The Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal today called upon fellow Ministers of neighbouring countries to work together to transform the subcontinent. He was addressing the “CII: Partnership Summit -Ministerial Meeting” virtually from New Delhi today. The Minister called for enhancing India’s economic ties with the nations of the Southern African Customs Union which consists of Botswana, Namibia, South Africa, Swaziland and Lesotho. He said that India is looking for FTAs with like-minded nations with transparency and mutual benefit and growth as key pillars. He added that India is also reviewing existing FTAs with ASEAN, Japan, Korea to strengthen them and forging enhanced trade alliances with countries like UAE, EU, UK, Israel, Australia, Canada, Russia, Oman and the GCC. Shri Goyal said that during COVID-19 pandemic, India has emerged as a source of resilience and a trusted Partner and added that we had tried to the best of our ability to meet all our international service commitments. He said that during the course of the pandemic, India had not only become self-sufficient in production of critical medical supplies, PPEs, testing kits, masks etc. but had also supplied these necessities to nations in need. He highlighted India’s one-of-its-kind vaccination drive, through which 1.3 bn doses of vaccine have already been administered. The Minister also assured that India would continue helping nations in need as we intrinsically believed in brotherhood, partnership and the need to work together to solve problems collectively. He added that India had focussed on its neighbourhood during the pandemic and stood ready to support all its friends with vaccines and medical supplies. Pointing out that India’s voice was visible in the G20 declaration this year, which successfully amplified the voice of the developing countries of the world, the Minister said that the world is acknowledging India’s leadership. Shri Goyal said that Indian economy has recovered sharply and added that the rising economic indicators point towards ‘an India shaping up for a growth decade’. The Minister said that India had seen a GDP growth of 8.4% in Q2, high exports, high FDI and large amounts of investments being done by Indian companies in other nations, he urged the Ministers to invite Indian companies to invest in their economies and help create jobs. Shri Goyal said that we need to focus on vital aspects which will impact our future and direction of growth, as we deepen our global engagements. He outlined 6 areas on which India is focussing to build a sustainable, inclusive and resilient ecosystem for future partnerships; Trade Agreements, Investments, India’s strengths as a supply chain alternative, Ease of Doing Business, Innovation and Sustainability. Underscoring India’s initiatives in investment promotion, Shri Goyal said that the Government has been inviting businesses of other countries to seize investment opportunity as ‘India is the place to be’ with its accessibility, choice, openness and opportunities. Listing potential sectors for investments including healthcare, infrastructure, defence, energy, civil aviation, insurance and Technology, the Minister said that various schemes to facilitate trade and investment, including PLI Scheme, Liberalised FDI Policy, etc. were being executed. Shri Goyal said that India’s diverse business landscape, skilled workforce, relatively low labour cost and initiatives to boost infrastructure such as National Infrastructure Pipeline, GatiShakti, National Monetisation Plan would certainly give a fillip to investments and yield good returns. Speaking of India’s quest to improve Ease of Doing Business, he said that initiatives like the National Single Window System and the Industrial Land Bank were helping improve the ease of doing business significantly. Shri Piyush Goyal said that under Prime Minister Shri Narendra Modi, New India is becoming the Global hub for innovation with the third largest Startup ecosystem with 79 Unicorns. He said that Startups have the potential to catalyse India’s integration in Global Value Chains and create global impact. Emphasizing upon India’s initiatives in the direction of Sustainable Development, Shri Goyal said that India will reach its non-fossil energy capacity to 500 GW by 2030 and meet 50% of its energy requirements from Renewable Energy, one of the world’s most ambitious Renewable energy programs. It may be noted that India has pledged to achieve Net Zero Emissions by 2070. The path to economic growth must be intertwined with a commitment to sustainability. The Minister said that as India celebrates ‘Azadi ka Amrit Mahotsav’ to mark 75 years of Independence, it is also preparing a blueprint for next 25 years to determine where India will be at 100 years of independence. He invited Ministers participating to join hands with India to bolster our collaboration in Research and Development, innovation, Intellectual Property Rights etc. Speaking of India’s confident march on the path of rapid growth with ‘Sabka Prayas’ of 130 crore citizens, Shri Goyal said that this is the time to be in India and invest in India! He called upon Ministers from various nations to take forth the agenda of strengthening partnerships between India and the world and re-stabilize and revitalize economies in the post COVID-19 world. Shri Goyal Congratulated CII for their efforts to organise the Partnership Summit and said that the Summit has given us a chance to deliberate and build new partnerships. The summit was attended by H.E. Sheikh Mohammed Bin Hamad Bin Qassim AlAbdullah Al-Thani, Minister of Commerce & Industry, Qatar, H.E. Mr Loknath Sharma, Minister of Economic Affairs, Royal Government of Bhutan, H.E. Mr Gebre Meskel Chala, Minister for Trade & Regional Integration, Federal Democratic Republic of Ethiopia, H.E. Mr Faiyaz Koya, Minister for Commerce, Trade, Tourism & Transport, Fiji, H.E. Mr Fayyaz Ismail, Minister for Economic Development, Maldives, H.E. Mr Soodesh Satkam Callichurn, Minister of Commerce & Consumer Protection, Labour, Human Resource Development and Training, Mauritius H.E. Dr Pwint San, Minister for Commerce, Myanmar, H.E. Mr Bandula Gunawardhana, Minister of Trade, Government of Sri Lanka, H.E. Mr Chhuon Dara, Secretary of State, Ministry of Commerce, Kingdom of Cambodia and H.E. Giancarlo Giorgetti, Minister of Economic Development, Italy.
Source : PIB
India's merchandise exports in April-November 2021 was at $262.46 billion, an increase of 50.71 per cent over $174.15 billion in the same period of the previous financial year. Commerce and Industry Minister Piyush Goyal on Tuesday said India's merchandise export is set to touch an all-time high of $400 billion during the current financial year, driven by sharp uptick in shipments. As per a preliminary trade data, India's merchandise exports in April-November 2021 was at $262.46 billion, an increase of 50.71 per cent over $174.15 billion in the same period of the previous financial year. "Our exports have consistently crossed $30 billion for the last eight months. We are now at about $262 billion of exports versus $290 billion in the 12 months of last year. So, by the ninth month, we would have crossed last year's export, and we hope to do a record export of $400 billion," Goyal said. Speaking at the CII Partnership Summit 2021, he said India's imports too are growing and thus providing opportunities to other countries to expand business and international trade with India. Imports during April-November 2021, grew by 75.39 per cent to $384.44 billion. "India on its part is showing sharp economic recovery and various indicators are pointing to a bounce back in our work in our industry, manufacturing sector, agriculture, technology and also shaping up of preparing a platform for a decade of huge growth," he added. Referring to COVID-19, Goyal said India tried its best to meet all international commitments and supported countries through supply of vaccines, medical supplies, and masks, among others. He assured that India will continue to support friendly nations. "... During the COVID period, we have focused our attention on our neighbourhood on our region to ensure that all our friendly countries get adequate medical supplies," the minister said. Highlighting that India has already administered about 1.3 billion doses to its citizens so far, Goyal stressed that India is ready to support every friendly country with vaccines, or medical supplies. He also invited investments from other countries to India. "India is shaping up for a decade of growth. I would like to invite the world to work with India in a spirit of partnership," he said. Goyal suggested focusing on six areas to build a sustainable, inclusive and resilient ecosystem to further promote partnership with other countries. The six areas include trade agreements, investments, and promoting ease of doing business.
Source: Economic Times
The textile sector in India may witness some upheaval due to implementation of uniformity in GST structure from January 1, 2022. The increase in GST on finished products such as apparel will have greater financial implications for the micro, small and medium enterprises (MSMEs) which have a significant role in that space, according to tax experts. Goods and Services Tax (GST) will be increased by 7 per cent on finished products such as apparel and textiles from the beginning of the next year, according to a notification issued on November 18 by the ministry of finance. GST rate on fabrics will increase to 12 per cent from 5 per cent and that on apparel of any value will go up to 12 per cent, compared to earlier when pieces priced up to ₹1,000 were subject to 5 per cent GST. Industry experts feel that the uniform rate will lead to smaller players being pushed into the unorganised sector, as it will make harder for the sector to keep afloat. “It’s very clear that MSME sector dominates in the Indian textile industry which provides jobs and business opportunity to lakhs of people. Like in other sectors, now the government policy is pushing MSMEs into trouble in textile industry also,” they aver. The GST hike will create greater stress on the working capital requirements of the industry, especially the MSMEs. The increase in tax rate could put additional financial burden on the MSME section of the industry, which is already under stress due to slower sales and higher input costs. It may also lead to increase in cost for end consumers. However, government claims that the decision to bring uniformity in tax rates across the supply chain should help the industry in the long run by releasing the blocked working capital in form of accumulated Input Tax Credit (ITC). The objective behind the proposed increase is to correct the anomalies associated with the refund of ITC on account of inverted duty structure. Inverted duty structure means higher taxes on input and lower tax on output or final product. In simple terms, businesses face higher GST rates on raw materials than on finished products. The GST Council has addressed the issue of inverted duty structure for many industries. Upstream industry has same echo as it is satisfied with the government’s decision. Sanjay Garg, executive director of Punjab based spinning mills Longowalia Yarns Ltd said that it was long pending demand from the industry. Uniformity in tax structure will bring better ecosystem in the industry. Garg, who is also the president of Northern India Textile Mills’ Association (NITMA), suggests that downstream fabrics and apparel industry needs to develop efficiency in the current scenario. “Indian textile industry needs to gear up to face global competition, therefore the entire value chain has to increase efficiency.” But MSMEs are not comfortable with the change in the GST structure and are demanding withdrawal of the hike in GST rate. Recently, the Kerala Garments and Textile Dealers Welfare Association (KTGA) decided to put strong pressure on the Central Government towards this demand. The hike would have a big impact on the business of small and medium-sized businesses, which was affected when the pandemic struck last year. Earlier, Confederation of All India Traders (CAIT) also made the same demand.
Source: Fibre 2 Fashion
India's merchandise exports jumped 27.16 per cent to USD 30.04 billion in November on the back of good performance by sectors like petroleum products, engineering goods and electronic items India's merchandise exports jumped 27.16 per cent to $30.04 billion in November on the back of good performance by sectors like petroleum products, engineering goods and electronic items, official data showed on Tuesday. The exports stood at $23.62 billion in November 2020. Imports in November were at $52.94 billion, showing an increase of 56.58 per cent over inbound shipments of $33.81 billion in the year-ago month. Gold imports rose nearly 40 per cent to $4.22 billion as against 3.02 billion in November 2020. As per the data released by the Ministry of Commerce and Industry, November trade deficit stood at $22.91 billion. This compares with $10.19 billion in November 2020. Merchandise exports for April-November 2021 were at $263.57 billion, up 51.34 per cent over $174.16 billion during the corresponding period last year. Imports during the period totalled $384.34 billion, an increase of 74.84 per cent over April-November 2020 when it was $219.82 billion. "The merchandise trade balance for April-November 2021 was estimated at $(-) 120.76 billion as against $(-) 45.66 billion in April-November 2020, which is a decline of (-) 164.49 per cent," said a release issued by the ministry. Exports of petroleum products during November climbed 154.22 per cent at $3.95 billion on a yearly basis. Outward shipments of engineering goods rose to nearly $8 billion, up about 37 per cent over the same month last year. As per the data, exports of electronic goods rose from $1.12 billion in November last to $1.45 billion during the month under review, up 29.83 per cent. Shipments of organic and inorganic chemicals jumped 32.54 per cent to $2.24 billion. On the imports front, inbound shipments of 'coal, coke and briquettes' stood at $3.57 billion, rising 135.81 per cent over November 2020. Imports of 'petroleum, crude and products' too surged 132.43 per cent at $14.67 billion. The import of vegetable oil shot up by 78.82 per cent to $1.75 billion. The release further said the estimated value of services export for November 2021 was $20.33 billion, up 16.88 per cent over the same month last year ($17.39 billion). The estimated value of services import was $11.81 billion, a growth of 20.71 per cent over November 2020 ($9.78 billion). India's overall exports (merchandise and services) in November were estimated to be $50.36 billion, exhibiting a growth of 22.80 per cent over the same period last year. Non-petroleum and non-gems and jewellery exports in November rose 22.26 per cent to $23.68 billion. Non-petroleum, non-gems and jewellery (gold, silver and precious metals) imports were $31.82 billion, a growth of 40.64 per cent from $22.63 billion in November 2020.
Source: Business Standard
The Budget for next fiscal is to be presented on February 1, in the backdrop of a nascent recovery of the economy, robustness in tax receipts and the continuing need for government spending to bolster the revival process. Finance minister Nirmala Sitharaman will hold the first of a series of customary preBudget consultations with various stakeholder groups on Wednesday when she meets experts from the farm and agro-processing sector. This will be the first such high-level meeting between leaders and experts from the farm sector and the finance minister since the repeal of the three contentious farm laws late last month. Farmer leaders are now demanding that the minimum support price-based procurement drive be legalised and its coverage substantially widened. The Budget for next fiscal is to be presented on February 1, in the backdrop of a nascent recovery of the economy, robustness in tax receipts and the continuing need for government spending to bolster the revival process. It’s expected to address critical issues of demand generation, job creation and putting the economy on a sustained path of 8%- plus growth. The various pre-Budget stakeholder meetings will be held virtually, the finance ministry said in a tweet. The exercise comes amid fresh concerns about a new Covid strain, although the impact of the Omicron variety is expected to be less severe amid a surge in the vaccination drive. During the course of her interactions with various stakeholders across sectors in the coming weeks, Sitharaman is expected to seek inputs for reviving private consumption, fixing supply chain bottlenecks and stirring growth impulses that were damaged by the outbreak the pandemic last year. While various agencies have expected real growth to be in the range of 8% to 10.5% in FY22, sustaining this momentum would be a challenge in the next fiscal as the conducive base effect diminishes. Chief economic advisor KV Subramanian expected growth to be in the 6.5-7% range in the next fiscal and about 7% after that. The focus will also be on the path of fiscal prudence after the pandemic hit the consolidation road map last fiscal. While the Centre’s fiscal deficit for FY22 is budgeted at 6.8% of GDP, some analysts expect the Centre to rein in the deficit within the target even with a clutch of additional expenditure commitments that have come up due to enhanced food and fertiliser subsidy bill and enhanced outlay to clear dues owed to exporters. The Centre’s fiscal deficit widened to a very high level of 9.2% of GDP in FY21 due to Covid-related additional spending and revenue crunch. The announced plan is to reduce the deficit to below 4.5% of GDP by FY26. The Budget will give clarity on how and when the FRBM-mandated level of 3% fiscal deficit will be achieved. Key secretaries of the finance ministry have already held several rounds of talks with stakeholders cutting across sectors. Both economic affairs and revenue secretaries have held talks with industry bodies, while the finance secretary concluded pre-budget meetings with various government departments on November 12 to take inputs for finalising their revised estimate for 2021-22 and budget estimate for 2022-23. Some industry bodies have already suggested that the cut-off date be extended by two years for commencing manufacturing to avail concessional corporate tax rate of 15% and tax-free infrastructure bonds be reintroduced. Some others have suggested that the personal income tax rates be capped at 15% with no exemptions to bolster the tax base. India’s real gross domestic product (GDP), which grew 8.4% in the September quarter and even exceeded the pre-pandemic output level, will likely gain further traction in the remaining quarters of this fiscal, a finance ministry report said on Saturday. The report forecast an annual growth rate of 7%-plus for India until the end of this decade “on the back of a series of second generation and more nuanced structural reforms in the pandemic years of 2020 and 2021”.
Source: Financial Express
He said India was also going to relaunch the FTA with Israel by March-April next year. The 2022-23 Budget to be presented by Finance Minister Nirmala Sitharaman on February 1 will focus a lot more on trade-related packages and may propose to amend the Special Economic Zone (SEZ) Act, said Commerce Secretary B V R Subrahmanyam on Tuesday. “There will be a lot of trade-related packages coming up in the Budget. For the first time, you will find specific paras addressing us (the commerce ministry). The old history of us wanting something and the finance ministry not doing it is no longer there. We have brought harmony there,” said Subrahmanyam. He was speaking at a session of the Confederation of Indian Industry Partnership Summit. Hinting at an announcement on the simplification of SEZs, Subrahmanyam said the commerce ministry would be rewriting the SEZ law. “If there is a unit in an SEZ facing the domestic market, it will behave like a domestic tariff area entity. If it is facing the international market, it will behave like an SEZ unit. It will still be one unit. That’s going to be a breakthrough once we get it through the next session of Parliament,” he said. The commerce and finance ministries are often at loggerheads over the SEZ policy on tax incentives to SEZ units and allowing them to sell in the domestic tariff area. An expert committee led by Bharat Forge Chairman Baba Kalyani, that was formed in 2018 to review the SEZ policy, has already submitted its report, recommending significant changes in the SEZ policy, including the formulation of separate rules and procedures for manufacturing and service SEZs. Subrahmanyam also cautioned the Indian industry, telling it to brace for increased competition and think global since India was going to sign a host of “very deep” free trade agreements (FTAs) to integrate the Indian economy with advanced economies, such as the UK, Australia, and the European Union (EU). “FTAs can’t be one way. Everybody wants market access. I want the industry to keep that in mind. To make FTAs realistic and compliant with World Trade Organization norms, we need to have at least 90 per cent of trade covered under substantial liberalisation. We can’t be cherry-picking. It will be a deep integration of economies. There will be some sensitive lines, of course. In the Indian context, dairy, for example, is a sensitive area. By and large, these are going to be very deep FTAs,” he added. Subrahmanyam said India would be concluding an FTA with the United Arab Emirates (UAE) any day. “I am saying any day, not weeks. Launched on September 22, we will have the signing sometime in January,” he added. He said India was also going to relaunch the FTA with Israel by March-April next year. “We are negotiating an FTA with Australia. We will have an interim in place by the end of this month and a full agreement by next year. We are entering into an agreement with the UK. We will have an interim in place by March-April and a final one by December next year. The EU FTA, which had been stalled for seven years, will hopefully be done by mid2023. It is a more complex dynamic, given there are 27 countries. We are in talks with Canada and by the end of next year, we should have a full-fledged agreement,” he added.
Source: Business Standard
'In my view, registration should not be necessary at all where MEIS is directly transmitted by the DGFT to the Customs', says the author For registering the MEIS scrips issued on-line we are required to take a print out of MEIS and send it to the CHA and also incur some costs. Is there any way to register such MEIS scrips online? The CBEC had removed the requirement for pre-registration verification of the genuineness of MEIS/SEIS for the scrips transmitted directly from the DGFT portal to the Customs portal. However, the requirement of registration itself has not been withdrawn. So, what the CHAs do is to submit a copy of the print out of MEIS and seek registration. The Customs immediately register.
Source: Business Standard
Exporters of handloom textile made-ups from Karur district are disappointed over the cancellation of the annual international trade fair, Heimtextil 2022, which was to be held from January 11-14 in Frankfurt in Germany. Heimtextil, a major trade fair of international relevance, has been cancelled for the second consecutive year due to the pandemic. “Against the background of the worsening pandemic situation in Germany over the past two weeks and the associated restrictions, Heimtextil, scheduled to take place in the second week of January, is cancelled,” an official announcement said. Messe Frankfurt, the organiser of the fair, has indicated that it was working with the industry to determine whether the fair could be held in the summer of 2022. Retailers, wholesalers, designers, furniture and bedding stores, interior decorators, interior architects, architects, hotel outfitters and many other decision makers come to Heimtextil every year. A range of product samples right from decorative and furniture fabrics to textiles for the bedroom and bathroom and table are displayed at the expo. The exhibition also gives an overview of the latest trends in the industry and popular designs. Every year, about 40 exporters from Karur, which is famous for its handloom made-ups such as table cloths, kitchen towels, bedsheets, curtains and other home furnishing products, travel to the expo and set up stalls to attract buyers and secure orders. It is disappointing. There was lot of expectations (on getting good business) as the fair was to be held after a gap of two years. Sample developments were almost over and we had made payments to contractors for doing the interiors in our stalls,” observed P. Gopalakrishnan, president, Karur Textile Manufacturers Exporters’ Association. Those who had planned to participate may have suffer some loses by way of payments to contractors, flight and hotel bookings etc. Though the organisers are now exploring the possibility of holding it in summer, but June is holiday time in Europe, he said wondering whether such a move would be successful. However, exporters say that all is not lost due to the cancellation of the fair. “In general it is big opportunity to get business. Normally, some of the participants from Karur get orders for up to 40% of their annual business. But the fair was cancelled in 2021 too, yet we managed to get good business. We will have to wait and see this year,” Mr. Gopalakrishnan said. Nevertheless, attending the fair in person, especially in the absence of China, would have helped participants to get better business, he added. Some of the participants were sore that the fair has been cancelled at the last minute. Many had booked tickets, made the registrations and other arrangements may stand to loose some money individually, pointed out Arasu Sethupathi, Joint Secretary of the association. “The cancellation of the fair was disappointing in particular because some buyers who have been buying only from China till now, had decided not be fully dependent on the country and were looking to give orders to manufacturers from countries such as India, Pakistan and Bangladesh. We were hoping to garner some orders from such buyers. It would have been an big opportunity for India and we may miss them,” Mr.Sethupathi said. On the other hand, some also feel that the cancellation of the fair may be a blessing in disguise in the wake of the Omicron scare. “If the pandemic situation were to turn worse there and buyers failed to turn up, we could be faced with heavier losses,” an exporter observed.
Source: The Hindu
Indorama India Private Limited (formerly called Indorama Industries Limited), which is engaged in the production and marketing of INVIYA brand of spandex since 2012, has solemnised the ground-breaking ceremony of its third plant (termed as P-3) at its existing site at Baddi in Himachal Pradesh recently. The new plant will augment the spandex capacity of Indorama to 75 MT/day by the end of 2022, the company said in a media release. INVIYA is well positioned to provide functional solutions to high end garments, accessories like elastics, tapes etc and hygiene products like diapers. Incidentally, Indorama is the only company in Indian subcontinent to produce elastomeric yarns meant for these applications (elastics/narrow fabrics/diapers). INVIYA spandex is available in denier ranging from 10 to 1680 in different lustres to address the consumer needs across various segments. Apart from these, various cross functional teams of INVIYA work closely with customers to work out solutions to meet various requirements. Spandex market demand is pegged at around 45,000 MTs in India and with a push from the government, this is slated to grow at CAGR of around 14-15 per cent. Apart from meeting demand in domestic markets, INVIYA is exported to various countries like Bangladesh, Turkey and Latin American regions for various applications in textile/clothing segment. Indorama India Private Limited is part of Indorama Corporation, which is headquartered in Singapore.
Source: Fibre 2 Fashion
The country will soon have its natural dye/ natural dyed product mark with the Bureau of Indian Standards (BIS) setting up a committee to formulate the certification protocol for standardising the production process of natural dyes in the country. The committee is headed by Lucknow-based manufacturer of dyes and natural products Yawer Ali Shah, who has been named convener f the panel. Shah told TOI the process involves development of a natural dye mark on the lines of ECO mark, a certification developed by BIS to label environment friendly products. “The demand for natural dyes has increased tremendously over the past three decades. This has created need for standardisation as there is excess of players and products in the market. BIS recognised the need and set up a committee for this,” Shah said. The committee constituted in September includes Dr Henriques Bosco, Dr PS Vankar, Dr MS Parmar, Dr Sumit Gupta and Dr Sujata Saxena as members and is scheduled to submit its draft recommendation early next year. The official communique in this regard said: “The scheme should be so designed to cover both the ‘Natural Dye Powder’ as well as for ‘textile materials or products dyed with natural dyes’.” “Like the silk mark or Ecomark, the natural dyes mark will also be an insignia of authenticity. The BIS wants us to develop it on the lines of ECO mark,” he added. The ECO mark covers various product categories like soaps and detergents, paints, food items, lubricating oils, packing/packaging materials, architectural paints and powder coatings, batteries, electrical and electronic goods, food additives, wood substitutes, cosmetics, aerosols and propellants, plastic products, textiles, fire extinguisher, leather and coir & coir products. The presence of ECO logo along with ISI Mark on a product indicates that it meets certain environmental criteria along with the quality requirements as specified in the relevant Indian Standard. Shah said the natural dyes mark will cover a range of items that use natural dyes like fabrics, colours, inks, denims etc. He also urged people to use natural-dyed products as besides being eco-friendly (as they consume less water and energy), they also help in eliminating waste and creating employment. Citing example from his own firm which exports products to international brands, he said: “One kilogramme peel of pomegranate provides 300 gram of raw material for extracting yellow colour.
Source: Times of India
Agreement includes the launch of new consumer e-commerce and FinTech platforms and measures to streamline customs operations and establish new inland logistics network Dubai's DP World, one of the largest port operators globally, signed a framework agreement with Uzbekistan to expand its presence in the Central Asian country in a move that will boost the flow of global trade and help to develop digital infrastructure. The deal covers areas of economic co-operation, including the launch of new consumer ecommerce and FinTech platforms in Uzbekistan, as well as measures to streamline customs operations and establish a new inland logistics network that will support the expansion of the Navoi Free Economic Zone and the cargo terminal at Navoi International Airport. The agreement is also expected to expand Uzbekistan’s trade network and position DP World as a strategic partner in boosting international trade. The agreement was signed by DP World chairman Sultan bin Sulayem and Shukhrat Vafaev, Uzbekistan's Deputy Minister of Investments and Foreign Trade, in the presence of Sardor Umurzakov, Uzbekistan's Deputy Prime Minister and Minister of Investments and Foreign Trade. “DP World is committed to being a strategic partner for Uzbekistan enabling trade. Our agreements signed today will help design and shape a world-class trading ecosystem in the country. The Uzbekistan economy continues to grow at a strong pace, making it an attractive destination for long-term investments," Mr Bin Sulayem said on Tuesday. The revival and further development of trade, which was battered by Covid-19, is considered to be a key pillar for the global economy in the post-coronavirus era. Global trade hit a record high in the third quarter of 2021 and is expected to rise 23 per cent to $28 trillion for the full year, according to a report by the UN Conference on Trade and Development in November. DP World in October reported an 8.1 per cent increase in third-quarter gross container shipping volumes, beating the industry average of 6.4 per cent, with all the regions it operates in reporting growth. The port operator has also forged several partnerships in the final quarter of 2021. On Monday, the port operator signed a final agreement with the Democratic Republic of the Congo to develop a deep sea port at Banana, along the country’s 37-kilometre coastline on the Atlantic Ocean. This will be the DRC's first deepwater port. Last month, it signed an agreement worth $7.5 billion with the Indonesia Investment Authority, the South-East Asian country's wealth fund, to develop ports over a period of up to 30 years. In October, DP World teamed up with UK-based development finance institution and impact investor CDC Group to create a $1.7bn investment platform for Africa, which will invest in origin and destination ports, inland container depots, economic zones and other logistics across the continent to boost trade. As part of the agreement with Uzbekistan, DP World will establish a road-and-rail-linked logistics network across all major distribution and consumption centres in and around the capital Tashkent. It will also develop a 100-hectare road-and-rail-linked greenfield site in Uzbekistan’s recently established Special Economic Zones. The agreement will result in DP World becoming a strategic partner for the growing Navoi FEZ and the connectivity of the Navoi air cargo terminal in south-west Uzbekistan, linking it to major international centres. “Uzbekistan is keen to co-operate with DP World on facilitating the development of logistics sector of the country through implementation of [a] portfolio of projects in key regions of the country," Mr Umurzakov said. "The combination of DP World’s experience and capacity with Uzbekistan’s unique geographical location and favourable business environment will boost regional trade and contribute to further improvement of regional connectivity." The World Bank predicts the economy of Uzbekistan – Central Asia’s largest consumer market and a leading exporter of cotton, textile, automotive and fruit and vegetable products – will grow 5.6 per cent in 2022.
Source: The National News
BTMA president Mohammad Ali Khokon made the announcements at a meeting with top officials of the NBR The Bangladesh Textile Mills Association (BTMA) on Tuesday said it has no objection to yarn import through Bhomra and Sonamasjid land ports, expressing solidarity with a demand by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). The announcement by the organisation of textile owners' marks a significant change from its previous position on the issue, when it repeatedly objected to importing the essential raw material for textile production through any other ports except Benapole land port. However, leaders of organisations demanded that the ports need to install measuring machines provided by them and employ skilled manpower to ensure the right yarn is being imported. Meanwhile, rejecting a separate demand by BGMEA leaders, the BTMA said no partial import can be allowed against the same letter of credit (LC) and all yarns have to be imported at the same time. BTMA president Mohammad Ali Khokon made the announcements at a meeting with top officials of the National Bureau of Revenue (NBR) at NBR's building in the capital's Segunbagicha on Tuesday. The meeting also demanded the removal of other bottlenecks in textile materials import, including revoking the condition of obtaining a bond license to import raw materials such as cotton, man-made fibre and other yarns. It also called for measures to prevent misuse of power by customs officials in issuing HS code (product identification number) on import of machine spare parts. However, no decision has been taken by the NBR on these issues."We have heard various proposals from BTMA but no decision has been taken," a senior NBR official, who attended the meeting told The Business Standard on condition of anonymity, NBR Chairman Abu Hena Md Rahmatul Muneem presided over the function. The price of yarn has been rising in the country for the last 10 months. To make it easier to import yarn, BGMEA has been demanding for yarn to be imported through other ports alongside Benapole, and that partial import is allowed against the same LC. But BTMA has been opposing these demands till now, arguing this could lead to widespread irregularities and damage local textile mills
Source: TBS News
China's economically important Zhejiang province wrestled on Tuesday with a Covid outbreak that has left half a million people quarantined and some districts under business shutdown. Zhejiang, a major industrial and export hub on the country's east coast, reported 44 of China's 51 domestically transmitted coronavirus cases on Tuesday, bringing the total since late last week to nearly 200. Although Chinese case counts are miniscule compared to other major economies, officials in Zhejiang have employed the country's signature mass testing blitz and targeted lockdowns with concern high over fresh outbreaks as Beijing gears up to host the Winter Olympics in February. More than 540,000 people have been put in quarantine in Zhejiang, officials have said. The problems in the province come as Chinese media reported on Monday that the country's first case of the fast-spreading Omicron variant had been identified in the northern port city of Tianjin. In recent days, districts in Ningbo -- the province's main port -- and the nearby city of Shaoxing said they also were suspending some business operations. Ningbo's Zhenhai district, a large petrochemical base, said all enterprises not related to virus control or deemed crucial to the public would be shut down and that petrochemical producers would have to reduce output. A district in Shaoxing had ordered business to halt last Thursday. Several publicly listed companies in Hangzhou, the province's capital and largest city, have also released statements saying they had suspended production. Data from flight tracker VariFlight on Tuesday showed that hundreds of flights out of Hangzhou had been cancelled. Zhejiang is one of China's leading provinces in terms of GDP and exports. "The shutdown of Zhejiang factories will impact on the supply chains of various sectors, especially fibre and textiles," Zhaopeng Xing, senior China strategist at ANZ Research, told AFP. He expects the flare-up could take up to 40 days to subside, with manufacturers possibly resuming work only after the Lunar New Year holiday in February. "The impact will be similar to what happened in September and October, when power rationing was implemented," Xing said. The world's second-largest economy battled weeks of widespread power cuts -- blamed on strict emissions targets and record coal prices -- before stabilising the situation last month. Xing said he expected Zhejiang's Covid woes could have a "mild impact" on Chinese GDP.
Source: Live Mint
More than 5,000 textile dealers in Kwara State have said that they have been driven out of business by the effect of the COVID-19 pandemic. Speaking with journalists on the sideline of N50 million fundraising themed, “Uplifting the less privileged members” to save indigent members from poverty, state chairman of the Textile Dealers Association of Nigeria (KWSTDAN), Alhaji Abdulafeez Laaro, said that, “The reason for the event is to assist some of our indigent members that were badly hit by the COVID-19 pandemic. “The pandemic led to the global economic meltdown. The meltdown affected businesses all over. In the aftermath of the COVID-19, no fewer than 5,000 registered members of our association were severely affected. Many of our members are currently out of business as a result of the adverse effect of the pandemic on our business. “Before this time the association decided to be giving soft loans to cushion the effect on the less privileged members of the association. We have been doing that, but with the current hike in the price of everything in the country such loans might not suffice. “The essence of the programme is to solicit support from well-to-do members of the association and public-spirited members of the society to raise funds for our members that have been driven out of business because of the COVID-19 pandemic. “We hope to raise a sum of N50 million and the funds would be used to assist members who are out or almost out of business. Duly registered members of the association that were affected in Kwara central alone is well above 5,000. our membership cuts across other senatorial districts of the state.” He urged the beneficiaries to make judicious use of the opportunity. The state Commissioner for Enterprise, Hajia Arinola Lawal represented by Director, Commerce in the ministry, Ibrahim Sani, had put in place windows of opportunity to assist traders in the state. The commissioner revealed that the government recently resuscitated the bureau of micro, small and medium enterprises (MSME). “KWSTDAN is one of the formidable associations we have in the state. The association has been in partnership with the ministry for the economic development of the state. “Successive governments have been assisting the association. And this government will continue to assist members of the association. There are so many government’s programmes that they have been part of. Others are still coming. We the Owo isoowo for petty traders and also the state bureau of MSME has just been resuscitated. All these are windows of assisting the members of the association to promote their trade.”
Source: Tribune Onlineng
