INTERNATIONAL
NATIONAL
The seventh round of India-UK free trade agreement (FTA) talks concluded following technical discussions across 11 policy areas over 43 separate sessions between negotiators from both sides here last month, the British government has said. In an outcome statement released on Monday, the Department for Business and Trade did not give any further details on the policy areas covered, but confirmed that the eighth round of talks is due to take place in a few weeks’ time. “On 10 February 2023, the United Kingdom and the Republic of India concluded the seventh round of talks for an India-UK FTA,” the outcome statement reads. “Technical discussions were held across 11 policy areas over 43 separate sessions. They included detailed draft treaty text discussions in these policy areas. The eighth round of negotiations is due to take place later this Spring,” it said. As with previous rounds, last month’s session was also conducted in a hybrid fashion, with a number of Indian officials travelling to London for negotiations and others attending virtually. In keeping with the norm so far of alternating locations, the next round is expected to take place in New Delhi towards the end of this month. Last week, UK Business and Trade Secretary Kemi Badenoch had reiterated her priority focus on “pursuing a great trade deal with India”. “A deal to cut tariffs and open opportunities for UK services, making it easier for British businesses to sell to an economy set to be the world’s third-largest by 2050,” she said in a speech to the Legatum Institute think tank in London. It coincided with UK Foreign Secretary James Cleverly reaffirming Britain’s commitment to conclude the FTA during his visit to India for the G20 Foreign Ministers’ meeting last week. According to official UK government statistics, the bilateral trading relationship was worth GBP 34 billion in 2022 – growing by GBP 10 billion in one year. The Confederation of British Industry (CBI), the country’s leading industry body, estimates an India-UK FTA could boost trade with India by GBP 28 billion a year by 2035 and increase wages across the UK by GBP 3 billion.
Source: Financial Express
Prime Minister Narendra Modi today asked the private sector to increase investments, following in the footsteps of the government increasing the capital expenditure budget to a whopping Rs 10 lakh crore in the upcoming financial year. “The government has increased outlay on capital expenditure to Rs 10 lakh crore, the highest ever. I would also call upon the private sector of the country to increase their investment just like the government so that the country gets maximum benefit from it,” Modi said at an event today.
UPI, Rupay becoming India’s identity in the world
“India is moving ahead in digital currency. In the 75th year of Independence, 75,000 crore transactions were done digitally via UPI, this proves RuPay and UPI are not just low-cost and highly secure technology, it is our identity in the world,” Modi said. He pitched UPI as a future means of financial inclusion and empowerment for the whole world. “We have to work for it,” he said, adding that there is immense scope for innovation. “Financial institutions should also have a maximum partnership with fintech to increase their reach,” Modi said.
Tax revenue increased 200% in 10 years due to tax cuts
“As opposed to the past, the tax burden has come down significantly in India due to a reduction in income tax and corporate tax. This has resulted in better tax collection. In 2013-14 gross tax revenue was about Rs 11 lakh crore which rose to Rs 33 lakh crore in 2023-24, an increase of 200%. The number of individual tax returns increased from 3.5 crore to 6.5 crore from 2013-14 to 2020-21. Paying tax is such a duty, which is directly related to nation-building. The increase in the tax base is proof that people have faith in the government, and they believe that the tax paid is being spent for the public good,” PM Modi said.
Banking system needs to be supported like MSMEs
“In 2021-2022 India received the highest Foreign Direct Investment (FDI). The need of the hour is that the benefits of strength in India’s banking system should reach the maximum number of people. The banking system needs the handholding of almost all sectors just like we supported the MSMEs. The banking sector which was under stress a decade ago is now profitable,” PM Modi said.
Source: Financial Express
External Affairs Minister S Jaishankar on Monday held a virtual meeting with Russian Deputy Prime Minister Denis Manturov in a bid to give a fresh push to trade and investments. Manturov, who is also the Minister of Trade and Industry, and Jaishankar co-chaired the India-Russia Inter-governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC). “The two sides agreed to work together to unlock the full potential of India-Russia bilateral trade and economic relations including through addressing the trade deficit and market access issues,” a statement from the External Affairs Ministry said. Jaishankar and Manturov reviewed the progress achieved in the various Working Group and Sub-Group Meetings under the IRIGC-TEC framework since their meeting in Moscow in November 2022 and gave guidance to prepare ground for the next in person meeting, which will be held in New Delhi at mutually convenient dates. The Inter-governmental Commission is a mechanism for regularly monitoring bilateral progress across the sectors of trade and economic cooperation between the two countries which was set up by an Agreement on inter-governmental Commission on Trade, Economic, Scientific and Technological Cooperation signed in May 1992. The first session of IRIGC was held on September 13-14, 1994 and 23 meetings of the mechanism have been held so far. The 24th IRIGC-TEC meeting will be hosted by India and Monday’s review meeting will pave the way for the same.
Source: Financial Express
India and the US will hold a commercial dialogue on March 10 after a gap of three years and discuss issues related to trade and investment with a view to further strengthen economic ties, an official statement said on Monday. The last India-USA Commercial Dialogue was held in February 2019. Since then, due to pandemic and other factors it could not be held. "It is proposed to re-launch the dialogue with a strategic outlook with focus on supply chain resiliency and diversification and new emerging areas, after a gap of three years," the commerce ministry said in a statement. US Secretary of Commerce Gina Raimondo will be visiting here between 7-10 March for the dialogue and India-US CEO Forum meet. "During the visit, India-USA Commercial Dialogue and CEO Forum will be held on March 10 to discuss cooperation in various sectors that could unlock new trade and investment opportunities between the two countries," the statement said. The Commercial Dialogue is a cooperative undertaking encompassing regular government-to-government meetings to be held in conjunction with private sector meetings, with an aim to facilitate trade, and maximise investment opportunities across a broad range of economic sectors. Earlier, India-US CEO Forum was soft-launched by Indian commerce and industry minister Piyush Goyal and the US secretary of commerce on November 9, 2022 via a video-conference. The identified key priorities were increasing supply chain resilience, enhancing energy security and; reducing overall greenhouse gas emissions, advancing inclusive digital trade; and facilitating post-pandemic economic recovery, especially for small businesses, it said. India is the ninth largest trading partner for the US, while the US is India's largest trading partner and the largest export destination. In 2022, the bilateral trade in goods crossed $131 billion. Total trade in goods and services is expected to cross $180 billion, the ministry added. The US is also the third biggest source of FDI for India, and the USA is one of the top five investment destinations for India. "This visit will immensely contribute towards furthering trade and commercial ties between the two countries," the ministry said. The bilateral trade in goods between the two nations has increased to $65.39 billion during April-January this fiscal against $62.27 billion a year ago. India has received about $5 billion in Foreign Direct Investment (FDI) from the US during April-December 2022-23.
Source: Economic Times
Global supply chains have returned to normal, the Federal Reserve Bank of New York said, almost three years after Covid-19 was declared a pandemic. Actually, supply pressures around the world fell below normal. The February reading in the NY Fed’s Global Supply Chain Pressure Index was -0.26, reaching negative territory for the first time since August 2019 Zero marks the historical average, and changes in either direction mark standard deviations from that trend. Maximum disruptions pushed the gauge to a peak of 4.31 in December 2021. Less shipping congestion, an easing of parts shortages and weaker consumer demand have pulled the indicator lower in seven of the past 10 months, and the latest figure reflected more improvement. “There were significant downward contributions by the majority of the factors, with the largest negative contribution from European area delivery times,” the NY Fed said. The gauge brings together 27 variables that take the temperature of everything from cross-border transportation costs to country-level manufacturing data in the euro area, China, Japan, South Korea, Taiwan, the UK and the US.
Source: Economic Times
Citing the increase in government capex that was announced in the , Prime Minister on Tuesday urged the private sector to step up investments, while also asking companies to become part of global supply chains to boost output and exports. "Today, I would call upon the private sector to increase their investments just like the government so that the country gets maximum benefit from it," Modi said at a post-Budget webinar. He highlighted how the government earmarked over Rs 10 lakh crore towards public spending during the next financial year. The PM's comments come amid indications that private sector capex has been slow to take off as inflation and global slowdown, as well as the war in Russia, have hit demand. The government has indicated that there are signs of the private sector investing is adding to its production capacity, at least in select sectors. During the webinar, Modi also suggested that the banking system should support expansion, while giving the example of the government's support to the MSME sector. "One crore and 20 lakh MSMEs have received huge help from the government during the pandemic. In this year's Budget, the MSME sector has also got additional collateralfree guaranteed credit of Rs 2 lakh crore. Now, it is very important that our banks reach out to them and provide them adequate finance." He said that the banking system now stands robust after being on the verge of collapse eight-10 years ago. "Today, the need of the hour is that the benefits of the strength in India's banking system should reach the maximum number of people," the PM said, asking the banking system to reach out to the maximum number of sectors. The PM also spoke about the 'Vocal for Local' and Atmanirbhar Bharat initiatives of the government, which he said helped in increased domestic production while leading to record growth in exports and asked companies and industry chambers to support local artisans and entrepreneurs up to the district level. "We have to see which are the areas where we can save the country's money by building capacity in India itself," he said. Modi also said that the world has witnessed the impact of India's fiscal and monetary policy during the pandemic as his government also strengthened the fundamentals of the economy over the last 9 years. any conversation about the country's economy, Budget and goals would often begin and end with a question. However, he said his government drove in financial discipline, transparency and inclusive approach. "Today, India is being called the bright spot of global economy." Modi said that today India is presiding over the G20 as it also managed to attract the highest in the year 2021-22, a major part of which was towards the manufacturing sector.
Source: Times of India
The interim free trade agreement (FTA) between India and Australia comes into force today (29 December). The FTA is expected to boost the bilateral trade and commerce between the two countries from existing $31 billion to $45-50 billion in five years. The free trade pact, known as India-Australia Economic Cooperation and Trade Agreement (IndAus ECTA), was signed on 2 April this year and ratified by the Australian Parliament on 22 November. The agreement encompasses cooperation across the entire gamut of bilateral economic and commercial relations between the two countries. It covers areas like Trade in Goods, Rules of Origin, Trade in Services, Technical Barriers to Trade (TBT), Sanitary and Phytosanitary (SPS) measures, Dispute Settlement, Movement of Natural Persons, Telecom, Customs Procedures, Pharmaceutical products, and Cooperation in other Areas. Under the pact, India will benefit from preferential market access provided by Australia on 100 per cent of its tariff lines. This includes all the labourintensive sectors of export interest to India such as gems and jewellery, textiles, leather, footwear, furniture, food, and agricultural products, engineering products, medical devices, and automobiles. On the other hand, India will offer preferential access to Australia on over 70 per cent of its tariff lines, including lines of export interest to Australia which are primarily raw materials and intermediaries such as coal, mineral ores and wines etc. Our View Dashboards Magazine Subscribe HOLI OFFER: 80% OFF | Just Rs 499 For A 1-Year Subscription Claim Now 01 H 05 M 29 S As regards trade in services, Australia has offered wide ranging commitments in around 135 sub sectors and Most Favoured Nation (MFN) in 120 sub sectors which cover key areas of India’s interest like IT, ITES, Business services, Health, Education, and Audio visual. Some of the key offers from Australia in the services space include: quota for chefs and yoga teachers, post study work visa of 2-4 years for Indian students on reciprocal basis, mutual recognition of professional services and other licensed/regulated occcupations; and work and holiday visa arrangement for young professionals. On the other hand, India has offered market access to Australia in around 103 sub-sectors and Most Favoured Nation in 31 sub-sectors from the 11 broad service sectors such as ‘business services’, ‘communication services’, ‘construction and related engineering services’ etc.
Source: The swarajyamag.com
Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal said that the government, over the next two or three years, hoped to significantly ramp up focus on quality by bringing in reasonably strict and compulsary but practical quality standards on many more products so that Indian manufacturing is able to withstand irrational competition, increase the scale of production and become more competitive. He was addressing the inaugural session of Massmerize 2023 in New Delhi today. The Minister said that as long as we do not recognize the importance of quality in our country, we will not be able to stop this influx of low quality products. 'Towards that end we in the government are working to introduce quality standards in a much bigger way. We have now almost four times the number of quality control orders implemented in the last few years than what we had 10 years ago. Shri Goyal asked manufacturers, FMCG providers and the consumers to work collectively to revive Indian domestic manufacturing at scale, with high quality and at competitive prices, so that India once again provides a large amount of jobs, work opportunities, business opportunities, and meets the aspirations of 1.4 billion people. The Minister opined that the FMCG sector will truly be a driver of economic growth and that moving forward, India will be an important consumer market. He called for the creation and strengthening of a virtuous circle with massive amounts of investment and focus both on the public sector and the private sector to create the necessary building blocks or infrastructure to help the Indian economy grow rapidly. He called for renewed investments in infrastructure, in manufacturing, in innovation, in R&D and in quality. Shri Goyal observed that developed economies had become developed by ensuring significant internationalization of their economies, by engaging with the world in a bigger way, by focusing on scale, so that they can be more competitive, by building their domestic logistics ecosystem, where infrastructure investments play an important role, by focusing their energies on providing what the consumer really wished for, good high quality products at competitive prices and in the current context, sustainable goods. Shri Goyal underscored that sustainability would drive demand in the days ahead. He noted that the government had been focusing relentlessly on sustainability accross sectors The Minister noted that the consumer industry in India, FMCGs and other such products have been victims of indiscriminate low quality imports, because of which India has suffered and Indians have suffered. He said that though India had liberalized it's economy and a number of foreign companies and foreign suppliers did come into the country with some of them manufacturing in India, most of them had imported goods into India. Shri Goyal said that it should have been a period where quality Indian manufacturing at scale had to be strengthened. 'I think we lost out by allowing a lot of indiscriminate, low quality, low cost goods coming into the country' he lamented. Shri Goyal pointed out that India's imports from a certain geography had widened the trade deficit enormously and contributed to weakening domestic manufacturing. He observed that this dependence on imports created a set of business persons who met the consumer demand, but through pricing, which was often just meant to undercut all domestic manufacturing, sometimes predatory, thus harming Indian manufacturing. 'The Government over the last few years, focused its energies on bringing back the building blocks to get manufacturing into India again and it's going to be a long haul', he added. The Minister said that efforts, coupled with significant investments earmarked in the budget in the last three or four years will be able to make Indian manufacturing much much more competitive The Minister referred to Open Network for Digital Commerce (ONDC) and said that it would help our small retail survive the onslaught of large tech based e-commerce companies. 'Our effort will be to encourage more and more startups and small companies even at the local level, small retail the mom and pop stores integrated into the e- commerce ecosystem. And just like UPI was able to democratize payment systems we do hope that ONDC will democratize the e-commerce ecosystem and take its benefits to the people at large', Shri Goyal said. Shri Goyal said that in India's journey of growth, the retail sector and the FMCG sector, will have a huge role to play. He stressed that going forward consumption will increase significantly and added that consumption will be driven by demand for good quality products made in a sustainable way, delivered smartly. He expressed confidence that Indian industry will absorb the standards of quality that the consumer really deserves and desires. He stressed on the importance of buying products which ultimately provided jobs, which will not strengthen countries which are inimical to India's interests, but will strengthen India's economy, will have more people become consumers and will help boost the virtuous cycle that of investments in India, money spent in India, leading to jobs in India, incomes for the people of India, who then become consumers. 'It is this virtuous cycle is what will make India a developed country, a prosperous country, a country where 1.4 billion people lead prosperous lives' he added. He also asked consumers to foster respect for domestic products and Indian producers. He asked organizations like FICCI to take this message of respect for Indian products, respect for Indian ecosystem, respect for the opportunities that consumers can provide for young Indian talent to provide goods and services in India to all parts of the country.
Source: PIB
Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal urged the auto components industry to reflect on the level of investments and time and effort that they have been putting in to develop new technology, new designs, new products and thus help India’s indigenization and localization efforts. ‘It would also help us provide solutions to other countries instead of being dependant on their R&D for all times to come. Good ideas will find traction and acceptability both in India and all over the world’, he added. He was addressing the ACMA’s Atmanirbhar Excellence Awards and Technology Summit 2023. The Minister noted that India had entered the Amritkaal and was leading the world in crucial arenas such as sustainability and said that the growth of our economy and our businesses would depend upon our levels of investment in technology and R&D. He observed that several sectors and companies were reaping an ROI that was many times their investment in innovation and R&D. He said that as a nation, if we address the twin challenges of productivity and quality, India would excel with its technology level, managerial capabilities, skilled workforce and commitment levels. With focus on these two aspects, India would also excel in price competitiveness and succeed in meeting the needs of both India and the world’, he added. The Minister called to attention the obvious synergies between auto component manufacturing and defence indigenization and urged the industry to focus their efforts on promoting indigenous manufacturing and building self-reliance in defence technology. He also asked organizations like ACMA to hand-hold and support startups by interacting with them, providing them new opportunities, reward and encourage their R&D setbacks, treating it as stepping stones to success. Instant success comes but very rarely in R&D. It is a long haul but India must go down that path’, the Minister stressed. The Minister asked the auto components industry to also focus on formalizing the informal portion of the sector to ensure that duplicate components don’t affect India’s credibility in the world market. He urged the industry to raise their voice against infringement of copyrights and patents. He also asked the industry to make an extra effort to educate their customers on the quality of products, the life-time costs and the risks associated with low quality products. ‘The Consumer Affairs Ministry would be happy to partner with you on your efforts to promote quality’, the Minister assured. The Minister gave a new definition for athmanirbharta to the industry as not only being self-reliant but ensuring that the rest of the world was ‘nirbhar’ or reliant on India for their needs. The Minister brought to focus the several accolades that India and Prime Minister Narendra Modi had received from across the world for its decisive leadership and said that the world was looking up to India for solutions to the daunting problems of the day. Shri Goyal said that India would be the next frontier of technology, development, production, supply and would serve the world honourably, while respecting the environment and sustainability. He noted that sustainability and respect for nature came naturally to us and was ingrained in our cultural and civilizational ethos. He also asked the auto industry to make a net zero commitment to itself and set timelines to achieve it. The Minister asked the industry to ensure that the entire supply chain of auto manufacturing worked to promote Indian industry by supporting and empowering suppliers of raw materials and components, even if that meant incurring extra costs in the short run. In the long run we will succeed in creating a robust ecosystem for manufacturing in India, the Minister added. He asked big companies to narrow down on tier 2 and tier 3 suppliers and see how they could be supported and encouraged. In conclusion, Shri Goyal noted that India was at an inflection point where myriad opportunities were available to excel. He asked auto components industry to grab the opportunity and work together as a team, with all stakeholders, including the government to ensure that all emerging opportunities are leveraged to become what the world wants it to become.
Source: PIB
By virtue of its investorfriendly policies and ease of doing business, Uttar Pradesh is fast emerging as the most preferred investment destination in the country. Supported by a robust and growing start-up environment, the state is on the road to achieve its target of 1 trillion USD economy by 2030. By 2030, India will have the manufacturing potential to export goods worth $1 trillion, putting it on the global manufacturing map. One of India's most important economic pillars is the manufacturing industry, which employs over 27.3 million people and accounts for 17 percent of GDP. By enacting new laws and policies, the Indian government is trying to ensure that the manufacturing industry accounts for 25 percent of GDP by 2025. The manufacturing value chains in India have the potential to expand at a lightning pace. Manufacturers of basic metals, textiles and apparel, renewable energy and chemical goods all benefit from India's low-cost labor and natural resources (such as iron ore, bauxite, high solar insolation, and cotton). Skill-intensive value chains, such as those for pharmaceutical formulations, capital goods, and automotive components, benefit from the country's enormous pool of highly trained professionals.
Source: The government.economictimes.indiatimes.com
INTERNATIONAL
French shipping giant CMA CGM SA, controlled by the billionaire Rodolphe Saade and his family, warned of a steep drop in demand so far this year, extending a slump that led to a more than halving of quarterly profit. A downturn that began in the second half of last year “remained at play in 2023, as market conditions in the transport and logistics industry continue to deteriorate,” the world’s third-largest container line said in a statement Friday. The company cited a sharp decrease in freight rates, geopolitical tensions and economic uncertainty. The bleak outlook from the French transporter is in line with European rivals A.P. Moller-Maersk A/S and Hapag-Lloyd AG, and points to a cooling period in the notoriously cyclical shipping market. The pandemic had fuelled a surge in consumer demand for goods that snarled global supply chains, propelling freight rates and shipping profits to unprecedented levels. These weakened significantly at the end of last year. CMA CGM’s net income more than halved to $3.04 billion during the fourth quarter from $6.71 billion in the final three months of the previous year. Despite the drop, full-year profit for 2022 rose to a record $24.9 billion, surpassing the $17.9 billion in 2021. “The balance between supply and demand is expected to remain challenging, as capacity is expected to increase,” the company said, referring to an easing of port congestion and delivery of new vessels in shipping and more cargo capacity on planes. CMA CGM has 63 new vessels on order, the company says. Still, the company said “certain macroeconomic signals are stabilising,” with US consumers and the labor market remaining resilient, a European recession being “avoided for the moment,” and some emerging markets in Latin America and Asia staying strong. The pandemic boom filled the coffers of the Saades and rival European shipping tycoons like Gianluigi Aponte, founder of Mediterranean Shipping Co., and Klaus-Michael Kuehne, who has stakes in logistics and shipping companies. Closely held CMA CGM hasn’t yet announced a payout for 2022. The latest results could help get CMA CGM out of political hot water in France, where some lawmakers have called for a windfall tax on the company due to its high profits. Saade, the second-generation head of the carrier, has so far avoided any such penalty. He has invested some profits to reduce carbon emissions, as well as to expand operations in ports, logistics, air cargo and media. With a private fleet of some 593 vessels, the Saade family is worth $24 billion, according to the Bloomberg Billionaires Index.
Source: Economic Times
It is high time Finland diversifies its production and supply chains to come away from its trade dependence with China, even though finding alternatives is difficult, a new study states. Finland relies heavily on China for machinery, textiles, furniture and other household products, with almost two-thirds of laptops and nearly 50% of phones imported from China, statistics from the Finnish Customs read. Finland’s dependence on China is so strong that the Finnish trade and electronics companies would suffer greatly from the disruption of imports from China, a study by the Bank of Finland Institute for Emerging Economies (BOFIT) published on Friday shows. Yet, finding alternative sources would be difficult since many countries would presumably be simultaneously affected, the study added. In a press release by the Foreign Ministry, which coordinated the study, the Under-Secretary of State for International Trade, Nina Vaskunlahti encouraged companies to continue to assess their supply chains for potential commercial disruptions. In an interview with YLE, Vaskunlahti said it was high time to examine the situation and hold talks about China’s impact on Finland – even if there have been no significant Chinese investments in Finnish infrastructure and the direct links between Finland’s financial sector and China are moderate. Finland should aim to reduce its dependence on external sources as much as possible to become more self-sufficient and increase domestic production, including components, said Vaskunlahti, noting that Finland harbours 14 of the 30 critical raw materials currently listed by the European Commission. Finland should remain open to global trade and cooperation, she added.
Source: The .euractiv.com
The year 2022 has been a good year for Sedo Treepoint. From launching a new product series to participating in trade fairs and making further inroads into a growing market like India, things seem to be moving in the right direction for the company. In an exclusive chat, Andreas Hannes, the company’s marketing manager, echoing the positive sentiments, stated that 2022 was a great year for Sedo Treepoint. Listing down the key highlights for the company during the year, he said: “Beside the successful integration of our new Sedomat 6000 | 8000 controller series into the market, we were able to participate in fairs and events and meet our customers, partners and friends in person at, for example, Knit-Tech and India ITME.” “We are very pleased with the revenue we now have despite all the crises that occupy our world. What we see is that while China’s economy has been declining, other nations are gaining ground. We will have to wait and see what 2023 brings, but what we know is that India, especially, holds great potential for economic growth. We are in negotiation with many Indian partners and are sure that we will be able to expand our market share here in 2023, also with projects with a high degree of automation,” he added. Wide Product Range Going into details regarding the product range offered by Sedo Treepoint for the global market, he mentioned: “The products we offer range from the automation of dyeing and finishing machines (Sedomat, SedoIO) to the entire production management with our MES Systems (SedoMaster, SedoExpert), colour management (ColorMaster), energy management (EnergyMaster) and testing and quality control to ensure the best result in dyeing and finishing (Morapex, Qtex). All products meet the latest industry and highest quality standards. With Sedo Treepoint’s systems you get many cutting-edge features for the smart factory combined with smart software solutions. The complete textile supply chain is integrated through intelligent production.” When asked about the key global markets for the company where it enjoys a strong position, Andreas Hannes stated: “The markets are always in a state of transition. Actual themes like energy crisis and disruptions of supply chains influence the business. And we are all still suffering from the after-effects of the pandemic. One of the most promising markets for us in 2023 is India. Vietnam and Bangladesh are also markets where we expect to be able to further expand our market leadership. We are really excited about what the year 2023 will bring. We hope that we will all be saved from further crises for the time being and can focus on our business only.” Highlighting some of Sedo Treepoint’s recent innovations in technology and new products, he said: “The highlight is our Sedomat 6000 | 8000 controller series which brings together our knowledge of more than 45 years of machine automation. It’s a solution for every dyeing and finishing machine from small lab machines, yarn and fabric machines to continuous machines. It is developed to match future standards through its high flexibility. The new series comes in four sizes, offers different interfaces and various I/O options. A PLC is already included for easy adaption to all types of dyeing and finishing machines. It is tested for rough production environments and built according to the highest quality standards. It is now one of the most modular and advanced systems on the market and offers everything needed for Industry 4.0 and the smart factory. Of course, other new products will be launched at ITMA this year.” All Set for ITMA 2023 Talking about ITMA 2023, Andreas Hannes mentioned that the team at Sedo Treepoint is excitedly looking forward to participating at the mega textile machinery trade fair. “ITMA is the leading fair of our industry and we are much excited to take part again in Milan. At our booth, visitors can explore how to bring their smart factory to life with the support of our products. Of course, we will have our new controller series Sedomat 6000 | 8000 at the booth and will present our well-known software systems. Customers can look forward to innovations and a visit to our booth will be worthwhile.” ITMA 2019 was all about Industry 4.0. What’s next in terms of manufacturing, automation and digitisation? Responding to this question, he replied: “For us, there are several matters on the agenda and Industry 4.0 is still an important key point. For manufacturing, sustainability has always been important in different ways: optimise processes, reduce consumptions like water, salt, dyestuff, use as less energy as possible, and have as less wastewater as possible. Higher energy prices bring customers’ focus on energy management which we also cover. This is a unique advantage against other suppliers.” “Automation and digitisation can of course assist tremendously. In a factory with a high degree of automation, processes run closely together. The result is that quite automatically less of the above-mentioned resources are consumed. In addition, constant monitoring and reporting provide the basis for better decisions because they are datadriven,” he explained. “We offer all our customers around the globe the possibility to realise manufacturing with a high degree of automation and digitisation. Our goal is to provide systems to satisfy our customers and to achieve a sustainable impact on our world,” he added. Strong Technology Focus Sustainability is the most used word in textile manufacturing. Elaborating on how Sedo Treepoint’s products and technologies ensure sustainable manufacturing, Andreas Hannes remarked: “As mentioned earlier, sustainability has always been important in different ways and is now more present than ever. Our products are all developed to save resources like energy, water, dyestuffs, and chemicals. SedoMaster connects all systems of the dye house or textile finishing plant in one system for an optimised production planning from batch start to batch end and all related processes. It is our central tool for the entire workshop to get real-time insights for better production and business performance. It helps to better understand operations and to get more out of workforce, equipment, and materials.” “ColorMaster is our expert system for recipe management and colour measurement. A lot of dyestuffs and chemicals and finally also costs can be saved due to the exact recipe calculation. The many process optimisation options in ColorMaster really improve costs and output in production. EnergyMaster software supports measuring, controlling, and targeting of your energy consumption. You can, for instance, easily find out the largest energy users, what is causing peek consumption and detect abnormal consumption. By defining an energy efficiency plan with clear goals, significant energy savings can be realised quickly,” he said. Key Strengths Highlighting the key strengths of the company that give it the competitive edge, Andreas Hannes noted: “With Sedo Treepoint you get more than 45 years of experience in the international textile dyeing and finishing business. We provide the full range of solutions to optimise every dyeing and finishing plant. Our worldwide presence with 24 hours support makes it possible to serve customers quickly with reliable products designed after the latest industry and quality standards. We also have an edge because of our long-term partnerships where customers are not only customers but our friends and partners. Our product portfolio covers many fields, so you do not need several vendors, but one that will integrate many fields and integrate the data.” Overall Picture Finally, sharing his views on his expectations for 2023 and the growth of the textile industry globally, he observed: “With ITMA scheduled to be held in Milan this year, we have the biggest event after many lockdowns. We hope that we can really welcome many of our worldwide customers again to share ideas and discuss new projects. Regarding the growth of the industry, we assume that there will be regional shifts with different focuses. But we are confident that the textile industry globally will continue to recover in 2023 and that orders will increase again. We have many interesting products in our portfolio which will drive digitisation and sustainability in the textile industry. We are looking forward to 2023 and are excited about the challenges we will be able to solve with our customers,” he said.
Source: The Indian textile magazine
Risk management company Resilinc said around 900 industrial sites it monitors could be affected by the disaster. The quake damaged railway lines, roads, airports and ports, disrupting logistics and trade in commodities including steel, chemicals and plastics. The value of the damage is likely to exceed $2bn and could reach as high as $4bn, data analytics provider The Smart Cube said. It expected the earthquake to have a “mediumterm” impact on global logistics. Resilinc said industries impacted included textiles, automotive, high-tech, general manufacturing, consumer goods, oil and gas, as well as industrial chemicals. Bindiya Vakil, CEO and co-founder of Resilinc, told Supply Management: “The sites we’ve identified as potentially affected are involved in activities such as manufacturing, assembling, warehousing, distribution, fabrication, and testing. The challenge is that the scale of the disruption is very wide, causing a ripple effect, which we haven’t seen the full extent of yet.” She advised firms to improve visibility of supply chains through mapping. “Depending on the industry, some companies will be able to get alternate sites up and running quicker than others. Some companies will need to work with their suppliers to temporarily find alternate sites,” she said. “The single biggest thing companies can do to manage this situation or be prepared for future supply chain disruptions of any type is to have full visibility of their operations through mapping. “In Turkey right now, for example, companies that have had full visibility into their entire supply chain (via a supply chain risk management programme) are able to collaborate directly with lower tier suppliers to ultimately emerge from this disruption in better shape – or even offset it completely.” Vakil added: “Turkey will continue to be a desirable location for organisations given its strategic geographic location as well as lower labour and production costs.” Global shipping companies have now altered the routes of shipments destined for the Port of Iskenderun in Turkey, where operations were suspended in the wake ofthe disaster. Operations have been partially redirected to the Port of Mersin. However, Japanese freight shipper Ocean Network Express warned the terminal was expected to face yard congestion due to infrastructure damage delaying container pickups. Over 50,000 people are now thought to have died as a result of the earthquake, which measured 7.8 on the magnitude scale and was followed by numerous aftershocks. Countries across the Middle East have rallied to provide relief and aid to Turkey and Syria. The region produces chemicals and plastics, such as polyester fibres and polymers, soda ash, and fertilisers, which are used across industries such as textiles, plastics, glass, Additionally, steel mills are expected to be constrained. Despite escaping major damage, their infrastructure and logistics capabilities were affected. Mills were expected to remain closed due to energy cuts and logistics issues, which could increase the price of steel and scrap in domestic and the EMEA markets. Ritesh Kumar, director of procurement and supply chain intelligence at The Smart Cube, said: “In addition to the devastating loss of life, economic losses are currently difficult to estimate as the situation continues to evolve. However, the losses are likely to result in more than $2bn worth of damage and may possibly exceed $4bn. From a business perspective, the earthquake is expected to have a medium-term impact on the global logistics industry. “Major highways, airports and shipping ports have all been damaged, with this impacting the movement road, air and ocean freight in the earthquake-affected region. Adding to this, exports of certain chemicals and plastics are set to decline for an extended period of time due to a rise in domestic demand in Turkey.”
Source: The cips.org
The Bangladesh Bank (BB) issued a circular on Monday, extending the timeframe related to the exit policy - applicable for the non-textile industries, identified as sick by the Ministry of Industries. Under the latest revision, a sick non-textile factory - having an original loan (principal amount) of at least Tk 5.0 million - will be able to apply for availing the facility by giving a minimum of 2.5 per cent of the principal amount as down payment until June 2023. Earlier, the timeline was within 90 days of issuance of the previous circular, issued on October 25, 2022, and a bank had to settle the applications within 45 days. Seeking anonymity, a BB official said they raised the timeline, as many borrowers under the category showed their interest to avail the facility. "Those who will not apply within the time will not be eligible to avail the exit facility." Such loans should be treated as classified as long as the borrowers are fully repaying the loans. About relaxation of cost of fund on the interest, the BB official said the respective bank can take the decision - based on the circular issued by the Finance Division on February 02, 2008. Under the policy, a bank can give a borrower at best three years to pay off the loans in installments, according to the central bank. However, if a bank needs to adjust the loans by selling the borrower's immovable properties, the borrower can be given a one-time chance to clear the loan within the stipulated three years' time. Last year, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) sought the prime minister's intervention to save the sick non-textile factories. The Awami League-led government formed a high-powered taskforce in 2009 to rehabilitate the sick industries and devise mechanisms to settle their liabilities. The taskforce divided the sick factories into three categories - garments, textiles, and non-textiles. Later, the government issued circulars to settle the liabilities of 279 garment factories and 100 textile factories as per the recommendations of the taskforce. But no non-textile factory has availed the facility yet.
Source: The Financial Express
Prime Minister Hun Sen has advised two ministries to provide financial support, starting from April, to workers in the texti related sectors who were suspended from work or whose factories were shut down. He also allowed relevant ministries to increase cash fo pregnant women and child under 2 for them to receive adequate nutrition. Hun Sen gave the instruction while presiding over a graduation ceremony for 1,728 students from the Institute of New Khmer Generation, in Phnom Penh on March 6. He said the current global economic situation was not good, including in the US and Europe. Though the problem is not serious as yet, he s affects the global economy through inflation. He added that the global crisis had also affected the product orders for goods made in Cambodia, especially in the garment and footwear sectors, which reduced their operations due to the loss of revenues. To address the crisis in Cambodia, he ordered Minister of Labour and Vocational Training Ith Samheng and Minister of Economy and Finan Aun Pornmoniroth to come up with an urgent response and launch the cash assistance programme to help vulnerable garment workers. “I’ve received a report from a trade union which knew my WhatsApp number. The union sent me a message saying that the number of suspended factories have increased. The workers are requesting that we intervene,” he said. “I conveyed the request to Ith Samheng and Aun Pornmoniroth. So, let’s discuss a response to this issue. The number of workers affected i as high as at the peak of the Covid-19 pandemic. So, we have to discuss the suspensions with factory owners. “We may do something like … the government provides 40 per cent and factory owners contribute 30 per cent, starting from April,” he said Hun Sen also recalled that the government has been helping workers since 2008 in response to global crises, and that the current situation not too serious for the government to address. “As for the loss of income: If a person used to buy three shirts per year, but because their income has dropped or prices have gone up whi their income hasn’t, they might then only buy one shirt per year. So, market demand has also declined in crisis-hit countries, especially in Europe. If the demand in these countries falls, then their orders for our products also decrease,” he stated. Hun Sen also advised relevant ministries to increase the available cash for pregnant women and children under 2 for them to receive adeq nutrition. In case the two ministries could not offer this policy this year, they are required to implement it next year. “In the previous day, when meeting with the Cambodia National Council for Women, I also told the Ministry of Social Affairs to increase the amount of cash for women who receive four pregnancy checks. So, they will be provided with cash four times,” he said. “When they give birth, we have to assist them until their babies reach age 2. We have to assist them eight times or in a year four times unti children reach age 2,” he added. “So, we have to increase the amount of money. For example, when a woman gives birth, we provide her wi 200,000 riel to 300,000 riel [$50 to $75].” Labour ministry spokesman Heng Sour said the two ministries are preparing to roll out the cash assistance programme as advised by the premier. “As of February 28, 2023, a total of 71 factories had suspended contracts of employment. These factories employed nearly 32,023 workers. number, 34 factories in Phnom Penh employed a total of 12,010 workers. Thirty seven factories in the provinces employed 20,013 workers,” noted. Pav Sina, president of the Collective Union of Movement of Workers (CUMW), lauded the measures to launch the programme, saying they a falling victim to the global crises at this time. He added that even though the situation that Cambodia encounters at this time do not seem to be serious as at the height of the pandem wanted more assistance from the government. “On behalf of the workers, I am very happy with the assistance for the workers who were suspended from work or became victims of factor closure. They continue to have a serious problem of spending. We would like to see this assistance increased further to help ease their bur he added. Kaing Monika, spokesman for the Textile, Apparel, Footwear and Travel Goods Association in Cambodia (TAFTAC), said his association was worried about the recent closure and suspension of some factories. However, he said: “We are working together with the government and stakeholders to try hard to mitigate impacts caused by this worsenin global economic situation.”
Source: The Asianews.network
