The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 25 FEBRUARY, 2022

NATIONAL

INTERNATIONAL

SRTEPC urges FinMin to maintain strict Rules of Origin under Indo-UAE FTA

The Synthetic Rayon Textiles Export Promotion Council (SRTEPC) has called upon Indian Government should maintain strict Product Specific Rules of Origin under the Rules of Origin in case of the India – UAE FTA. During an official meeting with the Finance Ministry officials, Mr. Dhirubhai Raichand Shah, SRTEPC Chairman, highlighted that through there is no substantial import of MMF textiles from UAE to India, since China has huge trade infrastructure and access to Tax Free Trading zone, the Chinese textiles may flood in Indian markets via UAE/ Dubai. Therefore, it may be suggested that Indian Government should maintain strict Product Specific Rules of Origin under the Rules of Origin in case of the India – UAE FTA, he reiterated. He informed that currently, the annual exports of MMF textiles to UAE are around US$ 450 million and fabrics are the most dominated products. UAE stood as the leading market for Indian MMF textiles during 2016-17 with exports of around US$ 650 million. While exporting to UAE from India 5% duty is applicable across MMF textile value chain. If we get duty free market access in the UAE market then, it is projected that over a period of around 5 years, we will be able to surpass exports of US$ 650 million per annum. During the current financial year 2021-22 SRTEPC has been given an export target of US$ 289 million and by April- January of which the council has achieved around US$ 220 million which is about 76% of the target. “We are confident to meet the target by March 2022,” he added. For the next financial year 2022-23, the target set for SRTEPC segment is US$ 310 million. In view of the signing of the Trade Agreement between Indian and UAE, we are hopeful of achieving the export target in 2022-23 also. The Agreement with UAE will be strategic to enhance of exports to not only the GCC countries but to the African and some of the CIS and East European countries also. These growing exports as projected, are likely to result in generation of employment of projected around 35,000 additional manpower @ 15 persons with Rs. 1 crore of export turnover, in the MMF textiles segment, Mr. Shah said

Source : Tecoya Trend

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Multiple interventions by the Government to enhance Local Value Addition have benefitted not only the large Industries but also the MSMEs, says Shri Piyush Goyal

Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textiles, Shri Piyush Goyal has said the Industry has responded well to the multiple interventions by the Government to enhance Local Value Addition which has benefitted not only the large industries but also the MSMEs. Chairing a review meeting of the Steering Committee on Advancing Local value-add & Exports (SCALE) here today, he emphasised that these efforts are leading to greater employment generation in the country. During the meeting Shri Goyal highlighted the need for exploring innovative ways to increase Local Value Add in critical sectors of Manufacturing amidst existing disruptions in the worldwide value chain. This will enhance the presence of India in emerging global value chains, he added. Industry and exports representatives from various sectors including Auto Components, White Goods (ACs, Electronics & TV), Semiconductor Manufacturing, Plastics, Furniture, Bicycles & e-cycles, Batteries, Leather & Footwear and Fisheries participated in the deliberations. MoS (Commerce & Industry) Shri Som Parkash, Secretary, DPIIT, Shri Anurag Jain and Shri Rajiv Singh Thakur, Additional Secretary, DPIIT participated in the meeting. SCALE Committee members who attended the meeting included Dr. Pawan Goenka (Chairman, SCALE Committee), Shri Chandrajit Banerjee, Director General, CII, Shri Arun Chawla, Director General, FICCI, Shri Deepak Sood, Secretary General, ASSOCHAM, Shri Deepak Bagla, CEO, Invest India, Shri Salil Singhal, Chairman and MD, PI Industries, Shri Seshagiri Rao, JMD & Group CFO, JSW Steel, Shri Anil Agrawal, Additional Secretary, DPIIT, Dr. Amiya Chandra, Addl. DGFT, Shri Manish Sharma, Chairman, FICCI Electronics & White Goods Manufacturing Committee and President & CEO, Panasonic India Pvt. Ltd., Shri Vikram S. Kirloskar Vice Chairman, Toyota Kirloskar Motor, Shri Jalaj Dani, Chairman, Addverb Technologies Pvt. Ltd and Co-promoter, Asian Paints Ltd. and Smt. Manmeet K. Nanda, Joint Secretary, SCALE and Brand India Cell, DPIIT (Member Convener, SCALE Committee).

Source: PIB

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Germany can soon be one of India’s top trade partners

There’s a lot that unites India and Germany. Both are leading democracies and share a passion for liberal thought, ingenuity and social inclusivity. The land of Beethoven, Karl Marx, Nietzsche and Schopenhauer stands out for its pursuit of excellence in automotive design, engineering, electronics, culture and the arts. Just as Indians are wowed by the open-air concerts, exhibitions, architecture and heritage walks of Germany, Bollywood is among India’s biggest cultural exports to the EU country. Traditional healing practices appeal to people in both countries. Germany and India have pacts to promote ayurveda, yoga and naturopathy, unani, siddha and homoeopathy (Ayush). According to a study by market research institute Gesellschaft für Konsumforschung, there are over 3 million yoga practitioners in Germany. To appreciate Germany’s brand essence, we need to understand what has gone into creating its position of leadership. Battered by two World Wars, it was Germany’s resilience and a work-focused culture that placed it in the global spotlight. To bounce back from covid disruptions, aspirations will need to be aligned with resilience, and collaborations between the two countries could open up new revenue streams and boost economic recoveries. Though India and Germany have a trade history of over 500 years, this year marks 66 years of AHK Indien, the Indo-German Chamber of Commerce (IGCC), and we look forward to new ways to enhance cooperation between the two. More than 1,800 German companies have business relations with India, the majority of which have subsidiaries or joint ventures. Germany has been the 7th largest foreign direct investor in India since January 2000. German FDI in India from April 2000 to September 2021 stood at $13.4 billion. There are more than 1,600 Indo-German collaborations and over 600 IndoGerman joint ventures in operation. German firms have created hundreds of thousands of job opportunities in India. Nearly 565 Indian companies are in Germany and they have added to its growth story. Despite the pandemic, Indo-German trade increased by 19% in the first 11 months of 2021 over 2020. Germany is India’s 6th largest trade partner. Among the significant Indian exports to Germany are chemicals, textiles, apparel and machinery. Important German imports to India include machinery, vehicles and chemicals. Bilateral ties are on the upswing in almost every area. Prime Minister Narendra Modi and German Chancellor Olaf Scholz have sought to deepen mutual ties. The two countries have pacts on metros, Namami Gange, green transmission lines, smart cities, high-speed railways and solar rooftop projects. The two leaders have agreed to diversify bilateral cooperation and to focus on collaborations for climate action and green energy. The importance of the relationship is highlighted in the ‘Indo-Pacific Guidelines’ adopted by the German government in September 2020, covering various avenues from security to open trade and sustainability. Technology expertise has always been the hallmark of German companies, with top brands like Mercedes-Benz, Volkswagen, BMW, Bosch and Siemens and more. Both countries are poised to drive further cutting-edge innovation. The High Technology Partnership Group plays a major role in developing international supply chains and boosting cyber security, both vital to growth. At the IGCC, we work closely with the embassy and general consulates as well as other government entities like the Federal Corporation for International Cooperation (GIZ) and German Trade and Invest (GTAI) to strengthen bilateral ties. Germany is looking for skilled migration and that’s a big zone of opportunity for Indians. The IGCC helps firms spot and train talent. Various programmes have been set up to facilitate business opportunities in India, such as the Fast-Track-System for German companies or the Make-in-India Mittelstand programme. Over the years, bilateral trade has been increasing, and new business opportunities are being discovered. Going by current trends, IGCC believes that Germany will soon emerge among India’s top three trade partners. The exchange of know-how and talent, especially, is expected to deliver transformational change, propelling greater growth. The German government provides funds of around €1 billion each year for economic cooperation with India. German universities already attract the highest number of Indian students among European countries. Besides world-class education, Indian students have multiple work opportunities in an ecosystem that welcomes diversity and encourages critical thinking. The cultural salad bowl of Germany deserves special mention. Germany offers a host of activities for Indian travellers, more than 25,000 castles, assorted nature trails, harbour towns, and a wide range of culinary and hospitality experiences. Covid has exposed the fragility of the world to force-majeure events. There is an African proverb that if you want to go fast, go alone, but if you want to go far, go together. The shared interests of Germany and India in a multipolar global order, with a panoply of ties across culture, trade, education, technology, commerce and climate action, could help usher in even better economic growth as we all move to build back.

Source: Live Mint

India's total FDI inflow of USD 60.3 billion in April-Dec '21 down 10.6 per cent: Govt data

Equity inflow through FDI during April to December period of 2021-22 is USD 43.1 billion which is 16 per cent lesser than the USD 51.4 billion received in FY 2020-21, latest official data shows, even as the government continued to put in place an enabling and investorfriendly FDI policy and remove policy bottlenecks that have been hindering the investment inflows into the country. India received total foreign directinvestment of USD 60.3 billion during April to December 2021 which is 10.6 per cent lower compared to the USD 67.5 billion of FDI received in the same period of 2020-21, according to a government's data. Equity inflow through FDI during April to December period of 2021-22 is USD 43.1 billion which is 16 per cent lesser than the USD 51.4 billion received in FY 2020-21, latest official data shows, even as the government continued to put in place an enabling and investor-friendly FDI policy and remove policy bottlenecks that have been hindering the investment inflows into the country. Manufacturing, computer services, communication services, retail and wholesale trade and education, research and development are the sectors that attracted most of the investment with computer software and hardware leading with the highest FDI equity inflows of USD 10.25 billion. Telecommunications received USD 0.58 billion, services sector retained the lead in FDI inflows with USD 5.34 billion, followed by trading with USD 2.98 billionand automobile industry with USD 5.96 billion. Foreign Direct Investment in construction (infrastructure) activities was to the tune of USD 1.58 billion while in the sector of construction development, townships, housing, built-up infrastructure and construction-development projects, FDI inflows were USD 0.09 billion. Drugs & pharmaceuticals saw USD 1.20 billion FDI, chemicals (other than fertilizers), USD 0.6 billion and hotel and tourism USD 0.64 billion of FDI. According to a UNCTAD report in January 2022, India recorded a 26 per cent decline in FDI in 2021 as compared with the previous year since large mergers and acquisitions deals recorded in 2020 were not repeated. This was amidst a rebound in global FDI flows in 2021, up 77 per cent to an estimated USD 1.65 trillion, from $929 billion in 2020, surpassing their pre-COVID-19 level. The drop in FDI flows to India is also noted by a study by PHD Chamber which highlights net FDI inflows to India at USD 21.2 billion in the first half of 2021-22, lower than USD 23.9 billion in the first half of FY 2020-21. Portfolio investment recorded a net inflow of USD 4.3 billion in H1:2021-22 as compared with USD 7.6 billion a year ago, the report shows. India had significantly gained in robust FDI earnings amid the pandemic, receiving USD 64 billion in FDI in 2020, as per the World Investment Report by UNCTAD released in June last year. It was the fifth-largest recipient of inflows in the world and a 27 per cent increase from USD 51 billion in 2019, pushed up by acquisitions in the information and communication technology (ICT) industry.

Source: Economic Times

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Indo-UAE CEPA to come into effect in one month: Envoy

Ambassador extraordinary and plenipotentiary of the UAE embassy in India, Ahmed Abdul Rahman Albana said at a session organised by Merchant Chamber of Commerce that the bilateral trade between the two countries which was USD 185 million in 1980 has grown to USD 45 billion in 2021. The proposed Comprehensive Economic Partnership Agreement (CEPA) between India and UAE will come into effect in one month, an envoy of the Emirates said on Thursday. Ambassador extraordinary and plenipotentiary of the UAE embassy in India, Ahmed Abdul Rahman Albana said at a session organised by Merchant Chamber of Commerce that the bilateral trade between the two countries which was USD 185 million in 1980 has grown to USD 45 billion in 2021. "The CEPA between the two countries will come into effect in next one month", Albana said and invited Indian companies to his country to invest in areas of manufacturing, defence, food processing and healthcare. He said the UAE government provides golden visa, green visa and entrepreneur visa to foreign citizens to live, work and study in the country. Albana also identified leather, IT, artificial intelligence as the sectors in which UAE and West Bengal can work together.

Source: Economic Times

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Russia-Ukraine crisis: Exporters fear fresh spike in shipping costs

The latest spike in crude oil prices and a potential rise in insurance charges will inflate global shipping costs and have a sobering impact particularly on dry-cargo despatches. International brent crude oil prices topped $105 per barrel, the highest since 2014, in intraday trade on Thursday. Russia’s military action in Ukraine has threatened to further drive up the already-elevated global shipping costs and exacerbate supply-side challenges, exporters told FE. If the conflict lingers on, it can potentially jeopardise prospects of international trade and slow down the pace of India’s export growth, unless the government steps in to soften the blow, some of them said. The latest spike in crude oil prices and a potential rise in insurance charges will inflate global shipping costs and have a sobering impact particularly on dry-cargo despatches. International brent crude oil prices topped $105 per barrel, the highest since 2014, in intraday trade on Thursday. Global freight rates started surging at a fast pace in the aftermath of the Covid outbreak in 2020 and hit a peak of $10,377 per 40-ft container in late September 2021, according to Drewry’s composite World Container Index. The rates started easing thereafter to $9,051 as of February 12 before inching up again to $9,477 by February 24. The index has now gone up by 81% from a year before. “More than our exposure to the Russian market, the high freight cost and container shortages will give India a greater trouble if the crisis escalates and continues for a longer period,” a major garment exporter said. Ajay Sahai, director general and CEO at apex exporters’ body FIEO, however, highlighted that shipping costs have gone through the roof across the globe and India isn’t an outlier. Sahai said the precise impact of the current crisis on India’s trade can be gauged only after the exact nature of western sanctions on Russia is clear. He said a wind-down period should be available in the sanctions announced by the Office of Foreign Assets Control (OFAC) of the US to take care of transactions in the pipeline. Separately, FIEO president A Sakthivel said shipments which are at the ports or in the voyage should be cleared at the earliest and the government should sympathetically consider compensating exporters for any losses to be incurred by them, either during transit of goods or in payment. India’s exports to Russia grew 36% on year until December this fiscal to $2.55 billion but its imports jumped 81% to $6.89 billion, leading to a trade deficit of $4.34 billion for New Delhi. India mostly buys petroleum products, diamonds and other precious stones and fertilisers from Russia. Similarly, it ships out capital goods, pharmaceutical products, organic chemicals and auto parts to Moscow. Ensuring reasonable shipping costs remains crucial to realising India’s lofty merchandise export target of $1 trillion by FY28. Exorbitant shipping costs hurt mainly small and medium exporters. The country’s exports rebounded strongly this fiscal, after a pandemic-induced slump last year, and are likely to cross a record target of $400 billion.

Source: Financial Express

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Government efforts leading to greater employment generation in country: Piyush Goyal

Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Piyush Goyal on Thursday, said that the industry has responded well to the multiple interventions by the Government to enhance Local Value Addition which has benefitted not only the large industries but also the MSMEs Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Piyush Goyal on Thursday, said that the industry has responded well to the multiple interventions by the Government to enhance Local Value Addition which has benefitted not only the large industries but also the MSMEs. Chairing a review meeting of the Steering Committee on Advancing Local value-add and Exports (SCALE) here today, he emphasised that these efforts are leading to greater employment generation in the country. During the meeting, Goyal highlighted the need for exploring innovative ways to increase Local Value Add in critical sectors of Manufacturing amidst existing disruptions in the worldwide value chain. This will enhance the presence of India in emerging global value chains, he added. Industry and exports representatives from various sectors including Auto Components, White Goods (ACs, Electronics & TV), Semiconductor Manufacturing, Plastics, Furniture, Bicycles & e-cycles, Batteries, Leather & Footwear and Fisheries participated in the deliberations. MoS (Commerce & Industry) Som Parkash, Secretary, DPIIT, Anurag Jain and Rajiv Singh Thakur, Additional Secretary, DPIIT participated in the meeting.

Source: PIB

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CEPA to ensure equal opportunities for Indian exporters in UAE

Indian textile industry seems to be very excited about signing the Comprehensive Economic Partnership Agreement (CEPA) with the UAE as it is expected to provide a huge market to Indian textile exporters. India’s neighbours like Pakistan and Bangladesh enjoy tax-free exports to UAE’s markets and now Indian exporters will have equal opportunities. Moreover, UAE can also prove to be a gateway for Indian exporters to access the vast African market. Raja M Shanmugham, president of Tiruppur Exporters Association (TEA), said that currently countries like Bangladesh and Pakistan get facility of free trade in UAE, whereas Indian exports attract a 5 per cent duty. India will have competitiveness with these countries after CEPA is implemented. It can increase India's textile exports by $2 billion in the next five years. According to Shanmugham, Indian textile exports to UAE are currently worth about ₹10,000 crore, or about $1.5 billion. Therefore, Indian exports will more than double in the next five years. Competitiveness of Indian exporters will improve against the exporters from Bangladesh and Pakistan which will be the biggest advantage of this agreement. Currently, Indian products are costlier in the UAE than the products from these neighbouring countries as Indian textile products attract 5 per cent import duty. Another advantage of this agreement for India will be indirect access to the African market. According to industry sources, at present more than 40 per cent duty is levied on exports of textile products from India to many African countries, which is why, exports from India are very limited. The UAE, on the other hand, has an agreement on duty-free trade with African countries. With the recent India-UAE agreement, Indian textile products will reach Dubai and other emirates of the UAE without duty and can further be exported to African markets. Exporters expect that the UAE will become a gateway for Indian textiles to reach African countries. Shanmugham added that the agreement is very encouraging for the industry as it will help Indian textile exporters to cement their position in Dubai which is emerging as a major trading hub. Indian industries and brands have gained huge popularity in recent years due to better relations between India and the UAE.

Source: Fibre 2 Fashion

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Govt officials in huddle to assess impact of Russian aggression on Ukraine on Indian economy

According to a senior finance ministry official, the government is assessing the economic fallout of the fast unfolding situation. Inputs from various ministries are being gathered as to what impact sanctions will have on foreign trade in different sectors, the official said, adding crude oil prices are also being watched. Government officials on Thursday went into a huddle to access the impact of Russian aggression in Ukraine on the Indian economy and began preparing contingency plans to combat a possible spike in inflation due to a rise in oil prices and the country's external trade being impacted. While there are no immediate fears of a supply disruption or trade routes being blocked, oil prices soaring to an over seven-year high of USD 105 per barrel do have a short and medium-term impact on the economy. Finance Minister Nirmala Sitharaman said she will be meeting Prime Minister Narendra Modi to review the situation following Russian President Vladimir Putin authorising a 'special military operation' that saw his forces firing missiles at several cities in Ukraine and landing troops on its coast. A daily revision in prices of petrol and diesel and the monthly change in cooking gas LPG rate was halted as five states including Uttar Pradesh went to polls. The over three-month hiatus combined with the spike in international oil prices -- on which domestic rates are dependent -- has widened the gulf between cost and selling price. Industry sources said the gap is well over Rs 10 per litre, which when passed on after completion of the elections next month would result in a spike in inflation rate which is already above the RBI's tolerance level of 6 per cent. While the petroleum ministry detailed the oil supply situation, the finance ministry officials were busy assessing the broader impact and the fiscal measures the government may have to unleash, such as a cut in excise duty. A separate assessment was being done on the impact of sanctions the US and other countries have imposed on Moscow, on India's trade with Russia and Ukraine. According to a senior finance ministry official, the government is assessing the economic fallout of the fast unfolding situation. Inputs from various ministries are being gathered as to what impact sanctions will have on foreign trade in different sectors, the official said, adding crude oil prices are also being watched. Another top official said oil supply routes are unhindered and there was abundant stock available in the market. "Our suppliers are in the Middle East, Africa and North America, who are untouched by the conflict and they continue to supply oil and gas as normal." Prices, however, are of concern as they will stoke inflation. "Retail prices are on hold but ultimately they will have to be increased at some point," the official said. India, the world's third-largest oil consumer, depends on imports to meet 85 per cent of its needs. The imported oil is converted into products like petrol, diesel and LPG. Saudi Arabia, Iraq and other Middle East nations account for 63.1 per cent of all imports. Africa is the second biggest supplier, accounting for close to 14 per cent of all supplies while North America gives 13.2 per cent. Russia makes up for a third of Europe's natural gas and about 10 per cent of global oil production. About a third of Russian gas supplies to Europe usually travel through pipelines crossing Ukraine. But for India, Russian supplies account for a very small percentage. While India imported 43,400 barrels per day of oil from Russia in 2021 (about 1 per cent of its overall imports), coal imports from Russia at 1.8 million tonnes in 2021 made up for 1.3 per cent of all inbound shipments of the dry fuel. India also buys 2.5 million tonnes of LNG a year from Gazprom of Russia. Exporters' body FIEO said the Russia-Ukraine military conflict may have an implication on the country's trade as it could affect the movement of consignments, payments and oil prices. The Federation of Indian Export Organisations (FIEO) said it has asked exporters to hold their consignments to the region or goods that take the Black Sea route. To Russia, Ukraine and other eastern European countries, goods move from the Suez Canal and the Black Sea, FIEO Director-General Ajay Sahai said. Just about 1.6 per cent of all imports that came into India in 2020 were sourced from Russia and about 1.3 per cent of all exports from the country were destined for Russia. Similarly, India accounted for just about 1.5 per cent of all imports by Russia and about 1.7 per cent of all its exports. Bilateral trade between India and Russia stands at USD 9.4 billion so far this fiscal, against USD 8.1 billion in 2020-21. India's main imports from Russia include fuels, mineral oils, pearls, precious or semi-precious stones, nuclear reactors, boilers, machinery and mechanical appliances; electrical machinery and equipment and fertilisers. Major export items from India to Russia include pharmaceutical products, electrical machinery and equipment, organic chemicals and vehicles. India's bilateral trade with Ukraine is at USD 2.3 billion so far this fiscal, as against USD 2.5 billion in the last fiscal. The main items of Indian import from Ukraine are agriculture products, metallurgical products, plastics and polymers, while pharmaceuticals, machinery, chemicals and food products are the major Indian exports to the country. FIEO Vice-President Khalid Khan said if the military operation continues for a long time, it will have serious implications for exports to and imports from that region. "Oil and gas prices will zoom, there could be payment delays for traders," he said. Stock markets were awash in red and the Indian currency slumped against the dollar on Thursday amid Russia's attack on Ukraine pushing investors to seek refuge in safe-haven assets.

Source: Economic Times

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DPIIT Post Budget Webinar - Make in India for the World

DPIIT is organizing a Post Budget Webinar - "Make in India for the World" on March 3, 2022 from 11 a.m. to 5.20 p.m. The objective of the Webinar is to sustain momentum of Union Budget 2022-23 by synergizing with various initiatives taken so far in this sector, and to create a sense of ownership by all stakeholders in implementation. Why to Attend? A draft of the structure of the webinar is enclosed for your kind reference. Prime Minister will deliver a Special Address in the Webinar. Apart from the Hon’ble Prime Minister, various Secretaries to the Government of India would grace the webinar. The webinar would have sessions on "Paradigm Shift in Manufacturing in India @ 100”, “Realizing India’s Trillion Dollar Goal in Export", “MSMEs as the Growth Engine for the Indian Economy”. The webinar would have discussions around various key sectors particularly Industry 4.0, Auto and Auto Components, Telecom, Steel, Pharma & Medical Devices, Textiles, Drones, Electronics, Agriculture & Food Processing, Textiles, Addictive Manufacturing, Robotics, Furniture, Leather & Footwear, Gems & Jewellery, Textiles, Food Processing.

Source: Krishi Jagran

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Indian economy poised for recovery, but high crude prices worrisome: CEA

We are not unique to the phenomenon of uncertain growth and high inflation due to the pandemic. Developed countries are also facing the same problem," he said. Chief Economic Advisor (CEA) V Anantha Nageswaran on Thursday said that the Indian economy is now poised for recovery but high crude oil price is a cause for concern. The banking sector in the country is stable, capital is available and credit offtake is poised to take off, he said at a webinar organised by Bharat Chamber of Commerce. "We are not unique to the phenomenon of uncertain growth and high inflation due to the pandemic. Developed countries are also facing the same problem," he said. The budget for 2022-23 has been made keeping in mind that the price of crude oil will be around USD 75 per barrel. But due to the conflict between Russia and Ukraine, the price of Texas crude is now USD 96 per barrel. "Its impact on the Indian economy will depend how long this high.price will remain," Nageswaran said. According to him, inflation and purchasing power is a worldwide problem. This has been due to rise in shipping costs, high container costs and high oil prices. In India inflation rates are hovering around 5.2 per cent at the moment. "But, I feel it should remain within four to six per cent in the next fiscal which the RBI is targeting," he said. The CEA said the market has begun to correct in India. "Activity levels in some industries have crossed the pre-pandemic levels. But the services sector is yet to recover". Regarding private sector investment scenario, he said it is yet to pick up due to the pandemic cloud which is still there. It will pick up when consumption levels increase. "But the capital expenditure plan in the budget is higher in 2022-23. This has been done to fill in the void. In fact, capital expenditure by the states have also increased" Nageswaran said. On lower allocation towards MNREGA in the budget, he said it is a demand-driven programme. "It has been done hoping that economy will recover and the demand for MNREGA funds will drop. But if there is demand for the programme, funds will be provided for it". According to the CEA there are buffers in the budget. "I expect recovery to start from second half of next fiscal. The nominal GDP growth has been targeted at 11 per cent. With inflation at four per cent, the real GDP growth will be seven per cent. He said that for India to achieve USD five trillion economy, the share of agriculture, manufacturing and services should be in the ratio 20:30:50 in the country's GDP.

Source: Economic Times

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Revamping China-Bangladesh Trade

It was expected that with the announcement of July 1, 2020 for more duty-free quota-free access of Bangladeshi products to the Chinese market, bilateral trade, especially export from Bangladesh will be revamped. That did not happen. Bangladesh has huge trade deficit with China. Despite the fact that bilateral trade favours China heavily, Bangladesh has enormous potential that has yet to be realised. With the new extension of duty-free and quota-free access to China, we need to redouble our efforts with required administrative, regulatory and infrastructural support. According to the notice of Tariff Commission of the State Council of China on June 16, 2020, zero tariff is applicable to 8256 products originating from Bangladesh (among the total 8549 products). Of these, 5161 items are marked as " Beneficiary Country LDC", 2911 items marked as "Beneficiary country ILDI" and 184 items marked as " Beneficiary 2LD2". China has divided LDC countries in this way. China imported goods worth $2.10 trillion in the first nine months of 2021 and exported $ 2.45 trillion during the same time. As the global economy bounced back, Chinese exports have benefited from the rising global market demand. The WTO predicted that global merchandise trade volume would grow 10.8 per cent in 2021. Bangladesh can earn $21 billion if it can clutch merely a 1 per cent share of China's import. In comparison of Bangladesh's export with other countries it is seen that Vietnam exported USD 49 billion, India USD 19 billion, Malaysia $ 38 billion, Thailand $ 30 billion in 2020-21, while Bangladesh exported only $ 680 million in the period. From the statistics it is seen that in 2016-17 export was about a billion from Bangladesh, but in the following year export declined. Among the important items of Bangladesh's export are textile accessories, rawhide, footwear, cotton waste, iron and steel waste, wood charcoal, fish and fisheries products, plastic articles, copper articles. Interestingly, China imports similar products from the above mentioned countries in a huge quantity, say, more that billion dollars where Bangladesh's export is meager, about 10-40 million US dollar. We have seen that after the emergence of COVID China has introduced a number of health safety related regulations, especially relating to food products. Very recently, General Administration of Customs China (GACC) has introduced a policy of compulsory registration for food products, with different levels of GACC requirements covering almost all types of imported food items. Some items exported from Bangladesh require this registration, such as -- fish, vegetables and vegetable products and a number of primary and processed food products. Exporters have started taking registration. Concerned export supporting organisation should extend all support so that the registration process is completed soon. Initially, there was an issue raised by the exporters about Certificate of Origin, and it was heard that as the forms are being published from China, there are sometimes scarcity of getting the forms. However, the problem have been resolved now as the embassy itself is now supplying the forms. In all types of duty free access, rules of origin are a major criterion. In case of China, in order to be eligible for duty-free benefit under DFQF, export goods from the LDCs will have to comply with the following rules of origin: goods entirely obtained from or manufactured in the beneficiary country; or incompletely obtained from or manufactured in the beneficiary country but where the final substantial transformation is completed. In case of LDC the value addition is at least 35 per cent, for others it is 40 per cent. In respect of value addition criterion to be met, jute and jute based products, wood charcoal, leather goods, textile products, cotton waste, iron and ore waste, plastic products have the potential to be exported to China. These products are being imported by China from other developing countries. Bangladesh needs to capitalise its potential in exporting these items in substantial volumes. Originating goods of the beneficiary country which are transported to China through other countries or regions, with or without trans-shipment or temporary storage shall be determined as direct consignment, provided that the goods do not enter into trade or consumption there; the goods do not undergo any operation there other than unloading, reloading or any other operations required to keep them in good condition; the goods shall be subject to the control of customs or related government competent authorities in such countries or regions; and the goods which enter other countries or regions shall stay no longer than 6 months. In most of the cases Bangladesh has to depend on other countries for export, which causes delay due to cumbersome policies. Bangladesh needs to address these issues. A valid Certificate of Origin is another requirement. If Customs has received the electronic data information of a Certificate of Origin of a beneficiary country via electronic data exchange system, it is not compulsory for importers to submit a Certificate of Origin for goods of that beneficiary country. For advance ruling goods, importers may submit a Declaration of Origin rather than a certificate, commercial invoice of the goods, transport documents covering the whole route from the beneficiary country to ports of entry in China etc. For goods transported into the territory of China through other countries or regions, importers shall submit certified documents issued by customs authority of that country or region or other documents accepted by China's customs. These documents mentioned above are not compulsory when customs has obtained electronic data information of certified documents via related electronic data system for transshipment. It is clear that electronic customs and port system is another requirement to become an effective exporting country. Bangladesh is a signatory to the Trade Facilitation agreement, however a very few of the provisions have been implemented. Advance ruling policy has been framed but its implementation is not sufficient. Similar is the case for authorised economic operators, the country would need to be sincere for real electronic data exchange LDC graduation has created a lot of opportunities, at the same time a number of challenges. There is no guarantee to get into the EU's GSP+ scheme on expiry of the EBA initiative after graduation from the LDC group in 2026. There is no alternative but to exploit opportunities to increase export to the existing markets. China has contributed a lot towards economic development of Bangladesh. Infrastructure development is one such. We should now go for detailed analysis for identifying potential products for which Bangladesh has capacity to export to the huge Chinese market and at the same time develop required digital infrastructure for exploiting the opportunities.

Source: The Financial Express

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Fabric manufacturer Camira launches revolutionary digital print technology

In an exciting development for the transit industry, Camira Print removes design and colour constraints for bus & motorcoach operators. In a year in which the global company celebrates its 200-year anniversary in mass transit textiles, Camira has signalled its commitment to remaining at the forefront of the industry with the introduction of the innovative Camira Print. Perfectly complementing the manufacturer’s renowned plush weaving capabilities, the launch expands its offering to encompass digital printing – providing customers with an unparalleled level of flexibility and freedom when choosing the optimal textile for their bus or motorcoach interior. Revolutionary design potential Removing many of the design constraints associated with traditional woven textiles, Camira Print fabrics can be created without restrictions on pattern repeats, scale, or colour, as well as significantly reducing lead times and minimum order quantifies. With a variety of design options, customers also have the flexibility to choose from a range of readymade prints in standard colours, opt for custom colours, or create something entirely new - working with Camira’s in-house design studio to develop a totally bespoke creation. Ciara Crossan, Transport Creative Manager at Camira, explains, “We’ve really worked hard to provide customers with a design option for every need. With the Camira Print collection, we have brought together a selection of carefully curated palettes and trendled patterns to provide customers with a readymade range of printed fabrics which can be dispatched within days. For those who would really like to push the boundaries in terms of creativity, there is truly no limit to what is possible with Camira Print – they can create immersive advertising campaigns, recreate photographs, go as big as they like in terms of scale, as bold as they like in terms of colour – this technology really does unlimit so much of what is restricted at the moment.” Plush wool fabric In an appealing blend of tradition and innovation, each Camira Print creation is applied to a lightweight wool plush fabric – the construction on which Camira’s rich heritage is built. With a velour finish, the textile has been created exclusively for digital print and is woven from naturally sustainable wool to deliver saturated colour and comfort. High technical performance Meeting the industry’s key technical performance standards, Camira Print textiles achieve the North American flammability regulation FMVSS 302, and the European flammability regulation, ECE Reg 118.03. Indicating high durability, the newly launched textile capability also has an abrasion performance of over 100,000 rubs. “A light shed moment for the industry.” Jonathan Thompson, Director of Transport at Camira, comments on the launch, “We’re incredibly excited to introduce Camira Print to the mass transit market; not only is it a first for Camira, but also for the industry. Providing an unmatched level of design, colour and manufacturing freedom, customers can create truly unforgettable fabrics which it has just not been possible to create – until now. Truly a light shed moment for the transportation industry, Camira Print will revolutionise the way in which fabrics are designed and made. We can’t wait to see the ways in which our customers use this new technology.”

Source: Mass Transitmag

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EU Commission adopts due diligence law proposal – here’s what it means for textiles and apparel

The European Commission has adopted a proposal for a directive on corporate sustainability due diligence, meaning clothing brands selling and operating within the bloc will be held to account over the impact of their operations on the environment and people working within their supply chains. However, there are some exceptions. Under the EU Due Diligence law, companies will be required to identify and, where necessary, prevent, end or mitigate adverse impacts of their activities on human rights, such as child labour and exploitation of workers, and on the environment, for example pollution and biodiversity loss. The EU Commission says that for businesses, the new rules will bring legal certainty and a level playing field. While for consumers and investors, they will provide more transparency. The proposal establishes a corporate sustainability due diligence duty to address negative human rights and environmental impacts, it adds. Industry stakeholders have been calling for a due diligence law for some time that holds companies responsible for the happenings in their supply chains, and that goes beyond voluntary action. Countries including Germany and The Netherlands have implemented their own versions. But in 2020, voters in Switzerland moved to reject a proposal that would have held businesses liable for human rights and environmental violations in their supply chain operations. The new due diligence rules will apply to the following companies and sectors: EU companies • Group 1: all EU limited liability companies of substantial size and economic power (with 500+ employees and EUR 150 million+ in net turnover worldwide). • Group 2: Other limited liability companies operating in defined high impact sectors, which do not meet both Group 1 thresholds, but have more than 250 employees and a net turnover of EUR 40 million worldwide and more. For these companies, rules will start to apply 2 years later than for group 1. Non-EU companies: Active in the EU with turnover threshold aligned with Group 1 and 2, generated in the EU. But small and medium-sized enterprises (SME) are not directly in the scope of the proposal. This proposal applies to the company’s own operations, their subsidiaries and their value chains (direct and indirect established business relationships). In order to comply with the corporate due diligence duty, companies need to: • integrate due diligence into policies; • identify actual or potential adverse human rights and environmental impacts; • prevent or mitigate potential impacts; • bring to an end or minimise actual impacts; • establish and maintain a complaints procedure; • monitor the effectiveness of the due diligence policy and measures; • and publicly communicate on due diligence. More concretely, this means more effective protection of human rights included in international conventions. For example, workers must have access to safe and healthy working conditions. Similarly, this proposal will help to avoid adverse environmental impacts contrary to key environmental conventions. Companies in scope will need to take appropriate measures (‘obligation of means’), in light of the severity and likelihood of different impacts, the measures available to the company in the specific circumstances, and the need to set priorities. National administrative authorities appointed by member states will be responsible for supervising these new rules and may impose fines in case of non-compliance. In addition, victims will have the opportunity to take legal action for damages that could have been avoided with appropriate due diligence measures. Group 1 companies need to have a plan to ensure that their business strategy is compatible with limiting global warming to 1.5 degrees Celsius in line with the Paris Agreement. To ensure that due diligence becomes part of the whole functioning of companies, directors of companies need to be involved. This is why the proposal also introduces directors’ duties to set up and oversee the implementation of due diligence and to integrate it into the corporate strategy. In addition, when fulfilling their duty to act in the best interest of the company, directors must take into account the human rights, climate change and environmental consequences of their decisions. Where companies’ directors enjoy variable remuneration, they will be incentivised to contribute to combating climate change by reference to the corporate plan. The proposal also includes, accompanying measures, which will support all companies, including SMEs, that may be indirectly affected. Measures include the development of individually or jointly dedicated websites, platforms or portals and potential financial support for SMEs. In order to provide support to companies the Commission may adopt guidance, including about model contract clauses. The Commission may also complement the support provided by member states with new measures, including helping companies in third countries. Aim of due diligence proposal The aim of the proposal is to ensure that the Union, including both the private and public sectors, acts on the international scene in full respect of its international commitments in terms of protecting human rights and fostering sustainable development, as well as international trade rules. As part of its ‘Just and sustainable economy package’, the Commission has also presented a Communication on Decent Work Worldwide. It sets out the internal and external policies the EU uses to implement decent work worldwide, putting this objective at the heart of an inclusive, sustainable and resilient recovery from the pandemic. “This proposal aims to achieve two goals. First, to address consumers’ concerns who do not want to buy products that are made with the involvement of forced labour or that destroy the environment, for instance. Second, to support business by providing legal certainty about their obligations in the Single Market. This law will project European values on the value chains, and will do so in a fair and proportionate way,” Věra Jourová, vice-president for values and transparency, said. Didier Reynders, commissioner for justice added: “This proposal is a real game-changer in the way companies operate their business activities throughout their global supply chain. With these rules, we want to stand up for human rights and lead the green transition. We can no longer turn a blind eye on what happens down our value chains. We need a shift in our economic model. The momentum in the market has been building in support of this initiative, with consumers pushing for more sustainable products. I am confident that many business leaders will support this cause.” Meanwhile, Thierry Breton, commissioner for the internal market, noted while some European companies are already leaders in sustainable corporate practices, many still face challenges in understanding and improving their environmental footprint and human rights track record. “Complex global value chains make it particularly difficult for companies to get reliable information on their suppliers’ operations. The fragmentation of national rules further slows down progress in the take up of good practices. Our proposal will make sure that big market players take a leading role in mitigating the risks across their value chains while supporting small companies in adapting to changes.” The proposal will now be presented to the European Parliament and the Council for approval. Once adopted, member states will have two years to transpose the Directive into national law and communicate the relevant texts to the Commission. The due diligence proposal’s “shortcomings” While broadly welcomed, there is some concern over the proposal in its current form, namely its high company size threshold, which campaign group the Clean Clothes Campaign says is not in line with international standards such as the UN Guiding Principles on Business and Human Rights. “The EC proposal limits the scope of application to companies with more than 500 employees/EUR150m turnover. This is lowered to 250 employees/EUR40m turnover for companies active in high-impact sectors including textiles, clothing and footwear, but with a further limitation to only “severe adverse impact,” ”it says. Clean Clothes Campaign continues to call for all business enterprises, no matter their size or corporate structure, to be covered by the legislation. “Such thresholds would create a huge black hole where companies can continue operating without real accountability for rights violations in their value chains. They are therefore great news for thousands of small and medium size fashion companies but terrible news for many millions of workers who make the clothes sold in European stores,” says Neva Nahtigal, lobby and advocacy strategist for Clean Clothes Campaign. Another key area where the EU co-legislators need to firmly place rights holders at the centre is in the application of the proposed rules beyond direct suppliers, Clean Clothes Campaign says, adding semi-formal and informal working schemes, as well as unofficial subcontracting and home-based work, must be accounted for in all regulatory measures. “The proposal opened a good pathway that will need to be reinforced to ensure that all workers are protected. Many of the most egregious human rights abuses, including forced labour and wage theft, occur further down the value chain,” says Muriel Treibich, lobby and advocacy coordinator for Clean Clothes Campaign, also noting the commitment to a new legislative initiative prohibiting the placing on the EU market of products made by forced labour that was announced on the same day in the ‘Communication on decent work worldwide for a global just transition and a sustainable recovery’. “The European Union has a unique chance to protect the many millions of people whose labour goes into the products that Europeans use on a daily basis. Among other things, legislators must ensure that companies adapt their own purchasing practices. This is not possible without value chain mapping and traceability which, along with transparency, must be one of the mandatory foundations for due diligence overall.” Clean Clothes Campaign calls on the European Parliament and the Council of the European Union to “seize this opportunity and adopt legislation that will adequately respond to the fundamental challenges and structural inequalities of today’s value chains.” The European Commission did not respond to Just Style’s request for comment at the time of press.

Source: Just-Style

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