The 47th Meeting of the GST Council will be held on 28th and 29th of this month in Srinagar. The GST Council’s last meeting which was held in New Delhi had recommended deferring the decision to change the rates on textiles. The 47th Meeting of the GST Council will be held on 28th and 29th of this month in Srinagar. The GST Council's last meeting which was held in New Delhi had recommended deferring the decision to change the rates on textiles. The GST Council had decided to retain the status quo on the GST rate on textile at five per cent. Office of Finance Minister Nirmala Sitharaman in a tweet said, "The 47th meeting of the GST Council will be held on June 28-29, 2022 (Tuesday & Wednesday) in Srinagar." The GST Council is likely to have a discussion on various issues including the GoM interim report on rate rationalisation as well as the GST rates on race courses, casinos and online gaming among others. The GST Council comprises finance ministers of the Centre and states. Under the GST, a four-rate structure are imposed of which 5 per cent tax, which is the lowest rate of tax applies on essential items while the top rate is of 28 per cent that applies on luxury and demerit goods. The other slabs of tax are 12 and 18 per cent. Notably, the implementation of GST will also be completing five years on July 1, 2022.
Source: The Hans India
The draft policy highlights simplification of online systems and application process, reengineering of all department services to reduce timeline and simplify forms. The Goa government on Thursday unveiled the draft Goa Industrial Growth and Investment Promotion Policy, 2022 which aims to strengthen the single window system and improve ease of doing business. Speaking to reporters here, state Industries Minister Mauvin Godinho said the policy aims to simplify the role of the Investment Promotion Board (IPB) as the single window system and create common application for all preestablishment clearances, including land allotment through the Goa Industrial Development Corporation (GIDC). The draft policy highlights simplification of online systems and application process, re-engineering of all department services to reduce timeline and simplify forms. The policy will create transparency and predictability in the GIDC's land allotment and the application made through the IPB, the minister said, adding that the entire land bank will be made available online and allotted through the corporation. The permission process will be made time bound, with three months for bigger industries and two months for smaller set ups, he said. The policy has its focus sectors including - IT and ITes, highend hospitality, niche tourism, food and agro-processing industries, Godinho said. The minister further said that the policy focuses on fiscal and non-fiscal support for local businesses and private players. The government will also conduct training programmes for skill and entrepreneurship development, he added. GIDC chairman Aleixo Reginaldo Lourenco was also present for the press conference.
Source: Times of India
"India fully supports a strong, unified, prosperous ASEAN whose centrality in the IndoPacific is fully recognised," India’s External Affairs Minister S. Jaishankar said. A special meeting between India and Southeast Asian Foreign Ministers opened on June 16 with co-chairs India and Singapore calling for strengthening ties amid Russia’s invasion of Ukraine and a heightened rivalry between the United States and China that threatens peace and stability in the region. India’s External Affairs Minister S. Jaishankar said India and the Association of Southeast Asian Nations (ASEAN) face geopolitical headwinds from the war in Ukraine and its knock-on effects on food and energy security as well as fertilizer and commodities prices and logistics and supply chain disruptions. "India fully supports a strong, unified, prosperous ASEAN whose centrality in the IndoPacific is fully recognised," he said. Singapore Foreign Minister Vivian Balakrishnan said Russia’s actions have "upended the international system of rules and norms.” Mr. Balakrishnan added that the rivalry between the U. S. and China has direct implications for all of Asia. "These developments, if unchecked, can threaten the sole system of peace and stability which we have depended on for the basis of our growth and development and prosperity over many decades,” he said. The two-day meeting marks the 30th anniversary of India’s dialogue relations with the 10-member regional bloc that includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, Myanmar and Vietnam. Jaishankar emphasised the need for strengthening land and sea connectivity with ASEAN member states. The upgrade of the India-Myanmar-Thailand highway is part of the ASEAN-India Connectivity initiative. Trade between India and the ASEAN region amounted to more than $78 billion in 2021. India mainly exports organic chemicals, minerals, ships and boats, iron and steel, pharmaceuticals, cotton and tobacco to ASEAN countries, according to India’s Commerce Ministry. Top products imported by India from ASEAN include coal, palm oil, telephones, light vessels and electronic circuits.
Source: The Hindu
Mr. Masato Kanda, Vice Minister of Finance for International Affairs, Japan, and Mr. Ajay Seth, Secretary, Department of Economic Affairs, Ministry of Finance, held the first IndiaJapan Finance Dialogue here today. In view of the growing importance of India-Japan relations in recent years, the dialogue on India-Japan financial cooperation, which had been held at the level of Deputy Director-Generals, was upgraded to the level of Vice Minister/Secretary. The Japanese delegation included the representatives from Ministry of Finance, Financial Services Agency, and financial institutions. From Indian side, the representatives from Ministry of Finance, Reserve Bank of India, Insurance Regulatory and Development Authority of India, Securities and Exchange Board of India, and financial institutions participated in the discussion. The participants exchanged their views on the macroeconomic situation, financial system, financial digitalization and investment environment in both countries, and confirmed that both sides will continue to work closely together as they hold presidency of G20 and G7 next year. The participants including private financial institutions also discussed various financial regulation issues towards further expansion of investment in India. Both sides agreed to continue discussions for further promoting financial cooperation and strengthening bilateral relations, and agreed to explore holding the next round of the Dialogue in Tokyo.
Source: PIB
Micro, Small and Medium-scale Enterprises (MSMEs) in the engineering and textile industries in Coimbatore and Tiruppur districts are hoping for revival of orders as there are indications of drop in raw material prices. Cotton prices have seen a significant drop for some varieties and marginal decline for some others. Textile mills are waiting for cotton prices to reduce more for widely used varities such as Shankar - 6 so that full-fledged operations become viable, according to sources in the industry. Several mills have switched over to production of synthetic yarn instead of cotton yarn because of the high cotton prices. Many mills have reduced production and are offering yarn stocks with them at discounts, the sources said. The mills increased the yarn prices last month and though the prices were not increased this month, with drop in demand for yarn, the mills are offering discounts, they added. According to garment manufacturers in Tiruppur, orders have reduced during the last few weeks because of high raw material (yarn) prices and the manufacturers are reluctant to take orders at the current rates. Though the manufacturers were asked to increase the prices of the end products by 15 %, dealers were not willing to accept the price hike. Hence, production is going on and the units are hoping yarn prices will stabilise, the manufacturers said. In the case of powerloom units, the domestic market orders are good though export orders have slowed down. If the yarn prices stabilise, orders are expected to pick up, say sources. In the engineering sector, K.V. Karthik, president of Southern India Engineering Manufacturers’ Association, said that though raw material prices are showing signs of reduction, the hike was too high that the units need further drop in prices to take up more orders. “Orders (for pumpsets) are still low and the manufacturers are waiting for raw material prices to decline further,” he said. The price of pig iron was ₹38 a kg in 2020 and it went up to ₹68 a kg. It has reduced to ₹62 a kg now. The prices of stainless steel are also seeing a similar trend and there are reports that scrap prices are increasing. “We expect the prices to fall significantly in the coming weeks and manufacturing will pick up only after that,” he said.
Source: The Hindu
Representatives of the 164 countries cheered after the package was passed before Director-General Ngozi Okonjo-Iweala addressed them early on Friday The World Trade Organization's members approved on Friday a package of trade deals, including pledges on health, reform and food security, struck after more than five days of negotiations. Representatives of the 164 countries cheered after the package was passed before Director-General Ngozi Okonjo-Iweala addressed them early on Friday. "The package of agreements you have reached will make a difference to the lives of people around the world," she said. "The outcomes demonstrate that the WTO is in fact capable of responding to emergencies of our time."
Source: PIB
India’s commerce and industry minister Piyush Goyal said: “We will take some solid decisions probably after seven years, subject to a few issues being sorted out in the next few minutes… But nothing is done till everything is done.” India managed to extract some concessions as members of the World Trade Organisation (WTO) late Thursday sewed up few deals, including reduction in fishery subsidies and temporary patent waivers to fight the pandemic. However, the members of the world body decided to extend a moratorium on cross-border tariffs on electronic transmissions until the next ministerial meeting, which is likely to take place in 2023. India had asked for an end to the moratorium but the US and European Union had argued that letting it expire would undermine a global recovery, already threatened by spiralling prices. India’s commerce and industry minister Piyush Goyal said: “We will take some solid decisions probably after seven years, subject to a few issues being sorted out in the next few minutes… But nothing is done till everything is done.” Talks were still continuing late into the night (India time) and a joint statement was yet to come. Sources said negotiations were taking place for granting 15 years to developing countries, instead of just seven years (as was proposed by some developed countries), to end their subsidies for fisheries in lieu of their willingness to extend the moratorium on ecommerce by at least two more years. While a patent waiver proposal for Covid vaccine gained traction, developed economies, mainly the EU, were unwilling to accept the proposal for the inclusion of therapeutics in the TRIPS waiver. The four-day ministerial conference, that started on June 12, was extended by a day to give negotiators more time to iron out differences and strike the deal. The multilateral trade body had seen a seven-year impasse as members differed widely on key issues and a protectionist tendencies rose. The package included temporary extension of the WTO’s 24-year-old moratorium on e-commerce tariffs until March 31, 2023. Some of the world’s big technology firms were apprehending that if the 1998 accord lapsed this week, it could result in cross-border tariffs on purchases from Amazon.com, Netflix movies, Apple music and Sony PlayStation games etc. The proceedings of the 12th ministerial conference, which went through several bumps, finally produced some outcome on the last day and prevented a wash-out after a debacle in Buenos Aires. Goyal expected solid outcomes from the ministerial. “There was a lot of sensitivity to each other’s concerns and needs,” he said. “In the true spirit that embodies world trade — in that spirit that the outcomes of the MC12 are being watched by the world as a signal that the multilateral order is not broken.” By late evening, trade ministers were considering a deal on the patent waiver proposal, a key agreement that the WTO director general said was necessary to end the “morally unacceptable” inequity of vaccine access in poor countries. The package also includes commitments to help ease the transportation and distribution of vaccines across nations.
Source: Financial Express
According to the latest data, the RBI purchased $1.96 billion in April After selling $20 billion in March in the foreign exchange market in March, the Reserve Bank of India turned net buyer of dollars in April. According to the latest data, the RBI purchased $1.96 billion in April. The central bank has been aggressively intervening in the foreign exchange market since the war broke out in Europe in late February, following which most emerging market currencies are feeling the heat as investors rushed for safe haven assets. The rupee has depreciated 4.8 per cent against the dollar in 2022. The Indian unit traded in a tight range on Thursday and ended the day at 78.08/$ as compared to Wednesday’s closing of 78.07/$. It was at yet another all-time low.
Source: Business Standard
The handlooms and textiles department has commenced the process of identifying and acquiring a land parcel measuring between 50 acres and 100 acres in Chennai’s Ambattur area to establish a one-stop marketing facility encompassing the entire textile value chain. This textile city would come up along the Chennai Outer Ring Road to promote the sector. The project, according to senior officials, would be implemented under public private partnership. The department held a couple of meetings with Chennai apparel association and other stakeholders regarding the project and received an overwhelming response. “At present, we are in the process of identifying suitable land along the outer ring road,” said a senior officer, seeking anonymity. Handlooms and textiles minister R Gandhi said work on the textile city has begun. “We will soon implement the project to establish the textile park in Chennai,” he said. The department has allocated ₹1 crore for conducting feasibility study and preparation of DPR for the textile park. Once the department acquires suitable land, the department would prepare a master plan and invite investors to establish their facilities. The project is aimed at creating marketing networks and networking infrastructure, both physical and virtual, by establishing robust IT and network initiatives and creation of large-scale marketplaces. “The upcoming textile city will have research and development facilities, wholesale-cumexport facilities, GST and customs tables to facilitate the investors for ease of doing business and enhance exports multifold. The upcoming facility will be superior in all ways than the existing textile valley in Karur, which has limited facilities,” the official. added. At present, there is no proper marketing facility for the textile and clothing industry in the state, he said. The department had a couple of informal meetings with Chennai Apparels Association and other stakeholders and the response was overwhelming. “We will have formal meetings with the apparel and knitwear associations based in Chennai, Tirupur, Karur and other regions. As of now, we are receiving good response from them and they are keen on having such (one-stop marketing) facilities,” the official added.
Source: Times of India
Garment exporters have appealed to the Union government to provide benefits under the Rebate of State and Central Taxes and Levies (RoSCTL) in cash directly to the exporters and not as scrips. Vijay Jindal, president of Garment Exporters and Manufacturers Association, said in a press release that credit scrips of exporters are trading at almost 20% discount. The scrips are trading at discounts largely due to new conditions imposed recently in the RoSCTL Scheme. Exporters may suffer ₹1,500 crore loss because of this. Mr. Jindal said, “RoSCTL scheme provides rebate against the taxes, levies, etc. that are already paid by the exporters on the inputs. These rebate has been converted into scrips that are tradable i.e. exporters can sell scrips to the importers and importers, in turn, can pay import duty with these purchased scrips as an alternative to cash import duty payments. While it was in discount earlier also, now the discount has gone up from 3% to about 20% on the scrips. This discounting of scrips benefits importers, who are taking undue advantage at the cost of exporters.” The government should restart cash reimbursement instead of tradable scrips, he said. Harish Ahuja, Executive Member of Apparel Export Promotion Council, said, “At present, demand for such scrips is very less as exporters are finding it difficult to find enough importers who can buy the scrips obtained under the RoSCTL scheme. Lack of demand means that importers offer to buy scrips only at a steep discount of up to 20%. If not addressed, India may lose its edge in global textile markets.” Indian textile industry will rapidly lose its global export competitiveness if imbalances in the RoSCTL scheme are not addressed immediately. The scheme is to make the textile industry competitive and strengthen exports. India currently exports textile and clothing worth more than $ 44 billion, including $ 16 billion of apparels and garments. However, the Scheme in its current form is eroding the export margins of the domestic textile industry. If the government does not make amendments to the RoSCTL structure, there is a concern that the industry may lose its competitive edge due to cost inefficiencies, they said
Source: The Hindu
According to the latest data available (of 2018), India’s R&D intensity remains 0.7% in comparison to other countries where the number is somewhere near 3%. India’s investment in the Research and Development (R&D) segment lags behind advanced economies substantially despite its increasing impact on the manufacturing sector. Unfortunately, India has been slow to start stepping up its investments in research and development (R&D) activities. India’s R&D intensity- measured as expenditure on R&D as a percentage of GDP- remains less than 1% as of 2018. According to a RBI article, India’s R&D intensity remains 0.7% (as of 2018) in comparison to other countries where the number is somewhere near 3% This low number can be attributed to less investment by Indian companies in setting up their R&D centres. India has been receiving billions of dollars in capital from outside markets (MNCs) on the back of access to the English-speaking engineers and experts living here who cost a fraction of what they would back at home. However, Indian companies are still not contributing much in strengthening the R&D segment which, in turn, is hitting the growth of the manufacturing sector of the country. With the roll out of 5G networks, the R&D industry might witness a sharp increase owing to more innovations in the industry. The decision to allow private networks tries to address the speed of 5G rollout by shifting the onus on enterprises that stand to benefit from the Internet of Things (IoT) and artificial intelligence (AI). “To harness opportunities in IR-4, concerted actions are required to channelize India’s strength in digital technologies to develop smart manufacturing. A pre-requisite for this transition is investment in R&D and strengthening the knowledge base of human capital,” stated the RBI article. The transformation in various sectors including agriculture, manufacturing and services might result in boosting economic productivity on an unprecedented scale. Industry 4.0 is an initiative with focus on developing an interconnectivity between physical and digital space through IoT. It aims towards making the IoT concept more familiar, available and affordable for the domestic markets and industries. Currently, IoT is used in supply chain management, customer engagement, virtual meetings, etc. "This positive development will enable enterprises to implement use cases in campus 5G deployments like massive machine type communications for Industry 4.0, ultra-reliable low latency communications for transportation use cases and enhanced mobile broadband for AR/VR use cases," said Ashutosh Sharma, VP & research director at Forrester.
Source: Economic Times
The United Kingdom yesterday launched a campaign to recruit and retain a skilled workforce in the logistics sector. It is part of the government’s Future of Freight plan, setting a strategy for itself and the industry to work more closely together to deliver a world-class, seamless flow of freight across the country’s roads, railways, seas, skies and canals. The Generation Logistics campaign, led by Logistics UK, the Chartered Institute of Logistics and Transport, and backed by £345,000 government funding, includes an online hub full of resources, learning materials and job openings to make it easier for people to start their career in the industry. The campaign also includes TV and radio advertisements to help attract potential candidates. This builds on the government’s unprecedented action during the pandemic, which has led to sector reports of pressures easing, following global challenges on the supply chain, according to an official release. The launch follows the government’s 33 actions taken to tackle the heavy goods vehicle (HGV) driver shortage and protect the supply chain. This included increasing the number of driving test slots, investing in new roadside facilities and introducing bootcamps, which has seen the number of available HGV drivers stabilise. The strategy includes £7 million in investment to boost the uptake of innovative new technology, helping decarbonise and digitalise the sector. Funding could go towards initiatives like trialling hydrogen cranes to support decarbonisation or even testing low carbon fuels across the industry. These technologies will support a more cost-efficient, reliable, resilient and sustainable freight sector. Today’s investment will support wider economic growth by ensuring businesses can operate efficiently, getting the goods they need on time and at a reasonable cost while safeguarding their jobs. Speaking on the Future of Freight plan, Michelle Gardner, head of public policy at Logistics UK commented: “The publication of the Future of Freight plan is a positive step forward for industry; it reaffirms government’s vital support of one of the largest sectors of the UK economy and helps to provide clarity for logistics businesses moving forward. “The inclusion of £7 million investment to boost the uptake of innovative new technologies and the development of a National Freight Network is particularly welcome. The government is also right to focus on planning rules to reduce barriers to building new logistics developments and driver parking and facilities – we look forward to engaging with the call for evidence.”
Source: Fibre2 Fashion
Textiles and Jute Minister also said that Bangladesh is establishing 100 economic zones where companies can set up manmade fibre (MMF) factories The business policy formulated by the government of Bangladesh is completely industrial and investment-friendly, said Textiles and Jute Minister Golam Dastagir Gazi. He also said that the textile products of Bangladesh are highly rated internationally because of their superior quality. “The government has always favoured this industry and has adopted various policies for its development,” he added. He was speaking as the chief guest at the inauguration ceremony of the third edition of Intex South Asia 2022 in the capital on Thursday. “Intex South Asia is a very important show in South Asia and we are delighted that this expo was held in Dhaka. We believe that the Intex South Asia platform will boost the economy and create opportunities for the textile and apparel industry of Bangladesh and other participating countries,” he added. Highlighting the importance of Intex exhibitions, the Minister said that such exhibitions are very important for expressing the passion of Bangladesh globally. He further said that Intex South Asia Bangladesh Exhibition has taken another step forward in the development of the textile industry of the country. “This created a good relationship between the textile traders of Bangladesh and the textile traders and suppliers of South Asia, which is good news for the textile industry of the country,” he added. He also said that Bangladesh is establishing 100 economic zones and Indian companies can set up manmade fibre (MMF) factories here. Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said that aligning business strategies with changing trends in the fashion industry and building capabilities accordingly are a must to sustain in the global competitive market. Bangladesh’s RMG industry is focusing on remodelling business, product diversification, and technology upgradation to remain sustainable and cost competitive, he added. “As the second largest exporters, we rely heavily on several import items like yarn, fabric, accessories etc and being the neighboring country, India plays a very significant role in it,” he added. He also said that Intex South Asia being undoubtedly one of the biggest established international textile sourcing shows of South Asia will help the manufacturers to get to know about all the updated technologies and functions under the same umbrella. “Bangladesh’s apparel industry is laying emphasis on non-cotton products as the manmade fiber has been dominating the global market for a long time, and will continue to do so in the coming days as well,” he added. Arti Bhagat, director, Worldex India and organizer of Intex South Asia said: “We can confidently say that Intex South Asia is truly the industry’s strongest business and market intelligence platform, bridging the gap between India, Bangladesh, South Asia and the world.” Cedaar Textiles Pvt Limited, a Bengaluru based company, produces around $30 million MMF and its fabrics annually and 60% exported to Bangladesh. Talking to Dhaka Tribune, Gobinda Ghosh, marketing manager of Cedaar Textiles said that they have been doing business with Bangladesh since 2002 and now its apparel manufacturers are expanding their business to non-cotton base goods. “Though we have more than 50 customers here, we want to increase it more,” he added. Manish Kashyap, vice-president (sales and marketing) of Ahmedabad-based Rajkrupa Textiles told Dhaka Tribune that Bangladesh can be one of the strong non-cotton apparel manufacturing countries and they want to create strong business relations with the country’s apparel manufacturers. “We came to Bangladesh for the first time to create relationships with its exporters. I think Bangladesh would be our main export destination for MMF if we are able to convince them,” Manish added. Intex South Asia 2022 Bangladesh has been organized by Worldex India and supported by a number of textile and apparel related organizations of Korea, Thailand, Malaysia, Bangladesh and other countries. More than 120 companies from Bangladesh, India, Korea, China, Thailand, Singapore, UAE, Italy, USA, and several other countries are showcasing their latest offers and products. Among others, Secretary of the Ministry of Textiles of the Government of India Upendra Prasad Singh, Kazi Iftequer Hossain, president of Bangladesh Garment Buying House Association, Mohammed Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), were also present.
Source: Dhaka Tribune
Meanwhile, the United States on Thursday announced that it will provide $6 million in emergency assistance to Sri Lanka Sri Lanka is discussing with China to amend the terms and conditions of the $ 1.5-billion currency swap deal with Beijing so that it can be used for imports amid an unprecedented economic crisis in the island nation, the Daily Mirror newspaper reported on Thursday. Meanwhile, the United States on Thursday announced that it will provide $6 million in emergency assistance to Sri Lanka to address the needs of the marginalised and vulnerable communities.
Source: Business Standard
Partners with Textile Genesis on blockchain initiative Supima is digging deeper into supply chain authentication, with technology that will be integrated into its licensing program. The brand for American-grown Pima cotton has forged a strategic partnership with Textile Genesis, a traceability platform customized for the fashion and textile ecosystem. The technology will digitally connect Supima’s comprehensive supply chain from growers to the brand/retailers. Integrated with this digital platform, Supima’s technology partner Oritain will provide the forensic origin authentication for Supima cotton across the platform. Textile Genesis’ Fibercoin technology will be integrated into Supima’s licensing program and applied to all Supima branded fiber throughout the supply chain, creating a nonfungible digital token for every kilogram of Supima cotton that can be physically and forensically verified and authenticated by Supima from the farm through to the retail shelf. The combination of forensic physical authentication from Oritain and digital authentication from Textile Genesis will independently validate the Supima content of products at every stage of the supply chain. Supima president and CEO Marc Lewkowitz asserted there is not other system like this for any other fiber. “The Supima partnership with Textile Genesis provides for the very first time, undisputable proof of origin for consumer products all the way back to the fiber’s origin,” he said. “This enables Supima’s partner brands to credibly claim advantages in terms of product quality and sustainability that are independently verifiable through both digital and forensic testing.” Textile Genesis founder and CEO Amit Gautam said the collaboration is setting a new benchmark for the cotton and premium fiber’s industry and paves a new path for the entire fashion eco-system. “We are creatively combining three major innovations – digital-tokens based article-level traceability, forensic physical verification and Supima brand licensing – in a single integrated platform,” he said.
Source: Home Textiles Today
