|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1006.64 |
USD/Ton |
-0.38% |
5/30/2016 |
|
VSF |
2052.87 |
USD/Ton |
0.07% |
5/30/2016 |
|
ASF |
1918.85 |
USD/Ton |
0% |
5/30/2016 |
|
Polyester POY |
967.04 |
USD/Ton |
-0.78% |
5/30/2016 |
|
Nylon FDY |
2223.43 |
USD/Ton |
0% |
5/30/2016 |
|
40D Spandex |
4355.49 |
USD/Ton |
0% |
5/30/2016 |
|
Nylon DTY |
2451.87 |
USD/Ton |
0% |
5/30/2016 |
|
Viscose Long Filament |
5678.89 |
USD/Ton |
0% |
5/30/2016 |
|
Polyester DTY |
1233.55 |
USD/Ton |
-0.61% |
5/30/2016 |
|
Nylon POY |
2063.53 |
USD/Ton |
0% |
5/30/2016 |
|
Acrylic Top 3D |
2093.99 |
USD/Ton |
0% |
5/30/2016 |
|
Polyester FDY |
1096.49 |
USD/Ton |
-0.41% |
5/30/2016 |
|
10S OE Cotton Yarn |
1734.58 |
USD/Ton |
0% |
5/30/2016 |
|
32S Cotton Carded Yarn |
2949.86 |
USD/Ton |
0.10% |
5/30/2016 |
|
40S Cotton Combed Yarn |
3523.99 |
USD/Ton |
-0.04% |
5/30/2016 |
|
30S Spun Rayon Yarn |
2771.68 |
USD/Ton |
0% |
5/30/2016 |
|
32S Polyester Yarn |
1678.24 |
USD/Ton |
-0.18% |
5/30/2016 |
|
45S T/C Yarn |
2436.64 |
USD/Ton |
0% |
5/30/2016 |
|
45S Polyester Yarn |
1812.25 |
USD/Ton |
0% |
5/30/2016 |
|
T/C Yarn 65/35 32S |
2132.06 |
USD/Ton |
0% |
5/30/2016 |
|
40S Rayon Yarn |
2923.97 |
USD/Ton |
0% |
5/30/2016 |
|
T/R Yarn 65/35 32S |
2223.43 |
USD/Ton |
0% |
5/30/2016 |
|
10S Denim Fabric |
1.35 |
USD/Meter |
0% |
5/30/2016 |
|
32S Twill Fabric |
0.81 |
USD/Meter |
0% |
5/30/2016 |
|
40S Combed Poplin |
1.16 |
USD/Meter |
0% |
5/30/2016 |
|
30S Rayon Fabric |
0.68 |
USD/Meter |
0% |
5/30/2016 |
|
45S T/C Fabric |
0.68 |
USD/Meter |
0% |
5/30/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15229 USD dtd. 30/05/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
100% man-made fibre yarns export from India was valued at US$16.95 million in April 2016, up 10.7% YoY while volumes were at 6.62 million kg, up 13.8% per cent as compared to the same month last year. The total volume comprised 3.43 million kg of polyester yarn, 2.49 million kg of viscose yarn and 0.69 million kg of acrylic yarn. Polyester yarn exports were up 25.1 per cent in value while viscose yarn exports value were up 29.7 per cent during the month. Acrylic yarn exports saw a drastic plunge of 36.2 per cent in April. Unit price realization was down US cents 33 a kg for polyester from a year ago and that of viscose yarn was up US cents 3 a kg. Acrylic yarn unit price realization was up US cents 95 a kg year on year basis. Polyester spun yarns were exported to 42 countries from India in April with total volumes at of 3.43 million kg, of which, 16.2 per cent was shipped by Turkey alone. Nine new destinations were found for polyester yarn this April, of which, Syria, Mexico, Togo and Tunisia were the major ones. Nine new destinations were found for polyester yarn this April, of which, Syria, Mexico, Togo and Tunisia were the major ones. Egypt, Morocco and Philippines were the fastest growing markets for polyester yarns while nine countries did not import any polyester yarns during the month. Viscose yarn export was at 2.49 million kg and were exported to 26 countries with Belgium at the top, followed by Egypt. Both these markets accounted for 34.2 per cent of all viscose yarn exported in April. China, Sri Lanka, Bangladesh and USA were the fastest growing markets for viscose yarns while Egypt, Bangladesh, Morocco, Brazil and Canada were the new major markets. United Kingdom, South Africa and Peru were the major ones among the 6 countries that did not import any viscose yarns during the month.
SOURCE: Yarns&Fibers
Textile traders in the country's largest man-made fabric (MMF) wholesale market in the city heaved a sigh of relief after Surat textile Goods Transport Association (STGTA) decided to call off the week-long strike on Monday. STGTA members unanimously decided to call off the indefinite strike following an assurance by Navsari MP C R Paatil to resolve the stalemate with Surat Municipal Corporation (SMC). The civic body had sealed more than 140 godowns at Bhatena two weeks ago. The godowns at Bhatena have been creating traffic jams due to plying of heavy vehicles and small tempos throughout the day, especially during peak hours.
Sources said transporters have been given a deadline to shift the transport godowns from Bhatena to the spot outside the city by December 2016. If the transporters fail to shift the godowns before the stipulated time frame then the civic body will have the right to seal the godowns on permanent basis. The transporters were asked to pay one-time penalty amount starting from Rs10,000 to Rs40,000 depending on the size of the godowns. However, the transporters demanded one year period to shift the godowns, which the municipal commissioner was opposed to.
On Monday, the STGTA members met Navsari MP CR Paatil to discuss the issue. Paatil told the transporters to shift the godowns by December 2016. However, if there is delay in the construction or finding a spot, he (Paatil) will ensure that the deadline is extended to four months. "The strike call has been withdrawn after the MP assured us to extend the time limit given by the civic chief. All the godowns will be opened from Tuesday and the transporters will start accepting the bookings," STGTA president Yuvraj Deshle said. He said all the 400 transport trucks will be operationalized from Tuesday. The delivery of the goods lying in the godowns will be taken up on a priority basis.
SOURCE: The Times of India
The Uttarakhand government is setting up three textile parks in the Kumaon region. Incentives include a rebate on the land price, besides capital subsidies, reports Shishir Prashant. The Uttarakhand government has launched a mega textile policy under which it will set up a series of textile parks in the Kumaon region by offering a slew of incentives. Three textile parks in Kashipur, Jaspur and Sitarganj are being set up where a host of incentives will be available to attract new investments under the mega textile policy. For the allotment of industrial plots the government has made the State Infrastructure and Industrial Development Corporation of Uttarakhand (SIDCUL) the nodal agency under the single window system. The land will be available under the prevailing land price at various places in the three townships.
Under the policy guidelines, the new project having investment above Rs 75 crore will be christened as a mega textile park project. “The new project and the existing textile industries under expansion within investment above Rs 75 crore will be covered,” said a top government official. The company setting up a new unit will be given a 50 per cent rebate on the land price, the official said. Under the policy, the allottee has to pay 20 per cent of the land premium at the time of allotment and balance payment is to be deposited within seven years in equal installment on the prevailing rate of interest. The scheme will remain in force till March 31, 2021 (with the commencement of production). Besides, the government is also offering state capital subsidy. For MSMEs, the capital subsidy will be 15 per cent to a maximum limit of Rs 50 lakh and for heavy industry 15 per cent to a maximum limit of Rs 30 lakh. The government is also offering an interest subsidy of 7 per cent. Cent percent VAT concession will be given on purchase of raw material and on sale of finish goods for seven years from the start of the production. A rebate of Rs 1 per unit is also available on power bills. There will be 100 per cent stamp duty rebate on the purchase of land.
SOURCE: Fibre2fashion
The labour department of the state government has started a survey of the country's largest man-made fabric (MMF) sector in the city to gather information on numbers of jobless workers, closed powerloom weaving units and dyeing and printing factories. The survey report is likely to be submitted to the industries department of Gujarat government and the commerce ministry of Central government. Official sources said the survey is being supported by Employees' State Insurance (ESI) and Provident Fund (PF) departments. It has been launched after Union commerce minister Nirmala Sitharaman during her visit to the city on Friday last expressed concern over the crisis facing the textile sector and asked textile industrialists to submit relevant data regarding import of fabrics from China, closure of the units and number of jobless workers. As per industry estimates, around 50 per cent of powerloom units in the city closed in the last one-and-half-month, rendering over 2.5 lakh workers jobless. Over 250 textile processing units in the city had to down shutters due to drastic decrease in the demand for polyester fabrics and dumping of Chinese fabrics in the country.
Industry sources said there are over 7.5 lakh powerloom machines in the city weaving around four crore metres of fabrics per day. From the last one-and-a-half-month, the production has come down to just 1.85 crore metre as most of the powerloom units have downed their shutters. Meanwhile, yarn manufacturers increased yarn prices by almost Rs 4 to Rs 6 in the last fortnight. "The survey is likely to be completed in a month. The detailed report will be submitted to the ministry of textiles, ministry of commerce and the state government for further action," said assistant labour commissioner Ashish Gandhi.
SOURCE: The Times of India
To enhance the employability of people living in 17 tribal settlements in the district and thereby, reduce their dependency on forest produces for livelihood, the Forest Department will join hands with Union Textiles Ministry to roll out an ambitious skill development programme for them. The project, which is expected to commence shortly, proposes to train the people initially on various aspects of garment manufacturing like tailoring, fabric cutting and ironing. Later on, training will be given in packaging and dispatching the apparel products in a scientific manner. Expertise available with NIFT-TEA College of Knitwear Fashion in Tirupur, an institute promoted by Tirupur garment exporters, will be outsourced to train the tribal people. “We will focus first to train unemployed youth in these settlements. About 25 per cent of the total 4,000 population in the 17 settlements are aged below 25 years. Of the total youth population, about 80 per cent are yet to be engaged in some skills-oriented jobs,” said District Forest Officer A Periasamy. About 30 youngsters will be trained for 456 days in the first batch planned to be held shortly.
Placement
The Forest Department and the Textiles Ministry would help the trained people to get placements in the textile clusters like Tirupur and Palladam where the textile units face shortage of skilled personnel in the areas of tailoring, cutting and packaging. The training on packaging of the products will be given to tribal people above the age of 50 years during the second phase. Already a few months back, the Forest department had arranged skill training on making value-added products from coir for empowering tribal women in some of the 17 settlements in a similar fashion. The event was done in association with Coir Board under the Union Government.
SOURCE: The Hindu
Performance of the agriculture sector would help India post 7.7 per cent growth in 2016-17, said a survey by the Federation of Indian Chambers of Commerce and Industry (FICCI). The findings were released on Monday, a day ahead of the government's scheduled release of the gross domestic product (GDP) data for 2015-16. Advance estimates had put GDP growth at 7.6 per cent for 2015-16. The survey estimated median GDP growth forecast of 7.7 per cent for 2016-17. Agriculture was expected to record a median growth of 2.8 per cent in 2016-17, with a range of 1.6 per cent to 3.5 per cent against 1.1 per cent in the advance estimates of 2015-16. Industrial growth was anticipated to grow 7.1 per cent in 2016-17, slightly lower than 7.3 per cent given in advance estimates for 2015-16. The survey also projected services to grow 9.6 per cent, higher than the 9.2 per cent in advance estimates for 2015-16.
FICCI survey pegs FY17 growth at 7.7% The survey was conducted during April among economists, who were asked to provide forecasts for key macro economic variables for 2016-17 and for January-March FY16 and April-June FY17. The median growth forecast for the Index of Industrial Production (IIP) was put at 3.5 per cent for 2016-17 against 2.4 per cent in the previous year. The outlook on inflation remained moderate. The median forecast for Wholesale Price Index-based inflation for 2016-17 was 2.2 per cent, while it was at 5.1 per cent for Consumer Price Index-based rate of price rise.
Views of the economists were also sought on whether the government would be able to achieve the fiscal deficit target of 3.5 per cent of GDP in 2016-17. A majority said the fiscal deficit target for 2016-17 seemed achievable. It was pointed out that some of the enabling factors would include expectation of a normal rainfall, improved buoyancy in domestic growth leading to higher revenue collection through direct and indirect tax collections and government continuing with subsidy rationalisation. However, it was also pointed out that it would be important to realise the non-tax revenue target for achieving the targeted fiscal deficit to GDP ratio. Realising the targeted receipts from disinvestment and spectrum sales would be a critical factor. The economy would have to achieve growth rate of 7-7.75 per cent this financial year (as projected in the Economic Survey) to be able to garner the requisite amount of revenue receipts. An increase in global crude oil prices could change the projected trajectory of fiscal deficit this year. On recovery of the banking system, majority of the economists said recovery would take time. It was unanimously that a turnaround in this financial year was unlikely.
SOURCE: The Business Standard
India's GDP growth for the fourth quarter of 2015-16 is likely to be around 7.1 per cent, but slow private sector capital expenditure (capex) spending and stressed banking sector will weigh on the economy's growth potential this year, says a DBS report. According to the global financial services major, India continues to fare relatively well despite a challenging global backdrop, however, domestically certain pockets remained weak. Services sector is expected to compensate for subpar industry growth and weak farm output amid subpar rains and warmer than usual heat. Some service indicators like visitor arrivals, service sector Purchasing Managers' indices were also positive, making up for the weak financial sector metrics, especially loan and deposit growth, the report said. Meanwhile, recent macro indicators especially infrastructure industries growth, including steel and cement output have been positive, along with strong auto sales. These coupled with improved transmission of the easy monetary policy are likely to lower borrowing costs, it said.
SOURCE: The Business Standard
Indian economy is expected to witness a growth of 7.8 per cent in the current financial year on account of likely recovery in agriculture and private consumption, says a Credit Suisse report. According to Swiss financial major, while the first six months of 2016-17 would see growth consolidating at current levels, the improvement in economy is likely to take place in the second half of the year. "This recovery is likely to be gradual with agriculture and private consumption leading the way but corporate investment and exports remaining lacklustre," it said. At the same time, the report also estimates GDP growth for January-March quarter of 2015-16 to accelerate to 7.5 per cent from 7.3 per cent in the previous quarter.
SOURCE: The Business Standard
Amid concerns of a slowing global growth, India is a beacon of hope and has the potential to drive the world economy for the next 10 years, former Singapore Prime Minister Goh Chok Tong said. “India is a hope for us. India is at a stage China was 10 years ago to amend slack in the economy,” he said speaking at the Future of Asia Conference organised by Nikkei here. Finance Minister Arun Jaitley, who arrived here yesterday on a 6-day tour to help mobilise investment, attended the conference, but did not make any statement. He is scheduled to speak at the conference tomorrow. The former Singapore prime minister felt that India should take advantage as China slows. “One should pass the message to Prime Minister (Narendra) Modi (that) India is growing... now and it is engine of the world for the next 10 years as China is slowing,” he said. He said the world economy can now depend on India for the growth push and it is not just China the world needs to depend on. “(The world) not just depends on China for pushing growth, India can be a very big partner.” The International Monetary Fund (IMF) last month cut its 2016 global growth forecast for the fourth time in the past year to 3.2 per cent, citing China slowdown, persistently low oil prices and chronic weakness in advanced economies. This was down from 3.4 per cent projected in January. In contrast, for India, it retained its 7.5 per cent GDP expansion forecast for 2016 and 2017, up from 7.3 per cent in 2015.
“With the revival of sentiment and pick-up in industrial activity, a recovery of private investment is expected to further strengthen growth,” it had said. “In India, growth is projected to notch up to 7.5 per cent in 2016-17, as forecast in October. Growth will continue to be driven by private consumption, which has benefited from lower energy prices and higher real incomes.” It, however, wanted the government to cut down subsidies, initiate labour reforms and dismantle infrastructure bottlenecks to sustain strong growth. IMF had said a prolonged period of slow growth has left the global economy more exposed to negative shocks and raised the risk that the world will slide into stagnation. It, however, upgraded its China growth forecast by 0.2 percentage point for this year and the next to 6.5 per cent and 6.2 per cent, respectively. China clocked 6.9 per cent growth in 2015 when India had recorded 7.3 per cent expansion
SOURCE: The Tecoya Trend
Once the Insolvency and Bankruptcy Code, 2015, comes into effect, a company that has more than 100 workers can initiate voluntary liquidation proceedings, TK Viswanathan, the chairman of the committee that drafted the legislation and former law secretary, said on Monday. Viswanathan added that as long as the company repaid its dues to lenders and complied with other statutory obligations, it could ask for its operations to be wound up. The existing law requires companies employing more than 100 workers to take permission from the relevant government authorities to shut down a venture. The NDA government has been attempting to frame a better exit policy for industry by allowing companies that employ less than 300 workers to shut down without government permission. While this appears to have been put on the back burner once the new bankruptcy law comes into effect, this government permission no longer remains a constraint. Chapter 59 of the code says “a corporate person in respect of whom a default has not occurred and who intends to liquidate itself voluntarily may initiate voluntary liquidation proceedings under the provisions of this Chapter”. It adds that such a move will require a special resolution to be passed by the firm’s shareholders.
Viswanathan also observed that the new legislation would prevent companies from approaching the high courts and that the National Company Law Tribunal (NCLT) would adjudicate cases for companies and limited liability partnerships. Moreover, this would be done within a specified time period. Companies will, however, be able to appeal to the appellate tribunal and in the Supreme Court only in cases relating to “points of law”, Viswanathan observed. He asserted that the code had overriding effect and that the new Section 238 states that the code’s provisions shall override anything inconsistent with it in any other law or any instrument having effect by virtue of any such law. Banks have found it difficult to recover their dues from promoters since the latter have been able to delay cases in the courts, which at times have dragged on for years. The amount of loans pending recovery in the country’s debt recovery tribunals (DRTs) stood at a cumulative Rs.4.5 lakh crore at the end of December 2015. At the end of March 2015 the amount was Rs.3.93 crore. The code will consolidate the existing framework by repealing two Acts and amending 11 others including Companies Act, 2013, the DRT Act, 1993, and the Sarfaesi Act, 2002.
SOURCE: The Financial Express
The finance ministry has notified the rules for implementation of Equalisation Levy (EQL), meant to nullify the advantage of foreign e-commerce firms sans a physical presence in India over local competitors. The Central Board of Direct Taxes (CBDT), in a circular dated May 27, said the levy would come into force from June 1, 2016. The EQL had already found its way into the statute with the Union Budget putting a 6% levy on online advertising fees paid to overseas companies by Indian customers if the gross value of such payments exceeds Rs 1 lakh a year. Google and Facebook are among firms that would be hit by the levy. The CBDT circular brings in the details of the levy with regards to payment, statement of specified services required to be furnished, time limits, demand notice and appeal to Commissioner of Income-tax in case of any disputes. “Equalisation levy made various players sit up and take notice, especially since this is India’s first step to tax digital economy, and one of the first few internationally. Now with rules in place, people need to start taking action, since the statement of specified services procured starting June 1, 2016 has to be reported in the statement to be furnished by June 30, 2017. The Rules provide clarity as to how an assessee can appeal against the order of the assessing officer. By keeping the filing of statement and even the filing of appeal electronic, CBDT has continued its motion to make India’s tax administration paperless,” said Rakesh Nangia, managing partner at Nangia & Co. While the present levy is restricted to online advertising and B2B transactions, the Committee on Taxation of E-commerce, in its 124-page report put out by the finance ministry sometime back, proposed that a host of e-commerce and other online activities be brought under its purview and this be extended to B2C transactions above a certain threshold. Analysts noted that the levy could practically increase the cost of services as the foreign party will not allow the Indian player to deduct the levy from the invoice value.
SOURCE: The Financial Express
A rather peculiar aspect of India's growth structure under the new Gross Domestic Product series has been the stellar performance of the micro, small and medium enterprises (MSME) in the manufacturing segment. With the bigger manufacturing companies struggling over the past few years, it was these smaller companies that provided the much needed fillip to manufacturing growth. The Reserve Bank of India's analysis of the Ministry of Corporate Affairs database confirms this. Gross value added (GVA) by these companies grew at a staggering 17.3 and 16.2 per cent in 2013-14 and 2014-15, respectively, dwarfing the value addition by their larger counterparts who grew at a modest 10.1 and 12 per cent over the same period. But what is troubling is that bank credit to MSMEs has slowed quite sharply over these past few years. After growing at a robust 15.5 per cent in 2013-14, gross bank credit to MSMEs slowed down to 6.8 per cent in 2014-15, thereafter contracting by 3.6 in 2015-16. As bank credit is considered to be a leading indicator of growth, does this contraction signal a reversal in the fortunes of the MSME sector and, in turn, that of the manufacturing sector? Or are these companies relying on other sources of funds to fuel their growth? The contraction in bank credit can be attributed to the sluggish macro-economic environment and the sharp rise in the non-performing assets of banks. This has led to banks becoming even more cautious, as a consequence of which lending to MSME's has been curbed. "In such a scenario of mounting losses and sluggish economic growth, loans to the MSME sector have dried up as they are more vulnerable to become NPAs" says Madan Sabnavis, Chief Economist at CARE. Thus, for these smaller companies even obtaining working capital loans for carrying out daily operations would be difficult.
One possible explanation could be that these smaller companies have been able to tap other sources of funding such as NBFC's, urban development banks and micro-finance companies. But in the absence of reliable data on credit flows from these sources, it is difficult to know for sure. Another explanation, perhaps a more likely one, is that these companies are increasingly retaining a larger portion of their profits to plough back into their business. This trend is confirmed by RBI's analysis of the ministry of corporate affair's database which shows that retained profits of over 230,000 MSMEs grew at a staggering 14 per cent in 2014-15. Analysts like Saikat Roy, at CARE, also believe that with bank credit to these companies slowing down, they are mostly relying on retained earnings to fuel their growth. It is possible that this increase in retained earnings, which could have partly offset the decline in bank lending, helped finance their operations and drive growth in 2015-16.
While disaggregated data on GVA by the MSME sector and large companies is not available for 2015-16, it is likely that the MSME's continued their stellar performance aided by an increase in retained earnings. This can be inferred from the fact that the Index of Industrial Production (IIP), which essentially tracks large companies, grew at a slower pace in 2015-16 as compared to 2014-15. IIP grew at 2.4 per cent in 2015-16 as compared to 2.8 per cent in 2014-15. By comparison, GVA added by the entire manufacturing sector grew at 8.1 per cent at current prices in 2015-16. Thus if the big companies were struggling then it is only logical that smaller companies would have pushed up growth. But the question now is if bank credit continues to be sluggish then can these companies continue to rely on their own resources to fund their growth going forward?
As data on retained earnings for 2015-16 is not available, its difficult to know for sure. But it is possible that as the price of raw materials fell sharply during 2015-16, profit growth would have edged further upwards. This would have created space for these companies to retain an even larger share of profits to compensate for further declines in bank lending. But with commodity prices firming up in 2016, earnings are likely take a hit in the absence of a significant boost to top line growth. Thus it would be difficult for MSME's to rely on retained earnings going forward.
SOURCE: The Business Standard
India has moved up three spots from last year to 41 on the IMD World Competitiveness Scoreboard, 2016. The country's ranking had fallen to 44 in 2015, from 35 in 2012. Hong Kong replaced the US as the world's most competitive economy. Switzerland, Singapore, Sweden, Denmark, Ireland, the Netherlands, Norway and Canada have got slots in the top 10. India's improvement is in sharp contrast to the sagging fortunes of other Asian countries. According to the report, Asia's competitiveness declined since last year's ranking with Taiwan, Malaysia, Korea Republic, Indonesia and China falling from their 2015 positions. "The decline has been caused by a fall in commodity prices, a strong dollar and the deterioration of balance sheets in both the private and public sectors," says professor Arturo Bris, director, IMD World Competitiveness Center. The rankings are based on about 340 criteria grouped under four broad heads - economic performance, government efficiency, business efficiency and infrastructure. The report also gave weight to responses of 5,400 business executives who were asked to assess the situation in their own countries. The increase in India's ranking comes on the back of an improvement in business efficiency, in which India's ranking improved from 33 to 31 over the past year. The indicator measures the extent to which enterprises are performing in an innovative, profitable and responsible manner. The sub-indices show India has improved in its ranking on labour market from 22 in 2015 to 12 in 2016. Management practices improved from 47 in 2015 to 36 in 2016 and attitudes and values improved from 23 in 2015 to 18 in 2016. But, a part of these gains have been offset by a deterioration in finance from 27 in 2015 to 33 in 2016.
India climbs to 41st slot on competitiveness ranking On economic performance, India ranks 16, well above many western European nations. The country has improved its ranking on international investment, up from 31 in 2015 to nine in 2016, and on employment from nine in 2015 to five in 2016. But, these gains have been offset by poor performance on prices, where its ranking has gone down to 55 in 2016 from 37 in 2015. On government efficiency, which measures the extent to which government policies are conducive to competitiveness, India ranks 47. Within this segment, it has seen an improvement in public finance, institutional framework and business legislation. Though it has seen its position slip on fiscal policy. The country has seen a steady decline in its score on infrastructure from 53 in 2012 to 58 in 2016.
SOURCE: The Business Standard
Accepting that bulging trade deficit with China is "not a good news", Commerce Minister Nirmala Sitharaman said a lot of effort is underway at different levels to provide more market access to Indian products in that country. "Bulging deficit is not a good news. With China, we have several rounds of talks and we are continuing so that our bulk drugs and IT/ITeS sectors get greater market access. We are negotiating with China...there is a lot of effort at different levels," she told reporters here. She said that Indian companies have expressed concerns that registration process in China is difficult and time consuming. Simultaneously, Sitharaman added that in order to stop some of the Chinese goods which are causing injury to the domestic industry, India is taking measures which are WTO compliant. "So on one hand we are trying to make imports where it is unsustainable, where it is injurious, we will stop and on the other hand for greater access, there is a work going on," she said. Trade deficit between India and China has increased to $44.7 billion during April-January period of 2015-16. India has a trade deficit with as many as 27 major countries, including China, Australia, Iraq and Iran. In 2015-16, India's trade deficit fell 14 per cent to $118.35 billion.
SOURCE: The Economic Times
India is ready to work with the European Union (EU) to sort out “issues of concern’’ related to the proposed bilateral free trade agreement. “The EU Trade Commissioner, in her letter, has said that the bloc does not have any pre-conditions, but would want some issues to be sorted out. We want to work together with the EU. We want the agreement (the proposed free trade pact) signed,” Commerce & Industry Minister Nirmala Sitharaman said during her address to the media on the two-year achievements of the NDA government on Monday. EU Trade Commissioner Cecilia Malmstrom’s letter is in response to Sitharaman’s letter seeking a meeting of chief negotiators to resume the trade talks. No date, however, has been fixed for the meeting, Sitharaman said, adding that one has to keep in mind that the bloc may be waiting to see what happens at the Brexit referendum (polling for exit of Britain from the EU) in June. The EU wants India to give some commitments on lowering of import duties on automobiles before the BTIA negotiations restart. While India agreed that a working group be formed to look at the issue, it wants commitments on tariff cuts to be part of the negotiating process. The EU wants India to commit to sharp cuts in import duties on automobiles, currently ranging between 60 per cent and 120 per cent, as opposed to 10 per cent duties levied by the bloc. Sitharaman added that Australia, too, was also going through an election process that might have slowed down the talks for a bilateral FTA with India.
Pharma payments
On payment problems being faced by the Indian pharmaceutical sector in Venezuela, Commerce Secretary Rita Teaotia said that the Commerce Ministry was in talks with the RBI to see if an appropriate mechanism could be devised to see that the payments are in some sense protected. In Sudan and Nigeria, too, Indian pharmaceutical exporters were facing payments issue, she said. When asked about the agreement between India and Indonesia on non-basmati rice trade, Teaotia said STC and its Indonesian counterpart were about to conclude an agreement on imports.
SOURCE: The Hindu Business line
India is eyeing trade deals with the European Union, Israel , Gulf countries and Eurasian region to deepen its trading engagement and revive exports, commerce and industry minister Nirmala Sitharaman has said. Highlighting her ministry's achievements in the last two years. Sitharaman said the EU is waiting for a decision on the Brexit (possible British exit from EU) and dates to resume negotiations for the long-stalled proposed trade agreement are yet to be finalised. "We want to work with the EU. We want to sign that agreement. We shall move forward and talk. Of course, the dates are still not given," she said and added that Australia is going through elections. She said a framework is being drafted for the proposed India-Iran preferential trade agreement while the country is actively moving forward on other trade pacts including the Regional Comprehensive Economic Partnership, Israel and GCC.
A joint study group has been set for a pact between India and the Eurasian union, comprising Russia, Belarus and Kazakhstan, and the first draft report is ready. With Peru, Sitharaman said a joint study group has been set up to explore the possibility of entering into a free trade agreement. The government is also reviewing its trade pacts with Asean and Sri Lanka. Asked about losses in revenue when trade agreements are signed, the minister said, "We are talking to finance (ministry) to understand if, eventually whether in a plurilateral or bilateral agreement, duties have to come down. We meet finance (ministry) to tell us as to what are the implications in terms of revenue loss."
CHINA FEARS
Commenting on the burgeoning trade deficit with China, she said the government is collecting data from industry to bring in safeguard duties and anti-dumping duties to stop imports causing injury to the local industry. Trade deficit with China swelled to $44.7 billion during April-January period of 2015-16. India's exports to China stood at $7.56 billion during the period whereas imports jumped to $52.26 billion. In 2014-15, the deficit was aggregated at $48.48 billion. India has so far initiated 322 anti-dumping cases out of which 177 cases involve China.
SOURCE: The Economic Times
Denmark-based companies such as Danfoss, Grunfdfoss, sRamboll, Novo Nordisk and Novozymes are eyeing the benefits of Narendra Modi’s Make-in-India programme to set up their base in the country. Indian ambassador to Copenhagen Rajeev Shahare said Denmark has embarked on a number of steps to be ahead of the curve in doing business with India. “The Danish Confederation of Industries (DI) has an office in Mumbai; the Danish Trade Council (part of its Ministry of Foreign Office) has a strong representative office in Bangalore; Asia House in Copenhagen has commissioned a study on how to effectively participate in the Smart Cities project in India,” the ambassador told FE. While many big companies like Danfoss and Carlsberg already have their units, some others are in the process of doing so. “One company is setting up a unit in Hyderabad for manufacturing of ocean cleaning pumps and equipment; another consulting company is exploring Mumbai for its regional office,” he said.
The Scandinavian country is keen on setting up production facilities in India taking advantage of India’s low cost of production, availability of technical and English speaking manpower and a compatible working environment, he added. India can also partner Denmark and learn from its best practices in areas like health services, food technology, dairy management, agro services, solid waste management and waste water management. There are around 125 Danish companies in India and probably all top companies have a strong presence — the shipping giant Maersk (AP Moller) which also developed the Pipavav port and is now looking for investments in ports on the eastern coast; Danfoss, Grunfdfoss, Ramboll, leading pharma company Novo Nordisk etc. The Danish companies operating in India are directly or indirectly providing around two lakh jobs to locals here.
According to Statistics Denmark, the Danish FDI in India was $854 million in 2014, $731 million in 2013 compared to $931 million in 2012 (up from $877 million in 2011). Major Danish investments in India have been made in sectors such as manufacturing, trade and transport, financial and business services. On the other hand, the Indian investment in Denmark were $71 million in 2014, $89 million in 2013 compared to $103 million in 2012 (up from $112 million in 2011) (Source: Statistics Denmark). Around 30 Indian companies have a presence in Denmark. Of them, 24 are IT companies, two belong to life sciences field and four are diversified mainly in the renewable space. There are some major success stories of companies from Denmark that need to be highlighted. “The largest Danish bank- Danske Bank has all its back end operations in India; the entire Kommune (municipal) operations of KMD are handled by an Indian software company,” according to Shahare.
SOURCE: The Financial Express
Productivity in the apparel and footwear sector in Cambodia decreased by 14 per cent between 2011 and 2014, the Garment Manufacturers Association in Cambodia (GMAC) said citing data from the International Labour Organization. Although there is no available data post-2014, the decline in productivity seems to have continued till 2016 as the industry has not witnessed any improvements or significant changes in the intervening period, GMAC secretary-general Ken Loo said in a recent statement. GMAC is in talks with the ministry of labour and vocational training to take steps to improve labour productivity in the country's garment sector, which employs around 700,000 people, the statement said. “Everyone has to do their part in order to keep our industry as healthy as it can be in the current global competitive environment,” Loo said in the statement. Cambodia's garment industry continues to battle with rising costs of electricity and transportation, according to the GMAC.
SOURCE: Fibre2fashion
The Textile, Clothing and Footwear Council of Fiji is pleased with the continuous support of government. In their budget submission, Council president Kaushik Kumar said they were once again looking at a positive outcome to their submissions and a balanced budget which encouraged investment, sustainable growth, creation of more jobs and ensured the under privileged were well catered for. "We are looking forward to working closely with government to achieve our common goals," he said.
SOURCE: The Fiji Times
All Pakistan Textile Association (APTMA) Chairman Tariq Saud Monday appreciated timely decision of the federal government to reintroduce 'Zero Rating or No-Tax and No-Refund Regime' for the textile sector - the largest export oriented sector and contributes more than 55 percent of foreign exchange earnings through exports. On behalf of textile sector, he thanked Prime Minister Nawaz Sharif, Finance Minister & Economic Affairs, Haroon Akhtar Khan Special Assistant to the Prime Minister Ishaq Dar and FBR Chairman Nisar Muhammad Khan for acceptance the longstanding demand of APTMA to restore zero rating of raw materials exclusively used by the industry for the manufacturing of products which will be a step forward for the development and growth of export-oriented textile industry. He also especially appreciated the role of Ishaq Dar for realising the issue and taking a concrete step for the revival of the textile industry which will work well and boost exports. He further said that the application of sales tax regime at the rate of zero-percent on export-oriented sectors, including textiles from 2016-17 wherein the entire supply chain would be subjected to zero-rating regime would take away the issue of refunds and resolve liquidity problems both for the industry and its buyers. A delegation led by Chairman APTMA Tariq Saud also participated in a meeting of the textile value chain held with Finance Minister on Sunday in Islamabad to present the case. Haroon Akhtar Khan Special Assistant to the Prime Minister on Revenue and Chairman FBR were also present in the meeting. The Finance Minister also assured the team of considering other recommendations of APTMA for the restoration of viability of the industry for export boost.
SOURCE: The Business Recorder
Pakistani Finance Minister Mohammad Ishaq Dar has assured the All Pakistan Textile Mills Association (APTMA) that the government is committed to enhance textile exports and will consider the its proposals for the 2016-17 Budget. Dar's comments came during a meeting with a delegation of APTMA in Islamabad on Sunday. The delegation shared with the Minister details on the current profile of textile sector in the country and also apprised him about their budget proposals. Dar said all possible facilitation would be extended to the textile sector in the budget 2016-17 and acknowledged that the sector is a vital revenue earner for the country. The Minister added that while the government was prepared to facilitate all sectors of the economy, it also expected them to strengthen government's efforts for revenue generation and economic growth. Earlier this month, the APTMA in its Budget proposals urged the government to allow duty and sales tax exemption on import of raw and ginned cotton, considering the shortfall in the local cotton output.
SOURCE: Fibre2fashion
The government in Pakistan's Punjab province is pulling out all the stops to boost cotton production. Punjab's Agriculture Minister Dr Farrukh Javed said the government was working on a war-footing to ensure a higher cotton output. At a media briefing in Multan, he said the government has fixed an acreage of 5.7 million acre and set a target of producing 9.5 million bales of cotton for this year. He said all possible resources would be utilized to achieve the 21.25 maund per acre cotton production and hoped that the growers would also care for the cotton crop for getting better yielding. The Minister said the production targets could be achieved if weather condition remained pleasant. Punjab province which produces 70 to 80 per cent of Pakistan's cotton had suffered almost 45 per cent crop damage last season due to pest attacks. Dr Javed told reporters that a massive crackdown against fake and substandard pesticides, seeds and fertilizers was underway in a bid to minimise the threat of pest attacks.
SOURCE: Fibre2fashion
Euro zone economic sentiment improved more than expected in May and inflation expectations among companies and consumers rose, data from the European Commission showed on Monday. Economic sentiment in the 19 countries sharing the euro rose to 104.7 this month from an upwardly revised 104.0 in April, beating market consensus of a rise to 104.4 points. The improvement was due to more optimism among consumers and managers in the retail trade and construction sectors, while confidence remained stable in the industrial sector and decreased slightly in the services sector, the largest in the euro zone economy.
Separately, the Commission's business climate index, which points to the phase of the business cycle, improved to 0.26 in May from an upwardly revised 0.15 in April. The improvement was much higher than market forecasts of a rise to 0.16. Consumer expectations of price trends over the next 12 months rose to 3.4 in May from 2.9 the previous month, confirming the positive trend recorded in April, but remained well below the long-term average of 19.2. Companies' expectations of developments in producer prices also rose to -0.7 from a revised -2.8 in April, reaching the highest point since July 2015, although still below the long-term average of 4.8. The European Central Bank carefully watches inflation expectations in its monetary policy decisions. The bank aims for inflation in the euro zone to be below, but close to 2 percent, over the medium term.
SOURCE: The Reuters
