The Union Minister for Commerce and Industry, Textiles and Consumer Affairs, Food and Public Distribution Piyush Goyal inaugurated the new corporate office building of Export Credit Guarantee Corporation, at Andheri, Mumbai today. Inaugurating the ECGC Bhawan, the Union Minister said that as we are in our 75th year of independence, it is most appropriate that we must cross 750 billion dollars of exports this year. “With great responsibility and confidence, I am happy to share that figures until February 2023 are already in excess of what we did in the whole of last year, and we will certainly close this year with well in excess of 750 billion dollars of exports, another all-time historical record.” The Minister made a pitch for ECGC to become more modern and digital in its operations, leading to greater efficiencies, greater trust among exporters and improved performance. “We have to leave our children an India which is completely corruption-free. We have to be unsparing against anyone who indulges in any irregular activities. If we want to make India a superpower, we have to make a decision that we want the New India to be with a high degree of integrity, a collective endeavour of government, industry, bodies like ECGC, EXIM Bank and other stakeholders. ECGC has to be very conscious of tracking what is happening, transparency in our working, ease in operations, being helpful, converting into online operations as much as possible. We should trust the exporter unless there is a reason not to trust someone and have completely digital online interactions with them, with transparent operations. I would urge ECGC to relook at all your processes. I would urge the industry to help us clean up the India story so that it is a story which the world will envy.” The Commerce and Industry Minister complimented ECGC for innovative measures like introduction of policy where exporters with export credit limit of Rs. 20 crores are covered up to 90% of their losses, which he said used to be 60% earlier. “All pending claims are now put out online transparently. As we inaugurate this truly world-class building, I would request the CMD ECGC to move the Rs. 20 crore export limit to Rs. 40 crore, so that sectors other than gem and jewellery and commodities sectors are covered under this expanded credit risk cover regime of 90% for any potential risk or loss. In return, we want the industry to assure full honesty and integrity in claims and in the way we work with ECGC. Gradually, we want all of you to enjoy the fruits of working with ECGC. We want more exports to enjoy these benefits, we cover around 22% - 25% of merchandise exports, we should aim to go up to around 50% so that almost MSMEs can benefit from these schemes and enjoy lower interest rates.” The Minister urged ECGC to see what more we can do to promote exports, come up with new ideas and become an important stakeholder in India’s journey to take our exports to 2 trillion dollar exports by 2030 – a trillion dollar of exports in services and in goods each. “Then, we can set other goals in line with the goals of a developed India, an India which will truly become a Vishwa Guru. As India prospers, the world will also prosper along with it." The Commerce and Industry Minister said that the newly inaugurated Vanijya Bhawan in New Delhi is the beginning of how the Government of India is going to look like across Ministries in Delhi. “Visitors from all across the world including senior Ministers and Prime Ministers are all amazed when they see Vanijya Bhawan, to see how modern, digitalized and efficient yet architecturally connected with India it is. This is the vision of our Prime Minister Narendra Modi, that our workplaces should define our work.” The Minister remarked that today, ECGC is showcasing to the world that they will work towards empowering enterprise expansion, encouraging business ideas, promoting business ideas beyond boundaries and instituting a healthy business environment. “All these goals are reflected in the new office building we have joined to celebrate the inauguration of. The office is a reflection also of the new India which today contributes hugely to global growth, which will continue to be the fastest growing large economy for several decades to come. The New India has capabilities beyond imagination, where every young child is aspiring for a better quality of life.” The Minister highlighted the importance of international engagement, in order to become a developed nation. “We have to look at greater international engagement, because no country in the world has become a developed nation without engaging in a big way in international trade. We have to build up that culture of an economy and ecosystem which can work with the best in the world from a position of strength, with full self-confidence.” The Minister asked the audience what kind of India we want to leave for our young generation. “Over the years, government somehow over the years did not think of modernizing itself, making it more contemporary. Tons of files used to be there at offices, reflective of a colonial system. The Prime Minister has given us this big vision for India@100; we will have to think afresh of what kind of a country we are going to evolve into, what are we going to leave behind to our children? Are they going to inherit what we inherited, or we going to give our youth a modern contemporary India which can give them the confidence and pride which they truly richly deserves?” The Minister said that the five-fold resolve as announced by the Prime Minister will enable us to become a prosperous nation. “When the Prime Minister speaks of Panch Pran, he spoke of India becoming a developed nation by 2047 and four other commitments including unshackling us from our colonial past, going back to our roots. The respect which comes out of our culture and family values and tradition will keep us in good stead. The unity and integrity of India and our philosophy of the world as one family is another thing which he has spoken about. If we desire to make India a developed nation and pursue our ambitions with a sense of duty, there is absolutely no power which can stop India from becoming a prosperous nation.” Joint Secretary, Ministry of Commerce and Industry, Vipul Bansal expressed the hope that the new corporate office of ECGC turns out to be the greenest building we have here. “I am proud that the performance of ECGC has been very good over the last two years. The growth in premium has exceeded our total export credit, hence our market share is improving, our insurance coverage on our exports is improving.” The Joint Secretary observed that the ECGC has a higher-than-required solvency ratio and hoped that the company expands to reach the smallest exporters of the country. The JS said that ECGC is planning to move to the state-of-the-art IT system called SMILE. “The GIFT city branch has to be made operational. We hope that the claim disposal ratio reaches all-time high in the coming months.” President, Federation of Indian Export Organisations, Dr. A Sakthivel said that with the active participation of the Commerce Minister, India was able to cross 420 billion dollars in exports in the previous year. “I am very confident that we will cross 800 billion dollars exports for the current financial year. It is the first time that our missions abroad are actively working to promote our exports.” Welcoming the guests, CMD, ECGC, M. Senthilnathan said that the company which provides credit risk insurance services has set up a network of 46 branch offices and 4 regional offices in prominent export-oriented locations of the country. He said that ECGC supports exporters in protecting existing markets and exploring new markets. More than The CMD assured that the ECGC will leave no stone unturned in playing its role effectively in helping exporters tap into our export potential. ECGC Ltd. (Formerly Export Credit Guarantee Corporation of India Ltd.), wholly owned by Government of India, was set up in 1957 with the objective of promoting exports from the country by providing Credit Risk Insurance and related services for exports. It functions under the administrative control of Ministry of Commerce & Industry, and is managed by a Board of Directors comprising representatives of the Government, Reserve Bank of India, banking, and insurance and exporting community. Over the years it has designed different export credit risk insurance products to suit the requirements of Indian exporters and commercial banks extending export credit. ECGC is essentially an export promotion organization, seeking to improve the competitiveness of the Indian exporters by providing them with credit insurance covers.
Source: PIB
The Centre has taken steps to enhance exports by micro, small and medium enterprises (MSME) sector by setting up facilitation centers across the country, an official said on Thursday. The export facilitation centers will provide the requisite mentoring and handholding support to the sector and also help to set up a network of entrepreneurial leaders, the joint director of Indian Enterprise Development Service (IEDS) under the union MSME ministry, D Mitra told a seminar here, The Centre will also help the entrepreneurs of the sector to ensure marketability of their products and services by way of visiting and participating in seminars, exhibitions and conferences, he said. Support will also be given in areas like technology infusion, exploration of business opportunities and forging joint ventures, he said. According to the MSME ministry, the market is getting bigger with the advancement of digital technologies and opening up of more export markets. Mitra said this is the time to sensitise exporters about the present and future potential of export promotion for growing the business. The MSME ministry is working to make the units familiar with digital marketing, procure from Government E Marketplace and adapt to public procurement policy. According to government statistics, the share of MSME products in national exports is in excess of 34 per cent.
Source: Economic Times
Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal said that the export figure for last year had already been crossed in February and expressed confidence that merchandise and services exports would touch USD 750 billion this year. He was addressing the 8th edition of the Raisina Dialogue in New Delhi today. Responding to a question on India achieving the highest export figure in the past year, the Minister said that it was the result of a deep-dive analysis and extensive planning where India’s capabilities were thoroughly assessed, new markets were sought out, districts, especially remote ones were empowered to become export hubs and all Indian Missions abroad were effectively leveraged to promote trade, technology and tourism. The Minister noted that last year, merchandise and service trade had crossed USD 650 billion. Shri Goyal opined that the transformational initiatives undertaken by the government over the last decade, such as the Swachh Bharat Mission, electrification of around 35 million homes in rural India, creation of a robust power grid, housing for all, free healthcare for over 500 million people had held India in good stead to overcome the challenges posed by the pandemic. He lauded the Prime Minister, Shri Narendra Modi’s decisive leadership and said that all through the pandemic PM Modi constantly sought ideas not only to overcome the pandemic but to transform the challenges it posed into opportunities. Responding to a query on global uncertainty caused due to conflict, Shri Goyal said that these turbulent times had given India an opportunity to showcase its resilience. He explained that food security had emerged as a serious challenge before the world and said that PM Modi had the foresight to plan ahead to fortify India’s food security by ensuring an adequate supply of fertilizers. Speaking of the time when fertiliser prices hit the roof, Shri Goyal said that PM Modi had ensured that farmers, especially small and marginal farmers did not take a hit by taking the burden of the increased prices on the central government. ‘India is self-sufficient on food security, and we will continue to produce at greater levels than last year so that we can support some of our neighbours and other friendly nations’, he said. The Minister stressed that the government had been creating an enabling environment to attract investment into India. He highlighted that India was a nation of 1.4 billion people who are both youthful and aspirational with excellent skills, including managerial skills. He observed that the government had been successful in meeting the basic requirement of life of the people, liberating them from he struggle to secure the basic amenities of life, thereby empowering them to aspire for better things in life. These enhanced aspiration levels, the Minister said, presented a huge market opportunity to investors, in addition to sharpening India’s competitive edge in the world market due to the willingness people have to work harder and contribute more to India’s growth story. ‘Government has focused on greater Ease of Doing Business, reducing compliance burden, decriminalising laws, implementing PLI scheme in critical sectors, digitising the economy promoting Startups. The world will not get a better friend and trusted partner like India’, he noted. The Minister responded to a query on semiconductors and said that many companies were already in dialogue for investing in India in the semi-conductor chain because of the India’s stability and investor-friendly business ecosystem. Demystifying the reasons behind India’s trade deficit and import reliance, the Minister stressed that with the high levels of investments coming into manufacturing in India, India had been succeeding in producing high quality goods and services at competitive prices, rapidly reducing reliance on imports. He underscored that the government was focusing extensively on bringing in quality consciousness through various initiatives such as Quality Control Orders (QCOs). The Minister also mentioned that the number of QCOs had grown by over four times and stands at about 440 products now and in the next two years, it would grow upto 2000 helping achieve India’s aspiration of achieving ‘Zero Defect, Zero Affect’. The Minister spoke of India’s sustainability thrust and said that since time immemorial, respect for nature was deep rooted in India’s civilizational ethos. ‘Sustainability and quality are the two factors that will hold India in good stead in the times to come’, he added. Shri Goyal said that India would soon touch the mark of being a USD 5 trillion economy and said that it would emerge as the third largest economy in the world by 2027-28. By 2047, India will be a developed economy with a USD 32 trillion economy, a prosperous economy where every last citizen would have access to a good quality life, he said and added that if the nation came together as one, India could even dream of building a USD 40 trillion economy by 2047.
Source: PIB
Given the global uncertainty and expectation of slower economic growth in the next fiscal, the government is looking at a possible extension of the Emergency Credit Line Guarantee Scheme, meant primarily for Micro, Small and Medium Enterprises (MSMEs). The scheme, started in May 2020 amidst the pandemic, may be extended by six months from March 31, 2023, an official source said, adding that a final decision would be take soon. The thinking arises at a time when the economy has recovered from the pandemic but small and medium enterprises are seen to require more support and hand-holding as many of them are still struggling. Also, export-intensive sectors are expected to be impacted by the slowdown in global demand, and many of these sectors including textiles and garments, leather and chemicals, largely consist of MSMEs. However, another source pointed out that the scheme has served its purpose with the pandemic now behind us and there are adequate channels of liquidity available for small businesses. The Union Budget 2023-24 did not broach the issue but did announce a fresh set of measures to help MSMEs. The finance ministry is understood to have discussed all these issues related to implementation and efficacy of the scheme with banks. Announced as part of the Atmanirbhar Bharat scheme, the ECLGS aimed to provide additional liquidity to eligible MSMEs to meet their operational liabilities and restart their businesses in the aftermath of the disruption caused by the Covid-19 pandemic. The scheme has however, been extended twice already – the first time in September 2021 by a six-month period. It was then extended in the Union Budget 2022-23 until March 31, 2023 with its guarantee cover expanded by Rs 50,000 crore to `5 trillion and the additional amount earmarked for hospitality and related industries. According to data with the National Credit Guarantee Trustee Company Limited (NCGTC), which is the agency operating the scheme, guarantees amounting to Rs 3.61 trillion were issued, benefitting 11.9 million borrowers as on January 31, 2023. Of these, 95.18% of the loans guaranteed amounting to Rs 2.39 trillion or 66.16% in value terms, were to the MSME sector. An SBI Ecowrap report in January this year said that its analysis showed that trading sector such as kirana shops etc benefitted the most from the scheme, followed by food processing, textiles and commercial real estate. Private companies benefitted the most, followed by proprietorship firms, it further said. Amongst states, Gujarat has been the biggest beneficiary, followed by Maharashtra, Tamil Nadu and Uttar Pradesh. Industry experts however, noted that extending the scheme without addressing some design issues will not help MSMEs. KE Raghunathan, National Chairman, Association of Indian Entrepreneurs, said, “Extending the ECLGS with an additional amount or an additional time period makes no sense unless the eligibility criteria are relaxed. Industry associations had, at the time of the launch of the scheme itself, pointed out that the rider conditions relating to account status and outstanding loan criteria make it difficult for many MSMEs to avail the scheme. Further, banks insisted on additional security for the facility. A number of banks did not give the loan to the beneficiary but were adjusting it against the moratorium dues and outstanding statutory payments.
Source: MSN
For the first time, textiles ministry will provide a platform to women-led startups to showcase circular products -- which are largely based on textile waste-- at an exhibition next week For the first time, the textiles ministry will provide a platform to women-led startups to showcase circular products -- which are largely based on textile waste -- pre or post consumption-- at an exhibition next week. As part of the International Women's Day celebration, the ministry of textiles is organising a week-long celebratory programme at Handloom Haat, Janpath, New Delhi. "As the consumers especially in developed markets are becoming more and more discerning and conscious of their carbon footprint and the environmental impact as an industry, we would also have to gear up," textiles secretary Rachna Shah said. Another textile ministry official observed that internationally there is a movement towards circular economy and lifestyle. Circularity in textiles is also catching up especially with new regulations coming in from the EU and US. "Most of our export obligations are covered by circularity. We find that many women-led startups have ventured into schemes where they take post consumer waste and try and convert it into new products so waste gets back into production cycle and we retain the value of the product for a longer time," said the official. She added that based on the new trend the ministry is looking at women-led startups and giving them an opportunity through the exhibition to showcase their products. "This is the first time that the ministry is venturing into giving a platform for circular products which are largely based on textile waste - pre or post consumer," said the official. EU has already declared its roadmap for circular textiles and it is going to kick in from 2025. In this 75th year of India's independence, 75 stalls will be put up by women handloom weavers, craft persons, entrepreneurs, designers. Many of these are master craft persons and national awardees and women-founded/led organisations. Circularity in textiles aims to shift from the take-make-dispose linear value chain into a circular system where value is retained for a longer period. Circularity in fashion underlines a major gender narrative by including women at the centre of the transformation. "To honour and motivate such change makers across the value chain, special focus is on circular strategies, processes and end products that go beyond the traditional linear model and focus on extending the life of the product," an official statement said. "Invitees are women-founded/led organisations who are focused on reducing waste in the value stream by employing different circular strategies like recycle, repair, reuse/remanufacture, rental and resale," it added.
Source: Business Standard
According to a CRISIL report, this will be driven by reduced imports from China, lower raw material prices, increased price discipline with consolidation in industry and also a healthy domestic demand. Polyester yarn makers will see improvement in operating profitability by 100 basis points (bps) on-year, despite an expected drop of 3-5 per cent in price realisation. According to a CRISIL report, this will be driven by reduced imports from China, lower raw material prices, increased price discipline with consolidation in industry and also a healthy domestic demand. The improvement in profitability comes after a sharp decline of ~400 bps estimated for the current fiscal to ~7.5 per cent. “Next fiscal, domestic consumption in China will normalise, leading to lower threat of cheaper imports from that country. Consequently, we expect operating profitability of Indian polyester yarn makers to improve by 100 bps (on-year) to 8-8.5 per cent next fiscal,” said Gautam Shahi, Director, CRISIL Ratings. An analysis of 20 players in the segment by CRISIL indicated that better profitability, coupled with modest capital expenditure will keep the credit profiles of polyester yarn manufacturers stable in the next fiscal. Also, prices of purified terephthalic acid (PTA) and mono-ethylene glycol (MEG), which account for 80 per cent of the raw material cost of polyester yarn manufacturers, are expected to moderate next fiscal. Not only the price moderation, PTA capacities too are expected to increase 15-20 per cent over next fiscal. This will, while enhancing the availability of raw materials, also keep prices in check. Further, with the consolidation of the industry and many large players coming to the fore and acquiring as much as 20 per cent of the total capacity, price discipline in the sector has improved. “In addition, domestic demand for polyester yarn will be healthy, given a growth outlook of 8-10 per cent for the domestic ready-made garments segment and an expected recovery in demand for home textiles next fiscal,” said Sushant Sarode, Director, CRISIL Ratings. Polyester yarn is a cheaper substitute for cotton yarn and increasing polyester blending will continue to drive healthy demand for polyester yarn makers, he added. The sector is expected to incur modest capacity addition (around 6-7 per cent of the capacity) next fiscal while working capital is expected to remain stable with decline in realisation. That said, key monitorables for the sector will be volatility in crude oil prices and any further lockdown in China, which might impact the demand-supply situation.
Source: Financial Express
As many as 92,000 weavers and artisans got placement in the ‘Samarth’ scheme, the demand-driven and placement-oriented umbrella skilling programme of the ministry of textiles since 2020, said Textile ministry Secretary Rachna Shah. The secretary said that the scheme penetrated 28 states and six Union Territories of the country, and caters to all the sections of the society including Scheduled Caste (SC), Scheduled Tribe (ST) and other marginalised categories. Of the skilling target of 3.47 lakh beneficiaries allocated so far, 1.5 lakh beneficiaries have been provided training, she said. “More than 85 per cent of the beneficiaries trained so far under the scheme are women. More than 70 per cent of the beneficiaries trained in organised sector courses have been provided placement,” she said. The ministry has partnered with 116 textile Industries/industry associations, 12 central/state government agencies and three sectoral organisations of the ministry for undertaking training programmes under Samarth. To broad base the panel of implementing partners, the ministry has invited proposals for empanelment from the textile industry and industry associations, related to the sector. The portal for the submission of applications is open till March 14. The implementation period of the scheme is up to March 2024. Samarth scheme was formulated under the broad skilling policy framework adopted by the ministry of skill development and entrepreneurship. Samarth aims to incentivise and supplement the industry’s efforts in creating jobs in the organised textile and related sectors, covering the entire value chain of textiles, excluding spinning and weaving. According to a statement from the ministry of Textiles, the training programme and course curriculum have been rationalised keeping in view the technological and market demand of the domestic and international economies. In addition to the entry-level skilling, a special provision for upskilling/re-skilling programme has also been operationalised under the scheme towards improving the productivity of the existing workers in apparel and garment segments. ‘Samarth’ also caters to the upskilling/ re-skilling requirement of the traditional textile sector such as handloom, handicraft, silk and jute. The scheme is implemented through implementing partners (IPs) comprising the textile industry, industry associations, state government agencies and sectoral organizations of the ministry of textiles like Development Commissioner Handloom, DC/Handicrafts and Central Silk Board. Samarth has been formulated with advanced features such as an Aadhaar-Enabled Biometric Attendance System (AEBAS), Training of Trainers (ToT), CCTV recording of the training programme and a dedicated call centre with a helpline number and mobile app, according to the ministry statement. The major processes/procedures adopted in the implementation of the scheme are Training Centres proposed by the implementing partners are to be physically verified through dedicated Government agencies to ensure the adequacy of requisite infrastructure as per the protocol adopted for each course under the scheme. Furthermore, a total of 184 courses aligned with the National Skill Qualification Framework (NSQF) have been adopted under the scheme across various textile segments covering the traditional sector like handloom/ handicrafts to conventional sectors like garmenting to advanced sectors like technical textiles, according to the ministry statement. In addition, end-to-end digital solution for ease of implementation and monitoring. Employment linkage is mandated in the courses under the organised textile sector with the mandatory placement of 70 per cent in entry-level and 90 per cent for upskilling programmes. Also, a mobile app for physical verification of the training centres with geotagging /time-stamped photographs.
Source: The Print
While the Centre is targeting 10 to 12 areas in technical textiles for exports including protective textiles, it expects a quicker export growth initially in agrotech, packtech and geo textiles. 75 percent of handloom and textile artisans and 85 percent of the 1.5 lakh textile sector workers trained under the SAMARTH scheme are women. 18 applications from 13 states for PM MITRA parks are in advanced stage of consideration by the Union Government. Rachna Shah, Secretary with the Ministry of Textiles, told CNBC TV18 that the government expects the $150 billion textiles' sector to grow to $250 billion by 2030, and is targeting exports worth $10 billion only for technical textiles in the next 5 to 6 years, up from the cumulative textile exports of $2.5 billion as of now. Stressing on the need for quality consciousness in the textile sector to compete on the international level as well as conform with safety standards, she said that around 100 products are being aimed for Quality Control Orders (QCOs). While the Centre is targeting 10 to 12 areas in technical textiles for exports including protective textiles, it expects a quicker export growth initially in agrotech, packtech and geo textiles. With the International Women's Day round the corner, the Ministry of Textiles is conducting a week-long celebration from March 6-12 to highlight the work done by women pioneers and start-ups in the sector. Emphasising on the key role played by women in traditional as well as modern manufacturing of textiles, the Secretary pointed out that 75 percent of handloom and textile artisans are women. She added that 85 percent of the 1.5 lakh textile sector workers trained under the SAMARTH scheme are women. SAMARTH is the government's flagship scheme for textiles to create an ecosystem for an adequate and skilled workforce to cater to the rising demand. The scheme is being used to skill new workers as well as upskill existing workers for modern manufacturing as well as traditional textiles and has even placed 70 percent of trained workers in gainful occupations. While the top 5 places as per the number of workers trained by the scheme are Tiruppur, Delhi NCR, Bangalore, Northeast and Varanasi respectively, the top 5 skill sets being taught are as follows: sewing machine operations, handloom weaving, traditional hand embroidery, use of specialised sewing machine and garment checking.
Source: CNBCTV18
India and Sri Lanka are exploring the possibility of using the Indian Rupee for economic transactions and have discussed the initiative that will help in building a stronger and closer partnership through trade and investment-led measures between the two countries. India and Sri Lanka are exploring the possibility of using the Indian Rupee for economic transactions and have discussed the initiative that will help in building a stronger and closer partnership through trade and investment-led measures between the two countries. The High Commission of India here organised a discussion on the use of the Indian Rupee (INR) for transactions between India and Sri Lanka on Thursday. "Representatives from the Bank of Ceylon, State Bank ofIndia and the Indian Bank shared their experiences and informed the audience that they had started carrying out INRdenominated trade transactions through respective Vostro/Nostro accounts after the creation of enabling framework by the Reserve Bank of India (RBI) and the Central Bank of Sri Lanka (CBSL) in 2022," the High Commission said in a statement. The participating banks also outlined the benefits of settlements denominated in INR which includes shorter timelines, lower exchange costs and easier availability of trade credits.
Source: Economic Times
There will be 315 product standards under these orders The government will come up with as many as 58 quality control orders (QCOs) for products such as aluminium, copper items, and household electrical appliances in the next six months, in a move aimed at containing import of the sub-standard goods and boost domestic industry, a senior government official said. The department for promotion of industry and internal trade (DPIIT) is working hard to promote manufacturing of high quality products in the country. “Since 1987, only 34 QCOs have been issued. But now we are coming up with 58 QCOs in the next six months. The main objective is to stop import of sub-standard goods. These mandatory norms will be for domestic and foreign players,” Joint Secretary in the DPIIT Sanjiv told PTI. There will be 315 product standards under these orders. The items, under these orders, cannot be produced, sold/traded, imported and stocked unless they bear the BIS (Bureau of Indian Standards) mark. “These QCOs will be notified within a year after following due process,” he added. He said that the move would also help in providing global markets for domestic goods. In order to facilitate smooth implementation of these orders, particularly for micro and small industries, provisions for additional time periods to get BIS licences and upgrade their testing facilities are being contemplated, he added.
Source: Business Standard
The meeting also recommended three large projects with an investment value of around Rs 28,000 crore and employment opportunities for around 19,000 people, to the HighLevel Clearance Authority (HLCA) The Odisha government on Saturday approved 25 projects with a cumulative investment of Rs 5,827.27 crore which would generate employment for over 25,000 people, an official said. The Odisha government’s nod to the projects under different sectors was accorded at the State Level Single Window Clearance Authority (SLSWCA) meeting chaired by Chief Secretary PK Jena. The meeting also recommended three large projects with an investment value of around Rs 28,000 crore and employment opportunities for around 19,000 people, to the HighLevel Clearance Authority (HLCA). Out of the multiple investment intents garnered during the Make In Odisha Conclave 2022, 16 projects were put up for approval in Saturday’s meeting, the official said. The approved projects are set to be set up in districts like Khurdha, Cuttack, Jajpur, Jagatsinghpur, Mayurbhanj, Sundergarh and Bhadrak. The SLSWCA approved three projects in the plastic sector, which reflect a total investment of Rs 392.10 crore, at Malipada in Khurda district. A total of eight projects received a nod in the steel segment. While three of the units are set to come up at Kalinga Nagar, the rest of them will be developed in various other parts of the state.A total of Rs 2418.49 crore has been invested by these eight organisations from the steel sector. The SLSWCA meeting also approved projects in sectors such as food processing, infrastructure, hospitality, information technology, pharmaceutical and textile.
Source: Outlook India
Indonesia’s fibre exports to India have seen a sharp rise in 2022, increasing by 155 per cent from the previous year. The shipments to Bangladesh also increased by over 15 per cent. However, the exports to China from Indonesia decreased in 2022. Indonesia has large production capacity of man-made fibre, developed mostly by Chinese majors. Indonesia’s exports of fibre to India jumped 155.31 per cent from the shipments of $47.962 million in 2021. The outbound shipment had slipped to $37.090 million in 2020 from $52.500 million of 2019, but it recovered to $47.962 million in 2021. The shipment was $49.576 million in 2018 and $31.752 million in 2017, according to Fibre2Fashion’s market insight tool TexPro. Similarly, Indonesia’s exports of fibre to Bangladesh dipped to $81.198 million in 2020 after reaching $101.343 million in 2019, but it increased to $131.174 million in 2021 and $154.880 million in 2022. Last year, the trade between Indonesia and Bangladesh increased by 17.55 per cent. A reverse trend was seen in fibre exports from Indonesia to China. The exports dipped 21.59 per cent to $69.387 million in 2022 from the shipment of $88.290 million in 2021. The shipment fell to $37.555 million in 2020 from $82.629 million of 2019. It recovered sharply to $88.290 million in 2021 but slipped again in 2022, as per TexPro. China has its own large production capacity of MM fibre. However, Bangladesh is dependent on supplies from other countries. India is also partially dependent on supplies from abroad, but it is making efforts to create large capacity and planning to discourage foreign supplies.
Source: Fibre 2 Fashion
In FY22, China invested around $644 million in Bangladesh Bangladesh will see an increased investment in the textile and clothing sectors in the coming days as the business environment has marked tremendous improvement in recent years, said Calvin Ngan, president of the Overseas Chinese Association in Bangladesh (Ocab). Bangladesh and China enjoy warm relations that will reach a new height in the coming days, he said at the Chinese New Year celebration at Le MERIDIEN Hotel in the capital recently. The event was hosted by the Ocab and Hong Kong Economic and Trade Office in Bangkok. According to the annual report of the Bangladesh Bank, China invested $465.17 million (13.5% of total foreign direct investment in Bangladesh) and Hong Kong invested $179.22 million (5.2%) in the July–June period of FY22, talking the total Chinese investment to $644.30 million. The USA was the top investor with $661.12 million in investment in FY2022, which was 19.2% of the total foreign direct investment, the central bank report shows. A 100% export-oriented Chinese company called the South China Bleaching and Dyeing Limited has invested $150 million in the Dhaka Export Processing Zone (EPZ) with an employment of 10,000 workers and employees. As a rapidly growing multinational organisation in Bangladesh, South China Limited has earned a solid reputation both locally and globally in the textile and clothing sectors over the years. With its state-of-the-art technology and a highly competent management team, the company has successfully etched its brand name worldwide as a reliable manufacturer of textile products. Laying emphasis on people-to-people contact, Calvin Ngan, who is also the managing director of South China Ltd, said, "In China, Chinese New Year also means Spring celebration, it is a moment for gathering, for expressing our thanks and to give blessing to our friends and family." "The Overseas Chinese Association in Bangladesh is home to all Chinese in Bangladesh. Our mission is to foster a relationship between two nations and two cultures. During the past two years, our organisation has worked with authorities concerned to distribute vaccines and donate PPEs to people," said Calvin. "The past three years of the pandemic have been a stormy winter for many of us. Fears and worries loom over our heads. We faced and overcame challenges that were not seen in our generation," he said. "2023 is a very special year. It is the year of the rabbit. The pandemic winter has ended, and spring has come. We see our motherland opening up the border, no more quarantine. Flights between Bangladesh and China are increasing. Economic and cultural activities begin to pick up. We are seeing more Chinese coming to Bangladesh and more Bangladeshi going to China, said the Ocab president. "We are here to seek a win-win relationship between Bangladesh and China. Together we must maintain peace and prosperity for both countries to build a better future for our generations," Calvin Ngan added. Addressing the event, Shah Mohammad Mahboob, director general of International Investment Promotion of the Bangladesh Investment Development Authority (Bida), said the business environment in Bangladesh has marked a gradual improvement in recent years as the country has become a hub of investment in the South Asian region. Under the leadership of Prime Minister Sheikh Hasina, stakeholders are working relentlessly to improve the business environment in Bangladesh, he said. "Bangladesh holds a strategic position in South Asia and Southeast regions, and developed countries have a special interest in the country," said Shah Mohammad Mahboob, expressing hope that Chinese investment in Bangladesh will mark a gradual rise in the coming days. He also said the Bida, in cooperation with the stakeholders concerned, is ensuring OneStop services to entrepreneurs and businesses to invest in different sectors. Director of Hong Kong Economic and Trade Office in Bangkok Sheung-yuen Lee, in his speech, said Hong Kong has become one of the leading investors in Bangladesh, pouring $1.8 billion to date mainly in the textile and energy sectors. Bilateral trade has already reached over $1 billion.
Source: TBS News
Stakeholders from the European Union (EU) and the United States recently met at a roundtable under the EU-US Trade and Technology Council to discuss due diligence for responsible business conduct in supply chains. The exchange focused on promoting labour rights in supply chains, including the elimination of forced labour and the importance of multi-stakeholder engagement in trade policy. Over 400 stakeholders representing various industries and non-governmental organisations (NGOs) met EU and US government representatives to discuss recent developments, potential areas of cooperation and the role stakeholders can play in implementing effective due diligence in supply chains, an EU press release said. They also discussed legislative and non-legislative initiatives in the EU and US addressing labour rights in global supply chains, as well as ways to strengthen stakeholder capacity through sharing best practices to conduct due diligence. They examined a number of case studies of due diligence practices, including in the cotton and textile industry. The conclusions from the event will feed into the next ministerial meeting of the Council, which will take place before the summer in Sweden.
Source: Fibre 2 Fashion
Vietnam is becoming a key logistics and trade hub of the World Logistics Passport (WLP) network due to its strategic position as the transshipment and manufacturing hub of the region, reported Fibre2Fashion. The WLP program’s aim is to assist the flow of global trade, unlock market access and provide economic efficiencies to members. Twenty two enterprises offering logistics services in Vietnam have registered to participate as members of the WLP programme till now. Beside significant development of Vietnam in the logistics sector, the country has also grown fast in the clean energy sector, aquaculture and seafood exports, gains from foreign direct investment (FDI), and more in which the Nordic countries play an important role. They have been strengthening their bilateral relationships and sharing their experiences in each country’s expertise.
Source: Scand Asia
It is time to reduce our dependence on fossil fuels altogether. Energy security is a pressing issue of our time. Without energy security, we can forget economic growth and prosperity. The power outages that Bangladesh has experienced in recent months may have resulted from the volatility in the global energy market, but they did give a glimpse of what may come if Bangladesh does not act now to secure its energy supply. While we suffered our own power outages, other countries in Asia were hit equally badly. Some parts of China suffered power shortages due to the worst heat waves in six decades, which forced manufacturers to close factories that produce all kinds of intermediary goods, such as aircraft parts, electronics, semiconductors, solar panels, and batteries. Meanwhile, electricity shortages tied to extreme heat in Pakistan led to the authorities imposing load-shedding blackouts, which left factories and people without electricity for as long as 16 hours a day. Even the Global North is not immune from the economic impacts of energy security. In the US, California had to ask consumers and businesses to conserve energy or face rolling blackouts. This was due to record-breaking heat. Energy security has a different slant in Europe. The continent's dependence on fossil fuels has been ruthlessly exposed by Russia. Electricity prices in the UK have been up to five times higher than that from the previous year due to its reliance on power fuelled by coal and gas from Russia. It is safe to assume that the world's energy problems will become more dire in the coming years. Keeping this in mind, surely we need to take major steps now to secure our energy supply, both for environmental reasons and to keep the wheels of our economy turning. I came across an interesting piece of information recently: a few years ago, a nuclear engineering professor calculated that just 1.2 percent of the Sahara Desert would be sufficient to accommodate all the solar panels to meet the energy needs of the entire world with solar energy. The professor worked out that the cost of the project would be about $5 trillion, a one-time cost. No one is saying such a project would happen. However, it does show how tantalisingly within reach energy security is, and this is in large part due to the rapid development in solar power technology. European Union President Ursula von der Leyen recently made a speech on Russia's influence on the global fossil fuel markets. She said this was a huge problem, but just part of the problem of an outdated energy market. Her words are worth quoting as they are just as relevant to Bangladesh as they are to the European Union (Bangladesh's largest export market). She said, "The skyrocketing electricity prices are now exposing, for different reasons, the limitations of our current electricity market design. It was developed under completely different circumstances and for completely different purposes. It is no longer fit for purpose." And this is our situation domestically. We are working with an electricity infrastructure that is no longer fit for purpose – which was created for a different time and alternate conditions. It was only last year that Bangladesh achieved 100 percent electricity coverage. Therefore, a return to a state of nationwide load-shedding was bitterly disappointing, although regulators can be forgiven for being caught off guard by the unprecedented nature of global events. We must take this juncture to reduce our heavy dependence on external fossil fuels such as LNG, coal and oil. In fact, it is time to reduce our dependence on fossil fuels altogether. On this front, it was disappointing last year to see that Bangladesh actually ramped up its use of coal-fired power generation to boost the share of coal in its energy mix. Fair enough, this may have been a stop-gap solution to navigate through the challenging circumstances, but it cannot be our future. Solar power is our most realistic option in terms of providing uninterrupted energy supply nationwide and providing the economic stability that reducing our dependence on energy imports brings. I accept that land scarcity will always be a barrier to the large-scale adoption of solar power. However, rooftops of different industries could allow several thousand megawatts of solar power; examples abound of industrial solar rooftop projects in different cities. There is no reason why all our industries cannot harness cheap solar power to meet a significant and growing percentage of their overall electricity demand and contribute to national energy security. Remember, renewable energy such as solar is in its relative infancy compared to fossil fuels. We have barely scratched the surface of the opportunities its widespread adoption may bring.
Source: The Daily Star
