INTERNATIONAL
Textile Raw Material Price 2016-11-08
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1035.63 |
USD/Ton |
-0.35% |
11/8/2016 |
|
VSF |
2314.49 |
USD/Ton |
-0.95% |
11/8/2016 |
|
ASF |
1886.98 |
USD/Ton |
0% |
11/8/2016 |
|
Polyester POY |
1094.59 |
USD/Ton |
-0.13% |
11/8/2016 |
|
Nylon FDY |
2358.72 |
USD/Ton |
0.63% |
11/8/2016 |
|
40D Spandex |
4348.89 |
USD/Ton |
0% |
11/8/2016 |
|
Nylon DTY |
2049.14 |
USD/Ton |
0% |
11/8/2016 |
|
Viscose Long Filament |
1304.67 |
USD/Ton |
0% |
11/8/2016 |
|
Polyester DTY |
2543.00 |
USD/Ton |
0% |
11/8/2016 |
|
Nylon POY |
5557.73 |
USD/Ton |
0% |
11/8/2016 |
|
Acrylic Top 3D |
1334.15 |
USD/Ton |
0% |
11/8/2016 |
|
Polyester FDY |
2167.07 |
USD/Ton |
0% |
11/8/2016 |
|
30S Spun Rayon Yarn |
2918.92 |
USD/Ton |
-0.50% |
11/8/2016 |
|
32S Polyester Yarn |
1724.81 |
USD/Ton |
-0.26% |
11/8/2016 |
|
45S T/C Yarn |
2579.85 |
USD/Ton |
0% |
11/8/2016 |
|
45S Polyester Yarn |
2270.27 |
USD/Ton |
0% |
11/8/2016 |
|
T/C Yarn 65/35 32S |
1857.49 |
USD/Ton |
0% |
11/8/2016 |
|
40S Rayon Yarn |
2226.04 |
USD/Ton |
0% |
11/8/2016 |
|
T/R Yarn 65/35 32S |
3095.82 |
USD/Ton |
0% |
11/8/2016 |
|
10S Denim Fabric |
1.35 |
USD/Meter |
0% |
11/8/2016 |
|
32S Twill Fabric |
0.83 |
USD/Meter |
0% |
11/8/2016 |
|
40S Combed Poplin |
1.17 |
USD/Meter |
0% |
11/8/2016 |
|
30S Rayon Fabric |
0.67 |
USD/Meter |
0% |
11/8/2016 |
|
45S T/C Fabric |
0.65 |
USD/Meter |
0% |
11/8/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14742 USD dtd. 8/11/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The city-based textile industry has demanded rebate in the proposed GST regime, claiming the textile industry to be the second highest employment-generating sector after agriculture. Punjab Pradesh Beopar Mandal (PPBM) president PL Seth said the local textile sector was undergoing through a slump due to the increasing investment cost, shortage of skilled labour and squeezing markets. He reasoned that the government had already exempted the sector from the taxes under the service tax on employees.
Intense global competition and an unfavourable tax regime were already throttling the industry. For instance, the excise exemption limit for textile industry had been stagnant at Rs 1.50 crore for the past eight years. The demand to raise it to Rs 5 crore remained unmet. Similarly, the capital investment limit of the Micro Small Medium Enterprises (MSME) had been Rs 5 crore since 2006 and this needed to be increased to Rs 10 crore now. It would give advantage of a low rate of interest on loans. Imported machinery was required to modernise the units to check the ever-changing designs of global competition. Besides, import duties must be reduced.
Weaving was the oldest industry in the holy city, as textile units here were manufacturing various kinds of fabrics, including suiting, shirting, tweed, blazer, blankets and women’s dress material. The PPBM sought administrative control of central, state and international Goods and Service Tax from a single department to save industrialists and businessmen from hassles of dealing with multiple departments. It also sought constitution of GST councils in each state and due representation to the local business fraternity to provide voice to their concerns and demands arising in due course of its implementation. It added that already an unequal tax regime across northern states, dearth of new markets, lack of R&D (research and development), absence of support from the State government were causing hindrances in the growth of the textile industry in the holy city. It said loans at easy and a low rate of interest must be offered to manufacturers and the government must support export of shawls. It cited the instance of vanishing of processing units of the textile industry from this border city. It stated that highly labour-intensive processing units offering employment to thousands here were shut down one by one, but neither the government nor its agencies ever attempted to prevent its downward slide. It reasoned that causes of its disappearance were imposition of multiple taxes, costly raw material, an unsupportive attitude of the government, failure on the part of its operators to modernise their plants. It announced to communicate their concerns about the proposed GST to the Union Government.
SOURCE: The Tribune India
Textile Ministry has decided to close down six (6) jute mills of the Bengal and Bihar-based state-run PSU National Jute Manufacturers Corporation (NJMC) and its subsidiary Bird Jute Exports Limited (BJEL). Of them five are in Bengal – Kinnison, Khardah, Alexandra, Union and National and one in Bihar – RBHM. In its monthly summary, the Ministry said the “in principle’’ approval to close down all NJMC mills was taken in pursuance of NITI Aayog’s recommendation. When contacted NJMC, Chairman and Managing Director (CMD), K Bhaduri said “ we have no clue on the decision. We have only been informed of it’’.
Earlier on 15 December 2015 Cabinet (CCEA) and Textile Ministry decided to run 3 NJMC mills – Kinnison and Khardah jute in Bengal and RBHM in Bihar and close down the remaining Bengal based units like National, Alexandra and Union jute. NJMC would also be provided with interest free loans.
Speaking to Millennium Post, Jute Commissioner and former CMD of NJMC Subrata Gupta said, “I am aware of the decision but have no idea why it was taken. I can only recall that at one stage NJMC’s application for relief undertaking was rejected. The units were also closed for eight months. The 2015 decision was only a reiteration of an earlier Cabinet decision of 2010’’. Before closure the units were run with daily casual labourers.
In 2011 Chief Minister Mamata Banerjee had announced Rs 40-crore relief package for Khardah and Kinnison and decided to waive sales tax dues of Rs 39.43 crore alongside outstanding loans and interest payments of Rs 12.03 crore and electricity duty of Rs 2.34 crore. Bengal had also proposed to waive stamp duty of Rs 35.06 crore on the sale of excess land of around 185.6 acres valued at around Rs 506.86 crore.
Operating agency IDBI also proposed Rs 88.06 crore state relief for reviving Kinnison and Khardah. IDBI adopted an eight pronged approach to revive NJMC units that included liquidation of secured and unsecured assets and statutory arrear dues and accepts reliefs and concessions from different institutions and state government. TMC MP Dola Sen said, “ the decision is anti-people, anti-worker and anti-industry and we shall fight back and stop it at all cost under the leadership of Mamata Banerjee’’. In 2015, consulting agency and Transaction Advisor Price Waterhouse Coopers (PWC) proposed outright sale of land at Khardah, Kinnison and RBHM and development of a garment park and textile parks in Union, National and Alexandra Mills.
SOURCE: The Millennium Post
The Confederation of All India Traders (CAIT) has urged Union finance minister Arun Jaitley to bind manufacturers to declare price of their products for pre and post GST regime. The traders' body made this appeal after the GST Council recently agreed on four tax slabs with the lowest at 5, followed by 12, 18 and the highest of 28 per cent. CAIT is of the opinion that in the past, whenever there was any reduction in the tax rate, the price of the respective commodity was never reduced by the manufacturers at large and the consumers were denied benefits. In order to avoid such an anomaly, CAIT has approached the finance minister. “This step will see to it that the manufacturers declare prices of their products pre and post GST period. This will not allow them to make any adjustments and it will become easy to gauge whether the prices have been affected by inflation or not, post GST,” CAIT said in a statement.
CAIT national president BC Bhartia and secretary general Praveen Khandelwal said that four rates under GST have been carved out to curb prospects of any inflation. Trade and industry will get full input credit for the GST paid by them on purchase of any goods. Over and above, input credit will also be available on taxes paid on every expense incurred. Input credit is also available on goods purchased from other states. After enjoying such deep input, the prospects of inflation stands almost zero.
In current VAT regime, no input credit is allowed on expenses or goods purchased from other states. Since GST is a combination of both goods and services, input credit is also available for the taxes paid on obtaining any services related to business. All these benefits of input credit will certainly keep the manufacturing cost low and the consumer should be entitled to enjoy benefits, they said.
SOURCE: Fibre2fashion
A new and simpler portal for the incoming Goods and Services Tax regime went live today that will enable easy filing of returns and tax payments through credit/debit cards and other modes. As much as 60 per cent of the software needed to run GST is ready and GSTN – the company building the gigantic infrastructure and IT backbone for it, made the www.gst.gov.in portal live for migrating existing tax payers. It will test the software for integrating a welter of state and central levies before the ‘one market, one rate’ tax model comes into being from April next year. GSTN Chairman Navin Kumar said migrating more than 65 lakh VAT payers, about 20 lakh service tax payers and about 3-4 lakh central excise duty payers to a new portal has started. A provisional identification number, called GSTIN for the assesses who have moved to the new portal is being generated, Kumar told PTI. On the new portal, businessmen and traders who currently have to file separate returns for array of indirect taxes like excise duty, service tax and VAT, will file a single monthly return and pay tax online through various payment cards, including credit and debit, he said.
GSTN is building a network that will not just integrate the assessees paying service tax, excise and other local levies, but will also help in building the IT backbone for online registration, refund, return filing and tax payment. “Because we started work in November 2015, today we are in a happy position that 60 per cent of the software development has been completed; 40 per cent is balance and that work is going on,” Kumar said. The GSTN is building four data centres spread across Delhi and Bengaluru to ensure that the data is safe, secure and to ensure data recovery, whenever required. Kumar said GSTN has started importing hardware and by December all equipment would be ready and testing would start. “About 80 lakh tax payers will be migrated from the existing to GST regime. That migration we are starting now. We will generate a PAN-based provisional ID for each tax payer. By December, all the hardware equipment will be ready. Then, the software will be put on the data centre and then the testing will start,” he said.
Under the GST regime, taxes can be paid using debit, credit cards as well as through NEFT/RTGS transfers. Explaining how the Central Board of Excise and Customs (CBEC) has been preparing itself for GST, Kumar said CBEC started a project in 2012 to ensure that all dealers in the state have their PANs validated. Since 90 per cent of the dealers now have a validated PAN, it will be easy to generate GSTIN. “We are sending GSTIN to the state governments and central government so that they can be passed on to existing tax payers. The tax payers will have to log in to the portal using the GSTIN and password and fill in the basic information about the firm,” Kumar said. Traders will have six months time after the roll out of GST to submit their information. “But we are trying to persuade tax payers to do it as soon as possible. The existing tax payer data will start migrating in November. We want to migrate it within 3 months but law says it will remain open for 6 months,” he said. Registration with the GSTN portal will help traders to claim input tax credit and file returns and claim refunds. While normal dealers will have to file monthly returns under the GST regime, those traders with a turnover of up to Rs 50 lakh and availing compounding/composite scheme will have to file tax returns quarterly.
SOURCE: The Financial Express
Indian womenswear brand Biba has launched its first range of garments under the 'India Handloom' brand. The new range offers various women's apparel made from Ikat fabrics, a fabric popular among consumers in Eastern and Southern India. The new range was launched by union textile minister Smriti Irani at an exclusive Biba store in New Delhi. The India Handloom brand owned by the union ministry of textiles, seeks to conserve and promote Indian handloom through the brand, while also facilitating marketing of these textiles. “Earlier in August, Smriti Irani had announced the initiative, calling all leading clothing brands to partner with India Handloom brand to revive the industry,” a media agency reported.
Speaking at the launch, Irani said the initiative will help the weavers and local artisans to showcase their work on a wider platform and help provide a contemporary outlook to the products.
SOURCE: Fibre2fashion
Commerce and Industry Minister Nirmala Sitharaman today pitched for adequate headroom to ECGC so as to promote export finance, saying she will raise the issue with the Finance Ministry as well as the Reserve Bank. Citing an estimate by Asian Development Bank, she said exports from India suffer due to unmet trade finance needs of as much as USD 300 billion. "We shall take the issues of ECGC with the Finance Ministry to further strengthen it and will also negotiate with RBI so that greater room is given to ECGC because it cannot be too much regulated," she said here at the Diamond Jubilee celebrations of Export Credit Guarantee Corporation of India (ECGC). At this crucial time, said Sitharaman, the government needs to support exporters to explore newer markets. "We cannot tie their (ECGC) hands in the back... we need to support the ECGC and strengthen the organisation so that it gets the flexibility to operate," she added.
ECGC, wholly-owned by the central government, was set up with the objective of promoting exports by providing credit risk insurance and related services. ECGC requires a proper space and headroom so that it can have the flexibility to support greater institutions of exports, Sitharaman said. The minister said that exporters need to look at newer markets like Latin America and Africa as demand growth is slow in the traditional markets. Sitharaman said that around 90 per cent of world merchandise trade and services involve credit, guarantee or insurance. "Over 90 per cent of India's merchandise exports are made on short term credit i.e. less than 360 days. Engineering goods, chemicals, pharmaceuticals, textiles, garments, diamonds and leather account for a substantial share of exports," she said.
ECGC's role is very vital in handholding exporters in the trying times because exports have seen a continuous decline over several months, she added. "We have to look for newer markets which maybe in Africa or in Latin America and it is for ECGC to stand by the exporters to assure them that they are not going to face any risk," Sitharaman said.
SOURCE: The Economic Times
The European Union remains committed to a "broad and ambitious" free trade agreement (FTA) with India, but hopes that the "stalemate" on the issue would be resolved soon, a senior EU trade official said. Addressing the Trade and Investment Partnership Summit (TIPS) 2016 organised by the Europe-India Chamber of Commerce (EICC) in Brussels, Jolana Mungengova - member of the Cabinet of EU Trade Commissioner - expressed hope that the "stalemate" would be overcome soon. "The EU and India are long-lasting partners and the EU remains committed to a broad and ambitious FTA with India," Mungengova said. "While our bilateral negotiations remain at a stalemate for the time being, it does not mean nothing is being done to resume talks. Our objective is not to resume negotiations just for the sake of it. The goal is to resume negotiations so that the EU and India can have a real chance to make progress to conclude a trade agreement," she said. Her views were echoed by other industry and policy experts at the summit, however some sounded a note of caution over the approach towards achieving a trade agreement. "The entire issue of an FTA is a very contentious one. The EU has signed a landmark agreement with Canada, which could be a pointer to what is possible and what is difficult. It is important to note that every FTA also has to address a domestic political constituency...there must be a happy meeting point," said Swapan Dasgupta, Rajya Sabha MP and keynote speaker at the summit.
India and the EU have been working on signing an FTA since 2007 but an agreement remains elusive over key sticking points on both sides. Arnaldo Abruzzini, CEO of Brussels-based trade group Eurochambres, questioned whether the traditional trade agreement format was even viable. "Are we sure that the traditional trade agreement is the best way to invest our resources today? We should be pushing for a new dimension of international trade relationship, one that involves economic diplomacy - a different way to achieve the same results as trade negotiations," he said. The EICC's TIPS annual conference was created with the aim of fostering bilateral trade, investment and economic relations between the EU and India. "We are here to build economic bridges," said Manjeev Singh Puri, Indian ambassador to the EU. This year the theme of the summit revolved around 'Europe and India: Anchors of economic stability in today's chaotic times', given the backdrop of Britain's recent referendum in favour of an exit from the economic bloc.
Ravi Kumar Mehrotra, EICC chairman and Executive Chairman of the Foresight Group, noted "To meet the suffocating international challenges and the EU being a major economic player, the EU and India need to develop a much more comprehensive dialogue than they have done so far". Shishir Bajoria, chairman of the Bajoria Group and EICC Director, who spearheaded the 'EU, Brexit and India: Changing Landscapes' session at the summit said "The instability following the Brexit referendum has had a negative impact on the fragile European recovery. "While Britain grapples with the after-effects of the referendum results, the US elects a new President, and China tackles its over-production issues, Europe and India have the potential to become the anchors of economic stability, much needed to bring about a recovery. Growth is the most essential ingredient to solving most problems in the world". Sunil Prasad, EICC Secretary General, added, "TIPS should be seen in the context of India becoming the fastest growing major economy in the world and also in the context of an unpredictable economic and social environment in Europe and how both can face emerging global challenges". The event, co-organised by BusinessEurope, Eurochambres, European Business and Technology Centre (EBTC), included sessions addressed by experts from industry, business and finance from both India and the EU, representing the likes of Tata Consultancy Services (TCS) Europe; BNP Paribas Fortis, France; and European Investment Bank (EIB). The event concluded with the Europe launch of 'The Modi Doctrine: New Paradigms in India's Foreign Policy', edited by Anirban Ganguly, Vijay Chauthaiwale and Uttam Kumar Sinha.
SOURCE: The Economic Times
Keen to forge deeper trade ties with India as it exits the European Union, Britain said it is a natural partner of the world's fastest growing major economy with whom it wants to team up to challenge the protectionist sentiments gaining traction around the globe. UK Secretary of State for International Trade Liam Fox offered support to India's ambitious Smart City programme, besides strengthening bilateral trade and investment to help the Indian economy to grow. "It is important that we together challenge the protectionist sentiments that have been gaining traction across the world to remove those barriers that inhibit free and open trade, and to champion to see export and spread prosperity," he said at the India-UK Tech Summit here.
Responding to his call on doing away with protectionism, Finance Minister Arun Jaitley said as the USD 2.2-trillion Indian economy expands, it is "least influenced" by voices of protectionism. "Normally, it is the least developed and developing economies which have a tendency to cry for protectionism and that is a voice that's almost not heard in India," Jaitley said. "We are looking to open out and that's the direction of our economy." Fox is here as part of a delegation led by British Prime Minister Theresa May, who is on her first overseas trip as the UK sees that the India's rapidly growing economy could provide it with trade opportunities as it prepares to leave the European Union. "We are natural partner for India and ready to help you, skill your workforce and grow your economy, boost bilateral trade and investment and cooperate on science and education," Fox said. The two nations, he said, now have "golden opportunity" to reforge trading relationship. "Britain and India may be geographically apart but we are close commercial partners... We have a common understanding that trade and investment brings economic growth and prosperity for our citizens." He said Britain contributes about 8 per cent to India's FDI and in turn India is the third largest foreign investor into the UK.
"The UK and India could be stronger still. We discussed ways to strengthen our relationship (at bilateral talks yesterday) and I am delighted we formally established a Joint Working Group (JWG) on trade and investment which will enable regular and ongoing dialogue with an aim to broaden and deepen our relationship," he said. The Minister said that UK's thriving technology sector can help India achieve its ambitious goals. "India has smart cities project, Britain is world leader to implement the projects, intelligent transport system and data analytics," he added. Fox said the British government and its foremost companies are participating in the Tech Summit to prove to India that the UK is the best place in the world to research develop and grow business in the sector.
SOURCE: The Economic Times
It’s hardly surprising that Theresa May’s first bilateral summit outside Europe was with India’s Narendra Modi. Like almost everything else May has done since taking office, the visit has been all about Brexit. Nor is it surprising that May flies back to London disappointed and chastened. It was painfully visible on her trip that post-Brexit Britain still hasn’t learned that it no longer carries the economic heft to win deals on its own terms. And until Britain works out what sort of economy it intends to be, nobody is going to be interested in investing in its future either.
The prospect of a revived “special relationship” with India was one slightly Orientalist leitmotif of the victorious Leave campaign. Great Britain hardly needs these cantankerous continentals, the Leavers argued; the grateful nations of the Commonwealth — and especially its most populous and dynamic component, India — would once again open their bustling bazaars to British goods, easily making up for any lost markets in Europe. May flew to New Delhi with 33 captains of British industry, hailing the dawn of a new “age of opportunity.” She promised that deals would be signed on the visit that “created and secured jobs at home” and “demonstrated market confidence in the strength of the British economy.”
It’s true that India should find it easier to sign a trade deal with the U.K. than with the entire European Union. While negotiations over an India-EU free trade agreement have almost broken down, few of the objections came from Britain. Modi has a penchant for big announcements; May is desperate for someone to show faith in post-Brexit Britain.
There’s also lots of room for the Indo-U.K. trade relationship to grow. Financial links between the two countries run deep. The U.K. is the largest G-20 investor in India, for example, and Indian companies have made high-profile purchases in Britain. But trade with the U.K. only represents 2 percent of India’s total. During the time period Leavers venerate, misty-eyed, the numbers were indeed very different: India bought a third of British exports in the 1950s.
Yet it beggars belief that anyone could think that the only thing that’s happened in the interim was that Britain joined the European Union and abandoned its old imperial trading links. Those developments pale into insignificance when compared to the rise of Asia and the growth of world trade in general. India now makes a lot more at home, and — like everyone else — buys the rest from China. The British brands that were once household names in the former colonies are swiftly being forgotten. There’s little reason why any Indian should prefer them to Korean, American — or yes, German — products.
In any case, this fond hope that Britain can once again be a goods-exporting powerhouse mistakes the kind of economy the U.K. needs to become post-Europe. The global economy today hardly needs or can support another high-cost location for manufacturing. Instead, a Britain freed of European regulations could well seek to become the world’s premier location for free-wheeling entrepreneurship, for high-end services exports and for innovation. It already has many advantages — the English language, a well-known legal framework — if it seeks to go down that path.
But there’s simply no way to square that vision with the kind of immigration restrictions the Brexiteers are demanding. For that sort of dynamism to take root, the U.K will need to lower barriers to students and to skilled migrants. To beat the best in the world, companies and start-ups will have to hire the best in the world, without worrying about visa restrictions or government “lists” of their employees. And yes, as in California, lower-skilled migration will also continue to be necessary in order to keep the economy in balance — otherwise costs will explode and render it uncompetitive.
Yet currently, citizens of countries like India have to jump through hoops for British visas, which take ages to get and are far more expensive than their European or American equivalents. In recent years, Whitehall has disallowed Indian companies from transferring employees in and out and has made it drastically more difficult for foreign students in British universities to look for work after they finish their degrees. The number of Indian students dropped 10 percent last year as a result.
No less than Europe, India doesn’t for a moment intend to allow favorable market access to a Britain that shuts itself off to migrants. As one of India’s top civil servants said to May in Delhi: “There’s no such thing as selective free trade.” If Britain wants Indian markets, it will need to open itself up to Indian migrants and Indian service providers.
And if a Britain outside Europe wants to imagine itself as an Atlantic Singapore, it will have to be, like Singapore, open to all sorts of ideas, to free trade, to international capital — and to immigrants. Unless it realizes that the only future it has left is as a crossroads of the world, it will condemn itself to becoming a backwater of Europe.
This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.
SOURCE: The Financial Express
By the time Indians wake up on Wednesday morning, America would have elected its 45th President in the 58th quadrennial presidential elections. But whether it is Hillary Clinton or billionaire Donald Trump, the concern in India relates to whose policies will bring the world’s oldest and largest democracies closer both strategically and economically. While Clinton is not new to Indians and is considered an old hand “who doesn’t need to spell out her India strategy”, Trump, the Republican nominee, is an unknown face. “Trump may be a darling of the Indian-American community, but Indians living in India clearly know what and how she (Clinton) is,” a former Ambassador of India to the US said, requesting anonymity.
During his campaign, Trump has stated that he considers India a “key strategic ally” of the US and that he is a “big fan of Hinduism.” But his views on migration are a concern, especially for the Indian industry, especially the IT sector, which has called the US decision to hike visa fees as “discriminatory”. Both sides have set a target of $500 billion for bilateral trade in goods and services compared with $109 billion in 2015. The US is India’s topmost export destination, accounting for more than 15 per cent of India’s total trade, with a $30-billion trade surplus. However, it is only in the past five years that the two sides have come closer strategically. Apart from holding annual joint military exercises, sales of military hardware reached over $15 billion in 2015. “We look forward to working with the new administration to carry forward the agenda of fostering new partnerships and creating awareness of the collaborative efforts between India and US industry,” said Chandrajit Banerjee, Director-General of CII. The US elections also have bearing on the Indian capital markets. “The Sensex has been witnessing a modicum of volatility in the last couple of weeks. The stock market would react sharply to the ultimate winner of the elections,” said Madan Sabnavis, Chief Economist, Care Ratings.
SOURCE: The Hindu Business Line
Finance Minister Arun Jaitley said the government is working on measures to open the economy further and pitched for more investments to bridge the “investment deficit”. “We are looking to open out...we want to reform more, attract more investment, expand more in manufacturing and bridge the infrastructure deficit,” he said at the India-UK Tech Summit organised by CII here on Tuesday.
Job creation
Apart from trade, the Minister said there is significant growth potential in the manufacturing sector. “The share of manufacturing has to increase from the present 15 per cent to 25 per cent and that’s where we will realise we are creating far more jobs and expanding far better,” he said. He further said there is also huge potential for growth in eastern India as well as in rural areas, which require a lot of investment. Jaitley pointed out that the UK, which voted for Brexit, is looking at a world outside of Europe. “I think one of the great strengths of the Indian economy is that even though we are growing at the fastest rate than any major economy, by our own standard we are still not satisfied,” he said, stressing that there is a growing impatience in India for faster and higher economic growth. “Normally it is the least developed and developing economies which have a tendency to cry for protectionism and that is a voice that’s almost not heard in India,” he said.
Addressing the session, UK Secretary of State for International Trade Liam Fox said the two countries have a “golden opportunity” to re-forge trading relationship. “We are the natural partners of India and ready to help you, skill your workforce and grow your economy, boost bilateral trade and investment and cooperate on science and education,” he said. He also offered support to the Smart City programme, apart from strengthening bilateral trade and investment to help the Indian economy grow.
SOURCE: The Hindu Business Line
Currency notes of Rs 500 and Rs 1,000 denomination that are currently in circulation will no longer be legal money and cannot be used as medium of exchange from Tuesday midnight, as Prime Minister Narendra Modi in a surprise move clamped down on black money as well as counterfeit notes in circulation. Instead, the Reserve Bank of India (RBI) will issue new Rs 500 and Rs 2,000 currency notes. “The arrangement of buying and selling through existing Rs 500 and Rs 1,000 notes will not be available. These will be just worthless piece of paper,” Modi said in his hurriedly announced address to the nation on Tuesday evening. Existing currency notes of Rs 1, 2, 5, 10 and 100 denomination as well as coins continue to be legal and could be used for buying and selling.
Economists said the move would immediately press a pause button on transactions that were planned in black money. On the other hand, ordinary transactions such as buying of vegetables from the local market might be hit for a month, they added. Also, commodity prices might move up as black money supply gets choked. However, in a series of tweets, the Prime Minister's Office said real estate prices, health care and higher education would come within the reach of the common man thanks to this move. According to one estimate, the cost RBI is incurring for printing a Rs 1,000 note is Rs 3.17, while a Rs 500 note costs Rs 2.5.
The PM said the steps taken by the Government would strengthen the hands of the common citizens in the fight against corruption, black money and counterfeit notes. To enable people dispose of their existing Rs 500 and Rs 1,000 notes, Modi announced these could be deposited in banks and post offices between November 10 and December 30 by showing ID proofs. There will be no limit on such deposits. However, if old notes are exchanged for new notes, there will be a cap of Rs 4,000 till November 24. There will also be a cap of Rs 10,000 a day and Rs 20,000 a week on withdrawals from banks and Rs 2,000 a day from ATMs. This limit will be increased in the coming days. However, ATMs will not work on Wednesday and in some places on Thursday, while banks will be shut on Wednesday. Those unable to deposit Rs 1,000 and Rs 500 notes by December 30 this year can do so in designated RBI offices till March 31 next year. But, they will have to fill a declaration form along with proof and reasons, the Prime Minister added. The scrapped notes would be accepted by government hospitals, railway booking counters, airports, government buses, fuel stations authorised by the public-sector oil companies, consumer cooperative stores authorised by the central and state governments, milk booths authorised by state governments, crematoria, and burial grounds for 72 hours (till Friday).
A senior department of financial services official said for transaction purposes, banks will ensure that ATMs are fully equipped with smaller currency. He said banking correspondents will be deployed in full strength in rural and unbanked areas. There will be no restriction on any kind of non-cash payments by cheques, demand drafts, debit or credit cards and electronic fund transfer, Modi said. In his address, the PM shared insights into how the magnitude of cash in circulation is linked to inflation and how the inflation situation has worsened due to cash deployed through corrupt means. This, Modi added, would adversely affect the poor and the neo-middle class people. He cited the example of the problems faced by the honest citizens while buying houses.
Describing illegal financial activities the ‘biggest blot’, Modi said despite several steps taken by his government over the past two-and-a-half years, India's global ranking on corruption had moved only to 76th position from 100th earlier. “This shows the extent of the web of corruption in the country. The disease of corruption is the domain of some vested people who are flourishing. Some people have misused their positions and benefited. On the other hand, honest people are suffering,” he said. He linked fake currency to terrorism and questioned how enemies of the countries are using such methods to harm India. “We have to get rid of this termite of corruption,” he said.
Economist and former professor of Indian Statistical Institute, Dipankar Dasgupta said, “At a single stroke, a large volume of black money will become defunct. But in the long run, this is going to have an adverse impact on commodity prices. Because even though we are reducing money supply, the market will be having same kind of transactions and hence price will increase.” Rahul Garg, leader (direct tax) at PwC, said: “It is a step which was waiting to happen for a long time to deal with menace of black money. In one stroke, it will cleanse which many schemes and action would not have achieved.”
SOURCE: The Business Standard
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$ 43.34 per barrel (bbl) on 08.11.2016. This was higher than the price of US$ 43.08 per bbl on previous publishing day of 07.11.2016.
In rupee terms, the price of Indian Basket increased to Rs. 2890.77 per bbl on 08.11.2016 as compared to Rs. 2874.94 per bbl on 07.11.2016. Rupee closed stronger at Rs. 66.71 per US$ on 08.11.2016 as against Rs. 66.73 per US$ on 07.11.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on November 08, 2016 (Previous trading day i.e. 07.11.2016) |
Pricing Fortnight for 01.11.2016 (Oct 13, 2016 to Oct 26, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
43.34 (43.08) |
49.53 |
|
(Rs/bbl |
2890.77 (2874.94) |
3309.10 |
|
|
Exchange Rate |
(Rs/$) |
66.71 (66.73) |
66.81 |
SOURCE: PIB
A new textile factory will be set up in Ghana's Savannah Accelerated Development Authority (SADA) zone at a cost of $300 million. SADA and the China National Textile and Apparel Council (CNTAC) have signed a MoU in this regard. For cultivation and processing of cotton, the main raw material for the factory, CNTAC had already purchased 5,000 acres of land. The MoU was signed by ambassador Kwesi Quartey, secretary to the Ghana president and CNTAC vice-president Xu Yingxin, Ghanaian media reported. Yingxin said that the agreement would not only be beneficial to both parties, but would also lead to the strengthening of relationship between the two countries. Ghana government had established SADA to develop Savannah Ecological Zone. SADA was one of the flagship initiatives of the Ghana government aimed at fast-tracking the development of the northern, upper east and upper west regions of the Savannah Ecological Zone and the northern parts of the Brong Ahafo and Volta regions, said Quartey. He added that SADA is an initiative to facilitate the development of the Savannah Ecological Zone which is deprived to bridge the development gap between the area and the southern sector of the country.
SOURCE: Fibre2fashion
After more than a decade of being floated for bids, the two state-owned textile factories. Kombolcha and Bahir Dar, have finally received firm offers over the past six months. The latest offer came from Tiret Corporate - an endowment of the Amhara National Democratic Movement (ANDM) party. Another, from the foreign-based, Up Front & Personal Global Management Consultancy. Tiret, the local company shot for both- Kombolcha and Bahirdar textile factories while up-from is interested on the latter only. Bahir Dar was established back in 1961, financed by the Italian war reparation fund. It was then re-established in 1999, with 65.2 million Br in capital. In 2006, the company was leased to Chinese investors, who stayed for 18 months. In 2012, the total assets of the company were reported to be worth 105 million Br. The government has invested 500 million Br for the renovation of the factory, which sits on 188,000sqm of land. Bahir Dar has the capacity to produce 95,000sqm of garment a day, while its spinning machines can produce 15 tn a day. The factory employs close to 1,400 people.
Kombolcha, which sits 363 km south east of Addis Abeba and 482 km from Djibouti has received a rare offer. The factory was established as a public enterprise in 1986; by the end of 2013, its total assets were worth 174 million Br. Four years ago, the government invested 380 million Br into the facility. The then Privatisation Agency has invested almost half a billion birr for the renovation of each textile factory. After a long pause in attracting the attention of interested buyers, it was a couple of monts ago that it finally received an offer. In this respect, Dinku Deyassa was the one who broke the ice in May 2016. Back then, Dinku offered 606 million Br for 100pc transfer of both factories. This is broken down to 304 million Br for Bahir Dar and 302 million Br for Kombolcha. It has also proposed an expansion of the companies by 100pc. Dinku is an influential businessman investing in various sectors, including education, and hotels and resorts. His earlier endeavours with the former public enterprise Agency include his successful bid for a share of the Sodere Resort in 2011. At that time, he won the bid along with his two partners - the renowned Oromiffa singer, Kemer Yousuf, and Elias Eibssa. Later, he was also able to buy out his business partners. "My two partners sold their share and I now own the whole property, pending legal formalities," Dinku told Fortune in June 2016. However, the Ministry rejected his offer to acquire both the Bahir Dar and Kombolcha Textile Factories.
The reason for the rejection was that the listed prices were considered to be low considering the asset value and capacity of the factories. Regarding the latest proposed offers by Tiret and Up Front, so far the Ministry has opted to keep the negotiations behind closed doors. "Early disclosure might compromise our negotiation power with the companies," a source from the Ministry explained. "It is with ultimate precaution that we will deal with this." A staff members of the Bahir Dar Textile Factory told Fortune that he is unaware of the proposed offers. He recalled his experience of the previous bid, when interested parties used to come and visit the factory. "It is after we get a heads up on the preliminary offer that we will conduct a feasibility study," a source from one of the companies told Fortune, declining to mention the figures.
Textiles is one of the sub-sectors that is seen as a priority in Ethiopia. During the first Growth & Transformation Plan (GTP I), the country had planned to export a billion dollars' worth of products, but only managed to export products worth 456 million dollars - less than half the target. In this respect, during the first half of 2015/16, Kombolcha managed to earn 1.95 million dollars - a 41pc decline in comparison to the same period last year. While Bahir Dar also underperformed, with total earnings of just 710,000 dollars - a 35pc decline. In a bid to have their share of the market, the biggest global names in textiles, such as the US Van Heusen (PVH) - the company behind brands such as Tony Hilfiger and Calvin Klein - Vanity Fair, Raymond Group and Arvind Ltd are all setting up at the Hawassa Industrial Park. Though too early to see the fruits of their labours, these Parks seem to be the fashion of the time. The Ministry is still looking into the proposed interest of Tiret and Up Front, according to a source there. Tadesse Kassa, CEO of Tiret, confirmed their proposed interest, but declined to disclose negotiation price. Tiret, which was established in 1995 with 26.1 million Br in capital and 25 founding members, now includes close to seven companies under it.
SOURCE: The All Africa
China's exports and imports fell more than expected in October, with weak domestic and global demand adding to doubts that a pick-up in economic activity in the world's largest trading nation can be sustained. October exports fell 7.3 per cent from a year earlier, while imports shrank 1.4 per cent, official data showed on Tuesday, raising fears that a broader recovery seen in recent months could falter. While recent data had suggested the world's second-largest economy was steadying, analysts have warned that a property boom which has generated a significant share of the growth may be peaking, dampening demand for building materials from cement to steel. Indeed, China's imports of iron ore, crude oil, coal and copper all fell in October, after its robust demand drove global prices of many major commodities higher this year.
Though some analysts argued the decline may be seasonal, data from industry consultancy Custeel.com suggested steel mills have been cutting output and even starting maintenance work earlier than usual as soaring costs for raw materials such as iron ore and coal squeeze profits. Analysts polled by Reuters had expected October exports to have fallen 6 per cent from a year earlier, compared to a 10 per cent contraction in September. Imports had been expected to drop 1 per cent, after falling 1.9 per cent in September. "Our conclusion is that external demand remains sluggish but it has not worsened significantly. Although both exports and imports have fallen short of expectations, they have improved on a year-on-year basis," economists at ANZ said in a note, noting the rate of decline in October had moderated from September. Still, China's exports in the first 10 months of the year fell 7.7 per cent from the same period a year earlier, while imports dropped 7.5 per cent. Exports have dragged on economic growth this year as global demand remains stubbornly sluggish, forcing policymakers to rely on higher government spending and record bank lending to boost activity. Weak exports knocked 7.8 per cent off the country's GDP growth in the first three quarters of this year.
Imports fell for the second month in a row in October after rising for the first time in nearly two years in August. That left the country with a trade surplus of $49.06 billion for the month, versus forecasts of $51.70 billion, and September's $41.99 billion. In yuan-denominated terms, the trade numbers weren't as bad, indicating that the currency's slide to six-year lows has provided some support for exporters. Yuan-denominated shipments have only fallen 2.0 per cent this year, with imports down 1.8 per cent.
"Yuan depreciation should be positive for exports, but it only provides some support for exporters when they convert dollar income into yuan, but cannot reverse the trend," said Merchants Securities economist Liu Yaxin in Shenzhen. China's October iron ore imports were the lowest since February, while imports of copper, a key material used in building construction, fell to a 21-month low.
Coal imports fell nearly 12 per cent from September despite worries that power companies have low inventories heading into winter. "The ongoing cyclical rebound in China's economy should support imports for another quarter or two but is unlikely to last much longer given that the boost to growth from earlier policy easing is set to fade before long," Capital Economics' China economist Julian Evans-Pritchard said in a note. Exports to the United States fell 5.6 per cent in October, compared to an 8.1 per cent decline in September, while shipments to the EU fell 8.7 per cent, a slight improvement from the previous month. China's imports from Southeast Asia rose 18.4 per cent in October, while those from Australia increased 16.3 per cent, both significant improvements from recent months. The commerce ministry said last week that China will face relatively large downward pressure on foreign trade in the fourth quarter, with uncertainties continuing into 2017. To be sure, China factory surveys for October showed activity at two-year highs, and trends for other major Asian exporters point to positive trends in the region. China's economy expanded at a steady 6.7 per cent in the third quarter and looks set to hit Beijing's full-year target, fuelled by stronger government spending and a red-hot property market that are adding to its growing pile of debt.
SOURCE: The Business Standard
