Indore: India-UK free trade agreement (FTA) will give a level playing field to Indian textile exporters and boost exports as heavy duties levied by the UK is a challenge for Indian exporters, said Rajeev Saxena, joint secretary, ministry of textiles on Wednesday. “Indian exporters are facing challenges specially from Europe because they have to pay heavy duties as compared to Bangladesh and Vietnam. These competing countries have an advantage over India. The India-UK FTA will give a level playing field to Indian exporters and will help exports grow significantly from India,” said Saxena on the sidelines of an event in Indore. The negotiations over the FTA between India and the UK are still ongoing with the trade segment hoping for a quick signing off on the agreement that will give an easy and greater access to players to each other’s markets. Saxena was in the city to participate in roadshow for Bharat Tex 2024, the first edition of the global textile expo to be held in New Delhi from February 26-29, 2024 and organised by a consortium of 11 textile export promotion councils and supported by the ministry of textiles with an aim to promote Indian textile industry and showcase the entire value chain of the sector to the world. “India will aim to achieve $100 billion exports in textiles by 2030 and the growth is expected to come from the sunrise and traditional segment. The traditional India textile sector like handloom and handicraft are very much admired outside India,” said Saxena. He said, the technical textile is a sunrise sector and a special scheme has been launched by the National Technical Textile Mission to support startups where grants of up to Rs 50 lakh is given to young entrepreneurs. “Technical textiles are high value items and have a lot of potential in India as it covers everything right from infra to health. Much research work is done and prototypes are developed but they are not commercialised. Young entrepreneurs can seek help from the government of India and can develop products and markets in the world,” said Saxena. He said, Madhya Pradesh is an important destination for textile and considering its importance, the government of India has sanctioned the PM Mitra Park in Dhar. “PM Mitra Park in Madhya Pradesh will scale up the economy and the entire value chain can be consolidated and logistics cost could be reduced. MP has strength in spinning, manufacturing sector, handlooms, handicraft and has good availability of skilled labourer in textile,” said Saxena.
Source: Economic Times
The government is expected to release a framework to assess the logistics cost in the country to get a realistic estimate tomorrow, an official has said. At present, the government is going by certain estimates, suggesting India's logistics cost stands at about 13-14 per cent of the country's GDP (gross domestic product). Sumita Dawra, Special Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT), had earlier stated that the government is coming out with its logistics cost framework. The framework would include elements of this cost and how to measure that. Acknowledging the necessity for targeted policy interventions, a report containing baseline aggregated logistics cost estimates; and a framework for long-term logistics cost calculation is now ready and has been reviewed by external experts from the World Bank, the official said. "This comprehensive report is scheduled for the launch on December 14," the official added. The objective of this endeavour extends beyond global benchmarking, aiming for policy-making, identifying challenges in the logistics ecosystem, devising targeted interventions, optimising costs, enhancing sector efficiency, and ultimately boosting India's global competitiveness. The official said that the report titled "Logistics Costs in India: Assessment and Long-Term Framework" will be released on December 14. This was one of the targets under the National Logistics Policy, released in September last year. Globally, there are different methodologies to calculate logistics costs at a macroeconomy level. Capturing origin-destination (O-D) pair-wise, commodity-wise, geography geography-wise data is critical for accurate estimations. However, the current available non-official estimates of logistics costs (8 to 13 per cent of the GDP) lack a conclusive and scientific calculation framework. To align India's logistics costs with global benchmarks by 2030, a need was felt to develop a scientific logistics cost calculation framework, which is inclusive and stands the test of various statistical and data-based methods and then collect the data (primary and secondary) for analysis. For this purpose, the secondary data sources published by the Ministry of Statistics and Programme Implementation (MoSPI), such as Supply Use Tables, and National Accounts Statistics, were used. The Logistics Division of the Commerce and Industry Ministry has been actively engaging with national and international stakeholders, including academia and experts, to arrive at a robust and comprehensive framework. In view of this, a Logistics Cost workshop was organised by DPIIT in collaboration with ADB on March 20 this year. The emphasis was on convening leading experts worldwide with expertise in relevant areas to learn from international best practices for estimating logistics costs and charting out the way ahead. As a way ahead, a task force was constituted. This task force is dedicated to developing a comprehensive framework for estimating logistics costs, including parameters/variables, data sources, approach, model for logistics cost calculation, and agencies to be onboarded. The task force convened multiple meetings from March to September 2023, during which they identified the essential components of logistics cost estimation, along with secondary data sources, including transportation cost; warehousing and storage cost; auxiliary support services cost; packaging cost, insurance cost; and other administrative / operations cost.
Logistics cost plays a key role in facilitating trade and enhancing the competitiveness of traders.
Source: Business Standard
The relationship between India and the US has moved in a positive direction ranging from trade to defence and the two nations have shown a sense of deep understating of each other's differences, the head of a top India-centric business and strategic group has said. Mukesh Aghi, CEO of the US-India Strategic and Partnership Forum (USISPF) said that there is more alignment between the two countries when it is looked at from the geopolitical QUAD perspective. I think in every aspect we (India-US relationship) have moved in a positive direction. You look at trade, which has gone up. You look at the military exercises, we're doing more and more of those. We also have signed a lot of agreements with the US, especially in defence and space. We have agreed to repair the ships in our ports," Aghi said on Wednesday. "When you look at it from the geopolitical QUAD perspective, there's more alignment between the two countries, Aghi told PTI in an interview. What I see is that 2023 is a year of highlights between two countries. More important is that both countries have settled down; there is a sense of maturity, there is a sense of deep understanding of each other's differences, and there's a way to manage the differences and also respect each other's position from that perspective. "I believe that the relationship there seems to keep on going up and up as time goes by, Aghi said, giving his sense of the India-US relationship in the year 2023. A key player in India's relationship with the US for more than a decade now, Aghi said both countries have agreed that the relationship is important. Yes, it is important to investigate what happened in Canada, what has been filed in the southern district in New York City. But that should not and would not derail the overall trajectory and momentum of the partnership between two countries, he said. India has said that it has set up a higher-level committee to investigate because that's not the policy to go assassinate (people in foreign land). I believe they will sort it out." "In the case of Canada, there was a lack of maturity on the part of (Prime Minister Justin) Trudeau to go to Parliament and make that announcement or make allegations. I think the Americans have done a better job of trying to share the data, find a consensus and take it forward. So, I believe that those two issues will not have an impact on the relationship, both in the short and the long term, Aghi said. He was responding to a question on the allegations by Trudeau that India was involved in the killing of a Sikh separatist and the American allegations that Indians were involved in a plot to kill a US national, also a Sikh separatist, in America. US President Joe Biden, he said, has put a lot of solid effort, energy, and strong policy behind the QUAD effort. I strongly believe that you have a president who has a clear understanding of how to take this relationship forward. India becomes a pivotal part of that strategy. The Quad bloc groups India, Australia, Japan and the US, which oversees overall cooperation in the Indo-Pacific region. The recently concluded assembly elections, he noted, send a message that India is a vibrant democracy and also that Prime Minister Narendra Modi will come back again in the Lok Sabha elections next year. (the elections send a message that) in India, you have a leader...Prime Minister Modi, seems to win the hearts of the vote bank and they're voting for him. It sends a strong message and also gives them a strong position when it deals with geopolitical issues and also with global leaders that you have a firmly entrenched leader who's well-liked." "If you look at the latest poll rating shows, 77 per cent approval highest of any global leader itself. The results of the state election send a very strong message that the potential that this prime minister will come back again in the looks of election next year, he said. The US companies, he said, are investing more and more in India. They are exploring how to de-risk from China. They're exploring how to gather the growing market in India and capture the market share itself. Both from a de-risking perspective and market opportunity, US companies are spending more and more in India to be able to position themselves in the medium and long term, he said. Aghi said he would like to have a stable government which has an agenda to become more transparent in the policymaking, basically approving the investments, and approving the trade going up. Our wish is that the collaboration partnership continues to grow the trajectory, which we have seen in 2023 and we wish all the best for 2024, Aghi said.
Source: Business Standard
The rupee rebounded by 13 paise to 83.27 against the US dollar in early trade on Thursday after the greenback weakened in the overseas markets as the US Federal Reserve signalled a cut in interest rates next year. The local unit opened strong at 83.30 at the interbank foreign exchange market. The currency rose further to hit a high of 83.27 in morning deals, reflecting gains of 13 paise over the previous close. The rupee had closed at its all-time low level of 83.40 on Wednesday after retail inflation rose to a three-month high of 5.55 per cent in November. The US dollar index, which measures the greenback's strength against a basket of six currencies, eased by 0.33 per cent to 102.53. The US Federal Reserve kept its key interest rate unchanged on Wednesday for a third time in a row. The officials also signalled that they expect to make three quarter-point cuts to their benchmark rate next year. "The crash in the US 10-year yield to 4 per cent will trigger large capital flows to India. The main beneficiaries will be the large caps, particularly the fairly valued large caps in banking. IT too is likely to attract buying," V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said. Brent crude futures, the global oil benchmark, rose 0.28 per cent to USD 74.47 per barrel. In the domestic equity market, the 30-share BSE Sensex jumped 778.16 points or 1.12 per cent to 70,362.76 points. The broader NSE Nifty rallied 214.75 points or 1.03 per cent to 21,141.10 points. Foreign Institutional Investors (FIIs) were net buyers in the capital market on Wednesday as they bought shares worth Rs 4,710.86 crore, according to exchange data.
Source: Business Standard
Premier Indian management consulting firm Wazir Advisors has announced to becoming a corporate member of the International Textile Manufacturers Federation (ITMF), a major step towards promoting global collaboration and industry growth. Wazir Advisors is a well-established and well-connected member of the global textile and apparel sector, offering the ITMF community decades of experience and knowledge.“We are thrilled to join ITMF as a corporate member and expand our network among distinguished groups of industry leaders and experts. Wazir Advisors is committed to share valuable insights and thought leadership contributing to the goals of ITMF. We look forward to actively participate with ITMF to enhance the future of textile and apparel industry” said Varun Vaid, Business Director, Wazir Advisors. ITMF and Wazir Advisors envision a resilient, inventive, and sustainable textile and clothing sector. It is anticipated that the cooperation will promote growth and business excellence in the textile and apparel industry globally by facilitating information exchange and international alliances.
Source: Apparel Resource
Foreign investors should explore business opportunities in India as it provides a huge domestic market and investment-friendly environment, Commerce and Industry Minister Piyush Goyal said on Wednesday. The availability of skilled manpower, equal treatment to all investors, and the aspirational young population are also some of the key reasons for investing in India, the minister added. “Investment opportunities are growing manifold in India and investment gives good returns. I also invite you to explore northeastern states and “Investment opportunities are growing manifold in India and investment gives good returns. I also invite you to explore northeastern states and Jammu Kashmir,” he said while addressing an investment conference here. Exports are also growing despite global challenges, he noted.
Source: Financial Express
Synopsis The GIFT City project began in 2011 outside Ahmedabad under Modi's leadership, aiming to be a financial center rivaling Mumbai. Although 400 entities, mostly banks, operate there, employing 20,000, it struggles to become a vibrant financial hub. Modi aims to revitalise it as a modern financial and technology center. New rules, expected in April, will allow Indian firms not listed on Indian exchanges to directly list their equity at GIFT City, according to K Rajaraman, IFSCA chairperson. Indian Prime Minister Narendra Modi is looking to revive a decade-old project to build a new financial hub in his home state of Gujarat, with new breaks aimed at drawing in foreign brokers and companies. The GIFT City project was launched on the outskirts of Ahmedabad in 2011 when Modi was chief minister of Gujarat, outmaneuvering Mumbai as the choice of venue for a new tax-neutral financial centre for banks, exchanges and investment funds. While more than 400 entities, mostly banks, have since then set up shop in the modern office blocks across the small city, employing about 20,000, the hub has struggled to develop into a thriving financial ecosystem with robust market turnover. Modi last weekend addressed an investment conference in the city to breathe life back into the site, calling for it to become a "new age financial services and technology nerve center". New rules that will likely take effect in April next year will allow direct equity listing of Indian firms at GIFT City - those that aren't already listed at exchanges in India - K Rajaraman, chairperson, International Financial Services Regulatory Authority (IFSCA), which regulates financial services in GIFT City, told Reuters. Meanwhile, exchanges are in talks with half a dozen technology companies to kick-off direct listings at GIFT, four exchange and regulatory officials said. "This will offer Indian Companies the option to raise funds in dollars without listing on more expensive foreign bourses," said V. Balasubramanian, chief of NSE's International Exchange, based out of GIFT City. Foreign brokers will also be allowed to trade on GIFT City exchanges without having a physical presence there. So far, the only equity product actively traded in the jurisdiction is the GIFT Nifty, which began trading in July. TAX BREAKS Banks currently account for the largest businesses in GIFT City, which use branches to book foreign borrowings of Indian companies. Such borrowings attract a withholding tax of 20% in India but are given a 10-year tax relief if routed via GIFT City branches. Total banking assets have grown to $52 billion, more than 90% of which are loans, regulatory data shows. Close to 80 funds with commitments of $24 billion have also set up in GIFT City, including Indian funds investing in overseas assets and offshore hedge funds investing in India, according to data from the regulatory authority. A tax exemption on business income and tax-free transfer of overseas investments, along with more liberal limits for Indian funds investing in overseas assets, have drawn interest. "Why go to Mauritius when you have all the advantages of an offshore jurisdiction at GIFT and the benefit of being in close proximity to India?" said Richard Prattle, chief executive of True Beacon, a hedge fund based in GIFT City. Despite some of those breaks, the city is still struggling to create the lifestyle buzz that draws money and professionals into financial hubs like Singapore or Dubai. "It feels like the early days of Canary Wharf," said Mathias B. Pontoppidan, who works at Denmark-based ESG advisory firm Pontoka and was visiting to explore business opportunities. New glass fronted buildings sit on barren parcels of land, public transport is limited and there are no restaurants and bars in a state that prohibits alcohol for Indian citizens.
Source: Economic Times
Synopsis Union Commerce and Industry Minister Piyush Goyal held a meeting with the European Free Trade Association (EFTA) delegation led by Swiss State Secretary for Economic Affairs, Helene Budliger Artieda, and Norwegian Minister of Trade and Industry, Jan Christian Vestre, on Wednesday. Union Commerce and Industry Minister Piyush Goyal held a meeting with the European Free Trade Association (EFTA) delegation led by Swiss State Secretary for Economic Affairs, Helene Budliger Artieda, and Norwegian Minister of Trade and Industry, Jan Christian Vestre, on Wednesday. "Held a meeting with the European Free Trade Association (EFTA) delegation, led by Ms. Helene Budliger Artieda, Swiss State Secretary for Economic Affairs and Mr. Jan Christian Vestre, Norwegian Minister of Trade and Industry," the union minister said in a post on 'X'. During the meeting, Goyal discussed the progress of Free Trade Agreement (FTA) negotiations with EFTA nations and explored avenues to further Recently, Piyush Goyal concluded a "highly successful" meeting with a delegation from the EFTA, led by the Swiss State Secretary for Economic Affairs, Helene Budliger Artieda. The meeting took place in London from July 11 to July 12. Helene Budliger Artieda was also accompanied by industry stakeholders from the pharmaceutical, machinery and electronics industries of the EFTA states. The deliberations between Minister Piyush Goyal and State Secretary Helene Budliger Artieda "were fruitful and detailed discussions on crucial issues, with the shared goal of swiftly concluding" the Trade and Economic Partnership Agreement (TEPA) negotiations, the commerce ministry said in a release. The primary objective of these negotiations is to establish a "fair, mutually beneficial, and comprehensive" trade deal between India and EFTA. Over the past few months, India and EFTA have significantly intensified their engagement, highlighting the commitment of both parties to achieving an early conclusion to the TEPA negotiations. The commerce ministry's release added that the meeting in London further bolstered this commitment, with both sides demonstrating a strong willingness to progress towards a final agreement. Minister Piyush Goyal expressed his satisfaction with the progress made during the meeting, highlighting the constructive and collaborative nature of the discussions. He emphasised the importance of a comprehensive trade deal that addresses the needs and aspirations of both India and EFTA.
Source: Economic Times
NAGPUR: The Maharashtra government on Wednesday announced to set up a study group dedicated to addressing issues within the power loom industry in the state. The group's primary objective is to propose modifications to the recently launched textile policy, specifically tailored to benefit the power loom sector.Textile minister Chandrakant Patil unveiled this initiative in response to an attention motion presented by Samajwadi Party MLA Rais Shaikh from Bhiwandi (East). Patil affirmed that the study group would include Shaikh and emphasized its commitment to understanding and addressing the concerns of power loom operators. Acknowledging the substantial employment contribution of power looms in Maharashtra, particularly in centers like Ichalkaranji, Malegaon, and Bhiwandi, Patil emphasized the need for enhanced support for the industry. He highlighted the collaborative process involved in drafting the textile policy, incorporating input from various stakeholders.However, in response to Shaikh's concerns that power loom operators were not adequately considered, the government opted to establish a study group. Patil underlined the involvement of key stakeholders and elected representatives from power loom hubs in this initiative. Patil further outlined the study group's mandate, indicating that resources would be allocated for visits to power loom centers, allowing the group to compile a comprehensive proposal. In addition, he announced the distribution of 24 lakh sarees exclusively produced in Maharashtra's power looms to women below the poverty line. Patil addressed Shaikh's concerns about power subsidies, assuring that the issue would be raised with the Energy Minister and Finance Minister. In response, Shaikh expressed gratitude for the government's recognition of power looms in the textile policy and the establishment of the study group. He welcomed the inclusion of power loom cloth products in the saree distribution scheme and urged for reservations akin to those for handlooms. Additionally, Shaikh highlighted Patil's assurance regarding pending subsidy-related files for power loom operators. Patil's written response provided a comprehensive overview of the power loom landscape in Maharashtra, citing approximately 12,70,000 looms in the state. He emphasized the sector's significance in terms of employment, revenue generation, and its role as the second-largest employment generator after agriculture in the country. Patil also referenced the Integrated and Sustainable Textile Policy 2023-28, aiming to attract investment and create employment opportunities over the next five years, with specific incentives outlined for the handloom sector.
Source: Times of India
The European Free Trade Association is a trade organisation and free trade area consisting of four European states Iceland, Liechtenstein, Norway and Switzerland of Trade and Industry Jan Christian Vestre has said his India visit aims to enhance collaboration between European free trade partners and India, improve framework conditions for job creation, value creation, investments. "We are here to enhance the collaboration between the European free trade partners, including Norway, which I represent, and India, to see how we can improve the framework conditions for job creation, value creation, investments, how we can work together in terms of accelerating the green and digital transition, how we can collaborate on research and development, innovation, technology, prosperity... and FTA in India, we have been negotiating on a potential free trade agreement for the last 15 years," the Norway minister said. We have made quite some efforts this year. This is my third time in India this year and I'm very happy to see that we are also progressing now, meaning we're moving forward. We have solved a lot of issues." He further said that there are some remaining issues, "but I'm still optimistic that there might be opportunities for us to enter into such an agreement and such a partnership, which will be very beneficial for both India and for the countries we are representing." European Free Trade Association member countries and India are making "progress" on an agreement on free trade, with officials saying that the two sides have "never been closer" to a pact. ws with ANI on Wednesday, the Norwegian Trade Minister Vestre and Swiss State Secretary for Economic Affairs Helene Budliger Artieda, commended growing ties between India and EFTA member countries. However, they refused to comment on the deadline for the finalisation of talks on free trade. The European Free Trade Association is a trade organisation and free trade area consisting of four European states- Iceland, Liechtenstein, Norway and Switzerland. The two officials were on a visit to India to hold a discussion with the Indian government on a trade pact between New Delhi and the four nations. EFTA and India began talking about a Free Trade Agreement 15 years ago, and despite 20 rounds of negotiations, they have not yet been closed. ster Vestre informed that he is happy with the progress on the free trade agreement between India and four European countries. Though both ministers refrained from mentioning any deadline for the pact, they said both sides are positive and they are hoping that the agreement will be finalised "soon." This is the third visit of Vestre to India in 2023 and the seventh for Artieda.
Source: Business Standard
Synopsis Egypt is located at the crossroads of Africa, Asia, and Europe. This gives it a strategic location for trade and investment. The Suez Canal, which is one of the world's busiest shipping routes, is located in Egypt. This provides foreign investors with access to a large market of consumers and businesses in the MENA region, Europe, and Asia, let alone its central time zone which makes it accessible to all countries, said Hossam Heiba, CEO, GAFI. India and Egypt strategic partnership has been elevated to a new level with PM Narendra Modi and President Abdel Fattah el-Sisi meeting thrice this year. Besides strengthening defence partnership Egypt has offered India special support for enhancing investments across sectors. In a freewheeling interview with ET’s Dipanjan Roy Chaudhury, Hossam Heiba, CEO, General Authority For Investment and Free Zones (GAFI) Egypt, said Cairo is inviting Indian investors from big.
Source: Economic Times
The consumer price index for all urban consumers (CPI-U) increased by 0.1 per cent in November on a seasonally-adjusted basis, after being unchanged in October, the US Bureau of Labour Statistics reported. Over the last 12 months, the all items index increased by 3.1 per cent before seasonal adjustment. That index for apparel fell by 1.3 per cent in November, after rising by 0.1 per cent the previous month, a BLS release said. That index for household furnishings and operations declined by 0.4 per cent MoM during November. The urban energy index fell by 2.3 per cent month on month (MoM). There was a 2.5-per cent fall in October. It fell by 5.4 per cent over the past 12 months ending November. The urban index for all items less food and energy rose by 0.3 per cent in November, after rising by 0.2 per cent in October. The all items index rose by 3.1 per cent for the 12 months ending November, a smaller increase than the 3.2-per cent increase for the 12 months ending October. The all items less food and energy index in urban areas rose by 4 per cent over the last 12 months, as it did for the 12 months ending October.
Source: Fibre2Fashion
