Synopsis "The exercise to set the target for the next fiscal is on and should be complete in a month," an official told ET. The ministry has started talks with commodity boards, export promotion councils and Indian embassies abroad for next year's export plan. The commerce and industry ministry has begun drawing up export strategy for the next financial year, which will build on the milestone achievement of over $400 billion export turnover in FY22. The ministry is setting up a dedicated 'trade promotion body' to drive overall promotion strategy, export targets, and execution to achieve $2 trillion in exports by 2027. "The exercise to set the target for the next fiscal is on and should be complete in a month," an official told ET. The ministry has started talks with commodity boards, export promotion councils and Indian embassies abroad for next year's export plan. Recommended by the government had for the current year roped in overseas missions and the overall export target was also distributed country-wise, covering even the smallest country. As many as 200 country or territory targets were set and export plans were finalised product-wise and state-wise as well. A special attention was also given to exploration Another official said that the export roadmap will be finalised in a month as the government is watchful of the high commodity and oil prices and is unlikely to set an unachievable target. "Given the rise in prices this year, there is a thought that setting an unachievable, ambitious target will not be correct," said the official. The public-private SCALE committee has suggested the government to double the exports of manufacturing goods in five years, reduce the imports about 2/3 over and target a 9% growth in domestic consumption from the current 7% with incremental value added of about $350 billion. As per another official, there is a view that though input prices may not soften anytime soon, a conservative estimate would be realistic for the exporters to meet and a special focus is likely on those countries where actual exports have exceeded their respective targets in FY22. of new markets as also to re-establish presence in those where market share had been lost. Of the 200 countries to which India exports its goods, the outbound shipments have exceeded their original projections in more than 50 countries. "The ministry has given a tentative target for FY23 but we have suggested a lower number as we are not sure of the push that input prices will offer this year given the situation in Russia and Ukraine," said a representative of an export promotion council. The Confederation ofIndian Industry has identified 14 product categories including pharmaceuticals, electrical machinery, vehicles, plastics, furniture and textiles for India to clock $1 trillion merchandise exports by 2030.
Source : Economic Times
According to the pact, the UAE will allow as many as 99% of Indian goods (in value term) at zero duty in five years from about 90% in the first year. India-UAE relations will be a “defining partnership of the 21st century”, commerce & industry minister Piyush Goyal said on Monday, over a month after both the sides forged a free trade agreement (FTA), which was New Delhi’s first such pact with any economy in a decade. Addressing a roundtable meeting in Abu Dhabi on Indian start-ups, Goyal said India aspires to emerge as the world’s largest start-up destination. “Today we are the third- largest start-up ecosystem, but our aspiration is to be the world’s number one start-up destination,” he added. The minister said the FTA with the UAE is expected to further enhance bilateral trade and business-to-business engagements, and help explore attractive investment opportunities, according to an official statement. According to the pact, the UAE will allow as many as 99% of Indian goods (in value term) at zero duty in five years from about 90% in the first year. India would allow duty-free access to 80% of goods from the UAE now and it would go up to 90% in ten years. “I can assure you that we will take this partnership to newer heights in the areas of sustainability, aerospace, space technology, connectivity, AI, data analytics, 5G, Metaverse, etc. We look forward to leveraging each other’s offerings and expertise,” Goyal said. The event was co-chaired by the UAE minister of state for entrepreneurship and SMEs, Ahmad Belhoul Al Falasi (who was virtually present); Thani Zeyoudi, the UAE’s minister for international trade; and Mohamed Al Sharaf, chairman, Abu Dhabi Economic Development Department. Representatives of ADGM, ADQ, Mubadala, Masdar, ADIO, AD Residents Office, G42, Hub71, Ardent Advisory, Chimera Investment also participated in the session, among others. The minister lauded the promotion of Indian start-ups by the India Innovation Hub platform under the India Pavilion at the Dubai Expo. “I do hope that the 700 start-ups that have showcased their innovation at Expo2020 Dubai would have all gone back enriched with newer opportunities and ideas for the future,” Goyal added.
Source: Financial Express
Union Minister of Commerce & Industry, Consumer Affairs and Food & Public Distribution and Textiles, Piyush Goyal today said that the country aspires to become the largest startup ecosystem in the world. Union Minister of Commerce & Industry, Consumer Affairs and Food & Public Distribution and Textiles, Piyush Goyal today said that the country aspires to become the largest startup ecosystem in the world. Addressing a session on ‘Gateway to Growth – Roundtable on Indian Startup Ecosystem’ in Abu Dhabi, UAE, The minister said, “Today we are the third-largest Startup ecosystem, but our aspiration is to be the world’s number one startup destination. The Startup bug has caught India’s imagination. The entire innovation ecosystem that the Startup industry represents is giving a new direction, new momentum to India.” The session was co-chaired by the UAE Minister of State for Entrepreneurship & SMEs, Ahmad Belhoul Al Falasi (virtual), Dr Thani Zeyoudi, Minister for International Trade, Mohamed Al Sharaf, Chairman, Abu Dhabi Economic Development Department. Representatives of ADGM, ADQ, Mubadala, Masdar, ADIO, AD Residents Office, G42, Hub71, Ardent Advisory, Chimera Investment among others also participated in the session. The minister said, “India offers one of the best ecosystems for Startups with a special ‘jugalbandi’ or blend between investors and entrepreneurs to get a balanced outcome and achieve a win-win solution for all. I have seen tremendous response from the Dubai Expo where our Startups have got the opportunity to raise finances, sign MoUs and get angel investments. All these aspects will help strengthen India’s strong bond of friendship with the UAE.” The Minister appreciated the promotion of Indian Startups by the India Innovation Hub platform under the India Pavilion. “I do hope that the 700 startups that have showcased their innovation at Expo2020 Dubai would have all gone back enriched with newer opportunities and ideas for the future. I am sure that this initiative between India and the UAE on innovation and future technologies will power the growth of businesses and take wings as we go forward,” added the Minister. He said that startups need to experiment, fail and learn from their experiences. “I would urge all of you from the Startup world to go the extra mile and take the Startup story to all the remote places, villages, small towns, northeastern India and other regions,” added Goyal. On the Government’s role in promoting Startups, the Minister said that India aims to provide a level playing field and the best business ecosystem to the Startups. “We have recently finalized the Comprehensive Economic Partnership Agreement (CEPA) with the UAE, which is expected to further enhance bilateral trade, B2B engagement and explore attractive investment opportunities. I can assure you that we will take this partnership to newer heights in the areas of sustainability, aerospace, space technology, connectivity, AI, data analytics, 5G and Metaverse. We look forward to leveraging each other’s offerings and expertise,” added the Minister. The minister said that the UAE-India partnership is destined to play an important role in the global economy and in ensuring a better future for billions of people around the world. “This will be a defining partnership for the 21st century,” added the Minister.
Source: The Statesman
Though India’s textile and apparel market was affected as manufacturing and exports of essential goods and services were prioritised by all countries in the wake of the ongoing COVID-19 pandemic, signs of recovery are visible in 2021-22, according to the Export Preparedness Index (EPI) 2021 released recently by NITI Aayog and the Institute of Competitiveness. Rising consumer demand and the government’s increased efforts to boost the textilegarment sector have led to the textile sector maintaining a trade surplus in India’s export basket, it said. The year-on-year (YoY) growth in textile products increased to 53.86 per cent in AprilNovember 2021, which shows robust growth signals. Cotton fabrics, made-ups and readymade garments of cotton, including accessories, have driven the exports. The government has also achieved 68 per cent of the annual target of $44 billion for textiles and apparel, including handicrafts, in 2021-22, the document said. EPI 2021 brings out three major challenges to India’s export promotion. These are intraand inter-regional differences in export infrastructure; weak trade support and growth orientation across states; and lack of research and development infrastructure to promote complex and unique exports. It noted that India has not fully exploited the Lewis curve for low-skill manufacturing compared with more skill-intensive exports. Low or unskilled exports include those of apparel, textiles, leather and footwear. Since the nation has a comparative advantage in low skilled exports, it must boost its manufacturing capacity to further exploit this opportunity, the document noted. India lags behind to tap on existing market potential in contrast with Vietnam, Bangladesh and China, which continue to lead exports in this category, it observed. The report is a comprehensive analysis of India’s export achievements. The index can be used by states and union territories to benchmark their performance against their peers and analyse potential challenges to develop better policy mechanisms to foster export-led growth at the sub-national level. The Export Preparedness Index is a data-driven endeavour to identify the fundamental areas critical for subnational export promotion. The EPI ranks states and union territories on four main pillars—policy, business ecosystem, export ecosystem and export performance—and 11 sub-pillars—export promotion policy, institutional framework, business environment, infrastructure, transport connectivity, access to finance, export infrastructure, trade support, research and development infrastructure, export diversification, and growth orientation.
Source: Fibre 2 Fashion
Margins will continue in the 10-12 per cent range in FY23 as well The Indian textile industry, which has a significant presence of micro, small and medium enterprises, is expected to close the current fiscal year (FY22) on a strong note (on the pandemic-hit previous year’s low base), and continue to grow next fiscal (FY23) as well. . Demand for textile products has recovered, with economic recovery and wider coverage of vaccination in domestic and international markets alike. Additionally, Indian exports have got a boost owing to the US ban on China’s Xinjiang cotton, and are likely to continue growing in the medium term. The impact of the Russia-Ukraine crisis remains a monitorable, though. Within textiles, the cotton yarn market is estimated to grow 38- 42 per cent this fiscal, driven by exports, which picked up rapidly from the second quarter. Next fiscal, the market is expected to increase a further 8-12 per cent year-on-year, riding on sustained recovery in both domestic and export markets. Readymade garments (RMG), after a significant decline last fiscal, is expected to grow 16-20 per cent this fiscal and a further 13-18 per cent in FY23, riding on the reopening of offices, commercial premises, and educational institutions. The home textiles segment will benefit from a sharper focus on health and hygiene spurred by the pandemic. The Ebitda margin for spinners has also seen a sharp rise in the second and third quarters this fiscal year, as they were able to pass on the price rise to customers. In FY22 overall, the Ebitda margin is expected to increase 600-800 bps to 20-22 per cent, and will likely remain healthy in FY23 as well. RMG margins, too, are estimated to improve, by 150-300 bps to about 13 per cent in FY22, due to better operating leverage. Margins will continue in the 10-12 per cent range in FY23 as well.
Source: Business Standard
Textile industry has been the focus area of Prime Minister Narendra Modi-led government for quite some time now. The industry accounts for 4 per cent of India's gross domestic products (GDP) and is crucial for earning foreign exchange. The Indian government has also taken several initiatives to encourage the rapid growth of the country's technical textiles sector. Even before the National Technical Textiles Mission, the central government began to promote this sector. In accordance with this, 207 technical textile products were assigned the Harmonized System of Nomenclature (HSN) code in 2019 under the Foreign Trade Policy. To promote the use of technical textiles in various fields, 92 areas have been identified under 10 central ministries where the use of technical textiles is mandatory. The Bureau of Indian Standards has established standards for 377 technical textile products. The Ministry of Textiles also added six new courses to the Samarth scheme, which is run by the Ministry. With this in mind, the National Technical Textiles Mission was launched in 2020, taking into account the enormous potential. At the moment, it contributes approximately 14 per cent to industrial production and approximately 13.5 per cent to foreign income. It accounts for 13.5 per cent of India's exports, and it is the second largest employment provider after agriculture. Over the last four decades, this industry has grown at a 3 to 4 per cent annual rate. However, as a result of focusing on this sector over the last seven years, its annual growth rate has increased to around 8-9 per cent. Technical textiles, or textiles used in a variety of industries such as automobiles, civil engineering, construction, agriculture, health care, and industrial safety, are an important component of the textile industry. The National Technical Textiles Mission was adopted by the central government to establish India as a global leader in technical textiles over a four-year period (from 2020- 21 to 2023-24) at a cost of Rs 1,480 crore. According to Piyush Goyal, Union Minister of Textiles, "The growth of technical textiles in India has gained momentum in the last 5 years, and it is currently growing at an annual rate of 8 per cent." We intend to increase this growth rate to 15-20 per cent over the next five years. On January 17, the Union Ministry of Textiles approved 20 important research projects in the areas of special fibres and geotextiles worth Rs 30 crore under the National Technical Textiles Mission. Sixteen of the 20 research projects are in the special fibre sector, including five in the health care sector, four in the industrial and defence sectors, three in energy storage, three in textile waste recycling, and one in agriculture. The remaining four projects are all geotextile- related. Eleven research projects worth Rs 78 crore and 60 lakh were approved in March of last year. At present, the government is actively working to promote the development of technical textiles in India. To that end, the government has launched several initiatives, including the Scheme for the Growth and Development of Technical Textiles, the Technology Mission on Technical Textiles, and the Scheme for Promoting the Use of Agro-Textiles in the North East Region. With the Scheme for Promotion of Use of Geotechnical Fabrics, the Technology Upgradation Fund Scheme, and the Scheme for Integrated Textile Parks, the Production Promotion Scheme (PU) has opened new doors in the textile industry sector. The PLI scheme now includes the technical textiles sector. After China, India is the only country in the world that has every type of synthetic and natural fibre available. India can strengthen its position in the domestic and international markets due to the availability of raw materials for technical textiles. Manufacturing infrastructure is readily available in India, which has vital resources such as land, electricity, water, manpower, and a favorable regulatory framework for industries. Technical textile manufacturing is a simple process that can be combined with an appealing and growing market to increase demand.
Source: Investing
The MoU, signed in the presence of state Chief Minister M K Stalin, who is currently visiting the UAE While the malls will be built at a cost of Rs 2,500 crore, the food processing unit will come up at a cost of Rs 1,000 crore. The MoU between LuLu Group International and the state government was signed in the presence of Chief Minister M K Stalin and M A Yusuff Ali, Chairman and Managing Director of LuLu Group International. The government said the three projects will provide employment to over 5,000 people. As per the MoU, the first shopping mall will come up in Chennai by 2024, while the first hypermarket is expected to open by this year-end itself in Coimbatore, Laxmi Mills compound. “Apart from the malls and hypermarkets, the Lulu Group will also set up food processing and logistics centres for procuring and processing Agri-produce for exports to Middle Eastern countries. A high-level delegation from Lulu will soon visit the state to finalise locations and related formalities,” the company said. “We are very happy to explore bigger investment opportunities not only in Chennai but also in tier two cities such as Coimbatore, Salem, Madurai, Trichy,” Yusuff Ali said. On Saturday, Ali, while complimenting Tamil Nadu for its excellent state-of-the-art infrastructure, had said that the group will begin construction of the malls “very soon.” During Stalin’s visit to the UAE, the government signed MoUs with various companies. In his speech, Stalin said the state government, ever since he assumed the office of Chief Minister in 2021, has signed 124 MoUs attracting investments worth $8 billion creating employment opportunities for nearly 20,000 people. “Tamil Nadu has registered a positive GDP growth rate of 5.8 per cent in 2020-21 in contrast to negative growth in most economies. This clearly demonstrates why global investors have reposed and undertaking measures to attract investments in new sunrise sectors such as electric vehicles, advanced chemistry cells, and technical textiles. Stalin invited industrialists from the UAE to invest in food processing, real estate, hospitality, and food parks among other sectors. He also asked investors from Dubai to consider setting up their units in a massive furniture park that is coming up in Thoothukudi in southern Tamil Nadu. “Our goal is to attract investment across sectors, including manufacturing and services, and to develop Tamil Nadu into a global investment hub. Our mission is to achieve economic development through inclusive growth and maintaining social well-being,” Stalin said.
Source: Deccan Herald
Looking to shop for fabrics or apparel? You may have to shell out a bit more for your clothing now. As cotton price touched a record high of Rs 88,000 per candy and dyes and intermediate prices also surged by 30%, textile processors have increased processing charges. Several textile processing units in Ahmedabad increased processing charges by Rs 2 per metre with effect from April 1. This is the second time that processing units have increased processing charges, the first one being soon after Diwali by Rs 7 per metre. This will add at least 7% to apparel costs, which have gone up by 30% in the past, indicate industry stakeholders. Naresh Sharma, former vice president of Ahmedabad Textiles Processors’ Association said, “Raw material prices have increased drastically. Prices of coal, colour, and chemicals have increased so some of the processing houses have decided to increase charges. However, all the process houses are not able to increase prices as the market is very competitive. Meanwhile, at least 500 textiles processing units in Danilimda and Suez areas have been closed following the Sabarmati pollution issue. According to sources, this has resulted in shifting of orders to Piplaj and Narol units. With more orders in hand, these units are running at almost full capacity. “The textile processors are exercising their monopoly and raising prices,” said a source. Textile traders and garment manufacturers however, are opposing the move, terming it as unethical. “After Diwali, prices increased by 30% and this will soon reflect on retail counters. We have to pass on the price rise to customers at a time when our cost of production is up. Many traders have started quoting higher rates for garments, and others will soon follow. This in turn will hit demand for clothes,” said Vijay Purohit, president of Gujarat Garment Manufacturers’ Association. The issue was also discussed in a recent meeting held last week by the Maskati Cloth Merchants’ Association. “The association has released a circular stating that textile processing houses will have to finish orders as per earlier price commitments,” said Gaurang Bhagat, president of the association. The traders have been asked to clearly mention grey quantity, processing rates, dyeing, design and delivery rate, while signing contracts with processing units.
Source: Times of India
Govt must facilitate exports, ensure its policies result in sustainable growth Recent global events, which include not only the RussiaUkraine conflict but also the withdrawal of US troops from Afghanistan and the Covid-19 pandemic, have led to several discussions on the level of diversification in export products of Pakistan as well as in its export markets. Exports from Pakistan have shown an upward trajectory over the last couple of years, with a substantial growth in exports of textile and IT sectors. Although the former is traditionally an export-oriented sector, which generates a significant proportion of the total export revenue for Pakistan, the recent growth spurt in the IT sector reveals its true potential. Furthermore, imports have also risen along with exports and that too at a relatively faster rate. This leads to a burgeoning negative balance of trade. The foreign exchange reserves held by the State Bank of Pakistan, which had peaked at $20 billion in August 2021, were at $14.96 billion on March 18, 2022. Although this amount is above $7.2 billion reported in 2018-19, when the economy was facing a balance of payments crisis, the management of foreign exchange reserves continues to be ever so important. During the previous crisis, the government adopted policies to inhibit demand in order to reduce imports. However, with prices of global commodities likely to fluctuate due to political uncertainties and domestic politics adding to the uncertainties, it is increasingly important to focus on enhancing the capabilities and productivity of exporters rather than curtailing imports through measures that reduce demand and dampen economic growth. Exports of goods increased by 26% year-on-year in the first eight months of FY22, while imports of goods increased by 55%. With exports surpassing $20 billion in the first eight months, they are likely to be approximately $30 billion at the end of current fiscal year. More importantly, exports of services, at $4 billion, have increased by 18.8% year-on-year in the first seven months of FY22. This is crucial given that exports of services have hovered around $5.5 billion for the past few fiscal years and have remained stagnant in terms of growth rate. It is important to emphasise that the growth is driven by the telecommunication, computer and information technology services sector, which not only comprises high-skilled workers but also freelancers and young entrepreneurs. On the other hand, rising imports of essential goods such as oil and related commodities are driven by their prices, with the dollar value of imports rising more than 100% year-on-year for petroleum products and LNG in the current fiscal year. Imports of transportation group have also shown similar growth levels, with CKD/ SKD units contributing the most to the import growth in value terms. Furthermore, various types of machinery and equipment have also recorded significant growth rates. In essence, imports of nonessential goods are unlikely to be a major factor in the growth of imports, which is primarily being driven by rising prices of essential commodities and increasing demand for intermediate and capital goods used to produce domestic goods as well as export products. The government must ensure improvement in productivity that leads to a more efficient mix of output rather than focus on curtailing imports as a stopgap temporary measure. Major export markets Exports from Pakistan are primarily destined to the United States and the European Union. According to statistics extracted from the International Trade Centre’s Trademap.org, exports to the US were at $4.1 billion in 2020, the second highest since 2006, when they were reported at $4.3 billion. Exports to the 27 EU countries were reported to be $6.2 billion and exports to the UK stood at $1.7 billion. More than 50% of exports from Pakistan are destined to the US, EU and UK. Exports to the EU increased from $3.3 billion in 2009, which is approximately 90% growth in 11 years. Pakistan exported $5.7 billion worth of articles of clothing in 2020, with more than $5 billion worth of goods destined to the US, EU-27 and the UK. Considering exports of the textile industry, $9.6 billion, out of $13.1 billion, worth of goods were exported to the aforementioned destinations. Although China and Bangladesh rank amongst the top 10 export destinations for textile products from Pakistan, they import mainly either cotton yarn or woven fabrics, unlike the advanced countries that import finished consumer goods. In essence, Pakistan is highly reliant on western markets for its exports of value-added consumer goods. Even exports of intermediate goods and raw material are likely to be driven by the presence of value chains that involve buyers in the developed world. The recent conflict between Russia and Ukraine is likely to have consequences for global trade, particularly as the two countries are large suppliers of several agricultural and mineral products. Russia is the third largest exporter of mineral fuels and cereals in the world and the largest exporter of fertilisers. Ukraine is the second largest exporter of cereals and the third largest exporter of animal and vegetable fats and oils. Unctad recently published “The Impact on Trade and Development of the War in Ukraine”, highlighting the rising prices of agricultural commodities and freight costs due to the conflict. Freight costs are expected to increase by 5-8%, with developing countries likely to bear the brunt of the increase. Agriculture, commodity and grains spot indices have all reacted sharply to the conflict. Furthermore, approximately a quarter of Turkey’s and 22% of China’s agro-food commodities are imported from the Russian Federation and Ukraine. For Pakistan, it is 4.5%, with majority flowing in from the Russian Federation. The government must facilitate exports from Pakistan and ensure that its policies result in a sustainable export growth. This should include but not limited to negotiations over free trade agreements across different regions and geopolitical blocs, more efficient trade missions in important markets abroad promoting Pakistani goods and services and encouraging domestic firms to participate in global value chains. A viable trade strategy is in the national interest. The Writer is the Assistant Professor Of Eco
Source: Tribune
The recent visit to Cambodia by Japanese Prime Minister Fumio Kishida has strengthened bilateral relations. Terming it ‘significant’, chairman of Phnom Penh-based think tank Asian Vision Institute (AVI) Sok Siphana said the visit was meaningful in the context of Cambodia hosting the chairmanship of the Association of Southeast Asian Nations (ASEAN). Both sides released a joint statement ensuring the full implementation of the Regional Comprehensive Economic Partnership (RCEP) free trade agreement (FTA). Siphana said Cambodia can further boost its trade prospects with Japan through an FTA. The country currently has FTAs with China and South Korea, according to a Cambodian media outlet. Siphana said a few years ago, it was Japan that helped build the bridge over the Mekong that enabled Cambodia to be part of the regional supply chain. According to the joint statement, both countries will actively explore new opportunities for the sustainable growth of the Kingdom, such as infrastructure construction. An FTA with Japan would boost Cambodia’s exports to that country, especially in agriculture, and will also attract foreign direct investment, AVI president Chheang Vannarith said.
Source: Fibre2Fashion
Says first Dominican Republic envoy to Bangladesh Bangladesh should abandon the mentality of having a duty-free regime, cheap loans or foreign aid and focus instead on making products competitive by improving management efficiency, logistics and business environment as the country approaches graduation from the grouping of the least-developed countries (LDCs) in 2026. That was the key suggestion from David Puig, ambassador of the Dominican Republic, in Dhaka. "As an LDC, you rely on quota, cheap loan and aid. Now, you need to change that mentality and become competitive," he said in an interview with The Daily Star in Dhaka on March 23. On the same day, he presented credentials to President Md Abdul Hamid to become the first envoy from the country to Bangladesh since the two nations established diplomatic relations in 2012. "As Bangladesh is growing, it seeks to boost the relations," said Puig, who is based in Delhi as he is the ambassador of the Dominican Republic to India. He is also the ambassador of the country to Bangladesh and other South Asian countries. Over the past 25 years, the Dominican Republic, now a developing country, has experienced robust economic growth. In 2008, the Dominican Republic became an upper-middle-income country from a lowermiddle-income one as per the criteria of the World Bank. The Caribbean island is now aspiring to become a developed nation by 2030. Bangladesh achieved the lower-middle-income status in 2015 and has targeted to become a higher-middle-income country in 2031 and a developed one in 2041. "My first suggestion for you is: do not wait. Plan it now. It is not only for the LDC graduation but also for the latter stages," Puig said. The Dominican Republic has signed free trade agreements with the US and Europe, established free trade zones to attract foreign investors and provided incentives. It went for manufacturing high-end products such as electronic devices and medical devices and became the third-largest manufacturer for medical devices in Latin America. The country has upgraded its traditional tourism sector and become a major tourist destination, drawing more than six million tourists a year before the coronavirus pandemic hit the hospitality industry and five million last year. "Improving the business environment and making it enabling for investors is crucial," said Puig, who joined the Dominican Foreign Service in 2004. He says Bangladesh has expertise in the textile industry and as the major destinations are the US and Europe, textile companies can also invest in the Dominican Republic and take advantage of the free trade zones and FTAs with the American and European markets. "We also have skilled workers." "You will be close to the main consumer market. So, we see synergies. We are already seeing many companies coming to our country. Two Sri Lankan garment companies have already invested." The envoy applauds Bangladesh's competitive advantage, quality products and affordable price of pharmaceuticals, saying there are huge potentials for the country to export medicines to the Dominican Republic. The Dominican Republic exports mainly scrap metal, leather machinery and tobacco to Bangladesh. Bilateral trade stood at $20 million in 2021, with Bangladesh exporting products worth $17 million, mostly pharmaceuticals and textile, according to the diplomat. "The trade between the two countries can be increased to a large extent." During his week-long stay in Dhaka, he met with the officials of the Bangladesh Bank, commerce and foreign ministries, leaders of business chambers, including the Bangladesh Garment Manufacturers and Exporters Association, and cultural personalities. "We need to understand the tax regime for import and exchange our mutual prospects of relations," Puig said. Bangladesh and the Dominican Republic also collaborate at the United Nations in the areas of peace and climate change. "We are an island country and Bangladesh is a low-lying country. We need to cooperate and coordinate in order to push for more climate assistance. We have been victims of climate change, so the responsibility lies more on the developed countries." He says arts and culture are at the heart of Bengali people. "You have some amazing artists who are already representing Bangladesh abroad. We would like to learn and then connect our artists to your ones. That's how we can learn and grow."
Source: Vanguard
Nigeria’s all commodity terms of trade (ToT) fell by 0.25 per cent in the fourth quarter of last year (Q4’21) as commodity exports declined by 0.33 per cent during the period. The ToT for October, November and December, 2021 stood at 102.34 per cent, 102.51 per cent and 102.09 per cent respectively. The National Bureau of Statistics (NBS) disclosed this in its Commodity Price Indices and ToT for Q4’21 released yesterday. Though this represents a significant improvement over the massive decline recorded in the preceding quarter, it is the fourth consecutive quarterly decline in Nigeria’s commodity ToT. In Q1’21 commodity ToT declined by 0.51 percent and by 0.35 percent in Q2’21 and down by 2.85 per cent in Q3’21 (highest decline of the year). An increase in the terms of trade between two periods (or when TOT is greater than 100%) means that the value of exports is increasing relative to the value of imports, and the country can afford more imports for the same value of exports. For example, an increase in the price of oil between two periods (with oil production remaining the same) is likely to increase or improve the terms of trade for Nigeria and vice versa. The NBS report stated: “The All commodity group export index averagely decreased by - 0.33 per cent between October and December, 2021. This is due to decreases in the prices of Products of the chemical and allied industries (-0.51), mineral products (-0.34), and animal and vegetable fats and oils and other cleavage (-0.26). “Conversely, between October and November 2021, the All commodity export index increased marginally by 0.03.This was driven by decreases in prices of live animals; animal products (-0.48), and animal and vegetable fats and oils and other cleavage (-0.27) and was positively affected by products of the chemical and allied industries (+0.17), vegetable products (+0.04).” On imports, it stated: “The All commodity group import index increased by 0.47 per cent between October and December, 2021. “This was driven mainly by an increase in the prices of products of textiles and textile articles (+0.62), boilers, machinery and appliances; parts thereof, (+0.61), and wood and articles of wood, wood charcoal and articles (+0.59).”
Source: Vanguard
The United Nations Conference on Trade and Development (UNCTAD) recently downgraded its global economic growth projection for 2022 to 2.6 per cent from 3.6 per cent due to the Ukraine war and changes in macroeconomic policies by countries. While Russia will witness a deep recession this year, significant slowdowns in growth are expected in parts of Western Europe and Central, South and South-East Asia, it said. In an update to its Trade and Development report published on March 24, UNCTAD said the ongoing war in Ukraine is likely to reinforce the monetary tightening trend in advanced countries following similar moves that began in late 2021 in several developing countries due to inflationary pressures, with expenditure cuts also anticipated in upcoming budgets. UNCTAD is worried that a combination of weakening global demand, insufficient policy coordination at the international level and elevated debt levels from the pandemic, will generate financial shockwaves that can push some developing countries into a downward spiral of insolvency, recession and arrested development, the UN body said in a release. “Many developing countries have struggled to gain economic traction coming out of the COVID-19 recession and are now facing strong headwinds from the war. Whether this leads to unrest or not, a profound social anxiety is already spreading,” UNCTAD secretary general Rebeca Grynspan said. Even without lasting financial market disruptions, developing economies will face severe constraints on growth. During the pandemic, their public and private debt stocks have increased. And issues that receded from view during the pandemic, including high corporate leverage and rising household debt in middle-income developing countries, will resurface as policy tightens. The war has put further upward pressure on international prices of energy and primary commodities, stretching household budgets and adding to production costs, while disruptions to trade and the effects of sanctions are likely to have a chilling effect on long-term investment, said UNCTAD. Coming just as pandemic-induced disruptions seemed to subside, the geopolitical crisis has dealt a blow to confidence domestically. “The added pressure of price increases is intensifying calls for a policy response in advanced economies, including on the fiscal front, threatening a sharper than expected slowdown in growth,” the UNCTAD report said. Soaring food and fuel prices will have an immediate effect on the most vulnerable in developing countries, resulting in hunger and hardship for households who spend the highest share of their income on food. But the loss of purchasing power and real spending will ultimately be felt by everyone. “The danger for many of the developing countries that are heavily reliant on food and fuel imports is more profound as higher prices threaten livelihoods, discourage investment and raise the specter of widening trade deficits,” the report added. UNCTAD has recommended greater, more concessional and less conditional, multilateral financial support for developing countries; immediate debt relief for Ukraine along with renewed discussions on a multilateral mechanism that promotes the fair and orderly restructuring of developing country sovereign debt during periods of severe financial stress; more use of special drawing rights to supplement official reserves and to provide liquidity on a timely basis to avoid severe deflationary adjustments. It has also recommended more effective and less ad hoc swap arrangements between central banks to support developing country currencies and address financial crises, and sector-specific policies including price controls and subsidies, to tackle the supply-side and mark-up pressures on inflation.
Source: Fibre2Fashion
