To address the needs of Indian exporters, the Directorate General of Trade Remedies (DGTR) besides conducting investigations against dumped and subsidised imports from other countries, also protects the interests of Indian exporters in investigations conducted by other countries against Indian exports through its Trade Defence Wing (TDW). The TDW was established in the year 2016, and has been the nodal point for extending support and defending the interests of Indian exporters in investigations undertaken by other countries against India. The TDW coordinates with various departments of the Central as well as the State Governments and presents India’s defence. Consultations with investigating authorities of other countries, particularly USA and EU authorities, are regularly held to explain, reiterate and drive home the standpoint of the Indian government. The Trade Defence Wing (TDW) has been constantly striving to ensure that minimal or no trade remedial measure is applied on Indian goods by other countries. TDW operations have recently gained momentum. The sustained efforts of the Trade Defence Wing are reflected in the fact that in majority of the preliminary and final findings issued during April 2021 – December 2021, by other investigating authorities on CVD Investigations/ Reviews conducted on the exports from India, minimal duty rates ranging from 3-6% have only been imposed. In Counter Vailing Duty (CVD) investigation against export of stainless-steel cold rolled products by European Commission (EC), active intervention of TDW through consultation resulted in imposition of duty margin as low as 0.45% by the European Commission. In CVD Administrative review conducted by USA for the year 2019 against export of Polyethylene Terephthalate film, sheet & strip from India, a preliminary duty of 2.82% only was imposed as against 11.67% imposed earlier for the year 2018.
Source:PIB
Exporters have demanded support measures, including enhanced allocations for RoDTEP scheme, high import duty on plastic finished goods, setting up of an Indian shipping line and reinstating exemption for duty free import of critical inputs for leather products, in the forthcoming Budget to promote growth of the country's outbound shipments. They have also suggested fiscal incentives to address logistics challenges, and reduction of income tax on partnerships and LLP's to support MSME players. The Federation of Indian Export Organisations (FIEO) said that there is a need to encourage large Indian entities to build an Indian shipping line of global repute as it would help reduce dependence on foreign shipping lines. It said that the export sector is facing major issues due to rising freight cost and its dependence on global shipping companies. "Overseas marketing is a big challenge for exporters, more so for MSMEs, as it entails a very high cost. We need to bring the Double Tax Deduction Scheme for Internationalizations to allow exporters to deduct against their taxable income. A ceiling of USD 5 lakh may be put under the scheme so that the investment and tax deduction are limited," FIEO Director General Ajay Sahai said. Mumbai-based exporter and Chairman NSE -4.69 % Sharda Kumar Saraf said that Reimbursement of Duties & Taxes on Export production (RoDTEP) is one of the most important tools to support export marketing, but its present budget of about Rs 40,000 crore, is inadequate. We hope the finance minister will take cognizance of this fact and provide a suitable budget for RoDTEP," Saraf said. Plastics Export Promotion Council of India (Plexconcil) Chairman Arvind Goenka suggested that the import duty on plastic finished goods should be atleast 5 per cent higher than polymer raw materials. "For instance, import duty on PVC Resin is 10 per cent and that on value added PVC goods is also 10 per cent thereby there is no incentive to boost domestic production," Goenka said. Council for Leather Exports (CLE) Chairman Sanjay Leekha recommended reinstatement of the exemption for duty free import of critical inputs for leather garments and footwear; and extension of the basic customs duty exemption for import of lining and interlining materials. These measures would promote value addition within the country and make the products competitive in the global markets as compared to the goods of competing countries, besides boosting exports, Leekha said. He has also recommended reinstatement of basic customs duty on import of wet blue, crust and finished leathers as the exemption was removed last year. Sharing a similar view, Chairman of Farida Group Rafeeq Ahmed said that steps for the labour intensive sector - leather in the budget will help in creating more jobs and pushing exports. "The government should consider removing import duty on finished leather. Measures should be announced for setting up micro parks for the sector," Ahmed said. Hand Tools Association President S C Ralhan said that the government should announce some provisions to promote container manufacturing in India. "Budget should also consider extending income tax concessions forMSME exporters," Ralhan said. During AprilDecember 2021-22, exports rose 49.66 per cent to USD 301.38 billion.
Source: Economic Times
The Telangana government, which has been unhappy with the Central government for doing "injustice" to the state in successive budgets, has put forward the sector-wise list of demands ahead of presentation of the Union Budget on February 1. The state has reiterated many old demands. Including Hyderabad in the proposed defence industrial production corridor, funds for Hyderabad Pharma City, setting up of first National Design Centre (NDC), budgetary support for development of Hyderabad-Warangal, Hyderabad-Nagpur, HyderabadBengaluru, and Hyderabad-Vijayawada industrial corridors are on the wish list of Telangana for Union Budget 2022-23. Funds for Kakatiya Mega Textile Park (KMTP), Mass Rapid Transit System (MRTS), Warangal Metro-Neo project, sanction of Mega Powerloom Cluster at Sircilla, approval of pending and new railway projects also figure on the list of demands from the state. The Telangana government, which has been unhappy with the Central government for doing "injustice" to the state in successive budgets, has put forward the sector-wise list of demands ahead of presentation of the Union Budget on February 1. The state has reiterated many old demands. Industry, Commerce, Information Technology, Municipal Administration, and Urban Development Minister K.T. Rama Rao has dashed off series of letters to Union Finance minister Nirmala Sitharaman in last few days to seek liberal Central assistance for various projects. KTR, as the state minister is popularly known, sought budgetary support of over 14,000 crore for key industrial projects like Hyderabad-Bengaluru, Hyderabad-Vijayawada, Hyderabad-Warangal and Hyderabad-Nagpur industrial corridors as well as the Hyderabad Pharma City project that has bagged the National Investment and Manufacturing Zone (NIMZ) status. He also sought sanction of additional nodes at Mancherial under the Hyderabad-Nagpur corridor, Huzurabad as part of the Hyderabad-Vijayawada corridor and Jadcherla- Gadwal-Kothaguda node under the Hyderabad-Bengaluru corridor, and provision of Rs 5,000 crore for these three nodes. For the approved nodes at Hyderabad Pharma City and NIMZ Zaheerabad under the Hyderabad-Warangal and Hyderabad-Nagpur corridors, that the Centre has agreed to fund, the state has asked for a budgetary provision of Rs 2,000 crore each. KTR also demanded release of grant in aid of over Rs 5,000 crore for the master planning as well as development of internal, external and technical infrastructure for the establishment of Hyderabad Pharma City as a NIMZ in Rangareddy district. He also made a pitch to Sitharaman to include Hyderabad in the proposed defence industrial production corridor He also wrote a letter to Union Ministers Sitaraman and Piyush Goel seeking support for various works taken up in the handloom and textiles sector in the state. The minister had earlier written letters to the Centre on the same issues, several times. He requested for sanction of Rs 897 crore for taking up infrastructure works at the Kakatiya Mega Textile Park in Warangal. He also requested early approval of the project. He also urged the Centre to sanction Mega Powerloom Cluster at Sircilla and sanction an amount of Rs 49.84 crore from out of the projected outlay of Rs 993.65 crore. Earlier, KTR also wrote a letter to Sitharaman urging her to allocate Rs 8,000 crore for various works taken up under the Municipal Administration and Urban Development Department in the state, including the Mass Rapid Transit systems (MRTS). B. Vinod Kumar, Vice Chairman, Telangana State Planning Board, has also written to Railway Minister Ashwini Vaishnaw drawing his attention to the injustice to Telangana in implementing existing projects as well as granting new railway projects. "In the past seven years, the Union government has never prioritized the needs of the state, in any of its railway budgets so far," he wrote. He also pointed out that joint venture railway projects with the state government, taken up with much enthusiasm, has not moved much and there are also other projects where detailed surveys were done but works did not begin. The former MP wrote that since the formation of the new state, the KothapalliManoharabad railway line is the only project that has been taken off and is being implemented with major support from Telangana. As many as 11 high potential projects were shelved by the Railway Board, he said, also listing 25 high priority projects whose survey reports were submitted years ago to the Railway Board but a decision is still awaited. "How many more years will this step-motherly treatment continue? Why must the states beg for their rightful share of resources every single time," he asked. The Telangana Rashtra Samithi (TRS) government has been upset with the Centre for ignoring its long pending demand to grant national project status to a major irrigation project of the state, for not extending financial assistance for state's flagship schemes for revivals of irrigation tanks and to ensure supply of drinking water to every household. The state government is also unhappy over the Centre not fulfilling the commitments made to Telangana in Andhra Pradesh Reorganisation Act 2014 and also shelving projects like Information Technology and Investment Region (ITIR) in Hyderabad and railway coach factory in Kazipet. Telangana, which according to the Reserve Bank of India (RBI) is fourth largest contributor to the country's Gross Domestic Product (GDP), is also demanding that the Centre should support it for being a progressive state. KTR raised this point last week during PM Gati Shakti South Zone virtual conference which was chaired by Union Road Transport and Highways Minister Nitin Gadkari. The state minister despite being a performing state, Telangana is not getting enough support from the Centre, though performing states need to be incentivised. He highlighted the achievements of TelanganaA in the areas of manufacturing, pharmaceuticals, handlooms & textiles, power, coal and other sectors. The minister also noted that 35 per cent of global vaccine production takes place in Hyderabad. "Telangana, the youngest state in the country, is blessed with natural advantages in geographical resources, a world-class skill-base, existing manufacturing practices and expertise, that have opened new opportunities for investments," said KTR. He stated that Hyderabad has several decades of history of having a strong defencerelated ecosystem, but the Union government has given the defence corridor to Bundelkhand where no ecosystem exists and neither the firms.
Source: India Tv News
Having battled disruptions through three waves of the Covid pandemic, businesses are now expecting a boost in opportunities in the upcoming union budget for 2022-23. While some seek policy initiatives, others are expecting interventions to curtail inflation and cost pressures. Most manufacturing sectors that are currently reeling under price rise are seeking out easy credit flow and other measures in terms of tax subsidies, and duty cuts. Appreciating the government’s move to announce the Remission of Duties and Taxes on Exported Products scheme to boost exports, the Indian Drug Manufacturers’ Association has urged the union finance minister to consider extending the scheme to exports of pharmaceutical products as well. The Centre had excluded pharma prodpharmaceutical ingredients and drug formulations from the list of rates notified for RoDTEP. The scheme was unveiled last year, replacing the scheme called Merchandise Exports from India Scheme (MEIS). “Inclusion of pharmaceuticals in RoDTEP will help the industry remain competitive on the export front,” said Viranchi Shah, national president, IDMA, adding: “To support ease of doing business, we suggest that a body on the lines of GST council be set up to streamline reforms in labour, land, as well as research and development sectors. IDMA has requested the FM to consider allocating a budget for such initiatives. ” ‘Remove cotton duty, tax imports’ Hike in the price of raw materials is the bane of the textile industry, right from spinning units to apparel makers. The recent spike in cotton prices has not just hampered production across the textile value chain but also added to the working capital. “Removal of import duty on cotton will help us procure it from the international market when prices are too high. This will create a level-playing field and not affect our competitiveness in the international market. We hope the government revokes import duty,” said Rahul Mehta, chief mentor, Clothing Manufacturing Association of India (CMAI). According to industry players, while production-linked incentive schemes and Mega Integrated Textile Region and Apparel (MITRA) scheme are key steps for India to achieve competitiveness, they are expecting reduction on import duties for machinery as well as tax on imports of fabrics from Vietnam and Bangladesh. “Reduction in import duties on machinery and incentives to help bring down capital expenditures on certain products will help. Imports from Bangladesh and Vietnam are hurting both textile and apparel makers. Therefore, either imports from these countries should be taxed or preferential trade agreements must be forged with key importers to help improve competitiveness of Indian manufacturers,” said Chintan Thaker, chairman, Assocham Gujarat state council. Manufacturers are also expecting measures to boost consumption by expanding minimum taxable slab for income tax deduction. Dye makers press for export promotion benefits too Expressing expectations similar to pharmaceutical sector’s demand, dyes and dyestuff industry has demanded the inclusion of dye intermediates under RoDTEP. The Centre had excluded dye intermediates covered under the Chapter 29 of customs tariff by announcing zero rate for items falling under the chapter. “Chapter 29, which covers major dye intermediates, should be included in the RoDTEP scheme,” said Bhupendra Patel, chairman, Gujarat region, Basic Chemicals, Cosmetics & Dyes Export Promotion Council (Chemexcil). According to industry players, earlier, dye intermediate exporters used to get incentives under MEIS as well as advance licence to make duty-free imports of raw materials. However, if a unit imports duty-free raw material under the advance licence authorisation scheme, it cannot claim incentive on exports of the finished goods under RoDTEP. “The government should extend the benefit of both RoDTEP and the advance licence authorisation scheme,” said industry players. The government should also do away with the requirement of obtaining environment clearance for minor internal changes that manufacturers sometimes have to make. “Despite the fact that such changes do not alter the product or even quantity, manufacturers have to get environment clearance if they make minor changes. These changes should be allowed to be approved at the state level by the Gujarat Pollution Control Board,” said an industry player. Realtors turn focus on infrastructure, housing Real estate industry expects the upcoming budget to give much-needed impetus to infrastructural development and housing by introducing various amendments, relaxations and extensions. Realtors have urged the FM to increase interest deduction for home buyers for tax rebate under section 24(B) to boost the overall home buying sentiment especially in these difficult times. “People should be allowed to avail CLSS benefits for MIG housing until allocated fund is utilised. Owning a home brings a lot of safety and security in these uncertain times. This move will also make this budget a landmark reform for our entire ecosystem,” said Jaxay Shah, chairman, ASSOCHAM western region and former national chairman of real estate body CREDAI. Other expectations include deduction of loss under house property, amendment to section 80C to increase the limit for repayment of housing loan principal, reduction in income-tax burden on rental housing and long-term capital gains on capital assets. IT and ITES sector hopes for policy support, incentives With rising digital penetration, increasing adoption of automation in manufacturing sectors, upgradation of digital ecosystem in workplaces and increasing adoption of datadriven approach to businesses, the IT and ITES sector has thrived. According to a Nasscom report in October, the IT and business process management sector has clocked $178 billion revenue in 2020-21. Ravi Pathak, co-founder, Tatvic Analytics, said, “As per Nasscom, the IT sector has generated employment for at least 1. 38 lakh people in 2021- 22. Tax incentives for firms or subsidies will help IT companies remain competitive. The government must focus on creating opportunities for home-grown firms in projects under Digital India. Besides funds to improve IT and telecom infrastructure, industry players have asked for policy support as they battle massive attrition and cost pressures to meet manpower needs. Jaimin Shah, co-chairman of Assocham Gujarat, said, “The industry needs tax incentives or subsidies to stay competitive and combat higher rate of attrition. ” Gems and jewellery enterprises pitch for further cut in duty Gold prices have more or less remained between Rs 50,000 per 10 gram and Rs 52,000 per 10 gram in the domestic market. After a rapid spike in prices breaching record highs in 2020, yellow metal prices have rationalised in 2021. However, with relatively muted demand, jewellers are expecting a further reduction in basic customs duty on gold. “In the previous year’s union budget, the government had announced a duty cut from 12. 5% to 7. 5% however, it levied 2. 5% agriculture infrastructure development cess. This keeps the duties and levies on gold to 13% with 3% GST included. We expect that the government considers the industry’s plight which has not completely recovered since the pandemic and further reduces the duty to 4%,” suggests Haresh Acharya, director, India Bullion and Jewellers’ Association (IBJA). Jewellers are also hoping that the government allocates funds to increase the number of hallmark certification centres and eases norms for hallmark certification to reduce compliance burden and unnecessary delays in delivery of jewellery due to time taken for hallmarking.
Source: Times of India
As bilateral trade between China and India hit a record high in 2021, Indian media reported that India has seen deepening dependency on many crucial imports from China, from finished to intermediate goods. India imported 8,455 different types of items from China between January and November in 2021, "a staggeringly diverse list covering everything from a range of chemicals and electronics to auto components and textiles, 4,591 showed an increase" The Hindu reported, citing data from India's Ministry of Commerce. Besides purchasing record amount of finished goods from China, India is "also relying on China for a range of intermediate industrial products, many of which cannot be sourced from elsewhere and are not made in India in sufficient quantities," the report said. Clearly, trade ties between China and India are robust, even though New Delhi has once tried to decouple from China in economy links in the past months. It showed that the strong economic complementarities between the two Asian emerging markets cannot be reversed by New Delhi's political posturing; and more importantly, the dependency of India on imports from China, objectively speaking, is not a bad thing for the South Asian economy. In fact, products from China, including both finished and intermediate goods, can benefit India's economic development, especially over the long run. China is the largest manufacturing hub in the world, offering quality products at competitive prices to global buyers, including Indian consumers who recorded a GDP per capita ranking of 144 out of 194 economies, according to data tracking platform StatisticsTimes.Com. By importing Chinese products at relatively lower prices, more Indian consumers' demands are being met, and the country has saved more foreign exchange reserve. Meanwhile, the increased import of intermediate goods from China could boost India's export to third markets, and therefore, shore up India's manufacturing capability and elevate the nation's status amid the global industrial chain. Though many people across the world maintain high expectation when it comes to India's economic growth and its manufacturing development, what cannot be ignored are multiple barriers facing by the country, from its long-standing protectionism, insufficient infrastructure, to unstable policy environment. As both major emerging economies in the world, however, India and China have different economic structures and are now in different phases of industrialization. India's manufacturing sector accounted for only 13 percent of its GDP in 2020, registering barely any growth in years despite the Modi administration's Make-in-India campaign. By comparison, the proportion of manufacturing in Chinese economy stands at roughly 26 percent. In this sense, the Make-in-India campaign does not necessarily need to compete or overtake Made-in-China in order to be successful. Instead, the two could realize win-win results by enhancing cooperation, not only by India purchasing intermediate goods from China, but also through cooperation across the regional value chain. The broader context here is the industrial integration in the Asian region. China itself is a colossal market and an economy under industrial upgrading. The unrivalled size of middle-class in China is going to consume huge amounts of products from overseas and the country's industrial upgrading is leading to relocation of some of its low-end manufacturing capacity. By enhancing economic links with China, India could seek to win more market share in the Chinese market; and at the same time, it could be better integrated into Asia's regional development. Standing in its way of becoming an economic powerhouse, New Delhi's real problem is domestic protectionism and some Indian politicians' voices whipping up an anti-China atmosphere which is negatively impacting the government, rather than the purchasing from China which would benefit India's economic growth in the long run.
Source: Global Times
A Tardal-based factory, near the textile town of Ichalkaranji in Kolhapur district, was gutted in a fire that broke out at 11 am on Monday morning. The factory manufactures oils and chemicals required for the sizing of yarn for the textile industry. There has been no loss of life. The authorities were notified late as there were no workers in the factory or even in the nearby textile units as it was their weekly off day. The authorities claim that an electrical short-circuit triggered the fire. Before the arrival of the fire fighting vehicles, most of the chemicals in the factory unit caught fire. The blaze was so huge that it obstructed the work of the firemen trying to douse the fire. Prasad Sankpal, the district disaster management officer, said, “Five fire tenders were used to douse the fire. The process took an hour. Barring the factory unit, no nearby units have been burnt. There has been no loss of life. The chemicals used in the sizing of the yarn (the process of putting on a protective coating on the yarn to minimise breakage) catch fire immediately. We have asked the local municipal authorities to study the cause and estimate the damage.” The factory, Vijeta Chemical Products, manufactures most of the chemicals required by the textile industry. It is located in the Kalappanna Awade Integrated Textile Park at Tardal near Ichalkaranji.
Source: Times of India
India's fuel demand will continue to recover through the current quarter as the easing of Covid-19 pandemic-related restrictions boosts economic activity, Fitch Ratings said on Monday, adding a caveat that this was subject to the risk of a resurgence in infections and the resultant impact on economy and mobility. The recovery should support higher throughput at most oil marketing companies and strong prices are expected to improve the financial profiles of upstream oil and gas companies. Fitch said it "expects India's petroleum product demand to remain moderately strong in the fourth quarter of the financial year ending March 2022 (4QFY22), as the easing of Covid-19 pandemic-led restrictions boosts economic activity." However, recovery expectations remain subject to further restrictions due to the risk of a resurgence of Covid-19 cases in India with the emergence of new variants, even as the country makes progress in its vaccination plan. "We expect improved demand for petroleum products to reach pre-pandemic levels in 4QFY22 (January-March 2022), but the full financial year's demand is still 2-4% below that in FY20," Fitch said. Demand rose by 5% yoy in April-December 2021, but the overall monthly average was about 8-10% lower than the prepandemic level at 16.4 million tonnes. This is because there were still some pandemic-related restrictions in some regions of the country in 1HFY22. "We expect the recovery to continue through to 4QFY22, subject to the risk of a resurgence in Covid-19 cases and the resultant impact on economic activity and mobility," it said. In its 'India Oil & Gas Watch' report, the rating agency said capex is likely to stay high as oil marketing companies (OMCs) expand their refining capacity and retail networks, and upstream companies enhance production. "We expect stable crude oil production, which should marginally increase in FY23 as upstream producers continue to invest in exploration and development," it said. India's natural gas production increased by 22% yoy in April-December 2021 and the momentum is likely to continue over the next 12-18 months, driven by expanded production at new fields, before stabilising in FY23. "We believe rising domestic production and higher liquefied natural gas (LNG) spot prices are likely to weigh on LNG imports through to 1HFY23. However, LNG imports should rise steadily over the medium-term as consumption picks up pace," it said. Core oil refining margins are likely to improve in 2HFY22 (October 2021 to March 2022), as petrol and diesel spreads continue to strengthen amid the economic recovery. The 1HFY22 (April-September 2021) reported margins of NSE -2.25 % , IOC and HPCL improved to USD 5.1 per barrel, USD 6.6 and USD 2.9 a barrel, respectively, on account of rebounding demand, wider gasoline spreads and inventory gains. "We expect the OMCs to generate steady marketing margins in 2HFY22, as they continue to pass on higher crude oil prices to consumers," Fitch said. "Government cuts to gasoline (petrol) and gasoil (diesel) excise duties, as well as to value-added tax in some states, should cushion retail fuel-price affordability and the OMCs' marketing margins." However, record-high retail fuel prices may limit the extent to which the changes are passed on should the crude oil prices continue to rise, it said. India's crude oil production declined by 3% year-on-year in April-December 2021, while natural gas production rose by 22%. The steep rise in gas output was due to a production ramp-up at the KG-DWN98/2 and KG-D6 deepwater projects. Natural gas production to further increase over the next 12-18 months, driven by expanding production at the new fields, before stabilising in FY23. "Crude oil production should stay stable in 4QFY22, before marginally increasing as upstream producers continue to invest in exploration and development and enhance existing facilities to offset the natural decline from mature fields," Fitch said. The price is linked to prices of four global liquefied natural gas (LNG) benchmarks, including Henry Hub and National Balancing Point, in the previous 12 months and is implemented with a quarter's lag. Global gas prices rose during 2021 and we expect global prices to stay high in 1Q22, driven by high demand in Asia, production bottlenecks and uncertainty around Russia's Nord Stream 2 pipeline as well as limited gas in European storage facilities. This is likely to result in higher domestic gas prices during 1HFY23, helping boost profitability at upstream companies. However, the impact on upstream companies will be marginal, due to its low share in the revenue mix, Fitch said. The government's higher price ceiling for gas produced from deepwater and other difficult fields of USD 6.13 per mmBtu, from USD 3.62, is likely to benefit production at NSE - 4.03 % Ltd's Krishna Godavari basin field.
Source: Economic Times
Thousands of powerloom operators from the textile town of Ichalkaranji have unanimously decided not to pay the electricity bills. For January, the powerloom operators have received bills without the subsidy amount being deducted. The state government has stopped the power subsidy for the powerlooms that did not registered their details on the special online portal created by the textile department. The deadline for this was December 31, 2021. The government, which provides subsidies in hundreds of crores every year, suspected that the subsidised power is being used for purposes other than intended. Vinay Mahajan, the president of Ichalkaranji Powerloom Owners Association, said, “We had raised technical difficulties in registering the details online. We had suggested the changes to be made in the portal. The department had sought uploading of age-old documents for the machines in use, which we are unable to furnish. After the decision to stop the subsidy, we met the authorities and minister Aslam Sheikh and demanded an extension of the deadline to file the details. Until then to not stop the subsidy. However, despite our request, we have received bills without deducting the subsidy amount and we are not able to pay the inflated bill. So, we have decided to not pay the bills.” Filling details on the online portal is mandatory for the powerlooms with 27 horsepower or more consumption. Only 970 powerloom operators filled the details online and over 10,000 have not. The government is providing subsidies for over 3% of the power consumed. Around Rs 150 crore is spent towards the subsidy by the government. The textile commissioner’s office had written to the finance manager of Maharashtra State Electricity Distribution Company Limited (MSEDCL) to stop subsidised bills to the powerlooms with 27 HP or more consumption, who did not register.
Source: Times of India
As a major boost to Centre and State collaboration in promoting products under the One District One Product (ODOP) Initiative – a State Conference was held on 21st January, 2022 by the Department for Promotion of Industry and Internal Trade, Ministry of Commerce & Industry. The Conference was chaired by Smt. SumitaDawra, Additional Secretary, Department for Promotion of Industry and Internal Trade (DPIIT) and was attended by Principal Secretaries and other key officers of the Industries Departments of all States. Smt. SumitaDawra, Additional Secretary, DPIIT opened the meeting with a special address that focussed on the successful activities undertaken under ODOP so far and best practices across the states. This was followed by a deep dive into the ‘Changing Narratives for the Manufacturing Sector in Jammu & Kashmir’ by Shri. Ranjan Prakash Thakur, Principal Secretary Industries, Jammu & Kashmir. Herein, the ODOP Initiative’s work in Jammu & Kashmir especially its successes in trade facilitation for walnuts and apples was discussed. The ODOP initiative’s facilitation of Jammu & Kashmir’s representation at the Dubai Expo 2020 and successful buyer-seller meets as well as focused trade discussions conducted therein were also highlighted. The rest of the states would also soon be facilitated to participate in events at an international level. The state of Uttar Pradesh was also able to bring attention to the remarkable success of the UP ODOP Model wherein artisans and producers from all districts of the state have been promoted and assisted under One District One Product (ODOP). The presentation was made by Shri. Navneet Sehgal, Additional Chief Secretary, Micro Small and Medium Enterprises (MSME) and Export Promotion, Uttar Pradesh. UP provides a template for states to successfully implement and take forward the goal of creating each district as a hub for economic development through the product synonymous with it. Smt. Swapna Debnath, Additional Director, Dept. of Industries and Commerce, Tripura outlined a roadmap for ‘Promoting remote districts and boosting local economy’. This included a discussion on the successful collaboration between the State Govt and the ODOP Team thus far, and the next steps that would be taken to promote product development and exports from all the 8 districts of Tripura. Following the presentations from the States, the ODOP Initiative being facilitated by Invest India under DPIIT made a presentation on the scope of work under ODOP, the activities undertaken so far, and the way forward in fostering the vision of balanced regional economic development. Invest India highlighted some of the existing stories of economic empowerment through trade facilitation, capacity building and product development. Some key examples referred to included design trainings for Molela artisans in Rajsamand District, Rajasthan; skill trainings for Muga Silk weavers from Kamrup, Assam, sustained year-year trade facilitation of Lakadong Turmeric from West Jaintia Hills, Meghalaya and the promotion of ODOP products from across districts and categories at international events such as the Dubai Expo 2020. ODOP’s work in e-commerce onboarding and its close association with large e-commerce players to support rural artisans in leveraging web-based sales through dedicated storefronts for ODOP was also discussed. A roadmap for further State engagement with the ODOP Initiative was also laid out. Through the sharing of sellers’ data from the States, the ODOP team would take forward trade facilitation with buyer leads. Further, the appointment of a nodal officer in every state to work hand in hand with the ODOP Initiative would ensure the success of future activities under the same. The Conference was well received by the participants and some including Hage Tari, Principal Secretary, Industries from Arunachal Pradesh expressed their keen interest in participating and wholeheartedly supporting the same in his state. All the principal Secretaries also eagerly shared contact details and sought to stay connected and updated on the ongoing activities under ODOP. Shri B. Ramanjaneyulu, Director, DPIIT concluded the Conference with A Vote of Thanks and Closing Remarks. He urged the Industries Departments from all States and Union Territories to ensure active support for the successful implementation of the ODOP initiative across the length and breadth of the country, to propel the economy towards the goal of Aatmanirbhar Bharat. He also apprised the participants on the inclusion of ‘One District One Product’ initiative as a category for assessing the performance of Civil Servants being considered for the annual Prime Minister’s Awards for Excellence in Public Administration. The successful States Conference marks the recognition of the outstanding success of the ODOP Initiative, while recognizing that it is a first step towards further impactful work towards the vision of Aatmanirbhar Bharat and #VocalforLocal.
Source: PIB
Trade promotion body ZimTrade says textile and footwear industries made momentous progress on the export front in 2021 as the country continued to make inroads into regional markets. Statistics show that exports of these products in the first eight months of 2021 to August, grew to US$32,3 million in 2021 from US$17,7 million in 2020 which translates to an 85 percent surge. According to ZimTrade, the growth trails an increased demand for Zimbabwean merchandise such as protective clothing in regional markets such as Zambia, and the Democratic Republic of Congo. Traditionally Zimbabwe's textile market sector exports products mainly to South Africa with an estimated export market share of 91,74 percent, Zambia (1,91 percent), Germany (0,34), Malawi with an exports contribution of 0,12 percent, and Mozambique. "As more buyers are looking forward to source protective clothing from Zimbabwe based on the superior quality of local products and new markets are unlocked, projections are that exports from the sector will continue to grow," said ZimTrade in its monthly publications. Textile manufacturing was once an important industry in Zimbabwe but the sector came to halt when local clothing lines became uncompetitive in the face of cheap imports, which flooded the market. The sector suffered a number of difficulties in the period 2000-2010 a position that saw companies closing shop and a number of people losing their jobs. Currently a small number, less than 10 percent manufacture for export despite the growing regional market and inroads being made into Europe in the past few years. On the flip side in the footwear production footwear industry is on a recovery path after taking a battering in the economically turbulent years between 2001-2008. At its peak in the 1990s, the sector used to produce 8 million pairs of leather shoes and most shoe manufacturing factories in the country have over the years shut down. According to ZimTrade, the leather and leather products sector has the potential to contribute to the Zimbabwean economy through employment creation and income generation. Resultantly, the sector was prioritised for development in the National Trade Policy of 2012-2016 and Industrial Development Policy of 2012-2016. Presently the National Development Strategy (NDS 2021-2022) has also identified the leather sector as one of the key-value chains. Additionally, the Government has pledged to recapitalise the leather and footwear subsector so as to increase industrial capacity utilisation and boost exports through the production of value-added products such as finished leather, footwear, and other leather products. Towards the end of 2021 Finance and Economic Development Minister, Professor Mthuli Ncube indicated that his office was targeting the cotton sector value chain, especially garment manufacturing and leather value chain as they are exportoriented, a vital cog in the stimulation of the country's exports earnings.
Source: All Africa
(DTI) Secretary Ramon Lopez reiterated his call for the immediate Senate concurrence of the Regional Comprehensive Economic Partnership (RCEP) agreement and warned about the potential negative impact on the economy should the Philippines' ratification be delayed. "RCEP is expected to promote economic efficiency of member states, linking their strengths in manufacturing, technology, agriculture and natural resources, and it will reinforce the global value chain (GVC) network, which the Philippines is very much a part of," said Lopez in a statement on Monday. The agreement represents 50 percent of the global manufacturing output; 50 percent of global automotive output; 70 percent of electronics; 26 percent of GVC Trade Volume; 60 percent GVC for electrical/machinery, petroleum/chemicals, textile/apparel, metal and transport equipment, 35 percent contribution to global exports of electronics and machineries; and the main GVC hubs of big economies such as South Korea, Japan and China. Several business groups and industry organizations earlier called for the immediate ratification of RCEP. Lopez expressed his appreciation for the strong support of various industry and business organizations in calling for the immediate Senate concurrence of RCEP. "This is really for the future of our economy. We have to sustain our growth momentum and show to the international community that the Philippines is indeed an emerging economy open to trade and investment," the trade chief said. Lopez warned that a delay in ratification would hamper job creation and economic activity, as trade and investments would be diverted away from the country to competitors within RCEP. "As other countries in the region enjoy the preferential treatment arising from enhanced market access, wider sourcing of raw materials and strengthened and transparent trading systems, the existing linkages of the Philippines to the GVC may deteriorate as investors and businesses look to other countries for a better economic environment and opportunities," he said. Lopez also stressed that consultative processes with sectoral stakeholders were followed over the course of negotiating the agreement, noting that safety nets and flexibilities were available under RCEP, and that sensitive products were excluded from tariff liberalization. "Not joining RCEP or delaying our participation will cause disruption in this momentum. Investments will shy away from the country not participating, definitely. There will be capital flight and lost investment opportunities. Companies will go to where they have greater ease in trade flows. Thus, jobs will be lost, livelihood destroyed and poverty will worsen," the trade chief explained.
Source: Manila Times
World economy will lose $12.5 trillion in output by 2024 due to the pandemic, according to International Monetary Fund (IMF) managing director Kristalina Georgieva, who recently said IMF will update this number revising it upwards because of omicron. Inflation is not a universal phenomenon, but a problem in a number of countries, especially the United States, she noted. US consumer prices surged by 7 per cent in the 12 months to December 2021, the largest annual rise in nearly four decades. The Federal Reserve and others have signaled that rate hikes may be imminent in 2022. The "spillover impact on emerging markets .... can add fuel to the fire of divergence," Georgieva said. Rate hikes in advanced economies raise the cost of borrowing and siphon away investments from emerging markets. The IMF is urging countries to keep building up their defenses against the current pandemic and future ones, she said. It is ‘hugely important’ to ensure more diversified production of vaccines and reduce the reliance of Africa and other regions on imports, she was quoted as saying by global newswires. She said she expects increasing demand for IMF financing this year. The IMF's executive board is slated to discuss on Friday a new Resilience and Sustainability Trust lending instrument backed by the Group of 20 countries in October.
Source: Fibre2 Fashion
Sri Lankan Trade Minister , Dr. Bandula Gunawardhane Monday said that Pakistan was a longstanding friend, key trading partner of Sri Lanka in South Asia, his country was keen to further strengthen bilateral trade and economic ties with it to achieve mutually beneficial outcomes. He said this while addressing the business community at Islamabad Chamber of Commerce and Industry (ICCI), said a press release issued here. He visited ICCI leading a Sri Lankan trade delegation to hold B2B meetings with the local business community. Tharaka Balasuriya State Minister of Regional Cooperation, Prof. Dr. Saj Mendis Director General of the Economic Affairs Division, Asma Kamal, Trade Secretary Pak High Commission to Sri Lanka, U.L.Niyas Acting High Commissioner of Sri Lanka to Pakistan also accompanied the Sri Lankan delegation. Dr. Bandula Gunawardhane said that Pak-Sri Lanka FTA had contributed to expanding bilateral trade but more efforts from both sides were needed to maximize its benefits. He said that top Sri Lankan exports to Pakistan included betel leaves, women fabrics, coconut products, MDF & fibre boards, textiles articles, electrical & electronic products whereas major Pakistani exports to Sri Lanka included woven fabrics, mineral products, cereals, pharma products and potatoes. He stressed that both sides should focus on diversification of products to improve bilateral trade. Tharaka Balasuriya said that Pakistan was a time-tested friend of Sri Lanka and both countries had good potential to enhance cooperation in pharmaceuticals, IT, tourism, minerals and electrical vehicles. He said that Pakistani investors should take advantage of investment in SEZs in Sri Lanka. Asma Kamal, Trade Secretary, Pakistan High Commission to Sri Lanka said that Pakistan wanted to increase bilateral trade with Sri Lanka as the current level of trade was not reflective of their actual potential. She said that both sides should address tariff and non-tariff barriers to take maximum benefit from FTA for trade promotion. Welcoming the delegation, Muhammad Shakeel Munir, President, ICCI said that Sri Lanka was the first country with whom Pakistan had signed FTA in 2005, but both countries have not taken full benefit of it for trade expansion. He stressed for removing trade barriers and hurdles to the implementation of FTA that would enable Pakistan and Sri Lanka to improve bilateral trade to USD 3 billion from the current level of USD 440 to 450 million. He said that many Pakistani products including marble and granite, Basmati rice, textiles, cement, fruits and vegetables and others could find a good market in Sri Lanka and Sri Lanka should import these products from Pakistan. Jamshaid Akhtar Sheikh Senior Vice President, Muhammad Faheem Khan Vice President ICCI, Zubair A. Malik former President ICCI and others also spoke at the occasion and stressed for frequent exchange of trade delegations to explore all untapped areas of mutual cooperation. Both sides held B2B meetings to discuss business collaborations in areas of mutual interest.
Source: Urdupoint
