INTERNATIONAL
Textile Raw Material Price 2016-11-02
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1053.48 |
USD/Ton |
0% |
11/2/2016 |
|
VSF |
2362.40 |
USD/Ton |
-0.62% |
11/2/2016 |
|
ASF |
1889.92 |
USD/Ton |
0% |
11/2/2016 |
|
Polyester POY |
1099.99 |
USD/Ton |
0.68% |
11/2/2016 |
|
Nylon FDY |
2347.64 |
USD/Ton |
0% |
11/2/2016 |
|
40D Spandex |
4355.68 |
USD/Ton |
0% |
11/2/2016 |
|
Nylon DTY |
2030.19 |
USD/Ton |
0% |
11/2/2016 |
|
Viscose Long Filament |
1306.70 |
USD/Ton |
0.57% |
11/2/2016 |
|
Polyester DTY |
2546.96 |
USD/Ton |
0% |
11/2/2016 |
|
Nylon POY |
5566.41 |
USD/Ton |
0% |
11/2/2016 |
|
Acrylic Top 3D |
1336.23 |
USD/Ton |
0% |
11/2/2016 |
|
Polyester FDY |
2155.69 |
USD/Ton |
0% |
11/2/2016 |
|
30S Spun Rayon Yarn |
2982.53 |
USD/Ton |
0% |
11/2/2016 |
|
32S Polyester Yarn |
1737.10 |
USD/Ton |
0% |
11/2/2016 |
|
45S T/C Yarn |
2583.88 |
USD/Ton |
0% |
11/2/2016 |
|
45S Polyester Yarn |
2318.11 |
USD/Ton |
0% |
11/2/2016 |
|
T/C Yarn 65/35 32S |
1860.39 |
USD/Ton |
0% |
11/2/2016 |
|
40S Rayon Yarn |
2229.52 |
USD/Ton |
0% |
11/2/2016 |
|
T/R Yarn 65/35 32S |
3144.95 |
USD/Ton |
0% |
11/2/2016 |
|
10S Denim Fabric |
1.36 |
USD/Meter |
0% |
11/2/2016 |
|
32S Twill Fabric |
0.83 |
USD/Meter |
0% |
11/2/2016 |
|
40S Combed Poplin |
1.17 |
USD/Meter |
-0.13% |
11/2/2016 |
|
30S Rayon Fabric |
0.67 |
USD/Meter |
-0.22% |
11/2/2016 |
|
45S T/C Fabric |
0.66 |
USD/Meter |
-0.22% |
11/2/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14765 USD dtd 02/11/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The revised duty drawback rates will make cotton textiles more competitive in the international market, say industry stakeholders who welcomed the recent All Industry Rates (AIRs) notification. RK Dalmia, Chairman of the Cotton Textiles Export Promotion Council said the revised drawback rates would boost export of cotton textiles as it would provide adequate neutralisation of duties and taxes on export of goods.
Right direction
Stating that the increase in the drawback rates and caps for made-ups is a step in the right direction as it would help promote export of value-added products, he said, “There should have been some increase in the drawback rates for fabrics as India is fast emerging a manufacturing hub.”
SOURCE: The Hindu Business Line
The Union Textiles Minister Smriti Zubin Irani has announced a review of the stall allotment policy at Dilli Haat; the Minister has said that the policy will be modified in two weeks. Smt. Irani announced also that allotment of stalls will henceforth be made only for artisans belonging to handicraft clusters, in order to ensure that allotment is made for genuine artisans. In another decision made for the welfare of artisans, the Minister said that arrangements for lodging and boarding would be provided to artisans coming from outside Delhi, as opposed to the cash rebate they are given at present. She further announced that artisans belonging to Below Poverty Line category would be provided stalls at concessional rates. The Minister made these four announcements, after inaugurating the fortnight-long Exhibition cum sale of Handicrafts developed by Artisans of Clusters, 'Cluster Creation 2016', at Dilli Haat in New Delhi on Wednesday.
Interacting with media persons, the Minister also said that the National Handicrafts Fair is being organized with an aim to provide an opportunity for even the poorest of the poor artisans to come to the national capital and display their products, in line with the Government's developmental philosophy of 'Sab Ka Saath Sab Ka Vikas'. Earlier, Irani visited the exhibition and interacted with craft persons from various parts of India. The fair will remain open for public till 15th of November 2016. The fair is being promoted and marketed by Council of Handicrafts Development Corporations (COHANDS), with financial assistance from the office of Development Commissioner (Handicrafts). Member of Parliament, Shri Ramesh Bidhuri and Development Commissioner (Handicrafts), Shri Alok Kumar were also present on the occasion.
SOURCE: The SME Times
The Directorate General of Foreign Trade (DGFT) has tightened the rules for export houses which wish to import gold in their capacity as a nominated agency. The public notice to this effect says for getting permission as a nominated agency, only exports from the Domestic Tariff Area (DTA) would be counted. At present, apart from banks and government-owned MMTC, export promotion councils, star and premium trading houses are allowed to import gold for the domestic market. Now, says DGFT, “the export performance of gem and jewellery items, special economic zones and export-oriented units (SEZs/EOUs) will not be clubbed with the export performance of DTA units for grant of nominated agency certificate.” The notice no 37/2015-2020 dated October 4 was made available only this week.
A veteran trade analyst said: “Some leading export houses were allegedly misdeclaring gold jewellery exported from SEZs/EOUs to be of 22-carat jewellery when they were actually exporting 18-carat carat, saving around eight per cent of gold imported duty-free in the name of exporting back, and then selling that gold in the open market in India. Since DTA exports have tighter vigilance mechanism, such a practice will be arrested.” Two-third of gold jewellery is exported from SEZs/EOUs. The said practice was putting other nominated agencies like banks and MMTC at a disadvantage, especially in the past six months when the price was quoting at a huge discount. Harish Acharya, secretary, Bullion Federation, said: “We had represented to the government to stop this practise.” Govt tightens rule for star export houses Meanwhile, prices in Mumbai’s Zaveri Bazaar closed at Rs 30,695 per 10 gm for 999 purity gold, Rs 245 higher from Tuesday’s price. Price went up by Rs 800 per 10 gm in the last 15 days. Gold (999 purity) price on Wednesday closed Rs 1,125 per 10 gm higher than the price sovereign gold bonds were issued by the government.
Prices were rising on possibilities of Republican candidate Donald Trump winning the US elections, which is seen as a big positive for the yellow metal. In the international market, gold is currently trading near $1,297.5 per ounce. Due to higher global prices, Indian market, which was at a slight premium in past few days ahead of Diwali, went back to discount. According to NCDEX polled data, gold on Wednesday was quoted at $3 discount per ounce.
SOURCE: The Business Standard
With barely a fortnight left for Parliament's Winter Session, the GST Council will begin its crucial 2-day meeting on Thursday to decide on tax rate including the levy of cess and sort out the vexed issue of jurisdiction over assessees. At the meeting, to be chaired by Finance Minister Arun Jaitley, the Centre is likely to press its proposal for 4-tier tax structure of 8, 12, 18 and 26 per cent, the peak rate being for FMCG and consumer durables. Meanwhile, Minister of State for Finance Arjun Ram Meghwal told PTI that there had been "minor" differences over the issue of cess but expressed confidence that it will be resolved. He said: "Our effort is to decide on all matters through consensus. We want everyone to come around on all issues...
There may be times when Tamil Nadu or Kerala or West Bengal or Uttar Pradesh have said something different but we will get them around. "We are confident that the GST will be rollout from April 1, 2017...all issues would be sorted out before that." The Centre has also proposed to levy additional cess on demerit goods like tobacco, aerated drinks and polluting items to create a Rs 50,000 crore fund to compensate the states for revenue loss. The proposal, which was discussed at the last meeting, could not be adopted by the Council because of opposition by some states.
The meeting beginning tomorrow will have to sort out the issues concerning tax rate to enable Parliament to approve the Central GST (CGST) and Integrated GST (IGST) legislations in the winter session beginning November 16 and pave way for roll out of the new tax regime from April next year. Some central officials say it is "unfortunate" that states are opposing the cess despite assurances for compensating revenue loss for initial five years. At the last meeting, the Council agreed on keeping base year for calculating the revenue of a state at 2015-16, and considering a secular growth rate of 14 per cent for calculating the likely revenue of each state in the first five years of implementation of GST. States getting lower revenue than this would be compensated by the Centre. As some states preferred a higher tax slab over cess, Jaitley contented that the cost of funding compensation through an additional tax would be "exorbitantly high and almost unbearable".
Differences arose between the Centre and states at the last meeting on dual control, with states demanding control over 11 lakh service tax assessees and the Centre proposing to do away states having exclusive control over all dealers up to an annual revenue threshold of Rs 1.5 crore -- an issue which was settled in the first meeting of the GST Council. West Bengal Finance Minister Amit Mitra has said that the Centre has withheld information relating to the number of service tax assessees. He said while the Centre has disclosed 11 lakh tax payer, the actual number of service tax assessees is estimated at 30.5 lakh. The Centre is expected to have a tough task of building consensus with states on these vexed issues. The GST Council, chaired by Union Finance Minister, has representatives from all the states.
Under the proposed 4-slab structure, the items which are currently taxed between 3-9 per cent will fall in the 6 per cent bracket; those in 9-15 per cent range will come under 12 per cent rate. Those products which are currently taxed between 15-21 per cent will attract 18 per cent levy while those above 21 per cent will be taxed at the peak rate of 26 per cent.
SOURCE: The Business World
Sharp anomalies in the taxation structure across different industries such as telecom, tobacco and textiles should be addressed as the country moves towards the goods and services tax (GST) regime, said a paper submitted to the GST Council. Taxation structure for sin goods like tobacco should not be based on emotive issues, but on rational parameters like the need to check illicit trade, said the Assocham-KPMG paper. It said that instead of taxing tobacco and tobacco products at higher than the standard rate, the entire sector should be placed under the standard rate, with focus on bringing exempted items under GST net to eliminate the rampant illicit trade. The next meeting of the GST Council is on November 3-4.
For the telecom sector, the paper cautioned that GST may negatively impact the working capital cost since initial landed price of purchases, including imports, may increase due to increase in tax rates. It said the cost of procurement of services may increase to more than 18 per cent from the current 15 per cent, which will be a challenge for the industry, especially if CENVAT credit on passive infrastructure and fuel consumption is continued to be denied. "While GST is a path-breaking reform, its implementation should be calibrated in a manner to cause least disturbance to the existing taxation structure," Assocham Secretary General D S Rawat said. The paper also went into the impact of GST on the textile sector and suggested ways to find an ideal situation. It said that in case India opts for higher tax rates under the proposed GST regime, the country will lose its market share in the long term to developing and highly competitive economies. It recommended that India should implement policies that capitalise on the potential of its textile and apparel industry so that the country has a higher bargaining power in procuring export orders. "Thus, the government should take a conscious call to retain lower rate for this industry by introducing a special lower slab of 4-6 per cent under the proposed GST regime along with full input tax credit of GST paid on goods and services used in the supply chain," the paper, which was submitted recently to the GST Council, said.
The paper noted that the tobacco industry has been the second-largest contributor to Indian excise revenue after the oil and gas sector. The combined tax revenue collected from tobacco industry was more than Rs 29,000 crore in 2014-15. It is proposed to levy both dual taxes and higher rate of GST. The endeavour should be to tax the hitherto untaxed/insignificantly taxed segments of the tobacco industry i.e. tobacco products other than cigarette as the consumption of such products is way higher than that of legal cigarettes, the paper suggested. It argued that levy of standard GST rates with excise duty on a wider tax base will yield higher revenue collection than continuing with levy of high rates of taxes on only one segment of the tobacco industry, for example cigarettes.
SOURCE: The Economic Times
In an interview with Times Now, Najib Shah, Chairman, CBEC, gives his views on tomorrow's GST Council meeting.
Najib Shah: The Directorate of Revenue Intelligence which is the enforcement arm of the Central Board of Excise and Customs had information suggesting that there was a huge consignment of methaqualone concealed in a factory in Udaipur. Based on this intelligence, they developed it further and they were able to bust the industrial unit and seized 23.5 tonnes of methaqualone. Methaqualone is a narcotic drug. It is banned substance. It has a market in some countries in Africa and we believe that this is one of the biggest seizeure both in terms of quantity and in terms of value. The value in the international market is ranged from 10,000 per kg to Rs 20,000 per kg. But one would like to emphasise the fact that this is a huge quantity which we have seized. Further investigations are going on this matter.
ET Now: Do you expect possibly that this was just one shipment? Could the scale of the operation be much larger than has been anticipated right now?
Najib Shah: We do not know right now. Further investigations like I mentioned are going on. But let us see where it all ends.
ET Now: You have got a big thing on your plate right now. The GST council meeting is coming up tomorrow. We are hoping to finalise the GST rates. At this point, how hopeful are you? Are the states on board with the current deliberations?
Najib Shah: Very hopeful because every such meeting throws open a lot of debate and discussions and as the FM has been repeatedly mentioning it invariably reaches a consensus thereafter. So let us wait and see. One would not like to second guess anything.
ET Now: Three weeks now to the start of the winter session. In fact, just two weeks to start of the winter session in parliament. Are you hoping to bring in the central and integrated GST laws, how hopeful are you it will go through this time? ..
Najib Shah: We are working very hard is all I can say. Let us see how the timelines work out.
SOURCE: The Economic Times
On the eve of a crucial two-day meet over the Goods and Services Tax (GST) here on Thursday, the Delhi government has, on the basis of surveys among the Capital’s traders, compiled a list of suggestions for the implementation of the proposed tax regime from the following fiscal. According to a source, the suggestions mainly consisted of seeking exemption for certain commodities in “larger public interest” and an at attempt at keeping the existing tax slabs at bay. “We have conducted surveys with different bodies representing different trader communities over the last 15 days and have forwarded our recommendations to the Deputy Chief Minister and Finance Minister Manish Sisodia,” said Brijesh Goyal, convenor of the Aam Aadmi Party’s Trade Wing.
A senior government official said that representatives of Delhi’s traders had sought exemption from the GST for items such as food grains, vegetable oils and textiles given their status as “essential commodities” so that these “did not go beyond the reach of the aam aadmi ”.Another suggestion, the official said, was allowing traders with an annual turnover of less the Rs.1.5 crore to be under State GST and turnovers above it to be under the Central GST. “Those dealing in commodities such as footwear want to be included in the slab of under six per cent, spare part dealers in the 12 per cent slab and those dealing in consumables such as sweets and bakers to be under the six per cent slab,” Mr. Goyal said.
SOURCE: The Hindu Business Line
The financial services industry must be spared a compliance nightmare when the goods and services tax (GST) is rolled out. The industry is happy to pay whatever tax is due but would like the Centre and the states to sort out how to share the proceeds amongst themselves without making service providers jump through hoops to facilitate that division. Most financial services span multiple states and extensively use computer networks and servers, whose location at a particular site has no real bearing on where, and from where, a service using those networks is rendered. The sensible thing to do would be to treat all financial services as inter-state transactions to be taxed under Integrated GST, with all vendors to financial services also being taxed under IGST, so as to avoid accumulation of input tax credits that cannot be availed of.
Absurdly, the model law treats securities as goods. Taxing securities transactions on the value of securities would kill trading in securities and cripple the role of the capital markets in allocating capital to different alternative uses and hedging risk. A bond or a share is a unit of capital with particular characteristics including risk and return associated with it. It is an input to value addition, not value addition in itself. No value-added tax should apply to capital, per se. The process of matching suppliers of capital with those looking for it is indeed a service that should be and is taxed. The government must amend the model law to remove the anomaly of treating financial services as goods.
The GST Council must see reason on the matter. The model law also proposes to tax intra-firm supplies of services without any payment attached to the service. The tax on intra-firm cross-border supply of services will lead to complex valuation challenges and possible transfer pricing disputes, and prove a compliance nightmare that yields little tax. It should be scrapped. The limited time available to configure complex IT systems to comply with the tax is the other challenge. Australia gave companies a clear 12 months to comply with the tax after the rules were finalised and made public.
SOURCE: The Economic Times
These are sombre times for the department of industrial policy and promotion (DIPP). Two years ago, it had been tasked by the prime minister to haul India’s Ease of Doing Business rank from 142 to the top 50. However last week, when the World Bank declared the latest rankings, India limped up only one spot from last year to 130. The government reacted outraged. Mandarins at DIPP complained that some of its biggest reform pieces went unnoticed. Union minister Nirmala Sitharaman tweeted that she was ‘disappointed’ with the rank, echoing similar concerns. News reports suggest that PM called a meeting of all secretaries and chief secretaries and asked for a report within a month, explaining the poor rank.
A part of the outrage is justified. As I had argued in a recent piece; for a country of the size and complexity of India, the reforms that the DIPP has managed to push in the past two years; could very well be adopted as a model by other federal countries. DIPP has cleverly managed to spark a race of sorts among states across party lines to improve ease of doing business, by devising a way to rank states based on their success in implementing a prescription of 340 different pieces of reform. Esoteric to the World Bank rankings—that incidentally only covers the cities of Mumbai and Delhi—DIPP has been trying to understand and target the analytics behind India’s historically poor rank. The word on the street is that a number of important reforms were being pursued in both these cities, and the whole government machinery was jerked into action to impress the World Bank inspectors. A part of DIPP’s surgical efforts to correct the index; Mumbai and Delhi governments can boast of simplified processes around electricity connections, building approvals, licensing norms; as well as a host of government services migrating to online platforms.
Nevertheless the headline figure of 130 is definitely poor reading, and DIPP is right to feel a pang of disappointment to find that at the end of the year, it doesn’t have a good statistic to adequately sum up its efforts to the layman. Since rankings have been declared, there has been a lot of analysis done around why the rank has remained so low despite all that the government has done. DIPP has bemoaned that steps like the GST and the new bankruptcy code were introduced too late to be included in this year’s survey. There is a statistical angle too. The rankings are relative, so another diligent competitor country doing similar reforms can theoretically frustrate the Indian government’s efforts in bettering its rank. Also every year the World Bank introduces new tweaks in its methodology—so countries often run the risk of getting judged in areas they hadn’t bothered reforming from the year before.
Understandably, sceptics will argue that these factors should only be affecting the rank at the margins. And they have a point. If the government had indeed attacked the major problem areas that were highlighted in last year’s performance; then it somehow seems inexplicable that India is still at almost the same place. It is a common misconception that the World Bank conducts its survey simply by going to government offices and being told of the number of days that needed for a tax refund, or the number of steps required to start a business.
Instead, World Bank argues that rules and reforms written on paper need not mean that they are actually followed in practice. So despite what the government of any country claims; the World Bank also talks with the private sector to check if those reforms are indeed living up to their promises. This could very well be the missing jigsaw piece that explains India’s poor rank. After reviewing the government’s evidence, the World Bank inspectors would have visited local businesses in Mumbai and Delhi to cross-verify. And there, they must have been told that nothing much has changed on the ground. In fact, in a rather obscure part of their website, the World Bank has made public the list of these external practitioners that they had consulted for India this year. Scroll down the list, and most of them seem to be accountancy, architecture, tax, legal, and business consulting firms. Basically the ‘agent’ firms that businesses end up hiring to avoid the unpleasantness of dealing directly with the government. And herein lies possibly the greatest loophole in the Indian government’s otherwise energetic plan to improve ease of doing business. That much of the reforms have been undertaken without actually consulting the very businesses they are meant to benefit!
Government departments will argue that they indeed consult industry. However, most of these consultations generally happen with high profile captains of industry associations – and it is usually a very cordial dialogue between the two, as opposed to one where they strongly challenge the government. So the small businessman who struggles with the local rent seeking inspector; or with the obnoxious tax officer holding back his VAT refund, or is running in circles around a department that is sitting on his approval documents ad infinitum—never really gets consulted.
Instead bureaucrats huddle in their own cocoons and decide on behalf of that small businessman; what they think should be excellent reform items for him! And then, once the reforms get implemented; no one in the government bothers to take his feedback on whether these are helping him or not. So a state could be spending a lot of time and money behind a sparkling new online single window as per DIPP’s recommendation, but local businesses may hardly be using it. Meanwhile they could still be harassed by dozens of other problems, that the government has no clue about. So, naturally when World Bank inspectors come calling; businesses continue to have an Oliver Twist narrative to tell them. All countries that do well on ease of doing business charts crucially have well-established mechanisms of dialogue between businesses and regulators—brokered either by government or quasi-government channels. Business feedback is immensely important for ease of doing business.
Central and state governments in India need to establish similar committees comprising of key bureaucrats, industry experts and regulatory consultants—empowered to pro-actively hold consultations with businesses across different sectors. They should then have the authority to collate all the feedback and approach the relevant departments with reform advice. This way the forum remains official, yet relatively neutral, giving businesses confidence to be more open and articulate. Meanwhile, the government will have a valuable tool to regularly check with businesses if the reforms are indeed working for them. It is a mistake to assume that mechanically undertaking a laundry list of reforms will automatically guarantee a good rank. Instead the government also needs to back it up with a good business engagement strategy.
SOURCE: The Financial Express
India’s gross-value added growth is expected to quicken to 7.6 per cent this year from 7.2 per cent in 2015-16, driven by sustained support from public capex spending, says a DBS report. According to the global financial services major, while private sector activity remains subdued, high frequency fiscal numbers point to sustained support from public capex spending. “We expect gross-value added growth to quicken to 7.6 per cent year-on-year this year from 7.2 per cent in FY15/16,” DBS said in a research note.
According to DBS, after an upside surprise from China, India manufacturing PMIs also jumped in October, affirming signs of a cyclical upturn in the region. India’s October Nikkei manufacturing PMI ticked up to nearly two-year high of 54.4 from September’s 52.1. “The improving order pipeline is encouraging and points to better industrial and business outlook. Also being a de facto business confidence/sentiment gauge, these PMIs partly reflect broad optimism on the back of strong asset market performance and stable rupee,” the report said. “Upcoming seasonal festive boost should provide some relief, accompanied by better consumption on wage increases and a normal monsoon,” the research note said.
Regarding inflation, the report said that price pressures meanwhile are under watch with the headroom for monetary easing likely to narrow going into next year. Monetary policy committee (MPC) lowered repo rate to 6.25 per cent from 6.50 per cent at the end of 2-day deliberations on October 4. The next meeting of the MPC is scheduled on December 6 and 7.
SOURCE: The Financial Express
The rupee on Wednesday closed at 66.7200, marginally stronger than its previous close of 66.7425, after having weakened to an intraday low of 66.8650 during the session as a poll showed Republican nominee Donald Trump lead his Democratic counterpart Hillary Clinton in the US presidential race for the first time in months. On Tuesday, a new poll by Washington Post showed that among all likely voters, 46% support Trump whereas 45% support Clinton, after the Federal Bureau of Investigation (FBI) was said to be looking to review more emails pertaining to Clinton’s private server. The local currency opened at 66.7950 on Wednesday and proceeded to weaken considerably before recovering. The initial fall was in line with losses in local equities and other Asian currencies, whereas the recovery was due to adequate dollar supply by banks.
Dealers said that the weakness in the rupee could be primarily attributed to the uncertainty surrounding the outcome of the US presidential race. “We don’t know what is going to happen and both possible results would have very different impacts on the market. And the market does not receive this kind of confusion well. We might continue to see some weakness from time to time till the election is over,” said a dealer, who wished to remain unidentified. The 10-year benchmark yield closed at 6.815% on Wednesday, largely unchanged from its previous close. The benchmark yield has weakened considerably from its low of 6.67% on October 5, as investors are cutting positions ahead of a possible rate hike by the US Fed in December. If the Fed decides hike rates, Indian paper would start looking less lucrative than it is now.
SOURCE: The Financial Express
MoS Finance Santosh Kumar Gangwar on Wednesday said that India is being praised among Emerging Markets globally. "India has maintained pace of reforms, completely optimistic about India's prospects in future," he said. “India has maintained pace of reforms, completely optimistic about India’s prospects in future,” he said. MoS Finance Santosh Kumar Gangwar on Wednesday told CNBC-TV 18 that India is being praised among Emerging Markets globally. “India has maintained pace of reforms, completely optimistic about India’s prospects in future,” he said. Earlier today, International rating agency Standard & Poor’s affirmed its ‘BBB-/A-3’ credit ratings for India. The outlook for country remains stable, the agency said. ”External position remains a credit strength,” it said. “Eye India’s current account deficit at 1.4% in 2016 vs 2.1 in 2015 and expect India’s GDP growth at 7.9% in 2016,” it further added. It also said that it doesn’t expect to change its rating on India this year or even the next year. The rating agency also said that downward pressure on ratings would reemerge if MPC is not effective in meeting targets.
Meanwhile, promising continued policy push to boost economic activities and investment flows, Finance Minister Arun Jaitley recently said domestic reforms will “neutralise” any adverse impact of the global slowdown. Stating that the ease of doing business has improved massively since the Modi government came to power, Jaitley said many sectors have been brought into the automatic route and now we don’t have any instance of cases pending indefinitely before the Foreign Investment Promotion Board. He said various policy measures and “every significant decision of the government are aimed in one direction — that is to promote economic activities and make India more investment friendly”.
SOURCE: The Financial Express
Indian businesses are hopeful about the present as well as future growth prospects with a growing number, in a recent study, citing a ‘moderately to substantially better’ performance currently compared to the last six months at all the three levels – economy, industry and firm. The Overall Business Confidence Index (OBCI) rose to a six-quarter high in the Business Confidence Survey carried out by industry body FICCI. This was supported by an improved assessment of the respondents with regard to current conditions as well as expectations. While 63 per cent of the respondents in the survey reported current economic conditions as ‘moderately to substantially better’ compared to the last six months, as many as 75 per cent said they foresee a better performance at the economy level in the near term. The survey results also show that the demand pulse is gradually gaining strength, which is a welcome sign, according to an official release. “Good monsoons and award of the Seventh Pay Commission will give a further trigger to demand,” it said.
Results pertaining to operational parameters indicated mixed signs. In the present round, participating companies seemed upbeat about near-term sales prospects and profits when compared to the previous survey results. However, outlook on other parameters such as investments, employment and exports was by and large unchanged. With regard to hiring prospects, 31 per cent of respondents in the latest round reported that they would consider hiring more people in the coming six months. The corresponding number in the last round was 29 per cent.
SOURCE: The Hindu Business Line
Global ratings agency Standard & Poor’s (S&P) on Wednesday reiterated its sovereign rating and outlook on India but ruled out any upgrade for this year and the next, citing weak public finances. The government slammed S&P's statement saying there was a 'disconnect' between rating agencies' views and investor perception on India. The US-based ratings agency maintained the lowest investment grade rating of 'BBB-' with a 'stable' outlook for India citing the country's sound external profile and improved monetary credibility. While it advocated more efforts to lower government debt to below 60 per cent of the GDP, it did not expect revenues to raise enough to meaningfully lower the deficit over the medium term. "The stable outlook balances India's sound external position and inclusive policy-making tradition against the vulnerabilities stemming from its low per-capita income and weak public finances," S&P said in a report to its clients. “The outlook indicates that we do not expect to change our rating on India this year or next, based on our current set of forecasts."
Reacting to S&P’s announcement, Economic Affairs Secretary Shaktikanta Das said the reforms undertaken by Asia’s third largest economy were unparalleled in any major economy. According to him, the rating agency’s decision not to upgrade calls for “introspection” on the part of the rating agencies. “The government would continue to take measures to strengthen the economy, boost GDP growth rate and create jobs,” Das told reporters. Das cited various steps taken by the government in the past two years, including building strong external position, controlling inflation and structural reforms such as the goods and services tax and bankruptcy code, saying that globally investors recognise these. "If you compare the various factors the report talks about, is there any other economy that equals this? So if there is no improvement, it's a matter for the rating agency to put a question to itself and perhaps undertake a kind of introspection," he said. According to Das, global investors consider India as highly 'under-rated'. The government would continue to adhere to the path of economic reforms and the various policy initiatives.
In September, Moody’s, another ratings agency had said that a ratings upgrade for India would not be possible before the next couple of years. This was just ahead of the agency’s representatives meeting finance ministry officials. Policymakers were miffed at Moody’s making such statements even before meeting them and Das told the representatives that he had serious concerns regarding the agency’s methodology. He told them that, under the circumstances, the meeting was “completely irrelevant and superfluous”. S&P said the upward pressure on credit ratings could emerge if the government reforms improve India's fiscal performance and pushes down the level of net general government debt below 60 per cent of the GDP. Currently, government debt amounts to about 69 per cent of the GDP.
Downward pressure on the ratings could re-emerge if growth disappoints as a result of stalling reforms or if interest rate-setting monetary policy committee does not achieve inflation targets. A higher-than-expected deterioration in the nation's external liquidity position could also put a downward pressure on ratings, S&P added. The rating agency expects economy to grow 7.9 per cent in 2016 and eight per cent on an average over 2016-2018. It also expects current account deficit to be at 1.4 per cent of the GDP in 2016 and the Reserve Bank of India to meet its inflation target of five per cent by March 2017. With regard to the banking sector, it said the private banks have better profitability, higher internal capital generation and capitalisation with lower-stressed assets than public-sector banks. S&P estimated that PSU banks need capital infusion of $45 billion by 2019, given their weak profitability, to meet Basel III capital norms, against $11 billion support pledged by the government. "Overall, we believe public finances are set to remain key rating constraints for some time," S&P said. "We believe domestic supply-side factors will increasingly bind economic performance and the government has little ability to undertake countercyclical fiscal policy given its current debt burden."
SOURCE: The Business Standard
India has made a strong pitch for Chinese investments under the Make in India initiative in a range of sectors like infrastructure development and solar energy at two events in the booming eastern Zhejiang province. Nagaraj Naidu, Director-General of Investment Trade and Promotion Division of Ministry of External Affairs, introduced the overall investment environment and guidelines for benefit of companies from Huzhou city at the India-China Business and Investment Forum and India Week celebrations. A 60-member Indian business delegation headed by Prakash Gupta, Consul-General of Indian Consulate in Shanghai, took part in the events from October 31. The events were jointly organised by the consulate and the local Huzhou government. The cooperation with Huzhou was a unique initiative bringing together economic, commercial and cultural aspects and intends to transport a truly Indian experience, said a statement from the consulate.
India's strong pitch for Chinese investments at the two events was mainly directed towards infrastructure development, solar panels, roads, smart cities, urban transportation and power sectors. Huzhou - located at an hour's drive from Shanghai - has been a key business partner for India in the Eastern China Region, and the city firms have shown a keen interest in investing in India under Make in India initiative, it said. There was also considerable interest amongst the Huzhou people to know about the Indian culture, films and art forms and given this context, Huzhou was chosen as the second city in Zhejiang Province after Wenzhou to launch the India Week celebrations, it said.
Huzhou Communist Party of China Secretary Qiu Dongyao assured them of Huzhou companies' strong interest in investing in Make in India projects pertaining to infrastructure and smart cities. The India Week Celebrations commenced with a cultural dance performance 'Rhythms of Rajasthan' by the Kalbelia dance troupe. Additional presentations covered possible collaboration in banking, IT, e-commerce and medical tourism into India. A series of B2B meetings were also organised for participating Indian companies with their Huzhou counterparts.An MoU was signed between Indian Confederation of Indian Industry - Shanghai Rep Office and China Council for Promotion of International Trade - Huzhou for future collaboration in promoting bilateral commercial exchanges between India and Huzhou, the statement said. An Indian food festival was also organised showcasing the best Indian culinary experience, it added.
SOURCE: The Economic Times
The longer Prime Minister Modi governs the nation the more does it become apparent that he is heeding no advice from anyone in his government but himself. Nowhere is this more apparent than in the changes he has wrought to India's relations with its largest, and potentially most dangerous neighbour, China. For it is absolutely inconceivable that a Foreign ministry headed by an official who had been India's Ambassador to China till as recently as 2013, will not have cautioned him against inviting the US Ambassador to India to visit Tawang in Arunachal Pradesh.
Not only is Tawang in Arunachal Pradesh, which China claims to be a part of Tibet, but its famed monastery, the second largest in the world, has made it the single most sensitive spot in that region. In 2009, largely unnoticed by the Indian media, China and India had drifted close to war over the Dalai Lama's proposed visit to open a hospital in Tawang town. Conflict was averted when Prime minister Manmohan Singh readily acceded to a request by Premier Wen Jiabao at an APEC meeting in Hua Hin, Thailand, to keep the international media out of Tawang and prevent it from giving the visit international significance.
The sensitivity to each others' concerns that the two leaders displayed then began a six year honeymoon in which China and India agreed to set the border disputes of the past aside and pursue closer strategic cooperation on the international issues of the future. That is the honeymoon that prime minister Modi has gratuitously ended with not one but a succession of actions spread over the past 22 months culminating in four Indian warships cruising through the South China Sea with a joint US-Japan task force for two-and-a-half months from May till July this year, to enforce freedom of navigation within it in line with the UN Convention on the Law of the Sea.
China seems reluctant to let its relationship with India worsen. It has therefore been notably restrained in its reactions. When the US Consul General in Calcutta visited Itanagar, the capital of Arunachal Pradesh, last April, and stated that the US considers Arunachal to be indisputably a part of India, it contented itself with saying : "China and India are wise, and capable, enough to deal with their own issues and safeguard the fundamental and long-term interests of the two peoples. The intervention of any third party will only complicate the issue and is highly irresponsible."
When Indian ships joined the US-Japanese task force in May it again refrained from criticising India directly and accused the US, instead, of following a 'divide and rule' colonial policy towards the two Asian giants. Asked to comment, all that an unnamed senior official of the Chinese foreign office was willing to say was "When there is some trouble in the South China Sea, India is worried. When Indian ships participate in maritime exercises in the South China Sea, of course China will show concern."
It is only after Modi invited US Ambassador Richard Verma to visit Tawang for the monastery's annual festival this year, and emphasised the official nature of the invitation by appointing minister of state in the Home ministry Kiren Rijiju as his escort, that this restraint has begun to fray. Lu Kang, a foreign office spokesperson said in Beijing on October 24, "China is "firmly opposed" to the US diplomat's actions, which will damage the hard-earned peace and tranquillity of the China-India border region… Any responsible third party should respect efforts by China and India to seek peaceful and stable reconciliation, and not the opposite".
Language is of paramount importance in diplomacy. "Peace and Tranquillity in the Border Region" is the name of the agreement that Prime minister Narasimha Rao signed in Beijing in 1993. By using this precise phrase Beijing could be signaling to Delhi that if it goes any further down this road China will consider the agreement to have been formally abrogated. If that happens, all the work done by three Chinese Presidents and three Indian prime ministers to mend relations after the border war in 1962 will have been undone.
What can India conceivably gain from forcing China to take a stand on an issue that it would much rather bury inside a deepening new relationship? Granted that Tibet's claim to any part of Arunachal would have been far stronger if it was being made by the Dalai Lama and not by the government that drove him into exile; and granted that its moral claim to Arunachal Pradesh is non-existent; but what will India do if China decides to seize some part of Arunachal - the Tawang tract for example - by force? Will it fight another border war with China in terrain where, apart from having a much larger army, China enjoys all the advantages of terrain and logistics?
Given the hyper-nationalism that has begun to grip the Indian middle classes today, Modi will have no option but to do so. Will India have any chance of winning such a war ? The unequivocal answer is that, left to itself it will have none. So one is forced to ask the question: is Modi's belligerence rooted in a belief that the US will intervene on its side? If it is, then his foreign office is not giving him the warning that he needs to avoid pushing India into disaster. For one does not have to look far to see that a war against China is the very last thing that this war weary and nearly bankrupt country now wants. This is apparent from the care that the Obama administration is taking to ensure that its effort to contain China's expansionist tendencies does not spill over into an unwanted war.
In 2014, during a state visit to Japan, Obama reassured his hosts that the US would honour its defence treaty with Japan and come to its defence if it was attacked. But he immediately added that the US would take no position on Japan's dispute with China over the Senkaku islands and hoped that the two countries would resolve their dispute through peacefully. President Obama may consider India a major defence partner, but he would still have to get Congress' approval for entering into a war with China. India does not have a defence treaty with the US, so the likelihood of the US Congress giving it is less than zero. So if India should stumble into another armed conflict with China, the most it will get from the US will be armaments to fight with and some logistical support from its satellite based observation systems. This will prolong the conflict, and quite possibly weaken the Chinese military. That will suit the US' purposes but at the cost of India's ruin.
So why is Modi taking India into such dire peril? When logic fails to provide an answer, one must turn to illogic. The only explanation that makes even a modicum of sense is a bruised ego. China has ignored repeated attempts by him to make it withdraw its objections to India joining the Nuclear Suppliers' Group, and to the UN security council declaring Masood Azhar an international terrorist. Apparently rejection is something that Narendra Modi is unable to take. It does not seem to have occurred to him that Xi Jinping may have the same problem.
SOURCE: The Business Standard
The government is looking at ways to handle the Chinese headache while negotiating Regional Comprehensive Economic Partnership Agreement, which will create one of the world's largest free trade blocs. The issue will be foremost on commerce and industry minister Nirmala Sitharaman's mind when she meets trade ministers from the 16 countries, including China, South Korea, Japan, Australia and Asean members in the Philippines later this week.
At the last ministerial meeting, India had agreed to a common approach for tariff reduction for all countries instead of its earlier plan of a three-tier approach where it was offering to slash customs duty on less than half its imports from China while offering to open its market more for others such as Asean, Japan and South Korea, with which it has trade agreements. A second set of countries included those such as Australia with which a trade pact is being negotiated.
Having agreed to a common approach, sources said, the government is now going to seek greater flexibility so that it can sequence its tariff reduction plan for various countries and offer higher cuts for some. So, the govern ment may offer to open up more quickly for imports from, say, Vietnam than for China. India's trade deficit with China, which rose to nearly $53 billion last year, is a major worry for the domestic industry as well as policymakers, who are keen to reduce the gap by boosting exports and also checking imports, which included mobile phones, electric bulbs and iron and steel.
Sources said India would not like to open up 85% of its market to all countries, something that was offered under the bilateral trade agreement with Japan. “For India, China is the concern. Being ambitious beyond Japan is going to be very difficult,“ a key negotiator said. Sources said when it came to China, even Japan and Korea were cautious. Sitharaman is also set to flag India's concerns over limited progress in opening up of services, which is being resisted by the Asean members led by Singapore. The flow of Indians beyond software professionals was a key focus area for the government.
SOURCE: The Economic Times
India-Pakistan diplomatic relations slid further on Wednesday when Pakistan pulled out six officials at its high commission in New Delhi, days after a mission staffer Mehmood Akhtar was expelled by India over alleged espionage. India also protested Islamabad putting out names and details of eight Indian diplomats in the public domain. New Delhi said the sharing of details in public of these Indian officials working in Pakistan has “compromised their security”. There was no immediate word from the ministry of external affairs on whether these eight have been withdrawn or were likely to leave Pakistani soil.
In another development, ministry of external affairs also summoned deputy high commissioner of Pakistan Syed Haider Shah to convey New Delhi’s “grave concern and strong protest at the recent escalation in the incidents of ceasefire violations by the Pakistan side at the Line of Control (LoC) and International Border (IB), which have resulted in several fatalities and casualties on the Indian side among civilians and security forces personnel”. It also registered its strong protest on the mutilation of the body of an Indian soldier by a terrorist who escaped across the LoC after committing the heinous crime.
The deputy high commissioner of Pakistan was conveyed the government’s expectation that Pakistan will not take any step inimical to peace along the LoC and IB and to the security of India. Sources in Pakistan high commission said six of its mission officials have returned home. These included commercial counsellor Syed Furrukh Habib and first secretaries Khadim Hussain, Mudassir Cheema, and Shahid Iqbal, whose names were referred to by Akhtar during his interrogation in connection with the spying scandal. "The decision has been taken after it became impossible for the officials to work in this vitiated atmosphere. Indian government is threatening and blackmailing our diplomats. So, in this condition, it is impossible for us to stay in this country and work," sources said.
After India had declared Pakistani official Akhtar persona non grata for espionage activities, Islamabad had expelled an Indian high commission official posted there. Persona non grata is a person who is not welcome in a particular place because of something they have said or done, especially one who is told to leave a country by the government. Media reports from Islamabad said Pakistan may ask at least two officials of the Indian high commission to leave the country for their alleged involvement in subversive activities. The two officials were identified and their photographs were being flashed by different TV news channels in Pakistan. Geo TV reported that commercial counsellor Rajesh Agnihotri and press counsellor Balbir Singh may be expelled. The channel claimed that the two were linked to Indian intelligence agencies.
SOURCE: The Business Standard
President Mamnoon Hussain Tuesday said the cotton growing countries should collectively address the issues and problems related to cotton industry and strengthen global cotton economy. The president was addressing the delegates of 75th Plenary Meeting of International Cotton Advisory Committee (ICAC) at the Aiwan-e-Sadr. Minister for Commerce Engineer Khurram Dastgir Khan and Minister for National Food Security and Research Sikandar Hayat Khan Bosan were also present on the occasion. He said the volatility of cotton prices in the international market, technological gap between developed and developing countries, pricing issues in textile industry and complex matters, such as branding in the trading world, were some of the challenges being faced by cotton industry and called for joint efforts to address these problems.
President Mamnoon Hussain said cotton industry has great significance for Pakistan as 60 per cent of country's foreign exchange depended on this sector and it was also a mean for providing employment to skilled and unskilled workforce. He said Pakistan had made unprecedented progress in the areas of cotton production and industry over the past few decades and was looking forward to cooperate with the committee for growth and promotion of cotton industry for the benefit of growers and manufacturers.
The president noted that during the last few decades extraordinary changes had occurred in cotton crop and related industries, adding that new varieties of cotton were introduced which has changed techniques from cotton cultivation to production. It was imperative to understand and adapt to these changes and prepare ourselves for future innovations, he emphasized. He said similarly, over the last few years, some cotton diseases had also emerged whose harmful effects either affected the quality of cotton crop or its production.
The president highlighted that Cotton Leaf Curl Virus has emerged as a deadly threat for cotton crop which caused considerable damage to cotton production, noting that in Pakistan, over a course of just one year, 4 million cotton bales were damaged due to this virus which affected both the farmer and manufacturer. He stressed that in view of the international nature of the issue there was a need for concerted efforts from the cotton community to address the problem. The president underlined that cotton industry related problems demanded immediate consideration so that all related matters from farmer to manufacturer could be deliberated upon to evolve solutions. It was essential that the Advisory Committee should be an effective international institution to assess such problems and present solutions, he said, adding this could be achieved if the Committee pursued its goals and meet on a continuous basis.
The president noted with appreciation that plenary meeting of Advisory Committee was being held in Pakistan after a long time which was home to excellent cotton crop and center of cotton weaving industry. He appreciated Ministry of Textile Industry and Pakistan Central Cotton Committee on successfully organizing this plenary meeting and hoped that exchange of ideas and consultation between cotton producing, processing and trading countries would be a source for further improvement and progress in this sector. Later, the President also hosted a reception dinner for delegates of International Cotton Advisory Committee.
Meanwhile, Executive Director, International Cotton Advisory Committee (ICAS) Jose Sette has said Pakistan has huge potential in textile manufacturing to reach out in the international market. “One of the greatest challenge for cotton sector in Pakistan is energy shortage, which need to be addressed for industrial growth in textile sector,” he said on the sideline of 75th Plenary Meeting of ICAS. He said efforts by the government to overcome the power shortage would play big role for revival of textile industry and enhance in manufacturing. He said the ICAC has the honor of holding its plenary meeting in Islamabad.
SOURCE: The Global Textiles
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$ 44.35 per barrel (bbl) on 02.11.2016. This was lower than the price of US$ 45.78 per bbl on previous publishing day of 01.11.2016.
In rupee terms, the price of Indian Basket decreased to Rs. 2964.15 per bbl on 02.11.2016 as compared to Rs. 3054.36 per bbl on 01.11.2016. Rupee closed weaker at Rs. 66.83 per US$ on 02.11.2016 as against Rs. 66.71 per US$ on 01.11.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on November 02, 2016 (Previous trading day i.e. 01.11.2016) |
Pricing Fortnight for 01.11.2016 (Oct 13, 2016 to Oct 26, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
44.35 (45.78) |
49.53 |
|
(Rs/bbl |
2964.15 (3054.36) |
3309.10 |
|
|
Exchange Rate |
(Rs/$) |
66.83 (66.71) |
66.81 |
SOURCE: PIB
India’s spun yarn exports in September 2016 declined 30.2 per cent in volume terms while it was down 24.3 per cent in value terms. The average per unit realisation was down US cents 3 a kg from previous month and up US cents 24 a kg as compared to September 2015. China’s yarn imports from Vietnam surged 34% in September from a year earlier whereas Indian shipments to China were down 56%, and imports from Pakistan have lost 30%.
In September 2016, 84 countries imported spun yarn from India, with China at the top accounting for 21.6 per cent of the total value with imports plunging 59.04 per cent in terms of volume YoY and declining 56 per cent in value YoY. Bangladesh was the second largest importer of spun yarns in September and accounted for around 15.8 per cent of all spun yarn exported from India. Export to Bangladesh was down 25.1 per cent in volumes and 19.6 per cent lower in value.
South Korea was the third largest importer of spun yarns, which saw volume surging 43.4 per cent while rose 45 per cent in value. These three top importers together accounted for around 42.3 per cent of all spun yarns exported from India in September. Cotton yarn was exported to 73 countries during the month and the average unit price realization was down US cents 5 a kg from previous month and up US cents 31 a kg from the same month a year ago. China was the largest importer of cotton yarn from India in September, followed by Bangladesh and South Korea. The top three together accounted for more than 50 per cent of cotton yarn exported from India. Hong Kong, Turkey, Philippines, Brazil and Venezuela were among the fastest growing markets for cotton yarn, and accounted for 7.05 per cent of total cotton yarn export value. Nine new destinations were added for cotton yarn export, of which, Oman, Bulgaria, Oman and Nigeria were the major ones. Nine countries did not import any cotton yarn from India, including Honduras, El Salvador and Saudi Arabia. In September 2016, significant deceleration was seen in export to Argentina, United Arab Emirates, Norway, Lebanon and Kenya.
SOURCE: Yarns&Fibers
Strengthening the supply chain in ASEAN textile sector towards sustainable development was the focus of discussion at an international conference in Hanoi on November 1. The event was part of the meeting of the ASEAN Federation of Textile Industries 2016 (AFTEX) hosted by Vietnam. President of the Vietnam Textile and Apparel Association (VITAS) Vu Duc Giang highlighted the strategic role of Vietnam’s textile and apparel in the bloc, saying that Vietnam tops ASEAN countries in apparel export. The sector is also among the nation’s biggest foreign currency earners, which helps name Vietnam in the world’s top five largest apparel exporters, Giang said.
In 2015, the country earned 27 billion USD from textile and apparel export. The figure is expected to reach 29 billion USD this year. The sector has over 6,000 enterprises, creating jobs for over 2.5 million labourers. Vietnam needs to develop a master plan for developing the garment sector by 2020, with a vision to 2040, he said, adding that the sector should have incentives to draw foreign investors while enterprises need to develop their own brand names. VITAS joined the AFTEX in 2001. The federation has made significant contribution s to forming a free trade zone among the Southeast Asian nations, and the building of the ASEAN Economic Community (AEC) in 2015.
SOURCE: The Global Textiles
The size of the global coatings market was US$ 5.51 billion in 2015 and is projected to reach US$ 6.81 billion by 2021, at a CARG of 3.5%, according to the recent report, published by MarketsandMarkets, a leading market research firm. According to the report, rising industrial, transportation, and building and construction are driving the market for textile coatings. Along with these, increasing quality and performance standards in textile coating based fabrics are also driving the market.
Asia-Pacific is the key market
Asia-Pacific dominated the textile coatings market in 2015. China is the largest consumer of textile coatings in the world. The demand for textile coatings is driven by the diverse industrial markets ranging from building and construction, automotive, industrial, and protective clothing, among others. The ensuing increase in investments and rise in the number of new manufacturing establishments are anticipated to lead Asia-Pacific to emerge as the prime driver for the growth of textile coatings market, according to the report.
Fastest-growing industrial segment
Industrial segment for textile coatings includes industries such as oil and gas and manufacturing among others. Growth in oil and gas and manufacturing industry will drive the textile coatings market, according to the report. North America is expected to witness growth in oil and gas and manufacturing industry due to the recent discoveries of shale gas and shale oil in the region and strong manufacturing base in the US. Other countries such as Argentina, India, UAE, South Africa, Australia, Malaysia, and Chile are estimated to exhibit the fastest-growth in the manufacturing industry. China accounts for the largest manufacturing industry globally, and is also amongst the leading oil and gas countries in terms of production and consumption. All these factors will account for its fastest-growth in textile coatings market.
Thermoplastics dominate market
The global textile coatings market was dominated by thermoplastics, as it was largest in terms of both value and volume, in 2015. This is due to the fact that PVC is the most used coating for various applications due to its reduced cost, easy weldability, and range of colours available. In addition, it can be easily painted or printed. PU being an eco-friendly textile coating, and its acceptance by the manufacturers in North America and Europe, will also support the market for thermoplastics type textile coatings.
SOURCE: The Innovation in Textiles
In order to revamp the country’s ailing cotton, textile and garment industry, the Raw Materials Research and Development Council (RMRDC) in collaboration with Crown Natures Nigeria Limited, has conducted entrepreneurship training on garment production for local and international (AGOA) markets for Nigerian youths. Delivering a paper at the event in Lagos on Monday, the Director General (DG/CEO), RMRDC, Dr. H. D. Ibrahim, said the training workshop became imperative in order to increase job opportunities and export potentials within the sector. “The share of the manufacturing value-added and employment generation potential of the sector decreased significantly from creating over 250,000 jobs in 1997, to less than 25,000 in 2006, a decrease of over 80% within the period. Today, employment generation in the sub-sec¬tor is at an all-time low, with less than 20,000 employees,” the DG pointed out. He said from 2010 to 2015, Nigeria imported an estimated quantity of textiles that totaled $20 billion, adding that as a result of this, the federal government found it mandatory to put in place measures to revamp the sector. Dr. Ibrahim regretted that in Nigeria, the textile industry which was formerly the largest employer of labour in the manufacturing sector and accounted for 25% of the Gross Domestic Product (GDP), has almost collapsed. “The textile industry in Nigeria was also the largest in Africa, after Egypt and South Africa,” he noted.
In a keynote address, the Minister of State for Industry, Trade and Investment, Hajiya Aisha Abubakar, described the training as apt, coming at the time the government was poised to creating enabling environment for diversification of the economy. In his presentation, titled ‘Strategies for sustainable raw materials supply for textile industries in Nigeria,’ Dr. Gabriel G. Awolehin, of the council, noted that at present, most Nigeria textile firms are export dependent and that out of 52 ginneries in the country, less than half are in operation and at low capacity utilization. Awolehin listed high priority to food crops than cotton, poor prices and market dynamics, lack of fertiliser and frequency of spray as some of the production constraint facing the sector. He is of the opinion that if the country’s raw materials potentials are fully exploited, the country could become a net exporter of textile raw materials, thus saving foreign exchange, increasing GDP, ensures diversification of economy among others. Dr. Awolehin advocated for the establishment of Textile Council of Nigeria.
Speaking on Financing Options Available for Small and Medium Scale Entreprises (SMEs), Mr. Michael Oye of the Bank of Industry (BoI), said: “In year 2009, BoI set up about 100billion Naira for cotton and garment sector. Last year, another N1billion was dedicated to small scale fashion designers firms.”
In a presentation by Joseph Ogungbade of the Nigerian Export Promotion council (NEPC), he noted that AGOA (African Growth and Opportunity Act) offers a veritable window for export of duty-free products from eligible sub- Saharan Africa countries to the US.
SOURCE: The Daily Trust
Experts at a seminar on Wednesday called for using modern dyeing chemicals in textile industries in place of traditional ones as it can reduce industrial water consumption by 30 per cent. This simultaneously minimises hazardous chemical discharge in environment, they said. The experts came up with the call at a seminar titled 'Greenline Information Day-2016' organised by Greenline Environmental Technology Ltd, a Hong Kong-based textile consultancy and solution provider at a hotel in the city's Khilkhet. Head of Sustainability of Lidl Germany Alexander David said pollution level in the world is increasing with booming textile industries and it is estimated that around 20 per cent of the world's pollution is contributed by the textile sector. He said 54 companies in Bangladesh have joined Detox campaign, an awareness programme related to chemical contamination, aiming at discharging zero quantity of hazardous chemicals in the environment by 2020.
Urging factory owners to be more responsible using water and energy, he said currently six factories in Bangladesh have adopted 100 per cent ZDHC- Zero Discharge of Hazardous Chemicals and MRSL-Manufacturing Restricted Substances List. Greenline Environmental Technology Ltd Chief Operating Officer (COO) Suvro Dev Saha said the target of their water saving technology (WST) project in many garment industries is to find out hazardous chemical pollution in different levels of textile manufacturing. The textile factory owners can save 30 per cent of water by replacing traditional dyeing chemicals, he said. He also said around 40 per cent of the dyeing chemicals are discharged as waste products in traditional process while it can be downed to zero using new generation chemicals. Mr. Saha said around 104 companies are available in the country right now to supply such chemicals that reduce water consumption.
Attending the programme, Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA) Senior Vice-President Mansur Ahmed said global warming has become a big concern of contemporary era and massive industrialisation is a major reason behind this. Energy efficient and environment-friendly technologies are very much needed to reduce pollution level, he emphasised. Mr. Ahmed also said all the BKMEA members and other stakeholders have been asked to install green technologies in their factories to protect the environment for the future generations. Greenline Environmental Technology works on sustainable and eco-friendly innovations and constantly examines new technologies in the garment industry related manufacturing facilities in Bangladesh. The company is registered with the United Nations Framework Convention on Climate Change (UNFCCC) and Clean Development Mechanism (CDM) project.
SOURCE: The Financial Express Bangladesh
There was a surge of 11 per cent foreign direct investment (FDI) in the fiscal year 2016 (FY16) in Bangladesh textile and clothing sector, according to the central bank of Bangladesh. Net inflow of FDI into textile sector for FY16 was $396 million against $351.62 million in FY15. However, this is less than the record FDI inflow of $445.82 million in FY14. Bangladesh is the second largest apparel exporter in the world after China. It also enjoys tariff-free market access in EU, Canada, Australia and other developed countries of the world, except the US. Of the total foreign investment in textile and clothing in FY16, around $222.86 million was introduced as reinvested earnings of the current companies operating in Bangladesh.
South Korean firms, mostly in the export processing zones, invested $111.61 million. This is almost one-third of the FDI in textile sector. Hong Kong firms invested $89.07 million. Overall, there was 9.27 per cent rise in foreign investment during the fiscal. Textile, telecom, banking, gas and petroleum and power sectors together accounted for 73 per cent of the FDI inflows in Bangladesh.
SOURCE: Fibre2fashion
Heimtextil, the world's biggest trade fair for home and contract textiles begins January 10, 2017 in Frankfurt, Germany. The show offers a comprehensive overview of the latest ranges of contract textiles for hotels, interior design and interior architecture with the organisers also putting together an event titled 'Interior.Architecture.Hospitality'. The Salon Interior.Architecture.Hospitality, which has been specially designed for architects, interior architects, designers and hoteliers will welcome all interested visitors as the first point of contact and meeting point at the fair. Allgemeine Hotel- und Gastronomie-Zeitung (AHGZ) magazine is organising a trend tour of the Heimtextil fair that is specially aimed at hoteliers.
On January 12, the renowned interior architect Corinna Kretschmar-Joehnk will be offering guided tours to select exhibitors in the contract textiles area. As part of the AIT trend scouting process, around 30 architects and interior architects and designers will be looking out for the latest industry trends and material innovations in contract textiles, while a panel of experts will select the winner of the AIT trend scouting event from among the companies represented.
SOURCE: Fibre2fashion
Ankara is considering entering into a free trade agreement with Russia as soon as next year, Turkish Trade Minister Bulent Tufenkci told RIA Novosti. The two countries want to restore trade and economic relations following a dispute over the downing of a Russian jet last year. "Considering the process of normalization in our relations with Russia and the possibility of signing a free trade agreement in 2017, we expect growth in all the areas of the economy and trade,” said the minister. He added the sides will continue to discuss trade in national currencies - the Turkish lira and the Russian ruble. “That will ensure mutual trade and expand its capabilities,” said Tufenkci.
According to the minister, Russia remains Turkey’s main trading partner and Moscow’s decision to lift the ban on some fruit imports from Turkey is a very important step in restoring relations. Following the downing of a jet last November, Moscow imposed sanctions on Turkish goods, fruit and vegetables, as well as travel restrictions and reintroduced visa rules for Turkish people. As a result of the measures trade between the countries contracted 25 percent to $23 billion.
SOURCE: The RT Question More
Experts at a seminar on Wednesday called for using modern dyeing chemicals in textile industries in place of traditional ones as it can reduce industrial water consumption by 30 per cent. This simultaneously minimises hazardous chemical discharge in environment, they said. The experts came up with the call at a seminar titled 'Greenline Information Day-2016' organised by Greenline Environmental Technology Ltd, a Hong Kong-based textile consultancy and solution provider at a hotel in the city's Khilkhet. Head of Sustainability of Lidl Germany Alexander David said pollution level in the world is increasing with booming textile industries and it is estimated that around 20 per cent of the world's pollution is contributed by the textile sector. He said 54 companies in Bangladesh have joined Detox campaign, an awareness programme related to chemical contamination, aiming at discharging zero quantity of hazardous chemicals in the environment by 2020.
Urging factory owners to be more responsible using water and energy, he said currently six factories in Bangladesh have adopted 100 per cent ZDHC- Zero Discharge of Hazardous Chemicals and MRSL-Manufacturing Restricted Substances List. Greenline Environmental Technology Ltd Chief Operating Officer (COO) Suvro Dev Saha said the target of their water saving technology (WST) project in many garment industries is to find out hazardous chemical pollution in different levels of textile manufacturing. The textile factory owners can save 30 per cent of water by replacing traditional dyeing chemicals, he said. He also said around 40 per cent of the dyeing chemicals are discharged as waste products in traditional process while it can be downed to zero using new generation chemicals. Mr. Saha said around 104 companies are available in the country right now to supply such chemicals that reduce water consumption.
Attending the programme, Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA) Senior Vice-President Mansur Ahmed said global warming has become a big concern of contemporary era and massive industrialisation is a major reason behind this. Energy efficient and environment-friendly technologies are very much needed to reduce pollution level, he emphasised. Mr. Ahmed also said all the BKMEA members and other stakeholders have been asked to install green technologies in their factories to protect the environment for the future generations. Greenline Environmental Technology works on sustainable and eco-friendly innovations and constantly examines new technologies in the garment industry related manufacturing facilities in Bangladesh. The company is registered with the United Nations Framework Convention on Climate Change (UNFCCC) and Clean Development Mechanism (CDM) project.
SOURCE: The Financial Express Bangladesh
With many around the globe questioning the benefits of trade, immigration and globalization, Canada is uniquely positioned to prove them wrong and rebuild our growth in a sustainable, inclusive way. We have many advantages – a highly educated population, strong research clusters, world-class postsecondary institutions, an open economy and society, stable government. More broadly and throughout the world, Canadians are seen as inclusive, welcoming and engaged in a world that is becoming insular. We can seize upon these advantages by expanding free-trade agreements and investing in trade-enabling infrastructure to ensure our long-term economic growth.
For decades, Canada has relied on trade with the United States. The two countries had the foresight to create a free-trade zone, later expanded to include Mexico. This continental approach has served Canada well and will continue to do so. But we live in an interconnected world, and need to be open to global trade. Last weekend’s signing of the Comprehensive Economic and Trade Agreement between Canada and the European Union, while still subject to final ratification, is a welcome development. At the same time, we also need to increase our focus on the massive emerging markets of Asia. This should begin by having Canada conclude a free-trade agreement with China – something that would put us in an enviable position among G7 countries and would strengthen our position as a leading gateway between Asia and the Americas.
For decades, Canada has been highly respected by China, the world’s second-largest economy and Canada’s second-largest trading partner. Both Canada and China need to diversify their trade markets. Clearly, we have a clear mutuality of interests when it comes to increasing bilateral trade and investment. Port Metro Vancouver and the Port of Prince Rupert are both in the process of expanding to meet the demands of growing trade between the Americas and Asia. These ports are closer to Asian markets than Los Angeles and Long Beach, and are less congested. Together, our Pacific and Atlantic gateways and trade corridors provide Canada with a key competitive advantage. At the same time, we have another opportunity to accelerate economic growth: Canada’s substantial infrastructure deficit. While one can debate its size, there is no question that one exists. It has an impact on our economy and our daily lives. While federal and provincial governments will continue to play an important role investing in infrastructure, they simply do not have the resources to meet the demand – pegged at somewhere in the neighbourhood of $500-billion – without a large increase in tax revenues or drastic cuts to social programs. Moreover, thinking around infrastructure needs to evolve from short-term, shovel-ready stimulus to more strategic infrastructure that increases public productivity and rebuilds our growth potential. Indeed, that is the goal of the new infrastructure bank announced Tuesday.
With rule of law and stability, Canada should be a magnet for capital. We have strong pools of capital here at home between the Canada Pension Plan Investment Board, the Caisse de dépôt et placement du Québec, the Ontario Teachers’ Pension Plan and others. Beyond capital, these institutions can bring managerial expertise to assets and projects. With negative interest rates in other parts of the world, Canada is becoming an increasingly attractive option for foreign investors. To attract patient, long-term capital from global investors, we need a supportive, predictable regulatory framework that encourages innovation and efficiency, and promotes adequate returns on investment in strategic trade and supply-chain infrastructure. If Canada is to win the global competition for ideas, talent and capital, we need to expand free-trade agreements and open ourselves up to more long-term infrastructure investment. Doing so will help create a stronger and more prosperous middle class – the very basis for smart growth.
SOURCE: The Globe and Mail
US Secretary of Defence Ashton Carter has called the Trans-Pacific Partnership (TPP) the equivalent of a ‘second aircraft carrier’. Secretary of State John Kerry has warned that ‘We cannot withdraw from TPP and still be viewed as a central player in the Pacific Rim and an undisputed force for peace and prosperity across the globe’. The remarks of these Obama Administration officials were seconded by Republican Senator John McCain, who said: ‘If TPP fails, American leadership in the Asia Pacific may very well fail with it’. Delegates protesting against the Trans Pacific Partnership (TPP) trade agreement hold up signs during the first session at the Democratic National Convention in Philadelphia, Pennsylvania, US, 25 July 2016. (Photo: Reuters/Carlos Barria). These statements underscore the reality that a nation’s trade policy intersects its diplomatic and security strategies and its broad economic goals. With the exception of multilateral negotiations in the WTO, which deal exclusively with trade issues, bilateral, sub-regional, and regional trade agreements are influenced and guided by competing national priorities. A review of the history of US decision-making from the 1980s, when it first embarked on bilateral and regional trade projects, demonstrates this geopolitical overlay to trade policy.
In 1991 US Secretary of State James Baker, in response to a Japanese plan to create an exclusive Asian trade architecture, famously proclaimed that the United States would oppose any ‘plan that drew a line down the middle of the Pacific’ between the United States and Asian nations. Baker stated later that while there was no immediate challenge to US hegemony, he wanted to put down a marker tying US economic interests closely to its political and security goals. Similarly, in defending the North American Free Trade Agreement and a proposed regional trade pact with Latin America, the Clinton administration closely linked trade initiatives with the political goal of advancing democratic norms and institutions in Central and South America.
Under former president George Bush the United States negotiated trade agreements with 17 nations and the administration publicly set forth the criteria for US trading partners. In a number of speeches and congressional hearings, US Trade Representative Robert Zoellick bluntly affirmed that in choosing free trade agreement partners the United States would expect ‘cooperation — or better — on foreign and security policy’. The United States placed Australia at the front of the line in return for supporting the Iraq invasion. Though President Barack Obama publicly eschewed many of the foreign policy tenets of the Bush administration, he ultimately accepted the inextricable entwining of US international trade policy with its diplomatic and security policy. His decision to back TPP negotiations in late 2009 was rooted both in the sage advice of his economic advisers and in urgent pleas by his State and Defence departments for a US response to the deteriorating situation in Asia. This situation included China’s reversal of its ‘peaceful rise’ mantra and the increasingly erratic and dangerous provocations by North Korea under Kim Jong-un.
With great fanfare, Obama and Secretary of State Hillary Clinton announced the US ‘pivot’ (later ‘rebalance’) to Asia. In a number of speeches and statements in Asian fora, the president repeatedly reaffirmed that ‘The United States is a Pacific power and we are here to stay’. From the outset, East Asian nations and observers around the world identified the TPP as the central symbol of current and future US leadership in the region. TPP negotiations are now concluded and the intricate and voluminous terms of the agreement are in the public arena. While not perfect, the results are generally quite positive — certainly from the perspective of US priorities and goals. Yet anti-globalist and anti-trade voices in the US have mounted a sustained and vitriolic campaign against the TPP. Its fate in Congress is highly uncertain, and possibly dire.
Meanwhile, East Asia’s diplomatic and security environment is becoming increasingly fraught. North Korea seems to be moving inexorably closer to greater nuclear arms power and acquiring the means to deliver its weapons. At the same time, Chinese obduracy and belligerency in the South and East China Seas is increasing under President Xi Jinping. The Chinese are at the forefront of constructing an economic architecture that excludes the United States. In trade this includes the Regional Comprehensive Economic Partnership and, in development, the Asian Infrastructure Investment Bank.
In the long-term there can be no doubt that the economic consequences of failing to secure the benefits of regional integration in the world’s fastest growing region will be costly for the United States and its 11 TPP partners. But even more costly for the United States will be failing to pass the TPP and fulfill Obama’s vow that ‘In the Asia Pacific in the 21st century, the United States of America is all in’. As Singaporean Prime Minister Lee Hsien Loong has warned, ‘If you don’t finish TPP, you are giving the game away [to China]’. One can only hope that the observation allegedly made by Winston Churchill that, ‘You can always count on the Americans to do the right thing, after they have exhausted all other possibilities’, comes true.
SOURCE: The East Asia Forum
Euro zone manufacturing activity accelerated at its fastest rate in nearly three years last month, supported by a buoyant performance from Germany, while inflationary pressures showed further signs of recovery, a survey found on Wednesday. The findings will make welcome reading for policymakers at the European Central Bank, who have struggled to get growth and inflation up despite years of ultra-loose monetary policy. Markit's final Purchasing Managers' Index (PMI) jumped to a 33-month high of 53.5 from September's 52.6, ahead of the preliminary flash reading of 53.3 and above the 50-mark that separates growth from contraction.
A sub-index measuring output, which feeds into a composite PMI due on Friday that is seen as a good overall growth indicator, climbed to 54.6 from 53.8, its highest level since April 2014. The upturn came even though prices rose for the first time in over a year. An output price index was at a 16-month high of 50.8, up from 49.9 and its first time above 50 since August last year. "Price pressures are coming up a bit. We would question whether that is strong enough to lead to a sustained increase in core inflation," said Stephen Brown at Capital Economics. "It's positive, the ECB will be happy, but it's not going to be enough for it to hold off on pulling the trigger in terms of more loosening." The ECB left policy unchanged last month but is likely to tweak its asset-purchase program and announce an extension by year-end, economists polled by Reuters said recently [ECILT/EU].
Earlier figures from Germany, Europe's largest economy, showed factory growth there was also near a three-year high. French manufacturing activity expanded at the fastest rate since March 2014. Spanish growth also accelerated, but in Italy manufacturing activity grew at roughly the same listless rate as September, suggesting no near-term acceleration for its struggling economy. A Reuters poll last month also predicted growth of 0.8 percent this year and next. Still, suggesting the uptick across the bloc may continue towards the end of the year, new orders came in at their fastest rate in two and a half years.
SOURCE: The Reuters
