, cloth and house are included in the basic necessities of citizens. “There is no tax on food and the government is giving subsidy on houses. In such a situation, increasing the rate of GST on primary use items like textiles is an injustice”. Similarly, the youth wing of the industry body president Dhirendra Raghav says that the delegation of FORTI will go to Delhi and submit a memorandum to the ministers of the concerned ministries. “We will also meet chief minister Ashok Gehkot and submit the demand for persuading the Centre to reduce the rates on the items,” said Raghav.
Source: Times of India
The Philippines and India are also looking at forging a preferential trade agreement, which would help improve current trade levels in terms of value and volume. The Philippines is looking to strengthen its economic ties with India through expanded trade and Preferential Trade Agreement is in pipeline to boost economic partnership, the country’s Department of Trade and Industry (DTI) has said. Trade Secretary Ramon Lopez recently said that the DTI is committed to continue to work with the Federation of Indian Chambers of Commerce and Industry (FICCI) in further enhancing PhilippineIndian trade and economic ties. “There is still big room for opportunity for strengthened economic relations,” he said. Lopez noted that Indian companies in the country are mostly engaged in manufacturing, agriculture, information technology – business process management, wholesale and retail, construction services, and renewable energy. The Philippines and India are also looking at forging a preferential trade agreement, which would help improve current trade levels in terms of value and volume. Lopez said India was the Philippines’ top 14th trading partner, 13th export partner and 13th import supplier last year. Data from the Philippine Statistics Authority showed Philippine exports to India reached $547.98 million, while the country’s imports from India amounted to $1.51 billion last year. India Ambassador to the Philippines Shambhu Kumaran said India would also want to see the relationship between the two countries continue to grow. “I am happy to say we are well on our way to building a much stronger and effective partnership, cutting across political dialogue, defense and security cooperation, economic trade and investment linkages and cultural education and people to people ties,” he said. For his part, FICCI president Mukesh Advani vowed the group would continue to work on helping enhance ties between the two countries. “Throughout the 70 years, FICCI has been a partner in building a stronger, more prosperous Philippines, and has championed areas such as inclusive growth, poverty alleviation. This will remain our pathway as we move forward,” he said.
Source: Economic Times
Asserting that this is an era of start-ups, Prime Minister Narendra Modi on Sunday said India is leading the world in this field with more than 70 start-ups having crossed the valuation of USD 1 billion. Asserting that this is an era of start-ups, Prime Minister Narendra Modi on Sunday said India is leading the world in this field with more than 70 start-ups having crossed the valuation of USD 1 billion. In his monthly Mann Ki Baat radio broadcast, the prime minister said that in any country having a large population of youth, three things -- ideas and innovation, passion to take risks and the 'can do' spirit-- matter a lot. When these three things come together, unprecedented results are achieved and miracles happen, he said. "These days we hear all around us, start-up, start-up, start-up. It is true that this is the era of start-ups and it is also true that in the field of start-ups, in a way, India is leading the world," Modi said. He noted year after year start-ups are getting record investments and this sector is growing at a fast pace. "Even in small cities of the country, the reach of start-ups has increased. Nowadays the word unicorn is much in discussion. Unicorn is a start-up whose valuation is one billion dollars, around Rs 7,000 crore," Modi said. "Till the year 2015, there used to be nine to ten unicorns in the country, you will be very happy to know that now India is flying high in the world of unicorns as well. According to a report, a big change has come this year and in just 10 months, a unicorn was made in India every 10 days," he said. This is a big thing because the youth of the country achieved this success in the midst of the Covid pandemic, he said. "Today, there are more than 70 unicorns in India, that is, more than 70 start-ups have crossed the valuation of USD 1 billion," Modi said. In his broadcast, the prime minister also noted that in the month of December, Navy Day and Armed Forces Flag Day are celebrated, and on December 16, it will be the Golden Jubilee year of the victory in the 1971 War. "On all these occasions I remember our armed forces, our soldiers, especially the brave mothers who gave birth to these warriors," he said.
Source: Business Standard
A high-level trade delegation from North African economic major Morocco was on a sixday visit to India, beginning with Bengaluru to increase bilateral trade through ‘Morocco Now’ – the national brand that promotes investments and export in the country. Led by Mohamed Maliki, Ambassador of Morocco, the delegation included Youssef El Bari, Director General (CEO) Moroccan Agency for Investment and Export Development (AMDIE), Ayda Fathi, AMDIE’s Director of Investment and Member of the Steering Committee, Hicham BAYAR, First Secretary, Morocco Embassy in India, Karam Lahlou, AMDIE and Ilham Fadlallah, AMDIE. In Bengaluru, the delegation engaged in a series of meetings with Government of Karnataka officials, industrialists and other professionals. ‘Morocco Now’ roadshows were held in Mumbai and New Delhi with a series of similar meetings in these cities as well. “Under the leadership of his Majesty King Mohammed VI, Morocco has positioned itself as a leading regional industrial and export platform with the fastest growing automotive cluster in the world. We created the brand ‘Morocco Now’ to position Morocco as an investment destination that encourages renewable energies and offers a distinctive value proposition with privileged access to a market of more than 1 billion consumers through the country’s 54 free trade agreements. Sustainability, competitiveness, guarantee of success and agility best define brand ‘Morocco Now’. Morocco can be considered as the gateway to Europe and Africa and this is the result of continuous efforts undertaken by the Kingdom to develop international trade. We constantly introduce progressive forward-looking policies to enhance business and investments. The country is well connected by road, sea and air. Morocco and India have very strong industrial potential and the two countries complement each other” said Maliki. Morocco Now’ is expected to boost bilateral trade between Morocco and India, which is currently around $2.1 billion. While India’s exports to Morocco currently straddling different industries such as automotive, textiles, pharmaceutical, petroleum products and chemical products, India’s imports from Morocco are largely dominated by phosphate and potash. “We have a national plan to increase our presence in India. We currently have consulates in Mumbai and Kolkata and are working on opening one in Bengaluru. Our aim is to grow together and have India as one of our top 10 partners by 2025. We have outsourced visa services whereby potential investors can apply in cities wherever they are and multiple visas for a period of one year will be processed within 3 to 5 days” Maliki informed. “Morocco has set up a vast range of industrial acceleration zones spread across the Kingdom, which offer foreign investors several advantages including total exemption from Corporate Income Tax for the first five years of operations and a fixed 15% for every year that follows. Other tax benefits include exemption of professional tax for the first 15 years of consecutive operations, exemption of VAT for operations carried out inside or between industrial acceleration zones and exemption from withholding tax of dividends originating from activities carried out in industrial acceleration zones. We will also facilitate foreign exchange transfers abroad for incomes generated by foreign investments made in Morocco, such as dividends and interests generated by shareholders' loans. A special customs regime which allows companies located in industrial acceleration zones to benefit from exemption of all duties, taxes or surcharges on import, circulation, consumption, production or export has also been set up. Our major focus areas of business include automotive, aeronautic, textiles, agri-food, pharmaceutical and outsourcing. The quality of Morocco’s human capital, strong financial backbone and a stable economic and political climate make our country an attractive investment destination” said Youssef El Bari, Director General (CEO) Moroccan Agency for Investment and Export Development (AMDIE). At least 35 Indian companies have already set up units in Morocco including Varroc Lighting Systems, Steel Strip Wheels, Mahindra & Mahindra (M&M), Tata Hispano Motors Carrocera, Indian Motors and Sun Pharmaceuticals Morocco. India is the fourth largest trading partner of Morocco and the 13th largest supplier to the country in the first half of 2021.
Source: Economic Times
The Standing Finance Committee has approved the MSME Champions Scheme with a total outlay of Rs. 273.24 Cr. As part of this Scheme a ‘Digital MSME’ component has been included for digital empowerment of MSMEs in the country. In addition to this, there are several Technology Centres under the Ministry are also assisting on technological and automation interventions along with training support. In regard to international trade digitization of local enterprises, the Standing Finance Committee has approved the International Cooperation Scheme comprising of First Time Exporters and Global Marketing Intelligence System with a total outlay of Rs. 90 Cr. The Ministry is operating two schemes for setting up business incubators in educational institutes to facilitate innovation. These are “Support for Entrepreneurial and Managerial Development of MSMEs through Incubators Scheme” and ASPIRE (A Scheme for Promotion of Innovation, Rural Industry & Entrepreneurship) Scheme. The Government is taking necessary steps through the Digital MSME Scheme, with the following objectives: I. To empower & enable MSMEs to harness IT as a medium of communication to revamp access to the markets to update their managerial and technical knowledge though online content–both static and dynamic.
II. To give them software interventions, evolving their internal efficiencies by way of intense ICT intake and automating procedure for cost reduction, imparting digital literacy and capacity enhancement for information access, processing, collaboration and dissemination.
III. To offer to the MSMEs a safe and sound bouquet of customized digital solutions which have been designed keeping in mind the diverse requirements of the ecosystem, saving them from the travails of indiscreet and indiscriminate adoption of technology. This information was given by the Minister for Micro, Small and Medium Enterprises Shri Narayan Rane in a written reply to Rajya Sabha today.
Source: PIB
The Skill Loan Scheme aims to provide loan facility to aspirants wanting to do skill development courses aligned to National Skill Qualification Framework (NSQF). Loan amount varies from Rs 5,000 to Rs 1,50,000 depending on the course and has a repayment period of three to seven years. The Skill Loan Scheme, launched by the ministry of skills development and entrepreneurship in 2015, has benefited barely 6,018 individuals with Rs 64.37 crore disbursed in six years till October 31, 2021, the ministry said in a response to a question in Lok Sabha on Monday. The Skill Loan Scheme aims to provide loan facility to aspirants wanting to do skill development courses aligned to National Skill Qualification Framework (NSQF). Loan amount varies from Rs 5,000 to Rs 1,50,000 depending on the course and has a repayment period of three to seven years.
Policy Review In a separate response, the skills development ministry informed the Lok Sabha that the steering committee of National Skill Development Mission in its second meeting on June 29, 2021, has proposed to undertake the review of National Policy for Skill Development and Entrepreneurship. “Alignment with global standards has always been a part of policies and guidelines of the Ministry of Skill Development and Entrepreneurship. All NSQF qualifications packs and curriculum contain references to global standards wherever needed,” it added. Migrant workers The skills development ministry, on Monday, said lakhs of migrant labourers have returned during COVID-19 lockdown to Madhya Pradesh, Uttar Pradesh and Rajasthan Quoting the data provided by the states for the implementation of Garib Kalyan Rojgar Abhiyaan (GKRA), the skills development ministry said 3.2 million migrant workers returned to Uttar Pradesh, 1.3 million to Rajasthan and 0.75 million to Madhya Pradesh. “In order to support the Garib Kalyan Rojgar Abhiyaan (GKRA), a special training programme was implemented for reverse migrants impacted from COVID 19 under the short term training (STT) and recognition of prior learning (RPL) of central component of PMKVY 2.0 (2016-20),”it said in response to a question in the Lok Sabha. This special programme covered 116 districts of six states, namely, Assam, Bihar, Madhya Pradesh, Odisha, Rajasthan, and Uttar Pradesh. Under PMKVY, placement opportunities are being provided to STT certified candidates, while RPL does not mandate placements as it recognizes the existing skills of the candidate, it added.
Source: Economic Times
India's macroeconomic situation is certainly better than what it was a year ago, eminent economist Pinaki Chakraborty said on Monday, while expressing hope that the country will be back on the path of economic growth if there is no major third wave. India's macroeconomic situation is certainly better than what it was a year ago, eminent economist Pinaki Chakraborty said on Monday, while expressing hope that the country will be back on the path of economic growth if there is no major third wave of the COVID19 pandemic. In an interview with PTI, Chakraborty, who is the director of the National Institute of Public Finance and Policy (NIPFP), said that inflation may remain at an elevated level as there was a significant fiscal and monetary expansion in the last 18 months. The current macroeconomic situation is certainly much better than what it was one year back. We are seeing recovery in most sectors," he said. Chakraborty noted that COVID-19 vaccination has been going on at a very fast rate in India. "And hopefully if there is no third wave, we will be back on a path of economic growth which will be sustainable and increasing," the eminent economist added. According to Chakraborty, COVID-19 vaccination brings a sense of health security and should help resumption of normal economic activity, particularly in the services sector, which contributes more than 50 per cent of India's GDP. The Reserve Bank of India (RBI) has lowered the growth projection for the current financial year to 9.5 per cent from 10.5 per cent estimated earlier while the IMF has projected a growth of 9.5 per cent in 2021 and 8.5 per cent in the next year. Indian economy in better shape than a year ago, says Pinaki Chakraborty, Noting that GST collections have been quite good in the last couple of months, Chakraborty said, "And if we are able to manage our deficits in a manner that does not become a problem later, recovery will be sustainable and durable". Asked what fiscal measures are necessary to support households in distress, he opined that "So fiscal programmes targeted to improve the household budget is important. However, we have to recognise what is possible within the limited resources." He further said that in this context, the issue of growth and private-sector job creation becomes very important. On fiscal challenges, Chakraborty observed that there is a need to look at the deficit of centre and states together The eminent economist pointed out that in the fiscal year 2020-21, the deficit of all levels of governments is estimated to be 14 per cent of GDP and the same is estimated to be around 10 per cent of GDP in 2021-22. "The deficit levels are high, global debt has increased and the pressure to provide immediate resources for the Covid response for health and livelihood has not declined," he said, adding that in a situation like this, medium to long term planning becomes a very difficult task. Chakraborty opined that data shows that globally, governments are faced with complex challenges related to resource allocation for three priorities: life, livelihood and economic recovery. "How much resources to each of these components, would depend on the country-specific need and how it is done will determine the pace of recovery. It is easier said than done and is a continuous process as we navigate the pandemic," he said. According to Chakraborty, the state government's revenue in India had contracted by 16 per cent in 2020-21 while the health expenditure increased by 24 per cent. Asked if high CPI and WPI inflation are a concern, he said high inflation is always a concern but it is also important to recognise that managing inflation is also a phenomena that is to be fought on multiple fronts. "Inflation may remain at an elevated level as there was significant fiscal and monetary expansion in the last 18 months," he said. The wholesale price-based inflation spiked to 5-month high of 12.54 per cent in October, mainly due to rise in prices of manufactured products and crude petroleum, while retail inflation inched up to 4.48 per cent in October due to an On the stock market boom at a time when economic growth has slowed down, he noted that it is important to recognise that the market is always forward looking. "But over time, we would require broad-based recovery....I think formal sector employment will increase only when we have a broad based economic recovery," the economist said.
Source: Economic Times
The Covid outbreak and lockdown wreaked havoc on the micro-businesses, causing consumer demand to fall and hurting the garment sector as a whole. Handloom weaving is a traditional craft and it is one of the smallest components of the textile Micro, Small and Medium Enterprises (MSMEs). The Covid outbreak and lockdown wreaked havoc on the micro-businesses, causing consumer demand to fall and hurting the garment sector as a whole. Many loom workers left for their hometowns and did not return, causing hardship for handloom owners. The looms began to sit idle, and debt began to mount. Around 4.5 crore people are working in India's textile sector, including 35.22 lakh handloom workers. In 2018-19, the sector provided 7% of total industry output (by value). In the fiscal year 2018- 19, the Indian textiles and apparel industry contributed 2% to GDP, 12% to export earnings, and 5% of global textiles and apparel trade. India exported textile items worth Rs. 1.77 lakh crore (US$ 23.84 billion) between January and July 2021, up 52.6 percent from the same time previous year and 13.7 percent higher than the pre-pandemic level of 2019. The art of spinning and weaving by hand has always been an extraordinary skill to human. Over years this art has been modernized but still, the art of handwork remains the same - exclusive and exquisite. One of those exquisite skills refers to the art of making a Muslin. “In handloom Hand Spinning plays an important role for sustainable lifestyle without which the heritage fabric like muslin cannot be made with the use of machines. Thus, one needs to appreciate and respect the value of this cloth and the people behind who are making such products. My work is to show the ‘behind the scenes’ through digital and promote this cloth through various ways possible, be it marketing or through digitalization or by physical sale, etc,” says Prerona Das Roy. She also says “Jaise boond boond se Sagar Banta hain’ similarly smallest of the smallest contribution also can make a big change and that’s how I exist here.”
Source: Zee News
As a result of these upcoming projects, 28,585 new employment opportunities will be created in Gujarat over the next five years, said the state government in its official statement. As part of the run-up to 10th edition of Vibrant Gujarat Global Investors’ Summit (VGGIS), the Gujarat government signed Memorandum of Understandings (MoUs) worth Rs 14,000 crore with different companies on Monday. As a result of these upcoming projects, 28,585 new employment opportunities will be created in Gujarat over the next five years, said the state government in its official statement. As many as 12 MoUs were inked for as many projects, which would be completed in a three – five years’ span, said the state government in an official statement. Last Monday, the state government inked 20 MoUs worth Rs 24,000 crore and set the tune for the upcoming VGGIS considered as flagship biennial event for attracting investments in Gujarat. Aarti Industries inked as many as three MoUs in the chemicals and petrochemicals sector. The projects proposed by Aarti Industries include making of pesticides, specialty intermediate as well as chemicals & petrochemicals at Jhagadia, Dahej and Vapi, respectively. The company will invest nearly Rs 4,000 crore for these projects. Another company Aarti Drugs will invest Rs 475 crore in a chemicals and petrochemicals facility in Vapi. All these projects will be commissioned by the end of year 2025, claimed a senior official with the Gujarat Chief Minister’s Office adding that nearly 6,500 employment opportunities, too, will be created through these projects. Mitsu Private has proposed to invest Rs 5,000 crore in the areas of chemical, pharma, AP, textile, engineering and plastic at Vapi in South Gujarat. The company during the MoU signing ceremony claimed to provide 15,000 direct and indirect jobs through these projects by the year 2025. Gujarat Flurochemicals, the speciality chemical maker, signed an MoU of Rs 2,000 crore to make battery chemicals for electric vehicles, PVDF (polyvinylidene fluoride) film for solar application and PVDF blinder for application in electric vehicles at Dahej in Bharuch district. The company will generate employment opportunities for 1450 people by the end of year 2024 as per the MoU detail. Asian Paints inked MoU to invest Rs 1,140 for a new integrated paints factory in Ankleshwar. The project to be commenced in the year 2023 will provide employment to 3900 people.
Source: Financial Express
Government has taken a number of initiatives under Aatma Nirbhar Bharat Abhiyan to support the MSME Sector in the country especially in Covid-19 pandemic. Some of them are:
i) Rs 20,000 crore Subordinate Debt for MSMEs.
ii) Rs. 3 lakh crores Collateral free Automatic Loans for business, including MSMEs.
iii) Rs. 50,000 crore equity infusion through MSME Fund of Funds.
iv) New revised criteria for classification of MSMEs.
v) New Registration of MSMEs through 'Udyam Registration' for Ease of Doing Business.
vi) No global tenders for procurement up to Rs. 200 crores, this will help MSME.
An online Portal “Champions” has been launched on 01.06.2020 by Prime Minister. This
covers many aspects of e-governance including grievance redressal and handholding of
MSMEs. Through the portal, total 40,201 grievances have been redressed upto 21.11.2021.
The Ministry of MSME implements various schemes and programmes for growth and
development of MSME Sector in the country. These schemes and programmes include
Prime Minister’s Employment Generation programme (PMEGP), Scheme of Fund for
Regeneration of Traditional Industries (SFURTI), A Scheme for Promoting Innovation,
Rural Industry & Entrepreneurship (ASPIRE), Credit Guarantee Scheme for Micro
and Small Enterprises, Micro and Small Enterprises Cluster Development Programme
(MSE-CDP). To provide further relief to the MSME Sector especially during Covid-19, Government has taken following measures recently:
- The validity of Udyog Aadhar Memorandum (UAM) has been extended up to 31.12.2021 vide notification no. S.O. 2347(E) dated 16.06.2021.
- On 02.07.2021, the Government has included retail and whole sale trades as MSMEs and they are allowed to be registered on Udyam Registration Portal.However, the benefits to Retail and Wholesale trade MSMEs are to be restricted to Priority Sector Lending only.
- Now, street Vendors can also register as retail traders on Udyam Registration(UR) portal and avail the benefit of Priority Sector Lending.
This information was given by the Minister for Micro, Small and Medium Enterprises Shri
Narayan Rane in a written reply to Rajya Sabha today.
Source: PIB
As many as 23,948 MSMEs had registered with intent to adopt the principle of the Zero Defect Zero Effect Scheme (ZED). Under this, the Quality Council of India (QCI) followed the scheme guidelines on a consistent basis. QCI has completed and submitted all relevant documents and evidences related to the erstwhile ZED Scheme, with the Ministry as the National Monitoring and Implementation Unit (NMIU). QCI was monitoring & implementing the following components of the guidelines: Industry Awareness Programmes, Training Programmes including Master Trainer, Assessor, Consultant, MSME Capacity Building, MSME officials training etc., Content Development for Online Learning Development of Mobile Monitoring Applications for Awareness Programmes and Site-assessments, Accreditation & empanelment of rating agencies & consulting organizations, Conducting Desktop and site-assessments through accredited agencies, other components as mentioned in the scheme guidelines. This information was given by the Minister for Micro, Small and Medium Enterprises Shri Narayan Rane in a written reply to Rajya Sabha today.
Source: PIB
Weaves hope for Kerala’s beleaguered farmers The pineapple is a fruit that in the past has brought riches to farmers in Vazhakkulam, the home of the GI-tagged herbaceous perennial in Kerala. However, of late, price drops and climate vagaries have spelt misery for pineapple farmers. But weaving hope is a Surat-based garment manufacturing firm – Natloop Innotex LLP – that has reached out to the farmers to collect pineapple leaves from them to make yarns.
Offers good price The company has offered the farming community a good price for the leaves. If the project succeeds, this will provide a thread of new business opportunity for the beleaguered farming community.
Fruit of the loom Shreyans Kokra, Director of the company, said that Natloop uses the leaves that are discarded otherwise, and processes it to create textile grade fibres and yarns using 100 per cent green technology. In the next 6-8 months, it anticipates a requirement of 50 lakh kg of pineapple leaves. Baby John, President of Pineapple Growers Association Keralam, told BusinessLine that the Surat-based company has already procured around 2,000 tonnes of leaves at an offered price in the range of ₹15-18 per kg. Currently, it is transporting the entire quantity of leaves to Gujarat, but the company has plans to extract fibre from the leaves on site in Kerala itself, which will be more cost-effective and easier than transporting the commodity to Gujarat. “It is possible to get sufficient quantities of leaves every month after vacating the yield and it is estimated that around 20 tonnes of leaves can be procured from one acre plantation,” said John. Earlier, pineapple leaves were also used in cattle feed after shredding it, he said, adding that the move by the Gujarat textile firm would help farmers earn critical extra income which would come in handy when pineapple prices plummeted. There has been growing use of the pineapple shrub’s parts.
Disposable glasses Earlier, the Central government had sanctioned a project with the Vazhakkulam Pineapple Company to make disposable glasses and plates at a cost of ₹2.55 crore.
Source: The Hindu Businessline
The agency has attributed the higher growth to the nine consecutive quarters of over 3 per cent agriculture growth, which has brightened consumer spending and the resultant uptick in private final consumption expenditure, which is likely to clip at around 10 per cent in the September quarter of the current fiscal. Leading rating agency India Ratings expects the economy to grow 8.3 per cent in Q2 and close the year with 9.4 per cent in FY'22, which is 10 bps lower than the consensus forecast. The agency has attributed the higher growth to the nine consecutive quarters of over 3 per cent agriculture growth, which has brightened consumer spending and the resultant uptick in private final consumption expenditure, which is likely to clip at around 10 per cent in the September quarter of the current fiscal. Another major reason is the near three-fold jump in vaccination, which soared to 890.21 million as of October-end from 335.72 million at June-end. The government will announce the numbers on Tuesday. Noting that Q1 was impacted by the second wave leading to reduced workplace mobility and in turn economic activities, which at end-Q1 was 26 per cent lower than the base line and 16 per cent lower than baseline in FY21, it said mobility started improving only in Q2 yet it was only 7 per cent annualised lower than the baseline at end-Q2 of FY22. The workplace mobility improved after vaccination pace gathered the momentum. Cumulative vaccinations jumped to 890.21 million at endQ2 from 335.72 million at end-Q1. Even investment activities have found support from the government's focus on infrastructure and the agency expects the fixed capital formation to grow at around 8.5 per cent in Q2. The government capex grew 51.9 per cent in Q2 as against 26.3 per cent in the same previous quarter of the current fiscal and the aggregate capex of 24 states grew 62.2 per cent in Q2 massively down from 98.4 per cent in Q1. Yet private capex revival is still slow and limited to select sectors. Since H1 growth is mainly due to the lower base, economic growth is expected to revert closer to the medium/long trend growth from the second half onwards. However, recent reforms like production-linked incentive scheme and sustained export growth may provide a fillip to the ongoing growth recovery, concludes the report.
Source: Economic Times
The IHS Markit-Chartered Institute of Procurement & Supply (CIPS) UK composite purchasing managers’ index (PMI) output index registered 57.7, according to the preliminary 'flash' reading, down from 57.8 in October but remaining well above the neutral level of 50 to indicate a robust expansion of the economy. The latest reading was above the consensus of a slightly stronger pull-back to 57.5. The data mean the fourth quarter should see a welcome pick up in gross domestic product (GDP) growth after the slowdown to 1.3 per cent seen in the third. At 57.8, the average reading for the fourth quarter so far is already running higher than the mean of 56.3 registered in the three months to September, and an acceleration of new business inflows recorded by the November flash surveys adds to signs that output growth should remain buoyant in December, thereby cementing the strong end to the year, HIS Markit said in a press release. The news was by no means all positive, notably with growth once again heavily skewed towards the service sector. Solid service sector growth that far exceeded the pre-pandemic long-run average contrasted with only modest production growth in the manufacturing sector. The rate at which production expanded was the third lowest since February, albeit up slightly on October's low. The service sector continued to benefit from the opening up of the economy, with no new COVID-19 restrictions applied and recent weeks having seen a loosening of international travel restrictions, which helped drive the strongest growth in service sector exports for over three years. However, concerns over high COVID-19 case numbers were cited as a dampener on activity in some firms. Factories in contrast continued to struggle with supply shortages and falling exports, the latter now having fallen for three successive months. Supply shortages remained widespread, with suppliers' delivery times lengthening at a rate once again far exceeding anything recorded prior to the pandemic, albeit with the incidence of delays easing in November to the lowest since July. The ongoing sellers' market created by the supply constraints alongside solid demand for materials led to another unprecedented rise in price pressures, with costs in both manufacturing and services rising at the steepest rates since comparable data were first available in January 1998. Survey respondents often cited higher shipping costs and rising fuel, transport and energy bills alongside steep price increases for items in short supply, as well as rising staff costs and wage growth, IHS Markit added.
Source: Fibre 2Fashion
The exports of readymade garments from the country witnessed an increase of 22.34 per cent during the first four months of the current fiscal year (4MFY22)as compared to the corresponding period of last year. According to data of Pakistan Bureau of Statistics (PBS), the exports of readymade garments during July-October FY22 stood at $1158.603 million against the exports of $947.070m during July-October FY21. Overall exports of textile commodities witnessed an increase of 26.55pc during 4MFY22 as compared to the corresponding period of last year. The textile exports during the current fiscal year were recorded at $6021.815 million against the exports of $4758.473 million last year, according to PBS data. Meanwhile, on year-on-year (YoY) basis, the exports of readymade garments witnessed an increase of 21.09pc at $297.435 million during October as compared to the exports of $245.628 million during the same month of last year. On month-on-month (MoM) basis, these exports also increased by 7.7pc in October 2021 when compared to the exports of $276.228 in September 2021.
Source: Pakistan Today
Global corporations can proactively work towards sustainable and ethical development, particularly in the post-pandemic recovery. During the COVID-19 pandemic, governments across the world have faced new social, political, and economic challenges. Corporations have had to adjust the way of doing business, several businesses shut down even as digital businesses benefitted tremendously. Humankind had to adjust to a new normal. The pandemic has underscored the fact that countries and institutions cannot work in isolation; there is a clear interdependence. The pandemic has given us a chance to course correct various aspects of our lives. Whether humankind takes this opportunity or simply picks up from where it left off will show our true character. In the post pandemic era, multinational corporations (MNCs) can play a role at the national and international level. But it is difficult to visualise this role without revisiting what the world ought to focus on. Food, clothing and shelter are basic human needs, but they remain unmet in many parts of the world (even as several nations are large consumption economies). The pandemic also showed the weaknesses in the prevalent healthcare systems, and even developed countries could not cope well. An environmental crisis is raging, but countries are yet to agree on concrete steps to tackle the issue. At the same time, high-value companies are not involved in providing critical human needs but are focused on materialism. Technology is progressing by leaps and bounds but efforts to solve real world issues remain inadequate. Amid this backdrop, for long-term human good, it is important to create a fresh blueprint. So how can MNCs contribute to this process? First, MNCs in similar fields should adopt ethical practices for their businesses at an international level. Not all governments swiftly enact or change laws to address legal issues arising out of new technology or business models. For instance, although cryptocurrencies have been around since 2009, many countries are yet to ascertain or enact rules for it. The focus should not only be on compliance but on identifying what is the right thing to do in a given situation (such as while adopting AI, what practices ought to be implemented). This will also establish a level playing field. A case in point is the experience in India where, in the absence of any regulations for cryptocurrencies, crypto exchanges adopted self-regulation. Second, global investors must act as change agents. The international investing community must focus on supporting businesses that solve real world issues. Investments have been made in areas such as electric vehicles, clean renewable energy, education technologies, microfinance, research and innovation, tourism and delivery platforms, which provide opportunities to improve the lives of people across the world. The Twitter tussle between UN World Food Program (WFP) Executive Director David Beasley and Tesla chief Elon Musk on the role of billionaires in solving global hunger has seen many suggestions being made on how US$6 billion can help (Musk had stipulated the figure and asked how it would “solve world hunger”)—from agricultural reforms (such as smart seeds, drought-proof water supply and climate-resilient crops) to the WFP’s detailed plan. This shows there is plenty of scope to enact change, and investors must focus on these aspects as well. Third, MNCs must focus on sustainable development, particularly the aspects of overproduction and waste management. The garment industry, for instance, reports 30 percent to 40 percent overproduction; and around 85% of textiles discarded by US consumers are dumped into landfills or burned, including unused textiles and unsold clothes. In the absence of strict laws to govern the kinds of material used in production, often non-environment-friendly materials are used. These do not decompose in landfills. This problem needs to be solved at all ends of the value chain, from producing environment-friendly products to effective waste disposal and requires extensive consumer awareness. During the pandemic, global pollution rates dropped significantly due to reduced industrial activity. While normal industrial activity resumes, MNCs must accelerate the use of clean energy. The India-led International Solar Alliance has seen 125 countries come together to harness solar energy. This spirit of cooperation provides MNCs an opportunity to deploy capital, technology, and management skills for the greater good. While companies are realigning their supply chain in new jurisdictions, they must consider environment impact assessments, even in the absence of any mandatory legal requirement to do so. Supplier countries may not have stringent environmental norms, but MNCs must themselves contractually impose stringent conditions until the last point of the supply chain. Reports show that lower-tier suppliers are unequipped to handle sustainability requirements, since they may not have the expertise, resources or knowledge of social and environmental practices and regulations. Therefore, in addition to contractual obligation, MNCs should also strive to provide expertise and infrastructure so that lower-tier suppliers are able to adhere to the standards. To illustrate, despite India being the pharmacy of the world, deaths due to antimicrobial resistance is high, highlighting irresponsible supply chain management. Fourth, MNCs must look to enhance healthcare systems and solutions across the world, as seen during the COVID-19 pandemic. MNCs in the health industry should render their expertise and work with governments to build and enhance robust healthcare systems and develop platforms for telemedicine to ease access. National governments must revisit regulations to encourage such developments. In addition to contractual obligation, MNCs should also strive to provide expertise and infrastructure so that lower-tier suppliers are able to adhere to the standards. Fifth, large corporations must focus on human capital management. The “great resignation”—a term coined by Anthony Klotz to refer to the surge in resignation rates amongst the workforce in the post-pandemic era—appears to be on the rise in the postpandemic world, with employees prioritising non-work aspects of life, and adopting approaches such as work-life integration, i.e., “an approach that aims to create more synergies between different areas of life, including work, family, friendships, well-being, community, health, etc”. MNCs will need to develop policies that take into consideration the diverse lifestyles of their global workforce with the aim of retaining most employees. At the same time, the pandemic has also provided a great opportunity to tap talent across the world as location is irrelevant in the remote working environment. And with numerous startups emerging as a result of the pandemic situation, MNCs must provide investment and collaborative support. The pandemic accelerated use of technology, leading to higher possibility of human resource redundancy. At the same time, due to great resignations there would be several skilled people taking it easy. MNCs could tap this talent to upskill their workforce and keep them employable. Finally, an important role for MNCs, particularly those in the media and publishing space, is to spread positive news in an effort to create a positive spiral. Conclusion Overall, MNCs have a great opportunity to become global change agents. Instead of waiting for governments to take necessary steps for ethical and sustainable development, MNCs can adopt a proactive role. Social, political and economic factors may restrict national governments from adopting policies that are solely meant for the greater good. In such situations, MNCs take voluntarily take the lead on certain fronts, for instance, environmental-friendly policies. As the Sanskrit adage goes, vasudhaiv kutumbakam (the world is one family). If MNCs and all other stakeholders absorb and implement this simple message, we may see a new world.
Source: ORF Online
Aiming for a capacity of 5,000 tons of recycled material annually at the first production site. Hexcel Corporation and Fairmat, a deep technology startup based in France, plan to establish the capability to recycle carbon fibre prepregs from Hexcel’s European operations for reuse in composite panels sold into commercial markets. It is intended that as a result, most of the carbon fibre prepreg cutoffs generated at Hexcel plants in Europe will be repurposed by the end of 2022. “With Fairmat, Hexcel has found an industrial recycling solution for the carbon fibre prepreg cutoffs generated at our European facilities,” said Thierry Merlot, European president of aerospace at Hexcel. “This partnership represents a significant step as we continue striving to be an industry leader and a responsible steward of resources. From lightweight composites that help reduce emissions to improving our processes to reduce our impact on the environment, Hexcel is relentless in our pursuit of innovations that will lead to a more sustainable future. So, we are delighted with this key collaboration.” Under the partnership, Fairmat will lease a former Hexcel facility in Bouguenais (LoireAtlantique) where it will recycle cutoffs generated during carbon fibre prepreg production at Hexcel’s European plants. Fairmat will begin to set up the new site in early 2022 with production scheduled to start in March 2022. Fairmat has developed a virtuous recycling process capable of circularising the manufacture of carbon fibre composite materials, giving a second life to this high valueadded material. Carbon fibre and resins are mainly cold treated, leading to reduced energy costs and avoiding traditional landfill or incineration solutions. Fairmat’s clean recycling process is expected to save 41 kg of CO2 emissions per kilogram of recycled carbon fibre composite compared to virgin prepregs. Fairmat is aiming for a capacity of 5,000 tons of recycled material annually at this first production site. “We are proud of the trust Hexcel has placed in us by signing this strategic partnership,” said Fairmat founding chairman Benjamin Saada. “The commercial agreement covering the first tons to be recycled in Europe will enable us to complete the industrial scale-up of our recycling technology by the end of the year. I originally founded Fairmat with a totally circular vision in mind, so it was important for me to be able to reuse an existing industrial facility to launch our production. I’m delighted that Fairmat is rapidly advancing toward its goal of giving advanced materials a second life.”
Source: Innovation in Textiles
