With 312 participants from 14 states coming together India International Garment Fair (IIGF) is one of the largest platforms in Asia showcasing apparel & accessories and with the presence of 246 registered buying houses IIGF will facilitate international buyers to source products and form collaborations stated Union Textiles Minister Mrs. Smriti Zubin Irani here yesterday. Speaking at the inaugural ceremony of the IIGF Mrs. Irani stated that festivity in terms of trade had begun under the aegis of AEPC and congratulated the participants who she said came with a lot of hope to present their talent to the rest of the world. Textile Minister said that more than 1000 buyers are participating in the fair so that they can leverage the talent that India has to offer. She expressed the hope that AEPC goes from strength to strength through these endeavours. She added that platforms like IIGF are very cost-effective for newly exporting small and medium enterprises which use these platforms very effectively. Minister of State for Textiles Mr. Ajay Tamta and Secretary (Textiles) Mrs. Rashmi Verma were also present at the inauguration of the three day international fair which caters to A-W 2017/ 18. It may be noted her that a total of 312 participants from 14 states of the country are participating in the Fair the major participating states are Delhi-NCR Rajasthan Maharashtra Uttar Pradesh West Bengal Haryana Tamil Nadu Punjab Gujarat and Karnataka. The sellers would be showcasing womenswear accessories kids wear and menswear. The IIFG will have two fashion shows a day (one in the morning and one in the afternoon) on all three days for exhibiting the collections and developing business. A theme pavilion and best display awards are some other attractions of the event. Mr. Ashok Rajani Chairman AEPC informed that 58th IIGF is India’s largest garment show in South Asia covering Apparel and Fashion Accessories organized over a vast exhibition area. He said that the objective of IIGF is to showcase the latest trends in garment and fashion accessories and to leverage brand India across the globe. The India International Garment Fair was started in 1988. It is a B2B fair and is meant for conducting meaningful and quality business.
Source: Tecoya Trend
To make GST regime less onerous the Centre and states have decided to water down the penal provisions to ensure a trader gets immediate bail if the alleged tax evasion is up to Rs 2 crore. The GST Council at its last meeting has decided that the provision of arrest will be restricted to forgery and non- deposit of collected taxes with the exchequer within the stipulated timeframe. “In case of offences where the amount does not exceed Rs 2 crore the person arrested for violation of GST laws will be entitled to bail ” an official said adding that the penal provisions in the GST will be less onerous than the provision in the Indian Penal Code (IPC) for the same type of offences. Under the IPC 1860 forgery and cheating are nonbailable offence which means that bail can only be granted by a court. Most other offences like availing of wrong input tax credit or refund and failure to furnish documents which were earlier listed in the revised draft GST law for prosecution will not lead to arrest but may attract only financial penalty. While in the case of service tax there is a provision of arrest for non-deposit of the tax beyond Rs 50 lakh with the government the excise law gives the Commissioner discretion to invoke arrest provision in the case of default. PwC Leader (indirect tax) Pratik Jain said the arrest provisions as per the revised model GST law may lead to undue harassment for traders. “To start with there should be lighter penal provision for offences for at least two years as GST is a new tax regime and traders would need time to understand the law ” Jain said. Though anti-profiteering and prosecution provisions may act as a deterrent for tax evasion these are likely to do more harm than good under GST KPMG (India) Partner Indirect Tax Harpreet Singh said. “Whenever sweeping powers are given to officials with discretion and subjectivity it is likely to result in rampant misuse of authority creating hardships for GST dealers ” Singh said. (PTI)
Source: Tecoya Trend
The textile industry wants a uniform duty of 5% under the Goods and Services Tax(GST), which is expected to be rolled out from July this year. The Centre had announced special packages for the apparel sector in June last year and for made-ups (an article manufactured and/or stitched from any type of cloth, other than a garment) in December. The industry was expecting a special package for powerloom sector to be announced shortly. “We do not expect any major announcement in the budget,” a spokesperson for the industry said. Focus on GST “The government has already announced packages for different segments of the industry. But the focus is on GST,” the spokesperson said. Till the GST is rolled out, “we hope there will be no changes in the optional CENVAT that is implemented now,” said M. Senthil Kumar, Chairman, Southern India Mills’ Association. Lowest slab The textile and clothing sector has sought the lowest duty slab of 5% without exemptions for any segment of the value chain, according to industry representatives. About 60% of the Indian textile industry is cotton-based and 80% of textile and clothing exports are also cotton-based.
Source: The Hindu
Of the 110 lakh bales that have arrived in the market so far, traders and textile mills are reported to have purchased around 94 lakh bales of cotton so far for the season of 2016-17. The corporation, however, is going in for bale purchase to ensure supplies for its customers in the textiles industry. Of the 110 lakh bales that have arrived in the market so far, traders and textile mills are reported to have purchased around 94 lakh bales of cotton so far for the season of 2016-17. Cotton rates have moved up to R5,200-R5,300 per quintal from R4,150 per quintal at the start of the month. MM Chokalingam, CMD in-charge of Cotton Corporation of India (CCI), says that CCI has not done much of kapas (raw cotton) purchase because prices have gone up and the commercial losses may not be compensated by the government. The corporation, however, is going in for bale purchase to ensure supplies for its customers in the textiles industry. So far, around 15,000 bales have been purchased and the target initially was around 11-12 lakh bales, he said. CCI had commenced commercial purchase of cotton at the market rate from various parts of the country to ensure supplies for its customers in the textile industry.The corporation had issued notices reaching out to buyers informing them that it will shortly commence e-auction of FP bales for the season 2016-17. CCI has been purchasing kapas from markets wherever the prices are lower, Chockalingam said, adding that the commercial purchase of up to 15 lakh bales would be mainly from the west, central and southern parts of the country as the prices in northern markets are ruling much higher. Kapas prices are ruling between R5,000 to R5,200 per quintal in various markets. While the prices are expected to soften a bit from next month, most experts have ruled out a drastic fall. The Centre had declared an MSP of R4,160 per quintal for the current season for the long staple fibre and R3,860 for the medium staple length. Besides protecting cotton growers’ interests, CCI also caters to the needs of its customers such as the National Textiles Corporation and several co-operative mills. It also meets the demand of private sector mills, mainly during the lean season, by releasing the fibre from its stocks. Over the last three-four years, CCI has stepped into the markets to protect farmers when the prices fall below the minimum support price (MSP) levels. But this year, cotton prices have been firm at the start of the season on account of lower arrivals.The intent of the CCI is to ensure that this does not happen and keep prices uniform. Instead, CCI will purchase some 15-20 lakh bales of kapas and make it available to the industry in times of need, he said. According to Chokalingam, arrivals are still on the lower side since farmers are holding onto cotton in expectation of better prices. Already rates are in the range of R5200-5300 per quintal and farmers are getting the benefit. “Majority of the purchases so far have been by textile mills. However, we do not expect rates to go up further since textile mills are already at a break even point and are unlikely to purchase at higher prices,” he explained, adding that once the mills stop purchase, rates are likely to come down. NP Hirani, Chairman, Maharashtra State Cooperative Cotton Growers Federation however believes that rates are likely to cross the R6,000 per quintal mark soon.
Source: The Financial Express
The textile ministry has received a sum of Rs 500 crore from the finance ministry for reimbursing garment and apparel exporters for state levies that were paid by them. The reimbursement will start from next week onwards. The Rebate of Stat Levies (ROSL) scheme is part of the Rs 6,000 crore special package that the sector that was approved last year. Most of the schemes that were a part of the special package have already been implemented and the textile ministry has received Rs 500 crore for the ROSL scheme to reimburse exporters for state levies, said Rashmi Verma, textiles secretary, during the inauguration ceremony of the 58th Verma also added that she hopes that theIndia International Garment Fair (IIGF) in Delhi. She also said that a number of exporters have already paid their claims to the customs department and they will be reimbursed from next week onwards. country’s garment and apparel manufacturers will utilise the package for setting up new units to attract more investments, create jobs and emerge as a key player in the international textile market. India has a huge opportunity to grow as china is currently ceding space and the exporters should take full advantage of this opportunity. The special package will ensure a level playing field for Indian exporters in the EU and US markets as the lack of FTA between India and EU countries results in a 9.5 per cent duty on their products. However, delays in the roll out of the special package and stagnation in US and European markets resulted in a 0.2 per cent decline in exports during April – December 2016, as compared to the same period in the previous fiscal, said Ashok G Rajani, chairman of Apparel Export Promotion Council. The special package was approved in June 2016 with a view to create 1 crore new jobs in the next 3 years, generate $30 billion in exports and attract investments worth $11 billion. Union textiles minister Smriti Irani, who inaugurated the fair, said that with 312 participants from 14 states coming together, IIGF is one of the largest platforms in Asia showcasing apparel & accessories. With the presence of 246 registered buying houses, IIGF will facilitate international buyers to source products and form collaborations. Irani also said that more than 1000 buyers are participating in the fair, so that they can leverage the talent that India has to offer. She added that platforms like IIGF are very cost-effective for newly exporting small and medium enterprises which use these platforms very effectively. As many as 1,081 buyers have confirmed from 94 countries across the world for IIGF. India’s fourteen states are participating, with major participating states being Delhi-NCR, Rajasthan, Maharashtra, Uttar Pradesh, West Bengal, Haryana, Tamil Nadu, Punjab, Gujarat and Karnataka.
Source: Fibre2fashion
High indirect costs of trade due to delays and unreliable transportation services account for as much as 38-47% of total transportation and logistics costs, severely undermining the country’s export competitiveness, according to a CII-Maersk study, reports fe Bureau in New Delhi. This gets reflected in the fact that for each container transported to and from India, there is a high variation in lead times of anywhere between 38 and 66 hours. So while India’s transport and logistics costs are at 14.4% of its GDP, China’s stand at just 8%. The indirect costs of trade include various losses caused by spoilage, increase in freight costs as well as penalty due to delay, inventory and storage costs. Based on a case study on four sectors (pharma, textiles and garments, electronics, and auto components), the report says trimming the indirect costs by 10% could potentially generate additional annual exports up to $0.9 billion in pharma, $3.1 billion in textiles, $1.2 billion in electronics and $0.3 billion in auto components. India has jumped 16 places in the World Bank’s Logistics Performance Index this year from a year ago to rank 35th. Since many manufacturing centres are far away from ports, the transportation and other expenses drive up India’s cost to export, compared with other Asian peers. According to a World Bank report, India’s cost to export stood at a massive $1,332 per container, compared with $572 in Indonesia or $525 in Malaysia.
Source: The Financial Express
Small businesses in the country maintain a positive outlook for the future in terms of business confidence and employment growth, a joint report by Facebook, OECD and World Bank today said. Amongst the businesses surveyed, 48 per cent of the small and medium enterprises (SMEs) are positive about the current state, while 62 per cent are positive about the future. Also, while 28 per cent of the SMEs surveyed reported an increase in number of employees in the last six months, 56 per cent anticipate growth in number of employees in the next six months. This study aims to understand the sentiment, activities, and challenges faced by the SMEs. Attracting customers, maintaining profitability and increasing revenue were highlighted as top business challenges by the SMEs. Small businesses are also capitalising on Digital India opportunities. The report found that the more confident the business, the more likely is the use of online tools by them. “The most common uses of online tools were to show products/services (61 per cent); advertise to potential new customers (60 per cent) and communicate with customers and suppliers (55 per cent),” it said. Ankhi Das, Director of Public Policy for Facebook India and South Asia, said given the positive confidence and outlook shown in India, small businesses are clearly capitalising on today’s digital opportunities. “The more we can understand those connections and how they can fuel economic growth, the more we can help,” she added. Small businesses employ close to 40 per cent of India’s workforce, contribute 45 per cent to India’s manufacturing output and nearly 8 per cent of the country’s GDP.
Source: The Financial Express
The Central government will help Assam develop its sericulture sector, said Ajay Tamta, Union minister of state for textiles. This sector helps sustain the livelihood of a chunk of the rural population of the state. He said that a sum of Rs 200 crore has already been released for Assam and additional fund will be provided for developing its infrastructure. There is a need to explore the state’s potential in sericulture, which is an age-old tradition. The government will provide the required support to make it a dominant industry of the state’s rural area, added Tamta while addressing media persons during his visit to the various clusters of Assam. Tamta also said that modern technologies will be made available for farmers and issues like water shortage and garden fencing problems will soon be resolved. Additionally, he also added that the textiles ministry has approved 22 projects as part of the North Eastern Region Textiles Promotion Scheme, with the government sharing Rs 646.53 crore to help develop the production of eri, mulberry and muga silk in this region. Tamta said that these projects are expected to produce additional 1472.44 metric tonnes of raw silk. The minister was also of the opinion that sericulture sector needs to be diversified into a high-yielding economic activity to generate employment and ensure returns to farmers.
Source: Fibre2fashion
Government has relaxed ban on importation of second hand clothes, to allow for revival and reorganization of the textile and clothing industry before the policy can be force. Also at present, there is little alternative to second hand clothes as the local textile industry is struggling to produce. According to Industry Minister Mike Bimha, the policy on banning second hands clothes is there, but cannot be enforced at present. It's a policy that was made with the hope that when they begin to enforce it, they will have improved local production. They cannot ban something unless they do not have an alternative. People need to have an alternative if they have to ban importation. They can only enforce when they believe that they have the capacity to make more or less the same as what they are importing. If they are unable to do, they might as well continue importing. Government has made several attempts to ban the importation of second hand clothes but facing resistance from traders as clothes at flee markets are very cheap. The government now has to revisit the textile and clothing industry to ramp production so that it is able to make quality clothes at reasonable prices. The secondhand clothes have set up a countrywide network where clothes are paraded on the sidewalks and flea markets with items going for as little as a dollar. Dealers has argued that Government’s decision to ban secondhand clothes was premised on the wrong assumption, as industry that was being protected was also importing clothes from South Africa, Zambia and Tanzania. In August 2005, Finance minister Patrick Chinamasa announced the ban of second-hand clothes effective September 1 of that year to protect and allow the local industry to grow as it was being chocked by cheap imports.
Source: Yarns and fibres
Cotton yarn manufacturers to slowdown investment in new capacity addition in the next five years due to sharp decline in exports to China, as local fabric makers slow down purchases. Between FY12 and FY16, the sector added 7.3 million tonnes of manufacturing capacity. By the end of FY16, the manufacturing capacity in the country was 50 million spindles. The rapid growth, however, led to overcapacity, with fresh investment drying up. Capacity addition will slow down as the cotton yarn industry will be adding only about 3 million new spindles between FY16 and FY21 because of overcapacity, subdued demand and lower benefits from the central government after changes to the Technology Upgradation Fund Scheme (TUFS), said Darshini Kansara, research analyst, Care Ratings. Demonetisation-induced cash crunch has forced the closure of smaller spinning mills; slow purchase from China has also forced manufacturers to lower operating capacity. Since 2014, Chinese policy of using its internal resources rather than imports, cotton yarn off-take from the northern neighbour has declined consistently. Rachin Lamba, head, exports, Winsome Yarns said that the Indian cotton yarn market is experiencing overcapacity. Some large manufacturers had initiated their expansion plans but have put them on now. According to the Office of Textile Commissioner, cotton yarn production was 4,138 million kg in 2015-16. High cotton prices and easy availability of manmade fibres at competitive rates led to the slower growth of production of cotton yarn. Production grew by marginal 3-3.5 per cent in FY15 and FY16. The cotton yarn production is estimated to fall by about 5-7 per cent to 3,936 million kg in FY17 on the back of sluggish derived (domestic yarn demand) demand with substitution taking place from manmade fibre as well as distressed direct yarn exports due to lower demand from China. Yarn demand in other export markets including Vietnam, Bangladesh and Pakistan is likely to remain healthy. While cotton yarn exports to China are estimated to remain sluggish, the surge in shipment to other destinations may, by and large, compensate for it. According to the data compiled by the International Cotton Advisory Council (ICAC) estimates India’s cotton yarn exports at 1,250 million kg for FY17 as against 1,309 million kg in FY16.
Source: Yarns and fibres
Textile mills in Tamil Nadu have drastically cut back their cotton procurement from Gujarat, which had long been a hub for premium cotton, in favour of states like Telangana and Maharashtra, in the wake of increased adulteration with substances like comber noil and other cotton waste by Gujarat’s ginners. The Southern India Mills’ Association (SIMA) has also written to the Union textile ministry, seeking intervention in this regard. “Till the year before last, Tamil Nadu’s mills used to procure about 50-60 lakh bales from Gujarat alone. Last year, owing to adulteration, procurement was reduced by almost 60% and shifted to other states. This year, we are seeing a similar trend. Probably the practice of adulteration is only followed by 10% of ginners in Gujarat, but as an association, we are worried about farmers in Gujarat. If prices drop because the products are not quality-compliant, what will the poor farmers do,” said K Selvaraju, secretary general of SIMA. Interestingly, the prices for cotton waste like comber noil, which is used in large quantities for currency printing and medical textiles, have also seen an increase over the last couple of months. From R60 per kg in October, cotton waste is now sold at R80 per kg. Several mills in Tamil Nadu allege this is due to increased demand by ginners in Gujarat, who are looking to mix the waste with virgin cotton. More than 50% of the cotton used by mills in Tamil Nadu are from Gujarat. Selvaraju said: “Tamil Nadu’s mills consume about 120 lakh bales of cotton annually, but only five to six lakh bales are produced by the state. The Tirupur cluster alone requires 60 lakh bales, most of which is sourced from Gujarat. Last year, we had committed to the government that we would bring 20 lakh bales of cotton from Gujarat to Tamil Nadu through coastal shipping. However, not even one third of that quantity was procured by coastal shipping due to bad quality of the cotton. Many of the larger mills, which each require about six lakh bales of cotton, shifted their procurement to Telangana and Maharashtra. This year also, many of our members have said that they will shift to other places.” Meanwhile, ginners in Gujarat are not worried about Tamil Nadu’s mills shifting of purchase orders. Speaking to FE, Dilip Patel, president of All Gujarat Ginners’ Association, said: “Only about 20% of cotton produced in Gujarat is sent to mills in south India. Earlier, the demand was more but now the consumption by local mills has increased along with export orders. By later this year, about 40 lakh spinning units are expected to come up in Gujarat alone, which will increase the state’s consumption to 65 lakh bales.” According to Patel, Gujarat’s Textile Policy 2012, which lapses in September this year, has given a great push to the local market. Patel added: “Adulteration is prevalent in Gujarat, but local mill owners know who to buy it from. So, most people don’t face problems during purchasing. This year, the quality is lowered and the prices are subsequently lower as well. However, the problem is not unique to Gujarat. Even in Maharashtra, people are now beginning to mix waste with the raw cotton.” According to data on the website of the Cotton Corporation of India, Gujarat accounted for production of 94 lakh bales, with a yield of 588 kg per hectare on an area of 27.19 lakh hectare in 2015-16. For the year 2016-17, the production is projected at 95 lakh bales, with a yield of 673 kg per hectare on an area of 24 lakh hectares. SIMA is keen to work with Gujarat’s ginners as a team and curtail the adulteration, rather than shift from the state. “The adulteration in quality cotton pulls down the image of the state. We can omit those traders and mills who mix waste to good cotton, and deal only with the scrupulous ginners. The government and the ginners’ association should work together to find a common resolution,” it said.
Source: The Financial Express
The Modi government “owed” demonetisation to the nation and it had to do it to eradicate black money menace and to bring hoarded cash back into the banking system, Union Minister Nirmala Sitharaman said today. Speaking at a panel decision at WEF on India’s Time to Transform, she said it may sound ‘propagandist’ but one needs a strong and courageous leadership to take such a bold step. On why government felt it was necessary to do the demonetisation, Sitharaman said it was part of the “electoral promise we made to check the black money menace”. “Right after coming to power, we started with setting up the special investigation team, came out with scheme for declaration of undisclosed money, tightened tax treaties with different countries to check round tripping of money. We took all these steps. “This step of demonetisation was absolutely necessary…. 87 per cent of our economy was informal and only in cash-driven segments where money would not go to banks …only about 50 lakh people pay tax and all others who file the returns do not file any tax,” she said. “Can we survive if this kind of tax to GDP ratio continues …. we had to do it, we owed it to the country and we do not regret it,” Sitharaman said. “Even if it sounds propagandist … you need a strong and courageous leadership to take such a bold step,” she said. The panel discussion, on theme of India’s turn to transform, also discussed the fight against corruption and black money including through the recent demonetisation move.
In the same panel, Kenneth Rogoff said the same step could have been done in a more systematic manner. On why it could not have been done with more public planning, Sitharaman said it could have been done but Indians are “smart” and they would have “sensed” it and people could have stashed the money somewhere. SBI Chief Arundhati Bhattacharya said what was amazing that there were huge crowds outside banks but still there was no riot or any loss of life and the fact is nobody took law and order into his hands is amazing. “I receive complaints of misbehaviour otherwise everyday but this was one period when there was no single complaint. This was a different feeling and I don’t know how it came around,” Bhattacharya said. She agreed that psychologically people agreed with the move. Bhattacharya said queues are a thing of past in urban areas though a few are still there in some rural areas. “What the problem really is, there were many small and medium businesses that were earning profit but were not paying tax. They feel their margins would not give them ability to carry out business post this and they are worried”. “This is one India where we will need to convince them that they come into the tax net if they are earning enough for paying taxes,” she said. From 2006 and 2016, the portion of high value notes went up considerably to 86 per cent, she added. Sitharaman said no part of the country faced any problem because the ministers and officials were moving around the country to take stock of situation and to take necessary measures throughout this 50-day period. “I am absolutely shocked and I pay my respect to my fellow citizens for going through the hardship and be part of this exercise,” she added. Argentina’s central bank governor Sturzenegger said they have been thinking about such a step for quite some time, that is to phase out high value notes, and he admires India for taking this bold step. Regarding Argentina, he said, there was also a problem of security and robbery, because of which they have been thinking about it. Besides, they were also concerned about the high costs attached to printing of currency notes and the current system was subsidising cash. “About three years ago, we took a quick decision regarding payment of bus systems when we phased out coins and asked people to use cards and the exercise was very successful leaving us with huge amount of coins that people were not willing to take. “We also asked the banks to digitise money following which networks came into operation across various banks and it worked pretty well because of high penetration of smart phones,” Sturzenegger said. Now the next step is to push the people to use digital accounts, he said, while adding that Argentina is taking ideas from Sweden in this regard. Argentina’s central banker, however, said they were not very “keen on surprising people” and their focus was more to move the economy to “more formal economy”. On the ‘surprise element’, Sitharaman said it was a “one-time attack on the stock” and it worked as the stock came back to the banks. “The moment the money has come into banks, it is no more anonymous and it has to be identified with somebody. In India, unaccounted cash or black money is a major issue … You have to think that the cash to GDP ratio was very high, unlike Argentina where this ratio was very low,” she said. She said India has a great mobile penetration, though not only of smart phones. Even for those not having smart phones, the mobile app we have come out with is very popular and the USSD function doesn’t depend on internet connectivity and can be used by just SMS. She said some people in Delhi and metros are still skeptical but vegetable sellers and others in villages are very comfortable with the mobile and app based payments. Carmen M Reinhart, Professor at Harvard Kennedy School of Government said she concurred with the view that it was “short run pain and long run gain”. She said she tried to look for comparable experiments when the move was announced in November, she found there were small cases of some countries phasing out high value notes. Reinhart, however, said she still has a “pet peeve” at the way it was handled — that is India is also undertaking another extremely bold step of GST and I would have preferred it to be done after GST was done deal. She agreed with the fears that the GST rollout could be impacted by the demonetisation move. Bhattacharya said some implementation issues were there and to study all the accounts that could have been used (to launder money) is a humongous task. “To say how much successful it has been, it needs to be seen how things pan out. We are already seeing a huge surge in the quantum of card transactions. But the day the ATM limits were raised to Rs 10,000, the card transactions began to fall,” she said. Kenneth Rogoff, Harvard University Professor said one also needs to follow it up to realise the long term benefits. Sitharaman, on whether GST could have been done earlier, said the GST is going through a process and the government is confident it will get through from July 1. She said there was a view that the GST was going though a process and it depended on so many other things including about states agreeing to it, while on the other hand the black money problem was a electoral promise.
“There was no choosing between the two,” she said.
About steps being taken to improve the ease of doing business, Sitharaman said the government is “at it” and is an ongoing work. She also emphasised that the major enabler is the “digitised approach”. According to her, it is not possible today that the country would go back to the time when tax inspectors could harass people.
There are some automated process with minimum human interface, that throws out names and only those entities need to explain to the tax department. Such cases could be inspected further, she added. “In no way we will be going back to the inspector raj,” she asserted. NITI Aayog CEO Amitabh Kant said India is on the cusp of a major revolution as one would need just his thumb to transact and this has not happened anywhere in the world and would leave cards and POS machines etc totally redundant. Every single mobile will have a thumb and iris impressions that will make each one of us a walking ATM, he added. Bhattacharya said it is very much possible but added that banking system will still grow as the proposed measures would only take care of payment transactions and the banks are much more beyond that.
Budget 2017
Source: The Financial Express
Dmonetisation: FY17 credit growth could slip to 6%:Jefferies Why DCCBs are a weak link in rural credit outreach Demonetisation: Problem of plenty for RBI as banks park record Rs 4.32 lakh crore Demonetisation impact on banks: Asset quality risks will show only in Q4 Axis Bank: Sentiment will take a while to improve In the eight weeks since demonetisation, banks have lent just over Rs 60,000 crore which is way below Rs 2,66,900 crore banks disbursed in the same period last financial year (FY16). According to Reserve Bank of India data, the outstanding loans of the banking systems stood at Rs 73,53,280 crore at end of November 11, 2016. It rose to Rs 74,13,415 crore by January 6, 2017. Banks executives said while the demand for credit before November 8 was weak, the economic shock from demonitisation has further hit demand and business sentiment. The year-on-year growth in credit was 9.1 per cent before the decision to abolish legal tender status for old high value notes of Rs 500 and Rs 1,000 crore was taken on November 8. The pace of credit offtake slipped to 5.14 per cent by January 6, 2017. This has made many banks rework their credit growth targets for 2016-17. State Bank of India Chairman Arundhati Bhattacharya said earlier that her bank had indicated a credit growth of 11-12 per cent in FY17 which will now grow at 8-9 per cent. Private sector lender Axis Bank in its conference call after announcing third quarter results indicated moderation in credit growth for the current year. The story for deposits is exactly the opposite. Banks saw an elevated flow of deposits at Rs 4,69,371 crore in the eight weeks after demonitisation. The outstanding pool of deposits was Rs 1,05,84,171 crore as on January 6, 2017, up from Rs 1,01,14,800 crore.
Source: Business Standard
The number of airports to which regular flights will soon start operating will touch 118 from 75 at present as operators are keen to start flights to 43 more airports to which there are no flights at the moment, Jayant Sinha, Minister of State for Civil Aviation said on Thursday. “UDAN is a game changer and a step changer for Indian aviation. Today we have about 75 operational airports. Through the bids that we have received, it appears that 43 new airports will be joining the aviation network once UDAN becomes operational in a month or two,” the minister said.UDAN is a new scheme through which the government hopes to make flying viable to tier II and III cities for the common man. A clearer picture is likely to emerge on February 3 when the government selects the bids for operations on these routes. The scheme will open up 43 new airports. Thirty currently served airports, 12 underserved airports and 50 unserved airports will be covered under UDAN.
Scheme launch
An airport at which there are no more than seven scheduled commercial flight departures a week is termed an underserved airport while an ‘unserved airport’ is any airport at which there have been no scheduled commercial flights during the last two flight schedules approved by the DGCA. The minister expressed confidence that UDAN scheme can take off in February itself as underserved airports are also being covered under the scheme. “Pant Nagar is a good example. We already have flights there. We already have service from Delhi and Pant Nagar and Dehra Dun can open up. These kinds of services can be started very quickly and we expect some to start in February itself,” he said.
Geographical spread
Besides, there are airports such as Jaisalmer, Bikaner, Jalgoan and Akola that are “ready to go” for which bids have been received and as soon as operators get their permits and certifications, these airports can be activated, Sinha said. The minister indicated that there was a good geographical spread for the proposals with 16 airports in South India are proposed to be connected, while 32 airports in the western region, 12 in eastern region and 11 in north-eastern region too are proposed to be connected. In South India, proposals have been received for operations to seven served airports, seven unserved and two underserved airports. They include proposals for two served airports and four underserved airports in Karnataka and three unserved airports and one served airports in Tamil Nadu. In Tamil Nadu the airports for which interest has been shown include Hosur, Neyveli and Salem. Andhra Pradesh, Tamil Nadu and Telangana are among the states for which proposals have been received.
Source: Business Line
The European Union is keeping India guessing on its intention to resume talks on the proposed two-way free trade pact. This is a possible indication of EU’s unhappiness over India’s refusal to extend the existing bilateral investment treaties (BIT) with the region beyond their expiry dates. More than a month after the Commerce Ministry sought dates to re-start the stalled negotiations, there has been no communication from the EU Trade Commissioner’s office on the matter, a Commerce Ministry official told BusinessLine. “There is complete silence from the EU’s side on resuming the negotiations despite Commerce Minister Nirmala Sitharaman seeking dates from the EU. It has been more than a month,” the official said. Last year, New Delhi had asked all countries with which India has investment protection agreements, including the EU, to re-negotiate those pacts on the basis of the new draft text of BIT. The draft text has been designed by the Finance Ministry to avoid a string of litigations that India has been facing over the last few years from global companies, but it has not gone down well with partner countries. The EU did not get into negotiations with India to replace the existing individual BITs that the member countries individually have with India (which have already started expiring) with a single treaty encompassing the entire bloc, and is now feeling the pressure. “The EU said that the existing BITs should be extended till a new one is in place and it should precede the rest of the FTA being negotiated with India. The Finance Ministry refused to extend the treaties and now the EU is upset,” the official said. New Delhi has communicated to Brussels that the proposed FTA — formally known as the Broad-based Trade and Investment Agreement (BTIA) — should be negotiated fast and as a BIT would also be part of the broad pact, it would sort out the problem at hand. Negotiations on the FTA have been stuck for the past few years due to disagreement between the two sides over issues such as lowering of import duties on automobiles and alcohol by India and recognition of India by the EU as a ‘data-secure’ country. “It seems that the EU is communicating to India its unhappiness with the arrangement on the BIT by delaying a response to our request on negotiating dates for the FTA talks,” the official said.
Source: Business Line
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 53.18 per barrel (bbl) on 19.01.2017. This was lower than the price of US$ 54.09 per bbl on previous publishing day of 18.01.2017.
In rupee terms, the price of Indian Basket decreased to Rs. 3625.68 per bbl on 19.01.2017 as compared to Rs. 3674.91 per bbl on 18.01.2017. Rupee closed weaker at Rs. 68.18 per US$ on 19.01.2017 as compared to Rs. 67.94 per US$ on 18.01.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on January 19, 2017 (Previous trading day i.e. 18.01.2017) |
Pricing Fortnight for 16.01.2017 (Dec 29, 2016 to Jun 11, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
53.18 (54.09) |
54.24 |
|
(Rs/bbl |
3625.68 (3674.91) |
3691.57 |
|
|
Exchange Rate |
(Rs/$) |
68.18 (67.94) |
68.06 |
Source: PIB
China and the United States can resolve any trade disputes through talks, the government said on Thursday, as a Chinese newspaper warned U.S. business could be targets for retaliation in any trade war ushered in by President-elect Donald Trump. Trump, who is sworn into office on Friday, has criticised China's trade practices and threatened to impose punitive tariffs on Chinese imports. Billionaire investor Wilbur Ross, Trump's choice for commerce secretary, voiced sharp criticism of China's trade practices on Wednesday, telling senators he would seek new ways of combating them. Chinese Commerce Ministry spokesman Sun Jiwen said the government was willing to work with the new U.S. administration to promote the healthy development of commercial ties. "I believe China and the United States can resolve any disputes through dialogue and negotiation and that the China-U.S. commercial relationship will not significantly stray from the path of mutual benefit," Sun told reporters. "Both sides benefit with cooperation, and both are hurt with conflict," he added. Chinese Foreign Ministry spokeswoman Hua Chunying said any disputes should be resolved via constructive talks, to avoid any miscalculations. "We look forward to working hard with the new U.S. government, adhering to no clashes and no confrontation," she told a separate briefing. But a high-powered economist and a widely-read state-run newspaper took a harsher line. Chen Wenling, chief economist at the China Centre for International Economic Exchanges, an influential think tank with close government ties, said China does not desire a trade war but it is certainly not afraid of one.
"If you want a fight, then we will fight and we will fight to the end," Chen said. "But the U.S. will be the first to be injured and their injuries will be more severe," she said, adding that China could "definitely defeat the U.S." In an editorial, the Global Times said that as the United States has the stronger economy, China may suffer more once a trade war starts, but China "will take the U.S. on to the end". "There are few cases in modern history where only one party surrendered in a trade war rather, the two parties ended up compromising with each other. How could Trump's team believe China would surrender without any countermeasures?" it said. "The arrogant Trump team has underestimated China's ability to retaliate. China is a major buyer of American cotton, wheat, beans and Boeing aircraft," the paper added in the editorial carried in its Chinese and English-language editions, without elaborating. In November, the Global Times warned that China could switch large orders from Boeing to Europe, Apple phones would "essentially be crowded out" and U.S. soybeans and corn banished from China if Trump creates problems for China on trade.China is the world's top producer and consumer of cotton and top buyer of grains such as soybeans to feed its vast livestock industry.
Source: Reuters
First and foremost, the issue is of affordability. Given todays rapidly changing technology not to mention the gradual devaluation of the Rupee over the years machinery now costs more than it did before. Low availability of credit to the private sector makes it difficult to undertake such costly investments. Moreover, most exporters are already facing liquidity issues due to pending refunds from the government. Thus, the emphasis of our industry is and always has been short term (Read: Innovation and productivity: thinking beyond costs, published January 10, 2017). Secondly, more machinery means a higher energy requirement. The government needs to start speedy facilitations for new industry connections. According to the World Banks Doing Business index, Pakistans DB rank for 2017 in the Getting Electricity factor has fallen by seven places to 170 the largest decline year-on-year among the ten indicators, and the second-worst of all (after Trading across Borders, ranked 172). Thirdly, higher energy requirements mean that tariffs would also need revision. Indeed, one of the key points that the export package didnt address was bringing down the energy tariff, which is the highest in Pakistan among its south Asian competitors and one of the key bones of contention between the industry and the establishment. We also know that there are no major domestic manufacturers of textile machinery. An industry source told BR Research that by and large (roughly 80 percent), machinery in Pakistan is imported. This machinery is also cost-efficient and consumes low electricity. So, imports will do just fine, and the removal of taxes and duties on this machinery is a very welcome move. But the above structural issues would need to be addressed in order for the imports to really take off. BR Research spoke to former KCCI President Majyd Aziz, who suggests that the government should go one step further and encourage the import of new machinery rather than old. There should be some advantages or attractions for those individuals that import brand new machinery rather than used. Machinery, after all, is a one-time expense it increases capacity, production, and productivity, and should not be compromised.
Source: Business Recorder
Together with the Australian government, Cotton Australia and the Better Cotton Initiative (BCI) plan to train 225,000 Pakistani cotton growers, starting with the 2017 cotton season, to achieve improved environmental, social and economic benefits in line with the Better Cotton Standard System. The partnership will deliver practical tools and the latest environmental and cutting-edge management practices aligned with internationally recognised quality assurance for sustainable cotton production. After China, India and the USA, Pakistan is the fourth largest producer of cotton and as an important export good, dedicates 15 percent of its agricultural land to it. Pakistan also holds the third largest spinning capacity in Asia (after China and India) with thousands of ginning and spinning units producing textile products from cotton. For BCI, Pakistan is thus a key strategic country in which the organisation has been active for many years. “This collaboration will deliver tangible value to cotton farmers in Pakistan as they gain access to the vast body of deep knowledge on good agricultural practices held by Cotton Australia, as well as being able to participate in BCI training programmes to promote more sustainable farming practices. At BCI, we’re excited to be able to link up our partners across the world, with the aim of benefitting the global cotton sector,” commented BCI's COO Lena Staafgard. The Australian government has committed 500,000 Australian dollars (around 376,000 US dollars) to this project, which will be supported through the Australian aid program’s Business Partnerships Platform. BCI's Growth and Innovation Fund will match the contribution with 2.4 million Australian dollars (around 1,8 million US dollars). The Fund, however, is financed by BCI Retailer and Brand members like Adidas, IKEA, H&M, Levi Strauss & Co, Marks & Spencer, Cotton On, Tesco, Sainsbury’s, Tommy Hilfiger and Nike. “Australian cotton farmers are happy to share knowledge and experience to assist other cotton producers (in this case Pakistani) improve their sustainability, as this gives brands and retailers the confidence to use cotton in their products. More and more global brands and retailers only want to source cotton that has been responsibly produced,” confirmed Cotton Australia's CEO Adam Kay.
Source: Simone Preuss
A provisional countervailing duty ranging from Rs 26.89 to Rs 55.8 a kilogram has been imposed on Indian fine cotton yarn entering Pakistan. The duty will apply on the import of cotton having 55.5 or more counts originating or imported from India, for a period of four months effective from January 18, 2017, the National Tariff Commission (NTC) said. The NTC, under ministry of commerce, Government of Pakistan, has opened an investigation in April last year under the Countervailing Duties Act of 2015, on the basis of a complaint filed by the All Pakistan Textile Mills Association (APTMA). For investigation, three Indian fine cotton yarn (carded or combed) manufacturers were examined for determining subsidies on the basis of the information provided by them and the Indian government. The investigation concluded that subsidised imports had hurt the domestic industry as they suppressed domestic prices. “Subsidised imports of the investigated product (fine yarn) adversely affected market share, sales, profits and profitability, cash flows, inventories return on investment and ability to raise capital of the domestic industry,” NTC said. Imports from the three Indian exporters who were investigated by the NTC will attract duty of Rs 26.89, Rs 50.81 and Rs 48.10 per kg, while all other imports of fine cotton yarn will have to pay a duty of Rs 55.8 per kg. However, fine cotton yarn imported from countries other than India and cotton yarn with less than 55.5 counts would not be subject to the provisional countervailing duty, NTC said. Duty would also not be levied on products that are to be used as inputs in products destined solely for exports.
Source: fibre2fashion
A changing global political climate, improved relations between countries, and steps toward gender equality in the workplace are some of the factors currently shaping the African and Asian textiles industry. Details on the empowerment of textile workers across the world are some of this week's featured stories onBizVibe, a B2B marketplace that allows users to connect with more than 7 million companies around the globe. Minimum wage increases for textile workers in Nigeria The National Union of Textile, Garment and Tailoring Workers of Nigeria (NUTGTWN) and the Nigeria Textile Garment and Tailoring Employers Association (NTGTEA) signed the 46th National Collective Agreement in late December 2016, increasing the minimum wage for textile workers by 13 percent to Nigerian Naira 32,000. This wage hike will enable workers in the textile industry to better face the struggles associated with Nigeria's current economic recession. Collective bargaining has proven to be extremely effective in achieving wage increases for workers in this industry, having resulted in an overall wage increase of 46 percent since 2012. Work in the textile industry is empowering women in Bangladesh Bangladesh's textile industry is labor-intensive and contributes around 20 percent of the country's GDP. The textile industry is an essential part of Bangladesh's economy and requires a large number of skilled workers. Ninety percent of employees in Bangladesh's textile industry are women. Jobs in the textile industry allow women in Bangladesh to become economically empowered. As the technologies used in the industry become more advanced, more women will be employed, allowing them to make financial contributions to their households, earn their own wages and become financially independent. Reduced sanctions on Myanmar will revive textile industry The United States's recent decision to lift economic sanctions on Myanmar is expected to help revive the country's stunted textile and apparel industry and boost the economy. This will also create countless jobs, improving the quality of life for textile industry workers and giving many others new opportunities for employment. The US is expected to grant Myanmar GSP benefits in the near future, which will create further growth opportunities for the textile and apparel industry. As of early 2016, there were approximately only 200 textile and apparel factories left in Myanmar. However, over the last year, more than 15 foreign companies have entered the textile and apparel market in Myanmar, and many more are expected to follow.
Source: Apparel Magazine
The target was announced by Le Tien Truong, the general director of Vietnam National Textile and Garment Group (Vinatex). Truong said the development of the textile and garment market at home and abroad would continue improving due to growth in the US economy, which would spur consumption. This favourable background would support the domestic textile and garment industry in reaching its export target this year. “To reach this target, the industry needs a strong performance by enterprises and the expertise of management to support the industry’s development,” Truong told the Vietnam News Agency. Truong added that improvements in infrastructure would also support this goal. Further, enterprises should improve productivity, reduce cargo delivery times and strengthen distribution systems to international markets, the official said. He said garment and textile enterprises have received enough orders to keep them busy for the first quarter of this year. However, he was concerned that Vietnam’s garment and textile sector would face challenges, including a lack of support on tax policies, and that several important trade deals, such as the EU-Vietnam free-trade agreement will not take effect in 2017. Further, the proposed Trans Pacific Partnership is under a cloud amid a transition to the Trump administration in the US. He said competition would become fiercer as other countries try to attract orders thanks to advantages in tax and exchange rates, he said. Instability in the EU economy may also affect the garment industry in Vietnam. Notwithstanding that, the industry was optimistic about the benefits of the EU pact and Vietnamese companies were preparing to make the most of the opportunities, the official said. The trade deal with Europe comes into effect in 2018. After the FTA is in place, Vietnam could compete with other countries exporting garments to the EU through the Generalised Scheme of Preferences (GSP), which allows developing countries to pay less or no duties on some exports to the EU. Countries that enjoy these benefits include Cambodia, Bangladesh and Myanmar. Meanwhile, other bilateral and multilateral trade agreements will bring more opportunities in exporting textile and garment products to small and medium-size enterprises, Truong said. In 2016, Vietnam’s garment industry saw lower than expected results, with $28.3 billion in exports, up 5.7 percent year on year, Truong added. Vinatex earned more than $2.5 billion, an increase of 5 per cent over 2015, with a pre-tax profit of over 41 trillion dong (Bt64.3 billion) on a 5 per cent year on year increase. Also, its employees’ average income rose 8 per cent over the previous year, to reach 6.7 million dong a month. Last year was a challenging one for the industry worldwide. Major importers, including the US, the EU and Japan, experienced low or decreased demand for garment and textile products, Truong said.
Source: VietNam News,
An exhibition focused on textiles opened Jan. 19 at The Art Museum of WVU, with a program featuring three of the seven highlighted artists. Co-curators Kristy Deetz, professor in art discipline at University of Wisconsin at Green Bay, and Reni Gower, professor in the painting and printmaking department at Virginia Commonwealth University, were joined by Virginia Derryberry, retired from the art department at the University of North Carolina Asheville, to discuss historical precedents, contemporary examples, inspirations, shared themes and individual motivations behind the exhibition. Deetz, Gower and Derryberry are featured in the exhibit, along with artists Erin Castellan, Rachel Hayes, Susan Iverson and Natalie Smith. Funding for the exhibit, called “FABRICation,” was made possible in part by Virginia Commonwealth University, VCUarts and the Painting and Printmaking Department. Support for the exhibition at WVU was provided by Friends of the Art Museum, a membership group for people who enjoy the arts, and social, educational and cultural activities centered on art. Program underwriting was made possible by the Judith Gold Stitzel Museum Education Fund.
Source: Yarns and fibres
