India may see around $30 billion shaved off its total exports in the current fiscal year, as threats to cargo vessels in the Red Sea lead to a surge in container shipping rates and prompt exporters to hold back on shipments. The initial assessment, conducted by the Research and Information System for Developing Countries, a New Delhi-based thinktank, would mean a 6.7% drop in Indian exports, based on last fiscal year’s $451 billion total. “The crisis in the Red Sea would indeed impact India’s trade and may lead to further contraction,” said Sachin Chaturvedi, the director general of the thinktank. The government hasn’t released any official estimates on the impact of the Red Sea crisis on Indian exports. The number of ships passing through the Suez Canal is down about 44% compared to the average for the first half of December, according to Clarkson Research Services Ltd, a unit of the world’s largest ship broker. Vessels with a combined tonnage of about 2.5 million gross tons passed through in the week to Jan. 3, compared with about 4m tons at the start of last month, they said. Yemen’s Iran-backed Houthi militants have targeted vessels transiting through the Red Sea with missiles in recent weeks. The Houthis say they are going after any vessels that have a connection with Israel. For India, the Red Sea is a major route for shipping to Europe, the US East Coast, the Middle East and African countries. Prime Minister Narendra Modi’s government is in discussions with export promotion councils to find ways to protect trade transiting through the route, according to two officials familiar with the matter. Last week, India sent a warship to the Arabian Sea where a Liberian-flagged vessel said it was hijacked near Somalia’s coast. The Indian Navy said it “successfully rescued” the ship. The threats have pushed Indian exporters to hold back around 25% of the outbound shipments transiting through the Red Sea, according to Ajay Sahai, director general of the Federation of Indian Export Organizations, which falls under India’s Trade Ministry. “In many cases, both buyers and exporters are also renegotiating contracts to adjust to surging freight charges,” he said. The spot rate for shipping goods in a 40-foot container from Asia to northern Europe now tops $4,000, a 173% jump from just before the diversions started in mid-December, Freightos.com, a cargo booking and payment platform, said Wednesday. Rates from Asia to North America’s East Coast have risen 55% to $3,900 for a 40-foot container. India usually exports a variety of goods including petroleum products, cereals, and chemicals using the Red Sea route. Exports in the current fiscal year are already flagging with a 6.5% contraction in the April to November period from a year ago, according to government data. The Red Sea disruption could hit margins for India’s oil and auto sectors, Madhavi Arora, a lead economist with Emkay Global Financial Services Ltd, wrote in a note published Dec. 22. But the bigger concern could be inflation, which has been above the central bank’s comfort zone of 4% since the end of 2019. “Higher global freight and insurance rates, possible upside risk to oil and global trade and re-emergence of potential supply chain would mean cost push inflation pressures,” she said.
Source: Business Standard
Synopsis "The roadshow will culminate at Indira Bridge, which connects Ahmedabad with Gandhinagar. From the bridge circle, both dignitaries will head to their respective destinations in Gandhinagar," Hasan told reporters on Monday. Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan will lead a road show on Tuesday from outside the Sardar Vallabhbhai Patel International Airport here a day ahead of the inauguration of Vibrant Gujarat Global Summit, officials said. The 3-km-long roadshow will start in the evening after the PM receives the UAE President at the airport, said Deputy Commissioner of Police (Traffic-East), Ahmedabad city, Safin Hasan. "The roadshow will culminate at Indira Bridge, which connects Ahmedabad with Gandhinagar. From the bridge circle, both dignitaries will head to their respective destinations in Gandhinagar," Hasan told reporters on Monday. The police officer said elaborate security arrangements are in place PM Modi is scheduled to inaugurate the 10th edition of VGGS at Mahatma Mandir Convention Centre in Gandhinagar on Wednesday. Modi will also hold bilateral meetings with world leaders, and CEOs of top global corporations during his three-day visit to Gujarat from January 8 to 10, the PMO had said in a release. On January 9, at around 9.30 am, Modi will arrive at Mahatma Mandir in Gandhinagar where he will hold bilateral meetings with world leaders, followed by a meeting with CEOs of top global corporations. At around 3 pm, he will inaugurate the Vibrant Gujarat Global Trade Show, the PMO said. After inaugurating the summit on Wednesday, Modi will hold a meeting with CEOs of top global corporations. He will then travel to GIFT City where, at around 5.15 pm, he will interact with prominent business leaders in the Global FinTech Leadership Forum. The 10th edition of VGGS is being held from January 10 to 12 in Gandhinagar. Its theme is 'Gateway to the Future'. This edition will celebrate "20 Years of Vibrant Gujarat as the Summit of Success". There are 34 partner countries and 16 partner organisations for this year's Summit. The Summit will host various events including seminars and conferences on globally relevant topics such as Industry 4.0, Technology and Innovation, Sustainable Manufacturing, Green Hydrogen, Electric Mobility and Renewable Energy and Transition towards Sustainability.
Source: Economic Times
The next round of talks for the proposed free trade agreement (FTA) between India and Oman will start from January 16 and the negotiations for the pact are progressing well, a senior official said on Tuesday. The talks on the text of most of the chapters have been concluded by both sides for the pact, officially dubbed the Comprehensive Economic Partnership Agreement (CEPA)."The negotiations are progressing well. Two rounds of in-person negotiations and many inter-sessional meetings have already been held. Good progress has been made on all the chapters covered under the CEPA," the official said. On certain media reports that the talks may get delayed, the official said that any talk of hindrances or bottlenecks is "speculative and presumptuous" as the negotiating process is currently underway. Currently, both sides are working towards conclusion of the negotiations with an objective of delivering a mutually beneficial agreement contributing to the welfare and development of the people of the two countries, the official, who does not wish to be named, said. For India, Oman is the third largest export destination among the Gulf Cooperation Council (GCC) countries. The bilateral trade was USD 12.39 billion in 2022-23 as against USD 5 billion in 2018-19. India's exports have increased from USD 2.25 billion in 2018-19 to USD 4.48 billion in 2022-23. According to a report of think tank GTRI (Global Trade Research Institute), 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. India's imports from Oman stood at about USD 8 billion in 2022-23. Key products included petroleum products (USD 4.6 billion), urea (USD 1.2 billion); propylene and ethylene polymers (USD 383 million). Currently, over 80 per cent of India's goods enter Oman at an average of 5 per cent import duties, the GTRI report has said, adding Oman's import duty ranges from 0 to 100 per cent along with the existence of specific duties. In a CEPA, two countries could significantly reduce or eliminate customs duties on the maximum number of goods traded between them besides easing norms for promoting trade in services and increasing investments. The report has said that 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. The agreement also holds considerable strategic importance for India. It serves as a gateway for India to strengthen its footprint in Middle Eastern economies. This partnership with Oman can act as a catalyst, enhancing India's geopolitical presence and fostering deeper ties with other Middle Eastern countries. Commenting on the proposed pact, international trade expert and Hi-Tech Gears Chairman Deep Kapuria said this agreement would also help in boosting trade ties of India with the Middle East countries, which is a growing market for domestic products. The agreement holds importance in view of India's USD 1 trillion exports target of merchandise products by 2030, Kapuria said.
Source: Business Standard
Large trade deficit with Switzerland and its decision to remove import duties on almost all industrial goods for all countries starting January 1 would limit gains for India under the proposed trade agreement with EFTA bloc, a report said on Monday. The report by economic think tank GTRI said the trade agreement in the current format will not help Indian exports and will result in higher imports and wider trade deficit. India and the European Free Trade Association (EFTA) are negotiating a free trade agreement, officially dubbed as Trade and Economic Partnership Agreement (TEPA) with a view to boosting economic ties. FTA (free trade agreement) negotiations were initiated in January 2008. EFTA members are Iceland, Liechtenstein, Norway, and Switzerland. "The Indian side faces challenges in achieving a balanced outcome in the agreement with EFTA. There are concerns due to the large trade deficit in favour of EFTA, Switzerland's new policy of allowing tariff-free entry for all industrial goods from any country, and limited gains for India in services," the Global Trade Research Initiative (GTRI) said. It added that these factors raise questions about the fair distribution of benefits to India from the FTA with EFTA. The report added that India must navigate these negotiations with a focus on balancing trade, protecting domestic interests, and securing a fair and beneficial agreement. Switzerland's decision to eliminate import duties on all industrial goods for all countries starting January 1, 2024 changes the dynamics of the negotiations. This tariff removal does not extend to fishery and agricultural products. "This decision by Switzerland has profound implications for India's gains from the ongoing India-EFTA free trade agreement," GTRI Co-Founder Ajay Srivastava said. He said that industrial goods, which accounted for 98 per cent of India's USD 1.3 billion merchandise exports to Switzerland in FY2023, are directly impacted. Additionally, exporting agricultural produce to Switzerland remains challenging due to the complex web of tariffs, quality standards, and approval requirements, he said. " EFTA, including Switzerland, has shown no inclination to make agriculture tariffs zero on most basic agricultural produce. Consequently, with zero industrial tariffs and the difficulty in exporting agricultural produce to Switzerland, India's prospective gains in merchandise exports are effectively nullified," Srivastava said. The report also said that gold, accounting for 80 per cent of India's imports from Switzerland, is a critical factor. If the agreement does not include gold, it may not meet a WTO (World Trade Organization) provision for FTAs to have duty cuts on substantial trade. Switzerland has large historical accumulations of gold and it primarily refines imported gold. Such gold cannot meet the Rules of Origin conditions of minimum value addition of even 5 per cent. It also said that Switzerland may insist upon replacing value addition or tariff transformation conditions with specific process like refining condition and due to this India should tread cautiously. In 2022-23, India's imports from Switzerland stood at USD 15.79 billion, in stark contrast to its exports of USD 1.34 billion, leading to a substantial trade deficit of USD 14.45 billion. Overall gains in merchandise trade will be negative, as India will have to cut tariffs on substantial imports from Switzerland, it said. Further, it said EFTA countries' request for TRIPS (Trade Related Aspects of Intellectual Property Rights) plus protection for strengthening of Intellectual Property Rights (IPRs), especially patents and copyrights in India will conflict with India's domestic regulations. In the services sector, the report said that the agreement aims to open up sectors like IT, finance, tourism, and education, allowing Indian and EFTA service providers to operate in each other's markets with fewer restrictions. "However, the potential gains in services are limited, as countries typically agree to bind existing levels of policy commitments, implying a continuation of the status quo. Switzerland's stance on India's request for priority visas for Indian professionals could prove to be another sticking point," it said. India's main imports from Switzerland include gold (USD 12.6 billion), machinery (USD 409 million), pharmaceuticals (USD 309 million), coking and steam coal (USD 380 million), optical instruments and orthopaedic appliances (USD 296 million), watches (USD 211.4 million), soybean oil (USD 202 million), chocolates USD 7 million). EFTA would request India to eliminate tariffs on all the above items. In 2022-23, India's imports from EFTA were significantly higher than its exports, leading to a trade deficit of USD 14.8 billion.
Source: Outlook India
Amid the India-Maldives diplomatic row, traders' body CAIT on Monday called upon domestic traders and exporters to refrain from conducting business dealings with the island nation. CAIT Secretary General Praveen Khandelwal observed that the offensive comments targeting Prime Minister Narendra Modi have been deemed unacceptable by the business community, and this call to boycott aims to express solidarity and register disapproval against such disrespectful behaviour. Khandelwal stressed upon the need for mutual respect in diplomatic discourse and condemned any form of disrespect towards the leaders of friendly nations. Meanwhile, the Maldivian envoy to India was summoned to the external affairs ministry on Monday and conveyed strong concern over remarks posted on social media against Modi by a number of ministers of the Maldives, sources said. The government of the Maldives on Sunday suspended three deputy ministers for derogatory social media posts against Modi. The three deputy ministers criticised the prime minister for his post on X following his visit to Lakshadweep, inferring that it was an attempt to project the Union Territory as an alternative tourist destination to the Maldives. According to Maldivian media reports, deputy ministers in the youth ministry, Malsha Shareef, Mariyam Shiuna and Abdulla Mahzoom Majid have been suspended for their posts.Official sources in New Delhi said the Indian high commission in Mal strongly raised the matter with the Maldivian foreign ministry on Sunday. The disparaging remarks by the ministers have drawn flak in India, with many celebrities urging people on X to explore domestic tourist destinations instead of going to the Maldives.
Source: Business Standard
on January 8 said that the Global Investment Meet (GIM) has brought investments worth Rs 6.64 lakh crore, which is poised to generate 26.9 lakh jobs in the state. "We have attracted an unprecedented Rs 6,64,180 crore in investments. A total of 26,90,657 jobs are expected to be generated from these investments that includes direct employment for 14,54,712 persons, " said Stalin. He promised investors the state's co-operation and has offered single window clearances for these investments. "Over the last 2 years I have laid the foundation stones for 44 projects and inaugurated 27 industries. Due to these efforts 74,757 women and youth would be provided employment...I can confidently say that this Global Investor Meet will be a watershed in Tamil Nadu’s industrial growth," the Chief Minister noted. The CM also directed the officers to put in all the efforts to make Tamil the frontrunner in attracting global investments. "The objective of this investors meet was to showcase Tamil Nadu on the global stage as the best state for fostering investments. I am happy and proud to inform this august gathering that due to our tireless efforts and your participation during this Global Investors’ Meet we have attracted an unprecedented Rs.6,64,180 crore of investments," Stalin said. The State's Industries Department will be going to Davos to showcase TN's development, said the Minster of Industries in Tamil Nadu "The State Industries Department will be going to Davos in the next few days to showcase TN's strength. The CM will travel with us to Spain on Jan 28 & plans are on for visits to countries like Australia and US," said TRB Rajaa, minister of industries of Tamil Nadu. "These two days of GIM have not only been about investment numbers but also about high-quality jobs distributed across the state. Along with advanced sectors like EVs semiconductors, quantum computing, battery cell manufacturing, the govt is also looking at mass-jobs creators such as non leather footwear." The total proposed investment figures at the end of the two-day summit well surpassed the state government's target of attracting Rs 5 lakh crore in investments. The CM also said that a total of 26,90,657 jobs are expected to be generated from the proposed investments that includes direct employment for 14,54,712 persons and indirect employment for 12,35,945 persons. During the course of the summit, the CM unveiled Semiconductor and Advanced Electronics Policy and public private partnership policy as well as his government's road map to make Tamil Nadu a $1-trillion economy by 2030.
Source: Money Control
he maiden edition of Inland Waterways Development Council (IWDC) in Kolkata culminated with many firsts in an effort to ramp up capacity and augment viability of inland waterways of the country. The meet, chaired by the Union Minister of Ports, Shipping & Waterways and Ayush, Shri Sarbananda Sonowal was attended by key stakeholders including ministerial representations from states as well as prominent stakeholders including policy makers and the industry leaders. The meet, with an objective to enable inland waterways as conduits of economic growth and commerce in the country, committed an investment ₹45,000 crore for development of river cruise tourism in the country. Of this ambitious sum, an estimated ₹35,000 crore has been earmarked for cruise vessels and another ₹10,000 crore for development of cruise terminal infrastructure at the end of Amrit Kaal, i.e. by 2047. To amp up inland waterways for cargo trade, an investment of ₹15,200 crore has been arrived at the Global Maritime India Summit (GMIS) held in Mumbai in October, 2023. This is likely to register a growth rate of more than 400%, increasing the volume upto 500 Million Tonnes Per Annum (MTPA) by 2047. Shri Sonowal also launched ‘Harit Nauka’ guidelines and ‘River Cruise Tourism Roadmap, 2047’ at the inaugural session of IWDC in Kollkata today. Speaking on the occasion, Shri Sonowal said, “India has been growing impressively under the dynamic leadership of Prime Minister Shri Narendra Modi ji since 2014. The immense potential of blue economy must be realised as we work towards becoming a leader in the Blue Economy of the world, a vision of Modi ji. The Inland Waterways Development Council was conceived with an objective rejuvenate our rich, complex and dynamic waterways. From the days of yore, waterways has been the conduit of economic growth and development of human civilisation. However, these brilliant proven tracks of prosperity remained neglected for decades, resulting in waste of invaluable wealth for the country. In order to resuscitate our waterways, IWDC is making an attempt with a modern approach, clear strategy and towards a goal to ensure sustainable development for an Atmanirbhar Bharat by the end of Amrit Kaal.” At the IWDC, a roadmap was chalked to enable capacity in an additional 26 waterways, fit for River Cruise tourism from operational strength of 8 waterways. The number of cruise circuits with night stays to be increased from 17 to 80 during the same time. In an effort to boost infrastructure in the inland waterways, the number of river cruise terminals to be increased up to 185, registering a growth of 1233% from the present strength of 15 terminals. Building on the capacity of enhanced circuits, the cruise tourism traffic with night stays to be move up from 5,000 to 1.20 lakh by 2047. Similarly, the local cruise tourism traffic on National Waterways without night stay to be increased from 2 lakh to 15 lakh by 2047. The meet was also attended by Union Minister of State for Ports, Shipping & Waterways, and Tourism, Shri Shripad Naik and Union Minister of State for Ports, Shipping & Waterways, Shri Shantanu Thakur. The IWDC was also attended by ministers from state governments, senior government officials and other key stakeholders. The IWDC was organised by the Inland Waterways Authority of India (IWAI), the nodal agency for inland waterways in India, under the Ministry of Ports, Shipping & Waterways, Government of India. The one-day meet was held on board vessel MV Ganges Queen at the Kolkata Dock Complex.Adding further, Shri Sonowal said, “Inland waterways are the arteries of progress, and the Inland Waterways Development Council (IWDC) marks a pivotal stride in our commitment to harness their potential. Under the leadership of PM Modi and with collaborative efforts and strategic initiatives, we aim to unlock the full spectrum of opportunities, fostering sustainable development and growth in the inland water transport sector. With the launch of 'Harit Nauka – Guidelines for Green Transition of Inland Vessels,' MoPSW embarks on a journey towards a sustainable and eco-friendly future for our inland waterways. The roadmap had identified 30+ additional potential routes for different cruise types, including long & short, recreational and heritage segments to attract all tourist categories. An action plan and roadmap, including route development, marketing strategy, infrastructure development and navigation to effectively proceed with developing such additional river cruises is also ready.” The Syama Prasad Mookerjee Port in Kolkata, which was in loss in 2014, has been turned around and this year it will achieve a net surplus of over ₹550 crore for FY2023-24. The Government, in alignment with its vision to enhance the role of IWT, initiated various measures, including the flagship Jal Marg Vikas Project (JMVP) for the development of the Ganga-Bhagirathi-Hooghly river system (NW 1). This project focused on cargo, Ro-Ro, and passenger ferry movement, along with the inclusion of small villages through community jetties. Moreover, the Ministry of Ports, Shipping, and Waterways (MoPSW) set ambitious targets, aiming to increase the modal share of IWT from 2% to 5%, as outlined in the Maritime India Vision 2030. The goal also involved elevating the existing IWT cargo volume from ~120 MTPA to more than 500 MTPA, in line with the Maritime Amrit Kaal Vision 2047. Significant progress in waterway infrastructure includes the establishment of Multimodal Terminals at Varanasi, Sahibganj, and Haldia, enhancing regional connectivity. The Kalughat Intermodal Terminal is making substantial strides to facilitate seamless transportation and boost trade activities. The completion of a new Navigational Lock at Farakka enhances waterway navigability. Ongoing construction of over 60 community jetties underscores a commitment to local connectivity and accessibility. These achievements collectively promote efficiency, connectivity, and local development in waterway infrastructure. Inland Water Transportation (IWT) provided a unique opportunity to promote the use of electric, hybrid, hydrogen, and derivative (such as ammonia or methanol) propulsion fuels for ships. In the initial phase, a strategic move was made with the deployment of eight electric catamaran vessels. These vessels were strategically placed for pilgrimage tourism, with two stationed at Ayodhya, Varanasi, Mathura on National Waterway-1, and two at Guwahati on National Waterway-2. IWT plays a pivotal role in transforming the logistics and passenger movement landscape in the country. Spanning over 22,000 km across 24 states, with 111 notified National Waterways; IWT emerged as an effective alternative mode of transportation. Maritime Amrit Kaal Vision 2047 represents the true development potential inherent in India's coastline of 7500 km, in its vital network of inland waterways, and in the coastal districts - with direct sectoral synergy and cross-sectoral multiplier effect on inclusive growth and employment. There are 46 initiatives identified to develop IWT under the Maritime Amrit Kaal Vision 2047, of which the key initiatives for enhancing modal share of coastal shipping and inland water transport include creation of port-based agglomeration centres, creation of coastal berths near coast-based production/demand centres, Road/Rail/IWT connectivity/expansion projects.
Source: PIB
Most of the investments to a total of ₹6,603 crore accruing to Tiruppur district from the Global Investors Meet 2024 pertain to garments, food-processing, coir-making and renewable (solar) energy generation, according to the Industries Department. The investments to be made over the next four years are expected to generate close to 22,000 jobs. The investments have exceeded the target of ₹6,551 crore set by the Department. After the logo for GIM 2024 was unveiled during August, 2023, the Industries Department has signed Memorandums of Understanding with 439 investors in Tiruppur district, said M. Ramalingam, General Manager, District Industries Centre, Tiruppur. A chunk of the investments was from existing players who were scaling up their activities by establishing additional production lines, Mr. Ramalingam said. For the benefit of students and industry representatives, the virtual proceedings were beamed live in several locations including colleges, schools and industrial training institutes, on Sunday. The event was streamed at Chikkanna Government College, Tiruppur; L.R.G. Government Girls College, Tiruppur; Government Arts and Science College, Palladam; Park College, Tiruppur; and ITIs in Tiruppur, Dharapuram and Udumalpet. As for schools, the event was watched by students in four government and governmentaided schools in Tiruppur, two schools each in Udumalpet, Palladam, Avinashi, Mulanur, Uthukuli and Dharapuram; and one school each in Nathakadaiyur, Kangeyam, Vellakoil, Madathukulam, Karatholuvu, Gudimangalam, Ramachandrapuram, Pethampatti, Pongalur, Koduvai and Kunnathur.
Source: The Hindu
VIETNAM— This year is predicted to be difficult for textile and garment businesses following a challenging 2023. Expanding customer bases and diversifying products are the necessary solutions to maintain production and grow businesses, experts say.Last year, the textile and garment industry faced many challenges due to the impact of the world and domestic economic situation.Lê Tiến Trường, vice chairman of the board of directors of Việt Nam National Textile and Garment Group, assessed that last year was the most difficult year in more than 30 years of exporting for the textile and garment industry, excluding 2020 when the world closed due to the COVID-19 pandemic. The industry’s turnover declined by 10 per cent, while unit production costs dropped by 30 per cent, and some product codes fell by up to 50 per cent. A report from the Việt Nam Textile and Apparel Association (Vitas) showed that export turnover reached US$44.4 billion in 2022, a year-on-year increase of nearly 10 per cent."The industry's business results from 2023 also partly speak to the difficulties of operators and workers to be able to maintain efficiency in production and business activities," he said. Faced with the difficulties of the market, experts recommend that businesses need to continue the goal of diversifying markets, products, and customers.Based on the lessons learned last year, the industry should focus on sustainable development, coupled with the requirements of the global market for sustainable textiles and garments. At the same time, businesses should promote investment in technology and automation in production lines to ensure fast delivery schedules, small product batches but high product quality. This will certainly be one of the strategic changes for garment businesses as large, specialised orders will become fewer and fewer, as well as focusing on solutions for the fashion industry. In the context of fierce competition among textile and garment producing countries as aggregate demand declines, Việt Nam still stands out as a bright spot in the region with political stability, high production capacity, skilled workers, while at the same time, good remuneration policies to retain employees. Thân Đức Việt, general director of Garment 10 Joint Stock Company (Garco 10), said that the world and Vietnamese economies were forecast to still have many difficulties and challenges, and world economic growth would still depend on many unpredictable factors this year. The textile industry would face a series of difficulties from applying the Extended Producer Responsibility (EPR) and Carbon Border Adjustment Mechanism (CBAM) mechanisms as well as the "sustainable fashion" strategy instead of "fast fashion". Export orders were expected to continue to decrease, as the trend would be small quantities, fast delivery times, risky supply chains, and high-cost inputs. —VNS
Source: News Wire
Raw-material imports for Bangladesh's export-oriented readymade garment (RMG) industry dipped sharply in 2023, despite the sector maintaining a 3.67-percent year-on-year growth in exports, data showed. Textile and apparel leaders attributed the import decline to a combination of factors: ongoing dollar crisis, sluggish global demand for RMG and local millers operating below capacity due to gas crunch. According to millers, cotton imports fell significantly due mainly to the dollar crisis. They said gas constraints limited their production capacity to around 60 per cent. Apparel sector leaders, however, noted a rise in the use of locally produced yarn and fabric, alongside increased imports of non-cotton or man-made fibres (MMF) and recycled yarn from garment and textile waste. Data from the Bangladesh Textile Mills Association (BTMA) compiled from central bank figures shows a 24.85 per cent drop in cotton imports in 2023 to 1.35 million tonnes -- down from 1.80 million tonnes in 2022. Similarly, another key RMG input yarn imports declined by 10.11 per cent to 0.92 million tonnes last year, compared to 1.03 million tonnes in 2022. Woven and knit fabric imports also saw declines last year, falling by 14.49 per cent and 10.34 per cent respectively, to 0.49 million tonnes and 0.31 million tonnes in 2023. The country imported 0.57 million tonnes and 0.35 million tonnes of woven and knit fabric respectively in 2022, according to BTMA data. Mohammad Ali Khokon, president of the Bangladesh Textile Mills Association (BTMA), pointed the finger at inconsistent gas supply, forcing mills to run at reduced capacity, for the cotton import fall. He said many spinners, who primarily import cotton for the domestic market and do not have access to the export development fund, faced import difficulties amid the dollar crisis. According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), RMG exports fetched the country $47.38 billion last year -- a 3.67 per cent increase from $45.70 billion in 2022. Faruque Hassan, president of the BGMEA, credited an increased use of domestic yarn and fabric, leading to greater value addition, for 2023 export growth. Garment exporters sourced more local materials and also utilised some previously imported stock, he told The Financial Express. Moreover, imports of non-cotton or man-made fibre (MMF) significantly increased in 2023, as Bangladeshi manufacturers diversified their production towards value-added items beyond cotton, Mr Hassan said. BTMA data shows a 13.39 per cent rise in polyester and viscose fibre imports in the January-November period compared to the corresponding period in 2022. According to industry people, Bangladesh largely manufactures cotton-based products as 75 per cent of the readymade garments shipped for export are cotton-made. However, Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), had a different opinion about the import fall. He translated the import fall of RMG inputs into declining export orders. "Cotton is the core raw material for the RMG sector and the country is completely import-dependent," he said in his argument. Mr Hatem, however, admitted some value additions which, he said, might have played a role in the reduced yarn and fabric imports.
Source: Financial Express
Chairman of the Federation Pakistan Chamber of Commerce and Industry (FPCCI) Capital Office, Karim Aziz Malik, expressed optimism about boosting Pakistan's textile exports to China during a meeting with a delegation of Chinese investors, said a press release issued today. He highlighted that while the majority of Pakistan's textile products are currently exported to Europe and America, the textile industry aims to enhance its presence in the Chinese market.Karim Aziz Malik assured Chinese investors of lucrative returns on their investments in Pakistan, emphasizing the favorable incentives and liberal policies available for both foreign and local investors across various sectors of the economy. “It is the right time for Chinese investors to earn lucrative returns on their investments in Pakistan and FPCCI assures to connect the Chinese investors with the right partners in Pakistan for joint ventures,” Karim Aziz Malik stated, as APP reported.The Chinese investors visited FPCCI Capital Office under the leadership of Zhang Yang, Director Chongjiang Federation of Investment and Commerce and Chairman of Chang Jiang Management Company. Pakistan provides attractive incentives which are available in special schemes and in traditional as well as non-traditional sectors of the economy which offer great opportunities to the business community to invest in the country and to have maximum profit on their investments, he said. Karim Aziz Malik briefed the delegation that Pakistan's top exportable items include textile made-up, cotton, knitted and non-knitted apparel, Rice, Pink Salt, Plastic Articles, Leather Articles, Automobiles, Mining, Gems Stones, Among many others. Chairman Capital Office said that Pakistan is the world's 10th Largest Producer of rice. Pakistan's exports make up more than 8% of the world's total rice trade. Pakistan's export of broken rice to China has increased substantially. He further said that Pakistan is the world's sole producer of pink Salt and the global market for pink salt is approximately $12 billion. He invited Chinese investors to the emerging and fast-growing sector of Pink Salt for investment and joint venture. He informed that the season of Cherry is going to start in Gilgit Baltistan, and many Chinese delegations have visited the orchards of Cherries and they have shown their keen interest in importing Cherries from Pakistan. Ashfaq Ahmed, Vice President FPCCI stressed the importance of interaction between business people, expansion of trade, and creation of joint venture investment between both nations. He further said that in the future, Pak-China collaboration would largely be dependent on the active participation of their private sector enterprises. Both governments should play the role of facilitators of private-sector collaboration to enhance their role in promoting bilateral trade and investment. Malik Sohail Hussain, Chairman of Coordination FPCCI Capital Office briefed the participants about business opportunities and investment potential in various sectors of Pakistan’s economy. He said that Pakistan and China have great prospects to promote cooperation in multiple areas. He said it was encouraging that many Chinese companies were investing in Pakistan and making useful contributions to the economic development of our country. He stressed for frequent exchange of trade delegations to bring the private sectors of both countries closer, exchange views, share experiences, and explore possibilities of setting up joint ventures in potential areas of cooperation. Speaking at the occasion, Zhang Yang, Director of CFIC and Chairman of Chang Jiang Management said that Pakistan has made attractive policies, which provide numerous investment opportunities for Chinese investors. He said that various Chinese companies are working in various fields in Pakistan. The two countries are committed to further improving trade relations and we hope that in the future there will be substantial growth in bilateral trade between the two countries. He further said that we are in an era of challenges and changes.
Source: Mettisglobal
In November 2023, Germany's exports rose by 3.7 per cent and imports by 1.9 per cent compared to October 2023, according to the latest figures from the Federal Statistical Office (Destatis). However, when compared with November 2022, there was a noticeable decrease, with exports down by 5 per cent and imports falling by 12.2 per cent. The total value of exports reached €131.2 billion, while imports stood at €110.8 billion in November 2023, after adjusting for calendar and seasonal variations. This resulted in a foreign trade surplus of €20.4 billion for the month, an increase from the €17.7 billion in October 2023 and significantly higher than the €11.9 billion recorded in November 2022. Germany's trade with European Union (EU) member states also saw a positive trend. Exports to EU countries rose by 5.4 per cent to €71.5 billion, and imports increased by 2.8 per cent to €58.9 billion in November 2023 compared to the previous month. Specifically, exports to euro area countries totalled €50.3 billion, a 5.3 per cent increase, while imports from these countries were up 2.4 per cent to €39.2 billion. Trade with EU countries outside the euro area also grew, with exports at €21.2 billion and imports at €19.7 billion, as per Destatis. Regarding trade with non-EU countries, exports amounted to €59.7 billion, and imports totalled €51.9 billion in November 2023. Compared to October 2023, exports to these countries grew by 1.8 per cent and imports by 0.8 per cent. The US remained the top destination for German exports, despite a 1.4 per cent decline from October 2023, totalling €13.4 billion. Exports to China and the UK showed increases of 3.1 per cent and 15.2 per cent, respectively. China was also the largest source of imports to Germany, with a value of €13 billion in November 2023, marking a 3.1 per cent increase from the previous month. Imports from the US and the UK also rose, recording increases of 3 per cent and 6.3 per cent, respectively. Trade with Russia showed a significant calendar and seasonally adjusted increase of 12.8 per cent to €0.7 billion in exports in November 2023 compared to October. However, compared with November 2022, exports to Russia decreased by 38.3 per cent. Imports from Russia decreased by 14 per cent to €0.2 billion in November 2023 from October and were down by 88.4 per cent compared with November 2022. On a nominal basis, Germany exported goods worth €139.2 billion and imported goods totalling €117.2 billion in November 2023. This represents a 4.9 per cent decrease in exports and a 12.1 per cent decline in imports compared with November 2022. The unadjusted foreign trade surplus stood at €22 billion in November 2023, up from €13 billion in the same month of the previous year.
Source: Fibre2Fashion
