INTERNATIONAL
Maharashtra today exhorted Chinese companies to invest in sectors, including infrastructure, to help accelerate economic growth of the state and the country as well. "On behalf of Maharashtra Government, I invite Chinese companies to invest and intensify co-operation. They should look at Maharashtra state as a destination which will increase our bi-lateral trade between India-China as recommended by Prime Minister Narendra Modi," Maharashtra Industry Minister Subhash Desai said. The Minister further said that the Indian manufacturers should follow the Chinese methods of manufacturing products and services of international qualities at an affordable price. Such expertise will not only lift the quality of the Indian products and services but will also give them an edge in to international market, he told reporters after inaugurating 'China Guangxi Products Exhibition (India) 2016' here. China's knowledge in areas like water and waste management, alongwith its experienced urban planners and administrators will provide a necessary push to the growth of Maharashtra and India, he added. Ma Jixian, Deputy Director General of Commerce of Guangxi Zhuang Autonomous Region, China, said so far Guangxi has set up seven ventures in India. We see great trade opportunities between India and China. Desai urged Chinese trades and industry to popularise 'Make in India' tag into China, just like the popular 'Made in China' tag in India. India needs USD 1 trillion investment in infrastructure and China's expertise and investment in this sector will be continuously sought after, he added.
The Department of Commerce of Guangxi Zhuang Autonomous Region, China is hosting three-day 2016 CGPE exhibition. It has been supported by the China Embassy and Consulate Offices in India, Mumbai Chinese Enterprise Association (MCEA), Indian Merchants' Chamber (IMC) and India-China Chamber of Commerce & Industry (ICCCI). This is the first time for the Government of Guangxi is independently hosting the exhibition to showcase its products and services. Around 58 Guangxi enterprises will exhibit in this event, with 65 booths and 2,700 square meters of (the exhibition) area. The exhibitors' business cover the field of light industrial products, arts and crafts, foodstuffs and native produce, medicine and health care, machinery and electronics, metals, minerals and chemicals, textile and clothes.
SOURCE: The Economic Times
The Centre may have to make necessary changes in legislations relating to SEZs (Special Economic Zones) and foreign trade to make them compliant with the Goods and Services Tax (GST) regime, Rita A Teaotia, Commerce Secretary, said here on Friday. Considered to be country’s biggest ever indirect tax reform, the GST framework has already been passed by Parliament. “Suitable changes will have to be made in the SEZ and Foreign Trade Acts to make them compliant with the GST. Many DGFT schemes will also have to be moderated as well,” she said on the sidelines of an event organised by the Confederation of Indian Industry (CII). “The GST council will take a lot of decisions and the final contours will come up then,” she added. According to her, the government has engaged some legal experts to study the implications of GST on exports. “We will examine the need for a new SEZ policy later. At this point, what I’m talking about is making our existing SEZ law consistent with the GST,” the official maintained. She further said the Centre was committed to zero-rating of exports after implementation of GST.
GST, a game-changer
Calling GST a “game-changer”, Teaotia said after its implementation, cost of locally manufactured goods will go down. Logistics cost too will go down as company’s often opt for multi-location warehouses to save on the multiple taxes between Centre and States, while movement of goods is expected to be faster. The proposed tax regime will lead to a “one to 1.5 per cent” increase in GDP every year.“Services will also get a boost. We will work together with the department of revenue to address all of them,” she added.
International trade
According to Teaotia, the international trade architecture is at the “crossroads”. Over the past eight years, multi-lateralism, as embodied by the World Trade Organisation, has systematically eroded. It is being replaced by mega regional (trade) agreements.
SOURCE: The Hindu Business Line
Handset makers’ body Indian Cellular Association (ICA) has urged the government to continue with the differential duty structure once the GST is implemented to promote domestic manufacturing of mobile phones. Stating that the industry is “apprehensive” about further investments, ICA has written to Department of Electronics and IT Secretary Aruna Sundararajan calling for settling the duty differential principle to realise the ‘Make in India’ vision. The current duty dispensation is 12.5 per cent countervailing duty (CVD) versus 1 per cent excise duty (without input credit of excise duty paid on the goods). Differential duty made imports of mobile handsets more expensive compared to domestically manufacturing them, which led to companies like Xioami, One Plus and Gionee setting up new manufacturing units during the past few quarters. “It is imperative that the differential duty dispensation should continue till 2025-26 in Central GST. A minimum duty differential of 10 per cent or more should be maintained to overcome disabilities and thereby, continue to make domestic manufacturing competitive,” ICA National President Pankaj Mohindroo said. He added that the GST dispensation for the industry must facilitate and catalyse establishment of India as a global manufacturing hub for mobile handsets and components.
ICA said there has been about 200 per cent growth in mobile handset manufacturing activity in India in value terms during 2015-16 over 2014-15. Over 35 new mobile handset manufacturing plants have so far been established, generating employment for about 50,000 people directly and over 90,000 indirectly. ICA has also proposed that a merit rate of 5 per cent be imposed on the entire mobile handsets ecosystem for completely built unit (CBU) imports and domestically manufactured CBUs. “This is also supported currently by the VAT rates prevalent in most states. States which are currently on RNR or do not follow the floor rate of 5 per cent recommended by the Empowered Committee of State Finance Ministers may suffer some revenue loss,” ICA said. This revenue loss will not be substantial because by having a single rate across the country, trade will improve tremendously, grey market will virtually disappear and erstwhile higher rate VAT jurisdictions will see a spurt in e-commerce sales, it added.
Besides, mobile phone inputs like parts, components and accessories have been subject to zero per cent CVD, BCD and SAD. However, charger/adaptor, battery and headsets are subject to 12.5 per cent CVD and 2 per cent excise duty without input tax credit on domestic manufacturing. This principle has been created to encourage domestic manufacturing for components in a phased manner. “We also request that the same GST ecosystem as recommended above should be extended to inputs, parts, components and accessories for the after-market services which is a very small market compared to the final mobile phone manufacturing,” it said.
SOURCE: The Financial Express
India’s focus at the G20 summit in China next month will be on global structural reforms to generate jobs, spur inclusive growth and discuss issues relating to the $100-billion climate financing committed by developed nations, the Economic Affairs Secretary, Shaktikanta Das, said today. Das also said the BRICS summit in Goa in October will discuss a proposal to set up a rating agency for the five-member bloc on the lines of US-based rating agencies.
India-China talks
Das, who is here to attend the 8th India-China Financial and Economic Dialogue, said the main thrust of India at the G20 summit to be held in eastern China’s Hangzhou city on September 4 & 5 will be the implementation of structural reforms by the member-countries to spur job growth. The other important aspect will be Prime Minister Narendra Modi’s bilateral meetings with various world leaders on the sidelines of the G20 summit, Das told PTI. Details of his visit are being worked out, he said. Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom and the US and the European Union constitute the G20. “From our point view, we would like to convey to the world the need structural reforms which is one of issues being highlighted by Chinese Presidency will have to continue,” Das said. Many countries are undertaking structural reforms and India’s emphasis is to appeal to the world community to continue with reforms “because that is only way you can revive global growth’’, he said.
Structural reforms
India has undertaken a number of structural reforms, he said. “In India our track record is very strong. We have done huge amount of liberalisation in FDI policy. With regard to the FDI we are the most open economy in the world,” he said. While Parliament has adopted the GST, the bankruptcy law was also enacted, he said. The Aadhaar Bill also mandate the financial backing for disbursements of subsidies and other government assistance directly to people. It plugs a lot of leakage, he said. Added to that is ease of doing business, process simplifications, auction of natural resources, Das said. “Next thing we would like to highlight is the aspect of inclusive growth. Every growth has to be inclusive to result in job creation. Because growth without job creation has its own pitfalls,” he said, adding only the G20 summits held in Asia highlight that aspect and it does not figure when the summits are held in western countries. “Keeping precisely this aspect, in India we have come out with major changes in textile sector where lot of incentives are being given to textile and garment manufacturers to increase our share in the world trade,” he said. Though the developed countries have committed for $100-billion climate finance, its realisation is nowhere in sight, he said. “So we would again stress the developed nations to make available the $100 billion which is new and additional source of financing,” he said.
Fastest-growing economy
On whether India’s current status of fastest-growing economy will get necessary focus at G20 to attract more FDI, he said: “last year we got $55 billion which is an all-time high. Mainly because India has become much more attractive investment destination.” First, India is among very few counties which is recording 7-plus per cent. Among the major economies it is the fastest growing economy, he said. “Fiscal parameters are robust. Fiscal deficit is under control. Target numbers are being achieved. Current Account Deficit last year was only 1.1 per cent. At one time, it was almost 6 per cent. Last year we closed at 1.1 per cent,” he said.
Inflation under control
Inflation is by-and-large under control. “We were around 5 per cent retail inflation that is CPI. Now five or five-and-a-half that is the range. Last month only touched 6.07 per cent because of vegetable price pulses milk and eggs,” he said. With prediction of good monsoon and increase of acreage and raise “we expect inflation to moderate”, he said. The BRICS, (Brazil, Russia, India, China, South Africa) Summit will discuss proposal to set up a rating agency. The New Development Bank of the BRICS has already taken off. “We are now developing BRICS rating agency. Today all the rating agencies are from US. So we are looking at promoting a rating agency. We are working more on that,” he said.
IMF quota regime
On the reforms at the IMF and the World Bank, Das said India and China are stressing the need for quota regime of IMF. The 14th quota review of IMF reforms has been just ratified by the US Congress. “The 15th quota reform should have been finalised. The IMF has set a target that by 2017 annual meeting reforms will be through, for which the negotiations on quota reforms should be speeded up,” he said. “With regard to World Bank, both India and China are reiterating and stressing the need to have the shareholders reform and recapitalisation of World Bank and governance reforms to give greater voice based on current realities. The current GDP numbers should be basis the basis not historical data,” he said. On the Chinese investments in India, he said that as part of the rebalancing strategy China is cutting down excess capacity on certain aspects of manufacturing, he said.
SOURCE: The Hindu Business Line
China and India today held their 8th high-level Financial and Economic Dialogue here to strengthen trade and economic cooperation, with the two fast-developing nations underlining the need of building more solidarity to adopt more responsible macro economic policies. Secretary Economic Affairs, Shaktikanta Das accompanied by a delegation of officials from the RBI and Finance Ministry took part in the annual Dialogue along with the Chinese delegation led by Vice Minister for Finance Shi Yaobin. “India is working hard to unify the domestic market, improve infrastructure, speed up manufacturing sector development, encourage more Foreign Direct Investment (FDI),” Shi said in his opening remarks at the meeting. “We are happy to hear that in early August India’s GST (Goods and Services Tax) reform has achieved historical breakthrough. In such kind of background we need to learn more from each other to coordinate micro economic policies, face more challenges and create more drivers for our development,” he said. The dialogue mechanism is aimed at exchanging ideas and status reports on the macro economic situation in both the countries in which officials of both the countries brief each other about their economic and fiscal policies and discuss issues of structural reforms and bilateral investment flows and economic cooperation. This year’s dialogue is being held ahead of the G20 summit to be held in Chinese city of Hangzhou next month followed by BRICS, (Brazil, Russia, India, China, South Africa) summits in Goa in October which would focus mainly global on economic slowdown and initiatives to spur growth. In his address, Das said, “Bilateral relations between India and China have witnessed all round progress in recent years”. “This is a significant development and demonstrates the priority being attached by the two countries to our bilateral economic relations,” he said. “The annual dialogue is an important forum that enables us to revisit the entire range of bilateral relations and strengthen various areas of economic cooperation,” he said. He said during today’s talks the Indian side will highlight steps for further cooperation between the two countries with regard to trade, investment flows and participation of both Indian and Chinese companies in each there economic development besides structural reforms and cooperation between the countries in multilateral forums like G20 and BRICS.
Das said institutions like the G20 and BRICS have come to play greater role in evolving global and regional consensus on important key issue affecting global economy. “I see a very good opportunity for a coordinated action between India and China. From the Indian side we will also be highlighting the possibilities of further cooperation with regard to trade and investment flows,” he said. He also said India is happy to note that China which holds the Presidency of the G20 has given greater focus on inclusiveness in the G20 summit agenda. “It is very important to point out that the idea of inclusiveness has been retained and has been given greater focus in G20 agenda under Chinese Presidency,” he said. “Very rightly and timely manner the Chinese Presidency is also giving importance to new industrial revolution on innovation as main drivers of economic growth in the current century,” he said. The world is at a critical stage and innovation and the new industrial revolution will be the key drivers to give extra momentum for the growth of the world economy. “May I reiterate we in India attach high priority to the bilateral relations with China. We are confident to strength modalities of cooperation in major facets of economic and bilateral relationship,” he said. Shi said emerging market economies like India, China face greater pressure today. “In Global community, we keep hearing bad mouthing of emerging economies here and there,” he said. “So as two important emerging economies, China and India need to build more solidarity, air common voice, urge developed countries to adopt more responsible macro economic policies and lay foundation and enabling environment for global economic recovery,” he said. He said both the counties should adopt more pragmatic and open approach to explore more areas bilateral, fiscal and financial cooperation. “Our combined population is over 40 per cent of global population. In 2015 total GDP of the two countries occupy 18.5 per cent of the global GDP. We are enjoying great market and development potential however by the end of 2015 our bilateral trade reached only USD 71.62 billion and China’s investment in India is about USD 4.07 billion. “India’s investment in China is only USD 650 million. This data could hardly match good relations and potential and state of economies,” he said. Shi said China is working hard to scale up infrastructure investment though its Silk Road intuitive which is called One Belt and One Road (OBOR). The Bangladesh, China, India, Myanmar (BCIM) which is part of the OBOR will provide great opportunity for China and India’s economies to take off, he said. “With unprecedented economic opportunities, relevant departments should seize the opportunity to deliver common consensus of two countries by adopting bold and innovate approach to overcome the fiscal, financial as well as investment impediments to achieve higher, better economic trade and investment collaboration,” he said.
SOURCE: The Financial Express
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 47.75 per barrel (bbl) on 18.08.2016. This was higher than the price of US$ 46.74 per bbl on previous publishing day of 17.08.2016.
In rupee terms, the price of Indian Basket increased to Rs. 3189.36 per bbl on 18.08.2016 as compared to Rs. 3126.79 per bbl on 17.08.2016. Rupee closed stronger at Rs. 66.79 per US$ on 18.08.2016 as against Rs. 66.90 per US$ on 17.08.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on August 18, 2016 (Previous trading day i.e. 17.08.2016) |
Pricing Fortnight for 16.08.2016 (July 28, 2016 to Aug 10, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
47.75 (46.74) |
40.73 |
|
(Rs/bbl |
3189.36 (3126.79) |
2723.62 |
|
|
Exchange Rate |
(Rs/$) |
66.79 (66.90) |
66.87 |
SOURCE: PIB
Metro Vancouver is looking into a possible ban on clothing and textile waste in the region's landfills. Much like its ban on food waste, residents who throw out their old clothes could be fined for doing so. "Right now we're looking at doing some consultation for a disposal ban to see if we can ban textiles, including clothing, from disposal to help divert more clothing to either a reuse home or a recycling home," said Karen Storry, with the Metro Vancouver zero waste implementation team. Storry said a 2015 waste analysis showed the average person in the region throws out 19 kilograms, or 42 pounds, of textiles every year. At this stage, she said, Metro Vancouver is still trying to determine why so much clothing is thrown out every year — whether it's because the clothes aren't reusable or if it's a lack of knowledge about where they can donate them. Storry said Metro Vancouver will consult with stakeholders before any sort of ban is in place and will also examine what opportunities are available for people to recycle or donate clothes. Based on similar consultations in the past, she said the process will likely take up to a year.
Textile donations and recycling options
According to the City of Vancouver's Waste Wizard and the Recycling Council of B.C., non-reusable clothes can be disposed of at:
The SPCA's Vancouver branch accepts old towels, sheets and bedding for animal pens. Storry said some donations centres may accept non-reusable clothes for recycling — people should phone ahead before dropping anything off. Also, a City of Vancouver spokesperson said clothing donation bins for the Diabetes Association were placed at the Vancouver transfer station in mid-January. The city said the initiative was put in place as part of its zero waste goal and so far has diverted three tonnes of textiles from the landfill.
SOURCE: The CBC
With the close down of the under developed project, Karachi Textile City, the hopes attached with the project of achieving export target of $2 billion and generation of 80,000 jobs has died down, said a senior official in the Ministry of Textile Industry. The proposal of developing Karachi Textile City is closed, as a special committee constituted earlier, headed by the finance secretary and comprised secretaries of the ministries of textile and planning, development and reform, proposed to the prime minister to shut the project and return the acquired land to the Port Qasim Authority. It was learnt that absence of electricity and gas in the textile city was the prime reason behind the project’s failure and it was not possible to arrange the required electricity supply for the time being. The committee recommended that after handing over the land to the Port Qasim Authority, outstanding loans against the company must also be shifted to the authority. The Ministry of Textile Industry holds the Karachi Textile City administration responsible for not developing the land and providing services to attract investors. So far not a single piece of land has been sold even after seven years of establishment of the textile city. On its part, the company blamed the government for not taking the project seriously and supporting it by providing a steady stream of gas and electricity, which is a basic requirement for establishing an industrial unit. The government had acquired 1,250 acres of land from the Port Qasim Authority for establishing the textile city in 2007. The company was established in 2009 and in 2012 the then prime minister Yousuf Raza Gilani inaugurated the city. However, since then, the authorities have failed to allot even a single plot to the industrialists in order to establish their units. A loan of Rs2.5 billion had already been acquired from banks for spending on the city’s development as well as its employees, who had been receiving hefty salaries for years. The government is making Rs0.6 million interest payment to banks every day and the amount is piling up, said another ministry official. The federal government has a 40% share in the project whereas the Sindh government has 16% shareholding. National Bank of Pakistan (NBP) has 8% stake, the Export Processing Zone 4%, Saudi Pak Insurance Company 4%, National Investment Bank 4%, PIDC 1%, Pak Kuwait Investment Company 4% and Pak Qatar Investment Company 4%. The city was basically designed to establish 250 industrial units, said Karachi Textile City CEO Muhammad Hanif, when approached for comments. He acknowledged that not a single piece of land had been sold for the past seven years. The government should focus on arranging gas and electricity supply to the site rather than closing it down so that it could help boost the national economy.
SOURCE: Yarns&Fibers
Satec, in northern Cuanza Norte province, Textang II, in Luanda, and Africa Têxtil, in Benguela, which are industrial complexes rehabilitated under the country's industrialization programme gearing up to launch large scale fine cotton production with an intention to feed on a permanent basis to its textile industries. According to the minister of Agriculture, Afonso Pedro Canga, some private investors are designing their projects to launch the production of the raw material for the textile industry. For the start of the above plants set for this year, the country will import 20,000 tons of raw material a year in the first phase , before they start producing slowly. With the new technology they can produce and need not much to reach this volume of cotton yarn, he explained. According to the minister, lands have been allocated to private investors in the provinces of Malanje and Cuanza Norte, to grow cotton and later in Benguela. The minister said that arrangements are also in progress to assist family peasants that will engage in growing cotton, starting from Cuanza Sul province, where an area has been put in place, including technical assistance and water to respond to the needs of the emerging industry.
SOURCE: Yarns&Fibers
The Government of Zambia identifies textile as one of the priority sectors for the country’s industrialization and economic development will make investment of USD15m in re-establishing the Mulungushi textile factory, located in Kabwe, Central Zambia. The factory is expected to create over 20,000 jobs in the next 5 years, boost the cotton industry in Zambia and increase its exports. President Edgar Lungu made the announcement during the reopening ceremony of the textile mill on August 1st 2016. The Government of Zambia concluded the takeover of the Mulungushi factory in 2016, 9 years after it closed in 2007 due to operational and financial difficulties. Andrew Chipwende, Director General of the Industrial Development Corporation (IDC) of Zambia said that a technical team has concluded the operation assessment in readiness for a full-fledged production. He further explained that the plant will be manufacturing various garments including military and police uniforms. Currently (2016), the Zambian textile industry considered to be labor intensive employs over 670 people across Zambia, while the Government is putting up deliberate measures to further support the growth of the sector which have potential to greatly contribute to employment and wealth creation at all stages of its value chain.
SOURCE: Yarns&Fibers
