Ministry of Textiles cleared 20 strategic research projects worth around INR 74 crores in the areas of Agrotextiles , Speciality fiber, Smart textiles, Activewear textiles, Strategic application areas Protective gear and apparel Sports textiles under the chairmanship of Shri Piyush Goyal, Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles on 1st November 2022. These strategic research projects fall under the Flagship Programme ‘National Technical Textiles Mission.’ Among these 20 Research projects, 5 Projects of Speciality Fibres, 6 Projects of Agrotextiles, 2 Projects from Smart Textiles, 2 from protective gear and apparel, 2 from geotextiles, 1 from activewear apparels, 1 from strategic application area, 1 from sports textiles were cleared. The Minister provided his inputs pertaining to Technical Textiles for the meeting along with the officials from different Line Ministries. Leading Indian Institutes including IITs, Government Organizations, Research Organization and Eminent Industrialists, among others participated in the session which cleared projects strategic for the development of Indian economy and a step in the direction of Atmanirbhar Bharat, especially in the field of Geotech, Industrial and Protective, Agriculture and Infrastructure. While addressing the esteemed group of Scientists and Technical Technologists, Shri Piyush Goyal said, “Industry and Academia linkages are essential for the growth of research and development in the application areas of Technical Textiles in India. Building convergence with Academicians, Scientists and Researchers is the need of the hour.” Shri Piyush Goyal emphasised on the importance of contributions of technology and segment experts, scientists and academicians to India’s technical textiles future growth. Despite the prominent usage of speciality fibres in India, indigenization of the technology has still been a major challenge which needs collaborative interventions from both industry and academia, he further added. The Minister further emphasized on robust indigenization of machineries and equipments for the technical textile sector to establish sustained and strong foothold in the global landscape. Revision of R&D guidelines and creation of dedicated indigenous machinery and equipment development guidelines under NTTM were discussed and recommended by the committee during the meeting To bolster the innovation and research ecosystem in technical textiles, NTTM to support ideation and prototyping R&D projects worth upto INR 50 lakhs and 100 lakhs respectively, which have clear potential to translate into commercial products and technologies.
Source: PIB
Union Minister of Commerce and Industry and Textiles, Piyush Goyal has asked the textile industry to strive to move up the value chain and focus on products of high value. Interacting with the beneficiaries of the Production Linked Incentive Scheme (PLI) for textiles at a review meeting in New Delhi, the Minister asked the beneficiaries to focus on improving the quality of textile products made in India to make them world-class. The review meeting under the Chairmanship of Minister was attended by representatives of 49 companies and key dignitaries of Ministry of Textiles. The meeting was held to understand the implementation status of the projects under the Scheme and for resolving their issues. Several procedural issues were clarified for the sake of easy understanding. NICDC shared the ready availability of land with plug and play facility at Dholera, Aurangabad, Greater Noida and Indore. Minister also directed the Ministry team to actively engage with the participants and resolve state and administrative issues they faced. He urged textile industry players to work with a sense of duty, a kartavya bhavana, aim higher and dream bigger to take Indian textile industry to greater heights. The Minister asked that textile sector workers to be paid fairly, given social security and brought to the formal sector. He also said that the centre was looking at PLI 2.0 and instructed officials of the Ministry to undertake extensive and exhaustive stakeholder consultations before finalising the contours of PLI 2.0. He asked them to make PLI 2.0 robust and emphasised that PLI 2.0 would empower the sector to compete globally with top exporting countries like China, Vietnam. Under the PLI Textile Part 1, 67 applicants had applied out of which 64 were selected and out of these 64 companies, 55 companies have formed participant companies. The proposed investment during the entire tenure of the scheme is Rs. 19,789 crore out of which Rs. 1,536 crore has been invested so far.
Source: Apparel Resources
• Invest Karnataka meet 2022: The three-day programme, being held from 2 to 4 November in Bengaluru, would witness more than 80 speaker sessions Prime Minister Narendra Modi on Wednesday will address the inaugural function of Invest Karnataka, the Global Investors Meet via video conferencing. Prime Minister Modi will inaugurate the event at 10:30 am on 2 November. According to the Prime Ministers's office, the meet is aimed at attracting prospective investors and setting up development agenda for the next decade. The three-day programme, being held from 2 to 4 November in Bengaluru, would witness more than 80 speaker sessions. The speakers include some of the top industry leaders including Kumar Mangalam Birla, Sajjan Jindal, Vikram Kirloskar among others. Along with this, a number of business exhibitions with more than three hundred exhibitors, and country sessions would run parallelly. The country sessions would each be hosted by the partner countries - France, Germany, Netherlands, South Korea, Japan, and Australia - which would be bringing in high-level ministerial and industrial delegations from their respective countries. CM Basavaraj Bommai has called 'Invest Karnataka' an important meeting wherein all technocrats, young engineers, IT/BT experts, startups, educational institutions, and global and domestic investors are welcome. "Invest Karnataka' is going to grab the attention of the whole world. Global investment is coming here as Karnataka has a rich atmosphere. This will put a strong foundation for the development of Karnataka in the next five years," CM Bommai said. The Karnataka CM said he is expecting over ₹5 lakh crore investment and the State High level Committee has already given clearance for an investment of over ₹2.8 lakh crore. "The State of Karnataka is making a big leap in the industrial sector and it will be evident, " he added. Bommai said most of the investors have shown interest in investment beyond Bengaluru, and new industries are coming up in Ramanagar, Hubballi-Dharwad, Ballari, Kalaburagi, and Mysuru. Today, industries are crossing the regional barrier. The dream of Beyond Bengaluru is becoming a reality. Last week, the FMCG Cluster to come up in Dharwad was inaugurated in Hubballi and expected an investment of ₹10,000 crore. It is going to provide employment to over one lakh people. The textile park will come up in Kalaburagi, Vijayapura, and Raichur districts; Pharma Park in Yadgir; Electronic Park in Mysuru and Defense production unit in Tumkur. "The situation is conducive in Karnataka and plays an important role in building New Karnataka. We aim to contribute One Trillion Dollar to the Prime Minister's five Trillion dollar economy of India. The ecosystem that exists in China is present in Karnataka. The state has made achievements in the manufacturing sector. Besides, it is at the forefront in the fields of electrical, mechanical, energy, iron, and steel. Apart from this, a strong foundation has been laid for Electronic and Artificial Intelligence. We have been at the forefront of IT/BT in the last two decades, and Bengaluru is called Silicon Valley. The contribution of Karnataka in IT/BT export is 40 % and the maximum number of jobs in this field is created in IT/BT. The state is ahead in agriculture production, IT/BT, Startups and others. The industrial policy, Ease of Doing Business has helped attract investment here. The State has attracted 38% of Foreign Direct Investment in the last four quarters.
Source: PIB
Polyester-cotton (PC) and poly spun yarn prices declined in the domestic market as low demand and cheap raw material forced millers and stockists to cut their rates. Poly spun cotton yarn fell by ₹2-5 per kg due to cheap polyester fibre, while PC yarn came down to ₹10 in Ludhiana. Reliance has also decreased prices of PSF and its raw materials. According to trade sources, polyester yarn and blended yarn prices witnessed a downward trend as the demand did not improve even after Diwali. Surat and the other markets in Gujarat are still partially closed on account of Diwali, which is also dampening market sentiments. Man-made yarn and textile market will completely open only next week. “Cheap raw material was the main reason for the decrease in the prices of yarn. Reliance had to cut prices of PSF and PTA in line with the Chinese market. Poor demand was also another factor for weaker sentiments,” a Ludhiana based trader told Fibre2Fashion. According to trade sources, polyester-cotton yarn declined by ₹10 per kg, while poly spun yarn came down by ₹2-5 per kg in Ludhiana and Surat. 30 count PC combed yarn (48/52) was sold at ₹210-220 per kg (GST inclusive), according Fibre2Fashion’s market insight tool TexPro. 30 count PC carded yarn (65/35) was priced at ₹185-190 per kg. 20 count PC (recycled-O/E) PSF yarn (40/60) was traded at ₹150-160 per kg. 30 count poly spun yarn was sold at ₹154-160 per kg. Recycled polyester fibre (PET bottle fibre) was at ₹84-86 per kg. In Surat, Gujarat, 30 count poly spun yarn was traded at ₹141-142 per kg (GST extra) and 40 count poly spun yarn at ₹155-156 per kg. Reliance Industries Limited decreased the prices of purified terephthalic acid (PTA), monoethylene glycol (MEG) and MELT for the current week. On Friday, RIL had fixed prices as: PTA at ₹81.70 per kg (-2.20), MEG at ₹52.90 per kg (-1.20) and MELT at ₹88.25 (₹-2.30) per kg. PSF price was cut by ₹2 to ₹105 per kg for the current fortnight. North Indian states witnessed an upward trend in cotton prices as international and domestic cotton futures bounced back. ICE cotton surged with grains after Russia’s move to suspend participation in the agreement to provide a safe corridor to Ukraine for its shipments. According to local traders, domestic demand has not picked up yet. But prices improved from the cues of cotton futures. Cotton arrival was noted at 14,000-15,000 bales of 170 kg in the north Indian region. Cotton prices increased by ₹100-150 per maund of 37.2 kg. The natural fibre was traded at ₹6,250-6,300 in Punjab and Haryana and ₹6,450-6,500 per maund in upper Rajasthan. Cotton was sold at ₹61,000-62,000 per candy of 356 kg in lower Rajasthan.
Source: Fibre2fashion
As for the PLI schemes, the government has already rolled out 14 of them since 2020, which are estimated to lead to incremental manufacturing of more than $500 billion over five years. The government is giving final touches to seven to eight production-linked incentive (PLI) schemes that will likely be announced in the Budget for FY24, official sources have told FE. The PLI schemes, aimed at encouraging the private sector to step up capital expenditure, will complement the Centre’s bid to further bolster its own budgetary capex and serve as important levers for growth and job creation, one of them said. This will be important for the NDA government as well, in the build-up to the 2024 general election. The Centre will also continue to nudge states and central public sector enterprises to raise their capex. Sources had earlier told FE that the new PLI schemes could cover segments, including textiles, electronic components, furniture, toys and leather. Tens of thousands of crores would be extended as incentives. The government intends to make fresh budgetary allocation for the schemes, apart from using savings from the earlier PLI schemes. The budgetary capex, too, will see another spike in FY24, as the government aims to push for economic growth without exacerbating inflationary pressure. The Centre had budgeted a capex of Rs 7.50 trillion for FY23, up 27% from the actual spending of Rs 5.93 trillion in FY22, betting big on its high multiplier effect. Of course, about Rs 1 trillion of the current fiscal’s target will be spent by states, as they have been provided loan support to boost their asset creation. Given that the PLI schemes are not exactly demand-side stimulus measures, chances of them stoking price pressure, when inflation is already elevated, are muted, sources have said. As for the PLI schemes, the government has already rolled out 14 of them since 2020, which are estimated to lead to incremental manufacturing of more than $500 billion over five years. The government had approved three PLI schemes for mobile & specified electronic components, pharmaceuticals API (active pharmaceutical ingredients) and medical devices in the first round in March 2020. The total initial outlay for these three programmes was Rs 51,311 crore over five years. In the second round, another 11 schemes were cleared by the Cabinet in November 2020, with a total initial allocation of Rs 1.46 trillion over a five-year period. The sectors that were covered were electronic/ technology products, pharmaceuticals drugs, telecom & networking products, food products, white goods, solar modules, automobiles and auto components, advance chemistry cell battery, textiles, specialty steel and drones. However, the sector-wise allocation was later tweaked, based on re-assessed priorities, which generated some savings. The attempts to stir private capex, on top of public capex, come at a time when India’s economic growth faces strong external headwinds, mainly the Ukraine war and global growth slowdown. Several agencies have now scaled down their FY23 forecasts for the country. The International Monetary Fund last month trimmed its FY23 growth forecast for India by 60 basis points to 6.8%, although it retained its FY24 projection at 6.1%. The World Bank, too, slashed its growth forecast for India to just 6.5% for FY23 from 7.5%.
Source: Financial Express
Union Finance Minister Nirmala Sitharaman on Wednesday batted for investments in Karnataka saying that the state is a leader in many sectors and has attractive policies to promote industries. The Union Minister, who is a Rajya Sabha member from Karnataka, said investors are willing to come to the state because of the record of Karnataka and Bengaluru in facilitating industries. "Karnataka is a leader in many sectors. First in renewable energy, because 63 per cent of all our installed capacity lies in renewable energy. First in electrical maintenance, innovation, home to about seven plus auto Original Equipment Manufacturers (OEMs) - - more than seven of them are here and 50-plus auto component manufacturers are here," Sitharaman said addressing the gathering at the launch of the three-day Global Investors' Meet titled 'Invest Karnataka. The industry consultative process which happens in Karnataka is one which is extensive, the Finance Minister said. Quoting Chief Minister Basavaraj Bommai, Sitharaman said that initially when the GIM was planned, the state government's expectations and target of investment was somewhere in the range of Rs 5 lakh crore. However, it went upwards to about Rs 7.5 lakh crore, of which Rs 2.8 crore related proposals have already been cleared, she said. "That is the pro-active nature of this government being led by Chief Minister Basavaraj Bommai and it is at that speed, which gives confidence to the investors," Sitharaman pointed out. She highlighted that the MoUs are coming up in the sunrise areas, including green hydrogen. Sitharaman said the state government is making sure that the corridors are coming up for industries and the ports are connected. According to her, the state's new Information Technology Policy 2020-25 is a big step forward as it also looks at electronic system-defined manufacturing and telecom services in six clusters. Further, the industrial clusters are not just going to be located in Bengaluru but outside the city in places like Mangaluru, Tumakuru, Mysuru, Hubballi, Shivamogga and Kalaburagi. "The 'one district, one product' is something which the state is moving at a rapid pace. Land reforms are happening. Similarly, the renewable energy policy of the state is something which I think is very rewarding and as a result, you have a lot of investments happening in the renewable energy area as well," Sitharaman said.
Source: Economic Times
The focus of the FTA negotiations is on reducing the barriers to trade, cutting tariffs, and supporting easier imports and exports into each other's markets. According to official UK government data, India-UK bilateral trade currently stands at around GBP 24.3 billion a year and the aim is for that to be at least doubled by 2030. Intensive negotiations continue towards a free trade agreement (FTA) between India and the UK and new British Prime Minister Rishi Sunak is committed to achieving a balanced deal, Downing Street said on Wednesday. Sunak, who took charge at 10 Downing Street last week, had a "very warm" introductory call with Prime Minister Narendra Modi during which both sides expressed their commitment towards an FTA The UK Prime Minister's office also reiterated that the focus remains on a balanced trade deal that benefits both sides and therefore no timeframe is being specified after a proposed Diwali timeline had to be abandoned last month amid political turmoil in the UK. "Both sides are very committed to it, intensive negotiations are continuing led by the Department for International Trade (DIT)," a spokesperson told reporters at a Downing Street briefing. "The Prime Minister had a very warm, introductory call with Prime Minister Modi last week. In terms of the speed of it [FTA], we have been very clear that we won't sacrifice quality to achieve speed. We will sign when we have a balanced deal that represents both of our interests but both sides remain committed," the spokesperson said. In his first phone call after taking charge as Prime Minister last week, Sunak had referenced "good progress" being made to finalise the FTA. "The Prime Minister hoped the UK and India could continue to make good progress in negotiations to finalise a comprehensive Free Trade Agreement," a Downing Street readout of the call said. The two leaders are expected to meet in person at the G20 Summit in Indonesia later this month, unless they meet at the COP27 Summit in Egypt where the UK Prime Minister has confirmed attendance of the Leader's Day but Modi's visit is as yet unconfirmed. Sunak is on the record expressing his commitment to an FTA with India while Chancellor of the Exchequer at No. 11 Downing Street when he flagged financial services as a particularly "exciting" aspect of the bilateral trade relationship. The City of London Corporation, the financial hub of the UK capital, has expressed the hope that Sunak's focus on services would take the FTA in the right direction. "Services make up around 70 per cent of annual trade between our countries. So, a deal that doesn't deliver for this sector would be a missed opportunity," said Chris Hayward, Policy Chairman at the City of London Corporation. The focus of the FTA negotiations is on reducing the barriers to trade, cutting tariffs, and supporting easier imports and exports into each other's markets. According to official UK government data, India-UK bilateral trade currently stands at around GBP 24.3 billion a year and the aim is for that to be at least doubled by 2030.
Source: Economic Times
Shaktikanta Das defends timing of rate hikes amid failure to meet inflation target The Reserve Bank of India may have failed to achieve its legally mandated inflation target but tightening policy too early would have been "very costly" for the economy, said Governor Shaktikanta Das Wednesday. Das, who spoke a day before an additional meeting of the Monetary Policy Committee (MPC), said that efforts to safeguard growth often did not receive their deserved appreciation. “Step back for a moment, pause for a moment, and think about…if we had started the process of tightening earlier, what would have been the counterfactual scenario? What you prevent in the process doesn’t get the kind of appreciation that it should get,” Das said at a banking event in Mumbai. “In the process, yes, there has been a slippage in our inflation targeting, in our capacity to, in our ability to maintain inflation below 6 per cent, but it (premature tightening) would have been very costly for the economy. It would have been very costly for the citizens of this country, we would have paid a high cost. And I think that is something that needs to be appreciated,” he said. Arguing that the RBI had prevented a complete slide in growth after GDP recorded a contraction in 2020-21, Das said that amid the public debate, history would judge the central bank’s actions. “There are several points of view expressed, but it is our sincere and firm belief, and especially in the early part of this calendar year, in January-February, when we looked at the inflation trajectory, our assessment showed that the inflation during the year 22- 23, that is the current financial year, the average inflation would be 4.5 per cent,” he said. CPI inflation was at 7.41 per cent in September 2022. The MPC commenced on its current tightening cycle in May 2022. Since then, the repo rate has been raised by a total of 190 basis points to 5.90 per cent. CPI inflation has been above the RBI’s 4 per cent target for 36 months. The price gauge has also been outside of the MPC’s mandated 2-6 per cent range for three successive quarters, marking the rate-setting committee’s failure to achieve its inflation mandate. Economic growth was at 13.5 per cent in April-June, lower than the RBI’s estimate of 16.2 per cent. The RBI last month reduced its GDP growth forecast for the current financial year by 20 bps to 7 per cent. “We didn’t want to upset the process of recovery; we wanted the economy to safely land in the turbulent waters through which the economy had been sailing through the period of COVID. We wanted the economy to safely land on the shores and thereafter try and handle down inflation,” Das said. “We are closely monitoring the inflation prints as well as the effects of our past actions. In our view, that is the Reserve Bank’s view and my view, price stability, sustained growth, and financial stability need not be mutually exclusive.” Letter to government Amid debate about whether the contents of the MPC’s letter on inflation failure to the government should be made public, Das reiterated that he did not have the privilege to release the statement as it was being made according to legal provisions. The usual policy meetings of the MPC are meant for the entire economy, for financial markets and foe citizens of the country, but the same does not apply for the statement explaining why the MPC. “In the case of the letter, which I write, which the Reserve Bank writes to the government, it’s a report sent under a law. I don’t have the privilege, the authority, or the luxury to release a letter like this, which is written under the law as per the legal requirement, I don’t have the privilege, authority or the luxury to release it to the media before even the addressee gets it,” he said. Das said, however, that the contents of the letter would not be “perennially under wraps” and would be available to the public at some point. “Our constant endeavour is to keep an Arjuna’s eye on inflation,” Das said, referring to the archery skills of the character from the Mahabharata. While observing that liquidity conditions in the banking system had tightened in October due to a combination of factors including high currency demand in the festive season, Das said that the strain would likely be transitory. According to the RBI governor, leakage due to currency demand would likely ease after the festival season and that government expenditure would likely pick up after the monsoon season. A key reason that has been cited by analysts for the recent tightness in liquidity is the slow pace of government spending. Moreover, the pace of foreign exchange outflows had moderated, which augurs well for systemic liquidity, he said. Terming synchronous tightening by central banks as the latest global shock, Das said that the rupee had moved in an orderly fashion since the onset of the current geopolitical crisis. The rupee has depreciated 10 per cent against the US dollar so far in 2022. Pointing out that in terms of the real effective exchange rate – which is inflation adjusted – the rupee had gained 3.7 per cent from March to September, Das said that the rupee was the least misaligned “in the face of tsunamis of global spillovers.”
Source: Business Standard
India’s Tripura has proposed to the central government to set up one more multi-modal logistics hub at Udaipur in the state’s Gomati district to boost trade between Bangladesh and India, according to state transport department's special secretary Sandeep Rathod, who recently said work on the state's first such hub in south Tripura's Sabroom is in full swing. A special economic zone (SEZ), an integrated check-post and a food park will be set up for promoting trade and business with Bangladesh in the hub under construction, he said. The proposal comes as the Sonamura-Daudkandi route has already been declared as a 'protocol route' for inland waterway, Rathod was quoted as saying by a news agency. Around 20 acre of land has already been identified for the proposed project, while a process has been initiated to identify 30 acre more, he said. The primary aim is to connect Ashuganj, Chittagong and Kolkata ports with Kaladan multimodal transit facility through Myanmar's Sittwe port, he said. The state government has sought an extension from Sonamura to Maharani via Udaipur for a proposed waterway to Bangladesh's Daudkandi, he said. The state government is also mulling over setting up a trans-trade centre in South Tripura's Sabroom. "A hydrographic survey on the Feni river will be carried out to ascertain the water level before pushing for the plan," the official added.
Source: Fibre 2 Fashion
A new process for digital printing on textiles, developed within a research project at the University of Borås, can now be an important part of the solution for the textile industry to deal with the enormous consumption of water and emissions of hazardous substances, for which the industry is responsible. Together with various industrial partners, the researchers in the project have optimized the printing technology and process so that it is now ready to be used on an industrial scale by developing a new adapted formula of paint and ink that works in the print heads and protocols used in industry. In the project "SusdigiTex—Development of a digital printing process with sustainable inks for functional clothing" the Textile Materials Technology research group at the Swedish School of Textiles has developed and tested a pigment ink and optimized it for single-color prints and patterns. They have mixed and tested water-repellent inks by using components that are free of environmentally hazardous fluorocarbons, which are used as impregnating agents, but which must be phased out. "With this technology, it is possible to get the material exactly where you want it, which makes it possible to save raw materials and reduce the handling of chemicals that remain after production. This project sets the bar for the implementation of sustainable digital printing techniques in textile dyeing, finishing and functionalization," said Junchun Yu, Senior Lecturer and member of the research team. FOV fabrics AB has for many years had several research collaborations with the university regarding digital printing technology. Fredrik Johansson, business developer, explained that "collaboration with the university has contributed to our investing in digital printing technology based on several research projects over ten years with funding mainly from the Knowledge Foundation and Vinnova. We see that the research that is being carried out is actually eventually producing results and now we are experiencing the conditions necessary to be able to move to an industrial scale. Through this, we are taking a big step into the next generation of production technology, which provides great sustainability effects in that almost no water is used while also ensuring that chemical and energy consumption is significantly reduced." "Digital paint and printing technology is the key to global sustainability and to the survival of the textile processing industry. Although digital printing technology is on the way to industrial implementation, the potential of these technologies needs to be investigated even more," concluded Junchun Yu.
Source: Techxplore
• China’s exports to India increased by 31 per cent to US$89.6 billion in the first nine months of this year, compared to the same period in 2021 • India is attempting strategic decoupling from China, while trying to boost domestic manufacturing and capitalise on global investors’ efforts to diversify India’s trade with China is thriving despite efforts to reduce reliance on its neighbour and bolster its own manufacturing base. China’s exports to India increased by 31 per cent to US$89.6 billion in the first nine months of this year, compared to the same period in 2021, according to data from China’s General Administration of Customs. Indian exports to China – its largest trading partner, according to Beijing – declined by 36.4 per cent in the same period, falling to US$13.9 billion between January and September. Bilateral trade, meanwhile, is on track to exceed the previous high of US$125.6 billion last year, and was valued at US$103.6 billion in the first nine months. “India’s exports to China are mainly raw materials, which are highly substitutable in the international market,” said Lin Minwang, deputy director of the Centre for South Asian Studies at Fudan University. “On the contrary, China mainly exports manufactured products to India, and the advantages of Chinese products have been strengthened under the Covid-19 pandemic.” Despite close economic ties, China and India – Asia’s most populous countries – have a long running rivalry that has at various times over the past six decades erupted into clashes along their 3,488km undemarcated border, including most recently a deadly skirmish in the Galwan Valley. Relations plunged to their lowest point in decades after the border clash and stoked a wave of anti-China sentiment that led to boycotts of Chinese consumer goods. India has since cracked down on multiple Chinese telecommunications companies such as Xiaomi and Vivo, alleging money laundering and tax evasion; outlawed more than 270 Chinese apps; and curbed Chinese investments. The actions are seen by many as an attempt at strategic decoupling from China, while trying to take advantage of foreign investors’ efforts to diversify from the mainland by building up its own manufacturing industries. India has implemented various policies such as its production linked incentive (PLI) scheme to reduce dependence on Chinese imports and boost local manufacturing. However, import reliance has only increased. India’s merchandise imports between January and September were valued at US$551.6 billion, of which China accounted for US$79.1 billion, or roughly 14 per cent. Its trade deficit with China has widened to US$75.7 billion, compared to US$46.5 billion during the same period last year. “India’s structural dependence on China is due to electronics and to some extent due to rare earth materials, as there are not enough competing sources of supplies,” said Anil Bhardwaj, secretary general of the Federation of Indian Micro, Small and Medium Enterprises. “For example, Indian companies, especially [small and medium-sized enterprises] find machines and parts from China to be extremely competitive compared to Japan, South Korea or Taiwan. “But it is also true that the structural dependence of India on China is not absolute. India can change the import sources, albeit at a cost.” Ajay Sahai, director general of Federation of Indian Export Organisations, attributed the decline of Indian exports to a slowdown of demand in China due to its zero-Covid strategy. “There was a drop of about US$1.5 billion in our iron ore exports to China during AprilAugust 2022, US$700 million in cotton exports and a significant drop in copper, aluminium, plastics and paper exports in the same period. Most of these inputs were driven by domestic demand which has taken a hit,” he said. Iron ore, iron and steel, raw cotton and cotton yarn were among India’s top exports to China last year, according to the Indian Ministry of Commerce. In May, India levied export duties ranging from 15-45 per cent on iron and steel inputs to ease pressure on domestic manufacturers and stabilise prices, which also had a significant impact on exports. China’s top exports to India include electronic components, computer hardware, telecoms instruments and bulk drugs. India implemented the PLI scheme in 2020 as means to address this dependence by indigenising production of bulk drugs, electronics and telecoms products, among others, and subsidising their sale to make them competitive in global and domestic markets. “The obvious target was Chinese imports. But nothing has happened in two years. If anything, [the dependence] has become worse,” said Biswajit Dhar, professor of economics at the Centre for Economic Studies and Planning at Jawaharlal Nehru University. “You need an efficient production and innovation ecosystem to be globally competitive. That doesn’t seem to be happening.” However, Sahai said the PLI scheme has showed success in the mobile sector, with Apple – most notably – shifting some of its production for the iPhone 14 from China to India. “Electronics and machinery are likely to yield results shortly. Pharmaceuticals and bulk drugs are also likely to get momentum,” Sahai said. Indian industry leaders often complain the country lacks market access in China for products and services such as pharmaceuticals and IT, which India is seen to have a competitive advantage in. “Market access remains a key issue though we have seen some improvements in the last few years. India’s exports of cereals and edible products have increased,” said Sahai. However, he added, “While the Indian pharmaceutical industry has gained respectability with supply of anticancer drugs at very competitive prices, the approval process for Indian drugs is very cumbersome and time consuming.” In the pharmaceutical sector, product registration approvals by the National Medical Products Administration in China can take three to five years, whereas a normal time frame is usually around a year, according to India’s pharmaceutical export promotion council. “The IT industry is also facing market access and non-tariff barriers besides language issues,” Sahai said. Perhaps most damagingly, Dhar said a trust deficit between the two countries is a major issue. “Unfortunately, the prevailing tense political environment is also not helpful in fostering trust between Indian and Chinese businessmen,” he said. “The trade gap therefore remains.”
Source: South China Morning Post
Indonesia’s Yogyakarta reported a significant increase in new COVID-19 cases to over 100 a day in this early November 2022. “There are 124 additional cases of covid in Yogyakarta,” said the province’s general, public relations, and protocol bureau, Ditya Nanaryo Aji, on Tuesday, November 1, 2022. As a result, the active case numbers have again reached almost 1,000, or exactly 986 cases. The spike in cases has been recorded before the end of October with over 50 new cases a day. On October 27 and 29, there were 97 new cases each. From May to September, Yogyakarta successfully suppressed the virus spread at below 50 cases a day on average. “Today’s (Tuesday) COVID-19 confirmed cases come from the results of selfexamination at 55 cases, tracing of close contacts at 16 cases, and 53 suspected cases,” said Ditya. Although the cases increased significantly, there were no additional deaths. Sleman reported the highest number of additional cases at 50, while Gunungkidul Regency logged the lowest daily case number at 8. Yogyakarta’s Gadjah Mada University (UGM) lecturer at the Faculty of Medicine, Gunadi, asked the public and the government to be aware of the recent upward trend in covid cases which are triggered by the Omicron XBB subvariant in a number of countries. 26 Countries Report Cases of XBB Infection As of the end of October, at least 26 countries had reported cases of XBB infection, including Indonesia. “The public needs to remain vigilant and strengthen the health protocols related to this Omicron XBB subvariant, but don't worry too much,” Gunadi said, calling on people to immediately complete the primary COVID-19 vaccination course and get the booster dose.
Source: Tempo
• Scope 3 emissions come from a company’s value chain, upstream and downstream. • Circular economy approaches that decrease the dependence on raw materials, build collaboration to close loops and keep materials in use at the highest possible value are crucial to addressing Scope 3 emissions. • Companies, innovators, government and financiers must come together to scale pilots to accelerate the transition to a circular and net-zero world. COP27 is another crucial milestone in our race to a net-zero world. The past years were marked by companies focusing on addressing direct emissions from company-owned and controlled resources, as well as emissions related to the generation of purchased energy, steam, heat and cooling. In other words, emissions from activities at the firm level. These are Scope 1 and 2 emissions and reporting on these emissions has been commonplace for several years, mainly in response to mandatory reporting requirements. The real emission production, however, lies in what’s called Scope 3, or emissions from a company’s broader value chain, upstream and downstream. While reporting on Scope 3 is more sporadic with limitations on data availability and materiality considerations that vary between different organizations, it’s where companies can guarantee significant emission reductions that will ensure they contribute to achieving the goals of the Paris Agreement and future-proof their business models. In line with this, the International Sustainability Standards Board announced that the climate reporting standard will now include mandatory reporting on Scope 3 emissions. Crucial to addressing Scope 3 emissions are circular solutions. These decrease the dependence on raw materials, build collaboration to close loops and extend product life cycles and keep materials in use at the highest possible value for as long as possible. Companies are now starting to recognise the role of circular economy solutions to achieve supply chain resilience and address embedded carbon. Here are three ways companies and organizations implement circular solutions:
Enhancing material traceability and supply chain transparency Knowledge is power - the more we know about how our supply chains work, the more focused approaches can be to close loops and concentrate on resilience. In the UK alone, 35% of consumers are more likely to trust companies that have transparent, accountable and socially and environmentally responsible supply chains. Supply chain transparency is necessary to not only report on and monitor Scope 3 emissions, but to make it easier to tackle these emissions, both upstream and downstream, to future-proof business models. Assessing supply chains is less complex in some industries than in others. Textile market leaders, such as Patagonia, use systems mapping exercises to certify their suppliers, but also to make the consumer aware of where their materials come from. Even in supply chains where this is harder to realise, companies, such as Holcim, use due diligence mechanisms at the beginning of their supply chains to get a better understanding of the environmental and social impact of their cement.
Embracing the power of technology and innovation The extraction and processing of resources is associated with approximately 50% of all global greenhouse gas emissions. That’s why a circular economy focuses on keeping raw materials in use at the highest possible level for as long as possible. This requires companies heavily dependent on natural resources to rethink business models and use technology and innovation to minimise their material footprints. There’s an influx of new companies building circular business models and established companies rethinking how to build more sustainable brands. In the mining industry, Anglo-American runs its Future Smart Mining programme. This allows the company to target desired metals and minerals, delivering more than a 30% reduction in the use of water, energy and capital intensity: producing less waste in the journey towards carbon-neutral mining. Another example is Nokia. It recently launched Circular, a subscription model that gives customers access to Nokia Devices, rewarding clients for holding on to their phones for longer and preventing them from going to landfill. Customers don’t own their phones, they lease them. They can trade it in for a new one, after maximising its life. With ewaste being the fastest-growing waste stream globally, innovations like these are crucial. De-risking circularity by increasing investment While there is a circularity surge across different industries to adapt business models, scaling these approaches requires a significant increase in investment. With more attention to the price volatility of natural resources and supply-chain failures, companies are faced with addressing the flaws in the linear production and consumption model, whether they are ready or not. The financial sector must follow suit. The EU’s Circular Economy Action Plan lays the foundation to increase investment in circular approaches. Between 2016 and 2020, the EU put forward over €10 billion of public funding across programmes to stimulate innovation, strategic investments and small and medium-sized enterprise development. With a framework for implementation and updates to environmental and economic regulation, the EU is taking significant steps to build a stronger case for circularity. While policy is critical, a key lever is rethinking our broader investment model. Circularity must become the norm. The Responsible Investment Benchmark Report for Australia points to an investment increase in the circular economy, waste management and zero waste from 4% in 2020, to 39% in 2021 in Australia. Blackrock, for instance, increased investment in circular economy solutions by creating a fund where at least 80% of its assets are invested in company shares that benefit from and/or contribute to the circular economy. Investment depends on a company’s rating, based on its ability to manage risks and opportunities associated with the circular economy and its ESG risk opportunity credentials. It’s clear that addressing the climate crisis depends on us changing the way we look at our value chains. Collaborating across these to eliminate waste, address decarbonization and protect nature is the only way forward. Companies, innovators, government and financiers must come together to re-evaluate the risks of existing business models and enhance collaboration and scale pilots to accelerate the transition to a circular and netzero world.
Source: World Economic Forum
