The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 30 MARCH, 2016

NATIONAL

 

INTERNATIONAL

 

Textile Raw Material Price 2016-03-29

Item

Price

Unit

Fluctuation

Date

PSF

1050.83

USD/Ton

-0.15%

3/29/2016

VSF

2107.81

USD/Ton

0.00%

3/29/2016

ASF

1933.7

USD/Ton

0.00%

3/29/2016

Polyester POY

1067

USD/Ton

0.36%

3/29/2016

Nylon FDY

2288.09

USD/Ton

0.00%

3/29/2016

40D Spandex

4545.36

USD/Ton

0.00%

3/29/2016

Nylon DTY

1155.6

USD/Ton

0.00%

3/29/2016

Viscose Long Filament

2542.32

USD/Ton

0.61%

3/29/2016

Polyester DTY

5742.56

USD/Ton

0.00%

3/29/2016

Nylon POY

1286.57

USD/Ton

0.00%

3/29/2016

Acrylic Top 3D

2118.6

USD/Ton

0.00%

3/29/2016

Polyester FDY

2118.6

USD/Ton

0.00%

3/29/2016

30S Spun Rayon Yarn

2865.89

USD/Ton

0.00%

3/29/2016

32S Polyester Yarn

1741.1

USD/Ton

0.00%

3/29/2016

45S T/C Yarn

2465.28

USD/Ton

0.00%

3/29/2016

45S Polyester Yarn

1864.37

USD/Ton

0.00%

3/29/2016

T/C Yarn 65/35 32S

2126.3

USD/Ton

0.00%

3/29/2016

40S Rayon Yarn

3004.56

USD/Ton

0.00%

3/29/2016

T/R Yarn 65/35 32S

2465.28

USD/Ton

0.00%

3/29/2016

10S Denim Fabric

1.08

USD/Meter

0.00%

3/29/2016

32S Twill Fabric

0.9

USD/Meter

0.00%

3/29/2016

40S Combed Poplin

0.98

USD/Meter

0.00%

3/29/2016

30S Rayon Fabric

0.73

USD/Meter

0.00%

3/29/2016

45S T/C Fabric

0.74

USD/Meter

0.00%

3/29/2016

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15408 USD dtd  29/03/2016)

The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

Textile traders say proposed tax policy to hurt business

The Delhi government's tax proposal for the textile industry has been opposed by traders. They say the uniform rate of 5% on all varieties of textiles and fabrics except khadi and handloom ones would see a flight of customers to nearby states. "Wholesalers tell me that with the raw material costing 5% more, the finished products would cost 5% more too. Buyers would look at Gurgaon and other parts of Haryana because of this and Delhi would lose its distribution character," said Sanjiv Mehra, president, Khan Market Traders' Association. Pramod Kumar, president, Sarojini Nagar Traders' Association, said even a 5% hike in taxes was significant. "The customers would have to bear the higher tax on both the raw material and finished product. It's a double whammy," he said. J B Soma, member of The Textile Association (India), said traders would write to the government to junk the hike. Traders also pointed out that other manufacturing hubs like Surat, Mumbai, Malegaon, Erode, Gorakhpur, Kanpur, Amritsar and Ludhiana levy no blanket VAT on textiles and fabrics. "I think it's plain irrational to slash tax on ready-made garments that cost over Rs 5,000 to 5%, but levy 12.5% tax on cloth that costs Rs 50," said Mehra.

SOURCE: The Times of India

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Odisha tops in manufacturing sector investment with 17%

Odisha has emerged as the top state in the country with over 17 per cent share in the total live investments worth about Rs 33 lakh crore in the manufacturing sector across India, according to a recent study by Associated Chambers of Commerce and Industry of India (Assocham). Gujarat has ranked second in terms of share in total investments attracted by manufacturing sector followed by Karnataka (11 per cent), Jharkhand (nine per cent) and Chhattisgarh (seven per cent) noted the study titled 'Impact analysis of delay in investment implementation in manufacturing.' “Manufacturing sector in India attracted live investments worth about Rs 33 lakh crore i.e. about one-fifth of the total live investments worth over Rs 164 lakh crore attracted by various sectors across India as of September 2015,” highlighted the study prepared by Assocham Economic Research Bureau (AERB). “Metal and metal products alone accounted for almost half (48 per cent) of the total live investments attracted by manufacturing sector in India followed by chemicals and chemical products (24 per cent), machinery (8 per cent), transport equipment (7 per cent), construction material (7 per cent), food and agro based products (three per cent),” the report said. In Odisha, metal and metal products account for over 79 per cent share in total investments in the manufacturing sector followed by chemical and chemical products (15 per cent), transport equipment (three per cent), construction material (one per cent).

Projects with about 37 per cent of the total live investments attracted by manufacturing sector remained under implementation as of September 2015 i.e. 1,160 projects with investments worth over Rs 12 lakh crore, it added. Rajasthan has over 68 per cent manufacturing projects under implementation followed by Haryana (67.5 per cent), Bihar (63 per cent), Assam and Uttar Pradesh (62 per cent). In Odisha, about 39 per cent manufacturing sector projects have remained under implementation as of September 2015. “Considering that long delays in projects' implementation hurts investors' sentiment, the government needs to have a strong plan to prioritise speeding up stuck projects' effective implementation by creating a target-oriented roadmap,” Assocham said. “Even investors should be penalised if projects get delayed due to improper planning, change of ownership, lack of finance, absence of co-ordination with contractors and other related issues,” it added.  Highlighting the impact of delay in implementation of projects in manufacturing sector across India, the ASSOCHAM study noted that out of 1,160 projects that are in different stages of implementation, 422 projects have reported time or cost overruns worth about Rs nine lakh crore which is almost 50 per cent of the actual investment. Of these 422 delayed projects, only 80 projects have declared employment potential and these projects alone could generate 4.5 lakh employment opportunities.  

SOURCE: Fibre2fashion

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Maharashtra, Gujarat accounted for 46 pct of exports in FY15: Report

Just two states — Maharashtra and Gujarat — accounted for over 46 per cent of merchandise exports from the country in 2014-15, says a study by industry lobby Assocham. The next three states were Tamil Nadu, Karnataka and Andhra Pradesh. The top five states together claimed over 69 per cent of the country’s total export earnings in the previous fiscal, it added. Export earnings in 2014-15 stood at around USD 310 billion. While Maharashtra shipped goods worth USD 72.83 billion during the reporting period and continued to remain the best performing state, Gujarat exported goods worth USD 59.58 billion, again retaining the second spot. Tamil Nadu emerged as the third largest exporter with USD 27.47 billion. But in growth percentage terms, Uttar Pradesh topped the list with 18.3 per cent, followed by Haryana at 14.4 per cent. Exports from Gujarat and Maharashtra grew 8 per cent and 7.2 per cent, respectively, it added. Indicating the importance of SEZs in achieving higher exports, the report notes that almost three-fourths of operational SEZs are located in Maharashtra, Gujarat, Andhra Pradesh, Telangana, Karnataka and Tamil Nadu.

SOURCE: The Financial Express

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'Some export sectors doing well despite global headwinds'

Expressing confidence that impact of government initiatives to boost shipments will be visible soon, Commerce Minister Nirmala Sitharaman has said that some export sectors have done well despite global headwinds. "Inspite of the headwinds, there are some sectors definitely performing. So the story is a mixed story. Month­on ­month figures may talk about exports falling, but the story is not across the board. Some sectors are still managing to keep their growth story going," the minister told PTI. She said that global headwinds have been so strong that month­on­month, the realization from exports are not really happy. The minister said depreciations of the currencies too are impacting exports. "It is not just rupee versus dollar... every currency opposite us is depreciating. As a result, you really suffer. And if your crude and commodity prices have fallen, currencies are devaluing, your exports quantum may remain the same but your realisations suffer," Sitharaman added.

Sectors which are recording healthy growth include pharmaceuticals, plastic and linoleum and handicrafts. Further she said that steps announced by the government to boost exports "do take time to yield results". "There is a time lag between the decision taking time of the government and the results showing time at the ground. Last September, we came up with two major schemes... you need at least six months to gauge the impact," she said. Sitharaman added that both ­­ 3 per cent interest subsidy scheme and extension of duty benefits under Merchandise Exports from India Scheme (MEIS) ­­ have been just launched late last year. "By the time the rules and the money and everything goes through the bank, it does take a bit of a time. And for us to measure what impact does it have, it will take a while," she said. Falling for the 15th month in a row, exports dipped 5.66 per cent in February to USD 20.73 billion due to contraction in shipments of petroleum and engineering goods amid tepid global demand. Trade deficit, however, fell to near five­year low of USD 6.54 billion during February as imports too slowed down.

SOURCE: The Economic Times

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FM Arun Jaitley invites Australian businesses to invest in India

Finance Minister Arun Jaitley today invited businesses in New South Wales to invest in India, saying the country wants foreign sovereign wealth funds to be part of NIIF, pension and insurance funds in India. Making opening remarks during his meeting with the New South Wales Premier Mike Baird here, Jaitley also highlighted various initiatives and reforms measures undertaken by the government to boost the Indian economy which is growing at a rate of above 7.5 per cent. Stating that India needs a lot of Foreign

Direct Investment, especially in manufacturing and infrastructure sectors, he said state governments are taking keen interest and competing among themselves to attract foreign investments. Baird expressed keen interest in investment opportunities in India particularly in the infrastructure sector. He highlighted the importance of communicating the information to larger business community in Australia to enable them to understand the opportunities available in India. Baird also informed the Finance Minister that he intends to visit India during the next 'Vibrant Gujarat' summit in January, 2017.

SOURCE: The Economic Times

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India-EU FTA talks unlikely to resume soon

Stalled negotiations between India and the EU for the proposed free trade agreement (FTA) are unlikely to resume anytime soon despite Prime Minister Narendra Modi attending the India-EU Summit in Brussels on Wednesday, mainly due to a lack of consensus required for serious talks. Sources told FE that while the EU wants India to first address its key areas of concern—including reducing import duties on auto parts and wine, and ensuring a strengthened intellectual property rights (IPR) regime—before any formal resumption of negotiations, India wants discussions on all areas simultaneously, and not just on issues concerning the EU. Both the sides are also learnt to be waiting for the outcome of a referendum on June 23 as to whether the UK should exit the EU so that they can set the agenda for negotiations with more clarity, they said. India also wants more concessions in services, especially in easier movement of professionals. The secretary-level talks, launched last month for the EU-India Bilateral Trade and Investment Agreement (BTIA) after the initial stock-taking exercise in January, haven’t been able to build solid foundation for the negotiations, sources said. As many as 16 rounds of negotiations took place for the BTIA (the proposed FTA) between 2007 and 2013, but the negotiations were stuck after that.

A British exit, or Brexit, from the 28-member bloc will end central control by Brussels and offer the UK the freedom to manage its own affairs. “Both the EU and India will have to re-evaluate their positions in case the UK decides to pull out of the EU. So, it makes sense, especially for India, to watch out for the outcome of the referendum first and then make the move accordingly, as the UK is also a key market for India,” a source said. India also feels the flexibilities shown by it in further opening up certain sectors to foreign investments should be considered positively by the EU, it also expects some reciprocal measures by the 28-member bloc to address its concerns, especially on data privacy and market access in the services sector. India is keen on services, as they account for over a half of its GDP. The country also seeks a data secure status because the high compliance cost with EU’s data protection laws will hit small and medium enterprises (SMEs) of India and make them uncompetitive.

India has further liberalised many sectors for foreign investments, including some of the areas where the EU had interests, over the past three years. For instance, the FDI cap in insurance has been raised to 49% from 26% and 100% FDI is allowed in telecom. In private sector banking, full fungibility of foreign investment is now permitted up to a sectoral limit of 74%, with certain conditions. However, the EU is interested in further liberalisation of FDI in multi-brand retail and insurance, and closed sectors like accountancy and legal services. The underutilised private banking space in India is another draw. India’s intellectual property regime (IPR), which is unlikely to allow ever-greening of patents, remains a concern for European pharma majors. Moreover, the EU has been seeking a cut in the high import duties on assembled vehicles and wines and spirits. In case of assembled vehicles, the import duties remain in the range of 60-75%. BTIA talks were to be revived last year, but the EU’s surprise ban on 700 products of GVK shocked India, which then called off the negotiations.

SOURCE: The Financial Express

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India offers EU compromise formula to break deadlock in trade talks

India has offered to meet the EU half-way in getting the negotiations on the long-pending free trade agreement re-started. It has proposed to set up a working group on automobiles that would exclusively focus on meeting the 28-member bloc’s aggressive interests in the sector, but has refused to take commitments on duty cuts before the talks begin. “The ball is now in the EU’s court. It has to decide whether our offer, made in Brussels last month at the Secretary-level talks, is good enough for it to re-engage with us, or if it wants to keep insisting on duty cut commitments as a pre-condition to talks” a government official told BusinessLine. An announcement at the India-EU Summit on the re-launch of the talks, officially called the Broad-based Trade and Investment Agreement (BTIA), depends on how early the EU takes a call on the matter, the official added. The BTIA seeks to reduce tariffs in goods and liberalise rules in services and investments. The EU wants India to commit to sharp cuts in import duties on automobiles currently ranging between 60 per cent and 120 per cent, as opposed to 10 per cent duties levied by the bloc.

Auto focus

Automobiles have been a focus sector for the EU right from the beginning of the BTIA talks in 2007. The EU lost interest in the negotiations in 2013, which were then suspended, as it was disappointed with the market openings offered in the automobiles and wines & spirits sectors and also in services such as banking, insurance and retail. “It is the EU which expressed interest in re-starting the talks last year. We are now in a position to offer more in several areas due to autonomous changes in our policies, but it is difficult to proceed if tough pre-conditions are placed,” the official said. The domestic automobile industry has been lobbying against reduction of import duties on cars as it argues that it will be a reversal of the country’s policy of high tariffs to encourage investment, local manufacturing, local value addition and local employment. “The working group that we have proposed to set up with the EU will focus on meeting the EU’s demands while keeping domestic realities and needs in mind,” the official said.

Curbs on workers

India, on its part, would want the EU to commit to not just giving more work visas to Indians, but also ensure that additional barriers to movement of workers don’t crop up. “The increased restrictions on foreign workers, in the form of minimum salary requirement and higher fees, being planned by the UK is of great concern to us, and we want the BTIA to address these,” the official said. Two-way trade between India and the EU is well balanced at about $100 billion annually. Exports to the EU account for about 16 per cent of India’s total exports.

SOURCE: The Hindu Business Line

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Talks with EU may focus on combating terrorism: Modi

The upcoming 13th India-EU Summit slated to take place in Brussels on March 30 will result in further progress in the bilateral ties of both sides, Prime Minister Narendra Modi said before leaving for a three-nation tour to Belgium, US and Saudi Arabia. “The European Union is a vital trading partner and the biggest export destination for India. This Summit will advance our multifaceted engagement across a whole range of domains,” he said before his departure on Tuesday. Besides, having a bilateral meeting with European Commission President Jean-Claude Juncker and European Council President Donald Tusk, Modi will also be separately meeting his Belgian counterpart Charles Michel. Modi also hinted that talks on combating global terrorism will feature prominently during his interactions with the EU leadership. “No words are enough to salute the resilience and spirit of the people of Belgium. We stand shoulder to shoulder with them in the wake of the horrific attacks in Brussels and share the grief of those who lost their loved ones,” This comes a day after an Infosys employee Raghavendran Ganeshan, 30, was declared dead by Belgian authorities. He was killed in the terrorist attack that was carried out in a train at Maalbeek Metro Station in Brussels on March 22. India and Belgium will be jointly remote activating the India-Belgium ARIES (Aryabhatta Research Institute for Observational Sciences) Telescope to showcase their cooperation in high-tech sectors. In Brussels, the Prime Minister will also meet Members of European Parliament (MEPs) apart from interacting with the business community there. “In Brussels, I would also be meeting with the Members of European Parliament (MEPs), Indologists, Belgian CEOs as well as a wide cross section of the Indian diaspora in Belgium. I will also interact with the Board Members of the Association of Diamond Traders in Belgium,” Modi said.

SOURCE: The Hindu Business Line

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Ease of doing business a must to boost investment: Arun Jaitley

Finance Minister Arun Jaitley today said India needs to further ease its business processes to boost foreign and domestic investments, even as he admitted that the country has been impacted by global trade shrinkages. Terming ‘ease of doing business’ in India as an “important work which is still in progress”, Jaitley also said that the Modi government has been able to straighten several laws and was trying to make taxation systems compatible with the global standards. Addressing the Sydney campus of the S P Jain School of Global Management after arriving this morning on a four-day visit to Australia, Jaitley said the NDA government also been able to make headway in terms of eliminating corruption and it was working on removing discretions of all forms. Jaitley, who was welcomed by Indian high commissioner Navdeep Suri and S P Jain School President Nitish Jain at the jam-packed event where he spoke on ‘Reimagining the Indian Economy’, said the global trade shrinkages has impacted India too in terms of uncertainties in stock and currency markets, which Australia itself has also witnessed. “Opening of the Indian economy and sectors like insurance, railways, defence and several others which were earlier unavailable for FDI has helped us,” Jaitley said.

Listing various measures taken since the NDA government came to power in May 2014, Jaitley said, “We have also removed the unnecessary conditionalities which was slowing down foreign direct investments and this, probably in greenfield projects, has made India the most sought after destination as far as FDI is concerned”. “The second important challenge was not only to improve India’s image but…. image gets improved by the fact that in actual operation those who domestically do business and those who intend to invest in India go back with an impression that it is easy to do business in India,” he said. “In term of ease of doing business, you are measured by the stability of policies, by predictability, by cutting short the time between the decision to make investment and actual implementation… you need few approvals and easy approvals,” he said. He said that for India, the system was to get approval from multiple authorities which could frustrate the investors. “I can claim that we have achieved everything but I think there is a greater realisation in India that in the competitive world today not only to attract foreign investors but also persuading domestic investors, we will have to ease our business processes,” he said adding “that’s an important work which is still in progress as far as India is concerned”. He also said that the government has been able to make a headway in terms of eliminating corruption.

Jaitley further stressed that an area the government was working on was to eliminate discretions of all forms and to eliminate person-to-person contact to ensure a non-discretionary system for all processes. He said that the government has been able to straighten several laws and was now trying to make the taxation systems compatible with the global standards. “We are now working on direct tax system. we want to put disputes behind us. we want people to clean up their taxation issues and to bring down India’s corporate tax gradually to a fair international level which would be at a flat 25 per cent. We are slowly moving in that area,” he said. He also expressed hope that the GST would be cleared sooner or later. Jaitley said other areas of focus for the government was agriculture and infrastructure. “As far agri sector is concerned, since it was a stressed sector over the last two years, we have used the opportunity in every possible way to pour investments in this sector,” he said and stressed upon measures like higher spending on irrigation, large amount of credit offtake and crop insurance. “We also utilised the regime created by low oil prices resulting in large amount of savings for the government to start investing in the infrastructure sector,” he said. “We are concentrating on highways, railways, airports, ports and this is the direction in which we are taking the economy,” he said. “Despite global slowdown, we have managed to maintain the growth rate of 7.5 per cent. All our current figures are very acceptable figures and I am reasonably certain that as the global push to the economy slightly improves, hopefully we have better monsoon and these figures will look even better in years to come,” Jaitley said.

Welcoming the Finance Minister, Suri said India saw Australia as a critical partner in Prime Minister Narendra Modi’s ‘Skill India’ programme. “We are working very closely with number of Australian education institutions. We are looking at different models that are emerging,” he said. Suri said in discussions with Australian skills providers, Indian government was raising the the issue of high cost model offered by the Australian side. “Education has become an important part of Bilateral agenda and this was taking place at a different level,” he said. “The Indian economy has foreign exchange reserves $ 356 billion. Foreign investments is pouring into India in a big way and that there was a hope to take the growth to double digit,” Nitish Jain of SP Jain School said. Jaitley, who is in Sydney for two days, also met New South Wales Premier Mike Baird. He would address ‘Make in India’ conference tomorrow morning along with Australia’s Special Envoy for Trade Andrew Robb. Finance Minister Arun Jaitley said India needs a lot of Foreign Direct Investment (FDI) especially in manufacturing and  infrastructure sectors. He said state governments too are taking keen interest and competing among themselves to have foreign investments in their respective states. They are organising investment summits in this regard, he added. The minister said that the present government has opened various sectors for FDI, including railways and defence, among others. He invited businesses in New South Wales (NSW) to invest and make in India. Jaitley said we want foreign sovereign wealth funds to be part of NIIF, pension and insurance funds in India. The minister was making opening remarks during his meeting with the Premier of NSW Mike Baird in Sydney today. He also highlighted the various initiatives and reforms measures undertaken by the present government to boost the Indian economy which is growing at the rate of above 7.5 per cent.

Speaking on the occasion, Baird expressed keen interest about the investment opportunities in India, particularly in the infrastructure sector. He highlighted the importance of communicating the information to larger business community in Australia to enable them to understand the opportunities available in India. The Premier also informed the Finance Minister that he intends to visit India during the next Vibrant Gujarat summit which is planned to be held in India in January 2017.

SOURCE: The Financial Express

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India business sentiment falls in March: Survey

Indian business sentiment fell for the first time in three months in March as companies faced lower demand amid rising input prices adding to expectations of an interest rate cut by the Reserve Bank, says a survey. The MNI India Business Sentiment Indicator, a gauge of current sentiment among BSE-listed companies, fell to 62.7 in March from 63.5 in February. “It looks increasingly likely that the RBI will cut interest rates at its April meeting. Note, though, that input prices as well as prices charged have been trending higher recently, which will likely limit the extent of monetary easing,” Chief Economist of MNI Indicators Philip Uglow said. The decline in sentiment was led solely by manufacturing firms. In contrast, sentiment among construction firms rose significantly and service sector companies were also more optimistic about overall business conditions, the survey said. “The decline in confidence in March was relatively modest and sentiment is still up from the recent trough in December. Importantly most key measures in the survey have stabilised and turned upwards in recent months following the trend decline that has been in place since September 2014,” Uglow added. In contrast with last month, fewer companies reported an increase in both new orders and export orders, and they were also less bullish on future demand. The survey noted that firms faced higher prices for their inputs and consequently, companies raised the prices they charged and expected them to increase further in the coming three months. Another factor that added to companies’ outlays was the depreciation of the rupee. Companies said that this made their imports more expensive. The indicator measuring the effect of the rupee exchange rate fell further into contraction to 46.3 from 48.4 in February, the survey added.

SOURCE: The Financial Express

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RBI, Sri Lankan central bank sign $700 million currency swap agreement

The Reserve Bank of India said on Tuesday it would allow its Sri Lankan counterpart to draw up to $700 million over a maximum period of three months under a new special currency swap agreement signed by the two central banks. The Reserve Bank of India (RBI) has previously provided currency swaps to the Central Bank of Sri Lanka, including plans to extend a $1.5 billion agreement by one year. Sri Lanka is seeking a loan of $1.5 billion from the International Monetary Fund ( IMF) to boost foreign exchange reserves and help avert a balance of payments crisis. The country has seen its foreign exchange reserves depleted by the central bank's defence of its rupee currency, as it struggles with heavy debt piled up under the previous government.

SOURCE: The Economic Times

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External account worries

The Reserve Bank of India has released data for India's balance of payments in the third quarter of 2015-16 - the months between October and December, 2015, inclusive. The headline news was good: that the current account deficit, or CAD, narrowed to $7.1 billion in that period, which amounts to 1.3 per cent of gross domestic product or GDP. The CAD for the equivalent quarter of 2014-15 was $7.7 billion, or 1.7 per cent of GDP. The trade deficit, at $34 billion, was $4.6 billion less than in the equivalent quarter of 2014-15 and $3.4 billion less than in the second quarter of the current financial year. A cursory examination of these numbers would suggest that India's external sector is strong, and there is no cause for worry. This conclusion would also fit with the intuition that India, as a major commodities importer, would in general benefit from the long downturn in the global prices of commodities.

However, a closer look at the numbers suggests that any such confidence might be misplaced. In fact, there are three significant weaknesses in India's external account, all of which have been highlighted by the data released by the RBI. The most obvious is the weakness in exports. Exports of goods brought in $64.9 billion in Q3, 2015-16, down by $15.2 billion from the equivalent quarter in the previous year. This is not entirely due to lower fuel prices. Exports of petroleum, oil and lubricants fell in value by only $7.6 billion. In other words, exactly half of the decline in exports was due to non-oil goods. The continuing weakness in India's non-oil exports is problematic, as it is happening in a time in which many peer countries are growing their exports, such as Bangladesh and Vietnam. The structural changes needed to render Indian exports competitive are clearly not yet in place. If export growth does not revive soon, then there is a significant weakness at the heart of India's external account.

Two other specific sectors are worthy of mention as causing concern. One is remittances from overseas Indians. The country received remittances from overseas Indians totalling $14.8 billion during October-December, 2015. This was the lowest in 18 quarters. In the corresponding months of the previous year, remittances had been $15.97 billion; in the previous quarter of 2015, remittances had been $15.9 billion. It is likely that weaker oil prices have hit the incomes of Indians in the Gulf states. This, again, moderates the positive effect that low fuel prices have had on the CAD. And then there is the deceleration in services exports, particularly software exports and business services exports, which together account for more than half of services exports. In software exports, growth is barely positive; in business services exports, there is a decline. This again indicates that the commodity downturn should not lead to complacency about India's balance of payments situation. It is true that, currently, low fuel prices and a sharp increase in foreign direct investment mean that the situation appears comfortable. But both these variables cannot be controlled by policy. If they reverse, then the comfort on this account goes away. The government must work harder to counter the decline in exports of both goods and services.

SOURCE: The Business Standard

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Traders to seek more time for e-filing of VAT papers

In a hurriedly convened meeting, industry bodies and trade associations have decided to appeal to the State government for postponement of online filing of VAT documents. “We want it deferred by four months, until after the Assembly elections in the State,” D Nandakumar, President, Indian Chamber of Commerce and Industry, Coimbatore (ICCIC), said.

Lack of training

Stating that they were still not conversant with online filing and that only around 1,500 had undergone training out of over one lakh assesses in this zone, the ICCIC president said that there were plenty of issues that had to be resolved in the new system. With just a day left for implementation of the Total Solution Project (TSP) of the Commercial Taxes department (it is expected to go live from April 1), industry associations, fearing hitches in switch over to the online system of filing, said that even the department staff have not be fully trained yet. The department has been creating awareness, conducting training programmes (in batches) for the members of various trade associations here. “We realised some practical difficulties in adoption only when we attended the training and have represented the same to the government,” said Codissia President EK Ponnuswamy.

Small units’ plea

Representatives of small and micro units said that they could ill-afford to buy a computer and engage a systems person fulltime to make the entries and file documents online. Ponnuswamy added that the MM Form for transporters lacked clarity and penalty clause for tax credit rather heavy making the old method more user-friendly. Association sources said that their views were not sought before evolving the TSP system. “We understand that the government wants to plug revenue loss, but there are practical issues in implementation,” the representatives of various associations said.

SOURCE: The Hindu Business Line

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Global Crude oil price of Indian Basket was US$ 36.45 per bbl on 29.03.2016 

The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 36.45 per barrel (bbl) on 29.03.2016.

In rupee terms, the price of Indian Basket decreased to Rs 2426.11 per bbl on 29.03.2016 as compared to Rs 2473.36 per bbl on 28.03.2016. Rupee closed stronger at Rs 66.56 per US$ on 29.03.2016 as against Rs 66.67 per US$ on 28.03.2016. The table below gives details in this regard:

Particulars

Unit

Price on March 29, 2016 (Previous trading day i.e. 28.03.2016)

Pricing Fortnight for 16.03.2016

(26 Feb to 11 Mar, 2016)

Crude Oil (Indian Basket)

($/bbl)

36.45

34.82

(Rs/bbl

2426.11            (2473.36)

2356.62

Exchange Rate

(Rs/$)

66.56                 (66.67)

67.68

SOURCE: PIB

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Japanese fabric makers eager to enter large market in Middle East

With many Made-in-Japan fabrics, featuring cutting-edge, high-performance materials, have gained popularity for their soft and rich texture and wrinkle-resistant convenience and also economic sanctions to Iran have been lifted, fabric manufacturers are eager to enter the large and promising Middle East market. Japan's Mitsubishi Rayon, Kuraray and other leading fabric makers are getting ready to boost sales of their quality materials to the Middle Eastern market, to be used for traditional garments. Mitsubishi Rayon will start enhancing its sales chain in the Middle East as early as this year, hoping to tap into the strong demand for fabrics for abaya. The company currently exports to Saudi Arabia and Dubai its unique tri-acetate fabric, of which about 10% is used for abaya. Prices of these garments -- black "abaya" for women, and men's white "thobe" robes -- can cost from a few dozen to a thousands dollars each. Japanese fabrics are a popular choice for expensive items.

According to Kuraray, fabrics from Japan sell for at least $5 per meter, more than double the price of those from Indonesia and South Korea. Japan supplies some 30% of materials used for thobe, and about 10% for abaya. Mitsubishi Rayon's silk-like tri-acetate has also become recognized as one of the finest such fabrics in the Middle East. Keiichi Uno, a board member of Mitsubishi Rayon Textile, has high expectations for Iran's market of 70 million people. Following the scrapping of sanctions, demand for high-quality clothing materials will surge, he said. It has laid out a sales target for its subsidiary Kuraray Trading at 130 billion yen ($1.14 billion) for the year ending December 2017 as Kuraray, already accounts for half of the abaya fabric supplied by Japanese manufacturers. The company has begun selling its soft and wrinkle-resistant fabrics for thobe, in Dubai and other locations. It plans to boost shipments of garment fabric to the Middle East by 30 percent.

SOURCE: Yarns&Fibers

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Vietnamese deputies push for export-import tariffs law

Vietnamese law makers have called for the draft law on export-import tariffs to be adopted as soon as possible during their ongoing session of the national Assembly (Parliament). National Assembly deputies said the law will lay a legal foundation to realise commitments regulated in the Trans-Pacific Partnership (TPP) as well as other existing free trade agreements (FTAs), the Vietnamese News Agency has reported. Vietnam has so far joined 10 FTAs and other deals to cut tariffs and make the market more open. During a recent meeting of the deputies, they also discussed the imposition of trade remedies that allow governments to take action against imports that damage a domestic industry. A number of lawmakers called for the measure to be stipulated in the law to protect domestic manufacturing and consumers. Deputy Nguyen Ngoc Bao emphasised the need to consider the market landscape when taking the measure.

SOURCE: Fibre2fashion

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Egypt PM: Govt supports textile industry

Prime Minister Ismail Sherif stressed on Monday 28/3/2016 the government's full support for the industry file as a development drive in the coming period, especially all kinds of textile industries. The prime minister called for drafting a comprehensive plan to develop the industry to be submitted for discussion during a Cabinet meeting Tuesday, Cabinet Spokesman Hossam Qawish said. During a meeting with the governor of the Central Bank of Egypt, the ministers of trade and finance, the head of the Federation of Egyptian Industries and representatives of textile companies, Ismail said urgent measures will be taken to develop and encourage textile industries to increase their exports. The industry covers all working segments, mainly women, and is associated with other small and micro enterprises, he added. He said studies for establishing a textile city in Minya have to be completed soon. The meeting also addressed the main obstacles facing textile industries.

SOURCE: State Information Service

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Thailand to become a gateway for fashion industry of Asia

Thailand’s strengths goes beyond an attractive tourist destination to become a gateway for the fashion industry due to its global reputation for fashion design and production. With the hosting of the 34th Bangkok International Fashion Fair from March 9 to 13, it proves they are ready to be a fashion platform and trend leader, said . Malee Choklumlerd, director-general of the DITP (Department of International Trade Promotion, Ministry of Commerce). According to DITP, Thai designers and manufacturers received good responses from both local and international buyers from China, Japan, Korea, and Europe. Thailand, famous for its silk and cotton, has recently diversified into production of synthetic fibers and filaments. Thailand’s textile industry has a complete supply chain from the production of fibers, fabrics, and textiles to apparel, and home and industrial textiles. The theme of the fair this year was “Catching the Creative Spirit,” with a focus on creativity, design, and quality. Some Thai designers and fashion brands are already well-known internationally. Their international success is a result of great talent and inner spirit, as well as strong support from local suppliers, manufacturers, and labor forces. DITP encourages more brands to break into the global fashion scene, and the fair in Bangkok is a great platform to do that. More than 500 companies attended the fair in Bangkok this year to showcase their products and service. Thai silk is famous for its quality, unique designs, and affordability. One of the notable Thai brands at the Bangkok fair was Greenville Silk, which produces innovative silk fabrics and silk products. The company is owned by Thanapaisal R.O.P., which is a family-owned business with over 100 years of experience in cotton and silk production.

Pilan Dhammongkol, the owner of Thanapaisalm, the third generation of his family’s textile business praised the government-sponsored programs that aimed to advance the Thai textile and garment industries. The government hired a team of Italian fashion consultants who specialize in weaving, designing, dyeing, and finishing to advise Thai textile companies. Pilan was one of the entrepreneurs who was inspired by these Italian experts, started to focus more on the quality of the fabric to differentiate his brand. Pilan said that Italians do not focus on mass production, they focus on creativity. They take care of the fabric and they make it really soft. In technical terms, it is called mechanical finishing, massaging the fabric. The Thai textile industry is expected to grow further in coming years with significant private sector technology investments and government policies to improve textile production, designing skills, and supply chain management.

Apart of this Thailand also enjoys a strategic location and serves as a gateway to the heart of Asia. The country offers convenient trade with China, India, and the countries of the Association of Southeast Asian Nations (ASEAN). Thailand is the second-largest economy in ASEAN and a major player in the regional value chain for key manufacturing industries, including textiles. Thailand is an export-oriented economy with exports accounting for around 65 percent of Gross Domestic Product (GDP). To promote exports, the Ministry of Commerce developed six-year international trade strategies. One of the government’s strategies is to promote Thailand as the regional hub of ASEAN in terms of trade and investment, another strategy implemented by the Thai government is to improve the competitiveness of the local private sector. said Somdet Susomboon, assistant director-general of DITP. ASEAN, with a population of more than 600 million people and a GDP growth of 6 percent, is a highly attractive market for Thai industries like textiles.

SOURCE: Yarns&Fibers

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Vietnam textile firms remain passive

Việt Nam’s textile and apparel sector remained passive in global value chains, said Nguyễn Cẩm Tú, deputy minister of industry and trade, at a workshop yesterday in Hà Nội. The workshop discussed ways to promote the participation of APEC small- and medium-sized enterprises (SMEs) of textile and apparel global value chains. The event aims to support the deeper and more effective integration of SMEs into the APEC region, said Tú. It also aims to enhance the participation of SMEs in global value chains (GVCs) in general and the apparel sector in particular. The value chain follows the creation of products or services through different production phases, including physical transformation, the input of various manufacturing services, the distribution of products to consumers and their disposal after consumption, the deputy minister explained. These activities can be conducted within the enterprises or among different enterprises of a particular geographical area. “In fact, the GVCs are a new and more comprehensive approach to international divisions of labour,” Tú said. “It means that any enterprise participating in the process of manufacturing can be considered to participate in the GVCs,” he added. However, access to international divisions of labour based on GVCs would help enterprises have a better understanding of their position in the global market, and therefore they can actively select appropriate phases to maximise their benefits, he said. It is clear that enterprises in general and SMEs in particular must actively participate in GVCs directly or indirectly, he said.

Phạm Quỳnh Mai, deputy director of the Multilateral Trade Policy Department under the Ministry of Industry and Trade, did not hesitate to discuss the difficulties faced by the textile and apparel sector despite its fast growth. The sector is still depending on raw materials and materials imported form foreign countries, especially China. “This will have a big impact on the country’s textile and apparel sector if the market has disadvantageous changes,” she said. To access markets, enterprises need strategies and knowledge, while SMEs should sign design and outsourced manufacturing contracts with large enterprises to learn from their experiences, said Nguyễn Hương Trà, a SME development expert at the workshop.

SOURCE: The Vietnam News

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