The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 03 MARCH, 2022

NATIONAL

INTERNATIONAL

Exporters want China route revived for shipments to CIS countries

Synopsis Exports to these nations have stopped as there is no movement of ships through the Black Sea. The proposed route -India to Qingdao by ship and from there on to CIS by railways - has been non-operational for over a year. The suggestion was made at a meeting between the commerce and industry ministry and stakeholders. Indian exporters have sought resumption of exports to the Commonwealth of Independent States (CIS) countries through China, following Russia's invasion of Ukraine. The CIS countries include Ukraine, Azerbaijan, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan and Uzbekistan. Exports to these nations have stopped as there is no movement of ships through the Black Sea. "Three-four meetings with exporters and the finance ministry have happened on ways to minimise the impact of the conflict," an official said, adding that the situation is fluid and the government is keenly watching developments. At present, a large volume of cargo exported to the CIS countries moves via Russian Railways. "We have proposed this route via China to CIS countries as Indian banks will be reluctant to deal with documents showing en-routing through Russian ports for CIS-destined goods," said an exporter. "We should explore the possibility of restarting exports through Qingdao by discussing with a few major shipping lines or Container Shipping Lines Association," said Ajay Sahai, director general, Federation of Indian Export Organisations (FIEO). An industry representative said the government has the option of reviving the Rupee-Ruble mechanism even though a similar one with Iran had limited success as many buyers had expressed their inability to make payments in a foreign currency or from a third country. Exporters have suggested using the Russian currency for such payments. They also sought all export benefits for payments received in that currency as is currently available for exports in free foreign exchange. Russia may look to India for its food and chemical needs, another industry representative said, as these are its key imports. However, a blocked transit route is not only impacting current exports but the possibility of increased shipments.

Source: Economic Times

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Gujarat’s spinning units fear weakening of global yarn demand

Over the past six months, over 600 spinning units across Gujarat have been facing challenges of continuous increase in cotton prices. Having been hit already by a spike in cotton prices, the spinning industry in Gujarat is fearing decline in the international as well as global demand of cotton yarn due to the ongoing Russia-Ukraine tension. Over the past six months, over 600 spinning units across Gujarat have been facing challenges of continuous increase in cotton prices, says Chintan Thaker, president, Welspun Group adding, “Over the period of time cotton prices have jumped from nearly Rs 5,000 per candy (356 kg per candy) to around Rs 80,000 per candy at present. As a result, production cost of spinning mills and composite textile units have gone up sharply. Interestingly, prices of cotton yarn are not increasing due to limited demand.” haker, also chairman of Assocham-Gujarat, says spinning units are in a Catch-22 situation; on one hand prices of cotton have inflated and on the other hand, fabric makers are unwilling to pay higher prices of yarn. Even bigger player like the Welspun group are feeling the heat of enhanced cotton prices despite captive consumption of yarn, he said, adding that already such firms took huge orders when cotton prices were hovering at Rs 42,000- Rs45,000. “With cotton prices having almost doubled, most of the export-making units are making loss as they are bound to fulfil the orders. Now geo-political issues between Ukraine and Russia are an add-on factor… If the prices of crude oil increase, production cost will further go up. There would be adverse an impact on logistic cost too,” he said.  Following Russia’s invasion of Ukraine, international market sentiments have already changed, says Bharat Boghra, chairman of Spinners Association – Gujarat adding, “Overall textile demand would go down if the war situation continues for a longer period. Cotton fabric makers have become more cautious in buying cotton yarn. Compared to last month, prices of cotton yarns have dipped by Rs 40 per kg. Not only Gujarat, but India’s textile strength lies is in value-added exports. A recent hike in input cost and the added factor of the Russia-Ukraine war are having adverse impact on important textile clusters across the country, which include Ahmedabad. Higher cotton prices and uncertainty due to war between the two eastern European countries have also encouraged traders to hoard cotton, says a spinning unit owner requesting anonymity. According to him, due to such activities, cotton may become even dearer for spinning units.

Source: Financial Express

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MSME Ministry to discuss ‘MSMEs as growth engine for economy’ at DPIIT webinar tomorrow

The Ministry of MSME will lead a session titled “MSMEs as the Growth Engine for Indian Economy” at the “Make in India for the World” webinar organised by the Department for Promotion of Industry and Internal Trade (DPIIT) on 3rd March, 2022. For this session, the focus sectors that have been identified are Furniture, Leather & Footwear, Gems & Jewelry, Textiles, Food Processing and the moderator will be Vinod Kumar, President, India SME Forum. This session will conclude with remarks from concerned Secretaries in M/o Micro Small and Medium Enterprises, M/o Food Processing Industries and M/o Textiles. Industries Principal Secretaries of States of Haryana, Madhya Pradesh, Assam and Tamil Nadu will deliver remarks in the session. The webinar will also include discussions on a paradigm shift in manufacturing in India and realising the trillion-dollar goal in Exports. The objective of the webinar is to sustain momentum of Union Budget 2022 by synergizing efforts with all stakeholders on various initiatives taken for boosting manufacturing, increasing exports and strengthening the MSMEs. By leveraging stakeholders’ expertise and experience, an Action Plan for the Industry’s way forward and monitoring framework for effective implementation of growth reforms in areas of manufacturing, exports and MSMEs will be finalised. Prime Minister Narendra Modi will deliver a special address to all participants on the vision of ‘Make in India for the World,’ its convergence with Union Budget 2022 and the expectations from the Webinar. Minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Piyush Goyal will be delivering the concluding remarks for the event.

Source: KNN India

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Manufacturing growth strengthens in February

The Nikkei manufacturing purchasing managers’ index (PMI) rose to 54.9 in February from 54 in the previous month. Manufacturing activities grew at a strong pace in February on a rise in new work intakes and output. The Nikkei manufacturing purchasing managers’ index (PMI) rose to 54.9 in February from 54 in the previous month. Employment fell at the softest pace in three months. Input price inflation moderated to a six-month low and business optimism improved to a four-month high.

Source: Financial Express

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India’s merchandise export in February 2022 increases by 22.36% to USD 33.81 billion over USD 27.63 billion in February 2021

India’s merchandise export in February 2022 was USD 33.81 billion, an increase of 22.36% over USD 27.63 billion in February 2021 and an increase of 21.88% over USD 27.74 billion in February 2020. India’s merchandise export in April 2021-February 2022 was USD 374.05 billion, an increase of 45.80% over USD 256.55 billion in April 2020-February 2021 and an increase of 28.16% over USD 291.87 billion in April 2019-February 2020. India’s merchandise import in February 2022 was USD 55.01 billion, an increase of 34.99% over USD 40.75 billion in February 2021 and an increase of 45.12% over USD 37.90 billion in February 2020. India’s merchandise import in April 2021-February 2022 was USD 550.12 billion, an increase of 59.21% over USD 345.54 billion in April 2020-February 2021 and an increase of 24.11% over USD 443.24 billion in April 2019-February 2020. The trade deficit in February 2022 was USD 21.19 billion, while it was 176.07 billion USD during April 2021-February 2022. The trade deficit in February 2022 was USD 21.19 billion, while it was 176.07 billion USD during April 2021-February 2022. Value of non-petroleum exports in February 2022 was 29.70 USD billion, registering a positive growth of 18.04% over non-petroleum exports of USD 25.16 billion in February 2021 and a positive growth of 22.23% over non-petroleum exports of USD 24.30 billion in February 2020. Value of non-petroleum imports was USD 39.96 billion in February 2022 with a positive growth of 26.0% over non-petroleum imports of USD 31.72 billion in February 2021 and a positive growth of 47.33% over non-petroleum imports of USD 27.12 billion in February 2020. Value of non-petroleum imports was USD 39.96 billion in February 2022 with a positive growth of 26.0% over non-petroleum imports of USD 31.72 billion in February 2021 and a positive growth of 47.33% over non-petroleum imports of USD 27.12 billion in February 2020. The cumulative value of non-petroleum exports in April 2021-February 2022 was USD 319.09 billion, an increase of 36.16% over USD 234.36 billion in April 2020-February 2021 and an increase of 26.07% over USD 253.10 billion in April 2019-February 2020. The cumulative value of non-petroleum imports in April 2021-Feb 2022 was USD 408.63 billion, showing an increase of 49.61% compared to non-oil imports of USD 273.12 billion in April 2020-Feb 2021 and an increase of 26.61% compared to non-oil imports of USD 322.74 billion in April 2019-Feb 2020. Value of non-petroleum and non-gems and jewellery exports in February 2022 was USD 26.60 billion, registering a positive growth of 18.31% over non-petroleum and non-gems and jewellery exports of USD 22.48 billion in February 2021 and a positive growth of 24.98% over non-petroleum and non-gems and jewellery exports of USD 21.28 billion in February 2020.  Value of non-oil, non-GJ (gold, silver & Precious metals) imports was USD 31.61 billion in February 2022 with a positive growth of 31.66% over non-oil and non-GJ imports of USD 24.01 billion in Feb 2021 and a positive growth of 42.31% over non-oil and non-GJ imports of USD 22.21 billion in Feb 2020.  The cumulative value of non-petroleum and non-gems and jewellery exports in April 2021-February 2022 was USD 283.83 billion, an increase of 33.92% over cumulative value of non-petroleum and non-gems and jewellery exports of USD 211.95 billion in April 2020-February 2021 and an increase of 29.47% over cumulative value of non-petroleum and non-gems and jewellery exports of USD 219.22 billion in April 2019-February 2020. Non-oil, non-GJ (Gold, Silver & Precious Metals) imports was USD 332.85 billion in April 2021-February 2022, recording a positive growth of 44.78%, as compared to non-oil and non-GJ imports of USD 229.89 billion in April 2020-February 2021 and a positive growth of 22.35% over USD 272.05 billion in April 2019-February 2020.

Source: PIB

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Prolonged war to hit Indian MSMEs hard: FISME chief

Small businesses may witness disruption primarily in the supplies of polyester and chemicals A large number of small businesses will be severely impacted if the war in Europe continues for another week, a lobby of Indian small enterprises said on Wednesday. In an interview, Federation of Indian Micro and Small & Medium Enterprises (FISME) president Animesh Saxena said that freight rates have gone up 10-15% in the past week of Russia’s Ukraine invasion, and the raw material costs are expected to shoot up as well. According to commerce ministry data, India’s bilateral trade with Russia stood at $8.1 billion in FY21, with Indian exports of $2.6 billion and imports of $5.5 billion. “About 40% of the exports from India are from MSMEs. We have already started seeing the increase in the freight, sea as well as air, which were already almost four times from pre-pandemic days," he said. The FISME president said that as the war intensifies and more cargo flights avoid conflict areas, transit and delivery times will increase and freight rates will go up. Export sectors that will be most impacted include textiles, apparels, electronic goods, plastic and metal components, Saxena said. Other major exports to Russia include pharmaceuticals and machinery. In terms of raw materials, small businesses may witness disruption primarily in the supplies of polyester and chemicals, driving up their prices. This comes in the backdrop of input costs of products from steel to cotton yarn remaining high, with the geopolitical crisis likely to make it worse for SMEs. On payment issues due to some Russian banks cut out of Swift, the world’s most widely used international payments network, Saxena said, “The payment crisis has already started. We are in touch with the government on the payment crisis specially and other safety issues." “We are seeing how the things unfold. If the things are sorted out soon, it’s OK; otherwise, it (prices) might spiral up. MSMEs have been a major focus for the government amid the pandemic. Along with several measures to ease the regulatory framework and business environment for small businesses, the government in 2020 rolled out the Emergency Credit Line Guarantee Scheme (ECLGS) to support pandemic-hit businesses with the primary focus on MSMEs. The scheme was launched with an initial corpus of ₹3 trillion, but it has now been expanded to ₹5 trillion. Saxena said that although these initiatives have supported MSMEs, the government should bring about a policy focus to formalize micro enterprises which are largely unorganized, with very little or no institutional financing at all. Small enterprises are also concerned about any likelihood of sanctions or blockade by the US and European Union as a result of their continued trade with Russia, Saxena said. On the broader situation of MSMEs in the country, he said that the sector has so far witnessed a recovery and was anticipating a faster pace of growth as the economy revives, but noted the worrying rise in raw material costs. Calling for regulations regarding the pricing of raw materials used in industries, he said that in the past one year, cotton prices are up 80%, forcing several businesses to shut shop. He added that the budget announcement of a 35.4% increase in capital expenditure should be helpful for the sector in the long run. The Union Budget for FY23 pegged a capital expenditure of ₹7.5 trillion for the upcoming financial year, against of  ₹5.54 trillion in FY22.

Source: Live Mint

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Will lead efforts for trade pact in Indo-Pacific: USTR

In its trade policy agenda for 2022, the US Trade Representative said that the specific content of the trade arrangement will be developed through extensive consultation with trading partners, a broad base of stakeholders, and the Congress. The United States has said it will lead efforts to craft a trade arrangement in the IndoPacific region that would include provisions on high-standard labour commitments, environmental sustainability, cooperation in the digital economy, and sustainable food systems. In its trade policy agenda for 2022, the US Trade Representative said that the specific content of the trade arrangement will be developed through extensive consultation with trading partners, a broad base of stakeholders, and the Congress.

Source: Economic Times

India exploring payment alternatives for Russian biz

• The methods being explored include routing payments through smaller Russian banks The Centre and the Reserve Bank of India (RBI) are exploring alternative mechanisms to process financial transactions involving Russian businesses, including routing payments through smaller Russian banks which have not been put under sanction, local currency trade and third-country payments, said two government officials, requesting anonymity.

Source: Live Mint

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Two industrial clusters proposed in Neemuch

District and Industries Trade Center has prepared a proposal to develop two clusters - a food processing and a multisectoral for small and micro scale industries in Neemuch district. The Micro, Small and Medium Enterprises has identified two land parcels of 5.6 hectare and 9.9 hectare in Kesharpura village and Sagrana village of Neemuch district for developing into clusters. Amar Singh More, general manager, District and Industries Trade Center, Neemuch said, “We have sent proposals to the head office for developing two clusters in Neemuch district. We have identified land in two pockets of the district that has the potential to attract industries from food processing and other sectors having presence in this region.” The District and Industries Trade Center said they have proposals from industries willing to set up facilities in Neemuch and the recently identified land parcels can be developed into clusters for local small and medium enterprises. The department is identifying land parcels in the district to add to the land bank for attracting investments from industries. The District and Industries Trade Center has also recently received a land parcel of around 3 hectare from the district administration in Neemuch district. More said, “Recently many industries from textile and food processing have shown interest in taking up land in Neemuch district. Some large scale players in textile have also proposed to invest on lands shown by the Madhya Pradesh Industrial Development Corporation (MPIDC).” MPIDC has created a land bank of about 54 hectare in Neemuch district pinning hopes on textile, food processing and ethanol industries. The Madhya Pradesh government has also proposed to develop a biotechnology park in Neemuch at an estimated cost of Rs 50 crore to incubate start-ups and transfer technology to industries.

Source: Times of India

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Bihar’s New textile policy soon: Min

State industries minister Syed Shahnawaz Hussain on Wednesday said the state government will soon come up with a new textile policy to promote manufacturing and trade in the sector. Addressing the annual meeting of Confederation of Indian Industry (CII) here, Shahnawaz said the textile sector in Bihar has immense potential. He also claimed that the state has received industrial investment proposals worth Rs 40,000crore in the last one year and many big industrial units will be launched here in the next two months. “Bihar received the highest number of investment proposals in India during the Covid-19 pandemic. We will also inaugurate the Begusarai Pepsi Plant set up by Varun Beverages in the first week of April, which will be the fastest production plant set up in a record time in the history of Pepsi,” Shahnawaz said. He added: “Bihar's greatest strength is it’s skilled workers, who work all over the country. Where there are workers, there are factories. Therefore, we are planning to develop more factories in the state for them to work.” The theme of this year’s CII’s Bihar annual Meeting was ‘Advantage Bihar- Sankalp Se Sidhhi: Bihar @75’. Several eminent personalities from CII, healthcare, academia, economics, agricultural and rural development addressed the meeting. “Even though India is the sixth largest economy in the world, it's human development index rank is 131 out of 189 countries and territories. There has been improvement in the country in other sectors, but there has not been much advancement in healthcare. Due to this, the industries minister held a meeting with a group of doctors, a few days before the budget session and decided to increase the allocation of health sector in state budget from 3% to 6.79%,” said Dr Satyajit Singh, convener, health panel, CII-Bihar.

Source: Times of India

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UP: Mau Weavers seek restoration of power subsidy to survive post-COVID struggle

Weavers of the Mau district in Uttar Pradesh have demanded to restore the fixed-rate electricity bill system and to reduce the tax on raw materials so that the textile industry could survive. After the COVID-19 pandemic, weavers of Mau are struggling to get back on track and are seeking the government’s support in boosting the famous weaving tradition of Mau. Power loom weavers are being charged as per actual meter readings from January 2020 after the government withdrew the ‘flat rate’ subsidy. Talking about the woes faced by weavers in the town, preside of weaver’s forum Arshad Jamal told ANI, “Weavers only want flat-rate subsidy (power tariff fixed per month). Electricity was given at cheaper rates previously but the Bhartiya Janata Party (BJP) government scrapped it. Each family in Mau works on power loom and without the subsidy, it has been difficult for the weavers to survive.” “We want the subsidy and reduction of GST on raw material to stand in the competition. We don’t have automatic machines to compete so the government should give us some relaxations,” he added. The power subsidy was introduced by the Mulayam Singh Yadav government in 2006. Weavers would pay less than Rs150 per month for looms that consumed one horsepower of electricity. However, with an order in December 2019, unit-based consumption was made mandatory. This has raised the bills to around Rs3,000 per month. Jamal further added, “Business is down after the pandemic. Demand has reduced as compared to that of pre-pandemic times. Threads used in the textile are getting expensive with 18 per cent GST which eventually makes the clothes expensive. Hence the weavers lag behind in competition and suffer.” Power loom owner Mohammed Hanzala Fareed said that power subsidy is the need of the hour since weavers are not able to make their ends meet. “During the tenure of the Samajwadi Party, flat rate subsidy was provided which was beneficial for the weavers. But after the BJP’s decision to scrap the Flat rate subsidy, the weavers are unable to meet ends. Hence we want the subsidy back and the electricity should also be provided 24×7. Weavers are right now under debt and if nothing is done, then weavers will be forced to die by suicide,” Fareed said. The textile sector is under one district one product (ODOP) scheme of the state government but weavers claim that benefit has not reached the beneficiaries. “Mau Textile work is under ODOP but if you check the facts, then it clearly shows no one got the benefit as this scheme is very rigid and not that beneficial to weavers,” weaver president Jamal said. The Mau district is known for its textile product and apparel manufacturing industries. There are establishments that process fibre into fabric and fabric into clothing and other textile products. In Mau, almost every household has a loom that is used for making sarees, loincloths, suits, etc. The sarees made here are beautifully embroidered by craftsmen with Zari yarn. Historically weaving in Mau started during the time of emperor Jahangir which is now facing hardships to make ends meet. Mau is set to vote in the seventh phase of UP polls which are scheduled for February 7. The counting of votes will eventually take place on March 10.

Source: The Print

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Bangladesh: Exports rise by 30.46pc in July-Feb

Bangladesh’s export earnings in the July-February period of the current financial year 2021-22 increased by 30.46 per cent to $33.84 billion from $25.86 billion in the same period of the previous fiscal year due to an outstanding performance by readymade garment products. Export earnings in February 2022 grew by 34.54 per cent year-on-year to $4.29 billion from $3.19 billion in the same month of 2021, according to the Export Promotion Bureau data released on Wednesday. The EPB data showed that export earnings from RMG in the eight months of FY22 fetched $27.49 billion, which is 30.73 per cent higher than the earnings of $21.03 billion in FY21. ‘Export earnings growth is very positive and we have taken some initiatives to maintain the trend,’ Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association, told New Age. He said that the prices of products increased on the global market due to the price hike of raw materials and at the same time exports also increased in quantities. ‘Hopefully the growth will continue, but we are in tension over the Russia-Ukraine war,’ Faruque said. Export earnings from woven garments increased by 28.23 per cent to $12.42 billion in July-February of FY22 from $9.69 billion in the same period of the previous fiscal year. Earnings from knitwear exports in the eight months of FY22 grew by 32.87 per cent to $15.06 billion from $11.34 billion in the same period of FY21. Export earnings from home textiles increased by 35.98 per cent to $993.76 million in the July-February period of FY22 from $730.82 million in the same period of FY21. Export earnings from leather and leather goods in July-February of FY22 grew by 29.61 per cent to $784.98 million from $605.67 million in the same period of the previous fiscal year. Earnings from leather-footwear exports in the eight months of FY22 grew by 25.89 per cent to $475.04 million from $377.34 million while other leather products fetched $209.67 million with a 35.32-per cent growth in the period. Export earnings from jute and jute goods, however, declined by 7.34 per cent in the JulyFebruary period of FY22 with $ 799.42 million earnings. Earnings from agricultural products increased by 28.36 per to $853.2 million in the first eight months of FY22. Exports of engineering products in the eight months of FY22 grew by 65.05 per cent to $534.38 million from $342.4Earnings from pharmaceutical exports stood at $130.57 million, posting a 21.28-per cent growth. Export earnings from frozen and live fish increased by 20.44 per cent to $407.1 million and the earnings from shrimp export grew by 39.48 per cent to $313.28 million in the eight months of FY22. 4 million in the same period of the previous fiscal year.

Source: New Age

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Pak-Uzbekistan PTA to boost trade in various sectors: Dawood

Adviser to Prime Minister on Commerce and Investment, Abdul Razak Dawood Wednesday said that after the finalization of Pakistan and Uzbekistan,Preferential Trade Agreement (PTA), there was a huge potential for trade growth in various sectors including textile. He said this while addressing the ‘Pakistan-Uzbekistan Business Forum’ along with the Deputy Prime Minister, Minister of Investments and Foreign Trade of Uzbekistan Sardor Umurzakov organized by the Ministry of Commerce here. The adviser hoped that the promotion of trade between the two countries would increase regional trade besides providing trade connectivity to the Russian Federation and European markets. Dawood said that the PTA would increase bilateral trade between Pakistan and Uzbekistan. The signing of the agreement would take place during the Uzbek President’s visit to Pakistan on March 3 to 4, to facilitate bilateral trade and transit trade to boost trade ties between the two countries and also enhance the connectivity with Afghanistan, the adviser said. Razak Dawood said President of Uzbekistan, Shavkat Mirziyoyev would pay visit to Pakistan to discuss ways to improve the bilateral economic and trade relations and also would sign various bilateral trade agreements. He said that a strong economic bloc could be established among Pakistan and Afghanistan and the five Central Asian countries, which would enable trade in goods to reach Russia and European countries. He said that there was a possibility of mutual agreement for smooth transactions between the central banks of the two countries. In addition, the facilitation of transit trade between the two countries will be discussed.

An agreement had already been reached in that regard and now transit trade trucks would be able to supply goods between Pakistan, Afghanistan, and Uzbekistan, which would boost trade in the region, Razak said. Similarly, the promotion of transit trade and the free moments of trucks would usher in a new era of trade promotion in the region, he said. Meanwhile, Deputy Prime Minister and Minister for the trade of Uzbekistan said that Pakistan and Uzbekistan bilateral trade increased by 70 percent in last two months of January- February. He urged for industrial and investment cooperation between the two countries and said that business communities from both needed to jointly work for increasing the bilateral trade between. He said that the 350 million markets of Pakistan, Afghanistan, and Central Asian countries could play a significant role in world trade. The deputy prime minister said that leadership on both sides agreed to the promotion of bilateral trade and regional economic integration. He said that after the visit of Prime Minister Imran Khan in July 2021, new avenues of mutual relations and cooperation were opened between the two countries, which also opened the way for the development of trade and economic relations. He said that the traders and business community of both the countries had to play their due role in promoting trade in the region. In that regard, the government of Uzbekistan would provide all possible facilities to Pakistani traders, he added. He said that the government of Uzbekistan would take steps to make legal and financial and visa issues as easy as possible for the business community. He said that the business community of the two sides could share their mutual experiences and get the benefits from the experience of each other for increasing the economic connectivity. Meanwhile, five Memorandum of Understandings (MOUs) signed between the private sector of the two sides to enhance cooperation in different potential sector including textile, fertilizer, weaving and dyeing, construction and menthol supplies.

Source: Associated Press of Pakistan

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Sri Lanka's apparel exports reach $488 mn in Jan; set 5-year record

Sri Lanka's apparel exports in January 2022 achieved the highest level for that month in the last five years as export earnings rose to $487.6 million, overtaking the $452 million recorded in January 2019, prior to the pandemic, by 8 per cent. Growth over January 2021 export earnings was 23 per cent. This performance demonstrates the industry’s underlying strength as it bounced back from the sustained shocks from the impact of the pandemic over the last two years, Joint Apparel Association Forum (JAAF), the apex body of the Sri Lankan apparel industry, said in a media release. Amidst significant turbulence, this strong performance is testimony to the resilience of Sri Lanka’s apparel industry and augurs well for the industry’s progress towards realising its goals for 2025,” said Yohan Lawrence, secretary general, JAAF. The industry’s 2030 vision is to transform Sri Lanka to a global apparel hub by that year; an intermediate goal is to increase annual export earnings from apparel to $8 billion by 2025. “Through close cooperation between all key stakeholders, the apparel industry can further increase its already-strong contribution to the national economy, as a major generator of vital foreign exchange and high-quality employment,” Lawrence added. The industry’s January 2022 performance also reflects the success of rigorously applied safety measures adopted by the sector, in close cooperation with health authorities, to minimise the spread of the pandemic among employees to zero. Additionally, apace with the national vaccination drive, 65 per cent of employees in Sri Lanka’s apparel sector have now received both doses and the booster, while 95 per cent of employees have received at least both doses. Apparel exporters also proactively adopted additional safety measures, even before the Omicron variant came to Sri Lanka, JAAF said. “Ensuring the health and safety of the employees of the sector, through continued rigorous adherence to safety and health protocols remains our top priority,” said Saif Jafferjee, MD, Lanka Garments (Pvt) Ltd. “This approach has sustained the industry’s resilience and reduced the negative impact of COVID-19, while also ensuring business continuity, thus protecting thousands of livelihoods and income sources.” Recent performance also reflects the success of measures like digital product development technology adoption that helped mitigate supply chain disruptions. Larger firms also supported smaller ones, by collaborating with them on meeting the export order rush. “January’s impressive performance was also made possible by strong demand from buyers and the healthy pipeline of orders for upcoming months, which are grounds for optimism,” Jafferjee added. “The international outlook remains challenging, however, considering growing tensions in Europe.”

Source: Fibre 2 Fashion

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Germany's GDP fell by 0.3% in Q4 2021 over Q3: Destatis

Germany’s gross domestic product (GDP) fell by 0.3 per cent in the fourth quarter (Q4) of 2021 over Q3 upon adjustment for price, seasonal and calendar variations. According to figures from the Federal Statistical Office (Destatis), the GDP development was, however, more positive than reported in the first release of January 28, 2022, both regarding Q4 (minus 0.3 per cent) and the entire year (+2.9 per cent). GDP was down by 1.1 per cent in Q4 2021 compared with Q4 2019. After economic performance had increased again last summer despite growing delivery bottlenecks and material shortages, the recovery of the German economy came to a halt at the end of the year due to the fourth COVID-19 wave and another reinforcement of pandemic preventive measures. After two quarters with considerable increases, household final consumption expenditure was down by 1.8 per cent in Q4 2021 compared with Q3. The government’s final consumption expenditure, in contrast, increased by 1 per cent and had a stabilising effect, Destatis said in a release. Gross fixed capital formation in machinery and equipment was up by 0.9 per cent in Q4 2021 over the Q3 figure. Gross fixed capital formation in construction remained roughly at the previous quarter's level. Foreign trade increased in Q4 2021. Exports of goods and services were up by 4.8 per cent compared with Q3. Total imports rose slightly more (5.1 per cent) as the imports of services were up on the previous quarter once again. The gross value added (GVA) in Q4 2021 decreased by 0.9 per cent over Q3 2021. Diverging trends were recorded for the individual economic sectors. Economic performance improved in manufacturing (1.9 per cent) and construction (1.6 per cent), whereas the recovery that had started in many service branches during the summer was stopped by the fourth COVID-19 wave.

Source: Fibre 2 Fashion

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Peru-Japan celebrate 10th anniversary of Economic Partnership Agreement

On March 1, 10 years were commemorated since the entry into force of the Agreement between Japan and the Republic of Peru for an Economic Partnership.  This trade agreement —highly relevant for the South American country with Japan, the latter of which hosts a population of approximately 130 million inhabitants— means the entry into an attractive market for Peru. The FTA facilitated the entry of new products —especially of the non-traditional sector— into Japan. Thus, in the case of fresh products Peru currently exports mangoes, bananas, asparagus, avocados, and tangerines to the Asian country. Besides, authorization for the entry of Peruvian grapes is expected at the end of the current year. In parallel, efforts are undertaken to achieve the entry of blueberries. Likewise, in terms of frozen products, the value of the entry of trout alone into the Japanese market leads to revenue worth approximately US$17.7 million during 2021. In addition, functional foods such as quinoa, and amaranth, among others, are highly demand due to their high nutritional value —an element that is highly appreciated by Japanese consumers. On the other hand, the FTA has also allowed the entry of enterprises dedicated to textiles —mainly alpaca products. "The Embassy of Peru in Japan will spare no effort to help achieve this goal," a release by the Peruvian Foreign Affairs Ministry concluded. On February 23, Japanese Ambassador to Peru Kazuyuki Katayama expressed confidence that the bilateral relations of friendship and cooperation between both nations, as strategic partners, will be further strengthened in the coming years.

Source: Andina

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