At CII Manufacturing Conclave, Union Minister Piyush Goyal called upon industry to invest heavily in labour intensive sectors to boost global economic recovery. India will play an “increasing role” in the revival and restoration of international economies in the post-Covid world, said Union Commerce & Industry Minister Piyush Goyal. In his address to the CII Manufacturing Conclave 2022 on Thursday, Goyal said in the “post-Covid world, we are going to see a new world order”. “We do have international geopolitical uncertainties as we see today on the UkraineRussia crisis, but I am very confident that India will play an increasingly important role in the revival and restoration of international economies in the years ahead,” he said, as per an official statement. “Personally I think we can still aim for the $5 trillion economy by 2026 but it’s not possible unless all of you participate with full gusto in this very, very ambitious plan.” He called upon the industry to invest heavily in labour-intensive sectors. “You have the power to lift the millions out of poverty, you have the power to give a better quality of life to the underprivileged. Together we can create not lakhs but crores of jobs in the textiles sector, plastics, footwear, auto components, sports goods, Agri/food processing, there are so many sectors where labour is an important element of cost, that’s our competitive or comparative advantage that we should leverage,” he said at the event.
Source: Fibre 2 Fashion
The commerce ministry has made it mandatory for exporters to file registration-cummembership certificate (RCMC) applications through a common digital portal The commerce ministry has made it mandatory for exporters to file registration-cummembership certificate (RCMC) applications through a common digital portal, a move aimed at promoting ease of doing business for the trading community. According to the Foreign Trade Policy, a Registration-cum-Membership Certificate (RCMC) is required for exporters in order to avail benefits under the policy. Holding the certificate can also help exporters in availing benefits with respect to customs and excise. The certificate is issued by export promotion councils, and commodity boards. According to a communication of the Directorate General of Foreign Trade (DGFT), the electronic platform to facilitate electronic issuance/renewal/amendment of RCMC/registration certificate (RC) has been implemented. The objective of the platform is to provide an electronic, contact-less single window for RCMC/RC related processes. "It is informed that from April 1, 2022, it will be mandatory for the exporters to file RCMC/RC applications (for issue/renewal/amendment) through the common digital portal of e-RCMC platform," the communication sent to all exporters, members of trade, regional authorities, export promotion councils and commodity boards. It has stated that the prevailing procedure of submitting applications directly to the designated registering authorities will continue only till March 31 this year. All regional authorities have been requested to ensure that they are on board on eRCMC portal before March 31. They have also been advised to conduct outreaches and issue suitable advisories to the members/exporters to use the platform.
Source: Business Standard
The Export Credit Guarantee Corporation (ECGC) has decided to withdraw coverage for shipments to Russia with effect from February 25, which is a huge setback for exporters, industry body FIEO said on Saturday. Amid the ongoing conflict between Russia and Ukraine, ECGC in a communication said "based on the near-term commercial outlook, it has been decided to modify the country risk classification of Russia under the short-term and medium-and-long term with effect from February 25." Revising its underwriting policy on Russia, ECGC, a government-owned entity, has now put that country in the Restricted Cover Category (RCC-I) from the earlier 'open cover' category. Open cover categories enable policyholders to obtain cover on a more liberalised basis. Federation ofIndian Export Organisations (FIEO) Director General Ajay Sahai said that ECGC has "suddenly" withdrawn the coverage to shipments for Russia with effect from February 25. "Such action is a huge setback to the exporting fraternity as the fate of cargoes which are at various Indian ports, some after customs clearance, for shipments will not be covered as ECGC has mandated Bill of Lading cut off date till February 25. "Secondly, policies in force hold no good as risks are withdrawn. This immediate act of ECGC is a setback for exporters as political risks are one of the major components which ECGC covers," Sahai said. ECGC Ltd, wholly owned by the Government ofIndia, was set up in 1957 with the objective of promoting exports from the country by providing credit risk insurance and related services. Over the years, it has designed different export credit risk insurance products to suit the requirements of Indian exporters and commercial banks extending export credit. Sharing similar views, Hand Tools Association President S C Ralhan said now ECGC would not cover export shipments meant for Russia and it is a major setback for the exporting community. In the present crisis between Russia and Ukraine, the payments against exports made by Indian exporters are at risk because Russian importers cannot make the payments in US dollars, Ralhan said. If an importer in Russia is willing to pay the outstanding export bills in Indian rupees or Russian ruble, the Indian government should allow the realisation of export bills in Indian rupees or ruble, he added. "In such cases the export incentives should not be denied as the payment is being received in Indian rupees or Russian Ruble due a crisis between two countries," he said.
Source: Economic Times
Export-import communities can submit details of their issues on the DGFT website, on which support is required The commerce ministry on Friday said it has set up a help desk to support and resolve issues of traders on account of the conflict between Russia and Ukraine. Export-import communities can submit details of their issues on the DGFT website, on which support is required. In view of the current international situation, the Department of Commerce and the Directorate General of Foreign Trade (DGFT) have undertaken to monitor the status and related difficulties being faced by stakeholders on Russia/Ukraine trade-related issues. "Department of Commerce/DGFT has operationalised a helpdesk to support and seek suitable resolutions to issues related to India's international trade in this regard with immediate effect," the DGFT said in a trade notice. The status of the matter can be tracked using the status tracker under the DGFT helpdesk services. On Thursday, Russia launched a major military offensive in Ukraine, targeting various cities and military installations that had left the world stunned. Bilateral trade between India and Russia stood 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 semiprecious stones, nuclear reactors, boilers, machinery and mechanical appliances; electrical machinery and equipment and fertilisers. While major export items from India to Russia include pharmaceutical products, electrical machinery and equipment, organic chemicals and vehicles. India's bilateral trade with Ukraine stood at USD 2.3 billion so far this fiscal, as against USD 2.5 billion in the last fiscal. Main items of Indian import from Ukraine are agriculture products, metallurgical products, plastics and polymers, etc., while pharmaceuticals, machinery, chemicals and food products, etc., are the major Indian exports to Ukraine.
Source: Business Standard
The Federation of Indian Export Organisations (FIEO) said, on Friday, that the US sanctions on Russia has increased the uncertainty for exporters, adding that it hoped that a wind-down period would be available under the US Treasury Department’ Office of Foreign Assets Control (OFAC) sanctions, so as to take care of transactions in the pipeline. The apex body for promotion of Indian export has further requested the shipments that are at the ports or in the voyage to be quickly cleared and losses incurred by the exporters, either during transit or in payment, be considered for compensation by the government. “US sanctions on Russia following the hostilities between Ukraine and Russia have added to the uncertainty for exporters and we are advising them to wait and watch as the exact implication of banking & financial sanctions needs to be evaluated," A Sakthivel, president, FIEO said. US President Joe Biden has announced harsh sanctions against Russia after it launched an all-out invasion of Ukraine. Biden said that the sanctions would limit Russia's ability to do business in major currencies such as dollars, euros, pounds and yen. Biden further added that NATO would meet on Friday to map out further measures. He reiterated that the US would not engage in war with Russia, but that it would meet its Article 5 commitments to defend NATO partners. The US has already imposed sanctions on the company in charge of building Russia's Nord Stream 2 gas pipeline. Besides two large Russian financial institutions and Russian sovereign debt along with members of the Russian elite have also been hit with sanctions. Earlier, director-general and FIEO CEO Ajay Sahai said that there is little to be concerned about as far as trade is concerned as there is not much that India exports or imports from Russia. Petro imports from Russia are also minuscule and can be replaced with other markets, Sahai had said. In FY21, India’s exports to Russia stood at $2.6 billion, while imports stood at $5.5 billion. India shipped $469 million worth of pharma products and $301 million worth of electrical machinery to Russia. Petroleum products made up for half of the imports from Russia. However, the $3.7 billion of petroproduct imports is minuscule against India’s overall $150 billion petroproduct imports. Apparel Export Promotion Council (AEPC) chairman Narendra Goenka told Mint that India’s textile trade with Russia and Ukraine was quite limited, and hence, the impact on the sector could be minimal. Overall, textile exports may actually benefit if the tensions strengthen the dollar. The Indian rupee on Thursday had lost nearly 99 paise to close at 75.60 against the US dollar, amid rising geopolitical tension while Brent, the global oil benchmark, breached the $105-a-barrel mark for the first time since 2014. Indian equities in line with global peers were hammered on Thursday after Russian forces invaded Ukraine. European stocks plunged nearly 3%. Sensex crashed 2,800 points, or 4.72%, to end the day at 54,529.91, while Nifty fell 815.30 points to 16,247.95. On Friday, however, Sensex was trading at 55,988.54, higher by 1,458.63 points, while Nifty traded at 16,697.00, up by 449.05 points.
Source: Live Mint
From the next fiscal year, taxpayers must generate invoices on their internal systems or billing software and then report them online to the invoice registration portal. This is required to avail of input tax credit (ITC). E-invoicing will be compulsory for all businesses with a turnover higher than ₹20 crore from April 1, with the Central Board of Direct taxes and Customs lowering the turnover threshold for electronic billing from ₹50 crore. The board issued a notification to this effect Friday. From the next fiscal year, taxpayers must generate invoices on their internal systems or billing software and then report them online to the invoice registration portal. This is required to avail of input tax credit (ITC). If the invoice is not a valid one, ITC on it cannot be availed of by the recipient, and there will be penalties as well, said Bipin Sapra, tax partner, EY India.
Source: Economic Times
Trade and investment can expand, given the complementarities, but rules of origin issues need to be monitored With signing of Comprehensive Economic Partnership Agreement (CEPA) with the UAE on February 18, 2022, India seems to have entered into a new phase of free trade agreement (FTA) negotiations after a break of about a decade. This is the first major FTA — barring the one with Mauritius — inked under the NDA government. It’s true that most of the trade agreements have not delivered the expected results in terms of FTA utilisation rate, market penetration, integration with regional or global production networks, etc. In fact, India has been very cautious when it comes to FTAs. In this context, the India-UAE CEPA has been concluded in a record time with 90 per cent coverage of bilateral merchandise trade between the two economies. This is a positive signal to the prospective FTA partners like the UK, Australia and EU. Given the complementarities in economic structures of the two countries, the India-EU CEPA could be a win-win for both economies. India is highly dependent on oil imports and is an agriculture surplus economy, whereas UAE is an oil rich and agriculture deficit economy. The UAE being an entrepot economy, the CEPA enhances India’s export prospects not only to the UAE but also to West Asia and even Africa regions. The CEPA may help labour intensive exports such as gems and jewellery, textiles, leather goods and also software exports to these regions through UAE. There are opportunities for both the trading partners in aviation, hospitality, logistics, investment, building and construction, financial services and digital trade. India also expects to enhance bilateral investment in potential sectors such as infrastructure, food processing, renewable energy, digital economy, etc. The UAE, on the other hand, sees this as an important opportunity to diversify its oil dependent economy by attracting more investments from India. Both countries anticipate that the CEPA will give a boost to the bilateral merchandise trade, from the pre-Covid level of about $60 billion to $100 billion in the next five years. Key trading partner For India, the UAE is not only the largest trade partner in West Asia but the third leading in the world after China and the US, and the second biggest export destination globally. For the UAE, on the other hand, India is the second largest trade and export partner in the world. However, the size of bilateral trade between the two economies has not shown dynamism over the last 10 years. In the pre-Covid year of 2019, India-UAE goods trade stood at $59.8 billion which was not only slightly lower than the trade value realised during 2018 but significantly lower than the level of bilateral trade in 2012, which was valued at $73.6 billion. While India’s exports to the UAE were at itheir peak in 2011, the imports were at maximum in 2012. During the last five years, India’s exports to the UAE have remained stagnant. It is hoped that with the implementation CEPA the situation will improve. However, given that the UAE is a low tariff economy, the scope of tariff reduction is limited and hence the gains to Indian exporters. For instance, the simple average MFN applied tariff in the UAE was just 4.6 per cent in 2020 while that in India was 15 per cent. In most of the labour-intensive sectors like textiles, clothing, leather, footwear, etc., while the maximum tariff rate is 5 per cent, the average tariff rate is either 5 per cent or less. In other manufacturing sectors such as non-electrical machinery, electrical machinery, transport equipment, which constitute a significant proportion of Indian export basket to the UAE, the maximum tariff rate is again 5 per cent and the average tariff rate is less than 5 per cent. Hence, if we assume that tariff is completely eliminated from all these sectors, the maximum benefit in terms of price competitiveness that will accrue to the Indian exporters is 5 per cent. However, this margin is still not too bad given the fact that the number of UAE’s FTAs is still limited to the Arab countries, most of which do not compete with India in the sectors of its interest. To enhance the utilisation of CEPA it is also important to ensure that the cost of compliance remains at minimum level. Another issue for India is the possibility of surge in imports from the UAE. This is mainly on account of the fact that it is an entrepot economy and re-exports form a large proportion of its gross exports. In the last 10 years, for instance, the share of re-exports in UAE’s global exports has been in the range of 23-55 per cent. The proportion of reexports in its merchandise exports to India has ranged between 48 per cent and 65 per cent. It is imperative for India to not only have strong rules of origin provision under the CEPA but also it must enforce them. It is important to note that to get duty-free access to the Indian market under the CEPA, the required value addition in the UAE has been kept at 40 per cent, which is significantly higher than other FTAs where value addition requirement is generally 30-35 per cent. Hopefully, the CEPA would also have an effective enforcement mechanism in place.
Source: The Hindu Business line
New Delhi will seek duty exemptions for labour-intensive exports, including textiles, besides easier market access for fisheries, pharmaceuticals and agriculture products, during the second round of India-UK free trade agreement (FTA) talks, said two government officials. The negotiations, scheduled to take place between 7 and 18 March, will also explore the possibility of an early-harvest agreement, or a mini FTA, for the short-term, as the two countries continue with the talks to iron out differences on sensitive issues. India is seeking to conclude at least six bilateral trade agreements this year. Last week, New Delhi signed a comprehensive economic partnership agreement (CEPA) with the UAE for zero-duty access to 90% of Indian products. The deal was closed in a record 88 days. “The UK agreement will be broader in scope compared with the one India had with the UAE. Duty cuts on textile and exports from labour-intensive sectors, such as leather, footwear, gems and jewellery, are among India’s 10-12 big-ticket wish-list," said one of the two officials, seeking anonymity. “Marine products will benefit a lot. India is also looking for access to the UK for pharma and agri products. Besides, trade restrictions that are not tariff-related are also being discussed," said a second official, also requesting anonymity. The interim deal is expected to cover 65% of goods, and up to 40% of services for concessional or duty-free access. However, the final agreement may cover 90%-plus products. Queries to the ministry of commerce and industry, and the British high commission in New Delhi remained unanswered till press time. India has a positive trade balance with the UK, but has been losing its market share in certain key products to other developing countries after the withdrawal of the Generalized System of Preferences (GSP). “Therefore, it is in the interest of the industry to get zero tariffs in the UK in sectors (such as apparel) where GSP has been withdrawn," said Arpita Mukherjee, professor, Icrier. Meanwhile, the UK is negotiating access for its services sector, such as legal and accountancy, besides lower tariffs for its Scotch whiskey, which faces 150% duty. In January, both countries had reiterated their commitment to more than double the value of UK-India trade by 2030. India had a $3.3 billion trade surplus with the UK in 2020-21. The UK is India’s seventh-largest export market, accounting for 2.8% of its total exports, as of June 2021. Resolution Foundation, a UK think-tank, said in a report that British firms were set to gain from a “first mover" advantage ahead of the US and European Union (EU) in India as a result of the FTA, which has the potential to overshadow other major UK trade deals. The Joint Statement of the 15th Meeting of the India-UK Joint Economic and Trade Committee said both countries “looked forward to the first shipment of apples and medical devices into India and welcomed the listing of 56 new Indian fisheries establishments".
Source: Live Mint
India Vietnam two-way trade in 2021 surpassed $13 billion for the first time, up by 36.5 per cent over the 2020 figure, the Vietnam Trade Office in India said. Citing general department of Vietnam customs data, it said Vietnam exported $6.25 billion worth of goods in the year—up by 20 per cent year on year—while India’s figure $6.95 billion—up by 56 per cent. Vietnam’s main exports to India in December last year comprised metals ($79.3 million); computers, electronic products and components ($78.8 million), phones and components ($76.7 million), other goods ($75.2 million), machinery, equipment, tools and spare parts ($49.8 million). Those that recorded strong growth included pepper (up by 101 percent), coffee (up by 90 per cent) and rubber products (up by 88 per cent). Plastic raw materials, chemicals, rubber and coal were Vietnamese items that saw the strongest growth in 2021, surging by 231 per cent, 162 per cent and 138 per cent respectively, according to a Vietnamese news agency. Meanwhile, mobile phones and components continued to record the largest export turnover, hitting more than $1.28 billion, accounting for about 21 per cent of Vietnam’s total export value to India, the department said. In December last year, India mainly exported steel, metals, cotton, and machinery and equipment to Vietnam, with respective turnover of $116 million, $37 million, $35 million and $31 million.
Source: Fibre2 Fashion
PM aide’s initiative to reopen trade with India is indeed the need of the hour “Trade with India is the need of the hour and beneficial to both countries … it should open now,” so the PM Adviser on Commerce Abdul Razak Dawood declared last week. About a year ago, he took some practical steps in that direction when he got the Economic Coordination Committee of the cabinet to approve the import of cotton and sugar from India. However, he soon had to retract from that position as some of his cabinet colleagues strongly opposed it due to political tensions between the two countries. It is uncertain if those who opposed it earlier will change their position now that the government is heading into the election year. But maybe the commerce adviser has seen some winds of change, which is why he made this statement. It could be that the decision-makers now understand that it is time for policies based on geo-economics rather than geopolitics. Why is normalising trade with India important for us? First, we have to realise that despite restrictions, trade is still taking place, but it is through other sources such as routing it through the UAE, which is the second-largest source of imports for Pakistan. Getting Indian imports through third countries mean extra costs in transportation, repacking, stuffing and de-stuffing, port charges, and preparing new bills of lading and expenses for the intermediaries. In short, it means higher costs for consumers, who are primarily the users of industrial raw material. Second, it is time for Pakistan to build on the current momentum of growing exports. It will need lots of inputs for this purpose. This input has to be from competitive sources so that exports can be competitive in the international markets. For example, one essential raw material for the textile industry is raw cotton. About seven to eight years ago, Pakistan produced about 12 to 14 million bales, but in recent years, the production has plunged to seven to eight million bales. To meet the shortfall, we have to spend $2-3 billion to import it from far-off sources such as the US and Brazil. The government is keen to double exports of the textile sector from this year’s target of $21 billion to $42 billion over the following three years. Without adequate availability of cotton, achieving such a high growth in exports would remain a mirage. It is not just cotton, but several other raw materials used to be competitively sourced from India. These include organic chemicals, plastic and tanning/dyeing extracts, primarily used by our export-oriented industries. Third, due to various factors, including steep devaluation and spike in international commodity prices, Pakistan has recently been facing high inflation, particularly for food items. In the past, one primary tool against shortages and inflation was through immediate imports from the next-door neighbour. It was not just import, but we also had a good market for export of our excess agricultural produce. This year, we expect a bumper crop of potatoes. The expected output is more than nine million tons compared to an average of five million tons previously. Unless we find export markets, our farmers will face severe financial hardships. India can be one such destination as it is facing shortfall of potatoes. It has already cut import duty from 30% to 10% to encourage imports. This reduction is an opportunity for us to capture the Indian potato market. Also, Pakistan used to export dried dates worth more than $100 million. The stoppage of this export has brought misery for the poor people of Sindh. The resumption of this trade will considerably reduce their poverty. Fourth, India’s imports from across the world are about $400 billion, but Pakistan has no share. Major exporting countries, including the US, EU, UK, Australia, the UAE and Japan, are rushing to conclude bilateral free trade agreements with India to get a significant share in that large market. As a next door neighbour, Pakistan is well placed to grab some percentage of that market. The World Bank estimates that formal trade between India and Pakistan could be $37 billion or 15-fold more than the trade levels in 2019, when it was relatively more open. Imagine the economic activity it could create by adding 50% to our international trade. Overall, the adviser’s initiative to reopen trade with India is indeed the need of the hour. It will help improve our economic growth and balance of payments through savings on freight and make our industry more competitive. It is the shortest route to employing millions who lost their jobs during the Covid-19 pandemic. The writer has served as Pakistan’s ambassador to WTO and FAO’s representative to the United Nations at Geneva.
Source: The Express Tribune
Sustainability for MSMEs: The commitment towards combating climate change, and that too in a swift manner, should not be delivered at the cost of indigenous stakeholders. This holds even more relevance for developing economies. Sustainability for MSMEs: The recently released World Economic Forum Global Risks Report 2022 lists climate action failure as the most severe threat that the world is facing today, followed by extreme weather and biodiversity loss. The 2021 United Nations Climate Change Conference, or COP26, demanded countries to come forward and pledge to achieve net zero carbon emissions by 2050. Among other things, India made two primary commitments at the Conference. First, to fulfil half of the country’s energy requirements through renewable energy by 2030. And second, achieving the target of netzero carbon emissions by 2070. This can only be accomplished by phasing out usage of coal, increasing investment in renewables, controlling deforestation and pacing up switch to electric vehicles. As of 2021, we have witnessed a global temperature rise of 1.2°C over preindustrial levels. Even with 1.5°C of warming by the end of the century, which is the goal of the Paris Agreement and seems difficult to achieve, the world is likely to see a significant sea-level rise, unseen floods and droughts, and widespread loss of biodiversity. The increasing awareness and action to mitigate climate change could result in calling for an end to fossil fuels and putting a price on carbon in coming years. The commitment towards combating climate change, and that too in a swift manner, should not be delivered at the cost of indigenous stakeholders. This holds even more relevance for developing economies. Indian policy and regulation should stand the test of time in achieving the aforementioned climatic goals. And Indian MSMEs stand at the forefront of this test, facing a number of problems and challenges, as detailed further. The first one is a two-pronged challenge revolving around the financial viability of combating climate change. With the objective to switch to clean energy, huge costs are involved to replace and upgrade existing infrastructure. This includes infrastructure at energy production as well as consumption end. Though developed countries are pledging to raise billions of dollars in climate financing, it is uncertain whether allocated funds would bridge the financial gap in curtailing carbon emissions. One fair possibility is to fund this cause at the expense of other public schemes and initiatives. This might further skew the fiscal deficit to our economic disadvantage. The other side of this challenge is the cost of energy harnessed through renewables. An increase in the cost of energy will result in the increased price of goods produced by MSMEs that will diminish the demand, maybe to the extent of wiping out small industries in some cases. Moreover, the energy needs of the country are increasing year on year, adding on to energy price volatility and increasing the marginal cost of energy production through renewables. The next major challenge is to prepare MSMEs for this transition. MSMEs primarily react to climate change impacts rather than anticipate and plan for these. It is the responsibility of the government to handhold small entities through sector-wise intervention so that the shocks specific to certain groups of MSMEs can be identified and dealt with carefully. This is where throwing money at the problem will not serve the purpose. The major effects of climate change impacts are rising temperature, precipitation changes, rising sea levels, increase in extreme weather events, etc. The impacts of these phenomena can be classified as either direct like damage to physical assets or indirect like changes in the business environment, new regulations, change in demand and supply, etc. Devising thought-through procedures to tackle these impacts shall be of paramount importance. Other challenges in driving the climate change agenda would include tackling limited awareness among MSMEs, building a conducive regulatory environment, waste management and unruffled adoption of clean energy. Each of these concerns has to be dealt with proper policy and implementation initiatives. But even with the existence of numerous challenges for MSMEs, the situation has a silver lining to it. Adoption to the switch to clean energy in a streamlined manner could mean a time advantage to the Indian economy. Many countries competing with India today would be in a difficult position to achieve net-zero emissions, considering the size of the goal to be achieved. Early and smooth transition would definitely bring a competitive advantage. Technology and innovation would be pivotal in how well this transition is affected. The journey of combating climate change can be straight sailing by creating responsible competitiveness among MSMEs. Sector-based communities should be created for industries like textiles and metal-working which include a major number of MSME units. Objectives like monitoring carbon emission, energy efficiency, solar penetration, etc. can be achieved through technological intervention only which needs to be well-received by MSMEs. Infrastructure and technological upgradation across MSMEs would result in the creation of new markets as well. Shifting to renewable energy would occur by the production of more solar farms/panels, hydroelectric power plants, windmills, etc. which would stir MSMEs in local geography. The next decade or so shall witness the emergence of new MSME industries in light of this transition. These shall include producing products and services that are directly or indirectly linked to the shift in energy production and usage patterns. This shall also pose as a huge opportunity from a productivity and employment standpoint. In the words of Phil McGraw, “Awareness without action is worthless”. It is high time we play our part to not only continue this dialogue but to further the climate change agenda to fruition. Only then we can expect to witness the time when climatic equilibrium is restored across the globe.
Source: Financial Express
T Ravikanth, principal secretary of the industries and commerce department, and RIICO MD Archana Singh met senior central officials to seek support for two flagship projects. They met Vijoy Kumar Singh, additional secretary, and Shubhra, trade advisor, and had detailed deliberations on the proposed park at Kakani, Jodhpur, to make it a project under MITRA scheme of the Centre. The state has submitted a concept note for a MITRA park at Jodhpur and will be formally submitting a project proposal shortly. Both senior officials also met the Union secretary, department of chemicals and petrochemicals, who assured support to the proposed Petroleum, Chemicals and Petrochemicals Investment Region at Pachpadra.
Source: Times of India
Madhya Pradesh Industrial Development Corporation (MPIDC) has received demand for around 800 acre from textile companies to set up facilities in Indore region. One existing textile unit having presence in Pithampur and three new players into integrated textile business have seen land and have submitted proposals for around 800 acre from MPIDC. Rohan Saxena, executive director Madhya Pradesh Industrial Development Corporation (MPIDC), Indore said, “Textile companies have shown encouraging response in the region to set up facilities. We have proposals from four textile companies demanding around 800 acre in different pockets to set up facilities.” One of the existing textile companies is expected to purchase 400 acre in Badnawar for which the regional office of MPIDC has sent a proposal to the head office for approval of land. Other companies have seen land parcels in the Investment region in Ratlam. According to MPIDC, Indore around 50 textile and garment industries have booked land in the Indore region in the last one year by paying 25 per cent of the total premium amount to set up factories and estimated investments from these units is Rs 1,560 crore.
Source: Times of India
The Manufacturers Association of Nigeria (MAN) has called on the federal government to help drive growth in the manufacturing sector by ensuring that incentives, intervention programs and policies are broad enough to cover all sector payers, particularly those with linking activities. Mansur Ahmed, president, MAN said this at the 6th edition of the MAN reporter of the year award and presidential media luncheon, where he noted that although the government and its agencies are making efforts to improve economic and commercial activities for businesses through the provision of intervention funds, enabling policies, etc. This, he said, will have minimal impact if such efforts are restricted to specific subsectors or businesses. “Sometimes incentives don’t work if they are not all-encompassing for example, the CBN introduced the Cotton, Textile and Garment (CTG) intervention for cotton growers but this has limited impact because that intervention was not really extended to manufacturers, hence the cotton was grown but there is little or no value for it,” he said. Mansur added that the textile manufacturing, garment and apparel making subsector and other related sectors are closely linked and when key sectors work together that is the only way the much-anticipated improvement in the whole sector. “Our hope is we will continue to have interventions in each subsector reaching the various participants so that we align the links in the sector and see that each link contributes its quota, I believe if we do this even at this level we should be able to grow the sector,” he said. Speaking on the African Continental Free Trade Area (AfCFTA), the MAN president said the trade agreement has the potential to build Africa’s capacity to manufacture and change the narrative of the continent’s economy. He said so far there has been significant progress in the implementation of the trade agreement however it is slow due to a various reasons which include documentation, requirements, among other issues. “I agree it is still slow, we need to make things a bit faster and provide an enabling environment with friendly condition to drive intra African trade, we also have to ensure all our institutions are ready through capacity enhancement like the customs as some of them may not be fully conversant with the regulations of the agreement,” he said. Mansur added that there have been negotiations that were intended to detail the terms of the protocols and also ensure that participating countries familiarize themselves with the provisions of the agreement. “Having signed the agreement there are a number of protocols that should be put in place, a number of institutions have to be established across the continent, there are also processes, policies and regulations to be agreed on and implemented before trade activities can be fully implemented, this is very critical to the success of AfCFTA and also important for the countries,” he said. Mansur said that businesses in the private sector also need time and knowledge to strategically position themselves to benefit from the trade agreement and also familiarize themselves with the provisions and conditions of the agreement, adding that Nigerian manufacturers are prepared with many of them recording improvement in terms of product competitiveness, capacity utilization, packaging, etc. “Another issue is that a lot of exports are going on informally, and they are not recorded; however if we put our house in order and the sector tries to do the right things, we should be able to benefit more from the trade agreement,” he added.
Source: Business Day
The European Commission for Environment, Oceans and Fisheries took part in an event on circular economy with African representatives of the African Union and of the African Circular Economy Alliance. This virtual event allowed a frank discussion on the opportunities as well as the challenges in turning EU and African economies more circular. The programme gathered representatives of businesses from EU and Africa applying circular economy business models related notably to e-waste management and recycling industries. The event highlighted the opportunities offered by the circular economy transition in the EU and in Africa and the willingness of EU and African green companies and entrepreneurs to increase cooperation. The contribution of emerging economies to key environmental challenges and their potential for economic growth make them key partners in promoting the transition to a circular economy, the European Commission said in a press release. “There is a growing recognition both in the EU and in Africa of the need to increase the circularity of our economies in order to decouple growth and resource use. For this to happen, we need our respective businesses in the EU and Africa to close this loop and join forces. Events like these contribute to this, increasing EU cooperation with the African Union and the African Circular Economy Alliance on circular economy. We need to work jointly to turn today's challenges into opportunities and deliver on the Sustainable Development Goals,” European commissioner Virginius Sinkevicius said. The participants in the Europe Africa Business Forum, titled “Building Stronger Value Chains for Sustainable Growth and Decent Jobs” also had opportunities during the week to participate in other events related to the Circular Economy transition in the textile and agri-food value chains notably. They also could take part in matchmaking events to discuss between European and African counterparts how to turn circular principles into green business opportunities in Europe and Africa. The EU and the African Union represented in this event by African Union Commissioner for agriculture, rural development, blue economy and sustainable environment Josefa Sacko shared an interest in strengthening their cooperation on environmental matters. Both the European Commission and African partners will consider ways to follow up on the results of this event through further exchanges of experiences and good practices at a technical level on policies related to the circular economy, the efficient use of resources, and the conservation and sustainable use of natural resources, notably through the work of the African Circular Economy Alliance.
Source: Fibre 2 Fashion
Cambodia will soon launch a development strategy designed to transform the country’s garment trade into a dynamic, diversified, high-value and competitive sector, with a focus on the upskilling of factory workers, according to ministry of economy and finance secretary of state Phan Phalla, who recently said value-addition in the sector has been low in the last 20 years. Phalla was speaking at a public forum on macroeconomic management and the 2022 Law on Financial Management. Finance ministry permanent secretary of state Vongsey Vissoth said the sector still has the potential to achieve significant growth for the country’s economy, but that requires the proper implementation of this development strategy, according to Cambodian media reports. He added that the strategy also aims to increase the number of domestic investors, “as currently 95 per cent of investors in Cambodia’s garment sector are foreigners”. Exports in the sector rose by more than 10 per cent in 2021. Cambodia exported nearly $8.83 billion worth of garments, footwear and travel goods in the first 10 months of 2021, up by more than a tenth year-on-year, according to data posted by the Garment Manufacturers Association of Cambodia (GMAC).
Source: Fibre 2 Fashion
Austria-based Meta Triads aims to accelerate the digital transformation of the whole apparel industry. Meta Triads NFT is a collection of 10,000 unique 721a standard tokens built on Ethereum blockchain aiming to build a marketplace that will help clothing brands to develop their WEB3.0 products. Triads will be launching its NFTs collection which will represent not a brand but a marketplace share where many brands can join. Holders will get numerous utilities like including votes in DAO which is called Tribunal, native coin and NFT airdrops, but the most important is that every Triads holder will earn passive income from the Interverse Marketplace. The first one-stop fashion marketplace for all 3 worlds: Real, AR, and Metaverse - Integrated within each other, the company said in a media release. “There are numerous unknowns in terms of fashion collaborations and general nature of the AR/Metaverse clothing apparel, but truth be told, owning clothes in three different worlds is a very powerful precedent and a cool edge within the utility NFT marketplace. The main appeal of Meta Triads is its edgy approach to fashion – ‘own it everywhere you can’ is a nice summary of the project,” the release added.
Source: Fibre 2 Fashion
Tong Jisheng beams with pride as he reminisces how a woolen blanket gifted to visitors from the United States in 1972 created a business boom for the Shanghai-based manufacturer. The blanket, 1.55 meters wide and 2.3 meters long, featured traditional Chinese auspicious flower patterns including peony and chrysanthemum. The blankets were given to the U.S. delegation as a gift during the historic visit of then U.S. President Richard Nixon to China. It became well-known soon afterward and won the hearts of young consumers at that time, Tong, chairman of Shanghai-based Orient International (Holding) Co., Ltd. (OIH), recalled. The blanket heralded the start of the manufacturer's trade with the United States and 50 years on, OIH, the parent company of the manufacturer, has seen its annual trade volume with the United States reaching some 10 billion yuan (about 1.58 billion U.S. dollars) in recent years with the expansion of business. In 1998, a subsidiary of OIH set up a joint venture with an American company in Shanghai to produce carpets used in automotive vehicles. Thanks to the continuous and rapid development of China's automobile industry, the joint venture has established six factories in China successively. In 2017, the two parties established a global joint venture in Detroit that grew into a major supplier of automotive soft decoration, with nearly 20 factories and four R&D centers across the world. "It is worth mentioning that since the outbreak of COVID-19, our factories in North America have used surplus production capacity to produce masks for their own use or donate them to local community hospitals and schools, further strengthening the understanding and trust between the two sides of the joint venture," Tong said. The first China International Import Expo held in 2018 also created new opportunities for OIH to promote trade with the United States amid the continuous opening of the Chinese market and the accelerated unleashing of consumption potential. Currently, the United States is OIH's largest market. Medical equipment imported by OIH from the United States over the past four years is in use across China and the company's textile products have become best-sellers on mainstream American e-commerce platforms. "Our cooperation with the United States began 50 years ago starting from a blanket," said Tong. "In my view, both Chinese and American people want to live a happy and stable life, to buy cheap and quality goods, and to share the wonderful history, culture and products of other countries." Statistics from Shanghai Customs and the municipal commission of commerce show that in 2021, the import and export trade between Shanghai and the United States reached 508.1 billion yuan, an increase of 5.48 percent over the previous year. During the period, 521 new U.S.-invested enterprises were established in Shanghai, with an actual foreign investment worth 613 million U.S. dollars. The investment is not one-way. From 2012 to 2021, Shanghai-based companies registered 1,310 investment projects in the United States, with investment from the Chinese side totaling some 24.5 billion U.S. dollars. This shows that market players in the world's two largest economies attach great importance to each other and value each other's market, said Chen Jing, president of the Shanghai People's Association for Friendship with Foreign Countries. The China-U.S. trade and economic cooperation are highly complementary and enjoy broad prospects and potential for development, Chen said, adding that the extensive and in-depth economic and trade cooperation between the two countries, accumulated over the past 50 years, has spurred companies on both sides to form a community of common interests and become a ballast stone for bilateral ties.
Source: Xinhua
