Trade and Technology Council is being set up to provide political-level oversight into the India-EU relationship India and the European Union (EU) on Monday agreed to establish a Trade and Technology Council, a strategic mechanism to address the challenges of ensuring trusted technology and security in the wake of rapid geopolitical changes — a move that is expected to deepen their strategic relationship. The decision to set up such a council will be the first for India with any of its partners and second for the EU, following the first one with the US. “Both sides agreed that rapid changes in the geopolitical environment highlight the need for joint in-depth strategic engagement. The Trade and Technology Council will provide the political steer and the necessary structure to operationalise political decisions, coordinate technical work, and report to the political level to ensure implementation and follow-up in areas that are important for the sustainable progress of European and Indian economies,” said a joint statement. The announcement comes in the backdrop of European Commission President Ursula von der Leyen’s two-day visit to the national Capital starting April 24. This was her visit to India in her current role. The agreement on the launch of the council was reached at a meeting between Prime Minister Narendra Modi and the president of the European Commission on Monday morning. “Strengthening the EU-India partnership is a key priority for this decade. We will step up cooperation in trade, technology, and security. This is why I’m pleased that (Narendra) Modi and I will establish an EU-India Trade and Technology Council,” she tweeted. Both leaders also reviewed the progress of the trade talks, with India and the EU having restarted negotiations to strike a comprehensive free trade deal and an investment agreement. The next round of trade talks between India and the EU are expected to take place in June, after the World Trade Organization’s 12th ministerial meeting. Earlier this month, a team of officials, led by Commerce Secretary B V R Subrahmanyam, was in Brussels to hammer out a framework for a trade agreement. This was followed by EU parliamentarians’ visit to India to further the talks. “The EU and India are bound by decades of close partnership and are determined to increase joint efforts to tackle current challenges and address geopolitical circumstances,” added the joint statement. The meeting also took place amid ongoing conflict in Eastern Europe, with the Western nations trying to pressure India into condemning Russia for invading Ukraine. So far, India’s stance on the conflict has been neutral. Separately, speaking at the inaugural session of the multilateral flagship conference on geopolitics and geoeconomics — Raisina Dialogue — von der Leyen said that the outcome of Russia’s war on Ukraine will not only determine Europe’s future, but also affect the Indo-Pacific region and the rest of the world. Russia’s aggression towards Ukraine is also seen as a direct threat to Europe’s security. “Countries battered by two years of the Covid-19 pandemic must now deal with rising prices for grain energy and fertiliser as a direct result of (Vladimir) Putin’s war of choice. The outcome of the war will not only determine the future of Europe, but also deeply affect the Indo-Pacific region and the rest of the world. We want a positive vision for a peaceful and prosperous Indo-Pacific region. The region is home to half of the world’s population and 60 per cent of global GDP,” she said.
Strengthening ties
• Trade and Technology Council is being set up to provide political-level oversight into the India-EU relationship
• Will ensure coordination in different areas of cooperation between India, EU
• The second such body the EU will set up, following the first one with the US
Source: Business Standard
The EU also wants substantial tariff reduction in wines, imports of which are taxed at 150%. Here, if the recent deal with Australia is any indication, New Delhi may be amenable to soften its stance by allowing imports of wine, beyond a threshold, at concessional duties if it gets credible counter offers in areas of its interest. India and the EU will return to the negotiating table to start serious talks for a free trade agreement (FTA) in June after a gap of nine years. However, despite firm commitments by both the sides, the talks are going to be a “long-drawn process”, sources told FE, thanks to sticky market access issues, on top of the complexity of negotiating with bloc whose 27 members may not necessarily have common ambitions in several aspects of trade. After 16 rounds of talks between 2007 and 2013, formal negotiations for the FTA were stuck over stark differences, as the EU insisted that India scrap or slash hefty import duties on sensitive products such as automobiles, alcoholic beverages and dairy products. India’s demand included greater access to the EU market for its skilled professionals. Both the parties were reluctant to accede to what the other wanted. The EU wants India to open up its legal and accountancy services. However, both the Bar Council of India and the Institute of Chartered Accountants of India have strongly opposed the move, as they fear “unfair foreign competition”. The domestic firms should first be allowed to fully proposer and realise their potential growth, they argue. New Delhi also has reservations over the EU’s demand to cut the basic customs duty on automobiles, which are usually taxed at 60-75%. Some auto sector experts argue that it was the high import duty that forced major foreign car makers, from Hyundai to Honda, to set up units here. If the regime were to be reversed now, there wouldn’t be much incentives for them to do substantial value addition here, they argue. The EU also wants substantial tariff reduction in wines, imports of which are taxed at 150%. Here, if the recent deal with Australia is any indication, New Delhi may be amenable to soften its stance by allowing imports of wine, beyond a threshold, at concessional duties if it gets credible counter offers in areas of its interest. Brussels also wants India to bolster its intellectual property rights regime. A point of friction has been that extant Indian laws do not allow evergreening of patents, especially in products that have witnessed only minimal alteration. New Delhi feels if it accepts the EU’s demand, local drug prices could shoot up, as the domestic pharmaceutical industry would not be able to sell generic drugs at cheap rates. On top of this, the government has imposed price caps on several drugs and medical equipment, something the EU may frown upon. The EU, including the UK, was India’s largest destination (as a bloc) in FY20, with a 17% share in the country’s overall exports. Without the UK, the EU accounted for about 15% (or $57 billion) of India’s exports until February last fiscal. Experts, too, suggest that both the sides need to work on less controversial issues first; the more difficult ones can be taken up later, as any deal there will take time to materialise. Arpita Mukherjee, professor at ICRIER, believes any deadlock can be addressed through creative solutions. Dairy, however, is a complex issue since both the EU and India are already large producers, she said. Automobiles present an altogether different challenge, as India’s existing FTA partners, such as Japan and South Korea, are already large producers, and they may seek a level-playing field if New Delhi extends greater market access to the EU. According to Pralok Gupta, associate professor (services and investment) at the Centre for WTO Studies, said India’s demand for freer movement of skilled professionals (under Mode 4 of services) may face stiff resistance during negotiations; instead, Mode 3 is easier to access. According to the WTO, Mode 3 occurs when a service provider of one of its members offers a service through some form of commercial presence in the territory of another member. Gupta said getting physical presence (under Mode 3) can ultimately simplify India’s goal of getting access to other modes of services.
Source: Financial Express
Union minister Nitin Gadkari has said that it is important to reduce production cost as well as maintaining quality in textiles industry. He was interacting with textile industrialists at Solapur last night. The minister is on a visit to Solapur for the dedication and ground-breaking ceremonies of highways worth Rs. 8 thousand 181 Crores rupees today. Gadkari said that Solapur was an important centre of textiles some years ago. He said efforts are also needed now to reduce production cost and maintain quality. The minister suggested that the textiles projects should be run on solar energy. Gadkari further said that instead of importing inputs like yarn, industrialists should try to produce it through various experiments in the district itself. Solapur Garment Manufacturers Association has organized an exhibition in Hyderabad. Its teaser was launched by Gadkari today.
Source: Newson Air
The Vice President, Shri M Venkaiah Naidu today called upon exporters to explore newer markets to give a fillip to exports and maintain the economic momentum. Presenting Export Excellence Awards for the Special Economic Zone (SEZ) units & Export Oriented Units in Chennai today, the Vice President congratulated all the award winners for their contribution in promoting exports and providing employment. He said the SEZs along with Export Oriented Units (EOUs) contribute about one-thirds of the country’s exports. Terming SEZs as an ideal platform for promoting ‘Make in India’, ‘Local goes Global’ and ‘Ease of Doing Business’, he said the country’s exports have grown manifold in recent years due to the hard work of the exporters. Shri Naidu noted that there was a record achievement of 418 billion US dollars of merchandise exports in the just-concluded 2021-22 financial year. Besides, the services exports were about 250 billion US dollars. He said it was a remarkable achievement in spite of the pandemic. Calling for continuing the same trend, the Vice President said the ambitious project of ‘District Export Hub’ announced by the Government of India in 2019 is expected to boost exports. Most of the 775 districts across the country are having the potential of becoming export hubs, he added. Stating that the government was taking all steps to further increase exports through business and industry-friendly policies, ease of doing business and focusing on ‘local for global’, Shri Naidu noted that GI (Geographical Indication) products were being given a fillip in this endeavour. Pointing out that India is a young nation, he stressed the need to fully realize the potential of the demographic dividend. Calling for a special drive to provide employment to youth and equip them with necessary skills, he said “unless this is done, our demographic advantage might turn into a major disadvantage”. Praising Tamil Nadu’s highly developed industrial manufacturing ecosystem, Shri Naidu said the state has evolved into the largest hub for the production of automobiles and autocomponents, textiles, leather products, light and heavy engineering, pumps and motors, electronic software, and hardware. The State continues to be a national leader in exports, he added. Smt. Anupriya Singh Patel, Hon’ble Minister of State for Commerce & Industry, Govt. of India, Shri K. K. S. S. R. Ramachandran, Minister for Revenue and Disaster Management, Government of Tamil Nadu, Dr. M. K. Shanmuga Sundaram, Development Commissioner, Madras Export Processing Zone SEZ, Shri Alex Paul Menon, Joint Development Commissioner, MEPZ SEZ and others were present on the occasion. Following is the full text of the speech: “It is my immense pleasure to participate in this function and present Export Excellence Awards to the Exporting Units operating under EOU and SEZ schemes. As you all are aware, a very famous ancient Tamil poetess by the name Avvayaar lived in the 10th Century. She wrote a book titled ‘Konrai Vendhan’. In her book, she says: “Thirai kadal odiyum thiraviyam thedu” meaning “Earn wealth even by crossing the Seas”. Undoubtedly, the message contained in that book is relevant for all times. Today, we have business dealings with many countries and exports play a huge role in earning crucial foreign exchange and strengthening our economy. Therefore, you exporters are playing a critical role in nation-building. Let me first congratulate all the award winners for their contribution in promoting exports and providing employment. Thanks to the endeavours and hard work of the exporters, the country’s exports have grown manifold in recent years. There was a record achievement of 418 billion US dollars of merchandise exports in the just-concluded 2021-22 financial year. Services exports were about 250 billion US dollars. Together, they make up to 670 billion US dollars, a remarkable achievement in spite of the pandemic. This trend should continue and I am sure that exports will increase in the coming months, bringing more precious foreign exchange to the country. As you all are aware, foreign exchange inflow is very essential for any country to have a strong economy. This foreign exchange inflow is mostly achieved by exports. If exports get reduced, the foreign exchange reserves will shrink and might eventually affect the country’s economy. Hence, we need to explore newer markets to increase our exports and keep our economy flying high. Ministry of Commerce and Industry is taking all steps to further increase exports through business and industry-friendly policies , ease of doing business and focusing on ‘local for global’. The ambitious project of ‘District Export Hub’ announced by the Government of India in 2019 is expected to boost exports. Most of the 775 districts across the country are having the potential of becoming export hubs. I am told that GI (Geographical Indication) products are being given a fillip in this endeavour. Similarly, ‘One District One Product’ (ODOP), another initiative of the Govt. of India is seen a transformational step to realize the true potential of every district, accelerate economic growth, generate employment with rural entrepreneurship and take us to the goal of Atma Nirbhar Bharat. Dear sisters and brothers, The Special Economic Zones contribute about 28% of India’s export basket. SEZs along with Export Oriented Units (EOUs) contribute about one-third of the country’s exports. I am told that 268 SEZs are functional across the country with 5604 Units operating in different sectors. Indeed, they form an ideal platform for promoting ‘Make in India’, ‘Local goes Global’ and ‘Ease of Doing Business’. I am happy to note that SEZs have been in the forefront in achieving the export target of $ 400 billion for the last financial year 2021-22. We all know that Tamil Nadu has a highly developed industrial manufacturing ecosystem. It has evolved into the largest hub for the production of automobiles and autocomponents, textiles, leather products, light and heavy engineering, pumps and motors, electronic software, and hardware. The State continues to be a national leader in exports of automobiles and automotive components, leather products, software, and ready-made garments. With strong infrastructure and good connectivity comprising four international airports, three large seaports and several minor seaports, Tamil Nadu has become the third largest exporting state of the country. I am sure that the Chennai-Bangalore Industrial Corridor Project and the ChennaiKanyakumari Industrial Corridor Project when completed will further transform the economic landscape of the state and give a huge thrust to exports. Dear sisters and brothers, I am also pleased to note that MEPZ Special Economic Zone has been pioneering industrial growth, promoting exports, investments and employment generation in Tamil Nadu. I am happy to know that MEPZ SEZ has recorded an export growth of 14% in the year 2021-22, with an Export of ₹ 1,32,803 Crore despite the problems caused by the pandemic. As you all are aware, India is a young nation and we need to fully realize the potential of our demographic dividend. There has to be a special drive to provide employment to our youth and equip them with necessary skills. Unless this is done, our demographic advantage might turn into a major disadvantage. In this context, it is heartening to know that about 5 lakh people have been employed directly by the SEZs and EOUs in Tamil Nadu and Puducherry so far in addition to the lakhs of indirect employment generated by them. I am sure, the Union Government and the Tamil Nadu Government will address various challenges being faced by the exporters such as the shortage of containers at Ports, congestion in accessing Ports and low availability of Warehousing and Cold Storage facilities. On their part, the traders must get well acquainted with issues relating to Trademarks, Patents, Certification, Quality compliances and Phyto sanitary restrictions of export markets. I am confident that we will tide over the challenges and increase our exports to foreign shores. I once again congratulate all the award winners for their sustained efforts in giving a fillip to the economy of the country. I extend my warm greetings to all of you for this financial year. Hope it will bring greater peace, prosperity and progress for the country as a whole. Thank you all. Vanakkam. Jai Hind.”
Source: PIB
In 2022, India has renewed its interest in free trade agreements (FTAs) with several economies, including the United Kingdom and Australia. India and Australia had already signed an interim FTA last week and expected to enter into a full FTA by end of this year. India’s approach to resuming negotiations has a sense of urgency and a few rounds of discussion have already taken place. The United Kingdom has traditionally been a large trading partner for India while Australia is emerging as a promising destination. This is a dramatic shift from India’s earlier approach to FTAs. After assuming power in 2014, the Modi government started reviewing India’s existing trade pacts. There was a widespread belief in the government that FTAs created significant economic losses by allowing subsidised foreign products and other unfair production advantages for foreign firms. Australian trade matters to India because of its growing energy demands. India aspires to become a leader in energy-consuming industries such as information technology and electric vehicles. An FTA with Australia would allow India to meet its energy needs and export skilled professionals in IT, engineering and other services. Australia also holds a crucial strategic position for India. An Australian FTA would offer the largest market to Indian businesses in the Pacific region. Initiatives such as the Quadrilateral Security Dialogue (Quad) and the Supply Chain Resilience Initiative have brought the two countries closer than before. An FTA is an opportunity to further strengthen bilateral relations. In the UK–India FTA, India wants to secure larger market access for its agricultural produce and increase exports in services such as IT, nursing, education and health care. India seeks reduced tariffs in labour-intensive sectors such as textiles, leather and jewellery, which have always found a large market in the United Kingdom. India also wants to secure a larger number of employment visas for its professionals in the United Kingdom. The difference between the Regional Comprehensive Economic Partnership (RCEP) and the current negotiations lies in their foundations. Since RCEP is a plurilateral agreement, India had to negotiate with many diverse countries and held much less negotiating power compared to bilateral pacts. India already has a trade arrangement with ASEAN, which makes up most of RCEP’s participants, but its experience has not been very encouraging. China’s membership in RCEP was another concern since India fears Chinese businesses will destroy its domestic industry. What prompted India’s appetite for new trade agreements? India’s trade deficit reveals a widening gap between export and import figures as it grew from US$118.37 billion in 2014–15 to US$161.34 billion in 2019–20. India aims to become a US$5 trillion economy by 2025 and it cannot achieve this without strong support from the external sector. India aims to boost exports through FTAs to large markets that are performing below their potential, such as Australia. The outbreak of the COVID-19 pandemic shook the global economy as lockdowns shattered manufacturing plants and global supply chains. Companies started to weigh options to relocate their manufacturing facilities and economies realised the importance of integration. India was no exception. India’s FTA negotiations are also encouraged by the aim to reduce economic dependence on China. Australia is currently experiencing a trade dispute with China, which has restricted a number of Australian imports and threatened to expand the list. Similarly, the United Kingdom has felt the pinch of Brexit and also needs to diversify its export destinations. India’s renewed interest in FTAs should also be seen from a strategic perspective. India resumed negotiations with economies with which it has robust trade relations or a trade surplus. India’s strategic and diplomatic relations with these nations have significantly deepened during the last few years, especially as they all perceive China as a threat to global trade and domestic industry. Geopolitics as well as economics will play a vital role in defining India’s future trade partnerships. India and Australia are both part of the QUAD and conduct joint naval exercises in the Indian Ocean region. Australia is among select countries with which India has a 2+2 dialogue. Similarly, India is a key partner of the UK in defence and security and undertakes joint operation in many regions. Learning from past FTA experiences, India wants a much more comprehensive agreement with carefully negotiated terms that secure maximum benefits. The Bharatiya Kisan Union, the largest association of Indian farmers, has already threatened to launch a protest against the proposed FTA with Australia. Such protests were one of the major domestic obstacles that prevented India from entering RCEP. Indian automobile manufacturers and wine sellers also plan to vehemently oppose the FTAs with Australia and the United Kingdom. Swadeshi Jagran Manch, the economic wing of the Hindu nationalist organisation Rashtriya Swayamsevak Sangh (RSS), has similar intentions. The RSS previously cautioned the government against the negative impact of FTAs and urged it to refrain from any trade deal. An FTA with Australia will face protests from the agricultural sector while the manufacturing sector will lead protests against the UK–India FTA. The current domestic and global economic situation puts India in a favourable position to sign FTAs. Given that India’s appetite for trade liberalisation is supported by domestic industries and a strong government in power, policymakers are in a hurry to close the deal. Rahul Nath Choudhury is a Research Fellow at the Indian Council of World Affairs (ICWA), New Delhi. The views expressed in this paper are those of the author.
Source: East Asia Forum
The state’s textile industry may soon get a boost with a mega integrated textile park coming up in South Gujarat. Union minister of state for textiles Darshana Jardosh on Saturday said that 13 states including Gujarat have sent their applications for mega textile parks and the central government will take a decision on the allotment soon. Gujarat is believed to be a frontrunner to get one of the seven proposed mega textile parks across the country. The central cabinet has recently approved the proposal for seven mega textile parks. Gujarat has applied for one mega textile park near Navsari,” Jardosh said. “Some states have sought two parks.” She added: “All applications will be scrutinized for parameters such as land, availability of water and electricity, labour housing, and the overall infrastructure.” She went on to say: “The parks will be spread across 1,000 acres and will operate on the plug-and-play model. We hope to finalize the parks in the next couple of months.” Jardosh was talking to mediapersons on the sidelines of the GCCI (Gujarat Chamber of Commerce and Industry) textile conclave. She said that the central government will have a majority stake in the proposed parks and it will provide financial assistance of Rs 350 crore for each park. According to sources, the land identified near Navsari is owned by the Gujarat government. She said that the central government will have a majority stake in the proposed parks and it will provide financial assistance of Rs 350 crore for each park. According to sources, the land identified near Navsari is owned by the Gujarat government. the benefit of the scheme without installing machinery,” she said. “We now verify all the documents and on Saturday, we cleared about 90 of 133 cases in Ahmedabad.” GCCI organized a national-level textile conclave for the first time in which 12 national and 13 state associations raised various issues with Jardosh and state industry minister Jagdish Panchal.
Source: Times of India
The Madhya Pradesh government has approved setting up of two textile clusters in Burhanpur, said Archana Chitnis, BJP state spokesperson and former cabinet minister. Talking about the state government’s vision to support “Atmanirbhar Bharat” mission Chitnis said, “We are constantly trying for the overall development of Burhanpur and thus two new textile clusters have been approved by the government for Burhanpur.“ A potential investment of Rs 220 crore boasting employment opportunities for around 4,000 people is proposed, she added. With the aim to transform Burhanpur into a textile hub establishment of 105 units is proposed for this cluster. The Department of Micro, Small and Medium Enterprises (MSME) in Bhopal had recently conducted the presentation of the Fairdeal Burhanpur Cluster Sukhpuri Burhanpur Textile Cluster.
Source: KNN India
Speaking at a round table hosted by the Confederation of Indian Industry (CII) and the US Chamber of Commerce's US-India Business Council (USIBC), she said financial technology (fintech) represents a unique opportunity for sustainable and inclusive growth. Finance Minister Nirmala Sitharaman at the Silicon Valley invited investors to be part of the country's growth story while pitching for collaboration with the US in financial services and emerging technologies. Speaking at a round table hosted by the Confederation of Indian Industry (CII) and the US Chamber of Commerce's US-India Business Council (USIBC), she said financial technology (fintech) represents a unique opportunity for sustainable and inclusive growth. "With a growth forecast of almost 8 per cent in FY 2023, India is likely to remain the world's fastest growing major economy over the next few years, driven by the continued expansion of its technology and start-up ecosystems," Sitharaman told a group of eminent corporate executives in the Silicon Valley. The US-India collaboration in financial services and emerging technologies will support increased investment and innovation, and fintech represents a unique opportunity for sustainable and inclusive growth," said the finance minister as she invited leading investors to become part of the India growth story. Moderated by Atul Keshap, president, USIBC, the executive gathering was also joined by Dr V Ananth Nageswaran, Chief Economic Adviser, Government of India; Taranjit Singh Sandhu, Indian Ambassador to the United States; Rajat Mishra, Additional Secretary, Department of Economic Affairs, Ministry of Finance; and Nilesh Shah, chairman, CII National Committee on Financial Markets. "There is a fintech revolution happening in India. As a country that runs the largest financial inclusion programme in the world to the country that has highest fintech adoption rate globally to the highest number of real time online transactions globally, India has a lot to offer to the world," said Sandhu. The financial sector in India has recently seen PM-guided and FM-led reforms. We hope that the US venture capitalists, endowment funds and asset management companies look at India to start their new journey or scale up existing operations and partner and grow," he said. Keshap said the discussion reinforced that innovation around fintech will be a critical to reach USD500 billion in annual trade between the US and India. "Global leaders in these fields from the USIBC and the CII member companies shared an ambitious vision for how fintech can power a free and prosperous Indo-Pacific. I stand in strong support of what business leaders, VC's, and institutional investors are doing to make that vision possible," he said. "As a hotbed of innovation with a vibrant start-up ecosystem, India is full of opportunities for investors. India is home to one of the fastest growing fintech markets in the world, with transaction values estimated to grow at a CAGR of 20 per cent to reach USD138 billion by 2023," said Shah. "Under Finance Minister Sitharaman's leadership, India has continued its accelerated growth despite the external shocks of COVID-19 and global conflicts, and the round table attendees looking to invest in India's expanding fintech market hold high expectations for its continued success," he said. Among the businesses and funds that attended the event were Blackstone, Brevet Capital, Citi, Nova Credit, Western Digital, Palo Alto Networks, The Regents of the University of California, Lightspeed House Ventures, Insight Partners, Morgan Stanley, Powerhouse Ventures, Blume Ventures, Bow Capital and Nasdaq.
Source: Economic Times
It has been noted that a section of the media has reported that feedback has been sought from States regarding a suggestion for raising Good & Services Tax (GST) rates on 143 items. Some reports have even carried the number and description of items. It is clarified that no feedback from States has been sought on the GST rates for any specific items or specific proposals to restructure the rates and the reports regarding the same are purely speculative without any basis in fact. The GST Council, in its 45th Meeting had formed a Group of Ministers (GoM) to look into the rationalization of rates. The deliberations of the Group are ongoing. The views of the States were sought generally on the Terms of References (ToRs) of the GoM soon after it was set up in September, 2021. A report of the Group is yet to be submitted to the Council for consideration.
Source: PIB
• SBI is providing about $1.5 billion short-term concessional loan facility under an agreement Indian exporters are in a fix over shipments to Sri Lanka under the $1bn line of credit, with importers from the debt-ridden island nation seeking quotations in rupees, which may deprive Indian suppliers of export incentives under various government schemes. Unsure whether Sri Lankan buyers will make the payment in rupees or dollars, exporters have reached out to the government seeking clarity on whether the export benefits for non-fuel items will be available even in case the payments are made in rupee terms. Usually, export incentives such as Rebate of Duties and Taxes on Export Products (Rodtep), duty drawback, and Export Promotion Capital Goods (EPCG) are available only if payments come in freely convertible currencies, which rupee is not. “We have learnt that Sri Lankan importers are asking for quotes from Indian suppliers also in rupee. We are examining the issue," said a government official. Exporters are unable to arrive at the quotation for exports as they will need to build into the cost the unavailability of incentives, if they are not available for shipments made in rupees. The State Bank of India is providing about $1.5 billion short-term concessional loan facility under an agreement signed between the two governments last month. Registration for the import of essential goods could be done between March 21 and 28 for the calendar year 2022. Of the $1.5 billion, $500 million was exclusively for import of fuel. India’s assistance also included a $400-million Reserve Bank of India currency swap and a deferral of a $500- million loan repayment by Sri Lanka. Sri Lanka has prioritized its imports against the line of credit to include food, pharma, animal fodder, raw material for industry, cement, textiles and special fertiliser varieties. The matter was also flagged by the Federation of Indian Export Organisations in a meeting with commerce and industry minister Piyush Goyal. “While importers have been allocated the authorization for such imports in 2022, they are asking for the quote in Indian rupees and, therefore, exporters are a little confused whether such exports will be eligible for export benefits," the apex exporters’ body told the minister. “A suitable clarification may be issued so that Indian exporters may take a conscious call while finalizing such contracts," the exporters told the minister. If export benefits are not available, it will be a factor in their final costing, they pointed out. Queries mailed to the department of commerce on Monday remained unanswered at press time. The $500 million line of credit to Sri Lanka for fuel imports has been extended amid delays in working out a bailout package with the International Monetary Fund. Sri Lanka has been struggling to pay for imports after its forex reserves depleted sharply, causing a devaluation of its currency and spiralling inflation. The state-owned credit insurance provider ECGC had earlier this month put exports to crisis-hit Sri Lanka under its ‘restrictive cover’ category in view of rising risks pertaining to payment delays or defaults on shipments. The restrictive cover or RCC-1 leads to revolving limits normally valid for a year, which are approved specifically on a case-bycase basis. However, the premium rates for the shipments insured remain unchanged.
Source: Live Mint
India imported $5 billion less from China in fiscal 2020 than in financial year 2021 and further $48 million lower in FY21 However, in FY22 imports from China increased significantly by $19 billion, reflecting the pandemic induced uncertainties. But the good thing is that the share of China in total merchandise imports has moderated to 15.5 percent currently, noted SBI Research in a report. However, the compounded annual growth rate (CAGR) for India’s overall imports between FY97 and FY21 is 11.1 % while that for imports from China is 20.8%, which is almost double, making China India's third biggest importer. China's share in India's total exports has been rising since FY17 but has fallen to 5.2% in FY22. But the CAGR for Indian exports overall is 10.4% and that for exports to China is 14.8%. While India’s service exports of telecommunications, computer, and information services far outpace China, the latter is rapidly catching up and India needs to buckle up in these areas, noted the SBI report. However, India does have a comparative advantage in certain goods where China doesn’t. This includes select chemicals, minerals, stone and glass, animals and vegetables. But China has an advantage in many goods where India has advantage too such as footwear, hides and skins, metals, textiles and clothing. "India might consider restrictions on certain products in which it has a revealed comparative advantage over China. This will provide support to MSMEs," said Dr. Soumya Kanti Ghosh, Group Chief Economic Adviser at State Bank of India. Moreover, India is pushing for fresh free trade agreements and trade concessions with major economies and regional blocs in a bid to boost export-oriented domestic manufacturing as it chases an ambitious export target of $450-500 billion in FY23. The prime objective of an FTP is to facilitate trade by reducing transaction cost and time. It aims to work with state governments to implement ‘District Export Hubs’ that will work towards achieving the export goals of each state.
Source:Times of India
There are concerns the Chinese economy would lose momentum in the wake of lockdowns to fight Covid and the US economy will decelerate as interest rates rise. Apprehensions of a slowdown in the global economy, led by a deceleration in the US and China, has led to a fall in the prices of several commodities over the past week or so. There are concerns the Chinese economy would lose momentum in the wake of lockdowns to fight Covid and the US economy will decelerate as interest rates rise. Oil prices fell nearly 5% on Monday, hitting their lowest levels in a fortnight. The price of metals like palladium have tumbled in the spot market, while copper has fallen 7% in five sessions. Silver prices have come off by close to 9% over the same period; gold prices are down about 4%. Analysts said the broader commodities sell-off is a result of fears that demand will fall off as major economies slow.
Source: Financial Express
The world’s research effort into wastewater pollution caused by the textiles industry has increased threefold over the past five years, according to a new analysis released recently before the Earth Day on April 22. This rise correlates with the implementation in 2016 of the UN Sustainable Development Goals (SDGs) for 2030, particularly SD6, relating to clean water and sanitation for all. The analysis revealed that the leading nations publishing on wastewater pollution and the textiles industry include China, India, Turkey, Iran, Brazil and the United States. The majority of research occurred in the fields of engineering, environmental engineering, chemical engineering, and chemical sciences, with key areas of research focused mainly on wastewater treatment and related technologies, the dyeing process, and the chemicals involved in dyeing. The analysis, conducted by London-based technology company Digital Science’s Briony Fane and Juergen Wastl, utilised data from Dimensions, which is a master database of the world’s research and all aspects of the wider research ecosystem, spanning 126 million publications. Both the researchers discovered almost 4,500 research papers published over the past 10 years that specifically dealt with wastewater pollution and the textiles industry. The majority of those have been published since 2017, and many are specifically tied in with the UN SDGs. “Part of the idea behind our analysis was to see whether the UN’s Sustainable Development Goals have impacted on research into wastewater pollution and the textiles industry, and that appears to be supported by the data,” says Wastl, director of academic relations and consultancy, Digital Science. “Textile dyeing is the second-largest polluter of water worldwide, with the fashion industry producing 20 per cent of the world’s wastewater alone. This is because textile manufacturers use large amounts of water and the resulting wastewater produces highly polluted discharge,” Fane, a research analyst with Digital Science, said.
Source: Fibre2 Fashion
To assist Taiwan’s textile industry further its efforts on expanding their green products to the global market, with the support of the Bureau of Foreign Trade, the Taiwan Textile Federation will reveal cutting-edge green manufacturing textile technology on April 29. Over the years, Taiwan has become the top choice of many leading brands in going green. The federation will highlight the latest concepts of circular fashion developed by leading textile manufacturers and how it transforms consumer’s purchase and consumption habits. “As textile industry faces increasing global pressure to make changes, it is worth noting that Taiwan’s textile industry has strong knowledge and expertise on material innovations which designs and creates sustainable fabrics using natural and recyclable materials with eco-friendly energy. Apparel production makes up 10 per cent of the carbon emissions. At this pace, the fashion industry’s greenhouse gas emissions will surge more than 50 per cent by 2030,” Taiwan Textile Federation said in a press release. The online streaming event will be held via TTF’s Textile Export Promotion Project official Facebook and YouTube.
Source: Fibre2 Fashion
Overstock, second-grade production and damaged, unsold pieces revitalised with Recycrom. Officina39 collaborated with Adriana Galijasevic’s Cocircular Lab on the Circular Explorations capsule collection presented at the Amsterdam Denim Days Festival on April 22-23. Several donated items – overstock, second-grade production or damaged, unsold pieces – were updated by newly developed applications employing Officina39’s patented Recycrom dyestuffs made from textile waste. Brand partners involved included Camo, Lenzing and PVH Corp. In the Recycrom process, textile waste fibres are transformed into a fine powder that can be used as a pigment dye for fabrics and garments made of cotton, wool, nylon or any natural fibre and blend. Recycrom can be applied using various methods including exhaust dyeing, dipping, spray, screen printing and coating. In contrast to other dyes, Recycrom is applied as a suspension and not as part of a chemical solution and is therefore easily filtered from the water – cutting both costs and environmental impact. “Our Recycrom technology combined with Adriana’s creative approach gave us the opportunity to explore new materials and applications, reducing impact on the environment and cutting down on water consumption,” said Luca Di Guida, Officina39 R&D manager. “It was a great joy to partner up on this collaborative project using creative expression to raise the awareness of circular solutions, while emphasising the need for transparency and the evolution of infrastructure in order to propel the future of material reuse,” added Adriana Galijasevic.
Source: Innovation in Textiles
Building an engaged and connected community for the future of European smart textiles and establishing the industrial value chains that are needed. SmartX Europe, the European Smart Textiles Accelerator, has launched a new manufacturing value chain map for the rapidly growing smart textiles industry. The three-year acceleration platform for smart textile projects has been driven by a cluster of thirteen European partners from the textile and technology industries and is providing support to 25 individual projects with a total budget of €2.4 million. Its primary objective was to build an engaged and connected community for the future of European smart textiles and to shape and establish the industrial value chains that are needed. The smart textiles value chain comprises multiple actors from three distinctive industries – electronics, textiles and ICT (information and communications technology). As a result there is a need for cross-sectoral partnerships because it is challenging to bring together competencies, energies and strategies based on three very different industries, viewpoints and mindsets. The analytical map aims to provide a clear vision of the whole interactive pattern and to identify the current gaps that slow down or jeopardise the successful development of the European smart textiles industry.
Current challenges:There is no clear absence of any specific element, but rather a weakness in many of them that comes from little collaborative history between the three industries concerned, the SmartX consortiun says. Furthermore, the still insufficient development of volume markets prevents most of the large businesses that predominantly supply equipment machinery, chemical and electronics components from dedicating much effort and investment to smart textiles production. Technological breakthroughs are not what is primarily missing in order to allow the industry to shine in the global market. Ideas are there, researchers and patents as well, but the movement is led by start-ups and SMEs who have to cope with small series production and high costs. They serve a few lead customers in specific market niches, have to work with adapted equipment and very limited automation and modified chemical formulations, and need to add required new skills in the workforce.
Promising trends There are however promising technological trends, such as the current development of low power flexible and organic electronics, as well as the more automated integration of conductive elements into conventional textiles through knitting, embroidery or printing, which will help to achieve lower cost levels and more reliable quality, as well as better functional properties. To meet the existing challenges, several highly promising fields are opening up to the industry. The most important one is the development of flexible electronics, which allow for efficient connections between soft material substrates and hard metal components and the use of hybrid chip platforms – systems-on-chip with a low-power coprocessors – which translate into significantly better performances and user experience. One major drawback the industry has to face is the insufficient integration of marketing in the broad sense, by developing unique selling propositions, identifying how and why the smart textile product is better than existing solutions. These are concerns to which smart textile businesses often give too little attention too late in the product development process. Another key issue to solve as soon as possible is the lack of widespread and clear regulations and norms, be it in the design of products, services, or data management. International norms and trade rules are needed to ensure both user safety and a level playing field for industries worldwide. Any smart textile development project must actively involve all relevant stakeholders going forward, the consortium concludes. This includes designers, manufacturers, end users and experts on end-of-life treatment, as well as experts on service and application development. Building a successful community – one of the goals accomplished by the SmartX programme – has been of crucial importance to ensure all talents, capacities and knowledge work in better synergy throughout the industry.
Source: Innovation in Textiles
