The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 08 DECEMBER, 2021

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INTERNATIONAL

 

Garment, textile dealers seek GST rollback

The Kerala Garments and Textile Dealers Welfare Association (KTGA) State council, which met here, demanded immediate rollback of the GST increase on ordinary textiles and all garments priced below ₹1,000. GST rate on fabrics has been increased to 12% from the present 5% with effect from January, 2022.

Family budget

The meeting said, according to a press release, that this would lead to collapse of small and medium businesses and would also have an impact on the family budget of the common man. The meeting pointed out that in addition to the sharp rise in prices, the increase would also lead to bureaucratic corruption.  “As the garment sector goes through more than 20 value-added stages, the final tax of 12% is tantamount to robbing people,” it said.

Concessions

The meeting sought all concessions given to industries to be extended to the business sector.

Source: The Hindu

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Gujarat govt holds roadshow in Bengaluru for upcoming global summit

A team led by Jitubhai Vaghani, Minister for Education, Science and Technology, government of Gujarat, held a road show in Bengaluru on Tuesday as part of the forthcoming 10th edition of Vibrant Gujarat Global Summit (VGGS) to be held in January next year. Addressing the dignitaries, the minister said the country has, under the leadership of Prime Minister Narendra Modi, registered remarkable socio-economic development and evolved into a dynamic nation with a strong standing across the world. ASSOCHAM, the national partner for the Vibrant Gujarat Global Summit, organised the roadshow in Bengaluru. Vaghani cited the initiatives taken by the Centre that would have far-reaching impact on India's future, including the GatiShatki Master Plan, Production-Linked Incentive (PLI) scheme, transparent and predictable tax system, reducing compliance burden, ease of doing business and ease of living, and Make in India, among others. The VGGS was conceptualised in 2003 under the leadership of Modi, who was the Chief Minister of Gujarat then. Ever since, the summit has emerged as a global forum for business networking, knowledge-sharing and strategic partnerships for inclusive socioeconomic development, he said. The minister said the Prime Minister will inaugurate the summit on January 10 in Gandhinagar. The theme of the 10th VGGS is ‘Aatmanirbhar Gujarat to Aatmanirbhar Bharat', he said. The minister asserted that Gujarat is a policy-driven state. To create an enabling environment, the state government has launched policies and schemes incentivising investors for future growth, including the Industrial Policy 2020, Integrated Logistics & Logistics Park Policy, Electric Vehicle Policy, Solar Energy Policy, and Tourism and Textiles Policy. He also said that Karnataka is home to leading IT firms and startups. "Gujarat is also revamping its Startup Innovation Policy and IT and ITeS Policy to encourage and support the existing and forthcoming IT firms to expand their business in the state, which is home to leading startup mentorship institutes, including iHub, iCreate and the Entrepreneurship Development Institute of India (EDI)," Vaghani said. The minister further said that three cities in Gujarat -- Surat, Ahmedabad and Vadodara -- feature in India's Smart City Ranking. Inviting the investors, Vaghani said that VGGS 2022 presents a unique business opportunity for them.

Source: Daiji World

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India’s mission to WTO inks MoU with 2 institutes for capacity building, research in international trade law

The MoU seeks to provide academic and research opportunities to the professional staff of CTIL and the officials of the Indian government in the field of international trade and investment law, and would establish collaboration channels between CTIL and CTEI while the mission will play a facilitative role for activities. The government on Tuesday said that India’s permanent mission to the World Trade Organization, the Centre for Trade and Investment Law ( ) of the Indian Institute of Foreign Trade, and the Centre for Trade and Economic Integration of The Graduate Institute, Geneva have signed a tripartite Memorandum of Understanding to begin collaboration towards research and capacity-building in the field of international trade law and policy. The MoU seeks to provide academic and research opportunities to the professional staff of CTIL and the officials of the Indian government in the field of international trade and investment law, and would establish collaboration channels between CTIL and CTEI while the mission will play a facilitative role for activities. “For the next three years, various capacity-building programmes and activities will be carried out under the MoU to enhance the understanding of the government officials and CTIL’s research staff and academics on contemporary issues of international trade and build support for India’s positions on international trade and investment law,” the commerce and industry ministry said in a statement. The MoU aims to enhance India’s capacity in formulating its foreign trade policy and contribute towards ensuring stability in the global trade regime. Besides exchange of faculties and staff for study, research or teaching purposes, there will also be an internship programme for CTEI students at CTIL and submission of India focused projects to CTIL/CTEI TradeLab, a clinical legal education project on trade and investment law.

Source: Economic Times

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India-US Trade Policy Forum has key role in deepening understanding of each other's positions: Former Obama admin official

The US and India are both bystanders with regard to the Regional Comprehensive Economic Partnership (RCEP) and CPTPP, for different reasons. While RCEP is a Chinaled configuration, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is relatively a high standard agreement modelled on the TransPacific Partnership (TPP). The India-US Trade Policy Forum has a key role to play in deepening the understanding of each other's positions in a non-negotiating, non-transactionoriented setting, according to a former top commerce official in the Obama administration, who welcomed the revival ofthe key platform to further enhance bilateral trade ties. During her maiden visit to India last month, United States Trade Representative (USTR) Katherine Tai had her first Trade Policy Forum (TPF) meeting with Commerce Minister Piyush Goyal. The meeting was held after a gap of four y "I see the engagement as positive. It was important that face-to-face ministerial level conversations were held between the two governments," said Arun Kumar, who is at the end of his five-year term as Chairman and CEO of KPMG India, an assignment he took on after completing his tenure as Assistant Secretary of Commerce for Global Markets and Director General of the US and Foreign Commercial Service in the Obama administration. "The Trade Policy Forum met after four years. I had the privilege of participating in the Forum when I served in the Obama administration. I believe it is a valuable platform for constructive discussion. It has a key role to play in deepening understanding of each other's positions in a non-negotiating, non-transaction oriented setting," Kumar told PTI in a recent interview. Kumar, who was in Washington DC on a personal visit, said an important aspect of the talks this time is that it recognised the importance of labour and environmental standards. "Such topics are today seen as essential elements of high quality trade agreements. With regard to more specific issues, progress was made on market access for farm products in both directions, mangoes and pomegranates to the US, and cherries, alfalfa and pork products to India," he said. Responding to a question on the 11-month of the Biden administration, Kumar said the good news is that trade and commerce between the US and India continue to grow. The US is India's largest trade partner today, Kumar noted. Foreign Direct Investment (FDI) from the US into India has been robust and growing. On the government-to-government front, talk of a "mini-deal" receded even as the Biden administration was expectedly focused on domestic priorities, he said. "The visit of Ambassador Katherine Tie should be seen as a step towards creating forward movement on the policy front. The visit follows the meeting of President (Joe) Biden and Prime Minister (Narendra) Modi at the White House in September that, alongside the Quad leaders meeting, focused on security, global health and climate change. "The engagement on trade, coming within two months of the leaders' meeting, is a signal of the importance of the economic partnership," Kumar said. According to Kumar, there are several areas of contention ranging from GSP (Generalised System of Preferences) to issues related to digital trade and data. "Most important, in my view, is to address issues relating to the digital economy as the world moves at an increasing pace towards e-commerce including digital payments. Getting to the right answers will mean much for both economies, through enabling access to larger markets and creating more jobs," he said. GSP is the largest and oldest US trade preference programme, which promotes economic development by eliminating duties on thousands of products when imported from one of 119 designated beneficiary countries and territories. Kumar, in response to a question, suggested greater business-to-business engagement, providing as much priority to export promotion as on policy advances that are government-led. "Such engagement should be energised at the sub-national level, with US state governors and Indian chief ministers taking the lead. We have successful examples in both countries where a dynamic state leader has made demonstrable differences through their initiatives and focused engagement," he said. "Both the US and India have federal structures where the states need to be the engines that drive growth. My recommendation to both the governments would be to prioritise such engagement between states with business leaders working alongside," Kumar added. Observing that the topography of world trade has moved in many ways over the last five years, he said the world will hopefully emerge from the isolationist trends marked by Brexit and the Trump administration's postures. "We are seeing regional multilateral groupings, the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) making progress -- even though unevenly. Modern supply chains snake through multiple countries; increasing the importance of multilateral approaches," Kumar said. "The importance of supply chain resilience was brought into focus by the US- China trade issues and then exacerbated by the pandemic. Over-reliance on a single geographic area is clearly unwise. In addition, as countries and corporations aim to become carbon neutral or carbon negative, the quality and monitoring of supply chains for their environmental impact assume even greater importance," he added. The US and India are both bystanders with regard to the Regional Comprehensive Economic Partnership (RCEP) and CPTPP, for different reasons. While RCEP is a China-led configuration, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is relatively a high standard agreement modelled on the Trans-Pacific Partnership (TPP), Kumar noted. "It has been suggested that both the US and India should actively consider entry into the CPTPP. As a step in that direction, it makes conceptual sense to directionally consider a US-India Free Trade Agreement. The North American Free Trade Agreement (NAFTA) was a stepping stone to the erstwhile TPP and then the CPTPP. NAFTA was of course superseded by the US-Mexico Canada Agreement (USMCA) as NAFTA, after over 25 years, was in need of updating," he "Trade agreements are not easy to do. They are politically very difficult in democracies; while the goal is for the overall economy to benefit, there will be local losers who would need to be assisted," Kumar said. While the Quad is in concept a security oriented grouping, it is encouraging to see it also become a platform for conversation in areas spanning healthcare, technology and financing, he said. Known as the "Quadrilateral Security Dialogue", Quad is a four-nation bloc comprising India, the US, Australia and Japan that strives to keep the critical sea routes in the Indo-Pacific free of any influence. "Studies have shown there is a compelling case for broader economic collaboration among the Quad countries in tariff reduction and market access. Equally, a structure like the CPTPP would be more comprehensive and worthy of consideration to address the goals of a larger free trade area to expand economic growth and jobs in all the countries," Kumar said.

Source: Economic Times

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Eway bill must for inter-district consignment of over ₹50k in MP state

The government of Indian state of Madhya Pradesh has tightened the provisions of e-way bill under Goods and Services Tax (GST) act for 41 items, including all types of fabric and garment. With effect from December 2, it is required to generate e-way bill for interdistrict transport consignment of value of more than ₹50,000 for notified items. This is as per the Notification number FA3-08/2018/1/V (85) issued by the commercial tax department of Government of Madhya Pradesh on December 2. The department has also amended an earlier notification issued on April 24, 2018. The items covered under the purview of e-way bill for textile sector includes all types of fabric with HS codes 5007, 5111 to 5113, 5208 to 5212.5309 to 5311. 5407. 5408, 5512 to 5516, 5802 to 5804,5806, 5809, 5902 to 5903, 5906 to 5908, and 5911. The government of Indian state of Madhya Pradesh has tightened the provisions of e-way bill under Goods and Services Tax (GST) act for 41 items, including all types of fabric and garment. With effect from December 2, it is required to generate e-way bill for interdistrict transport consignment of value of more than ₹50,000 for notified items. This is as per the Notification number FA3-08/2018/1/V (85) issued by the commercial tax department of Government of Madhya Pradesh on December 2. The department has also amended an earlier notification issued on April 24, 2018. The items covered under the purview of e-way bill for textile sector includes all types of fabric with HS codes 5007, 5111 to 5113, 5208 to 5212.5309 to 5311. 5407. 5408, 5512 to 5516, 5802 to 5804,5806, 5809, 5902 to 5903, 5906 to 5908, and 5911.

Source: Fibre 2 Fashion

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India's RIL introduces unique fabric technology R|Elan Kooltex

India’s Reliance Industries Limited (RIL) has introduced a unique fabric technology within R|Elan product portfolio called R|Elan Kooltex, a fabric that enhances the performance of garments by keeping them dry and cool amid various conditions. The company aims to provide advanced textile technologies that also capture the latest style trends. Advanced moisture management property of R|Elan Kooltex helps control temperature and provide cooler feeling to the wearer – be it formal or sports outfit. R|Elan Kooltex keeps the wearer cool and dry through the day ensuring enhanced performance and encouraging heightening physical activities, RIL said in a press release. The pandemic has transformed the consumer mindset with an emphasis on better apparel with embedded performance attributes. Ever evolving consumers are demanding more innovations in their everyday apparel, brands are also introducing new solutions under the performance category. R|Elan’s specially engineered products have emerged as a perfect choice for trendy and performance enhancement seeker consumers. R|Elan Kooltex has inherent moisture management mechanism with its unique structure supporting wicking of sweat through micro-channels. This facilitates rapid moisture management property that the body uses to regulate its temperature. It can be used in major apparel application segments such as denim, knitwear, athleisure and wovens. Dealing with sweat during exercise or hot weather is not a concern anymore. Now, garments have become smarter with R|Elan Kooltex that enhances performance and at the same time provides comfort - day in and out, the release said.

Source: Fibre2 Fashion

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FabIndia seeking as much as ₹3,770 cr in IPO: Report

• FabIndia, whose backers include PremjiInvest, aims to submit its so-called draft red herring prospectus as soon as early next year FabIndia, a retailer of clothing and furniture inspired by traditional Indian crafts, plans to file preliminary documents for an initial public offering of as much as $500 million ( ₹3,770 crore), according to people familiar with the matter. The Delhi-based company, whose backers include PremjiInvest, the family office of Wipro Ltd. founder Azim Premji, aims to submit its so-called draft red herring prospectus as soon as early next year, the people said. Its IPO will largely consist of investors selling existing shares, they said, asking not to be identified as the information is private. FabIndia is considering seeking a valuation of about $2 billion, one of the people said. Deliberations are ongoing and details of the listing such as size and timing could change, the people said. Representatives for FabIndia and PremjiInvest didn’t immediately respond to requests for comment. Indian companies are pushing ahead with their IPO plans even after Paytm’s tumultuous listing -- which saw the firm behind the country’s biggest IPO plunge more than 35% in the first two days of trading -- challenged investors’ exuberance. Star Health and Allied Insurance Co.’s IPO last week, the first large offering since Paytm’s debut, was trimmed after failing to get bids for all the shares on sale. Founded in 1960 by John Bissell to showcase Indian hand-loom textiles to the world, Fabindia sources a large share of its products from villages across India, according to its website. The company connects more than 55,000 rural producers to urban markets, and runs its own school with nearly 500 students, the website shows.

Source: Live Mint

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Cambodia’s Opportunities From Chinese Trade Platforms – OpEd

Cambodia, one of the trusted allies of China, is confronting challenges of economic vulnerability as a result of the Covid-19 pandemic, climate change and limited export destinations. Simultaneously, a rising trend of trade protectionism with new hidden barriers and de-globalization in the global market are impeding the economic and investment sectors of Cambodia. In this context, China’s open door and cooperation policy offers a glimmer of hope for the neighboring countries’ prosperity and development, resuming economic growth at a faster rate. In order to fulfill President Xi Jinping’s pledge, China has taken a number of concrete steps in recent years, including one that lets foreign enterprises greater access to the domestic market and a foreign investment law that ensures a business-friendly environment. At the same time, China has taken new steps to strengthen bilateral and regional cooperation by joining trade blocs such as the RCEP, and the CPTPP, hosting a series of mega trade exhibitions and improving connectivity through the Belt and Road Initiative (BRI). Of them, China Import and Export Exhibition (Canton Fair), China International Import Expo (CIIE), China International Fair for Trade in Services (CIFTIS), China-ASEAN expo, China-South Asia expo, Euro-Asia Economic Forum and Trade Cooperation Expo, Intertextile Shanghai Apparel Fabrics, and China Yangling Agricultural High-tech Fair are all key exhibitions that will undoubtedly be of great significance to developing economies like Cambodia, Bangladesh, Nepal, Bhutan and Pakistan. It is expected that participation in these forums would open vistas of business opportunities and further enhance bilateral relations and co-operation. Beijing has been Cambodia’s one of the major trade partner. According to data, Between January to May 2021, Cambodian exports to China were valued at US$558 million, an increase of 56 percent from the same period in 2020. Despite the fact that of the US$8 billion in bilateral trade in 2020, only US$1 billion was sent from Cambodia. On the other hand, from January to July 2021, the overall import and export volume of China and Bangladesh was US$13 billion, a rise of 58.9% year on year. However, despite the fact that bilateral trade favors China heavily, Cambodia and Bangladesh, Pakistan, Nepal and other South and East Asian countries have enormous potential that has yet to be realized. In the next ten years, China is expected to import a total of $22 trillion worth of goods. Hence, China’s Expo platform will provide a great opportunity for Cambodia and Bangladesh to explore the vast Chinese market and expand exports to bridge the bilateral trade gap and increase revenue. Bangladesh’s major export items, readymade-garments and others including leather goods, jute and jute goods, agricultural products, frozen and live fish, pharmaceutical products, plastic, sports goods, handicrafts, and tea have strong competitive edge in the international market. But its limited exports destination (Mainly USA and EU) might put Bangladesh in a more challenging position due to US’s suspension of GSP and India’s imposition of anti-dumping duty Also to note, there is no guarantee to get into the EU’s GSP+ scheme on expiry of the “Everything but Arms (EBA)” initiative after graduation from the LDC group in 2026. Similarly, Cambodia’s exports are dominated by textile goods, which account for around 70 percent of total exports. Other export products include vehicles, footwear, natural rubber and fish. Cambodia’s main export partners are the United States, Hong Kong, Singapore, Canada, Germany and the UK. The European Union’s (EU) withdrawn the EBA status in 2020 which provided duty-free access to EU markets. Amid such looming economic uncertainty, the good news is that China has provided duty-free access to 97% and 98% of Bangladeshi and Cambodian products respectively. That’s why, the expos are important ways to learn about Chinese consumer preferences and to tap into vast China market. Participating these expos both nations can display and popularize its flagship products and diversify its export destination globally as a large number of buyers, entrepreneurs and companies from Europe, America, Australia, Southeast Asia, Middle East, and Africa attend there. According to officials at the Cambodian Ministry of Commerce, Cambodia and China are committed to increase bilateral commerce to $10 billion by 2023, up from $8 billion last year. To achieve this goal, The National Assembly of Cambodia ratified the bilateral free trade agreement (FTA) with China on September 9, 2021, with the goal of increasing goods trade by lowering and eliminating tariffs and non-tariff obstacles. Trade, tourism, investment, transportation, and agriculture are all included by the Cambodia-China Free Trade Agreement. China will grant duty-free status to 98 percent of Cambodian imports, while Cambodia has agreed to exemptions for up to 90 percent of its Chinese imports. It is noteworthy, Bangladesh and Cambodia are constructing high-quality infrastructure, such as power plants, bridges, highways, railways, and ports, in collaboration with China. Now, both countries need to highlight the vast investment potential and create confidence in a large number of foreign investors through different international platforms organized by China. In short, the expos offer a platform to understand Chinese market and China’s development as well as to make new linkage with consumers, companies, experts and different technologies which could lead product specialization and value addition in order to adapt to the conditions of China, a market with 1.4 billion people and over 400 million middle-income people. In this regard, China can provide technical assistance in framing policy positions and export-development strategy to help Bangladeshi and Cambodian products reach the Chinese market. Like Cambodia and Bangladesh other South and East Asian countries, can also use the expos to promote their brands, build new trade image and expand their business opportunities in China and the worldwide market. Along with economic and commercial gains, such platforms would forge stronger cultural cooperation which will with further enhance the bilateral relations and promote partnership for win-win development.

Source: Eurasia Review

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Sri Lanka: Apparel targets $ 8 b exports by 2025 from 2019’s $ 5.5 b

Industry says investment in supply chains pivotal Advises to capitalise on fractured China-US relationship The country’s apparel sector plans to reach an export target of $ 8 billion by 2025, from the $ 5.5 billion it earned in 2019, through increased investment in the development of local supply chains, industry experts announced yesterday (7). Speaking at the Sri Lanka Economic Summit 2021 organised by the Ceylon Chamber of Commerce (CCC), the experts noted that this increased investment is a vital step for the Sri Lankan textile industry in achieving its export targets. Hirdaramani Group Director Aroon Hirdaramani stated that only around 50% of Sri Lankan garment exports qualified for the Generalised Scheme of PreferencesPlus (GSP+) tax concessions due to the rules of origin criteria which is concerned with whether the clothing is sufficiently originating from the country applying for concessions. Explaining further, he claimed: “The fastest growing segment is active and lounge apparel that requires a lot of materials that are traditionally manufactured in the far east, especially China and Taiwan. Because of that, the initiative by the Government and our industry to encourage more investment in the local fabric supply chain is crucial to our strategy. There has been a proposal to set up a textile zone in Eravur, which will be an environmentally friendly textile zone, with recycling of water and use of sustainable energy. We are working very hard to attract some key fabric players to invest in the zone and to also invest in other fabric mills.” Such investments in local fabric supply chains will improve lead times and improve industry value addition, which is currently around 55%. This strategy will not only improve value addition but reduce foreign exchange (forex) outflows and will help the textile industry qualify for more GSP+ concessions. In order to achieve an integrated supply chain which will be vital for the textile industry going forward, Hirdaramani called for the implementation of a conducive environment for foreign direct investment (FDI) in order to capitalise on the currently fractured relationship between China and the US, which has incentivised customers to move out of China. In order for Sri Lanka to gain a substantial market share as such, obtaining FDI inflows from leading raw materials players from different parts of the world will be pivotal. “There has to be consistency in policy and continued incentives given to these suppliers and many of us would like to partner them,” stated Hirdaramani. Sri Lanka’s Ambassador to the European Union (EU) Grace Asirwatham claimed that over 22% of Sri Lanka’s exports are sent to the EU, which is Sri Lanka’s second-largest export partner. Trade between Sri Lanka and the EU stood at £ 4.6 billion in 2019 with exports accounting for £ 3 billion of which £ 2.5 billion qualified for GSP+ concessions. However, in reality Sri Lanka utilised the GSP+ tariff concessions only for goods amounting to £ 1.6 billion which amounts to a 62.5% utilisation of the GSP+ concession. “There are various reasons for this low utilisation such as that some of our products do not qualify under the rules of origin criteria. Around 57% of Sri Lanka’s GSP+ eligible exports are garments. However, half of the garment exports are not benefiting from the GSP+ zero tariff concession due to the rules of origin criteria and also the double transformation criteria. These are reasons why garments are not enjoying maximum benefits out of GSP+ zero tariffs. We need to encourage more investments in fabric manufacturing and also the required accessories for exports from Sri Lanka to the EU in order to avoid rule of origin-related problems”, stated Asirwatham.

Source: Nation

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China’s export growth slows, imports quicken on demand

China’s exports rose 21.4% to $325.5 billion in November but growth slowed, while imports accelerated in a sign of stronger domestic demand. Export growth decelerated from October’s 27.1% pace, customs data showed Tuesday. Imports surged 31.7% to $253.8 billion, faster than the previous month’s 20.6% rate.

China’s exports have been boosted by foreign demand at a time when other global competitors are hampered by anti-coronavirus controls. Stronger imports suggest consumer and other demand is rebounding after a dip brought on by a government crackdown on debt in the real estate industry. Economic growth sank to an unexpectedly low 4.9% over a year earlier in the three months ended in September. Factory activity also was hampered by power shortages that started in September and the global shortage of semiconductors used in products from cars to smartphones. An earlier survey of manufacturers showed activity rebounded in November as power supplies returned to normal. “Exports and imports beat expectations last month thanks to stronger demand and easing semiconductor shortages,” said Julian Evans-Pritchard of Capital Economics in a report. “In the near-term, the emergence of the Omicron variant is likely to support demand for China’s exports,” said Mr. Evans-Pritchard. “But its impact further ahead is still uncertain.” China’s global trade surplus fell 4.9% to $71.7 billion. Exports to the U.S. rose 5.3% over a year earlier.

Source: The Hindu

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UAE becomes first country to transition to 4-and-half day work week

According to the new schedule, Monday to Thursday the work timings would be from 7.30 am to 3.30 pm, followed by a half day on Friday from 7.30 am to 12.00 pm he United Arab Emirates on Tuesday announced to change its existing five-day workweek to a four-and-a-half day starting January 1, becoming the world's first country to make the employee-friendly transition as part of its efforts to improve productivity and worklife balance. According to the new schedule, Monday to Thursday the work timings would be from 7.30 am to 3.30 pm, followed by a half day on Friday from 7.30 am to 12.00 pm, said the UAE Government Media Office. Saturdays and Sundays are full-day holidays under the new rule. The government said: "Longer weekends to boost productivity and improve work-life balance; starting from 1st of January, 2022." In line with the announcement, the government said all Friday sermons and prayers would be held after 1.15 pm henceforth. Further, employees would be offered flexible working hours and work-from-home options on Friday. The government's move is expected to make it come closer to timings of the US, the UK and Europe, boosting commerce. The new system will first be implemented in all federal government entities; schools, colleges and private institutions are expected to follow suit. The Emirati governments of Dubai and Abu Dhabi have already announced the four-anda-half day workweek. The UAE Government Media Office said the extended weekend comes as part of efforts to boost work-life balance and enhance social wellbeing, while increasing performance to advance the country's economic competitiveness. From an economic perspective, the new working week will better align the Emirates with global markets, reflecting the country's strategic status on the global economic map, the Khaleej Times reported. It will ensure smooth financial, trade and economic transactions with countries that follow a Saturday/Sunday weekend, facilitating stronger international business links and opportunities for thousands of UAE-based and multinational companies, the media office said. The move will ensure smooth financial, trade and economic transactions with countries that follow a Saturday/Sunday weekend, facilitating stronger international business links and opportunities for thousands of UAE-based and multinational companies, the Gulf News reported. The new working week will also bring the UAE's financial sector into closer alignment with global real-time trading and communications-based transactions such as those driving global stock markets, banks and financial institutions. The move is expected to boost not only trading opportunities but also add to the flexible, secure, and enjoyable lifestyle the UAE offers its citizens and residents, the report said.

Source: Business Standard

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