The Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, today said that the achievement of USD 400 billion exports was the result of a concerted, collective effort by every sector, every stakeholder in the nation. Merchandise exports from India have crossed $400 billion in the current financial year, 9 days ahead of schedule. This is far higher than the previous record of USD 330 billion achieved in 2018-19. Hon’ble Prime Minister Shri Narendra Modi has tweeted the following: “India set an ambitious target of $400 Billion of goods exports & achieves this target for the first time ever. I congratulate our farmers, weavers, MSMEs, manufacturers, exporters for this success. This is a key milestone in our Aatmanirbhar Bharat journey.” The Minister was addressing a Press Conference held to mark the occasion in New Delhi today. Shri Goyal said that the achievement of the lucrative export target showed the world that inspite of facing numerous challenges, with sheer grit, determination, capability and talent, India would surmount all obstacles. The Minister expressed his gratitude to all the exporters, farmers, weavers, MSMEs, manufacturers, Indian missions abroad and all other stakeholders who he said, were the real heroes behind this achievement. He thanked the Prime Minister, Shri Narendra Modi for leading from the front and for his relentless focus on exports. It was the clarion call given by the Prime Minister that inspired the industry to make a quantum jump in exports, he said. The Minister said that there was a detailed strategy in place, including specific targets set - country-wise, product-wise & EPC-wise, monitoring and course correction, behind the achievement of the export target. Shri Goyal said that the 'whole of govt approach' had been taken to the next level to 'whole of country approach' to acheive this remarkable target. He also said that the achievement was not just about meeting targets but about building confidence and about exploring new markets. The Minister applauded the media for consistently encouraging businesses through positive reporting, encouraging editorials, helping making this a national mission. Underscoring the direct linkage that exports have with employment generation, especially in labour intensive sectors, the Minister said that when products of a brass trader from Moradabad and farmers from Varanasi get appreciated in the global market, it is a testimony to the fact that employment and prosperity is increasing from exports The Minister also appreciated Indian exporters for maintaining the momentum throughout the year despite challenges caused by successive COVID-19 waves. The Minister said that the achievement truly called for a celebration and added that it sent out the message of a confident future for the nation. India is ready for the World with a new identity of quality and reliability, he said. Keeping in view the critical role of exports in catalyzing economic activities which were impacted by the COVID-19 pandemic, the Department of Commerce embarked upon the inspiration provided by Hon’ble PM Shri Modi during his Address and interaction with exporting community, Ambassadors / HCs / Commercial Missions, Line Ministries/ Departments, State/UTs, EPCs, Commodity Boards/ Authorities, Industry/Trade Associations, etc on 6th August 2021 on the theme of “Local Goes Global - Make in India for the World”. During the Address, Hon’ble Prime Minister set an ambitious target of US$ 400 billion of merchandise exports for 2021-22 for the nation to achieve. He exhorted the exporting community to search for new products in the export basket, look for newer destinations and ensure deeper penetration of the existing product and markets. Thus, in order to achieve the target and approach set by the Hon’ble PM, the Department of Commerce disaggregated the $400 Billion target in terms of regions and countries as well as product/commodity groups. The government prepared a detailed strategy for achieving the targets and an elaborate monitoring system. The disaggregated targets have enabled tight monitoring by Country/Region/Mission/Export Promotion Councils. The Commodity Divisions of Department of Commerce have held regular review meetings with the concerned EPCs under their jurisdiction. Thus, notwithstanding the challenges posed by successive waves of Covid, India’s merchandise trade performance has shown impressive growth and exports remained above USD 30 Billion for eleven consecutive months (likely to be twelve consecutive months at the end of March) during April to February wherein December 2021 in particular recorded the highest ever monthly merchandise exports recorded at USD 39.3 billion. Engineering goods exports have gone up by nearly 50% vis-à-vis last year. Higher engineering exports, apparel and garment export, etc. indicate that the misconception of India being a major exporter of primary commodities is gradually changing. We are now exporting more and more value added and high end exports and this effort by our technology driven industries should continue. Export of Cotton Yarn/Fabrics/Made-ups, Handloom Products etc, Gems and Jewellery, Other Cereals and Man-Made Yarn/Fabrics./Made-up etc. have registered a growth rate between 50%-60%. Agriculture sector has made noteworthy progress, especially during the pandemic, with India emerging as a major global supplier of food / essential agriculture products. Agriculture exports buoyancy is driven by commodities such as rice (both basmati and non-basmati), marine products, wheat, spices and sugar, among others, recording the highest ever agricultural products export in 2021-22. Till 21st March 2022, Australia, Taiwan, Korea Rp, Bangladesh Pr, Poland, Brazil, Indonesia, Belgium, Saudi Arab, Turkey, Italy, Japan, Canada, U S A, South Africa, Netherland, Nigeria, Egypt and Mexico are the major countries which have achieved more than the export target. The Major Countries Thailand, Israel, Nepal, Vietnam Soc Rep, China, France and Sri Lanka Dsr which have achieved between 90% to 100% of total export target. Till 21st March 2022, Organic & Inorganic Chemical, Other Cereals, Petroleum Products, Cotton Yarn/Fabrics/Made-ups, Handloom Products Etc., Mica, Coal and Other Ores, Minerals Including Process, Engineering Goods and Plastic and Linoleumare the major Commodities which have achieved more than the export target. The Major Commodities Rice, Marine Products, Jute Mfg. Including Floor Covering, Carpet, Cereal Preparations And Miscellaneous Processed Item, Electronic Goods, Coffee, Gems And Jewellery and Handicrafts Excl. Hand Made which have achieved between 90% to 100%of the total export target. The government has been working round the clock to provide a conducive environment and infrastructure for our industry and exporters to enhance their export performance. Policies and schemes aligned with the goal are being introduced and implemented for their benefit. The smooth roll out of RoDTEP and ROSCTL even in the midst of the pandemic reflects the strong resolve of the government to walk the talk. The Interest Equalisation Scheme has been extended to exporters and is likely to benefit a large number of MSME exporters. Rigorous efforts for domestic capacity enhancement for deepening integration in the Global Value Chains are being made by working in close partnership with the industry to identify areas where India’s competitive advantages. We will therefore work on strengthening our capabilities and create for the world on the lines of Make in India. PLI schemes for 13 key sectors of manufacturing starting from FY 2021-22 have been announced. A policy shift in the approach envisaged in the Districts as Exports Hub (DEH) initiative has been adopted to boost local production and make Districts active stakeholders in driving export growth of local products/services. Consistent efforts to build and provide export promoting infrastructure are being undertaken via providing appropriate funding, insurance, credit provisions etc. Thus, an effort has been made to set up a firm backward - forward linkage, starting from the district level to the overseas market with the help of multiple stakeholders. In between, the emphasis has been effective and efficient coordination among all stakeholders i.e. district units, State and Central Governments, line Ministries, EPCs, MSMEs exporting communities and our mission overseas to ensure breaking of silos to achieve a coherent and coordinated action for fulfilment of exports target.
Source: PIB
Prime Minister Narendra Modi and his Australian counterpart Scott Morrison held virtual talks on Monday. India and Australia are engaged in “very active discussions and negotiations” for a proposed interim trade deal and are working towards its early conclusion, commerce and industry minister Piyush Goyal said on Wednesday, amid speculations that the signing of the pact may be delayed. Asked about the time-frame for clinching the deal, Goyal said it’s always difficult to set a deadline for such negotiations. Prime Minister Narendra Modi and his Australian counterpart Scott Morrison held virtual talks on Monday. “They have both reiterated the commitment of both the countries for an early conclusion of the interim trade deal,” Goyal said. The statement comes at a time when India is under pressure from Western nations to take a stand against Russia’s invasion of Ukraine. A senior trade executive and a diplomat said the issue might have weighed on the decision on the trade deal as well, apart from possible last-minute changes in the negotiating position. However, a senior government official ruled out any impact of the Ukraine war on the decision to delay the interim deal. Just before the India-Australia virtual summit on Monday, both the sides were hoping to seal the interim deal before the end of March; some expected it to be hammered out as early as Tuesday. In fact, on February 11, both the countries had announced that the interim trade pact would be signed within a month, and a broader free trade agreement, to be called the Comprehensive Economic Cooperation Agreement (CECA), would be hammered out within a year of the operationalisation of the early-harvest deal. Sources have told FE that India will likely allow high-end Australian wine at a concessional duty as part of the interim trade deal but keep dairy products and certain sensitive farm items out of its purview. India is expected to get duty concession in some labour-intensive sectors, including agriculture and textiles, and greater market access in pharmaceuticals. India had a merchandise trade deficit of $7.2 billion with Australia in the first ten months of this fiscal. It shipped out goods worth only $6.3 billion, while its imports stood at $13.5 billion. Major traded items include mineral fuels, pharmaceutical products, organic chemicals and gem and jewellery.
Ukraine war could cause some disruptions Goyal said the ongoing Russia-Ukraine conflict can potentially cause some disruptions in trade and the government is in regular talks with exporters to address any issue emerging from it. The challenges may be in the form of elevated global commodity prices, higher inflationary pressure, disruption in shipping routes and spurt in freight charges. “Those challenges are there before us and that certainly may lead to some kind of disruption because it is coming along with Covid, which is also rearing its head. But we are completely on top of these issues and are in continuous dialogue and hand holding our exporters on a regular basis,” Goyal said.
UAE FTA to be in force in six weeks Goyal said the India-UAE FTA is already ratified by Abu Dhabi and it would be in force in about six weeks. Both the countries signed the FTA last month, which was India’s first such pact in a decade.
FTP to be extended Goyal said given the lofty level of exports and new challenges, the validity of the current foreign trade policy (FTP) could be extended for some more time. This would allow the ministry to firm up a new FTP, factoring in new global challenges as well as opportunities. About the new SEZ law, Goyal said the ministry will start stakeholder consultations from April.
Source: Financial Express
Government is encouraging and promoting Indian exports in international markets and initiate suitable interventions from time to time. The key schemes/interventions taken are:
1. Market Access Initiative (MAI) Scheme provides assistance to Export Promotion Organizations/Trade Promotion Organizations/National Level Institutions/ Research Institutions/Universities/Laboratories, Exporters etc., for enhancement of exports through accessing new markets or through increasing the share in the existing markets.
2. ‘Transport and Marketing Assistance (TMA) for Specified Agriculture Products’ provides assistance for the international component of freight, to mitigate the freight disadvantage for the export of agriculture products, and marketing of agricultural products, is under implementation.
3. Assistance to the exporters of agricultural products is also available under the Export Promotion Schemes of Agricultural & Processed Food Products Export Development Authority (APEDA), Marine Products Export Development Authority (MPEDA), Tobacco Board, Tea Board, Coffee Board, Rubber Board and Spices Board.
4. ‘Districts as Export Hubs Initiative’ for products and services with export potential have been identified in all districts of the country.
5. Trade Infrastructure for Export Scheme (TIES) provides assistance to Central and State Government agencies for creation of appropriate infrastructure for growth of exports.
6. Remission of Duties and Taxes on Exported Products (RoDTEP) provides remission of Central, State and Local duties/taxes/levies which are incurred in the process of manufacture and distribution of exported products, but are currently not being refunded under any other duty remission scheme.
7. Common Digital Platform for Certificate of Origin to facilitate trade and increase FTA utilization by exporters.
8. 12 Champion Services Sectors have been identified for promoting and diversifying services exports by pursuing specific action plans.
9. Active role of EPCs, Commodity Boards and Indian missions abroad towards promoting India’s trade, tourism, technology and investment goals has been enhanced. Bringing in a new legislation to replace the extant SEZ law would involve consultations with Central Government Ministries/ Departments, State Governments as well as relevant stakeholders. The details of the new legislation will take into consideration the consultations held. This information was given by the Minister of State in the Ministry of Commerce and Industry, Smt. Anupriya Patel, in a written reply in the Lok Sabha today.
Source: PIB
Last year in September, the government extended the Foreign Trade Policy 2015-20 till March 31, 2022, due to the COVID-19 pandemic. The present policy came into force on April 1, 2015. The commerce ministry will extend the existing foreign trade policy (FTP) for some more months beyond March 31, Union minister Piyush Goyal said on Wednesday. Last year in September, the government extended the Foreign Trade Policy 2015-20 till March 31, 2022, due to the COVID-19 pandemic. The present policy came into force on April 1, 2015. The policy provides guidelines related to imports and exports in India. The ministry announces the policy every five years. "I think many events that are unfolding are making us work over time to make that policy much more contemporary and more real time, more to the needs of the new india...The existing policy will be continued for some more months," Goyal told reporters here. A separate foreign trade policy cell was created to coordinate with various officials in the formulation of the policy under the supervision of an officer of the level of joint secretary to the Government of India. Director General of Foreign Trade Santosh Kumar Sarangi said a notification with this effect will come in a day or two. "It is likely to be extended by few months," he said.
Source: Business Standard
Polyester-cotton (PC) yarn prices increased further by ₹5-7 per kg today in Indian markets. It is because major spinning mills have raised their offer prices owing to the continuing upward trend in the price of natural fibre. Polyester spun fibre (PSF) remained steady, but it may also increase due to price rise in crude oil which is the basic raw material. Market sources said that price of cotton continued to rise in domestic market, and it neared to ₹85,000 per candy of 356 kg each today. ICE cotton noted some respite in early trade of previous session, but it ended with gentle gains. Costlier cotton forced spinning mills to raise prices of PC yarn by ₹5-7 per kg. PC yarn of both combed and carded varieties was quoted higher by the mills. Traders said that PC yarn demand was slightly better, which is also supportive for price hike. Fabric manufacturers are buying as they are getting better trade enquiry from garment units for domestic supplies. Actually, an optimism for better demand was noticed in the entire value chain particularly for domestic summer buying. Ludhiana, the country’s most prominent man-made yarn market, noted increase in prices by ₹5-7 per kg, while recycled PC and acrylic yarn remained steady. 30 count PC combed yarn (48/52) was sold higher by ₹5 at ₹285-295 per kg (GST extra). 30 count PC carded yarn (65/35) was also priced up by ₹5 at ₹245-255 per kg, according to Fibre2Fashion’s market insight tool TexPro. 20 count PC (recycled-O/E) PSF yarn (40/60) was traded higher at ₹175-185 per kg. Acrylic NM (2/48) was priced at ₹315-320 per kg and acrylic NM (2/32) at ₹265-270 per kg. PSF was noted stable at ₹123 per kg. Meanwhile, yarn market is waiting for reaction in PSF due to increase in crude oil prices, which rose on Wednesday, erasing losses from the previous session, after industry data showed US crude stocks fell last week, underlining how tight global supplies are amid the hit to Russian output from economic sanctions on Moscow. Brent crude futures climbed $1.06 or 0.9 per cent to $116.54 a barrel. US West Texas Intermediate (WTI) crude futures rose 87 cents or 0.8 per cent to $110.14 a barrel. There was steady trend in intermediary products, which is likely to see spike in next month when Reliance Industries Limited will revise its sale prices. RIL’s prices are considered as benchmark for domestic market. RIL’s prices are currently as: PTA ₹88.90 per kg, MEG ₹62.30 per kg and MELT ₹97.64 per kg. ICE cotton futures recorded gentle rise after losses in early session due to profit booking. A prominent agricultural research firm announced that cotton acreage will be slightly lower in the US in next season. Cotton contract for May 2022 closed at 130.04 cents, up 3 points; July 2022 closed at 126.29 cents, up 8 points; December 2022 closed at 108.01 cents, down 15 points. Cotton prices surged by ₹100 to ₹200 per candy of 356 kg in north Indian markets for the third consecutive session on Wednesday amid continued buying by the mills, while daily arrivals declined in mandis. In Punjab, the prices were quoted at ₹82,700-84,000 per candy. In Haryana, cotton prices were quoted at ₹80,700-83,000 per candy. In Upper Rajasthan, cotton was sold at ₹83,000-84,000 per candy. In Lower Rajasthan, cotton was priced at ₹77,800-79,900 per candy.
Source: Fibre2 Fashion
According to an analysis by CII, the highest export potential exists in the sector of electronics, which would continue to remain among the top globally traded items due to rising intensity of digitalization. A dynamic shift has taken place in India’s external engagement with the landmark achievement of the export target of $400 billion for 2021-22. This reflects the country’s accelerated growth graph post the pandemic moderation of 2020, but more emphatically, it moves the export needle from the level of the past few years. While raising the confidence of the business community regarding its global competitiveness, the achievement also sets a strong base for resurgent export growth of the future. We can now credibly target $1 trillion of merchandise exports and a similar level for services exports by 2030. India has demonstrated effectively that it is fully capable of meeting global demand, adhering to international quality standards and ramping up capacity with flexibility within a short time period. The surge in global demand in the aftermath of the pandemic related disruptions of 2020 caused unprecedented supply chain blockages, with shortages of containers, lockdowns in key manufacturing hubs, worker shortages and other factors affecting global trade. That Indian exports were able to overcome all of these challenges is indeed a heartening signal. India’s robust performance over April 2021 to February 2022, crossing 46% growth over the same period for 2020-21, is remarkable also because it came at a time when the country was still dealing with its own lockdowns following the second wave of the pandemic. The total export was also about 28% higher than the same period in 2019-20, before the pandemic hit the shores. The inherent resilience and flexibility of Indian manufacturing companies was underscored convincingly during the year, setting a precedent for coming years. While commodity price increases have contributed to the overall growth of about $118 billion over the previous year, the growth in non-oil, non-gems & jewellery exports stands at almost 34%, which is a significant jump-shift. Excluding these two large export sectors, the products that have displayed high growth include iron and steel at close to $10 billion, machinery ($5.6 billion), vehicles ($5.5 billion), and electronics ($4.9 billion). Another 14 products exhibited additional exports of more than $1 billion over the previous year, including cotton, organic chemicals, cereals, plastics and fish products, attesting to India’s diversified export base. It is to the credit of the central and state governments that despite the global and domestic challenges arising from various factors during the year, the manufacturing environment remained well functioning across the supply chain. A stable rupee exchange rate, stability in policies, credit support to MSME sector and trade facilitation measures also helped exporters to keep their supply chains running smoothly. Schemes to promote electronics, food processing, and marine products, among other policies, contributed to building the requisite capacity to ramp up domestic production. The $400-billion export milestone represents a platform to further expand exports with dedicated efforts in mission mode. The Government has often called for making in India for the world, and this is now entrenched as a new path for Indian goods. While global trade growth may revert to its usual trend line next year, India can strategize to acquire greater share of global exports by building manufacturing in its existing product base as well as looking at emerging products. According to an analysis by CII, the highest export potential exists in the sector of electronics, which would continue to remain among the top globally traded items due to rising intensity of digitalization. Machinery, vehicles, pharmaceuticals and plastic products are the others in the top five categories that have the potential to contribute the most to the $1 trillion target. Traditional items of strength such as textiles and apparel, food processing and leather products can also be stepped up. Some products where India enjoys the capability to capture larger export share are organic chemicals, optical and medical equipment and essential oils. Apart from these, India should also look at emerging sectors such as solar panels, wearables and hearables, drones, robotics and so on. The recent production linked schemes in some of these sectors would go a long way in raising manufacturing investments and production. It is also important for India to look beyond manufactured goods to agricultural products, where the country has recently performed well, and to services. The service sector growth during April 2021 to February 2022 (estimated) over the same period last year was robust at 22%. However, most of this is concentrated in the categories of software and other business services. Globally, trade in services is led by sales through the establishment of foreign controlled affiliates (mode 3) and cross-border services transactions (mode 1) also has a high share. India should introduce a strategy for enhancing its overseas investments to gain greater share in global services exports. The $400 billion export achievement is indeed laudable and strengthens Indian industry resolve to look outward for its growth with the encouragement of the government. The author is Director General, Confederation of Indian Industry.
Source: Financial Express
Production Linked Incentive (PLI) scheme will account for 13-15 per cent of the average annual investment spending in key industrial sectors over the next threefour years, according to a report by Crisil. Since its introduction in March 2020, PLI has been announced for 15 sectors, involving government incentives to the tune of Rs 1.93 lakh crore. Of this, 50-60 per cent is to be spent on sectors with domestic manufacturing and export focus, and the rest on import localization. "Implementation of the Production Linked Incentive (PLI) scheme will lead to a potential capital expenditure (capex) of Rs 2.5-3 lakh crore over the scheme period and will account for 13-15 per cent of average annual investment spending in key industrial sectors over the next 3-4 years," the rating agency said in a report released on Wednesday. PLI is now poised for a rapid on-theground execution, with almost 60 per cent of the capex already approved and major spending set to occur over FY23-FY26. The capex has been approved for 10 sectors, it said. While the capex in mobile, pharma and telecom has already kicked off, that in capitalintensive sectors such as automobile and solar photovoltaics - which form 70 per cent of the committed investment - will kick off from April 2022, the agency said. The scheme has received interest from over 900 players across sectors, of which around 350 have got approval so far. The Crisil Director Hetal Gandhi said PLI will spur green investments in India, with around 55 per cent of the scheme expected to be green, in sectors such as electric vehicles/fuel cell electric vehicles, and solar photovoltaics. The report said that along with supply-chain integration, PLI will aid exports too. Of the 15 sectors, nine have an export potential, ranging from 20-80 per cent of the incremental revenue generated, the agency said, adding that this, in turn, can create an annual export potential of Rs 2 lakh crore or 6 per cent of the total exports of calendar year 2021. Sectors that could benefit from exports include mobiles, pharma, food processing, IT hardware, white goods and specialty steel, the agency said.
Source : PIB
Department for Promotion of Industry and Internal Trade (DPIIT), in coordination with Central Ministries/Departments, States and Union Territories (UTs), has spearheaded various reforms to improve business regulatory environment in the country. On the lines of annual assessment done by the World Bank for its Doing Business Report (DBR), DPIIT spearheads a dynamic reform exercise called Business Reforms Action Plan, which ranks all the States and UTs in the country based on implementation of designated reform parameters. The focus of the reforms has been on streamlining the existing regulations and processes and eliminating unnecessary requirements and procedures. The Action Plan covers number of reform areas such as Investment Enablers, Online Single Window System, Land administration and Transfer of Land and Property, Construction Permits Enablers, Labour Regulation Enablers, Environment Registration Enablers, Inspection Enablers, Paying Taxes, Obtaining Utility Permits, etc. The Ministry of Labour and Employment has taken several initiatives towards simplification of Labour Laws for ease of doing business. The Government has notified four Labour Codes, namely, the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 by simplifying, amalgamating and rationalizing the relevant provisions of 29 Central Labour Laws. Through Labour Codes provisions have been made for one registration for an establishment instead of multiple registrations, one license and one return in place of multiple licenses and returns. Shram Suvidha Portal (SSP) is a major IT initiative of the Ministry, towards ease of doing business and reducing the complexities in labour law compliance. Department of Justice (DoJ) and Department of Legal Affairs have taken following measures for timely disposal of commercial cases which promote Ease of doing Business:
DPIIT, in coordination with Central Ministries/Departments, States and UTs, spearheads the exercise of reducing compliance burden for improving overall business regulatory environment in the country. The objective of this exercise is to improve Ease of Doing Business and Ease of Living and Government to Business and Citizen interface hasslefree. The key focus areas of the exercise are:
1. Rationalization/Auto-renewal of licenses/certificates/permissions
2. Risk-based / Third-party Inspections and Audits
3. Standardized and simplified return filing
4. Rationalized maintenance of registers
5. Minimize / eliminate display requirements
6. Digitization and simplification of manual forms and records
7. Decriminalization of minor technical and procedural defaults 8. Repeal or amendment of redundant laws
Ministry of Micro, Small and Medium Enterprises has undertaken various steps towards improving the ease of doing business that include, inter alia, introduction of Online Registration – Udyam Registration (completely online and no fees), constitution of Review Committee to monitor the progress of the implementation of the Policy, opening of a grievance cell to redress the Grievances of MSEs and launch of “MSME Sambandh Portal” to monitor the progress of procurement by the CPSEs from MSEs, etc. This information was given by the Minister of State in the Ministry of Commerce and Industry, Shri Som Parkash, in a written reply in the Lok Sabha today.
Source: PIB
After a Covid-induced drop in FY21, India’s exports recovered sharply in the current fiscal and rose 37% on year to hit $400.8 billion as of March 21. As India realised a record export target of $400 billion for FY22 ahead of schedule, Prime Minister Narendra Modi on Wednesday hailed the performance of every stakeholder of the exporting community—from farmers to small businesses. “History has been scripted,” he said, and cast the success as a key “milestone” in India’s journey towards self-reliance. “India set an ambitious target of $400 billion of goods exports and achieves this target for the first time ever. I congratulate our farmers, weavers, MSMEs, manufacturers, exporters for this success. This is a key milestone in our Aatmanirbhar Bharat journey. #LocalGoesGlobal,” Modi tweeted. After a Covid-induced drop in FY21, India’s exports recovered sharply in the current fiscal and rose 37% on year to hit $400.8 billion as of March 21.
Source: Financial Express
The Textile industry is one of the largest sources of employment generation in the country with an estimated 45 million people directly engaged in this sector including a large number of women and rural population. Taking into account the employment potential of textile sector, the Government is promoting investment in this sector which will create additional jobs, businesses and skilling opportunities under the broad objectives of various policy initiatives of the Government including “Skill India” and “Make in India”. Details of important schemes launched by the Government in textile sector which also supports employment generation and provides livelihood are given at Annexure.
Annexure Details of important schemes launched by the Government in textile sector which also supports employment generation and provides livelihood I. Scheme for Capacity Building in Textile Sector (SAMARTH) - To address the skilled manpower requirement across textile sector, the scheme was formulated, under the broad policy guidelines of “Skill India” initiative and in alignment with the framework adopted for skilling programme by Ministry of Skill Development and Entrepreneurship. The scheme is approved for implementation till March, 2024. II. Amended Technology Up-gradation Fund Scheme (ATUFS): In order to promote ease of doing business in the country to achieve the vision of generating employment and promoting exports through “Make in India’’ with "Zero effect and Zero defect" in manufacturing, ATUFS was launched in January 2016 to provide credit linked Capital Investment Subsidy (CIS) to units for purchase of benchmarked machinery in different segment of Textile Sectors (excluding spinning). This scheme is effective up to March, 2022. III. National Technical Textile Mission: Creation of National Technical Textiles Mission for a period of 4 years (2020-21 to 2023-24) was approved with an outlay of Rs.1480 crore for developing usage of technical textiles in various flagship missions, programmes of the country including strategic sectors. IV. Production Linked Incentive (PLI) Scheme - The PLI Scheme for Textiles to promote production of MMF apparel, MMF Fabrics and Products of Technical Textiles in the country to create 60-70 global players, attract fresh investment of Rs. 19,000 crore approximately and generate almost 7.5 lakh new employment opportunities. V. PM-MITRA: To attract investment for ‘Make In India’ initiative and to boost employment generation through setting up of 7 (Seven) PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks in Greenfield/Brownfield sites with world class infrastructure including plug and play facility with an outlay of Rs.4445 crore for a period of seven years upto 2027-28. VI. Scheme for Integrated Textile Parks (SITP): The scheme provides support for creation of world-class infrastructure facilities for setting up of textile units. VII. Integrated Processing Development Scheme (IPDS): In order to facilitate the textile industry to meet the required environmental standards and to support new Common Effluent Treatment Plants (CETP)/ upgradation of CEPTs in existing processing clusters as well as new processing parks specially in the Coastal Zones. VIII. Special Package for Textile and Apparel sector: Rs. 6000 crore package was launched in June 2016 to boost employment and export potential in the apparel and made up segments. IX. Various sectoral schemes to support traditional textile sectors such as handlooms, handicraft, silk and jute. This information was given by the Minister of state for Textiles Smt. Darshana Jardosh in a written reply in the Lok Sabha today.
Source: PIB
The state government has submitted a proposal to the Centre for establishment of a textile park under the PM Mega Integrated Textile Region and Apparel (PM MITRA) scheme that aims for holistic development of the sector. In all, the Centre has received 17 proposals from 13 states for the establishment of textile parks. The state government wants to set up the proposed textile park at the special economic zone (SEZ) of Tata Steel at Gopalpur in Ganjam. Around 1,000 acres have been identified by state-owned Idco within the SEZ for the facility, official sources said. In a written reply to a query by Bhubaneswar MP Aparajita Sarangi on Wednesday, Union minister of state for textiles Darshana Jardosh told the Lok Sabha that the proposals are under scrutiny for consideration by the project approval committee. The parameters devised for selection of sites for PM MITRA parks include connectivity to the site (25%), existing ecosystem for textiles (25%), availability of utility services at site (20%), state industrial/textile policy (20%) and environmental/social impact (10%), said the Union minister. Though initially the textile park was planned at Neulopoi in Dhenkanal district, the location was changed as it comes under an eco-sensitive zone.
Source: Times of India
The Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal has said that the state of Bihar has huge potential under the One District-One Product (ODOP) programme to contribute to India’s rising exports. Stating that the State’s GDP is rising rapidly, he said Bihar has made rapid strides in Health and Education sectors. “You have identified products for exports in each district, be it Bhagalpur silk, pharmaceuticals from Sivan, bamboo products from Samastipur or the ‘Shahi Litchi’ and ‘Lahati’ fruits of Muzaffarpur, all of these products are famous worldwide,” said Shri Goyal, addressing the Bihar Utsav celebrations at the Dilli Haat last night to mark the Bihar Diwas, the 110th year of establishment of the State. Stating that Bihar is a land of immense opportunities, Shri Goyal said the Cooperative sector should be strengthened and the Farmer Producer Organizations (FPOs) empowered to boost production. He hoped that with implementation of the New Education Policy, the youth will be imparted Vocational Training to contribute to the development of the state. “In recent times, an entrepreneur from the state, Praveen Chauhan, has extracted natural dyes from the flowers of Bodhgaya temple. Today, his dyes are being used in fashion textiles even as far as in Japan,” he said. Shri Goyal said the Prime Minister Shri Narendra Modi has gone a step ahead from the ‘Look East’ policy to ‘Act East’ policy, which includes Bihar, neighbouring Jharkhand and West Bengal besides the eight states of the North-Eastern Region. “Our Government has undertaken several development projects in Eastern India, not only started the projects but also completed them,” he said. Recalling the rich heritage of Bihar, Shri Goyal said Shri Goyal said, India's greatest empires, - the Mauryan empire and the Gupta Empire rose from this land and laid the foundation for the modern India. “This land taught the world its first lesson in democracy. Vaishali, the capital of Vajji Mahajanapada, was run by the Sangh (Assemblies of people). Bihar also laid firm the roots of nationalism, Mahatma Gandhi started the first civil disobedience from Bihar with Champaran Satyagraha in 1917. Bihar also led the country during the movement against the Emergency led by Jayaprakash Narayan,” he said. Shri Goyal said Nalanda in Bihar was a center of learning in ancient India. “It is said, - I am Chanakya’s Niti (Policy), I am Aryabhatta’s Aavishkaar (Discovery), I am the Tapasya (Penance) of Mahavira, I am Buddha’s Avatar (Incarnation), I AM BIHAR,” he said. Stating that the great land of Bihar has played a vital role in the glorious history of India, Shri Goyal hoped the youth of Bihar, through their valour and hard work, will take the state to newer heights. Union Ministers Shri Giriraj Singh, Shri Ashwini Kumar Choubey and Shri RCP Singh also attended the function.
Source: PIB
Việt Nam has set a target of becoming an industrialised country with highly competitive industries, and among the world's top 15 largest exporters by the end of 2030. According to a report by the Ministry of Industry and Trade (MoIT), the country's immediate target is to develop 20 products with strong international brands, to strengthen its position in the global supply chain, to bring its supporting industry's capacity to meet 70 per cent of domestic demand and localisation of production to 45 per cent. The country's supporting industry, which remained underdeveloped and overly reliant on imports, has been identified as a major weakness for Việt Nam, especially in key industries such as electronics, textile, leather and footwear, manufacturing and automobile. The effect has been made painfully clear since the pandemic as Việt Nam's top suppliers of parts, including Chia, South Korea and Japan, were hit hard by COVID-19, causing severe disruptions to production in Việt Nam. In addition, over-reliance on outside supplies has crippled the development of indigenous supporting industries while cutting deep into domestic firms' profitability. For example, the Southeast Asian economy relies on China and South Korea for as much as 90 per cent of the input materials for textile, footwear and electronics. Experts have long raised concerns over the country's inability to contribute more to product value, putting it at high economic risk in the event large international corporations decided to move production elsewhere. In order to address the issue, the MoIT has proposed a restructuring plan for Việt Nam's industries with a focus on the development of supporting industries. According to the ministry, significant progress had been made in the 2011-20 period with industrial production accounting for around 27.45 per cent of the country's total GDP annually. The ministry advised the government to focus on qualitative development instead of quantitative and to take measures to improve productivity, one of the main weaknesses of the economy. The ministry said by the end of 2030, industrial production is to account for 40 per cent of total GDP, manufacturing value added per capita over US$2,000 with a 45 per cent contribution from high-tech industries. The ministry said among the top priorities for the next ten years is how to restructure many State-own enterprises under their own management, which have been underperforming and causing losses in the billions of dollars for decades now.
Source: EIN News
Voices hope it will enhance forex reserves, revive sick industrial units Textile exporters have welcomed the industrial support package, announced by Prime Minister Imran Khan, and stated that it focused on industrialisation, foreign exchange inflows and revival of sick industrial units. They added that the scheme sets pro-growth measures in place to steam up industrialisation, boost exports and place the country’s economy on path of sustainable growth. Appreciating the government’s initiative on Tuesday, Pakistan Textile Exporters Association (PTEA) Chairman Sohail Pasha termed the industrial package right move and argued that it would trigger industrial revolution and boost economic productivity in the country. “The protection of the stakes of the industrial sector and rapid economic progress is must to tackle the ongoing challenges,” he added. “This package will steer growth-led revenue generation for Pakistan, help it overcome revenue and current account deficit and revive the idle capacity.” He stated that during the last decade, sizable textile capacity turned non-functional and the number of sick units rose on account of bad business conditions. In absence of any mechanism for rehabilitation, the textile industry was unable to produce as per its installed capacity. “Now with this package, the activation of idle capacities in the value-added textile sector has become possible which will significantly help in fetching additional $1.5 billion worth of foreign exchange and generate over 100,000 employment opportunities,” he said. Appreciating the government’s assistance in boosting export growth, PTEA Vice Chairman Ameer Ahmad said that the leadership was serious about pushing exports as it came up with export facilitation policies including Export Facilitation Scheme and competitive energy prices in the key export industries.
Source: The Tribune
Sri Lankan lawmakers on Tuesday approved reforms to a harsh anti-terror law that rights groups have long criticized, as the country looks to shore up its trade relations with the European Union Sri Lankan lawmakers on Tuesday approved reforms to a harsh anti-terror law that rights groups have long criticized, as the country looks to shore up its trade relations with the European Union amid its worst economic crisis in memory. The vote on the anti-terror law followed a European Parliament resolution last year that called for a preferential trade scheme with Sri Lanka to be used as leverage for rights reforms in the South Asian country. The Generalized Scheme of Preferences, or GSP Plus, allows substantial duty concessions on imports from selected countries. The EU review on the concession is expected shortly. Sri Lankan opposition groups and lawmakers called the reforms cosmetic," saying antiterrorism laws still would allow an arrest of a suspect without a warrant and courts would allow confessions often obtained through torture to be used as evidence. They say the 1979 anti-terror law has been widely abused, causing a large number of innocent people to spend years in prison without trial. Justice Minister Ali Sabry, however, said the reforms were substantial and allow suspects to challenge their detention in court and expedite hearings to prevent lengthy pretrial detentions. The reforms were only the beginning of a process and the government will soon introduce a new law, Sabry added. Most of Sri Lanka's history since its independence from Britain in 1948 has been mired in armed uprisings. There were two Marxist insurrections in 1971 and 1987 to 1990. There was also a full-blown civil war between government forces and ethnic Tamil rebels for 26 years. With a $7 billion debt obligation for 2022, Sri Lanka is badly in need of foreign currency with dwindling reserves and massive debts to pay. There are severe shortages of essentials like medicine and fuel that have handicapped power supplies. Europe's GSP Plus eliminates import duties on a large share of Sri Lanka's products, such as textiles, tea and fish, an advantage worth some $360 million annually, according to the EU.
Source: Business Standard
In response to pandemic containment efforts, Intertextile Shanghai Apparel Fabrics – Spring Edition and Yarn Expo Spring will be merged with the respective Autumn Editions of the shows from August 29-31, whilst Intertextile Home Textiles will also be moved to the same aforementioned dates, as revealed by the fair organiser Messe Frankfurt. The fairs will take place at the National Exhibition and Convention Center in Shanghai. “In view of recent outbreaks in multiple provinces and cities in China, and to support the government’s pandemic control measures, the organisers of the fairs have decided to adjust the three spring shows by combining the Spring and Autumn editions of Intertextile Apparel and Yarn Expo, and holding these concurrently with the Spring edition of Intertextile Home. The decision is necessary to reduce the risk of transmission and to ensure the welfare of all our participants. We will keep in close communication with all parties involved and we look forward to providing an effective sourcing platform for the textile industry when it is safe to do so. As we continue to adapt during these challenging times, we’d like to express our thanks to all participants for their unwavering understanding and support,” Wendy Wen, senior general manager of Messe Frankfurt (HK) Ltd., said. Intertextile Shanghai Apparel Fabrics is co-organised by Messe Frankfurt (HK) Ltd; the Sub-Council of Textile Industry, CCPIT; and the China Textile Information Centre. The co-organisers of Yarn Expo are Messe Frankfurt (HK) Ltd and the Sub-Council of Textile Industry, CCPIT. Intertextile Shanghai Home Textiles is co-organised by Messe Frankfurt (HK) Ltd; the Sub-Council of Textile Industry, CCPIT; and the China Home Textile Association (CHTA).
Source: Fibre2Fashion
