The textile industry has welcomed the signing of the Trade and Economic Partnership Agreement with the European Free Trade Association saying it will give the industry technology and product development opportunities. Rakesh Mehra, chairman of the Confederation of Indian Textile Industry, said in a press release the agreement will further catalyse the growth of the Indian textile industry, especially in terms of critical inputs, technology, and product development opportunities. While the EFTA members Iceland, Liechtenstein, Norway, and Switzerland are an important trade block for the Indian textile industry, the government should expedite signing of free trade agreement with Switzerland as both India and Switzerland complement the needs of each other in the textile and apparel space. India imports technology and machinery from Switzerland and Switzerland sources raw materials and intermediate products, to be converted into high-quality and sustainable end products from India. The CITI and the Swiss Textiles signed an MoU in November 2023 to promote bilateral trade and investment, he said. A. Sakthivel, a member of the Board of Trade, said the signing of the trade agreement will improve modernisation in all sectors, especially textiles. With this, signing of free trade agreement with Switzerland and Norway should happen soon.
Source: The Hindu
The Union Minister for Textiles, Consumer Affairs & Food & Public Distribution and Commerce & Industry, Shri Piyush Goyal during his interaction with beneficiaries of Textile Sector here today urged them in attendance to be vocal for local. “Be vocal for local and take local to global. That’s the clarion call from Prime Minister Shri Narendra Modi to showcase our products at the world stage”, he said.
Shri Goyal further noted that ramping up textile production in the country will spur income, open up employment opportunities and play a vital role in making the country ‘Atmanirbhar’ as well. The Minister urged the artisans to register their businesses on the Government e-Marketplace (GeM). He said that he has instructed GeM to register all artisans and weavers connected with handicraft and handloom without any registration fee.
Registering on the e-marketplace will boost the visibility of artisans and help promote businesses enhancing their income, said Shri Goyal. He further said that the government would try to facilitate the GeM-registered businesses to be onboarded on major e-commerce websites in the country and push for registering their businesses on foreign websites prioritising handicraft and handloom. He noted that the support of the officials to the handicraft and handloom businesses, especially small enterprises, would help them create an identity through their craft on the GeM website. With a special emphasis on promoting the ‘Made in India’ initiative, Shri Goyal urged the officials to devise ways for the handicraft beneficiaries to gain from the ‘Handmade in India’ label and register greater income on their products. The Minister noted that businesses selling machine-made products under the ‘Handmade in India’ label should be penalised and said that the government would take firm action to protect the handicraft and handloom sectors. Shri Goyal said that the government is willing to procure the harvest of jute and cotton farmers if the market price is lower than the Minimum Selling Price (MSP). The Minister further said that the government is working towards increasing the production of jute and cotton and is willing to provide quality seeds, fertiliser for quality produce to fulfill the vision of farms to foreign exports. He urged the textile sector to collectively work towards technological innovation that would ease the lives of the artisans and weavers and provide an impetus to their income. He thanked the beneficiaries for safeguarding the cultural heritage of the nation and hailed women’s contribution in the textile sector. Stressing on the need to redefine and present the handicraft and handloom at the world stage, the Minister said that the industry should work towards improving the quality and packaging of the textile products to increase the brand value and income of the artisans and weavers. He also said that with the convergence of schemes like PM-Suryoday Yojana (free solar-powered rooftop scheme), Samarth schemes and benefits from textile schemes would help the artisans benefit their businesses and transform their income. He also highlighted the significance of textile sector in India as one of the largest employment generation sector and the benefits provided to them through various schemes of Ministry of Textiles. Shri Goyal emphasized on PM’s vision for “Ek Bharat, Shrestha Bharat” by amalgamating traditional heritage culture, technological advancement, innovation through research centres and empowerment of women. Pertinently, it’s the first beneficiary meet of Ministry of Textiles which was organised on such a large scale. Present during the interaction was Minister of State for Textiles and Railways Smt. Darshana Vikram Jardosh and officials of Ministry of Textiles. Nearly 10,000 beneficiaries under different sectors including Handloom, Handicraft, Jute, Silk and Samarth across the country from 398 centres participated in the interaction. A total of 24 beneficiaries from 12 different locations individually interacted with the Ministers sharing their experiences on the benefits being received to strengthen their livelihood through various schemes of the Ministry of Textiles.
Source: PIB
NEW DELHI: Swiss chocolates, watches, wine and soft drinks, Norwegian salmon & mackerel are among a host of items set to get cheaper after India and European Free Trade Association members — Switzerland, Norway, Iceland and Liechtenstein — signed a trade treaty Sunday. While cut and polished diamonds are on the list of products that will see customs duty cuts, there will be no concessions from India on gold and major farm and dairy products. In return, companies from these countries will invest $100 billion in India over 15 years, billed as a first in trade deals, with India having the option to reverse the tariff cuts in case the amount is significantly lower than the promised level. The investment is expected to result in creation of around a million jobs with the European companies seen to be using India as a base to export to other parts of the world. While cut and polished diamonds are on the list of products that will see customs duty cuts, there will be no concessions from India on gold and major farm and dairy products. In return, companies from these countries will invest $100 billion in India over 15 years, billed as a first in trade deals, with India having the option to reverse the tariff cuts in case the amount is significantly lower than the promised level. The investment is expected to result in creation of around a million jobs with the European companies seen to be using India as a base to export to other parts of the world. In another first, govt also agreed to a sustainability chapter, which includes aspects such as labour, human rights, environment and gender, hitherto no-go areas for New Delhi. An EFTA official said there were no penal provisions under the agreement, unlike the agreements that EU signs, and India is already a signatory to the agreements mentioned in the chapter. "It marks India's first modern FTA with the first set of European nations... It is the culmination of nearly 16 years of negotiations. The last nine to 10 months have seen very intense negotiations to complete a balanced and equitable free trade agreement that factors the sensitivities of all countries. India stands to benefit in terms of investment, innovation and R&D," commerce and industry minister Piyush Goyal told reporters. As part of the trade and economic partnership agreement, which will kick in after a few months, countries such as Switzerland have offered to open up over 120 of 156 services, including audit and accounting, legal, IT and healthcare for Indian companies, with easier visa rules allowed for workers and professionals from the country. Besides, there are provisions for mutual recognition agreements for nursing, chartered accountants and architects, allowing Indian and EFTA qualifications to be recognised by each other. An official said govt has stuck to the FDI cap for sectors under the services chapter. Given India's concerns on patents, especially for medicines, the EFTA members agreed not to press for additional commitments on intellectual property rights that go beyond obligations at WTO. As part of the agreement, India will offer duty cuts on 82.7% of its products, covering 95.3% of EFTA exports of which more than 80% is gold. The four members of the trading bloc are offering 92.2% products, covering 99.6% of India's exports, which were estimated at $1.9 billion last year. Because of high gold imports, estimated at $12.6 billion last fiscal, India had a trade deficit of almost $15 billion on TRENDING imports of $16.7 billion. Within the bloc, Switzerland accounts for nearly 90% of the trade with India. Govt is seeing EFTA nations as a base for its companies to provide services to other EU markets, while investments from companies from the four-nation bloc are likely to help India emerge as a production hub.
Source: Times Of India
Proceeds from the issue will be partly utilised for fuelling forward integration via acquisitions which will translate to growth of over 30 per cent in consolidated revenue to ₹520 crore in the next 3 years. Bhavin Parikh, Chief Executive Officer, Globe Textiles, said the forward integration plans will enhance asset base, margins and topline, besides introduce innovative sustainable fashion garments and practices which are sought after by customers in India, Europe and the US. This development will enhance the estimated topline by ₹120 crore to about ₹520 crore and improve margin by 2027-28, he said. Globe Textiles has proposed to acquire Globe Denwash for undisclosed amount.
Source: Business Line
Odisha is creating an eco system to attract investments in textiles, apparel, and technical textiles sectors, said Bhupendra Singh Poonia, Managing Director of Industrial Promotion and Investment Corporation of Odisha. Mr. Poonia told The Hindu that the Odisha government has developed or plans technical textiles park at Bhadrak, textiles park at Kalibeti in Khordha, and an apparel park at Aranga in Khodha. It is looking at a total investment of ₹10, 974 crore from 26 companies in textiles, apparel, and technical textiles, generating employment for more than one lakh people, not only in these parks but across the State. A new industrial policy announced by the Odisha government in 2022 has textiles and apparel as a thrust sector, as it has high scope for generating employment for women. “For 10 - 15 years, we are investing heavily in skilling. We are creating an eco system to attract investments in the existing clusters. In the case of ease of doing business facilitation, ours is one of the best,” he said. There are plans for hostels to house the women workers so that they have a safe working place and a common effluent treatment plant with zero liquid discharge system. The government also supports in availability of land, water and electricity, Mr. Poonia said. Development of the textile sector will also support agriculture in the State as farmers can diversify to cotton. “We are looking at investments from other States and countries and are also supporting local entrepreneurs,” he added.
Source: The Hindu
India is negotiating with the ten-member ASEAN for greater market access for its goods, more flexibility in determining origin of products through product-specific rules and redressal of non-tariff barriers. This comes as part of the India-ASEAN FTA review initiated by New Delhi to address its growing trade deficit with the bloc, sources have said. “India had been urging the ASEAN for a review of the FTA as its trade deficit with the region ballooned since the trade pact was implemented in January 2010. The negotiating team has its list of demands ready for increasing India’s exports but the ASEAN, too, has its own wants. So a balance will have to be struck,” an official tracking the matter told business line. The India-ASEAN FTA, formally known as the ASEAN-India Trade in Goods Agreement (AITGA), has resulted in disproportionate gains for the ASEAN countries. Towards greater exports: in 2022-23, India exported goods worth $44 billion to the region while its imports were valued at $87.57 billion. Trade deficit in 2022-23 was $43.75 billion compared to $7.5 billion during the implementation of the agreement. The ten-member ASEAN includes Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Vietnam, Laos, Myanmar and Cambodia. Seeking product-specific rules (PSRs) in the rules of origin (ROO) determination is one solution being pursued by India for greater exports. ROO are the criteria to determine the origin of a product and establish if it qualifies for duty cuts under a FTA. PSRs can be introduced in the ROO chapter for relaxing rules for certain items where meeting the prescribed ROO is difficult. But the ASEAN, too, wants its own set of PSRs for items such as electronics, chemicals and textiles. “India has to negotiate carefully here to see that a proper balance is maintained between the two sides,” the official said. Moreover, the ASEAN is unhappy with the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR, 2020) rules introduced in India which aims to supplement the operational certification procedures related to implementing the ROO as prescribed under the respective trade agreement. “The ASEAN, especially Thailand, is unhappy with CAROTAR 2020. They say their exports are getting hindered because of it and want it to be addressed,” the official said. Indian negotiators have made a note of the non-tariff measures which the ASEAN countries need to address for meaningful market access. “For instance there are requirements such as food certification, including meat, that act as barriers to ASEAN markets. These need to go,” the official said.
Source: Business News
The consulate general of India in Ho Chi Minh City reportedly claimed that Indian enterprises are keen on engaging and investing in economic hubs in the Southwest region of Vietnam, including the Vinh Long province. This is as per media reports, which added Madan Mohan Sethi, the Indian consul general, along with representatives from the Indian Business Association and various enterprises, recently convened in Vinh Long to partake in a conference aimed at fostering investment cooperation. Vinh Long’s vice chairman, Dang Van Chinh, disclosed that in 2023, the province’s exports to India amounted to approximately $1.33 million, dominated by footwear and apparel. Imports, mainly pharmaceutical and animal feed raw materials, totalled around $2 million. Vinh Long showcased its advantages to Indian investors, emphasising abundant human resources, a thriving agricultural sector, and a burgeoning fruit industry yielding over 1.2 million tons annually. Traditional craft villages and renowned products such as bricks, ceramics, and handicrafts were also highlighted. Sethi lauded Vinh Long’s potential for development and cooperation. It may be mentioned here India’s interest extends beyond Ho Chi Minh City to encompass economic centres in the Southwest, considering the region’s growth prospects. Vinh Long in particular, presents attractive investment opportunities, with 12 projects awaiting external capital injection.
Source: Fibre2fashion
Rating agency Moody's on Thursday raised its forecast for India's GDP growth in FY24 to 8% from 6.6% on the back of strong government expenditure and domestic consumption. The upgrade comes a week after the rating agency raised its forecast for India's GDP growth in calendar 2024 to 6.8% from 6.1%. "We expect India to be the fastest-growing economy among major G20 countries, with its real GDP growth to accelerate to around 8% in the fiscal year ending March 2024 (fiscal 2023-24) from 7.0% in fiscal 2022-23," Moody's said in its Banking System Outlook report. "Government capital expenditure and strong domestic consumption will underpin India's economic growth. Moreover, India is poised to benefit from increased global trade and investment opportunities arising from companies' strategies to diversify away from China," the rating agency said. The Indian economy soared ahead in the December quarter with a surprise growth of 8.4%, belying fears of tempering as manufacturing, electricity and construction put up a robust show. The growth in the third quarter reported by the statistics ministry was also higher than the 7.6% reported for the preceding second quarter, which was revised to 8.1%, while the Q1 GDP growth figures were updated to 8.2%. The high growth number has also meant a revision in the estimate for GDP growth in FY24 by the National Statistical Office, from 7.3% in its first advance forecast to 7.6% in its recent second revised estimate. Reserve Bank of India’s economic growth estimate for FY24 is 7%, while the International Monetary Fund's forecast is 6.7%. The Indian economy, which expanded at a four-month high in January, continued to strengthen in February, seeing accelerations in both manufacturing and services sectors during the month. While services sector growth climbed to a seven-month high in February, manufacturing sector growth reached a five-month high, firming India’s position as one of the fastestgrowing major economies. The HSBC Flash India Composite Purchasing Managers’ Index (PMI), compiled by S&P Global, climbed to 61.5 in February from a revised reading of 61.2 for January—well above the 50-point threshold that differentiates expansion from contraction. "We expect India's inflation rate will decline to 5.5% in fiscal 2023-24 from a peak of 6.7% in fiscal 2022-23, and further disinflation will support monetary easing going forward," Moody's said in its latest report. India's headline inflation eased in January to 5.1% from 5.7% in the month prior. Core inflation also moderated to 3.5%, down from 3.8%, over the same period. "The RBI held the repo rate steady at 6.5% in February—the same level since March 2023. Given the solid growth dynamics and inflation above the 4.0% target, we do not expect policy easing any time soon," Moody's said.
Source: Mint Live
The Indian rupee ended marginally stronger on Thursday after hitting its highest level in six months earlier in the session, as likely intervention from the central bank limited the currency's rise. The rupee closed at 82.7850 against the U.S. dollar, higher by 0.05% compared with its close at 82.8225 in the previous session. The local unit rose 0.1% in the week, logging its fourth consecutive weekly gain. While the rupee climbed to a peak of 82.7350 early in the session, the highest level since September, the Reserve Bank of India bought dollars via state-run banks which trimmed the unit's gains, traders said. In addition to the RBI's intervention, dollar demand from importers also weighed on the rupee, a foreign exchange trader at a foreign bank said. "Attempts to breach 82.70 could create room for the (dollar-rupee) pair to fall a little more … would prefer shorts keeping a stop loss near 82.95 at current levels," the trader added. The dollar index was down slightly at 103.18, hovering close to its weakest level in a month hit on Wednesday. Most Asian currencies strengthened, with the Malaysian ringgit up nearly 0.6% and leading gains. The best-case scenario for the rupee seems to be a rise to 82.50 but sharp appreciation appears unlikely in the near term, Sajal Gupta, head of forex and commodities at Nuvama Professional Client Group's institutional desk said. Even as a bearish bias prevails across most Asian currencies, bullish bets on the Indian rupee have firmed most in two-and-a-half years, according to a Reuters poll. Investors will now keep an eye on U.S. jobless claims data due later on Thursday and the non-farm payrolls report on Friday. Indian financial markets will remain shut on Friday for a local holiday.
Source: Money Control
ERODE: Wholesale textile traders in Erode are worried that orders for the ready-made textiled have dropped by 70 per cent in the last two months.
They blame the central government’s amendment in the Income Tax Ac, 1961, where customers will have to repay the amount within 45 days. P Ravichandran, a textile trader and the secretary of the Federation of All-Trade and Industry Association, said, “The Centre amended Section 43B (h) of the Income Tax Act, 1961, to facilitate quick business debts by small and micro enterprises. Though the amendment was brought last year, it will come into effect from March 31. The amendment stated that if a trader obtains goods or credit from small and micro enterprises or MSME registrants, the amount must be repaid within 45 days. Otherwise, it will be treated as his income and they will have to pay 30 per cent of the income tax on it. This has created a major issue in the ready-made textile trade.” He added, “As far as Erode is concerned, the ready-made textile market is a big one. There are about 5,000 traders here excluding the Gani textile market traders. All of them buy fabric and manufacture it into ready-made textiles. An average of Rs 500 crore is being traded every month. Annually, trade of up to Rs 6,000 crore is done here. Orders come from other districts and states like Kerala, Andhra Pradesh, Karnataka, Bihar, Assam, etc. However, business has not been smooth for the past two months. Only 30 per cent of the orders have come in January and February because many of our customers are unable to repay the debts within 45 days. They are starting to look for ready-made textile traders who will give them extra time.” He further said, “Because this amendment has been brought only for small and micro industry, enterprises with turnover comes below Rs 50 crore. So customers looking for medium enterprises that have a higher turnover of the limit. This amendment is meant to crush small and micro industries like ours. This should be brought to all levels of industry. Otherwise, this amendment should be postponed for one year.” SVS Sankar, a textile wholesaler of Erode, said, “We have also reduced purchasing fabrics as orders have come down. I have ordered only 20 per cent of the fabric in the last two months. We are currently only selling shirts, pants, sarees, salwar suits, and nighties, on hand. Our customers are unable to pay us within 45 days. If this continues, our customers will be taken away by big corporate companies. Hence, the central government should change the limit from 45 days to 100 days. Or else it should be postponed for a year. Speaking to TNIE, A Ganeshamurthi, Erode MP said, “The request of the members from the Erode textile industry has been brought to the central government’s attention.
Source: The New Indian Express
At a meeting with stakeholders of the textiles sector, he said the government is willing to procure the harvest of jute and cotton farmers if the market price is lower than the Minim Selling Price (MSP) and it is working towards increasing the production of jute and cotton and provide quality seeds, fertiliser for quality produce to fulfill the vision of farms to fore exports. Textiles minister Piyush Goyal Wednesday said that the government would take firm action against businesses selling machine-made products under the ‘Handmade machine-made products under the ‘Handmade in India’ label, to protect the handicraft and handloom sectors. At a meeting with stakeholders of the textiles sector, he said the government is willing to procure the harvest of jute and cotton farmers if the market price is lower than the Minimum Selling Price (MSP) and it is working towards increasing the production of jute and cotton and provide quality seeds, fertiliser for quality produce to fulfill the vision of farms to foreign exports artisans and weavers connected with handicraft and handloom without any registration fee. Registering on the e-marketplace will boost the visibility of artisans and help promote businesses enhancing their income, he said, adding that the government would try to facilitate the GeM-registered businesses to be onboarded on major e-commerce websites in the country and push for registering their businesses on foreign websites prioritising handicraft and handloom.
Source: Economic Times
Asian exports will be adversely affected due to the disruptions arising out of the conflict in the Red Sea through increases in port dwelling times and shipping days, as well as changes in inventory management, according to Hong Kong-based Economist Intelligence Unit (EIU). Imports are likely to be less affected than exports as many Asian countries are dependent on China (or India in the case of South Asia) for their inbound shipments, it noted. Despite the rerouting of trade, data indicate that inbound vessels are less affected than outbound vessels for countries such as Singapore, Cambodia, New Zealand, Indonesia and Sri Lanka. EIU expects small downward revisions to its forecasts for Asian growth in the first half of this year as a result of the disruption, which is likely to persist, and upside risks to our inflation forecasts. Sub-regions more directly affected will include South Asia, for which most trade goes via the Suez Canal, and export-oriented economies in Southeast Asia such as Indonesia, Thailand and Malaysia. An indirect impact will be felt across most Asian economies through increased shipping costs, particularly in food-dependent economies, EIU said in a note. Import dwell times for countries like Japan, India and Australia have increased significantly, which may exert inflationary pressure tied to disruption in clearance and the smooth onboarding of new vessels. Regardless of shipping disruption, it takes longer to ship from Bangladesh than other countries in south and south-east Asia because of the former’s poor port infrastructure. EIU expects countries like Bangladesh to face a greater impact as manufacturers and warehouses shift their bases to other countries, like Indonesia, which would reduce lead time by 10 days in the medium term.
Source: Fibre2fashion
Finance minister Abul Hassan Mahmood Ali emphasised the positive trajectory of Bangladesh’s economy, citing the steady increase in major macroeconomic indicators and indices. Speaking to reporters after chairing a session at the Ministry of Finance recently, he reassured the public, stating there was no cause for concern or disappointment regarding the country’s economic status. Ali highlighted the upward trend in inward remittances in February and the overall growth across key macroeconomic indicators even as he dismissed concerns of uncertainty, attributing them to baseless propaganda spread by some vested interests. The minister also pointed out that Bangladesh had achieved its highest position in various indicators since independence under the leadership of Prime Minister Sheikh Hasina. He underscored the tangible progress witnessed across the nation, emphasising the positive impact of development initiatives. Regarding inflation, Ali downplayed its significance, highlighting the government’s provision of family cards to millions of people, enabling them to access essential commodities at subsidised prices. State minister for Finance Waseqa Ayesha Khan echoed Ali’s sentiments even as she reiterated the government’s commitment to austerity measures and efficient implementation of development projects.
Source: Fibre2fashion
