Govt clears 15 R&D textile projects in strategic areas
Govt extends viscose staple fibre QCO implementation by 60 days
Impose anti-dumping duty on polyester spun yarn, Finance Minister urged
Water regulators’ announcement: Punjab industry calls groundwater charges hefty, seeks rollback
Forex kitty rises by USD 1.727 billion to USD 573.727 billion
Capital gains tax should be rationalised; need simpler ITR form for disclosing such income: Experts
Big Data Analytics: Reshaping and systematising the fashion industry
INTERNATIONAL
Netherlands emerging as key export destination for India amid jump in shipments of petro products
EU envoy praises green transformation of Bangladesh’s RMG sector
61% of 2022 imports came from just 3 markets
Pakistan: A case in favour of textile sector
Cambodia, Korea FTA seek more organised approach
NATIONAL
The 5th Mission Steering Group chaired by Union minister Piyush Goyal on Friday cleared 15 R&D projects worth around Rs 32.25 crore in key strategic areas such as speciality fibre, protective textiles, high-performance textiles, geotextiles, medical textiles, sustainable textiles and textiles for building materials. The projects have been approved by the government under the National Technical Textiles Mission. "Encouraging young engineering minds to pursue technical textiles in India is the need of the hour. A broad guideline under start-up scheme was discussed and may be finalised on priority targeting aspiring innovators, entrepreneurs and young scientists," an official statement said Among these 15 R&D (Research & Development) projects, 7 projects of speciality fibres, 2 from protective textiles, 2 from high-performance textiles, 1 from geotextiles, 1 from medical textiles, 1 from sustainable textile, 1 from textiles for building materials were approved. Technical textile machinery and equipment development has been a major challenge which needs collaborative interventions from the government, industry and academia, including commercialisation of the developed machines, Goyal said. The general guidelines for indigenous development of machines and equipment in the application areas of technical textiles under NTTM is a strong-foot forward and needs to be utilised the industry at its fullest, he further emphasised. The minister urged premier public and private academic and engineering institutes and industries to apply under the education and internship guidelines already launched under the National Technical Textiles Mission on priority basis. He also reviewed the progress of previously sanctioned R&D projects under NTTM during the meeting. In addition, the way forward and action plan for propelling India's technical textiles sector was discussed and recommended. This includes wider field-level outreach programmes for research in institutes and industry associations; development of new BIS standards; enact new quality control orders (QCOs); rationalization of HSN codes; mandation of technical textiles' items across line ministries and departments; and identification of specialised skill requirements in the sector.
Source: Economic times
The government on Saturday extended the applicability of Viscose Staple Fibre (VSF) Quality Control Order by 60 days after the textile industry sought more time. Mint first reported about the development on 19 January. The industry was concerned that the short notice of 30 days would make the already-stressed export value chain deprived of yarns and fabrics and hurt textiles exports. Indian textiles exports in December fell 35.50% on year. The Confederation of Indian Textile Industry (CITI) said that the extension will ensure that Indian manufacturers will meet their prior committed schedule. “In exercise of the powers conferred by section 16 of the Bureau of Indian Standards Act, 2016 (11 of 2016), the central government, is of the opinion that it is necessary or expedient to do so in the public interest, hereby makes the following amendment to the Viscose Staple Fibres (Quality Control) Order, 2022…This order shall come into force on the 29th March 2023," as per an official statement. CITI said the Ministry of Textiles had notified the VSF QCO 2022 on 29 December 2022 which was to be implemented “within one month" of notification. However, looking at the import dependency of India on the VSF, specially some nominated categories, and the various procedural issues being faced by the user industry, the request to extend the deadline for the applicability of the notification was made by CITI and other industry associations, Rajkumar added. “Regulatory impact assessment (RAI) is a formal exercise done by developed nations before coming out with a technical regulation. The regulations impact on trade, availability of labs and several such factors are assessed. Consultations should be done and typically at least six months are given to the industry to conform to the new standards," Anil Jauhri, former CEO, National Accreditation Board for Certification Bodies (NABCB) said. Jauhri added that regulation as per WTO should be on grounds of health, safety, environment, deceptive trade practice or national security. If they are not on above grounds they can be challenged in WTO, he added
Source: live mint
Rajya Sabha MP Sanjeev Arora has drawn the attention of Union Finance Minister Nirmala Sitharaman towards the working and survival of spinning mills in the country, especially Punjab. Arora urged the FM to impose anti-dumping duty on polyester spun yarn (PSY) originating in or imported from the Association of Southeast Asian Nations (ASEAN) under the Free Trade Agreement (FTA). In a letter to the FM, the MP said he had made an appeal to impose the duty on the import of the PSY as this would provide a level-playing field to manufacturers. He apprised the FM that domestic manufacturers were liable to pay import duty of 5.5 per cent on man-made fibre, which makes them uncompetitive against the imported product. “It is concerning because the PSY import has increased by 943 per cent during the past five years and import from Vietnam alone has increased by 88 times,” he said. The MP wrote that in August 2021, the Directorate General of Trade Remedies (DGTR) had recommended that the duty be imposed on the PSY originating in or from Indonesia, Vietnam and China. However, an official communication from the Finance Ministry on January 8, 2022, stated, “The Centre, after considering the final findings of the designated authority, has decided not to accept the recommendations”. Arora apprised the FM that the textile industry contributes to 40 per cent of the country’s demand in the shape of man-made fibres and employs more than 6.5 lakh workers. He stated that the government’s decision of not imposing definitive anti-dumping duty on imports of the PSY had cast a shadow on the domestic weaving sector, which was mainly dependent on various types of synthetic yarns. “Another consideration, which can help the textile industry is to make import of man-made fibre free of import duty,” he suggested. On August 5 last year, Arora had raised questions about the duty on import of the PSY in Rajya Sabha. “I hope the FM will seriously consider the matter in the larger interest of spinning mills,” said Arora.
Source: Tribune India
Union Minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal called for the creation of an international network of mentors, investors and entrepreneurs to strengthen the global startup ecosystem. He said that this network must support and inspire startups, act as a team to facilitate exchange of ideas, best practices and funding mechanisms and promote collaborations in Research and Development. He was addressing the inaugural session of the Inception Meeting of the Startup 20 Engagement Group of G20 in Hyderabad today. The Minister said that it is not just the role of individual nations to support innovation and added that it will have to be the collective responsibility of world nations to nurture a global effort to incubate startup ecosystems in all parts of the world, thus creating a global startup ecosystem that is inclusive, supportive and sustainable to address global challenges, Shri Goyal said that India was proud to highlight the progress & potential of the global startup ecosystem as the host nation of G20. He noted that the Startup20 Group had been established under India’s G20 Presidency for the first time, as part of India’s special focus on innovation. The Minister expressed confidence that innovation would be the strongest pillar that would help build a developed India in the Amritkaal. He said that innovation has been a catalytic force for the economy and social and public good. “Innovation in today’s world goes beyond achieving mere economic objectives as it also considers societal inclusion and environment sustainability”, he said. The Minister observed that India had begun its startup journey with the foundation stone laid by the Prime Minister, Shri Narendra Modi in 2016 with the launch of the Startup India Initiative. He said that in the last 7 years, it had helped in fostering entrepreneurship and promoting newer and newer ideas, helping startups grow and flourish by creating an ecosystem that is conducive for growth. He added that the capabilities of our startups in different areas- be it energy, be it financial inclusion, where fintech played an important role, be it our fight against pandemic when remote healthcare and food delivery became very important, be in online learning which is today becoming very natural, be it our work in agri-tech, helped us face a number of challenges. Shri Goyal noted that the world is facing a multitude of global challenges, from climate change to poverty and inequality. He expressed his firm belief that innovation can lead the way in solving these problems. The Minister said that in the Indian startup context, our entrepreneurs are using their creativity and ingenuity to tackle these challenges head-on. He cited the examples of digital public goods like Cowin, UPI and ONDC as means to tackle problems and ensure inclusive growth in India by redefining social innovation. The Minister said that growing participation from Tier 2 & 3 markets that are swiftly embracing latest technology, has pushed envelope for local startups in India with new ideas to succeed. He said that through G-20, India was trying to transfer our expertise, so IndiaStack will be GlobalStack and transform the way people use technology, helping take technology to the common man. He added that developing nations must transform themselves from being destinations for low-cost, outsourced software and support services, to becoming global Tech and Innovation hubs. He also highlighted that India had climbed to 40th rank in the Global Innovation Index (GII) of WIPO taking a huge leap of 41 places in 7 years. Shri Goyal noted that India has been nurturing the innovation spirit right from the school level onwards through Atal Innovation Mission. He said that India also has active programs for supporting startups with many nations around the world. “Some of the prime examples are the Indo-US, Indo-UK, Indo-Australia partnerships where we explore supporting deep tech startups, that contribute to circular economy, and address basic needs like health, water, agriculture, education, financial inclusion etc”, he added. Shri Goyal gave the Mantra of ‘SENSE’ i.e. Share, Explore, Nurture, Serve & Empower for growth of startups. “When I see the enthusiasm all around us, I get a sense of changing mindset, I get a sense of urgency, I can sense that Startup 20 will become a very powerful body which will change the way that the world recognizes and respects startups”, he said. He expressed confidence that the discussions in next 2 days would lay the foundation for strong actionable recommendations for G20 leaders to deliberate and start a Global Startup Revolution, helping us truly make a difference to the future of startups all around the world. Startup 20 will see participation of delegates from G20 nations and nine special invitees from observer countries, representatives from multilateral organizations as well as the Indian startup ecosystem. The group formed under G20 after India assumed presidency is holding its inception meeting from January 28-29 anticipating a productive development of policy recommendations on entrepreneurship and innovation priorities of and across G20 countries for the years ahead. The meeting will create a global narrative for supporting startups and fostering synergies between startups, corporates, investors, innovation agencies, and other key ecosystem stakeholders. G20 Sherpa Shri Amitabh Kant, CEO NITI Aayog, Startup20 India Chair Dr. Chintan Vaishnav, senior government officials and other dignitaries were present at the inaugural session.
Source: PIB
A day after the Punjab Water Regulation and Development Authority (PWRDA) announced the charges to be levied on the industry and other non-exempted users from February 1, several leading industry associations in Punjab demanded immediate rollback of the hefty cost imposed for extracting groundwater in the state. A day after the Punjab Water Regulation and Development Authority (PWRDA) announced the charges to be levied on the industry and other non-exempted users from February 1, several leading industry associations in Punjab demanded immediate rollback of the hefty cost imposed for extracting groundwater in the state. The industry bodies said the charges were high and would make the local manufacturers uncompetitive in a highly cutthroat market. They have been urging the state government to hold prior consultation before putting any such additional burden on the industry. The PWRDA directions, however, do not cover groundwater use for agriculture, drinking, and domestic purposes. Government water supply schemes, military and central paramilitary establishments, urban local bodies, panchayati raj institutions, and improvement trusts are also exempted. CII Punjab chairman Amit Thapar, while terming the charges as extremely high, said the new levy will be detrimental to the industry in the state. “These charges have been imposed without consultation with the industry. These will slow down investment in food, textile, paper, and pharma, and render the industries in these key sectors uncompetitive,” he said without mincing words. Comparing the charges with neighbouring Haryana, Thapar said that they (Haryana government) too had proposed similar charges but did not issue the notification. The maximum groundwater extraction slab for the industry in Haryana is ₹10 per cublic metre as against ₹ 22 notified by PWRDA, he said, pointing out that the industry in Punjab consumes a minuscule 0.7% of the total water extracted in the state. PHDCCI chair, Punjab chapter, RS Sachdeva said the industry is not opposed to paying for groundwater, but the charges should be reasonable. “The state government should hold consultations as promised by it and build consensus before imposing such levies. Till the time this is done, the notification should be put on hold,” he said. Badish Jindal, chairman of Federation of Punjab Small Industries Association (FOPSIA), also termed the decision to exempt agriculture and levy the charge on the industry as lopsided. “What happened to all the talk of promoting industry? If the state has to grow, the secondary sector should also be promoted,” he said. Calling the charges a dampener, Sudershan Jain, president of Knitwear and Apparel Association of Ludhiana, said that industry in Punjab is already burdened with high taxes. “We are already paying charges for use of effluent treatment plants (CETP). These groundwater charges are not justified at all,” he said. The water regulatory body, which notified the cost on usage of groundwater on Saturday, has also imposed charges on commercial establishments such as shopping malls; privately run educational institutions and construction companies in case their monthly usage goes beyond the specified limit of 300 cubic meters. Among the industrial units, bottling plants, sugar mills, liquor factories and steel industrial units are the top targets as using huge quantity of water in day-to-day operations. The cost levied on water usage would depend on the location of the user as 60 blocks particularly in three districts - Ludhiana, Jalandhar, Moga, Barnala and Sangrur plus the urban areas of Amritsar, Ludhiana and Jalandhar would have to pay the maximum, as these fall in the orange zone designated by the PWRDA as most stressed where exploitation of subsoil water is maximum. Here, for water usage ₹ 8 per cubic meter for usage more than 300 to 1,500 cubic meters. There are four slabs and usage above 75,000 cubic meters invites a cost of ₹22 per cubic meter. The PWRDA has asked all these institutions to take permission for drawing water. There are 37 blocks in the green zone and 53 in the yellow zone, with regulatory body having divided the entire state in 150 blocks. Yellow zone blocks fall in the parts of districts - Hoshiarpur, Gurdaspur, Ferozepur and Bathinda and green zone blocks designated by PWRDA are in districts Fazilka, Bathinda, Muktsar, Ropar and Hoshiarpur. Groundwater usage in yellow zone invites a cost of ₹ 9 per cubic meter for usage in the lowest slab between 301 to 1,500 cubic meters and a maximum of ₹ 18 for usage above 75,000 cubic meters. In green zone, the minimum per unit cost ranges from ₹ 4 to ₹ 14. PWRDA will collect the groundwater levy through district level bodies.
Source: The Hindustan times
India’s forex reserves increased by USD 1.727 billion to USD 573.727 billion in the week ended January 20, the Reserve Bank of India said on Friday. This is the second consecutive week of a rise in the kitty after the USD 10.417 billion jump to USD 572 billion during the preceding week. In October 2021, the country’s forex kitty had reached an all-time high of USD 645 billion. The reserves have been declining as the central bank deploys the kitty to defend the rupee amid pressures caused majorly by global developments. In October 2022, the reserves had swelled by USD 14.721 billion during a week. During the reporting week, the foreign currency assets, a major component of the reserves, increased by USD 839 million to USD 506.358 billion, according to the Weekly Statistical Supplement released by the RBI on Friday. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. The gold reserves continued to rise, jumping by USD 821 million to USD 43.712 billion, the RBI said. The Special Drawing Rights (SDRs) were up by USD 68 million to USD 18.432 billion, the apex bank said. The country’s reserve position with the IMF was down by USD 1 million to USD 5.226 billion in the reporting week, the apex bank data showed.
Source: The Financial express
The Budget should bring in a simpler income tax return form for assessees having only capital gains or dividend or interest income, along with simplification of the capital gains tax regime, experts said. Under the income tax law, gains arising on the transfer of capital assets -- both movable and immovable -- are charged to tax under the head 'Capital Gains'. The tax rate is different for different asset classes. Also, depending on the period of holding, the income is classified as short or long-term capital gains and taxed accordingly. With capital markets in India growing at an exponential pace and companies taking the IPO route to raise funds, there is widespread demand that the capital gains tax structure be streamlined. Deloitte India Partner Rohinton Sidhwa said the holding periods for different types of assets and the number of tax rates for different types of capital assets should be reduced to a maximum of 1-2 periods or rates (along with related surcharges). "Economic and commercial rationale dictates that the set-off of all capital losses (particularly long-term capital loss against short-term capital gains) be allowed seamlessly. Finally, the introduction of a single and simpler tax return for assessees (resident & non-residents) earning only capital gains/ dividend/ interest income would go a long way in easing filing challenges," Sidhwa said. The Finance Ministry is already working on a user-friendly common income tax return form for all taxpayers and an announcement to this effect is expected in the 2023-24 Budget to be unveiled on February 1. Nangia Andersen LLP, Tax Leader, Aravind Srivatsan said many startups redomiciling to India and investors across the board have made representations on capital gains regime to be on par with global regimes. The Budget could simplify the capital gains regime, removing distinctions "A single rate for taxation of capital gains be it short term or long term be it equity, debt or hybrid products with a unified treatment of assets held beyond 12 months as long term, allowing a free set of losses and carry forward and deduction for STT (securities transaction tax) would be welcome," Srivatsan said. Shardul Amarchand Mangaldas & Co Partner Amit Singhania said there should be one threshold of holding period viz if assets are held for more than 24 months should classify as long term. "Similarly, the rates of tax among the different classes of assets should be harmonised and simplified to provide one standard tax rate for long-term (like 10 per cent) and short-term (like 15 per cent)," Singhania said. Currently, shares held for more than one year attract a 10 per cent tax on longterm capital gains. A 15 per cent tax, plus cess and surcharge, is levied on shortterm capital gains made on listed equities. Gains arising from the sale of immovable property and unlisted shares held for more than 2 years and debt instruments and jewellery held for over 3 years attract 20 per cent long-term capital gains tax. The I-T Act, however, excludes movable personal assets such as cars, apparel and furniture from the purview of capital gains tax. Depending upon the period of holding an asset, the long-term or short-term capital gains tax is levied. The Act provides for separate rates of taxes for both categories of gains. The method of computation also differs for both categories. Sidhwa said today short term capital gains are already taxed at the highest rates. "Particularly long-term capital loss cannot be set off against short-term capital gains. The set-off of such losses is a commercial necessity and artificially preventing that increases tax costs and is out of tune with economic reality," he said. Srivatsan said the capital gains regime should be such that it enables Indian exchanges to compete fairly with global exchanges. Wealth creation should be stimulated with attractive capital gain taxes. "Indians need to participate in the wealth creation of our successful business, and higher capital gain taxes have been seen to keep business offshore and allow permanent wealth creation outside the country as well as promote overseas exchanges," Srivatsan said. IndusLaw Partner-Tax Shruti KP said ideally, the rates of capital gains tax should also be similar for both resident and non-resident taxpayers. Singhania said listed securities have a holding period of 12 months, and unlisted securities and immovable property have a holding period of 24 months to qualify for long-term capital gains. Other assets have a holding period of 36 months, to qualify as long-term capital gains. "This kind of differentiation creates a concessional tax regime in favour of one class over the other. This should be reconsidered," he said.
Source: Economic times
More than US $ 500 billion value is lost every year due to clothing underutilisation and lack of recycling. Fashion brands produce clothing that does not meet demand. There is always a large gap in the supply-demand equation, and there is no doubt that the fashion industry is the only industry that operates on gut feelings, assumptions and a fragmented understanding of the market and customers. The subjective approach under which the brands work hurt their financials as manual research has strong limitations and so do decisions which are taken based on the fragmented forecasting reports. Given the highly dynamic nature of the fashion industry, data collected and insights gained in the traditional way easily have a 60–70-day gap which makes the products obsolete by the time they hit the market. Every year, one in four online fashion retailers miss the opportunity to make better margins, better forecasts and the right products because they fail to use data effectively in day-to-day decision-making. However, with the rise of big data and advanced analytics, it is possible to leverage both new and old data to drastically alter how fashion retailers decide which style to design and produce. Data generation is quadrupling speedily. As per Raconteur, 463 exabytes of data are generated every day and the global cloud storage is projected to exceed 200 zettabytes by 2025 (a trillion gigabytes make one zettabyte). Thus, it indicates an enormous amount of information available today and in the future. Many industries are being reshaped by data analytics and it’s high time the fashion industry starts looking into it too, particularly the fashion retailers since they can take advantage of harnessing the data to improve the planning and forecasting of products.
Data is not a trend, but a tool to help the industry survive and thrive
Retailers now have access to a wealth of information that can be used to make more informed decisions about product mix, pricing, promotions and more. Analytics can help retailers understand what customers want and need, anticipate trends, optimise inventory levels, improve customer service and ultimately drive sales and profits. Valeriia Povergo, Founder of Dream Dress, a fashion tech start-up that enables fashion consumers to define the right fit without over-ordering says, “Data is critical for retail decision-making, and every solution revolves around it. Dream Dress integrates via API, and the data it generates will assist customers in matching the product search and directing them toward models that suit them. For retailers, it will be extremely beneficial because it will result in receiving the correct order and reducing the number of returns.”
Challenges in effective adoption of data analytics
Earlier, retailers would rely on certain fashion trends remaining popular for many seasons. What makes matters worse is that some retailers are still using outdated methods to try and predict which trends will be popular. As a result, they often end up investing in products that no one ends up buying. As fashion cycles speed up, retailers don’t have enough time to analyse data and act on it. It’s been more and more difficult to predict when a new trend is going to arise and how much it will impact the retailer’s product performance. Earlier there used to be three seasons, but now the trend is towards seasonless fashion which is on the rise and so is speed. The shoppers expect the market to be flooded as soon as the news comes out. Due to the sudden surge in demand, the fashion cycle speeds up creating smaller lead times. Retailers therefore have to adjust their assortment and marketing strategies to keep merchandise in stock. Another challenge relates to unpredictable trends and performances. Customer buying patterns sometimes instantly shift either due to the influence of social media, celebrities, or some fashion movement, creating a ‘bullwhip effect’. Due to such high volatility, brands have to analyse the different sources of data by tracking customer consumption and they need to keep a close eye on competitor campaigns, fashion media and industry news which sometimes becomes a tough task along with the faster fashion cycles. Moreover, the lack of granular performance data also creates a gap, as the retailers need to check the sales of the full body category. Which shirt went along with which trousers and what style of pattern in dresses was a hit becomes challenging for the retailers to predict, especially when competition is stiff. Retailers are still fumbling around and firing shots in the dark to develop a category that is more sellable. The extracting of insights manually becomes challenging and it gets tougher even more due to the different styles and reports from different data sources. Buyers and planner merchandisers invest a long time on a weekly basis to make sense of the data they have from different sources and vendors, therefore, making the process extremely time-consuming.
Shifting to AI applications delivers tangible results
Big Data analytics can help solve the problem by giving retailers a more accurate picture of what consumers are actually interested in. AI product discovery platforms such as Vi-senze provide analysed data upon which decisions can be made immediately. Prominent brands such as Amazon and Zalando have introduced personalised search options to adapt offerings for each customer showing that data-driven fashion is not just a fad but a fundamental industry change toward digitisation and a more customer-centric outlook. Myntra and Ajio are also using visual AI applications to allow customers to search by uploading an image to facilitate product discovery on their platform. Another way retailers are using AI platforms like Intelligencenode is to track the prices of competitors’ products. This allows them to ensure they are offering their customers the best possible prices for the items they need. Accessible data usually provides greater efficiency, faster speed and the ability to stay connected with the consumer. With an automated collection of data and insights’ generation, the information is more accurate and easier to be analysed. For example, the detachable sleeve trend took the market by storm and retailers that coexisted, by mapping through AI applications, invested in the trend compared to retailers that were still confused and struggling with older market trends. According to Forbes, significant fashion companies have harnessed the power of data to personalise the customer experience and have grown digital sales between 30 to 50 percent.
Benefits of accessible data
In today’s business world, investing in AI applications typically helps companies to structure and sort their data. By leveraging data, companies can gain a deeper understanding of their customers and the trends that are impacting their business. In addition, data can be used to streamline operations and improve decision-making. As such, data is becoming a critical part of the retail landscape. Few companies have already understood data analytics’ massive role in bringing greater results to retailers. One such example is the AI platform Exponea, which recommends appropriate tags when adding a new product in-store for greater visibility. Another example could be the Massachusetts-based AI-powered start-up Tru-Fit, which helps apparel shoppers by comparing fit data from brands with the closest products and provides personalised size and fit guidance.
The status quo
However, the adoption of smart data and the insights that these tools might offer are difficult to be implemented in the fashion industry. As per McKinsey, one of the major reasons for this is the lack of high-quality data. Therefore, there is still a great deal of untapped potential for a deeper understanding of market trends and the ability to make better business decisions for fashion retailers. The fashion industry still does not recognise the value of data and views it as a component of core ‘information technology’. Additionally, data extraction in organisations is not done correctly. The industry clearly misses a ‘bridge’ that would help the brands to use and comprehend the significance of data. Sustalytic, a service platform for fashion retailers, has come forward actively to cement this evident gap by using artificial intelligence (visual technology) to give brands data insights into consumer preferences and help predict client demand at the design stage, thus helping them to take accurate decisions and limit unnecessary overproduction. Companies like these aren’t core IT but they provide a connecting segment that benefits the retailers on multiple levels. The industry needs to tap more such service providers.
Source: Apparel resources
INTERNATIONAL
The Netherlands has emerged as India’s third largest exports destination after the US and UAE during April-December this fiscal on account of a surge in shipment of goods such as petroleum products, electronic items, chemicals, and aluminium goods. India’s trade surplus with the Netherlands has also increased from USD 1.5 billion in 2017 to USD 12.3 billion in 2022. The Netherlands has taken over major destinations such as the UK, Hong Kong, Bangladesh and Germany, according to data of the commerce ministry. India’s exports to the Netherlands rose by about 69 per cent to USD 13.67 billion during April-December 2022 as against USD 8.10 billion in the same period previous year, the data showed. In 2021-22 and 2020-21, the outbound shipments to the European country stood at USD 12.55 billion and USD 6.5 billion, respectively. The exports are registering healthy growth continuously since 2000-01, when India’s exports to that nation was USD 880 million. Further, in 2021-22, the Netherlands was the fifth largest destination for Indian exports as against ninth in 2020-21. Federation of Indian Export organisations (FIEO) Director General Ajay Sahai said the Netherland has emerged as a hub for Europe with efficient port and connectivity with EU through road, railways and waterways. “Petroleum exports went up significantly. During April-November this fiscal, these exports rose from USD 2.7 billion during April-November 2021-22 to USD 6.4 billion as oil companies are using the Netherlands as distribution hub. Aluminium, electrical and electronics and pharma exports also contributed significantly though some of these goods may be finally consumed in Germany or France,” Sahai said. In the calendar year, India’s exports to the country increased to USD 18.1 billion in 2022 from USD 5.5 billion in 2017. According to economic think tank GTRI (Global Trade Research Initiative), ATF (aviation turbine fuel) and diesel were the key petroleum products exported from India to that country. Telecom equipment and smartphones with a value of over USD 1 billion were the largest electronic items, it said. Mumbai-based exporter and Chairman of Technocraft Industries, Sharad Kumar Saraf said the Netherlands is a gateway to Europe as their ports are very efficient hence cheaper than other European ports for shipping operations. India and the Netherlands established diplomatic relations in 1947. Since then, the two countries have developed strong political, economic and commercial relations. In 2021-22, the bilateral trade between the two countries stood at USD 17 billion as against about USD 10 billion in 2020-21. The Netherlands is among top trading partners of India in Europe, after Germany, Switzerland, the UK and Belgium. It is also a major investor in India. During April-September this fiscal, India received USD 1.76 billion in foreign direct investment from the Netherlands. It was USD 4.6 billion in 2021-22. There are over 200 Dutch companies present in India, including Philips, Akzo Nobel, DSM, KLM and Rabobank. Similarly, there are over 200 Indian companies operating in the Netherlands, including all the major IT firms such as TCS, HCL, Wipro, Infosys, Tech Mahindra as well as Sun Pharmaceuticals and Tata Steel.
Source: The Financial express
The Ambassador and Head of Delegation of the European Union (EU) to Bangladesh Charles Whiteley applauded the green transformation of the readymade garment (RMG) sector of Bangladesh. He also said that the EU is proud of being the largest customer of Bangladeshi-made apparel items. “We are proud to be the largest customer of Bangladesh's readymade garments. We had a trade of around $19 billion last year,” he said. He was visiting two of the US Green Building Council (USGBC) LEED-certified garment factories – Mithela Textile Industries Limited and Fakir Fashions Limited – in Naryanganj on Saturday. Regarding Mithela Textiles, he said that he has never seen a factory like this. “The state-of-the-art automation, the attention to detail, the environmental friendliness, every aspect of the operation reflects care, thought and attention. It also reflects the care for the environment and workers," he said. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) organized the visit as part of its move to showcase the strength of the local garments industry. Foreign diplomats and top officials from Germany, Brunei, Vietnam, Saudi Arabia, Norway, Russia, Thailand, Nepal and Australia and representatives from buyers accompanied the EU head of the delegation. Foreign Ministry Senior Secretary Masud Bin Momen, Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Faruque Hassan, president of the Bangladesh Garments Manufacturers Exporters Association (BGMEA), industry people, business leaders and journalists were also present during the visit. BGMEA President Faruque Hassan said that Bangladesh has 184 LEED-certified garment factories, the highest in the world and some 550 factories are in the pipeline of being LEED-certified. “The purpose of this visit was to showcase the progress and development that Bangladesh has made during the last several years after the Rana Plaza collapse,” he said. He expressed hope that it will be possible to meet the export target of the garment industry despite the global challenges. According to sources, RMG exports crossed $43 billion last fiscal year, which is around 81% of total exports. In the first six months of the current fiscal year, about $23 million in export earnings came from this sector.
Source: The Dhaka tribune
The three largest exporters to Cambodia – mainland China, Vietnam and Thailand – accounted for 60.94 per cent of the Kingdom’s total merchandise imports last year, at $18.245 billion, which was up 11.99 per cent over 2021, according to the General Department of Customs and Excise. Cambodia’s total imports grew by 4.32 per cent on a yearly basis to $29.942 billion in 2022, with mainland China representing the lion’s share at $10.446 billion or 34.89 per cent, up 7.86 per cent year-on-year, followed by Vietnam ($3.967 billion; 13.25% share; up 26.20%) and Thailand ($3.833 billion; 12.80% share; up 10.66%). In December alone, total imports dipped by 33.34 per cent on a yearly basis to $2.195 billion, with mainland China again ranked first at $975.790 million or a 44.46 per cent share, down by 11.57 per cent year-on-year, followed by Vietnam ($349.887 million; 15.94% share; up 3.29%) and Thailand ($290.481 million; 13.24% share; down 25.35%). Rounding out the list of top 20 exporters to Cambodia for 2022 were: Indonesia, Taiwan, Singapore, Japan, South Korea, Malaysia, Hong Kong, the US, India, Laos, Australia, the UK, Belgium, Botswana, Germany, Italy and France, according to the General Department of Customs. Of note, Cambodian imports from the southern African country of Botswana saw the largest year-on-year growth in 2022, at 393.6 per cent to $64.079 million, compared to $12.981 million in 2021. Although GDCE figures for individual commodities were not immediately available, data from online portal Trading Economics show that all official Cambodian imports from Botswana in 2021 were in the “pearls, precious stones, metals, coins” category, corresponding to Chapter 71 of the harmonised tariff schedule. Cambodia Chamber of Commerce (CCC) vice-president Lim Heng commented to The Post on January 29 that, as a developing country, the Kingdom requires relatively large volumes of imported raw materials to meet domestic demand as well as to process into export products. He put down Cambodia’s reliance on the big three exporters to proximity, good diplomatic relations, and the generally acceptable quality and prices for their products. Heng predicted that the three markets would remain key suppliers of raw materials and other essential goods for the long-term, stating that Cambodia’s bilateral free trade agreement (FTA) with China would increase two-way export flows going forward. Major imports from these markets include Chinese textiles and other raw materials for export processing, daily necessities, electronics and electrical appliances, fruits, vegetables, foods and beverages, pharmaceuticals and construction materials, he said. Hong Vanak, director of International Economics at the Royal Academy of Cambodia, similarly remarked that demand for raw materials and consumer goods is quite high in the Kingdom, adding that export-oriented production accounts for the “majority” of imports. Still, with GDCE statistics indicating a collective 15.02 per cent on-year expansion in Cambodia’s trade deficit with the three markets, Vanak called for additional public-private efforts to promote the cultivation, production and processing of more local goods to boost supply and reduce imports. “Improving the productivity of SMEs [small- and medium-sized enterprises] is an absolute must and could have a slew of positive effects for Cambodia’s overall economic growth in the future,” he said.
Source: phnompenhpost
After over 75 years of independence, Pakistan is facing serious crises these days. Our leaders have failed to give primacy to the country’s economy even though they have over the years claimed sincerity to the cause. The textile industry is the backbone of the national economy, but the law- makers have never shown seriousness about the growth of this critical and export-oriented sector. Successive governments have launched textile policies for the growth of the sector, but they have failed miserably when it comes to implementing these policies for the betterment of this vital but neglected sector. The textile policy was announced in March 2022 after a gap of two years, but that policy, as expected, remained on paper and was never implemented. The national textile sector is never quite sure about the continuity of policies, especially when it comes to conce-ssionary tariff and duty drawback of their taxes. Owing to policy inconsistency, big players as well as international investors are not interested in investing any further which explains the lack of momentum in the overall national textile sector. It is time we separated politics from economy, otherwise we will continue to set our goals that will remain unattainable owing to lack of policy consistency. Another worrying factor is the continuing menace of smuggling. We have failed to stop smuggling of both foreign exchange and commodities. We have a number of excellent laws, but we hardly implement them in the right spirit for the prosperity of the country. This is mainly because of bad practices on the part of those who are responsible for the implementation of laws in their true spirit. The presence of such elements at the policy level is harmful to the national economy and the growth of the country. The government must take remedial steps to ensure the welfare of the textile industry which has the potential to contribute both directly and indirectly to the national economy.
Source: The Pakistan today
In a bid to promote the new free trade agreement (FTA) between Cambodia and South Korea, the Embassy of Cambodia in Korea organised a forum last week in Seoul. Pan Sorasak, Minister of Commerce, and Sok Chenda Sophea, Minister Attached to the Prime Minister and Secretary General of the Council for the Development of Cambodia (CDC), led the delegation. Sorasak was quoted as saying in The Korea Times report that the FTA would establish a more organized approach between Korea and Cambodia, building on the existing friendship that has existed for decades. “We believe that the two countries have a different kind of level of development and they complement each other in the economy and development. Cambodia is a developing country and we have plenty of natural resources, which need to be explored, whereas Korea has high technologies and is very advanced in many sectors ― agricultural processing, automobiles and electronics. Cambodia can offer natural resources that need to be processed by Korean companies and exported throughout the country and the world,” he said. He said the Kingdom could play a key role in the regional supply chain with a geographical centrality. “We are promoting regional supply capacities and supply chain resiliency. ASEAN is integrated as ASEAN Economic Community and Korea doing trade with Cambodia is actually a part of a greater supply chain,” the minister said, adding: “Korea has investments in, let’s say, Vietnam and Thailand, which are our neighbours. So, we can work and supply as part of the whole big supply chain amongst ASEAN… Korean companies could use Cambodia as a hub to work with other countries in ASEAN.” During the forum, the CDC director general introduced the new Cambodian Law on Investment. “All this brings us to think about a new law that will fit the new situation. Although the situation is changing, evolving every day, but at least our new law tries to respond to the new landscape,” Sophea told The Korea Times. Compared to the former law, which gives incentives for production activities, the new law gives incentives for services such as logistics, which has been considered as a weak point of Cambodia, he said. The CDC chief said the amicable relations between Korea and Cambodia could prompt more Korean companies to invest in Cambodia and vice versa. “If there is a problem between two governments, it will not encourage nationals from one country to go to do business with the other country. (Korea and Cambodia) have gotten closer and closer over the years. Cambodia is the No. 1 recipient of Korean ODAs (official development assistance) and it tells you that the government of Korea pays attention to and contributes to the development of Cambodia,” he said. “We anticipate that Korean companies that have experienced disruptions because of Covid and geopolitical reasons may consider relocating and I ask them to take a look at Cambodia,” Sophea said “In December 2022, the government adopted the roadmap for the development of the automotive and electronic sectors and we wish Korean companies in those sectors to consider that Cambodia has prepared the grounds for their activities,” he explained. Talking at the same function, Ambassador of Cambodia to Korea Chring Botum Rangsay said she was involved in the negotiations for the FTA, which holds a special significance for her. “One of my ambitions is to kick start this FTA by doing this forum to share information and gather interest from the public of both sides. And hopefully, in response, we will build a network to continue to execute this trade and investment deal,” Chring said. Meanwhile, during a meeting with Yu Jeoung Yeol, president and CEO, Korea Trade-Investment Promotion Agency (KOTRA), at its KOTRA headquarters in Seoul last week, Sorasak urged Korean businesses to invest in the processing and packaging of agricultural products in the Kingdom. Investors can look at the prospects of processing and packaging of cassava, rubber, banana, turmeric, mango and other tropical fruits, he pointed out. The minister also applauded KOTRA’s contribution to enhancing Cambodia’s economic development. The minister also talked about the Cambodia-Korea Free Trade Agreement (CKFTA) during his interaction with KOTRA representatives. He pointed out that this is an appropriate time to discuss trade, economic stimulus and increase the use of the CKFTA. Talking about the FTA, Yu reiterated KOTRA’s belief that the CKFTA would further boost trade between the two countries. The CEO expressed hope that the free trade agreement could increase cooperation on digital technology and agriculture. He pointed out that more than 200 Korean companies have investments in Cambodia now. KOTRA is hopeful of attracting more investors, especially in digital technology, agriculture, auto, vehicle parts and wood product sectors. Under CKFTA, Cambodia is expected to receive over 95 percent of the total tariff lines from Korea to export 92 percent of its goods at zero percent customs duty. CKFTA will allow Cambodia to export pepper, banana, cashew nut, potato, pineapple, coffee, fruits, corn, longan, tobacco, meat, aquaculture products, sugar, rubber, apparel, textiles, footwear, bicycles, travel materials, bags, accessories, industrial goods etc. On the other hand, South Korea will be allowed to export electronic devices, automobiles, construction machinery, agriculture machinery, cloth raw material, processed cloth, cosmetics, food, groceries, construction materials, spare parts, etc. CKFTA is expected to help enhance Cambodia’s exports, especially garments, textiles, foot wears, bags, accessories, electronic devices, rubber and agricultural products, to South Korea. The implementation of free trade agreements with China and Korea, along with its entry into RCEP, is expected to boost trade for the country.
Source: The khmertimeskh
