Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution, and Textiles, Sh. Piyush Goyal released the “Logistics Ease Across Different State (LEADS) 2023” report in New Delhi on 16th December 2023, in the presence of Smt. Sumita Dawra, Special Secretary (Logistics), DPIIT, Mr. Sajiv Puri, President-Designate of Confederation of Indian Industry (CII) & MD ITC, and Mr. Mihir Shah, Partner, Ernst & Young. Speaking on the occasion, Sh. Piyush Goyal said that LEADS is giving insights to States and UTs for further revolutionary reform in logistics sector, taking us towards our vision of Viksit Bharat. The report serves as a guide for stakeholders in the Logistics Sector by providing strategic insights, he added. He hoped that it will play a pivotal role in instilling healthy competition among States/UTs to enhance logistics performance. It also underscores notable initiatives like planning infrastructure on PM GatiShakti, ‘industry’ status for logistics, multimodal connectivity, digital initiatives in logistics, City Logistics Plans, Multimodal Logistics Parks, etc, he said, adding that States/UTs need to emphasise skill development, capacity building, and the formalization of logistics policies, implementation of monitoring frameworks, and the promotion of green logistics. He said that Logistics sector will be a cornerstone in our endeavour to take India to a 10 fold growth from a USD 3.5 trillion to USD 35 trillion by 2047. Sh. Rajesh Kumar Singh, Secretary. DPIIT stated that leveraging digitization will lead to significant reduction in logistics cost. In the last nine years, significant interventions in critical areas like logistics received the much-needed focus, thereby leading to the growth in the logistics sector. Secretary highlighted reforms in Ease of Doing Business, reduction in compliance burden and ongoing work on reducing cost of regulation. Senior officials from the Central and State/UT governments and representatives from the industry were present at the launch to share their insights and engage in constructive dialogues during various sessions in the day. LEADS was conceived on the lines of Logistics Performance Index of World Bank in 2018 and has evolved over time. While the LPI relies entirely on perception-based surveys, LEADS incorporates both perception as well as objectivity thereby enhancing the robustness and comprehensiveness of this exercise. The 5th edition of the LEADS annual exercise - LEADS 2023 report, provides insights into improvement of logistics performance at State/UT level. It highlights an enhanced overall stakeholder perception and impact of various reforms, across States and UTs. This report, signalling a positive shift in States’ performance across the key pillars – Logistics Infrastructure, Logistics Services and Operating and Regulatory Environment, empowers the State/UT Governments by providing region specific insights for informed decision making and comprehensive growth. This report is based on a pan-India primary survey, conducted between May and July 2023, covering over 7,300 responses across 36 States/UTs. Additionally, over 750 stakeholder consultations, facilitated by National, Regional, and State Associations, significantly contributed to this comprehensive evaluation. Performance Highlights from LEADS 2023: Coastal Group • Achievers: Andhra Pradesh, Gujarat, Karnataka, Tamil Nadu • Fast Movers: Kerala, Maharashtra • Aspirers: Goa, Odisha, West Bengal Landlocked Group • Achievers: Haryana, Punjab, Telangana, Uttar Pradesh • Fast Movers: Madhya Pradesh, Rajasthan, Uttarakhand • Aspirers: Bihar, Chhattisgarh, Himachal Pradesh, Jharkhand North-East Group • Achievers: Assam, Sikkim, Tripura • Fast Movers: Arunachal Pradesh, Nagaland • Aspirers: Manipur, Meghalaya, Mizoram Union Territories • Achievers: Chandigarh, Delhi • Fast Movers: Andaman & Nicobar, Lakshadweep, Puducherry • Aspirers: Daman & Diu/ Dadra & Nagar Haveli, Jammu & Kashmir, Ladakh Ms. Sumita Dawra, Special Secretary (Logistics), DPIIT highlighted that the 5th edition of the LEADS report launched today has been developed in a collaborative and consultative manner. It has brought objectivity in assessment of infrastructure development and processrelated reforms. 23 States/UTs have also notified their State Logistics Polices to align with the National Logistics Policy. Further, 16 States/UTs have given industry status to logistics. Digital reform such as PM GatiShakti, Logistics Data Bank, Unified Logistics Interface Platform (ULIP), GST are propelling India’s improved ranking at global level. During the event two sessions were held: (i) Leveraging Data and technologies to Ease Logistics; (ii) Green and sustainable Logistics. Efficient domestic logistics are pivotal for both national and international trade competitiveness. The integration of objective and perception-based data in LEADS 2023 ensures a holistic framework for evaluating logistics performance. The latest edition builds strengthening objectivity and precision in assessment by considering a wider spectrum of state initiatives, including the adoption of PM GatiShakti National Master Plan for project planning, aligning State Logistics Policies with National Logistics Policy, besides developing City Logistics plans, etc.
Source: Business Standard
The Ministry of Micro, Small and Medium Enterprises is implementing ‘International Cooperation Scheme’ under which, financial assistance is provided to Micro, Small and Medium Enterprises (MSMEs) to promote export from them. The scheme covers all the districts of the country. The brief details of the scheme including financial assistance to MSMEs are attached at Annexure-I.
Apart from above, other initiatives of Government support to MSMEs for promotion of export from them- The Government has taken measures to promote exports from the districts under the District Export Hub Initiative. It includes identification of products and services with export potential in all the districts of the country including Gujarat, in consultation with all stakeholders including the States/UTs. An institutional mechanism has been set up in all States/UTs by forming the State Export Promotion Committee (SEPC) and District Export Promotion Committee (DEPC) at the District level. Under the initiative, District Export Action Plans detailing the existing bottlenecks in the supply chain and identifying possible interventions to mitigate the existing gaps are being prepared for all the districts. These outline the support required by the local exporters and manufacturers in producing/ manufacturing identified products in adequate quantity & with requisite quality and branding, for reaching potential buyers outside India.
To encourage exports from the districts under "Districts as Export Hubs", DGFT through Regional Authorities has been engaging with States & Districts to conduct export promotion outreach events. This includes handholding sessions with exporters and export related awareness sessions. ii. The new definition of MSMEs w.e.f. 01.07.2020, provisions that the export turnover of Udyam Registered enterprises shall not be counted in the turnover of enterprises for deciding their category as micro or small or medium. This helps the MSMEs to export more without crossing their limit of turnover in the present category as micro or small or medium. iii. 59 Export Facilitation Centres set up by the Ministry across the country in its field offices are providing hand holding support to MSMEs for export promotion.
iv. Dak Ghar Niryat Kendra, serves as a one-stop destination for exporters, providing comprehensive assistance and streamlined processes for export-related documentation, logistics, customs procedures and packing.
v. The One District One Product (ODOP) initiative, aims to promote at least one Product from each District (One District – One Product) of the country for enabling holistic socio-economic growth across all regions. The ODOP Initiative has identified more than 1100 products encompassing various sectors such as textiles, agriculture, food processing, handicrafts, and more, from all 761 districts of the country. Under the International Cooperation Scheme, 10058 MSMEs in 2022-23 and 4032 MSMEs during 2023-24 up to 13.12.2023 have provided financial incentives.
The total number of MSMEs benefitted under International Cooperation Scheme in Gujarat are as follows:
Scale of Assistance
Registration-cum-Membership Certificate (RCMC) charges/fee paid by the first-time exporter to related Export Promotion Councils. 75 percent of the cost paid subject to a maximum of Rs. 20,000/- or actual, whichever is lower subject to quarterly reporting by EPCs as per prescribed format. Export Insurance Premium paid to Export Credit Guarantee Corporation (ECGC) under the ECGC’s Small Exporter Policy. Maximum reimbursement in a financial year of Rs. 10,000/- or actual, whichever is lower subject to quarterly reporting by ECGC as per prescribed format.
Fee paid on Testing & Quality Certification acquired by MSEs to Export Products
75 percent of the testing and quality certification with a ceiling of Rs. 1.00 Lakh or actual, whichever is lower, subject to following conditions: Reimbursement allowed for a maximum of 3 certificates per financial year with a ceiling of Rs. 1.00 Lakh per MSE unit. Certificate, for which reimbursement claim is requested, should be attained within the same financial year.
The total number of MSMEs benefitted under International Cooperation Scheme in Gujarat are as follows:
|
Financial Year |
Amount released (in Rs) |
No. of MSMEs benefited |
|
2022-23 |
1525857 |
1822 |
|
2023-24 (upto 13.12.2023) |
1957533 |
300 |
|
Interventions |
Scale of Assistance |
|
Registration-cum-Membership Certificate (RCMC) charges/fee paid by the first-time exporter to related Export Promotion Councils. |
75 percent of the cost paid subject to a maximum of Rs. 20,000/- or actual, whichever is lower subject to quarterly reporting by EPCs as per prescribed format. |
|
Export Insurance Premium paid to Export Credit Guarantee Corporation (ECGC) under the ECGC’s Small Exporter Policy |
Maximum reimbursement in a financial year of Rs. 10,000/- or actual, whichever is lower subject to quarterly reporting by ECGC as per prescribed format. |
|
Fee paid on Testing & Quality Certification acquired by MSEs to Export Products
|
75 percent of the testing and quality certification with a ceiling of Rs. 1.00 Lakh or actual, whichever is lower, subject to following conditions:
|
This information was given by Union Minister of State for Micro, Small and Medium Enterprises Shri Bhanu Pratap Singh Verma in a written reply in the Rajya Sabha today.
Source: PIB
Synopsis The Ministry of Commerce and Industry announced that the fourteenth round of Free Trade Agreement negotiations between India and the UK will take place in January 2024. The negotiations, which focused on complex issues like goods, services, and investment, will continue. The fourteenth round of Free Trade Agreement negotiations between India and the UK will take place in January 2024, the Ministry of Commerce and Industry informed on Monday. The government also provided an update on the previous round, that is the thirteenth round, and said that both nations held negotiations in person and virtually from September 15 to December 15, 2023. The discussions were held in London and Delhi, the government further informed. TTAPAP T TO WO WAATCH TCH "As with round 12, these negotiations focussed on complex issues including goods, services, and investment," the government said in a release. Further, the government has reiterated that the UK and India will continue to negotiate towards a comprehensive and ambitious FTA. India and the UK are committed to developing a comprehensive and mutually beneficial trade relationship, as demonstrated by the ongoing discussions. India and the United Kingdom's bilateral trade grew from $17.5 billion in 2021–2022 to $20.36 billion in 2022–2023. The India-UK Free Trade Agreement has encountered multiple obstacles during the negotiation process, resulting in the ambitious agreement being delayed by more than a year from its original deadline.
Source: Economic Times
India's economy is projected to grow at 6.3 per cent in the current fiscal year and the next, the International Monetary Fund (IMF) said late Monday, supported by macroeconomic and financial stability. The country's digital public infrastructure and a strong government infrastructure program will continue to sustain growth, the IMF said in its Article IV consultation report, which reviews a country's current and medium-term economic outlook. "India has potential for even higher growth, with greater contributions from labour and human capital, if comprehensive reforms are implemented," the IMF said. The IMF's growth projection for the current financial year, ending March 31, 2024, is lower than the 7 per cent forecast by the Reserve Bank of India (RBI). "Headline inflation is expected to gradually decline to the target although it remains volatile due to food price shocks," the IMF said. Volatile food prices pushed up retail inflation to 5.55 per cent in November from 4.87 per cent the previous month. While this was within the RBI's tolerance band of 2 per cent-6 per cent, it remains above the target of 4 per cent.
Source: Business Standard
Economic reforms in digitization and infrastructure propel India's robust growth, making it one of the fastest-growing major economies. While facing global challenges, the nation's focus on infrastructure investment and logistical development lays a strong foundation, says International India's robust economic growth, propelled by key reforms in digitisation and infrastructure, positions it as a leading global contributor, accounting for over 16 per cent of the world's growth, according to the International Monetary Fund (IMF). In an interview with PTI, Nada Choueiri, the Mission of India at IMF, highlighted India's exceptional performance among its peer countries, citing it as one of the fastest-growing large emerging markets. The recently released annual Article IV consultation with India by the IMF affirms the nation's trajectory to become one of the fastest-growing major economies globally. Despite this positive outlook, India faces global challenges, including a slowdown in worldwide growth in an increasingly fragmented world, cautioned Choueiri. The Indian government's emphasis on infrastructure investment and logistical development sets a solid foundation for sustained growth, according to Choueiri. With a large, young, and growing population, India possesses significant growth potential, which, if harnessed through structural reforms, could result in even stronger growth rates. Key among the structural reforms is the flagship initiative of digitalisation, a process that has been evolving over several years, positioning India for increased productivity and future growth. The IMF's annual report recommends focusing on replenishing fiscal buffers, ensuring price stability, maintaining financial stability, and accelerating inclusive growth through comprehensive structural reforms while preserving debt sustainability. India's economy has rebounded strongly from the pandemic, becoming a key driver of global growth. The report notes that headline inflation, though volatile, has moderated on average. Employment has surpassed pre-pandemic levels, with the informal sector dominating, while formalization progresses. The financial sector remains resilient, and although the budget deficit has eased, public debt remains elevated. The report anticipates general elections in April 2024, acknowledging that macroeconomic policies have partially aligned with past IMF staff advice. The potential for higher growth in India lies in implementing comprehensive reforms, including the utilization of additional labor and human capital. Observing a GDP growth of 7.2 percent in fiscal 2022/23, the IMF attributes growth to robust consumption, strong investment, and high levels of public capital expenditure. Despite a slowdown in services export growth in early FY2023/24 due to a global demand slump, GDP growth remains strong at 7.8 percent in FY2023/24Q1, driven by robust domestic demand. Political stability is crucial for investment and growth, notes Choueiri, emphasizing the importance of a transparent and predictable business environment. The government's efforts to improve the business climate, such as the single national window, are acknowledged, though Choueiri suggests further simplification is needed. The IMF advocates for labor reform, emphasizing the need to fully utilize India's abundant labor force. This involves concerted efforts in education, skilling, and increasing female labor force participation. Despite India's positive trajectory, Choueiri points out external challenges, including risks from fragmentation and medium-term risks from climate change. Recognizing India's resilience, she emphasizes the importance of addressing key policies to fully harness the nation's potential.
Source: Economic Times
An annual General House meeting of the Textile Manufacturers Association was held here yesterday. During the meeting, yarn and textile manufacturers discussed global and domestic challenges faced by local industrialists. They sought government assistance in shape of soft loans and technical guidance. Textile industrialists aired their opinion regarding changing laws keeping in view technological advancements. They sought swift adaptation of changes to make the industry compatible for global challenges. The Textile Manufacturers Association is an 87-year-old organisation with over 80 manufacturers as its members. The city has units of all the three wings of textiles that include spinning, weaving, dyeing and processing. Besides, there are a couple of yarn-manufacturing units as well in the holy city.Geographically, Amritsar is situated close to Himachal Pradesh and Jammu and Kashmir from where sheep wool is procured. “The need of the hour is to upgrade wool quality,” said industrialists. The holy city also has the Punjab Institute of Textile Technology to provide trained manpower for all type of textile units.The industrialists said, “Educational experts must ensure that courses offered by the institute are upgraded from time to time in sync with global technological advancements.” “It’s taken all this time and this amount of depreciation and declining interest rates to get the economy going again and to get some inflation as opposed to disinflation back in the economy. “So it’s hard for me to believe that the BoJ would do something abrupt.” Economists have forecast the bank to make an announcement in April, Bloomberg reported. Oil prices edged higher, a day after piling on more than one percent in reaction to a number of firms saying they would avoid the Red Sea following attacks on several cargo ships by Yemen’s Iran-backed Huthi rebels. The rebels said Monday they had fired on two “Israeli-linked” vessels in a bid to pressure the country over its war in the Gaza Strip. Five of the world’s six largest shipping companies have announced they will not send ships through the Red Sea due to the threats.
Source: Tribune India
HONG KONG: Asian markets were mixed Tuesday after Federal Reserve officials looked to dampen expectations for a series of interest rate cuts next year, while the yen edged up ahead of a closely watched Bank of Japan policy decision later in the day. Wall Street extended its seemingly relentless advance, fuelled by the US central bank’s dovish pivot last week, but investors in Asia were a little more reticent as they assess the economic outlook for the region. Since the Fed released its “dot plot” forecast for rates, officials have in recent days lined up to temper market predictions that it will slash borrowing costs by up to 1.5 percentage points through 2024. In a Wall Street Journal interview published Monday, San Francisco Fed chief Mary Daly said she thought policy was in a “good place” to bring inflation down to the bank’s two percent target. Her Cleveland counterpart Loretta Mester told the Financial Times in another interview published Monday that traders had run ahead of themselves. “They jumped to the end part (of the Fed’s post-meeting statement), which is ‘We’re going to normalise quickly’, and I don’t see that,” she said. And Chicago chief Austan Goolsbee said he was confused by the strong market reaction. The comments come after New York Fed chief John Williams told CNBC that “we aren’t really talking about rate cuts”, adding it was “just premature to be even thinking about” a March reduction, which some experts have suggested.
Asia shares slip into BOJ meeting, US inflation test
Stephen Innes at SPI Asset Management said: “It is essential to recognise that the Fed will likely demand sustained improvement in inflation metrics over several months before implementing any rate cuts. “This consideration supports the notion that the actual pivot in rates might not occur as rapidly as currently anticipated by the market.” In early trade, Hong Kong, Shanghai, Singapore, Seoul and Taipei fell. But stocks were up in Tokyo, where Nippon Steel lost more than four percent after saying Monday it would buy US Steel for $14.1 billion, creating the world’s second-largest steel company. Most observers expect officials to stand pat on interest rates, though speculation has been swirling that it is close to shifting away from its long-running, ultra-loose monetary policy as inflation picks up. The bank will most likely “take a slow course”, Belita Ong, of Dalton Investments, told Bloomberg News.
Source: Brecorder
Vietnam’s textile and garment products have been exported to 104 countries and territories this year – a record number, said Chairman of the Vietnam Textile and Apparel Association (VITAS) Vu Duc Giang. As of the end of September, the organisation reports that with a turnover of more than US $ 11 billion, the US continued to be the largest importer of Vietnamese textile and apparel goods. With around US $ 3 billion, Japan, the EU, the Republic of Korea, US $ 2.43 billion, Canada, about US $ 850 million and China, US $ 830 million, came next. Despite the substantial changes that businesses have seen, they have tried to diversify their export offerings by offering 36 different things. With over US $ 4.38 billion in revenue during that time, jackets continued to be the leading export earner, followed by trousers with over US $ 3.85 billion and shirts with US $ 1.87 billion. As per VITAS, 2023 has presented noteworthy obstacles, including the COVID-19 pandemic’s residual effects on a worldwide scale and an abundance of inventory as a result of lower demand. Due to these challenges, the industry’s total export value, which exceeded US $ 44 billion last year, is predicted to drop by more than 9% this year to beyond US $ 40 billion. Even if exports are down, this year’s difficulties notwithstanding, the turnover is regarded as a breakthrough and shows how hard the business community has worked. Giang pointed out that the Vietnamese textile and apparel industry has achieved strides in terms of export markets and goods.
Source: Apparel Resource
Exports to the United States, Bangladesh's largest export market as a single country, fell by more than 9 percent in the five months of the current fiscal year (July-November) compared to the same period of the previous fiscal year. About 20 percent of the total export earnings come from the country. According to the Export Promotion Bureau (EPB), Bangladeshi products worth $3.64 billion were exported to the United States in the first five months of the current fiscal year. In the same period of last fiscal year, Bangladesh exported more than $4 billion worth of goods to US. That is, compared to the same period of the last fiscal year, exports have decreased by $360 million. Earlier, Bangladesh's exports to the United States during the same period of the fiscal year 2021-22 were $3.86 billion. As of five months, Bangladesh's exports to the US are the lowest in the current fiscal year out of the last three fiscal years. However, garment exporters said that the decline in exports has nothing to do with the recent labor tensions with the United States. If conditions improve, exports to the US will pick up again. Basically, the US reduced imports from around the world as domestic demand fell. Because of this, garment exporters think that the export of Bangladesh with other countries has also decreased. During the mentioned period, Bangladesh's overall exports increased by 1.30% from $21.95 billion to $22.23 billion. During this time, RMG export has increased by 2.75 percent from $18.33 billion to $18.84 billion.
Source: Textile Today
The United Nations Conference on Trade and Development (UNCTAD) recently reported that global trade may observe about 5 percent decrease by the end of the year, compared to last year's record levels, amounting to a reduction of approximately $1.5 trillion, bringing it below $31 trillion. The outlook for the coming year remains highly uncertain and generally pessimistic due to geopolitical tensions, escalating debt, and widespread economic fragility. However, there are some challenges for causing the decline in global trade, including reduced demand in developed countries, decreased trade in East Asia, increased traderestrictive measures, commodity price volatility, and the lengthening of supply chains, particularly between China and the United States. Despite these challenges, the report highlights a few positive trends, such as a slight increase in trade volumes, indicating resilient global demand for imports. Some developing economies, notably Mexico and East Asian countries, have found opportunities to enhance the integration of supply chains affected by geopolitical concerns. The report points out notable declines of 13% in the textile industry and 11% in the apparel industry in 2023. Geopolitics increasingly influences global trade patterns, with countries exhibiting preferences for politically aligned trade partners, a trend referred to as 'friend-shoring,' which has become more pronounced since late 2022. Additionally, there has been a marked rise in trade-restrictive measures, particularly nontariff measures, driven by a resurgence of industrial policies and the imperative for countries to meet climate commitments. As a result, countries are adopting inward-looking policies to support domestic industries and reduce reliance on foreign supply chains, with potential consequences for impeding the growth of international trade, according to the report.
Source: Textile Today
