Textile exporters seek higher duty drawbacks, rebates and RoDTEP to tackle crisis. The Synthetic and Rayon Textiles Export Promotion Council has sought higher duty drawbacks, rebates of State and Central taxes and levies (RoSCTL), and Remission of Duties or Taxes on Export Products (RoDTEP) rates to overcome the simmering Red Sea crisis. The brewing crisis has hit textile exports hard and resulted in delays in shipments, in addition to pushing up costs. Cargo ships passing through the Red Sea have been attacked by militants for the last few days. It is one of the busiest trade routes that connects Europe and Asia through the Suez Canal. As a result of the attacks, ships are reportedly taking a 6,000-nautical-mile detour around Africa, which means an additional 15 days of transit time. It is causing a steep increase in freight rates and insurance premiums.
Additional burden
Bhadresh Dodhia, Chairman of the Synthetic and Rayon Textiles Export Promotion Council, said the deteriorating situation in the Red Sea is a matter of serious concern to the textile and clothing exporters.
Freight rates to European ports from India have already increased by 40 per cent with a possibility of further rise in rates in the near future. The rise in shipping costs will become an additional burden for exporters of textiles and clothing, said Dodhia. He urged the government to provide support to the textile and clothing exporters so that they can handle the situation and enable them to survive and sustain their exports. The majority of shipments of textiles and clothing pass through the Suez Canal, which connects the Red Sea and the Mediterranean Sea. Dodhia pointed out that freight rates have stabilised in recent times after witnessing a steep increase in rates during Covid-19 and the current crisis in the Red Sea has once again pushed up freight rates, which is not good for the exporters, he said.
Expressing concern that if the crisis prolongs and is not contained quickly, Dodhia said it will not only have an adverse impact on exports from India but will severely disrupt the global supply chain and hurt the
Source: Business Line
The government on Tuesday extended the transition period for mandatory online filing of applications for non-preferential certificate of origin till December 31, 2024. The Directorate General of Foreign Trade (DGFT) in a trade notice said during this period, the existing systems of processing non-preferential certificate of origin applications in manual mode is permitted. An exporter has to submit a Certificate of Origin (CoO) at the landing port of the importing country. The document is important to claim duty concessions under Free-Trade Agreements (FTAs). This certificate is essential to prove where their goods come from. "The transition period for mandatory filing of applications for non-preferential certificate of origin through the e-CoO platform has ben further extended till December 31, 2024," it said.
Source: Business Standard
India and the five-member Eurasian Economic Union (EaEU), led by Russia, are likely to soon begin negotiations on a free trade agreement (FTA) that is expected to boost New Delhi’s exports to the region, particularly in areas such as engineering goods, electronics and agriculture, making trade more balanced. External Affairs Minister S Jaishankar and Russian Deputy Prime Minister Denis Manturov, in a meeting in Moscow on Tuesday, discussed intensifying India’s engagement with the Russian Far East including starting negotiations on the proposed FTA, according to a tweet from the Minister. “Finalised the programme of cooperation on Russian Far East. Expect to hold early meeting of EaEU-India FTA negotiators. Will jointly organise connectivity events across land and maritime corridors,” Jaishankar tweeted following his meeting with Manturov. Jaishankar, on a five-day tour to Russia, also met his Russian counterpart Sergey Lavrov on Wednesday. “As strategic partners, discussed the international situation and contemporary issues. Exchanged views on Indo-Pacific, the Ukraine conflict, the Gaza situation, Afghanistan and Central Asia, BRICS, SCO, G20 and the UN,” Jaishankar said in another tweet on his meeting with Lavrov. Discussions on the proposed FTA between India and the EaEU, comprising Russian Federation, Kazakhstan, Belarus, Armenia, and Kyrgyzstan, had taken place in early 2020 but had to be stalled because of the Covid-19 pandemic. Talks on the FTA resumed over the past few months, but negotiations are awaited. “A number of bilateral meetings have been held with EaEU to discuss the trade agreement. Draft texts and Terms of Reference (ToR) have been exchanged. EaEU’s trade data from January 2022 onwards, necessary to determine scope of agreement and potential gains from the agreement, is awaited from EaEU,” according to a reply given by Minister of State for Commerce Anupriya Patel in a Rajya Sabha reply earlier this month. Exports to Russia India is particularly interested in stepping up its exports to Russia as its trade gap with the country has massively widened after imports of discounted oil from the country increased following the Russia-Ukraine war and Western sanctions on Moscow. In 2022-23, India’s imports from Russia increased 368 per cent (year-on-year) to $46.2 billion, primarily due to an increase in oil purchase. Its exports in the same year were $3.14 billion, down 3.3 per cent. Trade deficit was $43 billion in 2022-23. Jaishankar referred to the need for more balance in his tweet. “Appreciated the greater focus on exploring new opportunities. Discussed making our cooperation more balanced and sustainable in different dimensions,” he said. “India’s exports to Russia and Belarus have grown in this financial year up till October 2023. India is continuously making efforts to increase exports. These efforts are particularly directed towards sectors such as agriculture, engineering, etc. which are growing. Electronics and telecom goods exports to Russia and Belarus are impacted due to Western sanctions on such exports,” Patel said in her reply. Rupee payment Russia, too, is interested in increasing imports from India to make the rupee payment mechanism successful which has been put in place by the two countries to avoid sanctions. Because of low imports from India, Russia’s rupee balance in the account has been piling up. In the meeting with Lavrov, the two leaders discussed bilateral economic and intergovernmental cooperation. Before the meeting, Jaishankar said that the two would discuss the international strategic situation and the conflicts and tensions, apart from focussing on development challenges global south faces and the building of a multi-polar world order.
Source: Business Line
New Delhi, The negotiations for the proposed free trade agreement (FTA) between India and Oman are moving at a fast pace and the pact is likely to be signed next month, a senior government official said. Officials of the two countries concluded the second round of talks for the pact, officially dubbed as Comprehensive. Partnership Agreement (CEPA) earlier this month in Muscat. "With Oman, there is a very good progress and both sides are very eager to conclude this deal. It may be signed in January 2024," the official said. The negotiations on the text of most of the chapters have been concluded by both sides. Oman is India's third-largest export destination among the Gulf Cooperation Council (GCC) countries. The pact would help increase exports from India post free trade agreement, as currently over 80 per cent of its goods enter Oman at an average 5 per cent import duties, and there are not many trade barriers. According to think tank GTRI's (Global Trade Research Initiative) report, Indian goods worth USD 3.7 billion such as gasoline, iron and steel, electronics, and machinery will get a significant boost in Oman, once both sides reach a comprehensive free trade agreement. Export sectors which could get a boost in Oman include motor gasoline (exports worth USD 1.7 billion), iron and steel products (exports worth USD 235 million), electronics (USD 135 million), machinery (USD 125 million), textiles (USD 110 million), plastics (USD 64 million), boneless meat (USD 50 million), essential oils (USD 47 million), and motor cars (USD 28 million), will benefit from duty elimination, According to think tank GTRI's (Global Trade Research Initiative) report, Indian goods worth USD 3.7 billion such as gasoline, iron and steel, electronics, and machinery will get a significant boost in Oman, once both sides reach a comprehensive free trade agreement. Export sectors which could get a boost in Oman include motor gasoline (exports worth USD 1.7 billion), iron and steel products (exports worth USD 235 million), electronics (USD 135 million), machinery (USD 125 million), textiles (USD 110 million), plastics (USD 64 million), boneless meat (USD 50 million), essential oils (USD 47 million), and motor cars (USD 28 million), will benefit from duty elimination, India has implemented a trade agreement with the UAE also in May 2022. Both Oman and UAE are members of the Gulf Cooperation Council (GCC). "Oman's GDP is about USD 115 billion and its population is 5 million. Oman's higher per capita income (USD 25,060) compared to India's (USD 2,370) could mean a demand for more diversified and possibly higher-value goods and services in Oman, which India could aim to supply," GTRI Co-Founder Ajay Srivastava has said. The bilateral trade stood at USD 12.39 billion in 2022-23. India's exports have increased from USD 2.25 billion in 2018-19 to USD 4.48 billion in 2022-23. Imports from the Gulf nation were USD 8 billion in the last fiscal.
Source: Economic Times
According to the Commerce and Industry Ministry, as many as 746 applications have been approved till November 2023 under these schemes. The production-linked incentive (PLI) schemes for 14 sectors have attracted over Rs 95,000 crore in investment till September this year, an official statement said on Tuesday. According to the Commerce and Industry Ministry, as many as 746 applications have been approved till November 2023 under these schemes. In the Union Budget 2021-22, the government announced an outlay of Rs 1.97 lakh crore for the schemes. The sectors included electronics, telecommunication, pharma, white goods (AC and LED light components), and textiles. The aim is to enhance India's manufacturing capabilities and exports. "746 applications have been approved till November 2023. PLI units are established in more than 150 districts (24 states). Over Rs 95,000 crore of investment reported till September, which has led to production/sales of Rs 7.80 lakh crore and employment generation (direct & indirect) of over 6.4 lakh," the ministry said. It added that incentives worth around Rs 2,900 crore have been disbursed in 2022-23. "There has been a value addition of 20 per cent in mobile manufacturing within 3 years," the statement said. It added that of the USD 101 billion worth of total electronics production in 2022-23, smartphones constituted USD 44 billion, including USD 11.1 billion as exports. "Import substitution of 60 per cent has been achieved in the telecom sector and India has become almost self-reliant in Antennae, GPON (Gigabit Passive Optical Network) and CPE (Customer Premises Equipment)," the ministry said. There has been a significant reduction in imports of raw materials in the pharma sector also. "Unique intermediate materials and bulk drugs are being manufactured in India including Penicillin-G, and transfer of technology has happened in manufacturing of medical devices such as CT scan, I," it added. About PLI in the white goods (AC and LED light components), it said that 64 companies have been selected under the scheme. Out of this, 34 would invest Rs 5,429 crore for air conditioner components and 30 would invest Rs 1,337 crore for LED component manufacturing. "Further investments of Rs 6,766 crore are envisaged creating additional direct employment of about 48,000 persons," the ministry said, adding that 13 foreign companies are investing Rs 2,090 crore under the scheme.
Source: Jagaran
2023 was a year filled with multiple developments in the trade and commerce sector of India. A range of developments were witnessed this year ranging from Foreign Trade Policy 2023, G20 under India’s Presidency, signing bilateral MoUs among other. FTP 2023 had the key approach based on four pillars: Incentive to Remission, Export promotion through collaboration – exporters, states, districts, Indian missions, ease of doing business, reduction in transaction cost and e-initiatives and emerging areas – eCommerce Developing Districts as Export Hubs and streamlining SCOMET policy.
Source : MSN
The establishment of SPVs signifies a strategic approach, streamlining efforts and resources to ensure the successful implementation of the PM Mitra Park project. The Indian government is in the final stages of establishing Special Purpose Vehicles (SPVs) for the ambitious Prime Minister Mitra Park project, aiming to catalyse growth in the textile sector. This initiative underscores the government’s commitment to enhancing the competitiveness and capacity of the textile industry, a pivotal component of the country’s economy. The SPVs, dedicated to the PM Mitra Park project, are designed to facilitate a conducive environment for textile manufacturing, weaving, and related activities. These vehicles are expected to play a crucial role in creating modern infrastructure, fostering innovation, and attracting investments to the textile sector. The project aligns with the government’s broader vision to position India as a global hub for textile production and exports. The establishment of SPVs signifies a strategic approach, streamlining efforts and resources to ensure the successful implementation of the PM Mitra Park project. The textile sector, being a significant contributor to employment and economic growth, stands to benefit from this targeted initiative. The government’s focus on creating specialised vehicles for the project emphasises a tailored and efficient approach to address the specific needs and challenges faced by the textile industry. As the government progresses toward the finalisation of PM Mitra Park SPVs, anticipation grows within the textile sector regarding the transformative impact this initiative could have on the industry’s landscape, bolstering its competitiveness and positioning India as a key player in the global textile market.
Source: The Hindu
India Today NE The rupee opened marginally lower against the dollar tracking mixed trends in Asian currencies. At 9.10am, the home currency was trading at 83.19 a dollar, down 0.02 percent from its previous close of 83.19. The Indian current account deficit for July- September 2023-24 fell to $8.3 billion as against a deficit of $30.9 billion in the same period last year and $9.2 billion last quarter. The current account deficit is expected to be higher in the October- December quarter of 2023-24 due to higher trade deficit in October 2023, according to traders. Brent oil prices soared to $80.75 a barrel on the Red Sea woes as well as reports of US refilling it's strategic petroleum reserves. The dollar was under pressure in thin trade as the euro flirted with a four-month peak on expectations of the Fed cutting rates and thin year-end flows keeping movement limited. As most traders are on holiday trading is likely to be muted. Asian currencies were trading mixed. Philippines peso fell 0.51 percent, China offshore lost 0.14 percent while Japanese yen declined 0.1 percent. Among gainers. Indonesian rupiah rose 0.55 percent, Taiwan dollar up 0.33 percent, Thai Baht 0.3 percent while Malaysian ringgit 0.1 percent The dollar index, which measures the US currency’s strength against major currencies, was trading at 101.554, up 0.09 percent from its previous close of 101.47.
Source: India Today
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Faruque Hassan has emphasized on equipping the students with the necessary knowledge and skills in the changing scenario of the fashion world. He also suggested the use of artificial intelligence (AI) to boost the growth of the apparel industry. BGMEA President made this remark at a seminar titled "Opportunities and Prospects in Skills for Employment Investment Program (SEIP) and Probable Career Build-up in the RMG Sector" at BGMEA Complex in Uttara, Dhaka on December 24. He said, the impact of the advancement of industrial reshaping technology, special artificial intelligence has been profound. From design to production, technology is driving efficiency, sustainability, and creativity in unprecedented ways. Technology has to be harnessed through the current generation. Apart from this, Faruque Hassan emphasized the continuous process of skill development and skill gap filling in the industry to keep pace with the changing dynamics of apparel production and the global market. He said the role of SEIP scheme should be enhanced to meet the industry's demand for skilled manpower by upgrading the skill level to increase efficiency and improve efficiency. The BGMEA-SEIP project implemented by BGMEA in the garment sector aims to meet the needs of the skilled population in the industry by improving the skills of workers and midlevel management in garment factories and bridging the skill gap. The seminar was also attended by Fatema Rahim Veena, Additional Secretary and SEIP Executive Project Director; Khandaker Rafiqul Islam, Vice President (Finance), BGMEA; and Dr. Md. Sanwar Jahan Bhuiyan, Joint Secretary and SEIP Deputy Executive Director with others. Trainees of the BGMEA-SEIP project attended the seminar, where guests shared their views on the potential of the RMG industry and the importance of skill development in the face of technological advancements. The initiative is funded by the Asian Development Bank (ADB) and implemented by the Finance Division of the government of Bangladesh.
Source: Textile Today
In a recent development, plans are being laid out for a new green special economic zone (SEZ) in Koh Kong province of Cambodia. The discussions, which took place in the coastal province recently, are paving the way for an eco-friendly industrial hub with investments estimated between $400-$800 million. The discussions involved provincial authorities, representatives from the Council for the Development of Cambodia (CDC), the ministry of economy and finance (MEF), provincial governor Mithona Phouthong and representatives from the British embassy in Phnom Penh among others. The project, expected to begin in 2024, will cover at least 300 hectares, focusing on sectors like renewable energy, sustainable waste management, automotive, electronics, and textiles. National and provincial authorities are in the process of selecting a suitable location for this initiative. The development aims to bolster environmentally sustainable practices in business and attract more foreign direct investment into Cambodia, especially in sectors currently receiving less attention, according to media reports. The CDC has said that the green SEZ's mission is to produce eco-friendly exports targeting international markets. Koh Kong's strategic position, bordering Thailand and with access to the Gulf of Thailand, makes it an ideal choice for this venture. The province's current underdevelopment and available land also present an opportunity for substantial long-term industrial park development.
Source: Fibre2fashion
