INTERNATIONAL
Technical textiles industry is expected to grow at a rate of 20 per cent to reach Rs 1.58-lakh crore mark in the ongoing fiscal, a top Central Government official said. However, the segment’s potential remains largely untapped in India, the official added. “The government is taking growth of technical textiles on priority basis. The industry is expected to grow at 20 per cent to Rs 1,58,000 crore in FY17. Growing industrialisation, increasing access to medical care and huge infrastructure spending is expected to drive growth,” Textile Commissioner Kavita Gupta said here. Over the last couple of years, India has been growing at a steady pace in the sector with perceptible signs of expansion being observed in a few specialised segments, she said this on the sidelines of Techtextil India Symposium 2016 which began here today. The Centre is giving financial support for growth of the industry. It has already announced 15 per cent capital subsidy for investments in technical textiles under the Amended Technology Upgradation Fund Scheme, Gupta said. The global technical textiles market is expected to reach USD 193.16 billion by 2022. Growth of key end-use industries such as agriculture, construction, packaging and automotive in BRICS nations is expected to remain a key driving factor for global technical textiles market, the IAS officer said. The Commissioner called for increasing spend on R&D in the sector. The sector spends around 10-11 per cent on R&D at present and hopes to double the same in coming years.
The 6th edition of the two-day symposium has brought the entire cross-section and stake-holders of the industry at a common platform as they look to share their knowledge about the global trends and developments, market potential, opportunities and future prospects. Technical textiles refers to products used for their diverse and multifunctional properties. Technical textiles offers several advantages in their functional aspects for improving health and safety, cost effectiveness, and durability and strength of textile material.
SOURCE: The Financial Express
President Pranab Mukherjee has signed the Goods and Services Tax (GST) Bill, officially known as The Constitution (122nd Amendment) Bill. This paves the way for setting up of the GST Council. The Council will comprise of Union finance minister and state finance ministers. It will decide on tax rates and revenue threshold levels for traders. Sharing of administrative control between the Centre and the states will also be decided by the Council. The government is aiming to implement GST from April 1, 2017. But before that the GST Council needs to resolve important issues, post-which it can table supporting legislations like the Central GST law and the integrated GST law in Parliament, preferably in the upcoming winter session that begins in November. “We have the months of September and October and parts of November to do that. So there is a lot of work to do and if you are able to successfully transact those issues, then in the winter session of Parliament the central legislations, with some drafts in public domain, will have to be brought in,” finance minister Arun Jaitley said yesterday at an event.
Termed as the biggest tax reform in Independent India, the GST bill aims at replacing all central indirect levies like excise duty, countervailing duty and service tax, as also state taxes such as value added tax, entry tax and luxury tax, by a single tax pan-India. Analysts’ estimate that the implementation of the GST is will increase the country’s GDP growth by 1.5 to 2 per cent. The implementation of the GST, however, could pose a challenge as transactions of producers and end consumers have to be linked. Moreover, taxes have to be matched on the IT systems of Centre, states and companies.
SOURCE: Fibre2fashion
The leaders of South Korea and India on Thursday shared the need to accelerate negotiations to improve their bilateral free trade agreement (FTA) as they seek to deepen economic ties, Seoul's presidential office Cheong Wa Dae said. During a summit in the Laotian capital of Vientiane, President Park Geun-hye and her Indian counterpart Narendra Modi agreed on the need to advance improvements talks on the Comprehensive Economic Partnership Agreement (CEPA) -- a type of FTA that emphasizes two-way economic cooperation on top of market opening. India and South Korea’s CEPA took effect in January 2010. But in June, the countries began official talks to improve the trade agreement. "The two leaders shared an understanding of the need to further promote market opening and free trade at a time when instability in the world economy grows due to low growth, volatility in the financial market and the emergence of trade protectionism," Cheong Wa Dae said in a press release. During the summit, Park, in particular, asked Modi to help South Korean firms who complained about Indian import regulations in the steel and chemical sectors. Modi, in response, showed his willingness to address the issue. The South Korean leader also took note of the fact that the bilateral relationship has entered a "new phase" since the two sides elevated relations to a "special strategic partnership" when Modi visited Seoul in May last year. Modi said that the elevation has been a "great asset" for both, and encouraged Park to join efforts to contribute to the peace and prosperity for Asia. The president used the summit to ask India to actively support international efforts to address the North Korean nuclear standoff. Modi, in turn, pledged to continue to cooperate with Seoul in tackling the issue. Park and Modi are in Vientiane to attend back-to-back summits, including those involving the 10-member Association of Southeast Asian Nations.
Meanwhile, Park held a separate summit with Australian Prime Minister Malcolm Turnbull to discuss North Korean issues, Cheong Wa Dae said. Turnbull expressed his support for Seoul's policy toward the communist state, saying it would strongly respond to any acts that threaten the peace and security of South Korea and neighboring countries. Park also took note of Australia's active efforts to have the East Asia Summit adopt an unprecedented statement on non-proliferation that urged Pyongyang to abandon its nuclear and ballistic missile programs.
SOURCE: The Yonhap News Agency
India today gave its commitment to support the realisation of a balanced Regional Comprehensive Economic Partnership Agreement that will offer equal justice to manufacturing, services and investment sectors. The Regional Comprehensive Economic Partnership Agreement (RCEP) agreement was discussed at both ASEAN-India and East Asia Summits attended by Prime Minister Narendra Modi. The Prime Minister and other leaders reaffirmed support for a modern, comprehensive, high quality, balanced and mutually beneficial agreement, sources said here. Later India, the 10 member ASEAN, Australia, China, Korea, New Zealand and Japan adopted a joint statement stating that progress had been made in negotiating a mutually beneficial economic partnership.
The RCEP statement welcomed the intensified efforts to advance market access and text-based negotiations, remaining mindful that considerable work still had to be done. “We are pleased to note the resilient economic performance of the countries participating in the RCEP negotiations given the challenging global economic conditions,” the statement said. The combined output of the sixteen Participating Countries amounted to USD 22.4 trillion or 30.6 per cent of world output in 2015. The total trade among the Participating Countries amounted to USD 11.9 trillion in 2015, while total FDI inflows to Participating Countries reached USD 329.6 billion, the statement said. While acknowledging the complexities of the RCEP negotiations and the diversity of the Participating Countries, including differences in the level of development, the countries resolved to find appropriate ways to address the various sensitivities and interests of each Participating Country to arrive at balanced, high-quality and mutually-beneficial outcomes. The 16 nations in the agreement reiterated the importance of advancing negotiations and instructed their Ministers and officials to further intensify negotiations in a cooperative manner for the swift conclusion of the RCEP negotiations.
SOURCE: The Financial Express
Prime Minister Narendra Modi on Thursday participated in the 11th East Asia Summit here, the premier leaders-led forum in the Asia-Pacific region. "Constructing the arc of a new Asian Century. PM @narendramodi participates in the 11th East Asia Summit," External Affairs Ministry spokesperson Vikas Swarup tweeted. Earlier in the day, Modi attended the 14th India-Asean Summit which was attended by the leaders of 10 southeast Asian nations -- Indonesia, Malaysia, the Philippines, Singapore, Brunei, Cambodia, Laos, Myanmar, Vietnam and Thailand. The East Summit is also being attended by leaders of the 10 Asean nations and those of China, Japan, South Korea, Australia, New Zealand, the US and Russia. Since its inception in 2005 -- India is a founding member, the East Asia Summit has played a significant role in the strategic, geopolitical and economic evolution of East Asia. On Thursday, Modi also held bilateral meetings with Laos Prime Minister Thongloun Sisoulith, South Korean President Park Geun-hye, and State Counsellor and Foreign Minister of Myanmar Aung San Suu Kyi on the sidelines of the two summits. He is also scheduled to meet US President Barack Obama later in the day.
SOURCE: The Ians Live
Prime Minister Narendra Modi today met US President Barack Obama on the sidelines of the 14th India-Asean Summit and the 11th East Asia Summit in Vientiane. "Two democracies and a defining partnership of our era! PM meets President Obama," External Affairs Ministry spokesperson Vikas Swarup tweeted with pictures of the two leaders. The two last met when Modi visited Washington in June. The second India-US Strategic and Commercial Dialogue was held in New Delhi last month.
INDIA-ASEAN AND EAST ASIA SUMMITS
Earlier today, Modi addressed both the India-Asean and the East Asia Summits in Vientiane. Modi also met Laotian Prime Minister Thongloun Sisoulith, South Korean President Park Geun-hye and State Counsellor and Foreign Minister of Myanmar Aung San Suu Kyi.
SOURCE: The India Today
Belt and Road Initiative proposed by China could stimulate sustainable Asian and global economic growth, a leading Bangladeshi legal economist told Xinhua. In an exclusive interview recently, MS Siddiqui, a professor at Dhaka's Daffodil International University, said the Belt and Road Initiative will connect countries that represent 30 percent of world gross domestic product (GDP), 63 percent of global population, and most of known energy reserves.
Promote infrastructure development
In particular, countries along the Belt and Road routes, especially those with underdeveloped infrastructure, low investment rates, and low per-capita incomes, could experience a boost in trade flows and benefit from infrastructure development, said Siddiqui. The Belt and Road Initiative refers to the Silk Road Economic Belt and 21st Century Maritime Silk Road, in a bid to revive the historic trade routes by boosting cooperation between China and other nations. The Silk Road Economic Belt revival project could involve more than 60 countries and regions. According to the economist, Chinese investment in large infrastructure projects constitutes the basis of the China-led initiative, which consists primarily of infrastructure that facilitates east-west trade over land, such as railways, roads and pipelines.
China has committed a total of about $100 billion to a trio of new infrastructure funds, allocating $40 billion to the Central Asia-focused Silk Road Fund, $50 billion to the new Asian Infrastructure Investment Bank (AIIB), and $10 billion to the BRICS-led New Development Bank, he mentioned. The vision document for the Belt and Road Initiative, goes well beyond just infrastructure, and envisions closer coordination of economic development policies, harmonization of technical standards for infrastructure, removal of investment and trade barriers, establishment of free trade areas, financial cooperation and "people to people bonds" involving cultural and academic exchanges. Personnel exchanges and cooperation, media cooperation, youth and female exchanges, and volunteer services, are also major components of the initiative, he said. "China would be able to better secure its energy and raw materials supply, which now predominantly gets shipped through the Strait of Malacca and the South China Sea as China is gradually becoming more influential economically and diplomatically. Eventually it will shift geo-strategically from a 'low-profile' international strategy and take on a far greater role in global affairs." With the Belt and Road Initiative, Siddiqui said China as "a new great power is trying to supplement the international economic order."
Opportunity for Bangladesh
"Bangladesh is in a strategic location between China, India and ASEAN countries and hence is well placed to be a trading and manufacturing hub. Bangladesh needs such increased connectivity with other economies in this region and China's Belt and Road Initiative will see the realization of this economic area." He added that Bangladesh should seek more Chinese support to help develop more mega infrastructures and develop other facilities related to finance and technology. "Following China's construction here of the multipurpose road-rail Padma Bridge, we are expecting China to help develop a deep sea port," the economist said. Bangladesh also needs Chinese support on regional and global issues and has invited China to be involved in regional issues with other relevant countries, he said. Siddiqui went on to explain that the current infrastructure and energy sector projects bottlenecking in Bangladesh transpired mainly from a shortage of long-term investments.
The Bangladeshi government's budgetary allocations and long-term financing from local and foreign enterprises including banks, non-banking financial institutions and insurance companies, were not sufficient for maintaining the required investment for these sectors, he said. "Bangladesh will have to spend between $7.4 billion and $10 billion a year until 2020 to bring its power grids, roads and water supplies up to the standard needed to serve its growing population. In total, the country will require between $74 billion and $100 billion between 2011 and 2020, or between 7.38 to 10.02 percent of its gross domestic product to improve infrastructure." BCIM (Bangladesh, China, India and Myanmar) economic corridors will increase trade, transport, tourism and investment for Bangladesh, due to its strategic location between India and China, he said. "The availability and affordability of workers and its geographical location are important aspects of Bangladesh developing into regional hub, yet it urgently needs a port, and related infrastructure to boost connectivity with other nations through ocean and land routes. The Belt and Road Initiatives will open up numerous opportunities for Bangladesh," said Siddiqui.
Connecting world efficiently
He said Chinese investment in large infrastructure projects constitutes the basis of the Belt and Road Initiative and emphasizes the commercial and open nature of the modern version of this network, he said. He further explained that the ambitious programs of infrastructure construction along the main Asia-Europe shipping route will also result in connecting the world more efficiently. "Firstly, China is gradually becoming more influential economically, diplomatically and geostrategically in regions close to Europe, therefore stronger investment and trade relations between China and countries in Africa, the Middle East and Central Asia are increasing China's stake in regional affairs, as friendly relations with Beijing increase," Siddiqui said. "Secondly, the Chinese government has an increased ability to influence routes trade between China and the European Union. And in the long term it is likely that transport and supply chain routes involving Asia and Africa will increasingly bypass those of Europe," the economist concluded.
SOURCE: The Global Textiles
Mozambique Cotton Manufacturers (MCM), yarn producer in partnership with three Portuguese companies, plans to invest about US$35 million to set up weaving, dyeing, stitching and other support facilities to expand the textile business and will export these textile goods to newer export markets on the African continent, according to a statement issued in Maputo. MCM, consisting of Mozambican companies Intelec Holdings and Portuguese companies Mundotêxtil, Mundifios and Crispim Abreu, has invested nearly US$20 million for the installation and operation of the units, and the amount now announced will serve mainly to add weaving, dyeing, sewing and other support equipment. The cotton used by MCM is provided by Plexus, a company present in the province of Cabo Delgado that aggregates the production of small farmers, Olam in Manica and Sofala, small operators in the centre of the country and across the country the João Ferreira dos Santos Group. The Director-General of MCM, André Vieira, said that the company is currently exporting 100% of production to Portugal and South Africa and is considering expansion to countries of the Southern African Development Community (SADC). Vieira also mentioned the US market, a country with which Mozambique has an agreement to facilitate exports.
SOURCE: Yarns&Fibers
Pointing out that investment in technology is at a nascent stage in Bangladesh garment industry, speakers at a seminar said that investment in technology is essential for achieving $50 billion export target by 2021. Investment in technology will also make the country's clothing industry more competitive, sustainable and profitable, they said. Garment exports fetched $28 billion for Bangladesh last year. The aim of the seminar 'Bastra Shilper Adhunikayan (Modernisation of Apparel Industry)' was to iron out a solution for earning the additional $22 billion from garment exports in next five years to achieve the target of $50 billion by 2021. Representatives of readymade garment industry, government, financial institutions, think tanks and IT officials discussed the various steps that need to be taken to realise the target. Globalisation is forcing textile manufacturers to use technology that improves productivity through process improvement, product innovation and new worker skills, while helping to serve the customer more efficiently, they said. Besides investment in technology, speakers stressed on attracting more investment to remove infrastructure bottlenecks.
The seminar was organised by ThreadSol, an innovative apparel software solutions provider, in partnership with Independent TV, a leading private television channel. ThreadSol co-founder and CEO Mansij Ganguli said his company has developed intelloCut to give manufacturers the edge to reduce their material wastage by using the effective concepts of fabric utilisation and streamlining cutting room processes, while at the same time boosting profits by up to 60 per cent.
SOURCE: Fibre2fashion
According to the General Administration, China imported about 163,700 tons of cotton yarn in July, down 24.10% year-on-year, but up 2.73% month-on-month; the import of cotton yarn totaled near 1.13 million tons in January-July period, down 19.51% from a year earlier. From September 2015 to July 2016, China’s import of cotton yarn totaled 1.86 million tons, down 11.92% year-on-year. China’s export of cotton yarn stood at about 35,900 tons, up 15.35% year-on-year and 18.54% month-on-month. In the first seven months of this year, the export of cotton yarn totaled 205,400 tons, down 5.15% year-on-year. From September 2015 to July 2016, China’s export of cotton yarn totaled 302,400 tons, down 9.94% year-on-year.
SOURCE: The Global Textiles
The prospect of a free trade agreement between South Korea and the Eurasian free trade bloc has increased after South Korea and Russia called for the swift conclusion of preparatory work for the agreement. A feasibility study on a potential South Korea-Eurasia FTA has been underway for the past nine months. However, following their meeting at the recent Eastern Economic Forum in Vladivostok, South Korean President Park Geun-hye and Russia leader Vladimir Putin agreed that the study should be concluded at the earliest opportunity so that formal negotiations could begin. In an earlier address to the South Korea-Russia Business Dialogue, Park said that a South Korea-Eurasia FTA would "open a new chapter for bilateral economic cooperation." The Eurasian Economic Union is a free trade area consisting of former member states of the Soviet Union, including Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. The bloc's external trade was valued at USD877bn in 2014, with total gross domestic product rated at USD2.2 trillion in the same year. It was recently confirmed that the Eurasian bloc would begin formal negotiations towards an FTA with China.
SOURCE: The Tax News
The Association of Southeast Asian Nations (ASEAN) and its partners pledged here Thursday to intensify their efforts in a cooperative manner for swift conclusion of the negotiations on the Regional Comprehensive Economic Partnership (RCEP). ASEAN groups Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Cambodia, Laos, Myanmar and Vietnam. After a closed door meeting, the 10 member states of ASEAN and China, Japan, South Korea, India, Australia and New Zealand said in a statement that further progress has been made in negotiating the modern, comprehensive, high quality, and mutually beneficial economic partnership. While acknowledging the complexities of the RCEP negotiations and the diversity of the participating countries, including differences in the level of development, they said that they are resolved to find appropriate ways to address the interests of each participating country so as to hammer out balanced, high-quality and mutually-beneficial outcomes. In the statement, they stressed the potential of an RCEP agreement to boost business confidence, benefit consumers, reinforce the RCEP region's contribution to global growth and the deepening of regional economic integration and equitable economic development for all participating countries.
RCEP is a proposed free trade agreement (FTA) between the 10 member states of ASEAN, and the six countries mentioned above that have existing FTAs with the regional bloc. The RCEP potentially includes more than 3 billion people or 45 percent of the world's population, and a combined GDP of about 21.3 trillion US dollars, accounting for about 40 percent of world trade. Once the agreement is nailed down, it will significantly optimize the production networks and value chains in the region and help Asia become a "world factory" in the world value chains.
SOURCE: The Global Times
Rwanda government to establish new clothing and shoe factories at the newly-demarcated Apparel Manufacturing Zone (AMZ) which currently occupies 5 hectares at the Kigali Special Economic Zone has signed agreements with two investors. The agreement was signed between the ministry and two investors Albert Supplies Ltd and Rwantan Ltd involved in the apparel manufacturing industry. The Government land will be given to investors engaged in apparel production, requiring them to pay for it over a period of 20 years as a way of encouraging them to invest in the country. François Kanimba, the minister for trade and industry said that they realized one of the major challenges for the investors is to acquire land in the economic zone where a hectare of land costs up to Rwf430 million. This would make them spend a lot of money in buying land and the related processes. So they decided to help them so that their investment will remain in securing machinery and other needed capital. The minister said that the move was one of the strategic interventions taken by the Government to develop and strengthen the capacity of production units engaged in textiles, and leather production and consequently limit consumption of imported used clothings.
Albert Nsengiyumva, the director of Albert Supplies Ltd, said that the factory will produce different types of high quality clothes and employ up to 2,000 people. The investment in the factory for the start is Rwf10 billion and by July next year, finished products will have been put on market. Bede Bedetse, a Burundian who manages Rwantan, a leather products manufacturing company, said they will produce different types of affordable leather products, including belts and footwear. Kanimba used the opportunity to also call on other investors to take advantage of the AMZ land opportunity while the land is still available. Currently, C&H Made in Rwanda and Utexrwa are one of the oldest textile factories in Rwanda.
SOURCE: Yarns&Fibers
