Indo Count Industries’ Kailash R Lalpuria explained the Economic Times as how the Indian fabric industry could stand to gain from a slowdown in China.
Eyeing to expand market share
Lalpuria shrugged off the concerns that the company is losing market share on the exports side. Rather, he asserted that the company is on track to boost its market share and the growth prospects are bright both domestically and outside. Lalpuria agreed that India needs to rationalize duties on manmade fibre across seven categories to create a level playing field against competition from outside. However, he noted that the cotton textile growth for India is impressive. Lalpuria said that rationalized duties and improved productivity would help Indian textile sector to claim a substantial market share globally.
Raw material and labour costs need to be addressed
He told ET that South Asia and Southeast Asia are two large suppliers of the global textile need. He suggested that India should attract more investments in the apparel segment to boost its competitiveness on the global platform. Meanwhile, Lalpuria pointed that the Indian goods will get access to Europe and other markets once the FTAs are signed. Given China’s focus to improve its home consumption and tone down its exports, Lalpuria sees an array of opportunities lined up for Indian traders. He said that India’s textile exports can jump substantially if the government and industry take right steps in this direction. Lalpuria underscored the need for India to address its raw material and labour costs issues to be able to capture the additional export share. He added that labour reforms need to be in place to enable industries to gain sizeable export market share. Lalpuria highlighted that the large players in the industry are leveraging from the size of their value chain. Hence, large-scale operations will solve cost issues to a greater extent, as per him. In the end, Lalpuria is more than confident that the right regulations and policies will take the industry ahead.
SOURCE: India Infoline
Garment manufacturers benefitting from export incentive schemes of the government need to watch out. The US has demanded that all export subsidies, including the popular interest subvention scheme provided to the sector, be withdrawn as the phase out period for the incentives allowed by the World Trade Organisation (WTO) was over last year. New Delhi, however, has challenged the claim and has said that as per its calculations, it has two more years to remove the subsidies. “The US, in a recent meeting on subsidies at the WTO, argued that the WTO Secretariat released calculations seven years ago showing that India had reached export competitiveness in textile and clothing no later than 2007. It had eight years to phase out its subsidies and the period is already over,” an official at the WTO told BusinessLine. It further said that the US was concerned about reports from India suggesting New Delhi was considering new export subsidies for its textile and apparel industry and was planning to prolong the phase-out of existing export subsidies for the sector. “We have not broken any of our commitments. India has already eliminated a number of export subsidy programs in the textile and apparel sector, and others are being removed or rationalised,” a Commerce Ministry official said. While the US cannot do much in terms of forcing India to remove its subsidies to garments producers immediately, as the dispute resolution mechanism is time consuming, such interventions can keep the pressure high on India to withdraw all support to exporters by 2018. For instance, the interest subvention scheme for exporters (which also includes garments) is for five years, till 2019-20, but the US has already started creating a noise about it.
Raises concern
At the meeting, the US said that it was highly concerned about recent press reports which indicated the Indian government had extended yet another program providing preferential interest rates for exporter and increased the preferential rates for the next five years. “The interest subvention scheme has been provided to exporters to partly compensate them for the high cost of credit in the country compared to competing countries. It does not distort trade,” a Commerce Ministry official said. India’s representative at the meeting pointed out that since the country provided its own information of export competitiveness in 2010, it considered the elimination of the export subsidies would start from 2018. The representative added that India was committed to meeting its Subsidies and Countervailing Measures Agreement obligations but it was still waiting for a clarification of obligations under the Agreement, particularly in regards to product coverage and tariff lines. India’s garments exports were to the tune Rs. 1.11 lakh crore in 2015-16, which was 1 per cent higher than the previous year, according to industry estimates. The sector provides employment to over 45 million people directly and 60 million people indirectly.
SOURCE: The Hindu Business Line
Technotex India Exhibition, organised in Mumbai recently, had a Taiwan pavilion featuring more than 19 companies. They projected high-end and innovative technical, composites, performance and industrial textiles and accessories. Taiwan Textile Federation and Bureau of Foreign Trade with Taiwan Composites Association (TCA) made their presence felt for the fourth time, reflecting India’s high potential as a market. Sean Tsai, overseas market development of Taiwan Textile Federation, shared his views with Fibre2Fashion.com
What is the growth percentage observed in the Taiwanese technical textile and composites industry?
In 2015, the Taiwanese technical textile and composites industry reported 0.4 per cent growth rate in exports.
What share of the Indian market is already captured by the Taiwanese companies? What future opportunities does the country hold for them?
The total textile export to India is worth close to US$ 225 million. The strength of Taiwanese textile companies is innovations in technology, design and marketing. Technology is supported by sufficient talent in the textile and related industries, such as petro-chemicals, plastic and machinery. Taiwanese design ability allows quick, timely responses to global market trends.
Please share details of global demand for Taiwan-manufactured technical textiles and composites.
Total export value of Taiwan-manufactured technical textiles and composites in 2015 was US$ 11 billion.
What applications of Taiwan's technical textiles and composites can benefit Indian industries?
Taiwan is seeking supply-chain cooperation from India. Taiwan can help Indian manufacturers add value to final products. This is similar to what we did with China over the past 10 years.
What notable differences do you find in the Taiwanese industry, compared to India?
Technical yarns and quality TPU are the notable differences in the Taiwanese industry.
What cutting-edge technologies, benefitting the Indian technical textile and composites industry, were featured at the Taiwan pavilion?
The cutting-edge technologies featured at Technotex 2016 were:
1. Technical Yarns: Nylon 6/66 which enables Indian mills to develop high class clothing, in terms of strength, feel etc.
2. Shoe or bag or luggage materials including fabrics, TPU and accessories.
3. Nonwovens: High quality nonwoven fabric will support Indian industry to develop high level of nonwoven products like diapers and sanitary napkins.
4. Composites break into fibreglass fabrics, FRP and technology or equipment.
What was the total footfall to your pavilion this year?
According to our statics, we had a total of 1,100 visits this year.
What major tie-ups or agreements did you do at the pavilion?
We got some good leads, and we are going to follow up on them.
Which new companies have been added to your exhibitor’s list?
The following companies were added this time against last time:
1. Ding Zing Advanced Materials Incorporation
2. Formosan Rubber Group Inc
3. Immense Prosperous Ent. Co. Ltd
4. Jhih Cheng Nonwoven Co. Ltd
5. Kang Na Hsiung Enterprise Co. Ltd
6. Hua Jin FRP CO. Ltd
7. Forever Energy Technology Co. Ltd
8. Tomlong Techstile Corp
9. Wah Hong Industrial Corp
SOURCE: Fibre2fashion
The government will set up a panel to implement the trade facilitation agreement (TFA) of the World Trade Organisation (WTO), which envisages faster clearances and reduction of red tape at the borders to boost exports and imports. India formally endorsed the TFA at the WTO last month. Chairing the consultative committee meeting on ‘Implementation of TFA’ here on Monday, commerce minister Nirmala Sitharaman said while India has made rapid strides in streamlining processes on the line of international best practices, it needs to ensure speedy legislation in certain areas so that there are visible beneficial outcomes. The objectives of the TFA are in consonance with India’s ease of doing business initiatives, she said. The TFA is projected to cut costs of trade by an average 14.5% and the impact could be greater than elimination of all remaining tariffs, according to WTO director-general Roberto Azevêdo. The TFA in goods was endorsed by the WTO in Bali during 2013. The proposed national committee on trade facilitation will domestically coordinate and implement the TFA, the commerce ministry said on Tuesday. The NCTF would institutionalise the coordination mechanism in such a manner that more than 35 departments, private players and state governments who have international borders are on the same page so far as trade facilitation is concerned, the ministry said. Dashboard on trade data launched Sitharaman on Tuesday launched a dashboard on exim analytics, as part of her ministry’s efforts to provide easier access to data for meaningful analysis of the country’s trade performance. The dashboard on exim analystics “represents data graphically exposing patterns, trends and co-relations that might go undetected in text-based formats”, the ministry said. The dashboard uses the merchandise trade data being provided by the Directorate General of Commercial Intelligence and Statistics.
SOURCE: The Financial Express
Government will set up a trade facilitation panel for implementing a WTO pact which aims at easing customs norms for faster clearance of goods to boost exports. India formally ratified WTO's Trade Facilitation Agreement (TFA) last month, a move which would supplement the ongoing reforms to bring in simplification and enhanced transparency in cross border trade in goods. "India has initiated the process to set-up a National Committee on Trade Facilitation (NCTF) to domestically coordinate and implement the TFA," the Commerce Ministry said in a statement. The NCTF would institutionalise the co-ordination mechanism in such a manner that the 35 plus departments, private players and state governments that have international borders are on the same page as far as the trade facilitation is concerned, it said.
Addressing the consultative committee meeting attached to her ministry on 'Implementation of TFA' here yesterday; Commerce Minister Nirmala Sitharaman said the pact envisages faster clearances and reduction of red-tapism at the borders and would help in the ease of doing business. She said ratification of the TFA is bound to change Indian trade and would bring more transparency in trade process. Now the best trade practices worldwide would be shared among the member countries, she added. "While we have made rapid strides in streamlining our processes on the line of international best practices, in several areas, we need to ensure speedy legislation so that there are visible beneficial outcomes," the minister said.
Industry and its various associations would be associated in the consultation process while implementing the different provisions of the TFA, she said. Through trade facilitation, WTO member countries would seek to simplify trade procedures and help promote cross border trade, bring greater predictability to traders and help improve the overall climate for trade and investment. She said that TFA is supposed to enable domestic manufacturers, particularly small and medium enterprises, connect more easily to regional and global value chains. TFA contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also sets-out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues. The trade facilitation pact is divided into three parts - section 1 contains provisions on simplification of border clearance procedures and adoption of new transparency measures and consists of 12 articles. These articles extend to several agencies such as customs, border control, shipping, plant and animal quarantine. All of this requires inter-ministerial cooperation and coordination.
SOURCE: The Economic Times
As part of the initiative of the Ministry of Commerce & Industry to provide easy access to the public on export and import trends of India the Minister of State for Commerce & Industry (I/C) Smt. Nirmala Sitharaman launched here today a dashboard on EXIM Analytics. This is a portal developed by the Directorate General of Commercial Intelligence and Statistics, at the instance of the Ministry. These simple to use Analytics Dashboards would facilitate the general public to have an accurate perspective on the facts around the trade performance of India. This endeavor of the Ministry is also in tune with the principle of “Government at the doorstep”.
Given the high priority accorded to Transparency in Governance by the new Government, the dashboard on export – import will enable small and upcoming businessmen to foray into global trade based on reliable information directly accessible through Government sources. EXIM Analytics represents data graphically exposing patterns, trends and correlations that might go undetected in text-based data. The dashboard gives a graphical collection of exports and imports from India; e.g., the Export turnover of the country – how it performs over time? What are the export destinations? What items are being exported? Which are the ports – inland, sea or airports from which the exports are taking place?
The user friendly Dashboard developed by the Ministry enables the user to interactively query the information to investigate facts at more detailed level; e.g. starting from the first insight of overall exports in a fiscal year, user can proceed to query what are the top commodities being exported to a particular market, say, USA and then choose a specific commodity, look at its trend, from which ports it is being exported and so on.
The EXIM Analytics dashboard launched today enables analysis of trade information of India relating to: Export Overview: provides analysis of data by time period, export destinations and ports of export. Import Overview: provides analysis of data by time period, countries of Import and ports of import. Balance of Trade: The Balance of Trade (BOT) can be analysed over time periods for different Regions, Countries and Ports. The data for analysis is presented as a month’s aggregate at its lowest granularity, namely, at the level of country, commodity, port etc. Presently Monthly data from April 2014 till January 2016 has been provided. Progressively additional dashboards and data for older period will be added.
SOURCE: PIB
Malaysia's Minister of International Trade and Industry, Dato Sri Mustapa Mohamed, at a special session on 'Business Opportunities in Malaysia' organized by FICCI jointly with Malaysian High Commission in India, Ministry of International Trade and Industry (MITI) - Malaysia, Malaysian Investment Development Authority (MIDA) and Malaysia External Trade Development Corporation (MATRADE) said that Malaysia can act as the gateway to ASEAN market for India. Malaysia and India can explore opportunities in the smart manufacturing/factory concept and explore the Principal Hub scheme for Indian companies with a global presence. Indian companies should look ahead for expansion in Malaysia to strengthen their presence in the region including M&As. An ecosystem approach must be adopted to strengthen complementarily between Malaysian and Indian companies. Mohamed said that there were opportunities in manufacturing such as textiles and textile products, chemicals and chemical products, pharmaceutical, and machinery & equipment, that could be explored and in services as well such as healthcare, education, centre of excellence and tourism. The minister further said that India was Malaysia's 11th biggest trading partner in 2015. To further deepen the relationship between the two countries a Joint Statement Malaysia-India Strategic Partnership was issued in 2015. The joint statement reaffirmed the commitment to further strengthen bilateral trade and investment; promote joint collaboration in infrastructure and construction sector; encourage public and private sector companies to pro-actively look at large investment opportunities in each other's country; and continue to promote greater engagement by Indian IT companies in Malaysia.
Datuk Naimun Ashakli, High Commissioner of Malaysia to India, said that Malaysia now has a diversified economic structure, which creates the foundation for future growth. The trade between India and Malaysia was USD 12 billion in 2015 and Malaysia now aspires to take this figure to USD 15 billion. There has been a four-fold increase in trade between the two countries. Malaysia with its competitive and positive business environment attracts companies. Dr. A Didar Singh, Secretary General, FICCI, said that there were three key areas - Digital Economy including E-Commerce; Co-manufacturing; and Start ups - where FICCI would like to work with Malaysian Government and businesses. He added that Indian companies played an important role in Malaysia's business environment, with companies setting up manufacturing and services activities in the country. In 2015, a total of 130 manufacturing projects with Indian interest were implemented.
SOURCE: Yarns&Fibers
Hoping to push up India’s ranking in the Ease of Doing Business, the government has set itself a deadline of December this year to identify and roll out more investor-friendly measures. The focus this time, according to various sources, will be to look at medium-term measures such as regulatory clearances and legislative amendments that will boost India’s score on the Ease of Doing Business index, compiled by the World Bank. “A number of steps have already been taken to boost India’s rankings and a lot of them were those that could be done immediately. The focus now will be on the next step forward, many of which may require more time,” said a person familiar with the development, adding that nodal ministries have been asked to work on this plan of action. Sources said the Prime Minister’s Office is also regularly monitoring the progress on implementation of these measures and is also taking frequent updates in the monthly PRAGATI meetings.
Showing improvement
India had ranked 130 out of 189 countries in the Ease of Doing Business Report, 2016 moving up four notches from the recalculated rank of 134 in 2015. India’s rank has improved in ‘starting a business’, ‘dealing with construction permit’ and ‘getting electricity’ indicators. However, it is much lower than Prime Minister Narendra Modi’s ambitious goal of notching up India’s rankings to the top 50 in the next two years. To this end, Finance Minister Arun Jaitley had in the Union Budget 2016-17 also announced a number of initiatives for ease of doing business, including IT-enabled government process, amendments to the Companies’ Act for an enabling environment for start-ups and registration of firms in a day. He also announced the new bilateral investment treaties, liberalisation of foreign direct investment, as well as minor tax re-jigs for promoting ease of doing business for foreign as well as domestic investors. Official sources said that a big push to India’s rankings in the global survey will also come after the passage of the Insolvency and Bankruptcy Code, 2015 that will make it easier for companies to wind up. This has been one of the key sticking points for India in the rankings “The Budget proposals will also be taken up for implementation at the earliest,” said a source. According to an assessment by the Department of Industrial Policy and Promotion, over 30 steps have been already taken by various ministries and departments to cut down on clearances and improve the business environment. Separately, States are also being assessed on implementation of reform measures.
SOURCE: The Hindu Business Line
India is expected to grow at 7.5 per cent in FY17, underpinned by strong domestic consumption, which has benefited from lower energy prices, says the International Monetary Fund (IMF) in its Regional Economic Outlook: Asia and Pacific. The government's push to boost capital spending could help crowd in private sector investments, which will help broad-base the recovery, it added. The IMF lowered its growth forecast for the Asia-Pacific region to 5.3 per cent in 2016-17, marginally lower than the previous estimate of 5.4 per cent. The downgrade reflects the sluggish nature of global recovery, which suggests that export growth is likely to be muted. As such growth in the region is likely to be driven largely by domestic consumption demand aided by lower commodity prices. The aggregate growth numbers might be adversely affected as the IMF predicts the Chinese and Japanese economies to slow sharply over the next two years.
Particularly worrying is the slowing down of the Chinese economy, especially economies which are closely integrated with the Chinese supply chains. But those who are exposed to China's consumption demand may benefit, as the country attempts to rebalance its economy towards domestic consumption. "Asia remains the most dynamic part of the global economy but is facing severe headwinds from a still weak global recovery, slowing global trade, and the short-term impact of China's growth transition," said the IMF. IMF retains India's growth forecast at 7.5% for FY17 While India will remain as the fastest-growing economy in the world, there are several reasons to worry. For one, as the IMF points out, weak exports, courtesy sluggish global growth and sluggish credit growth, in part a consequence of stressed bank and corporate sector balance sheets "will continue to weigh on the economy." With the Reserve Bank of India forcing banks to recognise the true extent of bad loans in the system, bank profits, especially in the public sector unit (PSU) segment, have come under stress, as they make provisions to deal with the bad loans. This puts pressure on PSU banks to raise capital. Though the government has allocated Rs 25,000 crore in the Budget for this purpose, analysts believe this may simply not be enough. In fact, even the IMF warns that despite exceeding regulatory requirements, Tier-I capital levels are relatively lower in India and China.
SOURCE: The Business Standard
An effort will be made to restart talks on the India-European Union (EU) Broad-based Trade and Investment Agreement (BTIA) on the sidelines of the G-20 Summit to be held in China in September. Geoffrey Van Orden (ECR, United Kingdom), Chair of European Parliament Delegation for relations with India, said: “Talks on the BTIA will take place in September on the sidelines of the G20 meeting ...We want progress on the free trade agreement. India is potentially the fastest growing emerging economy. There’s a space for everybody. It’s not that if foreign investments, foreign businesses come in it will shove out domestic business. I see no reasons why we should not be moving on this.”
Talks on the BTIA were stalled in 2013. However, during the EU-India Summit held here on March 30, both sides agreed to “further” the talks, but a formal date for the next official round of negotiations has not been finalised yet. The main reasons for talks getting stalled were because in some of the areas the ambitions “are a bit too much” and there could be some merit in getting lesser than expected, Orden said. The Minister of Commerce and Industry Nirmala Sitharaman has also written a letter to her counterpart EU Trade Cecilia Malmström seeking an official date for negotiations. But, there has been no response from the latter yet, sources told BusinessLine.
Focus on TTIP
Officials in the Ministry of Commerce and Industry believe that the EU is now putting greater emphasis and channelising all its energies into negotiating the Transatlantic Trade and Investment Partnership (TTIP) with the US, which is taking most of its time. According to Orden, the EU is now likely to appoint a new chief negotiator mainly to negotiate the BTIA with India. “A lot of effort is going into TTIP. For a long time we have the same negotiator responsible for all of these agreements ... I do think the capacity to deal with several major trade agreements may be lacking. I understand that the arrangement now is slightly different,” he added.
On the issue of Brexit, a referendum for which is slated to take place on June 23, Orden said if this happens it would bring “seismic shock to the European Union” and put a question mark on EU’s relations with other countries. “That's one of the concerns people in Brussels have. There would be lot of questions on the EU’s relationship with other countries,” he added.
‘Strong anchor needed’
Shada Islam, Director, Policy Friends of Europe, a Brussels-based think tank, said: “Although the bilateral trade between India and EU has touched almost €100 billion, we need a strong anchor for carrying on a robust trading relationship, which is now lacking. If the BTIA goes through, we will be able to move beyond just trade and become true strategic partners.”
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$ 43.05 per barrel (bbl) on 03.05.2016. This was lower than the price of US$ 44.59 per bbl on previous publishing day of 02.05.2016.
In rupee terms, the price of Indian Basket decreased to Rs. 2852.72 per bbl on 03.05.2016 as compared to Rs. 2958.23 per bbl on 02.05.2016. Rupee closed stronger at Rs 66.27 per US$ on 03.05.2016 as against Rs 66.34 per US$ on 02.05.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on May 03, 2016 (Previous trading day i.e. 02.05.2016) |
Pricing Fortnight for 01.05.2016 (13 Apr to 27 Apr, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
43.05 (44.59) |
41.08 |
|
(Rs/bbl |
2852.72 (2958.23) |
2732.23 |
|
|
Exchange Rate |
(Rs/$) |
66.27 (66.34) |
66.51 |
SOURCE: PIB
Vietnam's apparel and textile industry is calling on the country's government to revise its "out of date" 2020 development plan with a vision that will match the country's progress and improve its competitiveness. The current plan, which was approved in April 2014, forecast Vietnam's garment exports reaching between US$20bn and $25bn by 2020. In 2015 they reached $27.5bn thanks to businesses taking advantage of potential opportunities of trade agreements such as the Trans- Pacific Partnership (TPP), the Vietnam-Korea Free Trade Agreement (VKFTA) and the Vietnam-EU Free Trade Agreement (EVFTA).
According to the Vietnam Textile and Apparel Association (VITAS), based on the sector's current growth, export turnover is expected to reach between $40bn and $50bn by 2020. Speaking at an Enterprise Vietnam conference late last week, Vu Duc Giang, chairman of VITAS, suggested the government adjusts its planning for the garment and textile sector to 2035-2040. He told delegates the current plan was "so far out of date already" and the government needs to help the industry progress in line with the country's economic development. He also proposed the government initiate policies to attract investments in the textile sector, including high-quality fibre production and dyeing projects in industrial parks or key economic zones. At present, the sector relies on importing high-quality fibre for manufacturing export products, at a cost of $15bn in 2015.
Referring to the current competitive environment, Giang said that in the first quarter of 2016 alone, a number of customers moved orders to Myanmar and Laos. And with the prospect of losing more orders to other countries, Giang proposed a change to the policy on minimum wage, such as the lowering of insurance rates to attract more business. "We need to adjust this solution, otherwise we will not compete with other countries in the region," he said. Giang also said the government needed to invest in infrastructure development as well as create incentives for investors, with special attention to production units, textile fibre and threads, and dyeing. VITAS suggested there should be greater encouragement for investment in international quality waste water treatment plants.
SOURCE: Just Style
Zimbabwean local industry due to the influx of cheaper products from Asia has been suffering a serious downturn and many companies have been driven out of business. The companies cannot compete because their cost structures are making their products very expensive. As a result, the Zimbabwe Clothing Manufactures Associations is lobbying Government to impose a ban on finished clothes which is hurting their operations. Industry players said that they were facing unfair competition from imported products mainly from China and Dubai. Retailers such as Edgars and Power Sales are also importing and this has to some extent caused a degree of tension in the industry. According to analysts, with the domestic textile industry facing challenges, cheap imports will continue finding their way into the local market. In June last year, Government banned the importation of second hand clothes and shoes, as part of economy wide measures to facilitate the recovery of domestic industry. However, second hand clothes continue finding their way into the country. Zimbabwe is spending millions of dollars on importing clothes. At its peak, the industry employed 35 000 but now only boasts a small complement of less than of 5 000 workers, according to reports. Finance and Economic Development Minister Patrick Chinamasa said that the emergence of vending of cheap, low quality and smuggled imports were choking both producers and retailers. Some clothing industry players however said the the ban on imports will only encourage smuggling and Government should instead, impose appropriate duties. Zimbabwe borders are very porous and banning importation of clothes will only encourage smuggling.
SOURCE: Yarns&Fibers
Textile and Garment Manufacturers Association of Tanzania (TEGAMAT) to develop and support consuming industries urged the government to execute the Cotton to Clothing Strategy (2016-2020). The strategy advocates construction of local industry, especially the agro-processors. TEGAMAT Vice President Sylvester Kazi in Dar es Salaam, speaking at the official launch of leather, sunflower oil, cotton to clothing strategies and value chain roadmap, said that the government should use the strategy to implement the second five year development plan. The strategy is a fit all to the current industry policies of the SIDP 1996, IIDS 2012 and the EAC Industrialisation Policy 2014. The common objectives of the policies are to fight poverty through increased productivity of cotton and its value addition to the point of making garments. Mr Kazi said the objective can be achieved through the removal of administrative burdens, enhancing skills development, improving access to low cost financing and attracting investors, both local and foreign. Tanzania to develop deep relation with the Indian Government has signed numerous bilateral agreements and MoUs including; the South-South Cooperation, Agreement on a Bilateral Investment Promotion and Protection Agreement ( BIPPA).
SOURCE: Yarns&Fibers
Central Chairman of Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), Sheikh Mohammad Shafiq has said the high cost of doing business has started hitting the textile industry severely, which is evident from the growing number of factory closures in the sector. He said that the government has set export target of $35 billion to be achieved during next three years through Strategic Trade Policy Framework (STPF) 2015-2018 and improvement in export competitiveness, while on the other hand export is continuously declining, and break the highest decline record of 32 years.
This decline is only for the reason of high cost of production due to increase in energy costs as compared to our competitive countries and exporters are unable to compete with their competitors. The tariff rates of electricity for industry and commercial concerns are considerably higher in Pakistan than competing countries basically due to over 50 percent line losses and theft. He further said that Oil prices declined internationally but in Pakistan industry is not getting relief. He said in order to enhance the export we need the following immediate measures, which we have already submitted to the concern ministry. Zero-rated regime announced by the PM right now rather than from July 2016, release of stuck up refund payments against sales tax, duty drawback and drawback on local taxes and levies (DLTL), no payment no refund system, tariff of electricity, gas and water for export sectors should be brought down and incentive on export as per our competitors.
SOURCE: The Business Recorder
Indonesian negotiators must press harder to make progress on the European Union (EU)-Indonesia free-trade agreement or textile manufacturers risk losing market share to neighbouring competitors including Vietnam, according to the Indonesian Textile Association (API - Asosiasi Pertekstilan Indonesia). Chairman Ade Sudrajat has revealed that Indonesian textile manufacturers supported an agreement that could increase access to European markets. “Businesses need the confidence of more opportunities in Europe. Foreign direct investment (FDI) is important, but the proposed FTA is also very important for the Indonesian people as it will provide jobs,” he says, adding that industry had been frustrated by slow progress in discussions to date. Talks for the projected EU-Indonesia Comprehensive Economic Partnership Agreement (CEPA) have been under way since 2009, when the EU signed a co-operation agreement with Indonesia that included a commitment to deepen trade and investment ties.
Meanwhile, regional competitor Vietnam has not only struck a free-trade deal with the EU (talks were competed last December), but has become a signatory to the Trans-Pacific Partnership agreement, while Indonesia is still talking about negotiating entry to that deal. The good news is that the EU seems to want better trading links with Indonesia, at least officially: European Commission documents identified Indonesia as a priority partner for free-trade talks in the 2015 EU trade policy. The country enjoys preferential trade conditions under the EU’s Generalised System of Preferences (GSP) for developing nations. And during an April 2016 visit, EU foreign affairs high representative Federica Mogherini underlined the EU desire to increase trade and strategic relations with Indonesia by building on the 2009 agreement. The European textile sector is monitoring the talks, with the trade and industry manager of European Textiles Association Euratex Isabelle Weiler saying the association had not yet taken a position on the proposed EU-Indonesia FTA. “As with Vietnam, we will make sure the agreement will bring benefits to our companies, keeping in mind the preferential treatment granted to Indonesia through the GSP scheme, as well as our trade deficit with this country,” she says.
Brussels-based Textile and Clothing Information Centre (CITH) data shows that European imports of textiles from Indonesia rose just 0.7% year-on-year to a value of €437m in 2015, while textile imports from Vietnam rose 13% to €365m in the same period. Exports in 2015 of European textiles to Indonesia on the other hand rose 26.2% to a value of €213m. Indonesia is currently the 14th largest textiles supplier to the European Union, with albeit modest trade compared with the EU’s top four textile suppliers – China, Turkey, India and Pakistan. Imports from these four countries saw growth of between 5% and 11% last year, according to CITH data. This could-do-better verdict has been echoed by economists. A March (2016) report by World Bank analysts predicted that Indonesia will struggle to maintain its growth trajectory and sufficient job creation for its young and expanding workforce, if more private investment is not forthcoming. But the country does have latent strengths: it has the largest population and economy in south-east Asia with more than 250 million citizens and GDP growth forecast to reach 5.1% this year, according to World Bank data. Indonesia was also the recipient of US$23bn of FDI in 2014, according to the UNCTAD (UN Conference on Trade and Development) World Investment Report 2015, a 20% growth on the previous year.
SOURCE: The CCF Group
The sixth edition of Denimsandjeans.com Bangladesh to take place in Dhaka under the theme Vintage Recall, after launching the first denim show in Bangladesh, they have in the past three years successfully managed to bring the International Mills to a platform where they could watch the Denim Industry of Bangladesh. The objective behind this show is to showcase the importance of Bangladesh in the global denim industry . The 5th edition which ended on March 3rd ,2016 at Dhaka, received a very positive response from all the exhibitors as well as from the visitors. Denimsandjeans is not limited to being a trade show but is a denim event where a number of activities take place and bring together the global denim fraternity where they can share their views , ideas , new technologies , business propositions etc. and enable a closer bonding among them. This time the live video conferences by reputed denim designer Mr. Leopoldo Durante and Owner of Pizarro Laundries – Mr. Vasco Pizzaro , will not only set a new benchmark but also show perfect blend of quality and technology together.
From Denim Playground Dhaka to Denim Hi-Fashion , they have always kept experimenting with new themes with every edition and this time since the entire denim fraternity is celebrating 100Years of collaboration of Cone Mill with Levis , therefore in a mark of respect , Vintage Recall is a little tribute to the vintage nature of denim which is expressing itself through repeated forays by designers into the past in an effort to recreate it. The trend is getting stronger and the ORIGINALITY of denim is getting vogue again . The Vintage Recall not only talks about the Vintage era but it will also talk as to why they need to go back to traditional method of production in order to achieve the Sustainability in an absolute term. The trade show shall be held on October 5-6,2016 at Radisson Blue , Dhaka.
SOURCE: Yarns&Fibers
British manufacturing output unexpectedly shrank to hit its lowest level in three years in April, a survey showed on Tuesday, suggesting the economy will slow further before next month's in-out European Union membership referendum. With uncertainty surrounding the June 23 vote, factories are also struggling with a weaker global economy and a slowdown in the oil and gas industry, a major customer. Sterling fell and gilt futures rose after the Markit/CIPS manufacturing Purchasing Managers' Index fell to 49.2 from 50.7 in March, the first time since March 2013 it has fallen below the 50 mark that separates expansion from contraction. It was below even the lowest forecast in a Reuters poll of economists.
SOURCE: The Business Standard
