INTERNATIONAL
The District Industries Centre, Department of Handlooms and Textiles, Lead Bank and RUDSET Institute have decided to organise a one-day mega job fair for both skilled and unskilled workers to work in the textile and garment sectors in the district. Over 3,500 unemployed youth, particularly women, are expected to be able to secure employment during the job fair. H. Ramakrishne Gowda, Joint Director, District Industries Centre and Janardhan, Deputy Director, Department of Handlooms and Textiles told The Hindu on Monday that over 15 textile industries and a couple of garment factories have been roped in to participate in the job fair. The job fair is expected to be held in the last week of October and aspirants can register their names with the District Industries Centre or Department of Handlooms and Textiles or with RUDSET Institute before October 20.
Thousands of youth, particularly women, are being imparted training in different areas, including textiles, by different government agencies and departments, including women and child welfare and social welfare departments. The District Industries Centre wanted to ensure that the unemployed youth, after the training, do not remain idle and hence it decided to organise the job fair, Mr. Gowda said. Mr. Gowda said that several textile and garment units are in dire need of workforce and hence he had convened a meeting with different departments to provide a platform for the industries to get manpower and at the same time to help the unemployed youth to get employment. Youngsters from across the State can participate in the job fair, he said. Over 15 textile industries and garment factories have been roped in to participate in the fair.
SOURCE: The Hindu Business Line
Senior BJP leader and MP from Bhadohi Virendra Singh Mast said that a textile university will soon come up on 23-acre land purchased by Indian Institute of Carpet Technology (IICT) at Piparish in Bhadohi. Singh, who formally inaugurated the 32nd India Carpet Expo at Sampurnanand Sanskrit University (SSU) ground on Monday, told reporters that although textile-related work, including design creation and development, research and development and others are offered at institute, there was a need for a textile university for research along with manufacture of all types of clothes with advanced mechanisms. The four-day carpet expo is being organized by Carpet Export Promotion Council (CEPC) under the aegis of Union government. This is the 12th expo to be held in the city.
SOURCE: The Times of India
The organizers of the Yarn, Fabric & Accessories (YFA) 2016 trade show, have joined hands with SRTEPC, one of the oldest export promotion councils in India for the promotion of Indian man-made fibre and textiles to offer a 15% subsidy to SRTEPC members who want to exhibit at YFA 2016. YFA 2016 will be held from November 23-26, 2016. This subsidy to SRTEPC members will be over and above the 60-90% subsidy offered by National Small Industries Corporation (NSIC) to YFA 2016 exhibitors. NSIC, a government of India undertaking offers the subsidy under various categories of its Marketing Assistance Scheme. With just under two months to go, YFA 2016 has attracted over 130 companies from India and abroad, which also includes a Chinese Pavilion, as against 100 exhibitors in the 2015 edition. A special highlight of YFA 2016 is the Denim Zone, which will see top 20 Indian denim fabric makers exhibiting their denim innovations.
YFA 2016 aims to redefine the way fibres, yarns, fabrics and apparel accessories are sourced and bring renowned suppliers from the these four segments closer to buyers and also offer buyers a one-stop place to source all their requirements. Founder duo of Vision Communications, Abhishek Sharma and Ankur Goel say, “Our aim is to bring producers of world class and multiple varieties of value added fibers, yarns, fabrics and also garment accessories closer to the end-users in Delhi and its surrounding areas through YFA 2016.” To make this happen we have tied up with all leading export promotion councils and associations of India like NITMA, TEXPROCIL, SRTEPC, PDEXCIL, AEPC, CMAI, FOHMA, UPAEA, NAEC, TAI, NITRA, NSIC & PTA Users Association.
SOURCE: Fibre2fashion
We want to re-export imported goods to a party other than the one from whom we bought the goods. Can we get duty drawback under Section 74 of the Customs Act, 1962?
Yes. CBEC circular no. 72/2002-Cus dated November 1, 2002 clarifies that "neither Section 74 nor relevant Rule or Customs Notification require that for the purpose of availing drawback under Section 74 of Customs Act, the goods should be re-exported back to the same supplier or that such re-export should only take place from the port through which the goods were imported earlier", and that "so long as the conditions specified in Section 74 of Customs Act, Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995 and relevant notifications issued under Section 74 are fulfilled, drawback under Section 74 should be allowed on merits without insisting on re-export of goods to the same supplier or that the re-export should take place from the same port".
Our foreign buyer wants to send raw materials to us free of charge for toll manufacturing, i.e. job-work. The contract is to carry on this work regularly for a year. We are considering use of exemption notification 32/97-Cus dated April 1, 1997. This notification requires us to follow the procedures laid down in Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2016. Under these rules, do we have to give intimation every time we import? Secondly, can we use our own raw materials also during job-work?
The Rules you refer to allow you to give a single intimation covering your requirement for a year. CBEC Circular no. 18/2004-Cus dated February 20, 2004 clarifies that use of indigenous materials in jobbing work will not take the processes undertaken out of "job-work" or jobbing.
We have obtained EPGG authorisation. When we export against its export obligation (EO), can we also claim duty drawback?
Yes. As per Para 5.04(d) of FTP, "Shipments under Advance Authorisation, DFIA, Drawback scheme or reward schemes under Chapter 3 of FTP would also count for fulfilment of EO under EPCG Scheme".
We have released an advertisement for recruitment of staff. Can we take Cenvat Credit of service tax charged by the advertising agency?
Yes. The definition of 'input services' at Rule 2 (l) of Cenvat Credit Rules, 2004 includes services used in relation to "advertising" as well as "recruitment".
We refer to your article "DGFT's sloppy and arbitrary decisions", wherein you have mentioned that denial of TED refund on deemed exports is an unnecessary, arbitrary and illegal restriction. What options do we have, as our claim is held up on the grounds that we have paid TED by utilising our Cenvat Credit balance?
The DGFT has now issued Trade Notice no. 17/2016 dated September 22, 2016, allowing TED refund where the duty has been paid using Cenvat Credit. So this issue is now settled and you can ask JDGFT to grant your claim on the basis of the Trade Notice.
SOURCE: The Business Standard
Growth in India’s manufacturing activity eased in September on moderate growth in order books, according to the widely tracked Nikkei purchasing managers’ index (PMI) survey. Inflation edged higher, prompting the author of the report, Pollyanna De Lima, to say that the Reserve Bank of India (RBI) might ease monetary stance in 2016. She, however, did not clarify whether the central bank will do so on Tuesday or in its December review. After growing at the fastest clip in 13 months in August, PMI fell to 52.1 in September from 52.6 in August. The 50-point mark separates expansion from contraction. However, employment generated by manufacturers continued to be only marginal.
Manufacturing PMI moderates in Sept One factor contributing to the slowdown in the sector was a softer increase in new business inflows, which had in August expanded at the quickest pace since December 2014. While improved client demand supported the upswing in order books, growth was reportedly hampered by strong competition for new work. “The Indian manufacturing industry lost momentum in September, as the growth of new orders eased from August’s 20-month high. However, output is still rising at a decent clip,” said De Lima. According to her, the manufacturing sector could deliver a stronger contribution to gross domestic product (GDP) growth in the second quarter, as average PMI rose to 53.6 points during July-September, against 51.4 in April-June to 53.6. GDP grew a five-quarter low of 7.1 per cent in the first quarter of the current financial year. However, according to the PMI report, based on a survey of 500 private-sector companies, new export orders for Indian-made goods expanded markedly in September, increasing at the quickest rate in 14 months.
Manufacturing output in India continued to increase in September, marking a nine-month sequence of growth. However, the rate of expansion eased since August and was relatively modest. In terms of official data, manufacturing in volume terms in the index of industrial production fell by 3.4 per cent in July. In the first four months, manufacturing index contracted 1.4 per cent, according to the latest available data. Average purchase costs increased at a faster pace in September, but one that was weak compared to its long-run trend. The main item reported to be up in price was steel. Data implied that manufacturers attempted to protect profit margins as output charges were raised further. Despite ticking higher, the rate of inflation was historically muted. Elsewhere, outstanding business volumes increased. Backlogs also continued to rise for the fourth straight month, which is blamed on delayed payments from clients. Although inflation edged higher, it remains weak by historical standards and might indicate the RBI’s loosening monetary policy in 2016, Lima said. The monetary policy review by RBI is scheduled on Tuesday and will be the first by the newly set-up Monetary Policy Committee, chaired by the new RBI Governor, Urjit Patel.
SOURCE: The Business Standard
Fitch Ratings today projected Indian economy to grow at a slower pace of 7.4 per cent in the current fiscal and touch 8 per cent growth only in 2018-19, as it expects the benefits of reforms and impact of monetary easing to kick in with a lag. The US-based rating agency projected Reserve Bank of India (RBI) lowering interest rates by 0.25 per cent before end of 2016, followed by another rate cut in 2017. Fitch Ratings’ latest bi-monthly Global Economic Outlook (GEO) report said “We forecast GDP growth to accelerate gradually from 7.4 per cent in FY17 (year ending March 2017) to 8.0 per cent in FY19”. It projected the growth to be at 7.9 per cent in 2017-18. The Indian economy grew 7.6 per cent last year. “Public-sector wage hikes, lagged impact of monetary policy easing, and a better monsoon season than the previous two years, should support growth in the near-term, while decent progress on structural reforms – including the recent landmark passage of the Goods and Services Tax in parliament – should facilitate a turnaround in investment over the medium term,” Fitch said. It said its forecasts imply that India will remain by a wide margin the fastest growing country among Fitch20 economies.
GDP growth fell to 7.1 per cent in Q2 from 7.9 per cent Q1. This was lower than the 7.6 per cent estimated in the July Global Economic Outlook (GEO) report. “Persistent investment weakness and soft industrial production suggest the shortfall was not entirely due to short-term volatility in the data,” Fitch said. It forecasted GDP growth to accelerate gradually from 7.4 per cent in FY17 (year ending March 2017) to 8.0 per cent in FY19. Private consumption growth was 6.7 per cent in Q2 and is expected to reach 8.8 per cent in FY18 due to increasing real disposable income growth. In contrast, gross fixed capital formation remained very weak in Q2 of FY16, declining by 3.1 per cent year-on-year. “Nevertheless, we forecast a sharp pick-up in FY18 investment growth to 6.3 per cent. Strong export growth also continued in Q216, a rebound from the contraction in 2015. “Meanwhile, import dynamics remained weak and thus net exports will have a 1.6 percentage point growth contribution in FY17 before moderating over the medium-term,” Fitch said. It said that RBI, led by its new Governor Urjit Patel, is expected to cut its policy rate by 25 basis points to 6.25 per cent before the end of 2016, followed by one more rate cut in 2017. Headline consumer inflation was 5.1 per cent in August 2016, a 1 percentage point drop compared to the previous month. “We forecast inflation to start gradually increasing to 5.5 per cent by end-2016, 5.8 per cent by end-2017 and 6.0 per cent by end-2018, the upper end of the 4 per cent plus or minus 2 per cent medium-term inflation target range,” it added.
SOURCE: The Financial Express
Ratings firm Crisil on Monday predicted a strong boost to India’s domestic consumption in 2016-17 led by implementation of 7th pay panel’s recommendations, with reforms like the Goods and Services Tax (GST) to benefit the uptick. “Consumption growth will be buoyant in 2016-17. One Rank One Pension (OROP) and 7th Pay Commission will give a boost to domestic consumption this year and reforms like GST will further benefit India’s consumption story,” Pawan Agrawal, Chief Analytical Officer, Crisil said. “So far this year we have seen India’s story led by strong domestic consumption in auto-ancillaries, packaging and pharmaceutical sectors. What is noticeable is that we expect the rural demand to pick up in the second half of the current fiscal,” Agrawal told reporters during a teleconference. From industry perspective, consumption related companies are expected to grow. The growth will now be supplemented by rural India, he said. For the remaining half of the fiscal, he said the credit profile will further improve because of a healthy demand, improvement in liquidity profile and stabilisation of metal prices. Also, the pace of implementation of reforms is a key factor in medium to long term that the rating agency will be monitoring, he said.
Crisil emphasised that sustainability will continue to be critical as there were hurdles like investment in infrastructure, slow transmission of Reserve Bank of India rate cuts from banks to customers that needed to be looked into. “Weak demand still persisted in the real estate and construction sector. Banking sector too still seem to be bogged down by bad loans and for this fiscal, the level of non-performing assets will remain at elevated level,” Agrawal said. “Road sector is doing better, but it will take time for it to become visible. The global environment also remains uncertain,” he said
SOURCE: The Financial Express
Trade Ministers from the five BRICS countries — Brazil, Russia, India, China, South Africa — will be in New Delhi later this month to participate in the BRICS Business Forum and discuss economic engagement in the region. The BRICS Business Council will also be simultaneously held in New Delhi on October 13-14, while the first BRICS trade fair, focussing on 20 key sectors, will be hosted in Goa. “The seven working groups in the areas of infrastructure, manufacturing, financial services, energy, green economy, skills development, agribusiness and deregulation, that have been formed under the BRICS Business Council, will engage in interactions with a view to better understand the market opportunities and build synergies,” an official release said. Intra-BRICS trade increased to $297 billion in 2014 from $281.4 billion in 2012. A major agenda of the grouping is to reform the global governance architecture which is yet to reflect the changing global scenario where the emerging economies are playing a larger role, the statement added.
SOURCE: The Hindu Business Line
Norway is hosting a mini-Ministerial meeting of about 20 World Trade Organisation (WTO) countries, which include India, the US and the EU, to work out the areas where an agreement is possible at the next full-fledged Ministerial in 2017. WTO Director-General Roberto Azevedo will also attend the mini-ministerial in Oslo, his office confirmed to BusinessLine. India, which will be represented by Commerce and Industry Minister Nirmala Sitharaman at the meet on October 21-22, will try to ensure that new issues that do not belong to the on-going Doha Round and go against its interest do not creep into the agenda, a Commerce Ministry official said. It will also focus on safeguarding its interests in the area of disciplining fisheries subsidies that many WTO members, including the US and the EU, want an agreement on next year. “While we do not expect any major outcome from the mini-ministerial, we have to be careful because developed countries have been making a case for new issues to be brought in such as labour, environment and investments,” the official said.
Although India agrees that there is a need to address the concern of over-fishing by targeting subsidies, it wants to continue with the subsidy schemes for its small and marginal fishermen which are important for their livelihood security. New Delhi also wants some discussions on its proposal to have a trade facilitation agreement on services, on the lines of the trade facilitation agreement for goods, to give a leg-up to its services sector. In the Nairobi Ministerial meet last year, there was a disagreement between many developed members and developing countries including India on the need to continue with the Doha Round which has been on for 15 years.
SOURCE: The Hindu Business Line
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 46.22 per barrel (bbl) on 30.09.2016. This was lower than the price of US$ 43.48 per bbl on previous publishing day of 29.09.2016.
In rupee terms, the price of Indian Basket increased to Rs. 3081.14 per bbl on 30.09.2016 as compared to Rs. 2893.52 per bbl on 29.09.2016. Rupee closed weaker at Rs. 66.66 per US$ on 30.09.2016 as against Rs. 66.55 per US$ on 29.09.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on September 30, 2016 (Previous trading day i.e. 29.09.2016) |
Pricing Fortnight for 01.10.2016 (Sep 14, 2016 to Sep 28, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
46.22 (43.48) |
43.95 |
|
(Rs/bbl |
3081.14 (2893.52) |
2936.30 |
|
|
Exchange Rate |
(Rs/$) |
66.66 (66.55) |
66.81 |
SOURCE: PIB
A PhD student at Nottingham Trent University is pioneering so-called ‘space cloth’, a non-woven material made from yarn that has potential as an e-textile. Lightweight Zephlinear scarf with LEDsLightweight Zephlinear scarf with LEDs Sonia Reynolds brought the idea to the university’s Advanced Textile Research Group and is further developing the fabric’s novel manufacturing process under the direction of Prof Tilak Dias and Dr Amanda Briggs-Goode, of the School of Art and Design.
Unlike traditional woven or knitted materials that are made by the interloping or interlacing of yarns, the new material – dubbed Zephlinear – is made by yarn surface entanglement. Reynolds said: “This is a real breakthrough for the textiles industry. It’s the first non-woven material made from yarn and promises major benefits for the future of clothing, and more. “Because of the material’s linear channels of yarn, it has great potential to be used as a smart textile. In particular, we believe it lends itself well to being embedded with microcapsules containing medication or scent, to either help deliver drugs to specific parts of the body or to create antibacterial and aromatic clothing. “As the material is visually different, it has potential to be used for other applications as well, such as wall coverings, in addition to clothing. “And because it’s much less labour intensive to make than knit or weave fabrics, it’s a more environmentally friendly material to produce as well.”
Reynolds presented the patent pending material the Wearable Technology Show, USA. Zephlinear was given the nickname ‘space cloth’ due to its appearance and its e-textile capabilities. According to NTU, research shows that it is strongest and most efficient when created from natural yarns such as one hundred per cent wool, hair and wool/silk mixtures, though it can also be made from synthetic yarns. Professor Dias, who leads the university’s Advanced Textiles Research Group, said: “Zephlinear is a remarkable development in an industry which is advancing at an incredible pace. “We believe it has huge potential for textiles, and we have already found that it combines well with e-textile technologies such as heated textiles or textiles with embedded LEDs. “As a fabric it is very lightweight and flexible, and it retracts back to its original shape well after it has been stretched. “We’re very much looking forward to developing the material further and feel certain that it will help provide people with smarter and more environmentally friendly clothing in the future.”
SOURCE: The Engineer
Bangladesh Bank (BB) has established the Green Transformation Fund (GTF) to accelerate sustainable growth in export oriented textile and leather sectors favourable to transformation of green economy in the country. "It has been decided to stipulate a provision for a participation agreement to be signed between Bangladesh Bank and intended ADs (Authorised Dealer) to further fortify the financing arrangement under GTF," said a BB circular on Monday. ADs have to apply in written to general manager, sustainable finance department, Bangladesh Bank, head office to enter into the agreement. ADs are advised to take necessary initiatives for entering into participation agreement under GTF immediately, according to BSS.
SOURCE: The Financial Express Bangladesh
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) joined hands with the Danish textile and fashion employer associations to launch a project called 'Step Up' to improve corporate social responsibility (CSR) and productivity in the garment industry of Bangladesh. This project is funded by DANIDA, a Denmark based development agency. Step Up will also focus on improving environmental activities in small- and medium-sized garment factories that produce apparel for Danish buyers, Bangladesh media reports said. A study will be conducted in 10 local factories to gauge their performance in terms of CSR and productivity. Based on the findings of this study, action plans will be developed to help the garment factories achieve the desired results. These results will also be shared with all the relevant members at the end of the project. Md. Siddiqur Rahman, president, BGMEA thanked the Danish associations as well as DANIDA for initiating this project to improve the apparel industry of Bangladesh.
SOURCE: Fibre2fashion
Pakistan expects 11.2 million bales of cotton output this season as compared to 10 million bales produced last year. According to sources, the selling price of cotton seeds from Rs 3,000 to 3,200 per 40-KG encouraged farmers to cultivate cotton crops on more land and enhance the cotton production in this season. The experts and scientists helped train more than 8,000 farmers to overcome losses of cotton crops and evolved measures against the virus which harmed the cotton crops in the past. During the year, farmers are expecting to get good prices for the cotton crop as the increased cotton prices in international market would benefit farmers as compared to previous years when they suffered huge financial losses. The government had set 14.1 million bales of cotton for this year which had to be revised as some of the growers in cotton producing areas opted to cultivate sugarcane crop.
SOURCE: Yarns&Fibers
Greek clothing production fell in the January-July period this year, while textile production rose in the same period, official figures showed on Monday.The Hellenic Fashion Industry Association (SEPEE), in a report, said that clothing production fell 12.7 pct in the first seven months of the year, turnover eased 1.7 pct, exports fell 6.5 pct, while retail sales rose 0.6 pct and imports grew 7.6 pct. Export of clothing totaled 319 million euros in value, down from 340 million euros in the same period last year.The Thessaloniki-based federation said textile production grew 5.2 pct in the seven-month period, turnover was up 7.7 pct, exports grew 15.4 pct and imports rose 13.2 pct. Exports of textile products totaled 295 million euros in value up from 260 million euros in the corresponding period last year.In total, the value of Greek exports of clothing/textiles (including primary production of cotton) totaled 693 million euros in the January-July period, down 0.8 pct from the same period in 2015.SEPEE attributed this development to a general economic condition prevailing in the country and the imposition of additional tax burdens.
SOURCE: The Tornos News
Vietnamese exporters are expected to benefit from the Chinese currency renminbi (RMB)'s inclusion into the elite reserve currency basket of the International Monetary Fund (IMF). On Saturday, IMF officially added the RMB to its new Special Drawing Rights (SDR) basket as a fifth currency, along with the U.S. dollar, the euro, the Japanese yen and the British pound. According to Vietnam Textile and Apparel Association, the sector carries out numerous transactions with China while importing garment and textile materials. The inclusion of the RMB into the SDR basket will have impacts on the sector, Vietnam's state-run news agency VNA quoted the association as saying on Monday. Nguyen Van Thoi, chairman of the Managing Board of Thai Nguyen Garment Company, said the inclusion will be favorable to local companies as currently many Vietnamese garment and textile companies purchase materials from China. From now on, they will not have to make currency exchange from the U.S. dollar into RMB while carrying out such transactions, said Thoi. When the RMB is used as an international means of payment like the U.S. dollar, the euro, the Japanese yen and the British pound, its exchange rates will be stable, which will facilitate business and trading activities of Vietnamese companies, Thoi assessed, adding that the inclusion offers a positive signal for those who have transactions with the Chinese side.
Echoing Thoi, Chu Xuan Ai, director of Ton Vinh Trading and Technology Development Company Limited, whose major is exporting tea products, told VNA that exporting companies like his may get benefits from the RMB's inclusion as they will not have to transfer the money into U.S. dollar for payment while it will help stabilize the exchange rates. Sharing the same view with other companies, Nguyen Thi Thu Hien, managing director of Vietnam's Hanoi Trade Corporation (Hapro), which specializes in exporting, importing and retailing consumer goods, said on VNA Monday that to those who conduct trade activities with China, the inclusion of RMB in the SDR will make the exchange rates of RMB against U.S. dollar and other currencies more stable. Vu Huy Dong, general director of Damsan Textile Joint Stock Company, said the RMB's inclusion has symbolic significance and brings the value of RMB to world-class level. Enditem
SOURCE: The Xinhua Net
