|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1048.04 |
USD/Ton |
0% |
4/18/2016 |
|
VSF |
2091.44 |
USD/Ton |
-0.51% |
4/18/2016 |
|
ASF |
1944.81 |
USD/Ton |
0% |
4/18/2016 |
|
Polyester POY |
1038.00 |
USD/Ton |
-0.22% |
4/18/2016 |
|
Nylon FDY |
2346.12 |
USD/Ton |
0% |
4/18/2016 |
|
40D Spandex |
4476.15 |
USD/Ton |
0% |
4/18/2016 |
|
Nylon DTY |
5755.71 |
USD/Ton |
0% |
4/18/2016 |
|
Viscose Long Filament |
1265.67 |
USD/Ton |
0% |
4/18/2016 |
|
Polyester DTY |
2153.18 |
USD/Ton |
0% |
4/18/2016 |
|
Nylon POY |
2122.31 |
USD/Ton |
0% |
4/18/2016 |
|
Acrylic Top 3D |
1134.47 |
USD/Ton |
0% |
4/18/2016 |
|
Polyester FDY |
2546.78 |
USD/Ton |
0% |
4/18/2016 |
|
10S OE Cotton Yarn |
1759.59 |
USD/Ton |
0% |
4/18/2016 |
|
32S Cotton Carded Yarn |
2901.78 |
USD/Ton |
0% |
4/18/2016 |
|
40S Cotton Combed Yarn |
3580.92 |
USD/Ton |
0% |
4/18/2016 |
|
30S Spun Rayon Yarn |
2855.48 |
USD/Ton |
0% |
4/18/2016 |
|
32S Polyester Yarn |
1697.85 |
USD/Ton |
0% |
4/18/2016 |
|
45S T/C Yarn |
2469.60 |
USD/Ton |
0% |
4/18/2016 |
|
45S Polyester Yarn |
3009.83 |
USD/Ton |
0% |
4/18/2016 |
|
T/C Yarn 65/35 32S |
2284.38 |
USD/Ton |
0% |
4/18/2016 |
|
40S Rayon Yarn |
1836.77 |
USD/Ton |
0% |
4/18/2016 |
|
T/R Yarn 65/35 32S |
2130.03 |
USD/Ton |
0% |
4/18/2016 |
|
10S Denim Fabric |
1.36 |
USD/Meter |
2.09% |
4/18/2016 |
|
32S Twill Fabric |
0.87 |
USD/Meter |
5.44% |
4/18/2016 |
|
40S Combed Poplin |
1.21 |
USD/Meter |
0% |
4/18/2016 |
|
30S Rayon Fabric |
0.75 |
USD/Meter |
0% |
4/18/2016 |
|
45S T/C Fabric |
0.72 |
USD/Meter |
0% |
4/18/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15435 USD dtd 19/04/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Gradual fiscal recovery is likely to push the GDP growth numbers of the country to 7.7 per cent in this financial year, says a Citigroup report. RBI on April 5 cut the key interest rate by 0.25 per cent and introduced a host of measures to smoothen liquidity supply so that banks can lend to the productive sectors and indicated accommodative stance going ahead. Gradual fiscal recovery is likely to push the GDP growth numbers of the country to 7.7 per cent in this financial year, says a Citigroup report. According to the global financial services major, India’s relative macro outperformance continues in a difficult global environment and “it might be time to tune up the optimism on India again”. “Recent macro data indicate a reversal of soft third quarter of fiscal 2015-16 prints and support our view that a gradual cyclical recovery will push GDP growth to 7.7 per cent in fiscal year 2016-17,” Citigroup said in a research note. According to the report, reform hopes have revived with a more “productive” Parliament. Executive-led reform continued (in FDI, infrastructure), but the first half of the Budget session revives hopes for more legislature-driven reforms, it said. “New bankruptcy code to deal with insolvency should be passed in the second half of the session; GST hopes are alive. Upper house reshuffle should increase NDA strength in 2016 but majority remains elusive,” Citigroup said. The brokerage firm said that “well-behaved” inflation has paved way for more easing. “Our average CPI forecast of 4.9 per cent in FY17 builds in 50 bps impact from 7th Pay Commission. Another 25 bps rate cut after monsoon clarity, along with better transmission and changed liquidity stance, should lead to lower rates in fiscal year 2016-17,” Citigroup said. RBI on April 5 cut the key interest rate by 0.25 per cent and introduced a host of measures to smoothen liquidity supply so that banks can lend to the productive sectors and indicated accommodative stance going ahead.
Source: The Financial Express
India's trade deficit narrowed for the third straight month in March to $5.07 billion, as imports shrank at a faster pace than exports, data showed on Monday. For the 2015/16 fiscal year that ended in March, the trade deficit stood at 8.5 billon, compared with 7.7 billon in the previous fiscal year. India’s trade deficit narrowed for the third straight month in March to $5.07 billion, as imports shrank at a faster pace than exports, data showed on Monday. Although exports for the year ending March were the weakest since 2010/11, down 15.85 percent from a year ago, the narrowing trade gap showed that India – the world’s No.3 crude importer – has been a net beneficiary of the collapse in oil prices. For the 2015/16 fiscal year that ended in March, the trade deficit stood at $118.5 billion, compared with $137.7 billion in the previous fiscal year.
Source: The Financial Express
Given faster and more nuanced settling of commercial disputes is a pressing requirement for improving India’s showing on the ‘ease of doing business’ front—out of 189 economies in the World Bank Ease of Doing Business 2015 rankings, it ranks 178th and 136th respectively, for ‘enforcing contracts’ and ‘resolving insolvency’—it is welcome news indeed that the country will have a blueprint for commercial courts by as early as end of April. As per The Economic Times, the final shape of the dedicated dispute resolution mechanism will be decided at the three-day conference of chief justices that starts on April 22 in Delhi. The existing mechanism has proved both inadequate—of the total of 32,656 civil suits pending at the five high courts with original jurisdiction in India, 16,884 (or 51.7%) are commercial disputes—and ill-equipped, given there is a lack of specialists handling commercial disputes; this has not only impeded business in India, but also has undermined the government’s efforts to attract foreign investment. The recommendations made in the 253rd report of the Law Commission, incorporated in the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act 2015, already provide a very good framework for the actual structure of such courts. The commercial courts, held equivalent to district courts, will come up in states and Union territories where high courts don’t have ordinary original jurisdiction. While this dedicated system will bypass the existing mechanism that is clogged by pendency, the 90-day deadline for completing hearing and pronouncing judgment after the closing of arguments will ensure much faster dispute resolution, especially given any challenge to the judgment will be taken up by the associated appellate body and a final outcome delivered within six months of the filing of the appeal. The breadth the Act provides to the ambit of the commercial courts also means that there can be only very few commercial disputes that can’t be tried by these courts. The Act also mandates that all appointments to the commercial court, the commercial division and commercial appellate division of the high court consider only judges with experience in dealing with commercial disputes—this would mean there could be greater attention paid to the larger implications of a judgment for both businesses and business sentiment.
Source: The Financial Express
The trend of falling exports is in tandem with other major world economies, says Commerce Ministry. Merchandise exports shrank 15.9 per cent in 2015-16 to $261.13 billion amid weak overseas demand, a slump in commodity prices and currency volatility. Reflecting a slowdown in the domestic economy, especially in the manufacturing sector, goods imports contracted 15.3 per cent to $379.6 billion. Releasing the data on Monday, the Commerce Ministry said: “The trend of falling exports is in tandem with other major world economies.” Global trade is projected to grow 2.8 percent this year, lower than a previous forecast of 3.9 percent, the World Trade Organization said earlier this month. The WTO said risks to its latest forecasts were still mostly on the downside, including a sharper than expected slowing of China’s economy, worsening financial market volatility and exposure of countries with large foreign debts to sharp exchange rate movements. Warning of the need for the government to be alive to protectionist measures being taken by other countries, Jawaharlal Nehru University professor Biswajit Dhar said India’s exporters face difficulties in getting market access overseas. “The government needs to provide more incentives to help the sectors that have done well during the ongoing crisis period, do better,” Mr. Dhar said. Goods exports also contracted for the sixteenth straight month in March, when it fell 5.47 per cent to $22.7 billion, while imports also fell 21.5 per cent to $27.8 billion. The silver lining in the trade data was the contraction in oil imports, which shrank 40.2 per cent for the full year to $82.6 billion, while non-oil imports fell 4.1 per cent in the period to $297 billion. This helped narrow the trade deficit to a five-year-low of $118.45 billion for fiscal 2015-16. The trend of falling exports is in tandem with other major world economies.” There has also been a minor recovery on the exports front in the last four months, with the pace of contraction in goods exports slowing from April-November, when it had shrunk 18.46 per cent.
Source: The Hindu Business Line
Arun Jaitley, who is on an official visit to the US, said media reports about intolerance in India does not impact foreign investment in the country. There is “much more tolerance in India” if one goes by the content of the presidential election speeches in the US, Finance Minister Arun Jaitley has said. Asserting that there is “no intolerance on the ground” in India, he said the country has continued to attract substantial foreign investments as the fastest growing economy. “There is no intolerance on the ground. If one reads presidential election speeches in the US, there is much more tolerance in India,” he told BBC Hindi in an interview. Arun Jaitley, who is on an official visit to the US, said media reports about intolerance in India does not impact foreign investment in the country. India, he said, is the fastest growing major economy in the world and has received record foreign investment which is a reflection of effectiveness of government’s economic agenda. “Irresponsible statements by one or two persons does not vitiate the atmosphere, but becomes news for media,” the Finance Minister said, adding the sharp political reaction to those who talk about breaking the country is obvious. He further said thinking in the US about India has significantly changed and the commercial ties between the two countries have improved rapidly. Regarding the pending Goods and Service Tax (GST) legislation, Jaitley expressed hope that it would be approved by Rajya Sabha where the numbers would be soon in favour of the new indirect tax law. He also said that with better monsoon and improvement in global economic situation India’s economic growth could surpass 7.5 per cent in the current fiscal. On hike in the US visa fee, the minister said he took up the matter with American authorities. He said Indian IT professionals are doing well all over the world and there should be no discrimination against them.
Source: The Financial Express
The rupee depreciated 6 paise to 66.70 against the US currency in early trade on Monday at the Inter—bank Foreign Exchange due to increased demand for the dollar from importers. Dealers attributed the rupee’s fall to increased demand for the US currency, but a higher opening of the domestic equity market and the dollar’s weakness against some currencies overseas capped the losses. The rupee had dropped 21 paise to end at 66.64 on Wednesday on fag-end dollar demand from banks and importers despite a sharp rally in domestic equities. Forex market remained closed on Thursday and Friday for ‘Ambedkar Jayanti’ and ‘Ram Navami’, respectively. Meanwhile, the benchmark BSE Sensex rallied 193.97 points, or 0.76 per cent, to 25,820.72 in early trade.
Source: The Hindu Business Line
It is easy to conclude that the economy is set for better times when consumer price inflation is relatively benign, wholesale price inflation remains negative and summer monsoon rains are forecast to be plentiful. After all, the Consumer Price Index (CPI) grew at 4.8 per cent in March 2016 from a year ago, its slowest in six months. The Wholesale Price Index (WPI), at 0.85 per cent, continued to decline for the 17th consecutive month in March. Bountiful rains generally hold hope for a bumper agriculture output, and that will have a dampening effect on prices of food items. Good rains also mean an end to prolonged rural distress in large parts of the country. Yet, one needs to exercise caution. There are already indications of a reversal of inflation trends in the coming months. One, global crude oil prices have risen from the lows of about $30 a barrel to over $40 now, and may rise further if producers cut supplies. Two, prices of items such as sugar have been rising over the past month. Three, items such as cooking oil and potatoes are also showing signs of firming up. Prices of pulses have come off the highs of last year, but still remain elevated, partly due to a shortfall in domestic production. Four, the payout of the Seventh Pay Commission award as well as One Rank One Pension will boost consumption demand for both factory output and services, putting upward pressure on prices. Paradoxically, good agriculture output will also revive rural demand in the latter half of the calendar year. Given the risks, the Centre needs to keep a keen eye on volatility in prices of essentials. It has in the past attempted to control food inflation by cracking down on hoarders, imposing stock limits and allowing imports. However, these are short-term measures for controlling prices of items such as pulses and onions. In the long term, production needs to keep pace with increase in demand. The Government needs to recognise that as incomes increase, consumption shifts away from carbohydrates to proteins. In a country such as India, that calls for encouraging farmers to grow more pulses and lower acreage devoted to cereals. Unfortunately, that has not happened. Also, not much has been done to increase crop yields — necessary to extract more from the same area of land. The Reserve Bank of India has forecast inflation measured by CPI will remain at around 5 per cent during 2016-17, with some inter-quarter variations. In comparison, the WPI, which was the widely tracked index of inflation until two years ago, has stayed in negative territory for 17 months. That’s mostly because WPI tracks prices of commodities and inputs, including imports, which are used in manufacturing — all of which remain benign at the moment. A negative WPI reflects commodity cycles, lack of demand and under-utilisation of installed capacities of factories. For that situation to change, the economy needs not just good rains, but also focused policy intervention.
Source: The Hindu Business Line
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 40.21 per barrel (bbl) on 15.04.2016. This was lower than the price of US$ 40.66 per bbl on previous publishing day of 14.04.2016. In rupee terms, the price of Indian Basket decreased to Rs. 2671.41 per bbl on 15.04.2016 as compared to Rs 2700.85 per bbl on 14.04.2016. Rupee closed at Rs 66.43 per US$ on 15.04.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on April 15, 2016 (Previous trading day i.e. 14.04.2016) |
Pricing Fortnight for 16.04.2016 (30 Mar to 12 Apr, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
40.21 (40.66) |
36.98 |
|
(Rs/bbl |
2671.41 (2700.85) |
2455.84 |
|
|
Exchange Rate |
(Rs/$) |
66.43* |
66.41 |
* RBI reference rate for 14.04.2016 & 15.04.2016 is not available. Therefore reference rate of 13.04.2016 has been considered.
It is easy to conclude that the economy is set for better times when consumer price inflation is relatively benign, wholesale price inflation remains negative and summer monsoon rains are forecast to be plentiful. After all, the Consumer Price Index (CPI) grew at 4.8 per cent in March 2016 from a year ago, its slowest in six months. The Wholesale Price Index (WPI), at 0.85 per cent, continued to decline for the 17th consecutive month in March. Bountiful rains generally hold hope for a bumper agriculture output, and that will have a dampening effect on prices of food items. Good rains also mean an end to prolonged rural distress in large parts of the country. Yet, one needs to exercise caution. There are already indications of a reversal of inflation trends in the coming months. One, global crude oil prices have risen from the lows of about $30 a barrel to over $40 now, and may rise further if producers cut supplies. Two, prices of items such as sugar have been rising over the past month. Three, items such as cooking oil and potatoes are also showing signs of firming up. Prices of pulses have come off the highs of last year, but still remain elevated, partly due to a shortfall in domestic production. Four, the payout of the Seventh Pay Commission award as well as One Rank One Pension will boost consumption demand for both factory output and services, putting upward pressure on prices. Paradoxically, good agriculture output will also revive rural demand in the latter half of the calendar year. Given the risks, the Centre needs to keep a keen eye on volatility in prices of essentials. It has in the past attempted to control food inflation by cracking down on hoarders, imposing stock limits and allowing imports. However, these are short-term measures for controlling prices of items such as pulses and onions. In the long term, production needs to keep pace with increase in demand. The Government needs to recognise that as incomes increase, consumption shifts away from carbohydrates to proteins. In a country such as India, that calls for encouraging farmers to grow more pulses and lower acreage devoted to cereals. Unfortunately, that has not happened. Also, not much has been done to increase crop yields — necessary to extract more from the same area of land. The Reserve Bank of India has forecast inflation measured by CPI will remain at around 5 per cent during 2016-17, with some inter-quarter variations. In comparison, the WPI, which was the widely tracked index of inflation until two years ago, has stayed in negative territory for 17 months. That’s mostly because WPI tracks prices of commodities and inputs, including imports, which are used in manufacturing — all of which remain benign at the moment. A negative WPI reflects commodity cycles, lack of demand and under-utilisation of installed capacities of factories. For that situation to change, the economy needs not just good rains, but also focused policy intervention.
Source: The Hindu Business Line
Union Minister Nirmala Sitharaman was today critical of RBI Governor Raghuram Rajan's description of Indian economy. Commerce and Industry Minister Nirmala Sitharaman noted that Raghuram Rajan had said earlier India is on a cusp of revolution. (PTI) Commerce and Industry Minister Nirmala Sitharaman noted that Raghuram Rajan had said earlier India is on a cusp of revolution. Union Minister Nirmala Sitharaman was today critical of RBI Governor Raghuram Rajan’s description of Indian economy as the “one-eyed king in the land of the blind”, saying better words should have been used. “I may not be happy with his choice of words. I think whatever action is being taken by this government is showing results. FDI is improving, there are clear signs that manufacturing sector is reviving. Inflation, current account deficit is under control,” she told a press conference. Commerce and Industry Minister Nirmala Sitharaman noted that Raghuram Rajan had said earlier India is on a cusp of revolution. “If better words were used to say whatever he wanted to say, it would have gone down better,” she said. With India being often described as ‘the bright spot in the global economy’, Rajan had said in an interview that this was a case of “the one-eyed man being king in the land of the blind.
Source: The Financial Express
Association of Tirupur (DAT) to balance the impact of the steep rise in cost of dyes/chemicals over the past fortnight announced hike in dyeing charges with immediate effect. DAT president S. Nagarajan said that as there has been a 40 percent increase in the raw material costs since April 1, they are actually forced to increase the dyeing charges by 20 percent for dark colours and 15 percent for light colours Dyeing unit owners blamed the “cartels of dyes manufacturers/suppliers” for the frequent increases in raw material (ie dyes) prices. The dyeing unit owners expressed fear that unless the government comes with stern steps to control the prices of raw materials, it would have a cascading effect on the existence of dyeing units. According to industrialists in the dyeing sector, in a cluster like Tirupur, dyeing units co-exist with the apparel exporters and their business. So if the dyeing charges are hiked, the apparels made from here would become costlier. Due to which the exporters can lose a sizeable share in the price-sensitive global market. When the overall business comes down, dyeing sector too will have to struggle. So, rising the dyeing charges in tandem with the hike in the costs of dye stuffs is not a solution at all.
Source: Yarn and fibre
Swiss technology group Oerlikon has announced that it has signed an agreement to acquire the entire staple fibres technology portfolio of Trützschler Nonwovens & Man-Made Fibres GmbH which is a part of the German Truetzschler Group, a specialist in fibre preparation for the yarn spinning and nonwovens industries. The acquisition expands the Manmade Fibres Segment's technology portfolio and opens up access to new customers in the market for synthetic staple fibres, Oerlikon said in a press release. Oerlikon is strengthening its technology and market position in its core business areas by taking advantage of the ongoing consolidation in the chemical fibres market, which was triggered by the market downturn in China. With the acquisition of the former Fleissner staple fibres technology portfolio and the intellectual property (IP) of Trützschler Nonwovens & Man-Made Fibres GmbH, the Segment becomes the leading technology and equipment provider in the global staple fibres market. The acquisition expands the Manmade Fibers Segment's staple fibres technology expertise and broadens the Segment's customer base and service business in the respective areas. As staple fibres projects are increasingly tied to continuous polycondensation facilities, already now the Manmade Fibers Segment is well positioned to operate as a provider of complete solutions. Both parties have agreed not to disclose details of the transaction. Truetzschler Group is discontinuing its staple fibre business as it has decided to focus on its core business activities. Dr. Roland Fischer, CEO of the Oerlikon Group, said, “The acquisition of the staple fibres technology portfolio of Truetzschler is another important step in line with our strategy to strengthen our position outside the filament business, where we occupy a leading technology and market position. The ongoing consolidation in the chemical fibres market presents interesting opportunities and we are taking this step to ensure that the Manmade Fibers Segment will merge stronger from the current market weakness and profit from the positive long-term market perspectives.” Staple fibres technology is one of the core technologies within the manmade fibers industry. In 2015, the produced staple fibers amounted to 18.5 million tonnes, or some 33 per cent of the total synthetic fibres capacity. Synthetic staple fibres are produced by the main conversion steps: polymer production, spinning further down to baling. The liquid polymer is either produced in a polycondensation plant or polymer chips are melted in an extrusion.
Source: Fibre2fashion.
Annual clothing sales in China will exceed $300 million in 2019, up 25 per cent from 2014. In comparison, apparel sales in the US are estimated to hit $267 million in three years, meaning China will surpass the US as the world's largest apparel market by the end of the decade, according to a report by SinoInteractive, a China-based PR company. The report, which compared industry performance in the world's two largest economies, says that despite the strengthening of the Chinese yuan and rising raw material and labour costs directly impacting the Chinese clothing market, China still continues to be a global leader. Apparel made in China for US export has an applied tariff rate as high as 9.63 per cent for textiles and 16.05 per cent for clothes; free trade agreements under negotiation may see that be replaced by products made in Asia. Sino Interactive took a deep look at the apparel exporters of China. One of the rising e-commerce giants is Globalegrow, another is Sammydress.com, which aims to deliver higher quality fashion at a lower cost. In SinoInteractive's view, e-commerce giants such as Globalegrow (Sammydress.com), Alibaba and others will constitute up to 50 per cent of the global e-commerce market by 2018. Companies like Sammydress work with numerous clothing factories and suppliers based in the south of China. The company enjoys positive reviews and has an international group of personnel which is the key to satisfying clients from different regions. According to another SinoInteractive's research, there has been significant improvement even in the area of stitching which is indirectly contributing to rising share in the world's cloth Industry. Sammydress.com has started competing with local players. While Sammydress and other Chinese companies have received mixed reviews, Chinese companies have shown consistent improvement in the area of customer satisfaction. SinoInteractive's research shows that there has been great improvement in quality based on recent surveys on Chinese Made apparels. The "Chinese Made" strategy is to deliver affordable goods to people in both developed countries and underdeveloped countries, resulting in China becoming a major contributor for global growth. In 2015, there was a 23 per cent rise in Russian orders from the Chinese e-commerce industry compared to 2014. From November 11-26, 2015, there were nearly 10 million purchases made in Chinese e-commerce portals by Russians. In order to overcome the supply chain hurdles, Chinese and Russians came forward and established multinational logistics at Khabarovsk to increase the speed of the delivery packages.
Source: Fibre2fashion
China’s economy grew 6.7 percent year-on-year in the first quarter in 2016, and 6.9 percent for the whole of 2015. China’s economy expanded a seasonally-adjusted 1.1 percent in the first quarter of 2016 from the fourth quarter of last year, National Bureau of Statistics data showed, the lowest quarterly expansion on record since 2010. The slower-than-expected quarterly growth rate comes amid other signs the Chinese economy is stabilising in the first quarter, including positive surprises from trade, inflation, output and credit. Analysts had expected quarterly growth of 1.5 percent for the first quarter, but the statistics bureau did not release quarterly figures when it issued annual figures on Friday. “The 1.1 percent growth rate clearly illustrates that China’s economy still faces downward pressures,” Zhou Hao, senior economist at Commerce bank, wrote in a research note on Monday. “If we calculate the seasonally adjusted GDP growth based on the qoq numbers, we find that there is a big gap (0.4 percent point) between headline GDP growth (non-seasonally adjusted) and the seasonally adjusted GDP growth. As economists, we always prefer the seasonally adjusted numbers, which better tell the underlying growth momentum,” he added. China’s economy grew 6.7 percent year-on-year in the first quarter in 2016, and 6.9 percent for the whole of 2015. That is the slowest rate since 2009, but the pace applies to a much larger economy – around $10 trillion in 2015. Over the weekend, the statistics bureau also revised 2015 quarterly growth figures for three quarters. In the first quarter of 2015, quarterly growth was revised upwards to 1.4 percent from 1.3 percent. In the second quarter, it was revised downwards to 1.8 percent from 1.9 percent, while in the fourth quarter, quarterly growth was revised downwards to 1.5 percent from 1.6 percent. The 2015 third quarter quarterly economic growth figure remained unchanged. The statistics bureau also revised quarterly growth figures for 2014 in two quarters. For the first quarter, the quarterly figure was revised upwards to 1.7 percent from 1.6 percent, and in the third quarter, the figure was revised upwards to 1.9 percent from 1.8 percent. The 2014 quarterly economic data for the second and fourth quarters remained unchanged. Some China watchers, nevertheless, suspect that real growth levels could be much lower than what the official data suggest.
Source: The Financial Express
Many believe the China-Pakistan Economic Corridor can change Pakistan’s destiny — a rosy future that its Army and government have accused India of trying to wreck. What is the economic dream about? Prime Minister Nawaz Sharif and President Xi Jinping launch a CPEC project by video link from Islamabad on April 20, 2015. (Source: Press Information Department, Govt of Pakistan) Prime Minister Nawaz Sharif and President Xi Jinping launch a CPEC project by video link from Islamabad on April 20, 2015. Last week, Pakistan Army Chief Gen Raheel Sharif said India had “openly challenged” the China-Pakistan Economic Corridor (CPEC) project, and that R&AW was “blatantly involved in destabilising Pakistan”. A day later, Pakistan Defence Secretary Lt Gen (retd) Alam Khattak told a Senate Standing Committee that R&AW had set up a “special cell” to target the CPEC. The project, a key part of which will pass through Gilgit-Baltistan in Pakistan Occupied Kashmir, is seen by many in Pakistan to have the potential of changing the country’s destiny — bringing unprecedented growth, jobs and prosperity.
So, what exactly is the CPEC project?
It refers to a clutch of major infrastructure works currently under way in Pakistan, intended to link Kashgar in China’s Xinjiang province to Gwadar deep sea port close to Pakistan’s border with Iran. Several other road, rail and power projects are associated with the corridor, and the project seeks to expand and upgrade infrastructure across the length and breadth of Pakistan, and to widen and deepen economic ties with its “all-weather friend”, China. Chinese firms will invest just under $ 46 billion in the project over six years — including $ 33.8 bn in energy projects and $ 11.8 bn in infrastructure, Reuters reported in November 2014, quoting an agreement signed by the two countries during a visit by Pakistan Prime Minister Nawaz Sharif to China earlier that month.
How does Pakistan stand to gain?
The CPEC can theoretically be a gamechanger for Pakistan. At a time when terrorism has severely affected Pakistan’s prospects of foreign investment, the $ 46 bn promised by China is three times the total FDI it has got in the last decade. The project is estimated to directly create some 700,000 jobs up to 2030, and speed up GDP growth significantly. Investors will be backed by Beijing and Chinese banks, and Pakistan will not pick up any more debt in the process. The bulk of the investment will be in energy. $ 15.5 bn worth of coal, wind, solar and hydro energy projects will come online by 2017 and add 10,400 megawatts to the national grid, Dawn and Reuters reported, quoting officials. In all, Pakistan expects to add 16,000 MW by 2021, and reduce power shortage by 4,000-7,000 MW. The shortage of power has been a huge issue in Pakistan, including in elections, and has sparked violent protests. The CPEC deal also includes $ 5.9 bn for road projects and $ 3.7 bn for railway projects, all to be developed by 2017. A $ 44 million optical fibre cable between China and Pakistan will be built too. Pakistani newspapers have been reporting great enthusiasm for the project, including domestic investment aligned to the CPEC’s goals.
Besides the potential for growth, power and jobs, Pakistan also expects the CPEC to bind it in an even tighter embrace with close friend China, giving it greater strategic leverage with both India and the United States in the Indian Ocean region.
And what’s in it for China?
Much more than what there is for Pakistan, many feel. The CPEC is part of China’s larger regional transnational ‘One Belt One Road’ (OBOR) initiative, whose two arms are the land-based New Silk Road and the 21st century Maritime Silk Road, using which Beijing aims to create a Silk Road Economic Belt sprawled over a large patch of Asia and eastern Europe, and crisscrossed by a web of transport, energy supply and telecommunications lines. Gwadar lies close to the Strait of Hormuz, a key oil shipping lane. It could open up an energy and trade corridor from the Gulf across Pakistan to western China, that could also be used by the Chinese Navy. The CPEC will give China land access to the Indian Ocean, cutting the nearly 13,000 km sea voyage from Tianjin to the Persian Gulf through the Strait of Malacca and around India, to a mere 2,000 km road journey from Kashgar to Gwadar. The development of Kashgar as a trade terminus will reduce the isolation of the restive Xinjiang province, deepen its engagement with the rest of China, and raise its potential for tourism and investment. Central Asian republics are keen to plug their infrastructure networks to the CPEC — this will allow them access to the Indian Ocean, while contributing to the OBOR initiative. For Chinese companies, the massive scale of the CPEC provides investment opportunities for several years to come. As per the terms of the agreement, they will be able to operate the projects as profit-making entities, Reuters reported. The China Development Bank and the Industrial and Commercial Bank of China Ltd, one of China’s ‘Big Four’ state-owned commercial banks, will loan funds to the companies, who will invest in the projects as commercial ventures. Major Chinese companies investing in Pakistan’s energy sector will include China’s Three Gorges Corp., which built the world’s biggest hydro power scheme, and China Power International Development Ltd.
Are there any problems?
There is scepticism in some quarters over the extent of the real gains that would come Pakistan’s way. Voices in Balochistan — where Gwadar is — have been demanding that Chinese investors spell out exactly how they would be benefitted. Both Balochistan and Khyber Pakhtunkhwa have complained that power projects that ought to be theirs have gone to Punjab. The western arm of the CPEC, important for the development of Balochistan and KP, remains uncertain. And yet, cooperation among the provinces — traditionally not one of Pakistan’s strong points — is key to the success of the CPEC. The unpredictable security situation remains a huge concern, especially in KP and Balochistan. A major terrorist attack on a CPEC project will be a setback, and Pakistan has deployed 15,000 special security forces for Chinese nationals and companies along the corridor. There is some concern about the Uighur militants in Xinjiang as well.
How has India reacted?
External Affairs Minister Sushma Swaraj told Parliament in December 2014 that “Government is aware that China is involved in the construction of or assistance to infrastructure projects… including… hydroelectric & nuclear projects, highways, motorways, export processing zones and economic corridors in Pakistan. Government has seen reports with regard to China and Pakistan being involved in infrastructure building activities in Pakistan Occupied Kashmir, including construction of China-Pakistan Economic Corridor. Government has conveyed its concerns to China about their activities…, and asked them to cease such activities.” In April 2015, however, TCA Raghavan, High Commissioner to Pakistan, was quoted by PTI as saying, “India has no worry over the construction of Pakistan-China Economic Corridor as an economically strong Pakistan would bring stability in the region.”
Source: The Financial Express
Resolution of the impasse between Sri Lanka and China on the construction of a Chinese-funded port city at Colombo is not only indicative of the pragmatic policy posture of the Sri Lankan government, but also an important first step towards the materialisation of the maritime silk route initiative (MSRI) proposed by China. The new port city in Colombo, envisaging $1.4 billion investment by China on the Sri Lankan coast, had run into problems after the current Sri Lankan government headed by president Maithripala Sirisena assumed office little more than a year ago and held back the project. Though the officially cited reason was re-assessment of the environmental impact of the project, alleged irregularities in the award of big-ticket construction projects during the Mahinda-Rajapakse government, was arguably the main reason for the re-look. Some strategic thinkers also felt the decision indicated the new government’s unwillingness to be seen as a close partner to China, a feature which had become distinctly noticeable during the earlier government’s tenure. The decision to go ahead with the project with hardly any major amendments except incorporating the condition of long-period leasing of land on which the city would be built, reflects the Sri Lankan government’s efforts to work closely with China. The decision could well have been influenced by the extensive Chinese involvement in Sri Lanka’s ongoing infrastructure development. China has been the largest investor in Sri Lanka’s post-conflict infrastructure development. The investments have been based on loans that have usually come at high costs, creating fiscal stress for the country. Nonetheless, the Sri Lankan dependence on Chinese investment continues to remain critical in the absence of other sources of infrastructure funding. Notwithstanding the cost, the Chinese investment in Sri Lankan infrastructure has also been generating dividends. The best example is the Colombo port. The Colombo International Container Terminal (CICT)—a joint venture between China’ Merchant Holding International and the Sri Lanka Port Authority, in 85:15 proportion of equity sharing—has been a remarkable success. On efficiency parameters, the port is now among the top 50 ports in the world, and is the leading port in the South Asia region. The key success of the port has been to develop as a major trans-shipment hub on the Indian Ocean. By being a deep-water terminal and with the capacity of handling the largest containers, the port has become a berthing favourite for ultra-large and very-large container carriers, which account for significant parts of container volumes in the port. The new port city will build on the success of the Colombo port. By creating new capacities, including on-land maritime real estate like a marina and new housing, the port city can well make Sri Lanka one of the busiest hubs on the Indian Ocean. The prospects have significant implications for the MSRI and India. As far as the MSRI—the grand Chinese maritime connectivity plan of linking the Far East with North Europe—is concerned, Sri Lanka is a vital cog by virtue of its strategic location. The Far East-to-North Europe maritime route is one of the busiest shipping routes in the world. Colombo’s development as a major trans-shipment hub on the route, allowing ships quick turnaround time, makes it a much sought-after destination for stopovers. This is evident from the increasing number of major shipping lines on the Asia-Europe route, which have begun berthing at the Colombo port. The liners include prominent shippers like CMA Marco Polo, Edith Maersk and Elly Maersk, all of whom have containers of the ultra-large and very large categories. The increasing integration of the Colombo port in the Asia-Europe traffic is also evident from its greater use by the Chinese and Korean shipping liners. The growth of Colombo port as the region’s major shipping hub increases its utility further for Indian businesses. Till very recently, Indian cabotage laws did not allow foreign vessels to move between ports on the Indian coastline for dropping cargo, if Indian flagships were available for the purpose. As a result, foreign vessels, after offloading in a particular Indian port, needed to turn out of Indian waters and come back to the coastline again, after berthing at a foreign port. The Colombo port has been providing this facility to liners headed for India’s east coast, as well as to some traffic on the west, though the latter is largely catered by Dubai. With Indian cabotage laws partly relaxed, more foreign ships are now able to drop off cargo in multiple Indian ports. But India’s coastline still lacks deep sea-water ports that will enable it to draw large container vessels that the Colombo port draws now. Till such ports come up, the dependence of Indian businesses on Colombo for trans-shipment will continue and is likely to increase as the latter takes on greater traffic. India’s amended cabotage rules will not serve their purpose unless its coastline develops port capacities commensurate with Colombo, Dubai or Singapore. Creating such capacities will require large investments. The most willing investors in this regard are the Chinese, who are likely to be viewed sceptically given the security concerns attached with their investments. In the meantime, however, Colombo port’s uninterrupted growth from Chinese investments will formalise the advent of the MSRI and will enlarge the port’s capacity to challenge the economic prospects of India’s shipping industry. The author is senior research fellow and research lead (trade and economic policy) at the Institute of South Asian Studies in the National University of Singapore
Source: The Financial Express
Vice President Joe Biden speaks at an event in Las Vegas. Biden acknowledged "overwhelming frustration" with Israel's government on Monday, April 18, and said Prime Minister Benjamin Netanyahu's administration has led Israel in the wrong direction, in an unusually sharp rebuke of America's closest ally in the Middle East.
"They are moving toward a one-state reality and that reality is dangerous," Mr. Biden said. U.S. Vice President Joe Biden on Monday acknowledged “overwhelming frustration” with the Israeli government and said the systemic expansion of Jewish settlements was moving Israel toward a dangerous “one-state reality” and in the wrong direction. Addressing the J Street lobby group in Washington, Mr. Biden said despite disagreements with Israel over settlements or the Iran nuclear deal, the United States had an obligation to push Israel toward a two-state solution to end the conflict between Israelis and Palestinians. “We have an overwhelming obligation, notwithstanding our sometimes overwhelming frustration with the Israeli government, to push them as hard as we can toward what they know in their gut is the only ultimate solution, a two-state solution, while at the same time be an absolute guarantor of their security," Mr. Biden said. A two-state solution envisages a Palestinian state on most of the West Bank and Gaza Strip, lands Israel captured in a 1967 war, and an Israeli state that absorbs some of the settlements Israel built on occupied land in return for mutually agreed land swaps.
Mr. Biden said his recent meetings with Israeli President Benjamin Netanyahu and Palestinian President Mahmoud Abbas left him discouraged over the prospects for peace at present. “There is at the moment no political will that I observed among Israelis or Palestinians to move forward with serious negotiations,” Mr. Biden said, “The trust that is necessary to take risks for peace is fractured on both sides.” He said both Palestinians and Israelis needed to tamp down rhetoric that fuelled violence and actions that undermined confidence in negotiations. Efforts by the Palestinian Authority to join the international criminal court were “only damaging moves that take us further from the path to peace,” he said. For Israel's part, Mr. Biden said the “steady, systematic expansion” of Jewish settlements on occupied land wanted by the Palestinians moved “Israel in the wrong direction.” “They are moving toward a one-state reality and that reality is dangerous,” Mr. Biden said, warning that moving in that direction would mean an endless cycle of conflict and retribution. Mr. Biden condemned the bombing of a bus and attack on another in Jerusalem on Monday by “misguided cowards” and offered prayers to the injured and their families.
Source: The Hindu Business Lines
The Trade Development Authority of Pakistan (TDAP) has taken decision to hold an exhibition named Pakistan Trade Caravan in Tajikistan and other Central Asian states, following the visit of Prime Minister Nawaz Sharif to Tajikistan where he met Tajik President Emomali Rahmon to further promote bilateral relation. In this connection special arrangements have been made to organize this exhibition at the Tajik capital Dushanbe. The exhibition will take place on 28-29 May. ng his visit the prime minister had met with Tajik President Emomali Rahmon. Both leaders resolved to further promote bilateral relations. During the show, following products shall be displayed textile, clothing (Top & Bottom), Pharmaceutical, Sports Goods (Martial Arts), Surgical Instruments Leather and Leather Products, Agro Products including Food and vegetable, Carpets, Handicrafts including Furniture. The purpose of the exhibition is to increase export base, raise awareness on Pakistan and its products, provide opportunities for joint ventures, investment and brand franchising, Exhibition/composite display. To promote Pak, Tajik bilateral relations, both governments have exchanged high level of diplomatic and trade delegations. Pakistan and Tajikistan have also signed about twenty agreements, protocols and MoUs to extend cooperation in energy, communications, insurance, investments and industry, air transport, banking and financial agricultural and food industry. Cooperation between the two countries Pakistan and Tajikistan started from 1991 and enjoy excellent relations. Geographically Tajikistan is the nearest Central Asian State to Pakistan.
Source: Yarn and fibre
ITM 2016 International Textile Machinery Exhibition and the Hightex 2016 International Technical Textile and Nonwoven Trade Fair that are expected to attract 1200 exhibitors and more than 60.000 visitors from 72 countries, will be held at Tuyap Fair Convention and Congress Center in Istanbul from June 1 to June 4. Latest technologies of Turkey's textile machinery industry will debut at ITM 2016. Being held with the partnership of Tuyap and Telnik Fuarcilik and supported by Temsad spread across 12 halls, ITM 2016 Exhibition and Hightex International Technical Textile and Nonwoven Trade Fair will be the largest gathering for textile technologies, which Turkey and the region have hosted so far, the organizers said in a press release. ITM 2016 in Istanbul will be a meeting point for all the industry representatives, including both domestic and foreign manufacturers and exporters. ITM 2016 will be 55 per cent larger compared to ITM 2015, and that has further increased interest among the participants. Being organized under the motto: “Textile Exhibitions are held in the Land of Textile” since 2004, ITM Exhibitions have become an important brand for Turkey and the surrounding countries. ITM Exhibitions have gained worldwide attraction with its visitors as well as with its exhibitors. In addition to local textile manufacturers showing keen interest, each exhibition is also visited by purchasing committees, groups of investors and professional visitors from all over the world, the release said. Hightex 2016, the 6th International Technical Textile and Nonwoven Trade Fair, will be held in Hall 11 at Istanbul Tuyap Fair Convention and Congress Center during the same period as ITM 2016. At Hightex 2016 Exhibition, the first and only event in its field, raw materials for technical textiles, intermediary and final products and production technologies will be seen together. The fact that Hightex 2016 Exhibition, the largest gathering for technical textiles industry in the Middle East and Eastern Europe, will be concurrently held with ITM 2016 Exhibition will create a highly positive and efficient synergy, the release said.
Source: Fibre2fashion
