The commerce ministry has decided to extend export benefits under the RoDTEP scheme for companies in the special economic zones (SEZs) and export-oriented units (EOUs). This decision was communicated to the Director General of Foreign Trade (DGFT) on February 16. The DGFT may issue a formal notification soon amending the foreign trade policy on the same. "Post-rollout of ICEGATE (Indian Customs Electronic Data Interchange Gateway) in SEZs, the RoDTEP scheme may also be extended to SEZs," according to an office memorandum of the commerce ministry. The government in August 2021, announced the rates of tax refunds under the export promotion scheme -- Remission of Duties and Taxes on Exported Products (RoDTEP), for 8,555 products such as marine goods, yarn, and dairy items. As SEZs and EOUs were kept out of the scheme in the list notified at that time, the industry was demanding to include them in the scheme. Under RoDTEP, various central and state duties, taxes, and levies imposed on input products, among others, are refunded to exporters. The current RoDTEP rates range from 0.3 percent to 4.3 percent. ICEGATE is the national portal of Indian Customs of the Central Board of Indirect Taxes and Customs (CBIC) that provides e-filing services to trade, cargo carriers, and other trading partners electronically. It serves as an interface between trade users and the customs department and acts as a hub for exchanging information with external trading partners involved in international trading. The primary goal of RoDTEP is to refund taxes and duties that are not rebated under any other scheme. This includes various central, state, and local duties, taxes, and levies that are incurred in the process of manufacturing and distributing exported products but are not refunded through schemes like GST (Goods and Services Tax) or the Duty Drawback Scheme. RoDTEP does not include all exports. Exports under certain categories are currently excluded from RoDTEP benefits, and that includes products exported from SEZs, EOUs, Electronic Hardware Technology Parks (EHTP), Biotechnology Parks (BTP), and Customs-bonded warehouses; exports under Advance Authorization (which allows dutyfree imports of inputs for export production); and re-exported imported goods. The list also includes exports subjected to minimum export price or export duty; restricted export or import products; and supplies from Domestic Tariff Areas (DTAs) to SEZ/Free Trade and Warehousing Zones (FTWZ) units. Commenting on the development, the economic think-tank Global Trade Research Initiative (GTRI) said RoDTEP may lead to overcompensation for import-intensive exports from SEZs. The decision may be a disproportionately "high bonanza" for high import-intensive exports from SEZs, it said. However, the decision overlooks exports from other categories that are in a similar situation as SEZs, it added.
Source: The Economic Times
With the negotiations for the proposed India-UK free trade agreement reaching an advanced stage, the Prime Minister's Office reviewed the progress of the talks on February 16, sources said. Commerce and Industry Minister Piyush Goyal and Commerce Secretary Sunil Barthwal were also present in the meeting, they said. "The talks for the agreement are at a crucial stage now. About three reviews have happened so far at the highest level," they said, adding both countries are working to iron out differences on the remaining issues. The commerce secretary recently stated that the negotiations were taking time because "we want" to safeguard India's interest. "India should commercially gain out of it and we should also be able to safeguard the interest of our farmers, PLI (production linked incentive) scheme goods. So, we are there to see that the deal is a fair deal," he said.
Source: The Economic Times
India and the European Union (EU) will begin the seventh round of negotiations on the free trade agreement (FTA) in New Delhi on Monday, along with talks on an investment protection agreement (IPA) and a pact on geographical indications (GIs). Union minister of commerce and industry Piyush Goyal (File Photo) This round of talks is expected to last five days, three officials aware of the development said on condition of anonymity. The sixth round of negotiations, which was held in Brussels, concluded on October 27, 2023. Discover the thrill of cricket like never before, exclusively on HT. The previous round covered policy areas related to goods and government procurement offers and the seventh round is expected to include services and investment, one of the officials said. The sixth round had also focused on accelerating work on the text presented by the two sides and some progress was made on technical matters, a second official said. “The stage for the seventh round has been set by the chief negotiators of both sides after two separate meetings – the first in Brussels during mid-November and the second in New Delhi last month,” the first official said. The two sides have already held “substantial” discussions on matters related to goods and public procurements in previous rounds, the third official said. “The two sides were engaged constructively in the last three to four months to iron out differences and prepare the ground for the seventh round,” he said. The sixth round consisted of 71 technical sessions covering 18 of the 23 policy areas and chapters. These talks were held in person and virtually. The proposed trade deal with the EU is one of the most complex FTAs being negotiated by India. While there is interest on both sides to take forward the deal, a breakthrough is unlikely before the general elections in India and European Parliament polls this year. India will continue to oppose the EU’s move to impose a carbon tax or the Carbon Border Adjustment Mechanism (CBAM) on various imports at multilateral forums such as the MC13 at Abu Dhabi later this month, but this is unlikely to affect the FTA talks, a fourth person aware of the matter said on condition of anonymity. “India is committed to environmental protection and is doing more than it has committed at global forums. Prime Minister Narendra Modi has given a call for LiFE [Lifestyle for the Environment]. But India is against making this part of trade commitments, which would be nothing but a non-trade barrier,” the fourth person said, referring to CBAM, which is a proposed tariff on carbon-intensive products to offset carbon leakage. CBAM could lead to tariffs of up to 35% on imports of high-carbon goods such as steel, iron ore and cement from India. EU officials have said CBAM will be implemented gradually and that their side is open to talks to address India’s concerns. Even as New Delhi opposes measures such as CBAM being made part of any trade deal, it is preparing its industry to make products with a low carbon footprint, such as green steel, green cement and green hydrogen, the fourth person said. The EU’s demands include removing barriers to trade for smaller European firms, opening up services and the Indian public procurement market, and negotiations on such matters are being done on the principles of reciprocity and equity while protecting the interests of India’s micro, small and medium enterprises (MSMEs), the third official said. “There are marked differences between the MSMEs of the two sides in all aspects – size, investments and use of technology. Hence, all such matters must be negotiated on the principle of equity,” the official said. MSMEs, agriculture and dairy are sensitive sectors for India, he added. The third official noted India is the world’s fifth largest economy, but is also a developing nation with significantly low per capita income compared to European states. Reciprocal trade arrangements for farming and dairy are not possible as Indian farmers are very poor. For them, farming is for subsistence rather than profit, and the government is committed to protecting their interests, he added. Unlike the recently signed FTAs with Australia and the United Arab Emirates (UAE), the proposed deal with the EU is comprehensive in terms of size (27 member countries) and scope (the range of subjects under negotiation), and hence, the pact will take more time, the third official said. India and the EU resumed bilateral trade and investment negotiations about a month after PM Modi participated in a leaders’ meeting in May 2021 at the invitation of European Council President Charles Michel. This was the first time the EU hosted a meeting with India in the EU+27 format. The negotiations that were stalled for almost nine years were re-launched in 2022 along with separate talks for the IPA and the agreement on GIs.
Source: Hindustan Times
"A total of eight sub-committees have been constituted under the AITIGA Joint Committee for undertaking negotiations on different policy areas related to the agreement," the commerce ministry said. The first two meetings of the joint committee were held in May and August last year. In the meeting, the ministry said, the sub-committees reported the progress and outcome of their discussions related to market access, rules of origin and standards, technical regulations and conformity assessment procedures to the joint committee. India-10-nation bloc ASEAN trade has grown to USD 131.58 billion in 2022-23. Both sides are aiming to conclude the review in 2025. The fourth meeting of AITIGA joint committee is planned to be held in Kuala Lumpur, Malaysia, in May. The review of the AITIGA was a long-standing demand of Indian businesses. India is asking for a review of the agreement with an aim to eliminate barriers and misuse of the trade pact. Asean members include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
Source: Money Control
Ahmedabad: Textile projects worth about Rs 1,000 crore are in limbo as Gujarat has not yet announced its new textile policy after the old one expired on Dec 31, 2023. According to sources, projects worth about Rs 400 crore are those that were completed but could not start production before the end of Dec. To begiin production, they are waiting for the new policy. Other players are planning new projects and need a clear policy to go ahead with their investment plans. Industry associations said other states have attractive textile policies and even companies based in Gujarat are investing in some of them. Gujarat got about Rs 30,000 crore in new investments from 2012 to 2017 due to its competitive textile policy. After 2017, the state has struggled to get new investments. The textile task force of the Gujarat Chamber of Commerce and Industry (GCCI) had submitted a report to the state govt saying that the textile policies of other states like Telangana, Maharashtra and Madhya Pradesh are more attractive and companies such as Welspun, Arvind, Donear and General Group were consequently setting up their new plants there. Rahul Shah, co-chairman of the GCCI textile task force, said, “We made a detailed presentation to the state govt and expect a competitive textile policy soon. However, the policy announcement has been delayed. There is no textile policy in place currently, so certain plants that are ready are reluctant to start production without incentives on offer. In the current scenario, the textiles industry is not viable without incentives. With no policy in place, investments are going to other states. Gujarat has been the textile hub of the country, and a policy announcement soon is needed.” According to estimates, projects worth about Rs 1,000 crore are awaiting a policy and Rs 600 crore in new investments is also held up. “Investors, both domestic and international, are hesitant to commit to new projects in Gujarat while the policy ambiguity persists. This reluctance stems from the competitive landscape, with other states offering attractive incentives and support measures for textile investments. Saurav Jalan, a city-based textile manufacturer, said, “We expanded our capacity recently with an investment of more than Rs 50 crore. However, we are unable to start production because no policy is in place. Timely implementation of a new competitive textile policy will help the state’s textile industry grow faster.” The delay is affecting the broader ecosystem of suppliers and manufacturers as well. Industry players are unable to make informed decisions about investments and expansion plans, sources said.
Source: Times of India
The Textile Association (India), Mumbai Unit organized International Conference on “Sustainability and Circularity - The New Challenges for the Textile Value Chain” on Wednesday, 31st January 2024 at Hotel the Lalit, Mumbai. The Conference received overwhelming response with 275 delegates in attendance. The theme of Conference, topics, presentations, and speakers were highly appreciated by one and all. Some of the highlights of the conference are described as under: Mr. V. C. Gupte, Chairman, TAI, Mumbai Unit and Convener of the Conference welcomed Guest of Honour, Ms. Seema Srivastava, Executive Director, India ITME Society, Keynote Speaker, Dr. Naresh Tyagi, Chief Sustainability Officer, Aditya Birla Fashion and Retail Limited, Awardees, Speakers, Press, Media, and delegates. Mr. Gupte welcomed and congratulated two awardees Dr. Sharad Kumar Saraf for The Lifetime Achievement Award and Mr. Rajkumar Agarwal for The Industrial Excellence Award. Mr. Gupte explained what is circularity and circularity model, in which all materials are viewed as a resource, there is no waste. A circular textiles system will require solutions that would enable us to recycle textiles back into textiles without degrading quality. He explained when a product reaches the end of its life, its materials are kept within the economy wherever possible, The circular economy involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible. These can be productively used again and again, thereby creating further value. This is Circular Economy which is departure from the current model of which is based on a take-make-consume-throw away pattern. However, it is now realised to relook at this model for better sustainability of the planet Earth. He mentioned that TAI, Mumbai Unit has always selected contemporary & innovative topics in all the conferences organized and presentations by high profile speakers. This conference is also no exception to the set tradition especially the theme being of international importance. Mr. Rajiv Ranjan, President, TAI, Mumbai Unit in his Presidential Address started with the UN definition that a sustainable development meets the needs of the present generation without compromising the ability of future generations to meet their needs. Since the textile industry was very polluting in nature and as per estimate more than five per cent of total Green House Gas (GHG) emission was due to this industry, the 3R principle of Reduce, Recycle and Reuse was never more valid. In its efforts towards sustainability, it was extremely important for the textile industry to look at steps to conserve resources, optimise efficiencies across the manufacturing process and minimise waste at every stage. If a proper mechanism was adopted by the industry to work on collection for recycle and reuse, then remarkable changes could be brought to nurture sustainable development. ESG (Environment, Corporate and Social Governance) and sustainability were essential principles that organizations must adopt to operate in a responsible and sustainable manner. These measures not only benefit the environment and the society, but they also contribute to the company's long term profitability and success. Mr. G. V. Aras, The Conference Chairman and Trustee, TAI, Mumbai Unit briefed about the details of the Conference, including topics and speakers. He said every attempt has been made to address the theme from the perspectives of organized industry and MSMEs apart from international perspectives. Sustainable development with circularity is emphasized by the speakers from different angles so that a holographic picture can be conceived at the end of the conference. He reiterated that sustainability and circularity are the most important aspects of manufacturing for reducing environmental impact. While sustainability is the goal, circularity is a milestone that results to achieve sustainable objectives. In circularity model, all materials are viewed as resources and as such there is no waste. A circular textile system requires solutions that would enable us to recycle textiles back into textiles without degrading quality. Dr. Naresh Tyagi, Chief Sustainability Officer, Aditya Birla Fashion and Retail Limited in his Keynote address described the sustainability and various steps involved in establishing the goals set towards circularity. He emphasized that the holistic approach to develop strategies to achieve the goals set and collate with national and global perspectives. He described the various facets of sustainability and in turn strategies developed through circularity in line with sustainable development goals set by UNO as India is a signatory for the seventeen sustainable goals. With his rich experience in sustainability solutions at Birla Cellulose, he unfolded in a lucid way the importance of the subject and relevance to textile and clothing industry. His keynote address set the pace of the theme of the conference rolling to extend the deliberations on various other aspects of sustainability and circularity. Honouring the best in class under the Textile and Trade Family Tree TAI Mumbai Unit takes it as privilege to honor the distinguished achievers in the textile trade and industry every year. As a tradition, the following luminaries were honored during the international conference. a) The Lifetime Achievement Award The Textile Association (India), Mumbai Unit has set a precedent by felicitating the textile professionals/industrialists for their outstanding contribution to the textile industry. In this Conference, the TAI, Mumbai Unit felicitated Dr. Sharad Kumar Saraf, Chairman and Managing Director, Technocraft Group with “The Lifetime Achievement Award” for his Contribution and Services to the Textile & clothing Industry. In his remarks, the awardee Dr. Saraf highlighted the key features of sustainability based on his rich experience in the industry and trade. b) The Industrial Excellence Award TAI, Mumbai Unit also felicitated Mr. Rajkumar Agarwal, Managing Director, SVG Fashions Ltd. with “The Industrial Excellence Award” for his contribution in the field of textile and clothing industry. Mr. Rajkumar in his remarks, emphasized the role of the textile and clothing sector in the light of international scenario. Ms. Seema Srivastava, Executive Director, India ITME Society who was the Guest of Honor addressed the delegates. She described the importance of the theme of the conference regarding holistic approach for the development of the textile and clothing sector. She highlighted the synergy of machinery development and promotion in achieving the sustainability and circularity. She complimented the TAI, Mumbai Unit for choice of the topic and organizing the international conference as it is an important topic of current interest to the textile trade and industry. Knowledge Sharing and Informative technical sessions The international conference organized with two technical sessions and one panel discussion. A summary of the proceedings is described below under the head of the name of the eminent speakers: 1.Mr. Ullhas Nimkar, Chairman, NimkarTek Technical Services Pvt. Ltd. presented a paper on “Understanding Sustainability and Circularity in the Textile Value Chain”. With his vast exposure to national and international ecosystem in the context of the theme of the conference, he described in lucid terms the significance of circularity and sustainability in textile value chain. He took various cases in the recycling of waste and development of sustainable fibres which are beneficial to the ecology and environment management. 2.Mr. Mayank Mody, Director, Mody Linen Fibre Pvt. Ltd; and Dr. G. S. Nadiger, General Secretary, Non-Conventional Fibres Association made the presentation on “Sustainability in Textile Fibres”. Presentation highlighted the role of non- conventional fibres as supplementary raw material base to be harnessed to address some of the key aspects of circularity and sustainability. Keeping the potential of these fibres, the use of them as an additional source of raw material to supplement the needs of the textile industry is an important step in sustainable development. The nonconventional fibres originate from three sources: namely plant, animal, and manmade routes. However, the presentation focused on the fibres from plant origin. Authors emphasized the developmental activities taken up jointly by Nonconventional Fibre Association (NCFA) and Mody Linen Pvt Ltd. Continuing the presentation, advantages of fibres such as banana, sisal, flax, bamboo, hemp, and screw pine fibres. Among the animal fibres, it was listed that the wild silks such as Eri, Muga and Taser along with pashmina are very important from Indian context. 3.Mr. Shiladitya K. Joshi, Deputy General Manager - Product & Marketing, Truetzschler India Private Limited, made the presentation on “Truetzschler’s Approach towards Sustainability”. As one of the leading machinery manufacturers globally, presentation focused on machineries required for recycling of the textile/fibres to address circularity. He informed the appropriate machines and technology available for the recycling of different types of reclaimed textiles towards sustainability. 4.Mr. Prashant M. Pote, Customer Relations Management Manager, India, bluesign technologies ag made the presentation on “bluesign ® Solutions for Sustainability & Circularity”. The speaker discussed the scope of the ecolabel “Bluesign” with four tiers of achieving the sustainability. The tiers included people (Consumer Safety and Occupational Safety); Environment (Water Emission, Air Emission, Wast & Soil); Resources (Energy, Water, Chemicals, Raw Materials including bench Marking) and Blue Sign System (Risk minimization, Reduction of impacts, Protection of people and environment & Resource productivity). In achieving the approval of ‘bluesign’ labelling, role of testing in the entire lifecycle process as the important step was highlighted in establishing the ecofriendly features of the process/materials involved. 5. Mr. Umasankar Sinha Mahapatra, Managing Director, Pulcra Chemicals India Pvt. Ltd. made the presentation on “Sustainable Wet Processing of Textiles”. Speaker highlighted the scope and goal of establishing the circularity and sustainability in the textile value chain while illustrating the developmental work done by M/s Pulcra Chemicals India Pvt Limited. He informed Fashion & textile industry in one of the top manufacturing sectors in terms of its negative environmental footprints. There is an immediate need to adopt more sustainable practices to make it safer to the consumers and to the environment. Various material innovations are happening in sustainable fibers, but unless those are processed using sustainable processing chemicals, it’s not complete. Textile processing chemicals can be categorized in two buckets: a. EcoLogical Textile Products and b. EcoNomical Textile Processes. In case of EcoLogical textile products, it is produced from renewable sources, mostly biodegradable, recycled and non/less toxic. In case of EcoNomical Textile Processes, it helps to reduce resource (water, energy & time) intensity of the manufacturing process. Processing chemicals play a vital role in both these categories. Product designing plays a big role in making products safe for use by consumers, during service life (low temp washing, quick drying) and at end of life (easy to recycle/safe disposal). Various biobased/biodegradable functional finishes are available to improve product features, such as thermal regulations, moisture management, safer DWR and stain release. Health & hygiene of wearers can be improved by using performance finishing such as plant-based antimicrobial, skin moisturizing finishes etc. There are use cases of adopting pro- biotics and CBD based products in textiles. Case studies of some of these products and processes are available from Pulcra Chemicals and Devan Chemicals (part of Pulcra Group). Breviol DNV is a sustainable dyeing technology for Indigo and/or Sulphur dyed Denim which reduces water and dyes consumption along with making the effluent much cleaner than traditional dyeing process. Sustineri coloring technology is revolutionary single bath pretreatment and dyeing technology which can reduce water, steam, and electricity consumption up to 60% for 100% cotton and Polyester/Cotton fabrics. Many innovations happening in processing equipment as well which can help making wet processing more sustainable. Some of these new technologies are disruptive in nature making use of spray, plasma, laser, ultrasonic etc. 6.Dr. Ratnakar R. Mahajan, Regional Technical Manager, Maccaferri Environmental Solutions Pvt. Ltd. made the presentation on “Nurturing the World of tomorrow using Geosynthetics”. The speaker discussed the importance of geosynthetics in various infrastructure projects and its impact on environmental aspects. While describing various projects, the highlights of the activities of the organization over a period were narrated by the speaker. 7. Mr. Ranga Nathan NS, Vice President – Head of Customer Engagement, TextileGenesis made the presentation on “Why Traceability has become top-priority for Fashion brands”. The presentation highlighted the importance of traceability in the context of sustainability and circularity. The speaker informed the role and contribution of TextileGenesis in the context of Life Cycle Assessment/impact in the value chain right from raw material to finished goods. 8. Dr. Ajay Ranka, Chairman and Managing Director, Zydex Group made the presentation on “Farm & Forest Sustainability for Organic Fibre Production – Profitable one crop transition”. In his presentation, he informed that today, India is the largest organic cotton grower in the world, accounting 50% of global share but represent less than 1% of total cotton produce. The process of conversion of conventional farms to organic remains financially unfeasible for most farmers, despite various benefits. During transition, yields drop significantly leading to losses to farmers, thereby conversions become a challenge. As an acceptable solution to organic farming, the speaker highlighted the developments made in their organization. He informed that Zydex has developed Zytonic Soil amendment technology platform, inoculated with mycorrhiza and different microbial like NPK consortia, which help for faster conversion of soil to organic farms. It addresses all the aspects of physical, biological, and chemical properties of farm soils. This is a biodegradable and biology boosting technology. It makes soils soft and reduces crusting, thereby improving germination and helps in faster transition to organic farms. He also conveyed that there are case studies carried out by the company in adapting them for harnessing positive results. A positive note on the developments highlighted include Zydex with its innovative Zytonic technology is collaborating with stakeholder to revive cotton land, making farming processes sustainable and organic all in a single crop cycle. There was good interaction by speakers with the delegates during question answer sessions resulting thereon effective delivery of the though sharing on the theme of conference “Sustainability and Circularity”. Panel Discussion on “Achieving the UN Sustainable Development Goals (UN-SDGs)” The third technical session was Panel Discussion with the theme “Achieving the UN Sustainable Development Goals (UN-SDGs)”. The panel discussion was moderated by Ms. Chandrima Chatterjee, Secretary General, CITI. The Panel consisted of Mr. Rahul Bhajekar, Managing Director, Global Organic Textile Standard (GOTS), Mr. Shyamlal Patnaik, Joint President - Head Specialty Products, Grasim Industries Ltd., Mr. Kapil Pathare, Director, VIP Clothing Ltd., Mr. M. Gunasekaran, Technical Marketing & Development Manager (South Asia), Lenzing Fibers, Mr. Avik Banerjee, Material and Components, H&M Group, Hennes & Mauritz India Pvt. Ltd., Mr. Srinivasan Krishnamurthy, Raw Material Specialist, IKEA Services (India) Pvt. Ltd. Ms. Chandrima Chatterjee made her initial remarks on the relevance of the theme and proposed appropriate queries to each panel member from the point of view of the sustainable development goals and their share of experience/contribution of the organization in contributing to the Indian/international perspectives. While responding to the moderator’s specific query, each panel member responded to bring home the relevant goals of the SDG interfacing Sustainability and circularity in relation to textile and clothing industry. The strategies of program for attaining the results under SDGs from different perspectives and documentation with digitalization, Organic Certification, Generation of sustainability report on annual basis as corporate philosophy, Value Chain, Raw material flow in the ecology and environment while achieving the efficiency etc. were discussed. The panel discussion brought home the salient features of SDGs collating to circularity in achieving sustainability through the thematic delivery by panel members and interaction by the delegates. Mr. Haresh B. Parekh, Hon. Secretary, TAI, Mumbai Unit proposed a vote of the thanks to everyone who have contributed for the success of the international conference which was attended by around 275 participants.
Source: Fibre2fashion
A six per cent interest subsidy for modernisation of spinning segment, and increase in the special capacity subsidy from 15 per cent to 25 per cent for the technical textiles, MMF yarn produced from recycled products, MMF fabric and apparel manufacturing in Tamil Nadu are among a slew of measures announced by Thangam Thennarasu, the state’s minister of finance in the assembly today. A substantial amount of ₹1,683 crore has been earmarked for the Virudhunagar PM MITRA park. In addition, ₹25 crore has been allotted to set up ‘Research and Business Development Fund for Technical Textiles and Man-made Fibre’, and another ₹25 crore is set aside in the budget for apparel clusters in Virudhunagar, Pudukottai, and Kanyakumari, a silk cluster in Salem, and a yarn cluster in Namakkal. The state budget for 2024-25 has also allocated ₹20 crore for 10 mini textile parks in the districts of Karur, Erode and Virudhunagar. The Southern India Mills’ Association (SIMA) has appreciated the budget announced today and thanked chief minister MK Stalin, finance minister Thennarasu, and minister of handlooms and textiles R Gandhi for incorporating various suggestions given by the organisation. SIMA chairman Dr. SK Sundararaman said the six per cent interest subsidy for modernisation of the spinning segment with a budget outlay of ₹500 crore is an attractive announcement which would greatly bring down the capital cost and encourage the spinning segment to modernise the old machines. Stating that technical textiles and MMF manufacturing and recycled products manufacturing are the future growth engines and highly demanded by the global brands, Dr. Sundararaman said the increase in capital subsidy to 25 per cent is a very big encouragement for investors from the state. He hoped that the increase in subsidy would also attract investments from different states and abroad. The allocation of ₹1,683 crore for Virudhunagar PM MITRA park is expected to generate employment for two lakh people, while the estimated investment of ₹800 crore from Salem Textile Park is expected to generate jobs for 8,000 people, SIMA chairman said in a press release. Various allotments for apparel, silk and yarn clusters along with the research and business development fund “will greatly enhance the competitiveness, attract investment and create rural jobs especially for women,” the press release said. Further, a budget outlay of ₹227 crore to establish integrated complex comprising exhibition halls, design and incubation centres and commercial buildings at Chennai, in an area of four lakh sq.ft., will greatly help the handloom and handicrafts sectors, the release added. “The 10 per cent payroll subsidy extended for new units employing 500 or more women physically challenged and transgenders people of Tamil Nadu domicile would give enormous job opportunities for the people of state,” SIMA said. “A vision of generating additional 100 billion units of renewable energy by 2030 is yet another fillip to the state budget and right direction to mitigate the carbon footprint and meet the global sustainability goal. The announcement of conducting a global start up summit during January 2025 would attract the eyes of the global investors and also throw opportunities for boosting exports,” it added.
Source: Fibre2fashion
Synopsis India's trade deficit narrows and services exports increase, prompting economists to lower the current account deficit (CAD) estimates for FY24. Capital inflows are expected to improve, but the rupee may not strengthen as the central bank aims to boost reserves. April-January period sees lower net services exports and improved FDI flows. Mumbai: A narrower-than-expected trade deficit and higher services exports in January have prompted economists to scale down the current account deficit (CAD) estimates for FY24. Capital inflows through both foreign direct investment (FDI) and portfolio flows are expected to improve during the rest of the fiscal. But potentially higher foreign exchange inflows may not mean a stronger rupee as the central bank could take this opportunity to shore up its reserves. Capital inflows through both foreign direct investment (FDI) and portfolio flows are expected to improve during the rest of the fiscal. But potentially higher foreign exchange inflows may not mean a stronger rupee as the central bank could take this opportunity to shore up its reserves. India's merchandise trade deficit narrowed to a nine-month low of $17.5 billion in January, compared with $19.8 billion in December. Services surplus surged to $16.8 billion in January versus a $16 billion surplus in December.
Source: The Economic Times
In the last decade, the Narendra Modi government has redesigned India’s economic structure, almost as much as it has the country’s mode of governance and the political landscape. The change is deeper than what’s facilely noticed. The question is whether this is for the long-term good of the country, or a recipe for internal conflicts, and sub-optimal or stunted economic growth for long years ahead. While governance and policy-making have become more centralised under Modi’s watch and directions, resources and profits have shifted from the numerically larger “households” and the informal sector to the dominant formal players and, to some extent, from the states to the Centre. At the same time, large sections of low-income population are made to feel the state’s care like never before, with improved access to the basic necessities. The rates of growth of Budget spending on health and education, critical to the emancipation of the poor, however, haven’t risen above trend. Joblessness and a protracted income crisis in the rural sector betray the economy’s travails, and the bouts of inflation the decline in its growth capacity. Digital transactions have proliferated as soon as they are born. However, cash in circulation (CIC) also continued to grow not just in absolute term, but also as a fraction of the gross domestic product (GDP). The material hit that was delivered to (an alreadyfaltering) economy via abrupt cancellation of the legal-tender status of 86% of CIC in November 2016 has proven to be without any counterbalancing gains, or closing of the avenues for black money generation. A large part of CIC is now seemingly hoarded. For sure, the Modi government has been a diligent steward of the macro-economic fundamentals. It refused to be spendthrift, even during the testing times of the pandemic. In stark contrast to the developed economies, the consumption stimulus by India during the Covid period was judicious, helping avoid a precipitous fiscal slide. The handouts, notably free ration to a mammoth pool of 810 million people, have been targetted and efficacious, and the post-pandemic fiscal correction sharp, credible and qualitatively superior. The Modi 1.0 government resolved the legacy “twin-balance sheet problem” expeditiously, with the support of the Reserve Bank of India. Both the corporate sector and banks are now deleveraged, and face criticism for undue caution and risk aversion. Nevertheless, the strategy that followed this resuscitation of the principal players of the economy – use of enhanced public investments to lure private capital into greenfield projects – hasn’t produced quick, conspicuous results. A deep corporate tax cut, handed out as early as in financial year 2017-2018, wasn’t enough for the large firms to take the plunge. Capacity utilisation has slowly crept up in some sectors over recent quarters, setting the stage for a new investment cycle, but signs of this are yet feeble. Of course, the real estate sector had regained momentum pretty soon after the pandemic. Labour-intensive exports took a beating, while shipments of tech-driven items like electronic goods jumped. Export destinations agilely shifted. Services exports stayed buoyant, but the country is yet to switch to more value-added services. A clutch of reforms has been unveiled by the two Modi governments to bolster the productive capacity of the economy, and raise its (reduced) potential growth rate. Besides the Goods and Service Tax and the Insolvency and Bankruptcy Code, coal and seaport sectors have seen path-breaking changes that removed historical policy barriers to private investments. While these are beginning to make an impact, the GST needs structural tweaks to bring about the desired “output effect,” and incremental economic growth. Also, the insolvency process has to be liberated from the sloth and leniency set in after the initial success in resolving a few large legacy cases. The government used budgetary and borrowed capital to accelerate fixed asset creation in the railways sector, and build freight corridors. The pace of addition of the national highways network has been much faster in the Modi regime, although private risk capital has been stubbornly aloof. However, as the NHAI’s debt soared, fresh borrowings by the agency was temporarily ceased, with bigger (unsustainable) reliance on budget funds. The Centre’s budget capex has seen a sharp jump, but the overall rise in public investments has been less steeper, as states ceded some ground. The assorted frameworks for pooling in patient capital to fund infrastructure projects – like DFI , NIIF and others – are yet to make a big impact. Monetisation of public assets have started, and could potentially reduce the reliance on taxpayers’ money and capital markets for financing of infrastructure to an extent. The Modi regime saw rapid rise in renewable energy (non-fossil fuel) capacity, in sync with India’s pledge to be a net-zero emitter by 2070. The intractable payment issues that have made the power sector unattractive for investors have been mitigated. However, the government could not keep the promise of reducing reliance on imports for crude oil (it has risen in fact), and domestic gas production has stagnated. India is eyeing early-mover advantage to realise the ambition of being a “global hub” of Green Hydrogen and syngas ventures, and a shift to electric mobility with associated infrastructure. Between 2014 and 2022, India jumped five notches to become the 5th largest national economy in terms of nominal GDP in dollar terms and will have likely assumed the third slot by 2027 (FY28). Though this would seem a remarkable climb up the ladder, the fact is the GDP expanded at a significantly lower annual average rate of 5.9% in Modi’s ten years, compared to 8.1% in the previous decade (UPA-II and II). This was, of course, partly due to the interruption caused by the pandemic.
Source: Financial Express
India must be prepared to open its markets for goods and services much more for a successful conclusion of the India-UK Free Trade Agreement (FTA), sources in the UK government have said. “India’s tariffs on goods are very high. The UK believes that India has to do much more in terms of bringing them down and opening its markets. The UK already is very open,” a UK official said not wanting to be quoted. While the UK has recently shown huge interest in expediting the proposed FTA, possibly wanting it concluded before the elections in both countries, sending the ball in India’s court could indicate the country’s limited flexibility on key issues. “The India-UK FTA can be sealed in as less as three weeks provided India opens up more. There are economic and political ambitions on both sides,” the official added. The UK has been pressing for deep duty-cuts on items such as Scotch and automobiles, where import duties in India are as high as 150 per cent and 100 per cent (70 per cent for vehicles up to $40,000) respectively. It also wants liberalisation of financial and legal services and strong IPR rules to give additional protection to pharmaceutical majors. New Delhi, however, holds the view that the UK’s tariffs on goods are low because of the attributes of the country’s economy as it benefits from the low-duty imports. “The UK must be ready to give additional benefits to India in the FTA such as lowering tariffs for certain items such as textiles where duties are high, liberalisation of non-immigrant visas and a social security totalisation agreement,” an Indian industry source said. Recently, Commerce Secretary Sunil Barthwal told the media that the country must safeguard its interests and make substantial gains in the FTA negotiations with the UK.“India should commercially gain out of it (India-UK FTA) and we should also be able to safeguard the interest of our farmers, and (protect) goods covered under PLI (production linked incentive) scheme. So, we are there to see that the deal is a fair deal,” Commerce Secretary Sunil Barthwal said. However, the UK does not seem too comfortable offering big concessions to Indian workers, whether in terms of liberalisation of work visas or a social security agreement. A social security agreement could help Indian professionals working temporarily in the UK save up to millions of pounds every year in compulsory contributions for pension that they would not be able to enjoy as their work tenure would end much earlier. The two countries are optimistic about bilateral trade in goods and services doubling to $100 billion by 2030 if the FTA is implemented soon. Earlier this month, a UK trade delegation led by Douglas McNeill, chief economic advisor to UK PM Rishi Sunak, was in New Delhi, meeting top decision makers, including Finance Minister Nirmala Sitharaman, Commerce & Industry Minister Piyush Goyal and senor officials in the Prime Minister’s Office, looking for possible breakthrough in sticky issues.
Source: The Hindu
President Bangladesh is gaining capacity to export high value garments which is helping to increase the volume of exports. Though the exports of garments to Europe, US market have decreased, however, with the efforts of BGMEA, exports to non-traditional markets are increasing as expected. If this trend continues, by 2030 it will be possible to take the size of garment exports to $100 billion. Undoubtedly, continued policy support is essential for this. BGMEA President said these things in a press conference organized on the occasion of the inauguration of 'Bangladesh Heritage Festival' at BGMEA complex on Sunday (February 18). BGMEA President Faruque Hassan said that even if fair price of garments is not available from foreign buyers, it will not have a negative impact on the construction of green factories. He said that the garment owners are building green factories by thinking about the damage to the environment and future generations. Although the garment factories of Bangladesh are much safer than other countries, there is a negative campaign going on in the international media. He wants the cooperation of the media in the press conference to find the reason for this negative campaign. At that time, he requested the Prime Minister to look into the fact that the export statistics do not match with the export data. In 2026, Bangladesh will come out of the list of least developed countries and become a developing country. After that, according to the rules, Bangladesh will get three years of duty-free facility on exports. However, the stakeholders have been trying for a long time to get this benefit until 2032. BGMEA President said, in the meantime, Australia and UK have been assured of duty-free facilities for an extended period. The latest discussion of the World Trade Organization has also received a positive response. The BGMEA President also said that bilateral agreements with various countries to get duty-free facilities and GSP Plus in the long term and to improve the quality of life of workers are being worked on. BGMEA has organized ‘Bangladesh Heritage Festival’ on February 18-20 to highlight the heritage and culture of Bangladesh through branding. This event has been organized with the ambassadors of different countries, buyer-brand representatives, domestic product entrepreneurs and industry participants to seize the opportunities of our country's heritage and culture in the global market.
Source: Textile Today
BGMEA has taken the initiative to highlight the country's tradition, history and culture at home and abroad. For that purpose, BGMEA has organized 'Bangladesh Heritage Festival 2024'. Through this, the entrepreneurs of this sector want to retain the country's tradition, as well as seize its unique potential in export trade. State Minister for Commerce Ahsan Islam Titu, MP, inaugurated the Heritage Festival on the 2nd floor of BGMEA Complex on (February 18. With the intention of celebrating the rich culture and heritage of Bangladesh for the first time under the initiative of BGMEA, this 3-day long 'Bangladesh Heritage Festival' has been organized at the BGMEA Complex on February 18-20. In the opening ceremony, there were valuable talks by special guests about the heritage, culture of Bangladesh and traditional Bangladeshi dance performance. Also, as a part of the cultural festival, the painting exhibition started from 10 am on the ground floor of this building in an attempt to highlight the country in colors. 40 stalls are participating in the event venue to showcase local products. Among these there will also be Bengal's traditional pitha stalls. Also during the event, fair and exhibition of local products will be held from 10 am to 8 pm on these 3 days. Product entrepreneurs will get networking opportunities. BGMEA President Faruque Hassan said, you will be happy to know that several projects have been taken up in BGMEA with the help of the government to create opportunities for the export of Bangladeshi garments in combination of Jamdani/Muslin/Textile by mixing culture and tradition with fashion. Through this event our rich culture and hundreds of years of tradition like Jamdani, Muslin, Khadi, and Manipuri Textiles, Pottery (Teppa Dolls, Clay Jewelry, Leather Goods, Jute Goods, Natural Dyes, Hand Printed Sarees, Hobby Bones, and Terracotta) will be showcased. Featuring Handicrafts, Pitha, Nakshi Kantha, Jute Products, Cane Products, Shitalpati and 5th World Heritage Recognized Rickshaw Painting and many more. I believe, BGMEA will reflect the commitment of the apparel industry towards an ecofriendly future through this arrangement, he added. The special aspects of this event are fashion shows, cultural programs, exhibitions and presentation of arts and crafts, which make Bangladesh unique. Throughout the festival, visitors will have the opportunity to mingle with the diverse cultural traditions of Bangladesh. The opening ceremony was attended by Charles Whiteley, Ambassador of the European Union and Head of Delegation to Bangladesh, Francisco de Asis Benitez Salas, Ambassador of Spain to Bangladesh, renowned artists Mohammad Yunus and Gulshan Hossain.
Source: Textile Today
Amid ongoing disruptions in the Red Sea region, some Indian general insurers have cancelled their policy covers whereas others have hiked premiums for voyages involving Red Sea shipments and are looking at more such increases if the attacks continue to persist. Insurers such as TATA AIG Insurance have sent notices of cancellation for war, terrorism, piracy and strike covers. Others such as ICICI Lombard and Bajaj Allianz General said that while they haven’t pulled out, they are seeing an increase in premiums is specific policies and covers. Deepak Prinjha, Chief Technical Officer, Commercial – Underwriting, Royal Sundaram General said that a few insurers have started charging an additional premium for bulk cargo transiting through this route. “Our company and the reinsurance industry have adopted a ‘wait and watch’ strategy. If the attacks continue, each insurer may charge a higher marine premium for all cargos, including bulk cargo,” he added. The Red Sea is one of the busiest sea routes, especially for Indian logistics. The region has been seeing attacks on commercial ships by armed individuals. If the situation persists, insurers might eventually refrain from providing marine cover for this route, or there may be restrictions imposed by reinsurers and then insurers which will impact the overall marine business, industry players said. Israeli and other allied merchant ships travelling through the Suez Canal and areas such as the Indian Ocean, Gulf of Aden, Southern Red Sea, and Cabo Delgado are facing attacks by Yemen-based Houthis and Somalian pirates, acting in solidarity with Gaza amid the ongoing Israeli-Palestine war. The route is usually used by Indian ships going to or coming from Europe and the US East Coast, and some of these ships are now being forced to go around southern Africa or take alternative routes, increasing both travel risks and time for shipments. “Several insurers have already raised their war insurance premiums by 10X, and some are refusing coverage for shipments passing through the Red Sea corridor. However, for existing policies such as the STOP Policy and others, insurers are required to provide notice to policyholders with at least a 7-day timeframe to withdraw coverage,” said Amit Agarwal, CEO, Howden India, adding that if the attacks persist, premiums could rise by 30-40 per cent. However, this does not apply to insured shipments that are already in transit in the area or simply passing through, insurers said adding that measures taken by world government, such as deploying warships, could help the situation. The Indian government, earlier this month, sensitised banks and insurance companies to continue providing trade finance and insurance support to exporters trading via the Red Sea. “We may witness a stabilisation of price hikes as normalcy returns. However, the attacks will undoubtedly have a long-term impact on pricing,” Agarwal said. Global insurers have increased premiums by as much as 1 per cent, and are now underwriting these covers at about 0.10-0.15 per cent of the value of the ship or cargo as against the earlier average of 0.015-0.020 per cent. The highest impact is being felt in bulk segments such as crude oil, which are controlled by reinsurers, industry players said. Even so, shipping line trade passing through the region has dropped tremendously with ships opting for alternative routes, owing to which insurers’ exposure to the region has also dipped and the impact has been controlled, they said, adding that they don’t expect a ‘knee jerk’ reaction from reinsurers. “Currently we are evaluating the situation and are in constant discussion with our reinsurers and shall take appropriate action based on their advice,” said TA Ramalingam, Chief Technical Officer, Bajaj Allianz General Insurance. A senior official at GIC Re said reinsurers are closely monitoring developments and exposures and responding as required, including charging prevalent higher rates due to the war like developments. In December 2023, SwissRe too had said that while there are disruptions, the impact has been so far manageable through charging higher premiums.
Source: The Hindu
