INTERNATIONAL
NATIONAL
Gujarat government and the Centre this week signed a memorandum of understanding to set up a PM MITRA textile park on a 462-hectare plot in Navsari district. The PM Mega Integrated Textile Regions and Apparel (PM MITRA) Park will come in Vansi-Borsi village and will help the circular economy of the region, Union Commerce and Industry Minister Piyush Goyal said after the MOU was signed here in the presence of Chief Minister Bhupendra Patel. "This will be a unique industrial model for the country. It will help increase investment in the textile sector, create job opportunities and make India a hub for textile manufacturing and export. It will create modern plug and play infrastructure in Navsari district, which will help the circular economy to grow," Goyal said. Such textile parks were being established in seven states and the sites were selected without any prejudice and in a transparent manner, he added. The park will play a crucial role in developing the textile sector as per Prime Minister Narendra Modi's vision encompassing 'Five Fs', namely farm to fibre, fibre to fabric, fabric to fashion and fashion to foreign, the Gujarat chief minister said. "Our government will ensure this park comes up in a short time. Gujarat has been a hub of textile manufacturing. It was earlier known as Manchester of East and now it is known as textile state of India or denim capital of India. Gujarat is second in textile exports in the country. Almost 60-70 per cent of the country's denim is made in the state," Patel said. As per an official release, the Union government approved the establishment of seven PM MITRA parks in Gujarat, Maharashtra, Tamil Nadu, Telangana, Karnataka, Madhya Pradesh and Uttar Pradesh. It said the Gujarat Industrial Development Corporation (GIDC) will develop the PM Mitra Park in Navsari. The state government has allotted 462 hectares to GIDC for the project, for which the Centre will provide assistance of 30 per cent, or Rs 500 of the Rs 1500 crore outlay for infrastructure development, it said. "The PM MITRA Park will lead to the establishment of world-class industrial infrastructure to attract largescale investment, including Foreign Direct Investment (FDI). The state will get an estimated investment of ?10,000 crore and generate 2-3 lakh direct and indirect employment in the textile and its allied sector," the release said. It said the state government was in the process of creating a Special Purpose Vehicle for the construction of the park, adding that the state government will have 51 per cent equity in the SPV while the Centre will hold 49 per cent.
Source: THE TECOYA TREND
Union Minister of Textiles, Commerce & Industry, Consumer Affairs, Food & Public Distribution, Shri Piyush Goyal congratulated the state of Maharashtra for being awarded the prestigious Pradhan Mantri Mega Integrated Textile Region and Apparel (PM MITRA) Park in Amravati. While addressing the launch ceremony of PM MITRA Textile Park, Amravati today, the Minister emphasized that the addition of PM MITRA Park would further strengthen the rapid progress of Maharashtra Shri Piyush Goyal said that given Maharashtra's significant contributions across the entire textile value chain, from Farm to Fiber to Factory to Fashion to Foreign, it is a natural choice for a textile park. Shri Goyal further highlighted that the well-connected infrastructure of Amravati, including its road, rail, port, and airport networks, will significantly boost the textile industry in Maharashtra. The ceremony was attended by the Chief Minister of Maharashtra Shri Eknath Shinde, Deputy Chief Minister of Maharashtra, Shri Devendra Fadnavis and Union Minister of State for Railways and Textiles, Smt. Darshana Jardosh. The Minister of Textiles, Government of Maharashtra Shri Chandrakant Patil; Minister of Industries, Government of Maharashtra, Shri Uday Samant; Secretary, Ministry of Textiles, Government of India, Smt. Rachna Shah and Principal Secretary, Industries, Government of Maharashtra, Dr. Harshdeep Kamble were also present amongst the dignitaries on the occasion. Smt. Darshana Jardosh, acknowledging India's historical prowess as a textile hub, emphasized that the establishment of PM MITRA Parks in various states, including Amravati, Maharashtra, is a crucial step toward making India a global textiles manufacturing hub. She added that the integrated park would attract more investment to Maharashtra, generate employment opportunities, and foster innovation, research, and training in the textiles sector. During the event, a Memorandum of Understanding (MoU) was signed between the Maharashtra Industrial Development Corporation (MIDC), Government of Maharashtra, and the Ministry of Textiles, Government of India, for the establishment of PM MITRA Park. The PM MITRA Textile Park in Amravati is expected to attract an investment of Rs. 10,000 crore and create both direct and indirect employment for approximately 300,000 individuals. Spanning across a contiguous 1020 acres of land at Nandgaon Peth, adjacent to the Additional Amravati Industrial Area (MIDC), the Park is situated just 30 kilometers away from the Mumbai Nagpur Samruddhi Highway and 147 kilometers from the nearest port, the Wardha Dry Port. As a brownfield park, it already possesses essential infrastructure such as roads, water, and electricity.
Source: PIB
The flagship Production Linked Incentive (PLI) scheme was introduced on March 21, 2020, to boost production, increase exports and curb imports. An outlay of ₹1.97-lakh crore for 14 sectors, including automobile, telecom and textile, was sanctioned for release over an extended period. More than half of the scheme’s five-year period is over. It is time, therefore, to look at the effectiveness of the scheme. National Accounts Statistics show that manufacturing value added was 17.3 per cent of gross value added (GVA) in FY15, which increased slightly to 17.7 per cent in FY23. At this rate, manufacturing is not driving economic growth in any significant way. As for the promise that the scheme will create six million new jobs in five years, there are hardly any reliable indicators on how many jobs have been created. After more than three years, a recent PLI review by the Ministry of Commerce and Industry shows that of the ₹1.97-crore allocation, only ₹2,900 crore (1.5 per cent) was disbursed by end-FY23 and that too only to eight sectors. Bulk of the incentives went to three sectors — large-scale electronics, pharmaceuticals and food products. There were no disbursements to steel, textiles, batteries, white goods, solar panels and automotive. Following the review, the Department of Promotion of Industry and Internal Trade (DPIIT), under the Commerce and Industry Ministry, said: “India’s flagship PLIs have attracted investments worth ₹62,500 crore in sectors such as mobile manufacturing, pharmaceuticals, medical devices and food processing, resulting in incremental production/sales of over ₹6.75-lakh crore; creating 3.25 million new jobs and increasing exports by ₹2.56-lakh crore by March 2023.” The statement also said that “sectors for which the PLI scheme exists have seen increased FDI inflows between FY22 and FY23. Ideally, PLI should promote ‘Made in India’, not ‘Assembled in India’. In its 2021-22 annual report, the NITI Aayog said it was developing a dashboard to monitor the PLI scheme. Since the PLI is intended to boost investments, production, exports and employment generation, the dashboard was meant to track changes in these areas. However, the dashboard is still not available. Though the objective of the PLI scheme of improving competitiveness is welcome, exports should be enhanced by utilising local, and not imported, resources. This will result in better pay-offs. To strengthen India’s manufacturing capacity and reduce import dependency in key sectors, the implementation of the scheme should be finetuned. This could pave the way for a self-sustaining manufacturing ecosystem. The writer is Vice-Chairman, Punjab Economic Policy and Planning Board. Views are personal
Source: The Hindu Business line
After the recent visit of Commerce and Industry Minister Piyush Goyal to Britain, Commerce Secretary Sunil Barthwal is visiting London this week to take stock of the negotiations for a proposed free trade agreement (FTA) with the UK, an official said. During the visit (July 17-18), the secretary will hold discussions with senior officials of the UK about the proposed trade agreement, which both the countries are negotiating. The negotiating team of India is already there in London for the eleventh round of talks. Goyal concluded his Britain visit on July 12. The official said that both the visits are important as the talks are at a crucial stage. With the FTA negotiations gaining momentum, the visit aims to further propel the discussions and pave the way for a comprehensive and mutually beneficial agreement that would drive economic growth and strengthen ties between the two countries. India and the UK are working to iron out differences on issues like intellectual property rights (IPRs) and rules of origin under the agreement, negotiations for which were started in January 2021. Out of 26 chapters in the agreement, 14 have been closed. In five chapters there are certain important contentious issues pertaining to environment, labour, and digital trade. This agreement is the "most complex" one which will be going to be signed by India, Barthwal has said recently. The 'rules of origin' provision prescribes minimal processing that should happen in the FTA country so that the final manufactured product may be called originating goods in that country. Under this provision, a country that has inked an FTA with India cannot dump goods from some third country in the Indian market by just putting a label on it. It has to undertake a prescribed value addition in that product to export to India. Rules of origin norms help contain dumping of goods. The negotiations between the two countries for the agreement cover as many as 26 policy areas/chapters. Investment is being negotiated as a separate agreement (bilateral investment treaty) between India and the UK and it would be concluded simultaneously with the free trade agreement. The two countries last year missed the deadline due to unprecedented economic and political crises in the UK. The Indian industry is demanding greater access for its skilled professionals in the UK market and entry of Indian whiskey by removal of conditions pertaining to the three-year minimum maturation period. The UK is also seeking a significant cut in the import duties on Scotch whisky. Britain is also looking for more opportunities for UK services into the Indian markets. The bilateral trade between the countries has increased to USD 20.36 billion in 2022-23 from USD 17.5 billion in 2021-22. India's main exports to the UK are ready-made garments and textiles, gems and jewellery, engineering goods, petroleum and petrochemical products, transport equipment, spices, machinery and instruments, pharmaceuticals and marine products. The main imports include precious and semi-precious stones, ores and metal scraps, engineering goods, professional instruments other than electronics, chemicals and machinery. In the services sector, the UK is the largest market in Europe for Indian IT services. In the field of investment, the UK is one of the top investors in India. In 2022- 23, India received USD 1.74 billion in foreign direct investment from Britain as against USD one billion in 2021-22. During April 2000 and March 2023, the investments stood at USD 33.9 billion. Under such pacts, two trading partners significantly reduce or eliminate customs duties on the maximum number of goods traded between them, besides easing norms to promote trade in services and investments. Britain, which has a USD 3.1 trillion economy according to World Bank data, has long been a service sector powerhouse. The city of London, which is one of the world's biggest financial markets, has also long attracted Indian companies seeking to raise funds from the global market.
Source: Economic Times
India is weighing the possibility of offering the EU tariff concessions for certain ICT products, like mobile phones and base stations, as part of the India-EU Free Trade Agreement (FTA) being negotiated which could lead to an amicable settlement of the WTO dispute on the matter. But the Commerce Ministry has not yet been able to bring the Ministry of Electronics and Information Technical (MeitY) on board, which is focused on promoting domestic production, and the matter is stuck at the moment, as per sources tracking the matter. “The Commerce Ministry believes that one possible way of sorting out the WTO dispute with the EU on ICT tariffs would be to offer tariff concessions through the FTA. But MeitY is not too open to the suggestion yet. The EU, Japan, and Chinese Taipei had appealed to the WTO against import duties of up to 20 per cent, progressively imposed by India on certain ICT products, such as mobile phones and accessories and base stations, since 2014. They complained that this went against its commitments at the WTO. India had committed to zero duties on many ICT products under WTO’s IT Agreement. On April 17, 2023, the dispute settlement panel of the WTO, in three separate judgements, ruled against India’s import duties and asked for a correction. “India continues to hold that the items on which it has imposed import duties are not covered under the IT Agreement and the complainants were also trying to take advantage of a technical error made by the country while updating its tariff lines. It, therefore, decided to go the Appellate Body to appeal against the judgements,” the official said. Although India has appealed to the Appellate Body against the panel’s judgement related to Japan’s case, it mutually decided with the EU to have more discussions to sort out the case filed by the bloc before escalating it to the Appellate Body level. “Once a case goes to the Appellate Body, it is known that nothing will come out of it for a long time as the judges’ appointment is in suspension. That’s why the EU wants to sort it out through mutual discussions,” he said. As per EU’s calculations, the amount of EU exports of such technology affected by India’s duties is up to €600 million annually. “While this is already significant, the real impact on European companies, which also export from other countries to India, is considerably higher,” according to an EU statement. Since India is already negotiating an FTA with the EU, which happens to be one of its top export destinations, one way to appease the bloc without upsetting the applecart could be by offering tariff concessions on the affected ICT products as part of the pact, the source said. MeitY, however, is not very receptive to the idea as it believes that it would defeat the very purpose of the duties which was to encourage domestic production of the ICT products like mobile phones. “The India-EU FTA discussions are expected to go on for some time. But India and the EU have time till September 19 to decide on the fate of the dispute at the WTO. Some decisions need to be taken fast,” the source said.
Source: The Hindu Business line
Ease of doing business for MSMEs: Micro, Small and Medium Enterprises (MSMEs) are the economic and employment backbone of the developing economies. In India, apart from agriculture, a major part of employment generation is done in the MSME sector, which has been significantly contributing as a major partner to the socio-economic development process. Presently, the MSME sector consisting of 63 million units provides employment to over 113 million persons – the highest next to agriculture. MSMEs are also important for fostering and strengthening the startup ecosystem. They are the catalyst for new ideas to breed. The startup entrepreneurs are being encouraged to become the drivers of economic growth that will have the potential to pull the marginalized people of India out of poverty. As we know, the entrepreneurial route is the most desirable route to create higher employment opportunities and hence all those persons who choose the enterprise path need all the support and encouragement from government, financial and other agencies.
In the backdrop of rising demand for job opportunities due to a large number of young persons entering the job market every year and diminishing job opportunities in government entities and public sector units, it is essential to invent and implement newer areas of job creation models and in this context, the role and potential of MSMEs particularly the micro enterprises assumes importance in terms of generating incremental job opportunities for securing social stability, eradicating poverty and curbing migration from rural to urban locations.In order to create a large number of incremental job opportunities in the country, multiple strategies and policy measures need to be taken by the government. Since MSMEs have the largest potential for job creation, the under-mentioned support measures by the government will greatly help in over-turning the job situation and facilitating large-scale creation of incremental jobs:
Incubation and Mentorship Programmes
Establishing more incubation centres and mentorship programs can nurture entrepreneurial talent and guide MSMEs in their initial stages. These programs should offer mentoring, business development support, access to networks, and assistance in securing funding. Additionally, collaborations with successful entrepreneurs, industry associations, and academic institutions can create a robust ecosystem for new enterprise creation and MSME growth. For this purpose, an innovative model of an integrated support system should be established for the creation of new business enterprises. The model should hold the promise of achieving multi-faceted goals of sustainable economic development and generation of additional employment opportunities by way of promoting entrepreneurship and setting up of new business enterprises.
Linkage with the MUDRA Credit scheme for assured availability of finance
MUDRA has emerged as a game changer in the field of microfinance. All such trained persons at the Livelihood Incubation Centres should be automatically linked with the MUDRA financing scheme in order to help these incubates access loans for their businesses. It will in turn also strengthen the MUDRA scheme since trained entrepreneurs adequately prepared by the Incubation centres would prove to be more robust and sustainable in running their businesses and meeting repayment commitments. Further, the credit limit under the MUDRA loan should also be enhanced from the existing ceiling of Rs 10.0 lacs to Rs. 25.0 lacs due to the change in the definition of MSMEs.
Improving Startup India Ecosystem
Startup India program is a good initiative of the government, the primary objective of which is the promotion of startups for the generation of employment and wealth creation. The scope of tax incentives and other concessions given to startups under the Startup India scheme needs to be widened to include all startups and new business enterprises registered as MSMEs and all such new enterprises need to be given tax holidays and exemptions from filing returns for a period of first 3 years.
Venture Funding support to Startups
The Startup India program of the government has been very successful but it lacks integration with the funding agencies. Startups recognized by the government need seed funding support to establish and scale up to be able to raise financial resources on their own strength. It is, therefore, desirable that seed funding support should be provided to all those startups which are recognized by the government. In addition, the Fund of Funds scheme of Rs 50,000/ crore launched by the government through NSIC should also provide venture funding to such startups on a priority basis as they have already been recognized for their growth potential by the government.
Rationalization and Simplification of Labour Laws
The government’s efforts to codification of 44 Central labour laws into 4 codes – pertaining to Wages, Industrial Relations, Social security and Welfare and Safety and Working conditions in order to simplify and ease in filing documents is a major step forward. It is desirable that adequate flexibility should be given to the Industry to devise the terms of employment of workers for example in the case of Employees’ State Insurance, the government could introduce optional ESI or Medical Insurance coverage. Simplification of Employees’ State Insurance, Provident Fund and other labour laws can be implemented for MSMEs. The condition of a certain number of employment from within the State should also be dispensed with.
With the above policy support and incentives, it is certain that we shall be able to create a large number of jobs in the country.
Source: PIB
A large number of textile mills in the micro, small and medium-scale (MSME) segment downed shutters on Saturday citing high production cost that made operation of the units unviable. G. Venkatesan, vice-president of the South India Spinners’ Association, said the production of goods worth ₹85 crore was affected on Saturday alone. This closure will cause revenue loss for the government with respect to GST payment and power cost, among others. The mills have also decided not to sell yarn till the situation improves. The State government should revise the power costs for textile units and the Central government should have a ‘one nation-one policy’ for the entire textile industry. Several States are offering incentives to textile units and yarn from the northern States is sold in Tamil Nadu at a lesser cost, he said The association demanded immediate withdrawal of 11% import duty on cotton. The open-end spinning mills stopped production from July 10 and the MSME mills joined the Ravi Sam, chairman of Southern India Mills’ Association, and T. Rajkumar, chairman of Confederation of Indian Textile Industry, told presspersons here on Saturday that the textile industry was going through an unprecedented phase as there was absolutely no demand for yarn. “Tiruppur received just 50% of its orders this year and Karur has not seen growth. So, there is no demand for yarn due to multiple factors,” said Mr. Rajkumar. Mr. Ravi said that because of the 11% import duty on cotton, there was no level-playing field. Further, spindleage has increased across the country. They also demanded withdrawal of the import duty on cotton and a two-year moratorium to repay term loan and Emergency Credit Line Guarantee Scheme loans.
Source: The Hindu Business line
China — the world's largest bilateral creditor to low- and middle-income countries — is yet to come on board for a common understanding on debt resolution for such nations, said sources in the know about discussions at the third meeting of G20 Finance Ministers and Central Bank Governors (FMCBG) here. The debt crisis, a priority area for India in G20 discussions, has been aggravated following the Covid pandemic, and talks have taken place between the World Bank, the IMF, and China, as well as private lenders. The sources said some G20 nations are not keen on a one-size-fits-all thumb rule to restructure debt of vulnerable countries.India’s G20 presidency is also pushing the envelope on digital public infrastructure and it is holding talks with Indonesia for linking their fast payments systems to allow real-time trading in local currencies, the sources said. If this happens, Indonesia would become the fourth country, after Singapore, France, and the UAE, to be linked with India’s UPI system. Finance Minister Nirmala Sitharaman, who is in the city for a score of G20 events, underlined the need for embracing innovative strategies to attract private investment, bridge financing gaps and foster sustainable development of infrastructure in cities. Addressing the G20 Infrastructure Investment Dialogue on Sunday, she said the situation with regard to financing infrastructure has become even more challenging in the wake of monetary policy tightening in key markets.Against this backdrop, she said: “Innovative financing and funding mechanisms for cities could have significant potential to fill the increasing (funding) gaps… It can complement the pool of funds available for infrastructure in addition to public investment and financing provided by Multilateral Development Banks (MDBs).” India’s G20 presidency is also pushing for reforming MDBs to make them financially more prudent.Sources in the know of discussions during the FMCBG meeting said a synthesis note on cryptocurrency by the International Monetary Fund (IMF) and the Financial Stability Board (FSB), along with a note from the G20 Presidency, would be put together before the G20 Leaders’ Summit to be held in New Delhi in September. The second was on the issue of the global tax deal, Canada is not in agreement with the two-pillar framework and wants to levy its own digital tax from January 2024 onwards, according to the sources.On the issue of cryptocurrency, India’s G20 presidency will put together a summary of various works being done by different institutions and this will be shared as input to the synthesis note. India is expecting some outcome in the form of a road map for the future. The idea behind an independent expert group’s report about evolving MDBs, the sources said, is to look at the larger picture and make global institutions ready for the 21st century, especially after the Covid crises.The current G20 discussions about Russia-Ukraine have not affectied progress on other agenda items, they said, adding that India wants to stick to the Bali language for chair summary in the finance track. India also held bilateral talks with Indonesia and Canada on Sunday, ahead of the FMCBG meeting.Finance Minister Nirmala Sitharaman said areas of cooperation with Indonesia -- India largest trading partner in the Asean region -- include bilateral investment, financial services, and infrastructure development. “India has developed expertise in digital public infrastructure. It can provide time-tested solutions for convenient and affordable digital payments, which can assist Indonesia in achieving its financial inclusion goals,” Sitharaman said, while launching the India-Indonesia Economic and Financial Dialogue on the sidelines of the FMCBG meeting. Later in the day, addressing a 'G20 High-Level Tax Symposium on Combating Tax Evasion, Corruption and Money Laundering', the finance minister made a case for further strengthening of global architecture to combat financial crimes, money laundering and sharing of information about different asset classes, including cryptocurrencies.During the day, she also held a meeting with Canadian Deputy Prime Minister Chrystia Freeland and discussed the progress being made on ongoing bilateral trade negotiations. Freeland, who is also the finance minister of Canada, said Canadian Pension Funds would be keen to explore investing in Indian Infrastructure Funds as India offers a stable investment climate.
Source: Business-Standard
Months after the introduction of green deposits by the Reserve a Bank of India and most banks making these deposits operative, there hasn’t been much demand for them. At one end they don’t fetch the best rates to depositors and, hence, weak demand. But on the other end, banks themselves aren’t very comfortable with these deposits either. The end-use of green deposits is well-coded. On the face of it, it may seem like promoting eco-friendly utilisation of money. But it’s not so easy. From funding CFL lamps to solar panels for domestic use to any such non-thermal appliances, green deposits could be deployed towards these loans. While there is a specific asset, which is created by lending to these products, it’s still not something where lien could be exercised. It’s as good as an unsecured loan and banks are comfortable not to lend for such products. They are stay away from promote green deposits as much — yet another innovation has gone waste.
Source: The Hindu Business line
Prime Minister Narendra Modi, after wrapping up his official visit to the United Arab Emirates (UAE), shared a video showcasing the key moments of his trip to the Gulf nation. In the video, he emphasized that both India and the UAE will maintain a strong collaborative relationship to promote global welfare.Sharing a video on Twitter on Sunday that featured him attending important events in the UAE, PM Modi, wrote, "India and UAE will keep working closely to further global good! Here are highlights from yesterday…" On July 15, Prime Minister Modi reached Delhi Airport after successfully completing his France and UAE visit."Concluding a productive UAE visit. Our nations are working together on so many issues aimed at making our planet better. I thank HH Sheikh Mohamed bin Zayed Al Nahyan for the warm hospitality," tweeted PM Modi. Before PM Modi departed for New Delhi, Foreign Secretary Vinay Mohan Kwatra said the trip was "short but very significant, a landmark in the partnership between India and the UAE." Briefing about PM Modi’s UAE visit, Kwatra said PM Modi held “extensive discussions with the President of the UAE, Sheikh Mohamed bin Zayed Al Nahyan." He also termed the visit to be of “tremendous strategic significance" as it showcased the “deep bond of friendship and trust" between the Prime Minister Modi and the UAE President. India and the UAE signed the Comprehensive Economic Partnership Agreement (CEPA) last year and since the signing of that important strategic landmark agreement between the two countries, the trade and economic partnership and engagement has grown significantly between the two countries, Kwatra said.He noted that “visit this time puts together another pillar of that strategic economic partnership in a couple of important ways."The Foreign Secretary also said that PM Modi’s visit will perhaps open-up “new pathways for India" to look at structuring similar partnership with other countries both in the region and beyond.PM Modi arrived in UAE on Saturday and was received by Sheikh Khaled Bin Mohamed Bin Zayed, Crown Prince of Abu Dhabi at the airport. On his arrival at the Abu Dhabi airport, PM Modi also received a ceremonial welcome. During his visit, the Prime Minister met the Crown Prince of Abu Dhabi, Sheikh Khaled bin Mohammed bin Zayed Al Nahyan. Further, COP28 President-designate, Sultan bin Ahmed Al Jaber also called on PM Modi and the two leaders held discussions on wide-ranging issues. PM Modi assured India's support to UAE for its COP28 Presidency as well.Prime Minister Modi was accorded a grand welcome in the United Arab Emirates (UAE), where the iconic Burj Khalifa was illuminated with the colours of the Indian flag.During the light-and-sound show at the Burj, which preceded Prime Minister Modi's official visit to the Gulf nation, the iconic skyscraper displayed his image along with a message that said, "Welcome Honorable Prime Minister Narendra Modi." Following his two-day visit to France, PM Modi departed for the UAE on Saturday. Prime Minister Modi described his visit to France as "memorable" and highlighted the significance of being part of the Bastille Day celebrations. He expressed his appreciation to French President Emmanuel Macron and the people of France for their warm reception and hospitality. During his official two-day trip to France, PM Modi had the privilege of attending the Bastille Day celebrations as the Guest of Honour, accepting the invitation extended by President Macron."To mark the 25th anniversary of the India-France Strategic Partnership, a 241-member tri-service Indian armed forces contingent led by a military band also participated in the Parade," the PMO said in a statement.
Source: Live mint
Friendshoring is an important foundation for global supply chain resilience, in which India is an indispensable partner, US treasury secretary Janet Yellen said on Sunday, adding that American companies are investing in manufacturing in India for exports to the US. “I will use this trip to deepen what was already a very significant relationship with respect to friendshoring with the United States,” Yellen said here at the G20 meeting of Finance Ministers and Central Bank Governors.The US is India’s largest export market. Bilateral trade between the two countries exceeded $191 billion in 2022, nearly double of that in 2014. “The behaviour by the private sector is really an important part of friendshoring. You’re seeing continued advancements of investments in India by private firms that are seeking to produce and export to the US,” Yellen said. Recently, electric car maker Tesla said it is exploring an investment proposal to set up a factory in the country. It will likely set up its supply chain ecosystem. India has been highlighting opportunities available in the country to relocate companies from China not just as a captive market, but also as a potential hub serving the region by becoming a key supply chain partner. Speaking about her priorities in the G20 meeting, Yellen said she would focus on debt distress in emerging markets and developing countries, multilateral development bank evolution, support for Ukraine, and the global tax deal. “This week, I will continue to push for full and timely participation of all bilateral official creditors on pending debt restructuring cases. I was pleased by last month’s progress on Zambia, which I discussed with my Chinese counterparts last week,” she said. The Zambia agreement took too long to negotiate, but it shows that creditors can overcome differences and agree on common principles for debt relief, she said. “We should apply the common principles we agreed to in Zambia’s case in other cases — rather than starting at zero every time. Our hope and expectation are for Ghana and Sri Lanka’s debt treatments to be finalised quickly so that the IMF can move forward with their first programme reviews by this fall,” she said. China is a major bilateral official creditor to Sri Lanka and many other poor and developing countries which are facing debt distress. The US is committed to implementing a global corporate minimum tax deal reached in 2021, Yellen said. She said negotiations on technical details of the deal’s Pillar 1 — reallocation of taxing rights on large multinationals including big technology firms — were “very close” to completion.On reforming and increasing funding capacity of multilateral development banks (MDBs), the US treasury secretary said the G20 MDB Experts Group report is a useful input to the agenda. “I am pleased with the report’s emphasis on incorporating global public goods into the mandates of the MDBs — along with its focus on making the operating model of the institutions more responsive through changes to culture, incentives, and risk appetite,” she said. Yellen supported the request for swift implementation of the Capital Adequacy Framework recommendations. “But I believe that we should only explore capital increases after considering the reforms that I laid out along with those in the report. We should build better banks, not just bigger ones,” she said.
Source: Financial Express
With the 11th round of negotiations on India-UK Free Trade Agreement in the final leg, commerce secretary Sunil Barthwal will leave for London on Monday for a two-day visit to push for further progress. The commerce secretary’s visit will follow commerce and industry minister Piyush Goyal’s visit to the UK last week as the 11th round of negotiations started.The 11th round of negotiations started on July 10 and are expected to go on till July 19. “The visit was strategically timed, coinciding with the critical stage of ongoing negotiations, and proved to be instrumental in moving the discussions forward,” according to the statement issued after Goyal’s visit. An official said both the visits are important as talks are at a crucial stage. Both sides are keen to conclude the negotiations, which were launched in January 2021, at the earliest after the October 2022 deadline was missed.Last week, the commerce secretary had said that agreement on many pending areas of discussions is within reach. He had said that of the 26 chapters, negotiators have been able to close discussions on 14 areas and are closing in on agreement on five more including labour, environment and digital trade.
Source: Financial Express
As foreign trade agreements (FTAs) proliferate and turn more complex, the department of commerce is looking to increase its capacity to deal with the challenges posed by the situation, a senior official said. The idea is to expedite the process of ironing out differences with the potential partner countries and conclude more deals. Apart from the FTAs that are under negotiation now with the UK, European Union, Australia and Canada, South American and African countries too have put out feelers of late to New Delhi for agreements to ease two-way trade in goods and services.Given that multilateral trade liberalisation process has slowed, India is eyeing FTAs as an efficient way to boost foreign trade and is favourably inclined to several of these proposals. “Negotiations (on FTAs) really consume time, energy and human resource, so we are trying to increase the bandwidth within the department,” the official who did not wish to be named said. While more human resources and outside help will aid the efforts, the experience gained in the intense negotiations on the spate of FTAs being negotiated or signed would help build capacity. In this respect, the FTA being negotiated with the UK is most important as it is the most complex one India has attempted and will be the first comprehensive trade agreement signed with a developed country. “We would have developed some kind of a know-how once we would have closed the FTA with the UK. A lot of clarity on the new issues which we want to deal with would have come,” the official said. India-UK FTA includes discussions on 26 policy areas of which tariffs are just one part. Areas being negotiated include environment, labour, intellectual property rights, services and digital trade. India has offered FTA to African countries collectively or individually. It is also planning to upgrade its existing trade agreements to broad-based FTAs. India and Gulf Cooperation Council (GCC) – which includes the United Arab Emirates, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait – are also looking to negotiate a trade pact with India.“A delegation from Latin American countries has met us and they are interested in FTAs with us. We are looking deeply into this,” the official said. India already has a Preferential Trade Agreement (PTA) with trading bloc MERCOSUR that comprises Argentina, Brazil, Paraguay and Uruguay. India has another PTA with Chile. “We would like to go for FTAs because it is in the interest of both sides. Broad Based FTAs reduce tariffs and non-tariff barriers and then trade grows between the two,” the official said. Within the 10–member Association of SouthEast Asian Nations (ASEAN) India is interested in converting its existing preferential trade agreements to FTAs. “So whatever PTAs which we have done, we will be converting them into full Comprehensive Economic Partnership Agreements. India has signed trade agreements with Asean as a bloc and with individual member states like Singapore and Thailand. Last year commerce andindustry minister Piyush Goyal had released a report on restructuring of the department of commerce which included recommendation for capacity building of Indian Trade Service to drive specialisation and institutional memory. Restructuring exercise included ‘Trade Promotion Body’ to drive formulation and execution of promotion strategy, digitization of trade facilitation processes and rehauling of the data analytics ecosystem.
Source: Financial Express
Readymade garment export from India has seen a fall of 16.87 per cent in June 2023. As per the latest official data (quick estimates for selected major commodities) it was US $ 1501.12 million in June 2022 while on 23rd June, with the downfall of 16.87 per cent, it was US $ 1247.95 million. From April to June period, apparel export was also down by 17.72 as it was US $ 4490.66 million in April to June, 2022 and US $ 3694.71 million during April to June 2023. The export of Man-made Yarn/Fabrics/made-ups etc. is also down by 17.22 per cent on month-to-month basis as it was US $ 449.95 million in June 2022 and US $ 372.46 million in 23rd June. From April to June period, the same was down by 12.61 per cent. As far as import of Textile yarn fabric, made-up articles is concerned, it is also down by 30.18 per cent in 23rd June compare to June 22 and 30.18 per cent in April to June period. It can be mentioned here that overall exports of goods from India declined for the fifth consecutive month in June 2023, falling a steep 22.02 per cent (year-on-year) to US $ 32.97 billion.
Source: Apparel Resources
The 19th edition of ITMA proved to be a great success for Italian textile machinery manufacturers. ACIMIT president Zucchi noted, “So many satisfied visitors and exhibitors, confirming the vitality of the global textile machinery industry, and of the sector in Italy particularly.” ITMA 2023, which was held in Milan from June 8 to 14 at the exhibition fairgrounds of Fiera Milano – Rho, closed with some impressive figures. Hosting 1709 exhibitors in total, the seven-day fair registered an attendance of over 111,000 people hailing from 143 Countries. With 422 companies exhibiting their wares, Italy was by far the Country with the largest contingent, coming in first for the number of visitors as well at 29% of the total in attendance, followed by Turkey, India and Germany (6% each), France (4%) and Brazil (3%). “ITMA remains a must event for the industry, and the figures for the edition in Milan speak for themselves, confirming the resilience of the textile sector worldwide” comments Alessandro Zucchi, president of ACIMIT. “As far as our Country is concerned, the number of exhibitors and visitors testifies to the vitality of the entire Italian textile supply chain. Italy’s success, both in terms of visitors in attendance and orders acquired during the fair, is the consequence of a deep rooted commitment – which is also an economic investment – put forward by our manufacturers, and the indispensable support in implementing promotional initiatives for ITMA with the support of the Ministry of Foreign Affairs and International Cooperation and by the Italian Trade Agency”. Solutions were being proposed for more sustainable textile productions by most of the exhibitors, and here too Italian manufacturers were absolutely at the forefront, with solutions catering to saving water, energy and raw materials. Sustainability was also the main focus of the ACIMIT press conference, in which the ACIMIT Green Label Award was assigned to two Italian manufacturers, Pafasystem S.r.l and Brazzoli S.r.l., who among ACIMIT’s associated members have proved to be the most committed to reducing the amount of carbon dioxide equivalent emissions produced during the operation of their machinery over the past few years. Among the many government representatives in attendance, ITMA 2023 hosted high-level delegations from two of the world’s major textile producing countries, India and Uzbekistan. ACIMIT’s top management thus met with the President of Uzbekistan Shavkat Mirziyoyev and the Indian Minister of Textiles, Mrs. Darshana Vikram Jardosh showcasing the excellence of Italian technology on offer. Other significant encounters took place with the Ambassador of Iran Mohammad Reza Sabouri, as well as with representatives of the Italian Government, such as the undersecretary of the Ministry of Foreign Affairs and International Cooperation, the Honourable Giorgio Silli. In conclusion, a comment by ACIMIT president Zucchi: “This edition will be remembered for the message it conveyed, as exhibitors presented numerous technological innovations focusing on a search for greater sustainability and a more decisive digitization of textile production processes. Sustainability and digitization: a combination that constitutes the key to success for the entire textile supply chain, and which I am sure will see new developments at ITMA’s next edition, to be held in Hannover (Germany) from September 16 to 22, 2027.”
Source: THE TECOYA TREND
INTERNATIONAL
Carnegie, supplier of sustainable textiles and acoustical management solutions for the commercial industry, has launched the Hygeia Collection, a new high-performance sustainable textile series that provides upholstery and window drapery solutions for health and wellness spaces. Ideal for specifiers looking for interior fabrics that offer performance, style, and excellence in sustainability standards, the seven patterns in the Hygeia Collection expand Carnegie’s wellness-focused offerings with classically-inspired neutrals. Suitable for a range of healthcare projects, the design and high-performance characteristics of the fabrics naturally extend into other markets that seek to create welcoming, human-centric environments, including education, hospitality, corporate, and multifamily. “The health and wellness sector is evolving rapidly due to critical challenges like inflation, labor shortages, dropping reimbursements, supply issues, and more. As a result, there is a major initiative in the industry to create new hospitality-inspired environments that promote wellness, help workers be more productive, and improve consumer experience,” said Mary Holt, Chief Design Strategist at Carnegie. “Carnegie’s Hygeia Collection was created to rise to these challenges, offering classically beautiful designs in a variety of fabric types while adhering to the highest sustainability standards and offering unbeatable performance, durability and cleanability.” The Hygeia Collection features 100% recycled textiles, including the U.S.’s first 100% recycled Trevira CS window drapery from Création Baumann. The series also introduces the first coated product into Carnegie’s Elements collection, offering a pen and ink resistant polyurethane that provides all the performance of vinyl, but with none of the health and safety concerns. Marrying classic, sophisticated design with unparalleled durability and the highest sustainability standards, the Hygeia Collection allows designers to create memorable, healthy spaces at different price points, from bespoke luxury, to value performance. All fabrics in the Hygeia Collection are 100% PVC and PFAS free, while all upholstery fabrics are tested to withstand 100,000 to 250,000 double rubs, making them highly durable and easy to clean and maintain for the most high-traffic environments. Created for designers needing fabrics that are easy to specify, the fabrics are ideal for spaces that require strict cleanability or durability, or for environments looking to rebrand or modernize an outdated space with budget restrictions.
The new patterns include: Page Turner – Turn the page on material responsibility and overturn expectations of a plastic bottle’s potential. Each yard of Carnegie’s bleach cleanable performance fabric Page Turner is made entirely from 96 previously consumed PET bottles, making this a story to read again and again. The pattern is available in six colors and comes with a three-year warranty.
Casanova – A quintessential heritage fabric, corduroy has become a beloved material used in broad cross sections and applications. Offered in six colors, the Casanova pattern channels a collegiate look while maintaining the performance qualities of a reliable work-horse fabric. It comes with a three-year warranty.
Mustang – Reinterpreting the enduring appeal of leather, the Mustang fabric harnesses this beloved timeless look while ensuring affordability as part of Carnegie’s Elements collection. As a member of the Clean Slate coated collection, it has been formulated for longevity and cleanability, guaranteeing that it will always look classic, but never tired. Mustang is available in 12 colors, is pen and ink resistant, and flame resistant. It contains very low volatile organic compounds (VOCs), is approved for hospital grade cleaners, and comes with a five-year warranty.
Helix Print – Designed to have the appearance of a woven fabric, this silicone hybrid upholstery will make users look twice. Featuring unprecedented printing clarity with all the benefits of silicone, the Helix Print pattern gives the appearance of a textural woven stripe, while also boasting superior cleanability, durability, and sustainability. Helix Print is offered in four colors, is inherently antimicrobial, antibacterial, and flame resistant, and contains extremely low VOCs. It is water soluble, bleach cleanable, is approved for hospital grade cleaners, and comes with a five-year warranty.
Juno Print – Featuring unprecedented printing clarity with all the benefits of silicone, Juno Print mimics the look of a luxury wool that is highlighted with a novelty slub yarn, all while boasting superior cleanability, durability, and sustainability. Juno Print comes in three color options, is water soluble, bleach cleanable, and approved for hospital grade cleaners. It is inherently antimicrobial, antibacterial, and flame resistant, contains extremely low VOCs, and comes with a five-year warranty.
Shari Eco – The beauty of this Création Baumann fabric lies in its semi-transparent nature, which gives it a natural appearance resembling mottled wool. It offers a soft texture and flowing drape that enhances its appeal, the satin weave used in its construction resulting in a two-toned effect, with different colors on the front and back that add an attractive dynamic to any room. Available in eight colors and made from 100% Recycled Trevira® CS Polyester, Shari Eco is a finish-free drapery that is water-solvent, inherently flame resistant, and is certified for indoor air quality specifications.
Nolin – This Création Baumann curtain fabric exudes a semi-transparent quality, drawing inspiration from the beauty of nature. It showcases a captivating look and possesses a soft drape, thanks to its yarn-dyed composition. The mottling effect and the elongated flame pattern, created from recycled flame-retardant yarn, enhance its natural expression and contribute to its lively structure. Offered in eight stunning colors, Nolin is made from 100% Recycled Trevira® CS Polyester. The finish-free drapery is water-solvent, inherently flame resistant, and is certified for indoor air quality specifications.
The Hygeia Collection is Carnegie’s latest achievement resulting from the last 70+ years of championing responsible innovation through Materials That Matter™, proving that beautiful high-performance solutions can be delivered sustainably.
Source: Textile World
Global fashion organisations have made a united call and pressed global, national, and local authorities for sustainable digital labelling. The collective group of a total of 130 organisations, in a joint letter to the authorities concerned on July 11, advocated for the modernisation of textile, garment, footwear, and related accessories labelling requirements and legally allowing more sustainable and economically viable digital labels for required labelling information The signatories represent the global fashion and sportswear industry, and its enablers and stakeholders, including those representing materials such as leather, wool, and textiles; and those working to advance sustainability, circularity, and authenticity solutions. The group included American Apparel and Footwear Association (AAFA), International Apparel Federation, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB), according to the letter. Industry estimates show that collectively, labeling requirements now result in the annual production of approximately 5.7 million miles (about 9.2m km) of label tape - enough to stretch from the earth to the moon, and back, twelve times each year. "Shifting to the use of digital labels would significantly reduce labeling waste and significantly aid in decarbonisation efforts, resulting in the elimination of at least 343,000 tonnes of CO2e from industry supply chains," read the letter. "Consumers today want more information with less waste. The opportunities are endless if digital opportunities are unlocked. Purchasers will gain access to more detailed and accurate information about the textiles, garments, footwear, and related accessories they are considering buying, such as more indepth materials and origin information," AAFA president and CEO Steve Lamar said in a statement. It also unlocks more information throughout the garment's lifecycle, including details about resale, repair, rental, upcycling, or recycling, he said, adding this is one tool for a more responsible and agile global industry. "We need the Federal Trade Commission and sister agencies around the globe to update their rules to give companies the option to meet labeling standards using digital means," he said. When asked, BGMEA president Faruque Hassan said they joined the global alliance as a fully digital labeling solution would cut manufacturing cost and thus make fashion more competitive and affordable. At least three labels are there in a garment while the numbers are many depending on buyers' requirements, he said, adding that price tags are done digitally in almost all garments they export. "But it is the buyer who has to ask for such digital label as we only implement it," he added. Moreover, digital labeling will also help controlling the manufacturing of counterfeit products as every inputs of the finished goods would come under digital labeling where all the parties in the supply chain would be identifiable. Bangladesh is the second largest apparel exporter in the world after China. The country fetched US$46.99 billion from readymade garment export in the just concluded fiscal year of 2022-23, according to official data. Bangladesh fetched US$9.73 billion from RMG exports to the USA in 2022, turning the destination its single largest market.
Source: The Financial express
Most of the capital goods monitored by China’s statistical authorities registered higher prices in early July compared with late June, official data showed Friday. Of the 50 major goods classified in nine categories, including seamless steel tubes, gasoline, coal, fertilizer, and some chemicals, 35 reported higher prices in the period, 12 saw price declines, while the prices of three remained unchanged, according to the National Bureau of Statistics (NBS). Specifically, the price of liquefied natural gas went up 0.5 percent in early July compared with late June, while the price for liquefied petroleum gas decreased by 1.6 percent. During the same period, the hog price rose 2.2 percent, NBS data also revealed. The figures, released every 10 days, are based on a survey of nearly 2,000 wholesalers and distributors in 31 provincial-level regions across the country.
Source: Business Today
Apparel export to newer markets looks on an encouraging pickup yielding to Bangladesh in the last fiscal US$8.37 billion in a 31.38-percent annual growth, amid a downturn in the West. Official statistics show Australia, Japan and India leading the list of switch to non-traditional export destinations for the country with earnings from each of the three Asia-Pacific economic majors having surpassed a billion-dollar mark. By a contrast in the economic partnership, the country's export receipts from existing major markets like Germany and the USA showed a fall in the just-past fiscal year (2022-23). Earnings were US$6.37 billion from the non-traditional markets in the fiscal year of 2021-22, according to Bangladesh Garment Manufacturers and Exporters Association (BGMEA) data. The non-traditional market accounted for 17.82 per cent of the total RMG earnings worth US$46.99 billion in the last fiscal year. In fiscal 2009-10, RMG exports to non-traditional markets were only US$1.08 billion or 8.66 per cent of total earnings, as per the data. According to industry people, Australia, Brazil, Chile, China, India, Japan, Korea, Mexico, Russia, South Africa, the United Arab Emirates, Malaysia, Saudi Arabia, New Zealand and Turkey are the 15 prospective markets beyond the three traditional export destinations: the United States, the European Union and Canada. Exports of the country's readymade garment (RMG) items to the up-and-coming markets have been on the increase over the years, pushed by ongoing efforts for diversifying export markets. The drives include visits, participation in trade shows and government support, especially the cash incentives, for shipping goods to non-traditional markets, they said. Besides, exporters are now focusing more on such markets for sluggish demand in major traditional markets mainly because of economic slowdown, high inflation and interest-rate rises over there for global factors like the Russia-Ukraine war, post- COVID inventory swelling. Out of these countries, Bangladesh's exports fetched US$1.59 billion from Japan, US$1.15 billion from Australia, US$1.01 billion from India and US$538.46 million from Korea in over 45-percent, 42-percent, 41- percent and 22-percent growth respectively during the July-June period of 2022-23. On the other hand, the export of Bangladeshi-readymade garments declined about 27 per cent to $426.39 million to Russia and by 11 per cent to $163.10 million to Chile in the last fiscal. Talking to the FE, BGMEA vice-president Md Shahidullah Azim said they were actively working to raise both export earnings and market share in the non-traditional destinations mainly to diversify market and reduce dependence on the traditional ones where demands are changing due to the economic turmoil, high inflation rates and the Russia-Ukraine war. "We are now focusing more on new markets and product diversification, especially based on non-cotton or manmade fibre, to sustain the country's export growth amid the uncertain economic situation in major markets, especially in the EU and the USA," he says. Out of the US$46.99 billion worth of earnings, some 50.07 per cent or US$23.52 billion came from the EU while exports to the USA declined by 5.51 per cent to US$8.51 billion which accounted 18.12 per cent of the total RMG exports. Apparel earnings stood at US$ 5.02 billion in the UK and US$1.54 billion in Canada, recording 11.78- percent and 16.55-percent growth respectively, according to data. "Bangladesh's clothing sector is struggling to boost its growth in the USA due to the unstable economic situation there," Mr Azim said, adding that the RMG sector's potential is growing rapidly in non-traditional and new markets. New markets offer opportunities to access new customer segments that may have different tastes, preferences, and requirements from existing markets, he noted. Echoing similar views, Mr Fazlul Hoque, former president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), however, said the country enjoys duty benefits in many of the nontraditional markets like Japan, Australia, Chile, China and India. He recommends government-level discussions with the countries that offer duty-free market access to local RMG so that "the duty facility continues after Bangladesh graduates from the least-developed country (LDC) status"
Source: The Financial express
