The GoM, which met virtually on June 17, decided to seek more time from the GST Council to finalise its main report concerning restructuring of the GST slabs. A group of ministers (GoM) reviewing goods and services tax (GST) rates has proposed removal of exemptions on a host of services, including for stay in relatively cheaper hotel rooms, hospital rooms above a tariff threshold and services provided by financial sector and food safety regulators. In line with a mandate to raise the revenue neutral rate (RNR) from a little above 11% now, the group headed by Karnataka chief minister Basavaraj Bommai also proposed raising the GST rate on electronics waste steeply from 5% to 18%. Also, a rate hike is proposed for goods and services related to exploration of petroleum and coal-bed methane. These activities are now taxed at the lowest GST slab of 5%. The GoM also proposed removal of exemptions for reinsurance of exempted insurance schemes such as weather-based crop insurance schemes and the GST Network services to the government. A few proposals aimed at correcting residual cases of inverted duty structures have also been made. These changes are proposed even as the GoM is yet to firm up its views on GST slabs restructuring. An overhaul of the GST slabs – mainly four now, 5%, 12%, 18% and 28% – is expected to lead to a reduction in the number of slabs and an increase in the RNR. The proposals will be considered by the GST Council, which comprises the Union finance minister and state finance ministers, as it meets in Chandigarh on June 28-29. The slabs recast, however, is likely to get delayed in the wake of persistently high inflation. The restructuring with the objective of raising the RNR will inevitably lead to rate increases on a large number of goods and services and thereby stoke inflation. The GoM, which met virtually on June 17, decided to seek more time from the GST Council to finalise its main report concerning restructuring of the GST slabs. Sources said the GoM suggested levying GST at the rate of 12% on hotel accommodation below Rs 1,000, a move that would bring a large segment of the hotel industry under the GST purview. Currently, no GST is levied on hotel rooms with tariff below Rs 1,000, while the tax is 12% on rooms with tariffs between 1,001 and7,500, and 18% on more expensive rooms. Similarly, while all hospital services are currently exempt from GST, the GoM has suggested a 5% levy without input tax credit on hospital rooms with a daily tariff of `5,000 or above. The move is in view of the fact that high-end hospitals are now providing premium accommodation to patients. However, ICU-related room tariff will continue to be exempt. Another hospital services provided by cord blood banks may be covered under the tax net as well. The rate could be either under 5% or 12% bracket. The exemption provided to business class travels from airports in the north-eastern states will end soon if the Council accepts the GoM proposal to cover it under the tax net. Currently, GST is levied at the rate of 12% on business travel by air in rest of the country. The GoM also recommended that services provided by the Reserve Bank of India to banks and financial institutions, IRDAI to insurers and intermediaries and Sebi to companies be brought under the tax ambit. It also suggested withdrawing exemption on services provided by FSSAI to food business operators. While the rate at which these will be taxed is not yet clear, most services attract 18% GST now. “While the progressive removal of exemptions under GST has been one of the stated objectives, it is essential to implement such removal of exemptions in a phased manner without having any adverse consequences on the impacted businesses, which are recovering from two years of business uncertainty and supply chain challenges,” MS Mani, partner, Deloitte India, said. Retail inflation eased to 7.04% in May from a 95-month high of 7.79% in April. It still breached the upper band of the central bank’s medium-term target (2-6%) for a fifth straight month. The RBI is still widely expected to go for a third round of rate hike in August but the moderation in inflation substantially reduces the possibility of any out-of cycle rate action in between.
Source: Financial Express
Delhi Dialogue is India's premier annual track 1.5 international conference bringing together dignitaries, senior officials, business leaders, scholars, academicians and eminent persons of India and ASEAN to discuss ways to further strengthen the ASEANIndia Strategic Partnership. The year 2022 marks the 30th anniversary of dialogue relations between ASEAN and India. A relationship that started in early 1990s, with the inception of new global realities, now has turned into a robust, strategic partnership. In the sideline of the Special ASEAN- India Foreign Ministers Meeting in Delhi on 15 June, the Minister of External Affairs (MEA) in collaboration with the ASEAN-India Centre (AIC) at Research and Information System for Developing Countries (RIS) organised the 12th Delhi Dialogue (DD XII). Delhi Dialogue is India's premier annual track 1.5 international conference bringing together dignitaries, senior officials, business leaders, scholars, academicians and eminent persons of India and ASEAN to discuss ways to further strengthen the ASEANIndia Strategic Partnership. Launched in 2009, eleven editions of the Dialogue have been held so far and the 12th one just concluded on 16-17 June 2022. Over 200 participants including 16 leaders and senior officials and 50 senior research scholars and diplomats attended the 12th edition of the DD XII. DD XII’s theme was “Building Bridges in IndoPacific”. This is highly appropriate at a time when Indo-Pacific countries are coming together to build a rules-based global order, to bring climate sustainability and to strengthen lives and livelihoods. Foreign policy dimensions have been changing fast, so also the agenda of Delhi Dialogues. DD XII had seven plenary sessions and one ministerial on contemporary issues of the Indo-Pacific. It was great show as well as a dialogue which had made a collective effort to bring scholars, practitioners, thinkers and diplomats together from India and Southeast Asia. Indo-Pacific is an interconnected geography where ASEAN is at core. In recognition of the centrality of ASEAN in India’s Vision of the Indo-Pacific and in commemoration of the thirty years of ASEAN-India relations, the objective of the current edition of the Delhi Dialogue was to identify further areas of cooperation leading to further strengthening of the strategic partnership between India and ASEAN. Both ASEAN and India believe that openness, inclusiveness, rules-based order, freedom of navigation and peaceful settlement of disputes lie at the very core of the Indo-Pacific. There is considerable convergence in both the Indian and the ASEAN conception of the Indo-Pacific. Both India and ASEAN emphasize connectivity in the Indo-Pacific and underline cooperation over rivalry. India is consciously working with ASEAN towards a vision of an open and inclusive Indo-Pacific in tandem with initiatives such as the Act East Policy (AEP), and Indo-Pacific Oceans Initiative (IPOI), to ensure Security and Growth for All in the Region (SAGAR). India and some of the ASEAN countries are also members of the recently launched the IPEF. What the Indian Foreign Minister said at the special ASEAN-India ministerial: “Under the current global uncertainties, as we review our journey of the last 30 years and chart our path for the coming decades, it is important that we identify a new set of priorities while ensuring the early realization of our ongoing initiatives.” This DD XII has come out with new agenda and a set of recommendations. Today’s DD XII has opened up fresh and contextual perspectives on ASEAN-India relations. The Covid-19 pandemic has seriously impacted the economies of Indo-Pacific. Challenges have multiplied manifold but it has also opened up new opportunities for cooperation. The international community is now more concerned about sustainability, environment, healthcare, digital connectivity, cyber security, resilient global and regional value chains and education. Dr Prabir De, who was coordinating the DDXII, told us “Building Bridges in the Indo-Pacific at such a challenging time is aimed to pave the way for deeper integration by narrowing the differences between the nations. In this Delhi Dialogue, speakers from the ASEAN member states and India shared their perspectives on these crucial issues together and discussed the most pressing challenges of our time.” In IndoPacific region, the value lies in its core underlying idea which is that it is predominantly maritime in nature and is also the centre of geo-politics. Concept of competition, control and conflict is not seen to work here. Land boundaries could be easily demarcated, but such is not the case in case of oceans. Sea is life line of trade and 50 per cent of global trade passes through Indo-Pacific. Free, open and inclusive seas are important. Transnational nature of challenges and no nation can tackle them alone given their maritime geography.Cooperation is the only way forward. Problems of land spill over to the seas and inter- and intra- land disputes are major challenges. While attending the DDXII, Admiral R HariKumar, Chief of the Naval Staff (CNS) said “Maritime security is becoming a collective responsibility. Terrorism at sea, drugs, smuggling, natural disasters etc. affect all in the region. Maritime security may include coordinated patrols, bilateral and multilateral excises.” ASEAN and India need to inculcate habits of cooperation by forward leaning and strengthen institutional mechanisms. Prevention of regional hegemony to maintain peace and stability is needed. Ambassador Pou Sothirak said “Dialogue on hard security issues should be initiated by India.” Common interests should be promoted rather than focusing on individual visions. Collective dialogue is required. Synergy is required for expanding cooperation between India and ASEAN. India does not see Indo-Pacific a club of limited members but sees it as an inclusive region. Extended global supply chains have crumbled due to pandemic and the crisis in Ukraine. The post-pandemic lessons has impacted humanity all across the globe as there was a disruption of all nature (supply side, food, vulnerabilities, health care etc.,) and Ukraine crisis has called for nationalism and protectionism Cooperation in Indo-Pacific can help in this regard. Makato Kojima suggested that we should ensure the stability and prosperity of the Indo-Pacific region, it is vital to maintain or bolster its free and open maritime order. The pandemic necessitates the need to think about alternate supply chains, connectivity and infrastructure development.Therefore, strengthening regional/physical connectivity (India – ASEAN, Indo-Pacific) is a prominent link for development.Enhancing policy prioritization for sustainable finance and growth through five key enablers, namely, resilience building, market solutions and development, infrastructural enablers, capacity building and broad stakeholder collaboration is essential. Roland Rajah of Lowey Institute said “India – ASEAN partnership has strategic importance in the Indo-Pacific region and the regions also require Regional Trading arrangements.”Building back stronger from the pandemic requires both factor market reforms and banking sector reforms. Both of the reforms are institutionally and politically difficult in certain ways. “However, climate change reforms (green structural reforms) along with digitalization/possibilities that digitalization provides need big push.” said Sabyasachi Kar, Professor at the IEG. ASEAN and India should continue with facilitation of trade, investment and value chains in the post-pandemic recovery and rebuilding. “China Plus One approach on diversification of trade, resilient supply chain has now become an intrinsic part. Resilience is an important component of international trade” said by Rajeev Kher, Former Commerce Secretary. QUAD started as a security formation is now infused with economic content, and the IPEF launched by the US has gained centre stage. Special remarks was delivered byASEAN Secretary General Dato Paduka Lim Jock Hoi. There is a need to make the market open and make use of non-tariff options to boost exports, make movement of goods made easyand ultimately promote trade in the region. Trade hostilities between some countries are likely to increase. Dato Ramesh Kodamal, Co-chair, AIBC said “ASEAN-India FTA has not been reviewed for the last 10 years, and the review is needed for trade to move forward”.“Resilient supply chains are needed for resilient future.Australia imports around 90 per cent of medicines and therefore becomes vulnerable in case of a supply chain disruption.” said by Dipen Rughani, Founder and CEO of Sydney-based Newland Global Group. Global order is changing very fast. There is a change in the global governance of power, which has disrupted or set a push back against globalization due to some extent. The political will is strong. Asia – Pacific order may slowly but surely be giving way to the Indo – Pacific. Union Minister of State Rajeev Chandrasekhar said “India’s Digital India Programmeacted well as a response to the pandemic. Therefore Digital Economy, Digital Cooperation and Digital Partnership which ensures quality, depth, longevity and sustainability is crucial.” ASEAN-India digital partnership is important as a link to trade-security partnership. There are tremendous opportunities for Indian and ASEAN countries to capitalize in tech as the future of tech is real. “Indo-Pacific countries require investments in building the digital infrastructure and services to more inclusiveness across counties within country too.” said by Mana Sothichak of the Lao PDR. Telecommunications play a significant role in shaping the digital financial architecture. The TCIL is working on two important digital initiatives like e – vidya bharathi and e – arogya bharathifunded by MEA. Renewable sources provide the cheapest energy and we need cost effective storage. IndoPacific region has the potential for energy growth. Energy is the prime contributor for all activities, speed and scale needs to be present in making a transition to renewable energy. Union Minister of Power, New & Renewable Energy R K Singh said “Energy is essential for growth and development is not possible without energy”. Development requires carbon space for the developing countries. India is working towards providing energy to all. Energy trade is present with all neighbouring countries including Nepal, Bhutan, Bangladesh, and energy trade is expected to happen with Sri Lanka and Myanmar. India and ASEAN need to collaborate on energy transition,where countries share similarities in both potential and challenges. India has already taken steps towards solar energy with the ISA and initiative of One World One Sun One Grid (OWOSOG). ASEAN NSE -0.10 % has huge potential in line with India’s initiative OWOSOG. At the same time, monetary and capacity building collaboration are required. Energy insecurity, food insecurity, water insecurity coastal flooding, urban heat stress and wildfires are likely to be major issues. Build bridge between India-ASEAN to adapt to climate change and mitigation. “Indo Pacific is a high-risk region and need to turn to green sources is required.” said by Hezri Adnan, Executive Director of Kuala Lumpur-based thinktank MIER, International cooperation is required in the field of energy such as ASEAN-India Green Fund and ISA initiatives. India and ASEAN has taken initiative towards achieving Net Zero targets in the last COP26. India’s ranking in climate change performance has improved since 2014 because of greater investment in renewable energy. India and ASEAN must aim to realign their energy, innovation and trade policies. Establishing solar and green hydrogen value chains is another feasible option. Thuta Aung, Executive Chairman of the The Mandalay Forum for East Asian Studies said “Solution for next 10 years should be based around Crafting Climate Cooperatives”. It is necessary for the public and private sector of ASEAN, India, and East Asia to “Work together” to the improvement of environment for digitalization. The technical issues in materializing the ASEAN – India cooperation fund have to be streamlined. In his Special Remarks by SA Vigneswaran, Malaysian Prime Minister's Special Envoy to India and South Asia said “There is a need for India to cooperate with ASEAN. ASEAN-India One Stop Information Gateway may be set up for addressing concerns of the MSMEs. Implementation of activities should be done through ASEAN parliamentarians also to make it more effective”. Malaysia is with India in building deeper partnership with ASEAN as well as Indo-Pacific. In his Valedictory Address, Rajkumar Ranjan Singh, Union Minister of State of External Affairs and Education said “Need to work on ways to develop suggestions into tangible outcomes”. In the middle of global challenges, ASEANIndia partnership is a source of balance and harmony in the system.Nonetheless, India must deliver more through the comprehensive strategic partnership, which has been adopted at the special meeting of ASEAN-India Foreign Ministers.
Source: Economic Times
Industrial units will be called Development of Enterprise and Service Hubs (DESH) that may be allowed to sell in the domestic market, and contract manufacture for those outside these zones as well India is proposing to transform its narrow export-focused special economic zones (SEZs) into comprehensive economic hubs through several concessions and the easing of restrictions to attract more investment in these areas. Industrial units located in these hubs, which will be called Development of Enterprise and Service Hubs (DESH), may be allowed to sell in the domestic market, and contract manufacture for those outside these zones as well, according to a draft circulated for consultation. Some fiscal incentives and measures to improve the ease of doing business are also likely to be part of the package to transform SEZs into comprehensive economic zones. These hubs may be established by the Centre or a state or jointly by them, or any person for the manufacture of goods or rendering services or for both. An 'equalisation levy' may be imposed on goods or services supplied to the domestic tariff area to bring taxes on them at par with those provided by units outside the zones. Currently, units in SEZs can only export goods or services and can't sell in the domestic market.
Forex Norm
Relaxation Appropriate legislation is likely to be introduced in the upcoming monsoon session of Parliament once the draft is finalised after stakeholder consultations, said people aware of the deliberations. Finance minister Nirmala Sitharaman said in her February budget speech that the SEZ Act will be replaced with new legislation that would enable states to become partners in development. States looking to set up such zones will be able to set up boards that will be responsible for oversight. It is also proposed to relax the mandatory foreign exchange payment for domestic tariff area supplies and permit subcontracting both for goods and services for DTA units. "The plan is to make the new SEZ scheme compliant with the WTO rules and doing away with the Net Foreign Exchange clause is the first step in that direction," said one official. Many proposals in the draft are from the 2019 report of an expert committee headed by Bharat Forge chairman Baba Kalyani. The committee had suggested SEZs be converted into employment and economic enclaves (3Es) with the extension of tax sunset clauses, simplification of processes, tax benefits for the services sector, and extension of MSME schemes to these zones.
Source: Economic Times
The minister for commerce and industry and textiles said that the government is moving ahead on free trade pacts with Canada, European Union and the UK. Moreover, Goyal informed that Australia, Israel and the Gulf Cooperation Countries have expressed interest to forge Free Trade Agreements (FTAs) with India, along with Eurasia and Brazil. Union minister Piyush Goyal has expressed hope that the free trade agreement between India and the United Kingdom will be concluded by Diwali. The minister for commerce and industry and textiles said that the government is moving ahead on free trade pacts with Canada, European Union and the UK. Moreover, Goyal informed that Australia, Israel and the Gulf Cooperation Countries have expressed interest to forge Free Trade Agreements (FTAs) with India, along with Eurasia and Brazil. The Gulf Cooperation Council (GCC) is a political and economic union of Arab states bordering the Gulf. It was established in 1981 and its six members include the United Arab Emirates, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain. Diwali in October was set as a timeline for a draft FTA after British Prime Minister Boris Johnson's talks with Prime Minister Narendra Modi during the former's visit to the country last month. "All countries are eager to make friendship with India, as we offer huge opportunity and promise. We are moving ahead on FTA with Canada, EU, UK. Australia, Even GCC and Israel along with Eurasia and Brazil have shown their interest to forge FTA with India. I am hopeful that by Diwali, India-UK FTA will be concluded," Goyal said. He was addressing at the inauguration of the 67th India International Garment Fair at Greater Noida on Monday. He observed that apparel, fashion jewellery and MICE (Meetings, Incentives, Conferences and Exhibitions) are three industries where India has to grow. Total trade between India and the UK stood at USD 16 billion in FY22 (Apr-Feb). The UK was India's 17th largest trading partner during the period. A free trade agreement is a trade pact according to international law to form a free trade area between the cooperating states.
Source: Economic Times
India has, for the last few years, been trying to rework its bilateral air services agreements with the UAE, unifying all the rights under one umbrella. That would curtail the number of flights allowed to each airline. The middle eastern carriers have been up in arms against it. There has been no final decision on it yet. Emirates CEO Tim Clark said he hopes for the recently signed free trade agreement between India and UAE to make room for more cargo as well as passenger transport between the two countries, but added the government’s imposed constraints on foreign airline operations is “vexing”. The free trade agreement, which came into effect in May, allows duty free exports of textiles, agriculture, dry fruits, gems and jewellery to the UAE market. “I saw embracement of the two countries for the FTA but it has not manifested itself in more flights to India. I am hoping that will come,” said Clark on the sidelines of the annual general meeting of International Air Transport Association (IATA) in Doha. “All I can say is that it is in the hands of the Indian government. Since 2015, we have been requesting for more points, more frequencies and more seats,” he said “I do not think anyone could be more persuasive than we have been in the value of doing that,” he added. India has, for the last few years, been trying to rework its bilateral air services agreements with the UAE, unifying all the rights under one umbrella. That would curtail the number of flights allowed to each airline. The middle eastern carriers have been up in arms against it. There has been no final decision on it yet. “We know the story of India. And yet, they have this constraining approach to aviation, which has not helped the economy,” he said. “But these things have always been, dare I say, vexing for the Indian government,” he added. When asked if he has seen any change in the Indian government’s attitude off late, on this issue, he replied, “Not really.” Lufthansa CEO Carsten Spohr said demand for international travel has bounced back in India and so “traffic rights and operational resources have to be provided,” Lufthansa currently operates 42 weekly flights to India and Spohr said he wants to get back to the airline’s pre-Covid19 weekly capacity of 56 flights a week. On Sunday, Philip Goh, regional vice president for Asia Pacific at IATA, said that India’s high taxation structure on aviation fuel and continued imposition of price bands on airfares are “bad ideas” that “retard” the recovery and growth of the aviation industry. “Taxes is always an issue for the airlines whether it is in fuel or in any other possible way,” “These are all bad ideas that retard the recovery of aviation and tourism,” he said at the industry association’s annual general meeting in Doha while giving the example of Thailand, which wants to levy tourism tax to increase its revenue, as well. “Any measures that increase costs and depress airlines’ ability to increase revenue are bad for the economics of aviation.” Aviation fuel in India attracts the highest level of taxes in the world. Airlines have been requesting the government to bring the fuel under goods and services tax (GST). The government hasn’t done that yet.
Source: Economic Times
India's Ministry of Commerce and Industry latest data shows that the US has become India's largest trading partner, exceeding China with bilateral trade reaching USD 119.42 billion. From the breakdown data, India's trade exports to the US increased from about USD 51.62 billion in the previous fiscal year to USD 76.11 billion, while imports increased from about USD 29 billion to about USD 43.31 billion. India's major exports to the US include polished diamonds, pharmaceutical products, jewellery, light oil and petroleum, frozen shrimp, cosmetics and more. India's imports from the United States are mainly oil, liquefied natural gas, gold, coal, recycled products and scrap iron, large almonds, etc. The data also shows that the bilateral trade volume between India and China in the 2021- 2022 fiscal year is about USD 115.42 billion, an increase of about 1/3 from the USD 86.4 billion in the previous fiscal year. Among them, India's exports to China are about USD 21.25 billion, and its imports to China are about USD 94.16 billion. It is reported that the trade volume of imported goods from China is increasing, and the top 100 imported items each have an import value of more than USD 100 million. Indian experts believe that India's dependence on China for imports of manufactured goods shows no sign of easing. The statistical data of China and India are different, which leads to differences in the trade volume figures announced by each of them. Chinese data shows that China is India's largest trading partner from 2013-2014 to 2017- 2018 and 2020-2021. In addition to China, the US and the UAE were once India's largest trading partners. China has not always been India's largest trading partner, and this is not the first time that the US has become India's largest trading partner. For a long time, China and India have maintained a relatively large trade deficit, while India has maintained a trade surplus with the US. Therefore, India has always regarded the US as an important export market. In the light of the above facts, it is pertinent to examine what really happened to the US-India trade? Will Chinese products decrease in India? Will China-India trade and economy weaken? India imports items ranging from small screws to large , refrigerators and mobile phones are mostly Chinese products. These Chinese products are of high quality and low price and are almost unmatched by other countries. They are very popular among Indian consumers, and even the utensils for Indians to worship gods and various decorative flowers, bags, shoes and hats, etc. come from China. China is often used by the Indian media to illustrate the way Chinese goods "invade" India. In particular, mobile phones and consumer electronics are the most obvious because of their cost-effectiveness and affordability. Whereas, most of the US exports to India are energy products and agricultural products, China's exports to India are mostly manufacturing products, giving the impression that Chinese products are occupying the Indian market. But, in more invisible situations, such as in emerging information fields, the US dominates. Such as e-commerce Amazon, search engine Google, social media Facebook, Twitter and WhatsApp, etc. The continuous strengthening of US-India trade relations is due to both the epidemic and India's attempt to "decouple" from China. However, the security factor occupies a critical position, that is, with the help of the "China fear" mentality at home and abroad, India has accelerated the substitution of Chinese industries. India wants to leave China aside, attract capital from the US and other countries, undertake high-tech enterprises, and deeply participate in the global supply chain to promote the great development of India's domestic manufacturing industry. However, at present, the fundamentals of China-India economic and trade cooperation have not changed.
Source: Economic Times
To improve job opportunities and provide practical training, the Ministry of Skill Development and Entrepreneurship (MSDE) organized the Pradhan Mantri National Apprenticeship Mela across 10 districts in Odisha today. Opportunities for apprenticeship training in more than 500+ trades across 36 sectors were offered to the participants. Over 100 companies participated in the fair to provide employment opportunities to individuals who had 5th–12th-grade pass certificate, a skill training certificate, an ITI Diploma, or a graduate degree. The aspiring apprentices were given several choices of trades, including locally relevant job roles such as welder, electrician, beautician, mechanic and more. This program aims to encourage employers to hire apprentices from these targeted districts as and assist them in identifying the right job roles while building their potential through robust skill training. In addition, candidates will receive certificates recognized by the National Council for Vocational Education and Training (NCVET), ensuring increased employability, giving them an opportunity to become entrepreneurs in their respective domains. Participating organizations in the Pradhan Mantri National Apprenticeship Melas had the opportunity to meet potential apprentices at a common platform and select candidates, on-the-spot. Furthermore, small-scale industries with at least four employees also had the opportunity to hire apprentices at the event. A credit bank concept will also be introduced soon, with a repository of various credits accumulated by students that can be used for future academic pathways. Expressing his views on the Pradhan Mantri National Apprenticeship Mela, Shri Atul Kumar Tiwari, Special Secretary, Ministry of Skill Development & Entrepreneurship and Director General, Directorate General of Training, said that Apprenticeship Mela is an initiative that allows qualified individuals to gain hands-on industry experience while improving their career prospects. Apprenticeship is the most sustainable skill development model because it bridges the gap between skill demand and supply, both in terms of quantity and quality. Apprenticeships allow an individual to use an organization's intellectual and physical resources to address the gaps faced during academic learning. We look forward to organizing more such apprenticeship melas in future, extending stronger youth-industry connect, he added In addition to the Apprenticeship Melas, a special initiative was taken to celebrate the International Day of Yoga. The objective was to join the celebrations of the nation in solidarity as well as build public interest in the practice, by highlighting its importance and contribution as a significant asset in improving public health. The ITI staff and candidates were engaged in various activities like yoga demonstrations, digital workout sessions, consultations with yoga experts and more. They also raised awareness about various job roles which are in demand, globally and nationally, such as yoga instructor, yoga therapist, yoga advisor and yoga aerobics instructors.
Source: PIB
The state government has received a very positive response to its 'Powerloom Incentive Policy' that was launched on December 30, 2021 with the aim of becoming self-dependent in garment production particularly school uniforms for children. State Micro Small & Medium Enterprises (MSME) & Textiles minister Chandranath Sinha said at the state assembly that the government in just over five months received proposals for setting up of 40 per cent of the 2000 odd powerlooms to which the state will be providing benefits under the scheme. "The powerlooms that have evinced interest to produce fabric (cloth) abiding government norms will be provided with thread by Tantuja that will purchase the fabric from the producers for a period of three years. The state government will bear 20 per cent of the machine cost which will be needed for these new age shuttleless power looms for production of improved quality fabrics," Sinha said.Chief Minister Mamata Banerjee has directed the state government to be self-reliant in producing fabric for school children. "We will initially ask the powerlooms to produce fabric for school dresses and later they can go for diversification,"the minister added. The state government at present requires six crore metres of suiting and shirting lengths to supply two sets of uniforms to students across the state. As of now, the cloth is procured from outside Bengal mainly from Gorakhpur in Uttar Pradesh.The state government will be setting up an integrated textile park at Ashokenagar in North 24-Parganas, Kalyani in Nadia and Raiganj in North Dinajpur. "We have made plans to set up six thread hubs (Suto Hub) in the state to ensure that weavers of Bengal get thread at the right price without the involvement of middlemen, We have also laid special emphasis on marketing of textile,"Sinha added.
Source: Millennium Post
As many as 351 stocks have been downgraded, while only 190 stocks have seen some upgrades between 10 May and 18 June The pressure on earnings of corporate India because of rising input costs was clearly visible in the Q4 performance. The pressure on earnings because of supply-side risks and inflation remain known and factored into earning estimates to a large extent, but the fresh risks to earnings are posed by the rising interest rate that can add to demand-side pressure and lead to more downgrades. Central banks around the world are raising interest rates to control inflation, which is leading to the fear of growth slowdown and recession in world economies. This can lead to further downgrades, feel analysts. As many as 351 stocks have been downgraded by the brokerages, while only 190 stocks have seen some upgrades, between 10 May and 18 June, according to data compiled by Mint Research Bureau from Trendline. Demand-side risk is real, said Aishvarya Dadheech, fund manager, Ambit Asset Management. Demand growth is bound to be adversely impacted with the steep rise in interest rates amid high inflation, Dadheech said. In the US, the Consumer Confidence index hit a decade low in May, indicating that demand will remain muted, Dadheech said. The probability of the US facing recession has increased as soaring inflation continues to batter household finances, impacting growth adversely, according to experts. “More downgrades on earnings are possible, especially in sectors such as metals, information technology, non-banking financial companies, oil marketing companies, building materials, and consumer discretionary, as markets start pricing in a higher probability of recession in the US coupled with high energy prices," said Nishit Master, portfolio manager, Axis Securities. The expected slowdown in the US and the EU can lead to increased demand-side risk, especially in metals and consumer products, which are exported like textiles, apart from a slowdown in IT spending, Master said. Also, the full impact of the rise in the prices of commodities will be visible in the coming quarters and it may further impact earnings growth, said analysts. “Nifty EPS is expected to grow around 17% in FY23 and 15% in FY24. Nifty EPS is expected to see further cuts of 3% to 4% post Q1FY23 and Q2FY23 results" Dadheech said. Other factors such as further rupee depreciation against the dollar, higher crude oil prices, higher than expected inflation, faster rate hike, and more downgrades are likely, analysts said. Mitul Shah, head of research at Reliance Securities, said that currency movement, commodity inflation, and the monsoon scenario, which is a key trigger for the rural economy, should be closely monitored to revise our estimate if needed. However, analysts said that despite multiple headwinds including rising rates, India still remains better placed than developed economies like the US. India’s earning growth is still high and it would remain more intact than that of the US and other developed markets, Shah said. India is in a better position than many economies and is likely to avoid stagflation because of its resilience in the face of multiple shocks because of strong macro fundamentals, Shah said. Indian corporations are used to high inflation and thus well placed to take remedial measures against high costs, Master said. One key reason is that the Indian economy still is domestic focused unlike China, Japan, or South Korea, which are predominantly export-driven economies that will get hit because of the US slowdown.
Source: Live Mint
A sea express route between Qingdao in Japan's Osaka and east China's Shandong Province opened recently after the Regional Comprehensive Economic Partnership Agreement (RCEP) came into effect earlier this year for members, including the two countries. The development comes seven years after the closure of a similar route between Qingdao and Japan's Shimonoseki. Vessels can be directly boarded with loading equipment such as forklifts and trucks, with shipping speed almost twice as normal through this route, and as a result, the entire voyage can be shortened by 24 hours. Offering advantages in shipping time and costs, the new express route, together with the city's international airport, will help Qingdao build a foreign trade system that combines sea and air transport, according to official Chinese media.
Source: Fibre2 Fashion
Demand for shipping space is still high, but perhaps not reflecting falling consumer demand. When will it catch up? A webinar from the Journal of Commerce last week explored the current state of the supply chain, focusing on ocean freight shipping and consumer demand. JOC Executive Editor Mark Szakonyi moderated the session and was joined by supply experts Dan Gardner, president of Trade Facilitators Inc., and Steve Hughes, CEO of automotive supply chain firm HCS International.
Key takeaways: • Major importers are again seeing an increase in freight costs, and they’ve got to pass those on. Another wave of inflation is coming and the pressure on the consumer will increase. • ‘Just-in-time’ buying has become ‘just-in-case’. Importers are increasing their inventories more than they used to. Target and Walmart have implemented significant markdowns to get rid of extra inventory. • Inventory numbers are up 15% from last April. When the risk of a loss of sales is greater than potential overhang, which seems to be the case right now, retailers will always order more. • Demand for shipping space is still high but perhaps not reflecting falling consumer demand. When will it catch up? Possibly by the beginning of 2023. • Gardner predicts eastbound ocean freight rates will decline sharply in early 2023. • The backlash against carriers could increase, as they’ve got everyone’s attention with the amount of money they’re making. Legislation curbing them could ramp up. • A ‘hard’ pullback from consumers may be seen early 2023. • Tariffs being removed won’t necessarily bring down prices. “The consumer calls the shots with their wallet,” Gardner said on tariffs. “If a consumer is willing to pay X price, and I’m the importer and I all of a sudden get a 25% break, am I automatically going to lower prices? No. I’m going to try to get back what I lost over the past four years. If the market demands I lower my price, then I will. But that’s not a guarantee.”
Source: Home Textiles Today
The container handling volume at China's ports during the first five months of 2022 reached 116.48 million twenty-foot equivalent units (TEUs), recording a rise of 2.3 per cent compared to last year, according to data released by the ministry of transport. The container throughput in the country recorded a stable expansion during this period. The total cargo throughput in China was 6.25 billion tonnes during January-May this year, down 0.5 per cent compared to the same period last year. In the month of May, ports in China handled over 1.34 billion tonnes of cargo, while the container throughput was 25.43 million TEUs, Chinese media reports said quoting the data from the ministry.
Source: Fibre2 Fashion
China Chamber of Commerce for Import and Export of Textiles (CCCT) has signed a strategic cooperation agreement with the Swiss Textile Testing Institute (TESTEX) to promote the high-quality development of the industry. At present, sustainable development has become a global consensus, which profoundly affects the competitive advantage and value logic of the industry. On February 23, 2022, the European Commission proposed the Corporate Sustainability Due Diligence, in which the manufacturing and wholesale trade of textiles and garment are important fields. Multinationals are also channeling green ideas through supply chain management. The Chinese government announced in 2021 that it would achieve carbon peak by 2030 and carbon neutral by 2060, while the textile and garment industry has become one of the key areas of concern. At the same time, with the continuous strengthening of consumers; awareness of environmental protection, green consumption and sustainable fashion have gradually become a trend, and green development is changing from a cost constraint to a value source. Textile and garment industry is under pressure from both inside and outside, and transformation and upgrading is imminent, TESTEX said in a press release. TESTEX was founded in 1846 and is headquartered in Zurich. With over 30 branches worldwide, TESTEX focuses on serving the textile industry. It is the official representative of the OEKO-TEX Association in China. As one of the most important members of OEKOTEX, TESTEX is committed to providing Chinese enterprises with the most professional certification services for ecological textile products and sustainable textile production. In order to effectively deal with green trade barriers in European and American markets, promote green and sustainable development, and help Chinese textile and garment products and brands to establish a fashion, green and sustainable image in the international market. CCCT signed a strategic cooperation agreement with TESTEX Swiss Textile Testing Institute to cooperate to enhance the global competitiveness of Chinese textile and garment products. From now on, CCCT and TESTEX will launch OEKO-TEX testing and certification services for all member enterprises. Member enterprises can obtain OEKO-TEX related certifications through CCCT. Compared with other channels in the market, this service highlights efficiency, convenience and accuracy which greatly facilitates members to obtain OEKO-TEX certifications. The service includes OEKO-TEX certifications like green textile passport to European: STANDARD 100 by OEKO-TEX; traceable product label for transparent supply chain: MADE IN GREEN by OEKO-TEX; eco natural leather certification: LEATHER STANDARD by OEKO-TEX; eco dyes and chemicals certification: ECO PASSPORT by OEKO-TEX and sustainable textile production certification: STeP by OEKO-TEX. In addition, it also includes UV protection certification: UV STANDARD 801; CE certification for PPE, Single test for textiles and Round Robin tests, etc.
Source: Fibre2 Fashion
