New Delhi: The government has advised all state-run firms and autonomous bodies to seek clearance before accepting any invitation on the One Belt One Road (OBOR) forum being held in Beijing, China, in May. The multi-billion dollar One Belt One Road (OBOR) is a Chinese initiative in expanding regional connectivity and cooperation with the rest of Eurasia. Most analysts have dubbed the initiative as a geopolitical move. “It is learnt that some autonomous bodies were looking to participate in the event. One of the proposed routes is to pass through Pakistan occupied Kashmir (PoK), and the government feels that any participation from India will send a politically wrong message,” said a government official aware of the developments. The government directive states that any firm which seeks to participate or has been invited for the said event needs to get a clearance first. “This would be vetted by the home ministry in consultation with all agencies including the ministry of external affairs,” the above quoted official said, adding that the newly formed Asian Infrastructure Investment Bank (AIIB) cannot also lend to some of these projects. “There is a clause which states that project in any disputed area cannot be taken forward without agreement of the parties involved,” he said. Another government official said that India at the highest levels has already shown its displeasure over the route undermining the sovereignty of any county and maintained that OBOR is a Chinese initiative with limited role of other countries. In February 2017, India’s foreign secretary S Jaishankar had expressed reservations on the Silk Road summit, as it is being called, citing that the $ 46 billion ChinaPakistan Economic Corridor passing through PoK violates its sovereignty. “The fact that China Pakistan Economic Corridor (CPEC) is part of this particular initiative and CPEC violates Indian sovereignty because it runs through Pakistanoccupied Kashmir (PoK),” Jaishankar had noted. India has already pointed out that it is a pro-connectivity country. “We have connectivity initiatives with all sides and we are active participants (in) most of them,” Jaishankar had said, highlighting India’s participation in Myanmar’s Kaladan project and Chabahar port project with Iran. ET had earlier reported that India is already working closely with Russia to develop International North South Transportation Corridor (INSTC), a network that is expected to provide faster and more efficient trade connectivity between Europe and Southeast Asia.
Source: Economic Times
Industrial production fell to a four-month low in February as manufacturing sector lagged behind, while retail inflation hit a five-month high in March though food prices cooled down. Data released on Wednesday revealed that the Index of Industrial Production (IIP) declined by 1.2 per cent in February. It had risen by 1.9 per cent in February last year. The IIP data for January was also revised up to 3.27 per cent from 2.74 per cent in the provisional data released last month. “The cumulative growth for the period April-February 2016-17 over the corresponding period of the previous year stands at 0.4 per cent,” said an official statement. The cumulative growth in IIP was 2.6 per cent for April to February 2015-16. While mining sector grew by 3.3 per cent in February as against 5.5 per cent a year ago , manufacturing contracted by 2 per cent (0.6 per cent growth) and electricity production expanded by a mere 0.3 per cent in the month as compared to 9.6 per cent growth in February 2016.In terms of industries, 15 of the 22 industry groups in the manufacturing sector contracted during February. Amongst use-based classification, basic goods grew 2.4 per cent in February this year, against 5.25 per cent in January. Capital goods production, which denotes investment, however contracted by 3.4 per cent in February (10.93 per cent growth in January) and intermediate goods also contracted by 0.2 per cent (1.96 per cent contraction in January). Consumer goods also contracted by 5.6 per cent in February with similar contraction in both durable and non-durable segments. While durable goods contracted by 0.9 per cent, non-durables contracted by 8.6 per cent in the month under review. Noting that the manufacturing sector continues to languish, Sunil Sinha, Principal Economist, India Ratings, said, “The overall macro-economic environment is conducive for growth but there are cyclical/structural factors both at the global as well as domestic level which is making the industrial/ manufacturing recovery a long drawn out process leaving one to wonder when will we reach the end of tunnel.”
Retail inflation
Meanwhile, retail inflation rose marginally to 3.81 per cent in March from 3.55 per cent in February 2017. It was 4.83 per cent in March last year. The data comes soon after the monetary policy review last week when the Reserve Bank of India had retained the repo rate at 6.25 per cent due to upside risks to inflation and excess liquidity in the system. With analysts expecting a further rise in inflation in coming months, most are ruling out a cut in interest rates. “Given the way inflation has panned out in recent few months… we are in for a long pause on policy rates and in case monsoon behaves abnormally then even a reversal in rate cycle,” Sinha said. Consumer food price inflation however, eased to 1.93 per cent in March as compared to 2.01 per cent in February. Amongst food items, prices of pulses dipped by 12.42 per cent while retail inflation in vegetables contracted by 7.24 per cent. However, in line with global trends, retail inflation in the category of fuel and light shot up to 5.56 per cent in March compared to 3.9 per cent in February.
Source: The Hindu
IT and Textile Minister K T Rama Rao on Wednesday directed the officials to give the government subsidy to the weavers through Aadhaar and biometric system. The Minister reviewed the functioning of the Textile Department here on Wednesday. The Minister said that no other government had allocated funds like the TRS for the weavers’ community. He said that all the benefits would be provided to the weavers directly. He further said that there would be a directory at the state-level which would have the statistics like number of weavers, number of looms of the weavers, their production capacity etc.The Minister said that the government was trying to provide all the benefits directly to the weavers.In order to avoid the leakages, the government would soon link all the benefits to the Aadhaar and biometric system. The officials were asked to prepare policy to see that the pension of the weavers is deposited in to their bank accounts. He directed the officials to have unique policies for the benefit of the weavers as desired by the Chief Minister K Chandrashekar Rao.The Minister was informed that there were 17,000 weavers’ looms in the State and Geotagging were completed for the 14,300 looms. The Minister said that the primary objective of the government was to save the weaver community. The government would provide support to the weavers if they want to go into other sector if the textile sector was not providing any benefit, said the Minister adding that the weavers would be given loans on special subsidy.The Minister told the officials that government should play the role of master weaver, with which the small weavers would have more benefit. He said that the government was providing 50 per cent subsidy to the weavers for procuring the yarn. The Minister inquired on how the procurement was going on in the cotton, polyester, silk, wool and other yarn and also wanted to know what changes can be made.
Source: The Hans india
India's technical textiles market, currently estimated at Rs 1 lakh crore, is expected to grow at 12 per cent per annum, according to a study. The size of technical textiles market is currently estimated at Rs 1 lakh crore and it is expected to grow at 12 per cent per annum. The country is expected to play a key role in shaping the future of the sector by diversifying towards non-woven technical textiles and forging global partnerships with counterparts, said the report by top industry body FICCI. An international conference on technical textiles, `Technotex-2017', began here today. The three-day meet has been organised by Federation of Indian Chambers of Commerce & Industry (FICCI) and Ministry of Textiles. "Technical textile offers immense potential and has been termed as a sunrise industry in India. With sufficient investments into the technology, the industry would grow exponentially. "Karnataka and Maharashtra governments have put in ample efforts to utilise their resources and unleash the potential in the textiles sector," Karnataka minister for textiles Rudrappa Lamani said at the meet. The conference-cum-exhibition this year has drawn in more than 165 exhibitors, who are showcasing a varied collection of technical textiles. The meet, where 22 countries are participating, has pavilions of China and Taiwan. Exploring bigger business opportunities with India, eight Taiwanese companies producing high-end innovative technical, functional, performance and industrial textiles and accessories showcased their products at the exhibition. "Taiwan's textile sector is the leader in technology innovations and manufacturing in the world and it can fulfil India's requirements. "We are confident that collaborations between Taiwan and Indian companies will lead to better trade relations," Taiwan Textile Federation Vice-President Judy Yang said.
Source : DNA
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$ 54.55 per barrel (bbl) on 11.04.2017. This was higher than the price of US$ 54.35 per bbl on previous publishing day of 10.04.2017. In rupee terms, the price of Indian Basket increased to Rs.3520.72 per bbl on 11.04.2017 as compared to Rs. 3502.64 per bbl on 10.04.2017. Rupee closed weaker at Rs. 64.54 per US$ on 11.04.2017 as compared to Rs. 64.44 per US$ on 10.04.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on April 11, 2017 (Previous trading day i.e. 10.04.2017) |
Pricing Fortnight for 01.04.2017 (March 13, 2017 to March 29, 2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
54.55 (54.35) |
50.06 |
|
(Rs/bbl |
3520.72 (3502.64) |
3275.43 |
|
|
Exchange Rate |
(Rs/$) |
64.54 (64.44) |
65.43 |
Source : PIB
With the government keen to keep prices under check, most commodities are likely to be taxed at rates closest to their existing rate structure under the Goods and Services Tax. “Most goods as well as services will be taxed at the slab of 18 per cent to 22 per cent,” said a person familiar with the development, adding that this will be especially followed in the case for inputs. But, exceptions in the form of goods such as high-end electronic and consumer durables, gourmet food items and gold could be there, where the tax liability under GST could be marginally higher than the existing rates. Food items, especially those of mass consumption will continue to attract nominal tax rates under GST. Similarly, while most services will be taxed at a higher rate of 18 per cent as against the current rate of 15 per cent, exceptions such as road transport are likely to continue which will be taxed at the existing rate that includes abatement. Some including education, healthcare and even pilgrimage related services will continue to enjoy exemptions. These are understood to be some of the key proposals under consideration as the committee of State and Union Finance Ministry officials work on the fitment of commodities in the four-tier rate structure under GST. The Council in its meeting in November had agreed to a four-rate structure under GST of 5, 12, 18 and 28 per cent. The Council in its next meeting on May 18 and 19 is expected to review the fitment of commodities though officials said that another round of meetings may be required before the rates will be finalised. The proposal is understood to be in line with the general view that goods and services will not become costlier under GST. Further, it will also take care of demands of some States that had said that luxury or high end items should not attract very low rates under the new tax regime. Fitment taking time “The exact fitment of commodities will still take some time as the process is under way. But the general view is that consumption should not be impacted due to higher taxes,” said a person familiar with the development. Tax experts pointed out that if the rates of central excise duty and value added tax were simply added under GST, the incidence on most commodities would significantly increase. For instance, items such as refrigerators, washing machines, air conditioners attract 12.5 per cent central excise duty and 14 per cent VAT. When added, this would indicate a GST rate of 28 per cent. But, at present, these items also get abatement on central excise, which makes the effective rate close to 8 per cent. “Mathematical equation for computing tax rates under GST should not be applied as it is unless effective excise rate after abatement for MRP based products, goods for common man are factored in properly otherwise it will make items more expensive. Also if services are taxed at 18 per cent, it will add to inflation,” said Bimal Jain, Chairman, Indirect Taxes Committee, PHDCCI. Agreed Pratik Jain, Leader (indirect tax), PwC, and said, “The proper method would be to compute the central excise duty on the abated value, else most goods could fall under the 28 per cent slab as the government is looking at fixing the closer to the current rates.” Experts also noted that the government has retained the power to levy cess on additional items under GST, which is making the industry worried.
Source: Business Line
The currency has appreciated more than 5% against the US dollar in 2017, much more than some of its competing peers. In a four-part series, Business Standard looks at the impact of a strong rupee on India’s key export-oriented sectors, starting with textiles and apparels. The rupee’s appreciation by over 5 per cent against the dollar in 2017 is hurting exporters even as competition from Bangladesh, Vietnam and China has over the last several years subdued growth of Indian textile and apparel exports.Exporters said the rupee’s strength had shrunk their margins and they were worried about further declines if the trend continued. “Since this seems a temporary phase, we should be able to bear the impact. We will be able to calculate the effect on our margins if the rupee appreciation continues for some time," says OP Lohia, chairman and managing director, Indo Rama Synthetics. Exports constitute 20 per cent of the company’s Rs 2,100 crore annual revenue. The dearer rupee also makes yarn, fabric and garment imports cheaper, hurting local manufacturers. India’s textile exports are worth $50 billion, of which almost 70 per cent is dollar denominated. Meanwhile, currency depreciation in some of India's competitor nations like China, Vietnam and Bangladesh make their exports more competitive (see table). The apparel industry has hardly seen any growth in its $17 billion exports. Export margins in apparels tend to be 2-4 per cent in dollar terms, and the rupee appreciation has almost washed these away, say exporters. "Exports are becoming uncompetitive and imports from Bangladesh and other competing countries are becoming cheaper. The impact on revenue will become critical in a month or so," says Rahul Mehta, president of the Clothing Manufacturers’ Association of India. In the knitwear hub of Tirupur in Tamil Nadu, exporters fear they may lose orders to neighbouring countries. Tirupur is a sourcing hub for Walmart, Ralph Lauren, Diesel, Tommy Hilfiger, H&M and Marks & Spencer. "We are at a 10-12 per cent price disadvantage. With the rupee appreciating this gap has widened by another 4-5 per cent," says Raja M Shanmugham, president, Tirupur Exports Association. An exporter supplying to one of the top three retailers in the US says his buyer prefers cheaper Bangladeshi textiles. “I have let go of my margins but I am still unable to compete with Bangladesh's manufacturers," he says. With government support on all fronts, says another Tirupur exporter, apparel units in Bangladesh are doing everything to arrest the outflow of orders. Indian textile companies have been caught off guard by the rupee appreciation and most of them have large exposure to dollar-based trade. “The cost of production, including minimum wages, has gone up by 15-20 per cent, making our exports uncompetitive," Mehta adds. Shanmugham says the goods and services tax, which is expected from July 1, will have a further impact on exports as duty drawbacks will be curtailed, adding more pressure on the textile industry.
Balancing Act
Rupee appreciation by 6-7% will shave off export margins of 4-5%With imports getting cheaper, domestic textile industry too becoming uncompetitiveApparel exports have more or less remained stagnant at $17 billionPrice disadvantage of 10-12% worsens with rupee appreciationOver 70% of textile exports are in dollarsRising cost of production makes exports in euro and other currencies too uncompetitive
Source : Economic Times
Malcolm Turnbull, who returned to Canberra on Thursday following his visits to Mumbai and New Delhi, told the Australian Broadcasting Corporation that, at this point in time, a free trade agreement was not viable. Australian Prime Minister Malcolm Turnbull on Thursday said it might not be possible to reach a free trade deal with New Delhi, despite his and Indian Prime Minister Narendra Modi’s attempts to revive talks. Turnbull visited India earlier this week, meeting with business leaders and politicians in the hope of furthering talks about striking a free trade deal between the two nations. Turnbull, who returned to Canberra on Thursday following his visits to Mumbai and New Delhi, told the Australian Broadcasting Corporation that, at this point in time, a free trade agreement was not viable. “It may be that the conclusion will be reached that the parties are too far apart to enable a deal to be reached at this time,” Turnbull said. “The fact is that the Indian offers have not been adequate to date. It has got to be a deal worth doing.” The Prime Minister said while talks would not stop between India and Australia, it would take time for India to internally review its stance on both free trade and protectionism. “The fact is that there hasn’t been enough progress, and so what we’ve agreed to do is to ensure that our negotiators get back to the table and they identify the respective claims so we can see where they’re close, where they’re far apart, and the issues that they’re not addressing,” he said. “The important thing is that Prime Minister Modi and I have given our prime ministerial direction and leadership and impetus to ensure that the two sides will focus on the ‘nitty gritty’ of what the free trade agreement would involve.” Meanwhile, Australia has resisted India’s push for it to relax some immigration restrictions – including on 457 visas – which would allow greater numbers of Indians to work in Australia, the Australian Broadcasting Corporation reported. Turnbull refused to be drawn on what had prompted his predecessor Tony Abbott to say in late 2014 a deal could be completed by the end of 2015. During his visit, Turnbull told business leaders Australia and India’s $20 billion two-way trade was “a fraction of what we should aspire to, given the many points of intersection between our economies”. On Wednesday night, the Prime Minister said he was confident that figure would grow, with or without a formal trade deal. “Modi and I want the matter to be resolved and we have a great economic relationship and it’s getting stronger all the time and it will grow whether or not there is a free-trade agreement, but it would obviously be enhanced if there was.”
Source: Financial Express
NEW DELHI: Industrial growth contracted unexpectedly in February while consumer inflation quickened to a five-month high in March, a double setback for the Indian economy as it enters the new financial year. Industrial production shrank 1.2% in February against a 3.3% rise in January, data released by the statistics office showed. Consumer inflation accelerated to 3.81% in March largely due to increased fuel prices, according to data separately released by the department. The Reserve Bank of India last week kept interest rates unchanged citing inflation risks. Experts see price volatility as a looming threat although newer data suggest industrial growth should improve. Industrial growth came in below the consensus expectation of an increase of more than 1%. The decline was broad-based with manufacturing contracting 2%, mining reporting a 3.3% rise in February and electricity generation stagnant at 0.3%. Production of capital goods declined 3.4%, highlighting the continued weakness in investment activity. Consumer goods output fell 5.6% with durables production contracting 0.6% and non-durables reporting an 8.6% decline. Overall, industrial growth for the April-February period was 0.4%. The Indian economy is forecast to grow 7.1% in 2016-17 compared with 7.9% in 2015-16. Kotak Mahindra Bank’s senior economist Upasna Bhardwaj noted that weak factory output in February continues to point toward the fact that the demonetisationled disruption to economic activity was yet to be arrested. “Besides sugar, cement is the biggest negative contributor suggesting that constructionlinked activity has been hit and the impact has not yet faded,” she explained. Still, data for March shows industrial growth could pick up in the last month of FY17. “Early indicators like ATF (aviation turbine fuel) and petrol consumption, coal and automobile output, electricity generation and cargo handling at major ports look buoyant for March 2017,” said Aditi Nayar, principal economist at ICRA. The automobile sector also reported a strong performance in March. Growth remains fragile in manufacturing and needs continued efforts to make the sector competitive, the Federation of Indian Chambers of Commerce and Industry (Ficci) said in a release.
INFLATION WORRY
Retail fuel inflation accelerated to 5.56% in March from 3.90% a month ago, driving overall consumer inflation higher. Food and beverage inflation was marginally higher at 2.54% in March against 2.46% in February. A weaker-than-normal June-September monsoon would put pressure on food prices. Inflation is expected to average around 4.5% in the first half and 5% in the second half of this fiscal, RBI had said while holding interest rates. It raised the reverse repo to suck out excess liquidity in the banking system. “Though rupee appreciation will make imports cheaper and offset any rises in global prices, inflation faces monsoon-related risks… It is important to watch it, especially because core inflation is sticky,” said DK Joshi, chief economist at CRISIL. “We expect retail inflation to go up and be 5% in 2017-18.” CARE Ratings said that the worrisome feature is that non-food components still witnessed high rates: clothing 4.6%, fuel and light 5.6%, housing 5%, transport 6%. “Hence, core CPI is a worry.” India adopted an inflation target of 4% last year for a five-year period with a 2 percentage point tolerance band on either side.
Source : Economy Times
Reserve Bank of India on Wednesday unveiled draft guidelines relating to simplified hedging facility for resident entities with foreign currency exposures and non-resident entities with rupee exposures, other than individuals, to enable them to hedge underlying exchange rate risk. The facility is meant for transactions permitted under the Foreign Exchange Management Act, 1999, of up to $30 million or equivalent. The products that can be used for hedging could be any over-the-counter (OTC) derivatives and exchange traded currency derivatives (ETCD) permitted under FEMA, 1999, except cost reduction structures and swaps, the RBI said. In its draft guidelines, the RBI said customers with total hedging requirement of up to $30 million at any point in time may enter into permitted forex derivative contracts with any bank authorised to deal (or authorised dealer bank) in foreign exchange up to their requirement. The customers are not required to furnish any documentary evidence to the AD bank for establishing exposure. Customer will provide the AD bank with a one-time self-declaration signed by the CFO or CFO equivalent, to the effect that the sum total of the outstanding OTC derivative contracts and the outstanding ETCD contracts are backed by underlying currency exposure, either contracted or anticipated. At the time of booking of hedge contracts, customers may provide information relating to the underlying exposure (no documentary or other evidence is needed), including type of transaction, that is, current/capital account (ECB, FPI, FDI etc.), currency, tenor, and so on. Hedge contracts can be booked with any AD bank provided the underlying delivery takes place with the same bank. Cancelled contracts under this facility may be freely rebooked with the same bank.
Source: Business Line
With the government keen to keep prices under check, most commodities are likely to be taxed at rates closest to their existing rate structure under the Goods and Services Tax. “Most goods as well as services will be taxed at the slab of 18 per cent to 22 per cent,” said a person familiar with the development, adding that this will be especially followed in the case for inputs. But, exceptions in the form of goods such as high-end electronic and consumer durables, gourmet food items and gold could be there, where the tax liability under GST could be marginally higher than the existing rates. Food items, especially those of mass consumption will continue to attract nominal tax rates under GST. Similarly, while most services will be taxed at a higher rate of 18 per cent as against the current rate of 15 per cent, exceptions such as road transport are likely to continue which will be taxed at the existing rate that includes abatement. Some including education, healthcare and even pilgrimage related services will continue to enjoy exemptions. These are understood to be some of the key proposals under consideration as the committee of State and Union Finance Ministry officials work on the fitment of commodities in the four-tier rate structure under GST. The Council in its meeting in November had agreed to a four-rate structure under GST of 5, 12, 18 and 28 per cent. The Council in its next meeting on May 18 and 19 is expected to review the fitment of commodities though officials said that another round of meetings may be required before the rates will be finalised. The proposal is understood to be in line with the general view that goods and services will not become costlier under GST. Further, it will also take care of demands of some States that had said that luxury or high end items should not attract very low rates under the new tax regime.
Fitment taking time
“The exact fitment of commodities will still take some time as the process is under way. But the general view is that consumption should not be impacted due to higher taxes,” said a person familiar with the development. Tax experts pointed out that if the rates of central excise duty and value added tax were simply added under GST, the incidence on most commodities would significantly increase. For instance, items such as refrigerators, washing machines, air conditioners attract 12.5 per cent central excise duty and 14 per cent VAT. When added, this would indicate a GST rate of 28 per cent. But, at present, these items also get abatement on central excise, which makes the effective rate close to 8 per cent. “Mathematical equation for computing tax rates under GST should not be applied as it is unless effective excise rate after abatement for MRP based products, goods for common man are factored in properly otherwise it will make items more expensive. Also if services are taxed at 18 per cent, it will add to inflation,” said Bimal Jain, Chairman, Indirect Taxes Committee, PHDCCI. Agreed Pratik Jain, Leader (indirect tax), PwC, and said, “The proper method would be to compute the central excise duty on the abated value, else most goods could fall under the 28 per cent slab as the government is looking at fixing the closer to the current rates.” Experts also noted that the government has retained the power to levy cess on additional items under GST, which is making the industry worried.
Source: Business Line
The rupee has gained 5.2 per cent versus the dollar since January, rising from ~68.23/dollar in early January to a current value of about ~64.65. At first glance, this makes little sense. The Federal Reserve has already hiked rates and signalled a willingness to hike again. Dollar bond market yields have therefore, risen. At the same time, rupee yields have eased, with the Reserve Bank of India (RBI) holding the policy rate stable and tightening the spread between the Repo and Reverse Repo rates. Hence, US bond market investors can expect to receive higher yields while rupee debt investors receive stable or lower yields. Put it together and the dollar should get stronger, given higher riskfree returns. But, portfolio flows are very much in favour of India. The rupee has risen mainly on the back of FPI (foreign portfolio investors) inflows, which amounted to an humongous net ~85,108 crore since January (~44,485 crore equity and ~40,624 crore debt). Traders are expecting a snap back and bounce in the dollar. Some are betting on this with long dollar-rupee positions. The RBI could try to ease the rupee down by buying dollar. Also, the Fed is due to meet next in early May and if it does raise rates, or makes hawkish statements, the dollar may harden anyhow.
Beyond trader expectations, a strong rupee could have several negative consequences and some positive consequences over the current fiscal. The RBI surveys professional forecasters (PFs) regularly and 21 PFs were polled in March in the latest Survey. Some median expectations are given below. The inflation indices, the WPI (wholesale price index) and the CPI (consumer price index) are expected to diverge in direction. The CPI is expected to rise through 2017-18, hitting 5.3 per cent year on year by Jan-Mar 2018. The WPI is expected to moderate from the current 6.55 per cent to about 3.7 per cent by January-March 2018. Merchandise exports are expected to grow by 5.9 per cent (dollar terms) in 2017-18 over 2016-17. In 2016-17, exports are expected to grow by 2.8 per cent which is it good news, given shrinking exports in two prior fiscals. Merchandise imports are expected to grow by 7.1 per cent in dollar terms. The Current Account Deficit is expected to rise to 1.2 per cent of GDP from 0.9 per cent in 2016-17. Inflation and trade expectations could be affected by the rupee's trend. The rupee is now seriously overvalued going by RBI Real Effective Exchange Rate (REER) calculations. The REER for example, suggests that the rupee is about 17 per overvalued versus a 36-currency basket weighted according to trade. Other REER calculations with different currency baskets and different weights imply over-valuation of anywhere between 6-30 per cent. Overvaluation impacts exports, which become less competitive. It impacts imports as well. A strong rupee makes imports cheaper, which means local merchandise also suffers in domestic trade. This can be countered to some extent by putting higher customs duties but that is not desirable. We may therefore expect underperformance on the export front, coupled to higher imports if the rupee stays strong. The "Make in India" initiative could be hit, which means less job creation. On the positive side, inflation will probably be lower, unless domestic goods are over-protected by raising customs duties. Net importers like the oil majors, power generators, and corporates with outstanding overseas debt, or FCCBs, will be happy. If the rupee-dollar exchange corrects back, there would be a lucrative long trade on the dollar. If the rupee stays strong or strengthens even more, there could be a downgrade of export-oriented stocks, coupled to an upgrade on corporates with overseas debt exposure. Lower inflation also implies that RBI would be more inclined to cut rates and that's a potential positive.
Source: Business Standard
Bombay Dyeing & Manufacturing Co Ltd has launched a new line of bath linen products under the brand ‘Aspero Denim’, priced in the range of ₹299-2,099, the company said in a release on Wednesday. The new collection — towels, bath mats and bathrobes — is made available across Bombay Dyeing retail stores and major home textile stores, the release said. Shares of the Mumbai-based company zoomed 4.4 per cent at ₹83.45 on the BSE.
Source: Business Line
Assured orders and steady wages lead to migration Poor wages, uncertain employment prospects and stiff competition from power looms have forced many cotton handloom weavers in and around Musiri to shift to silk handloom weaving due to assured orders and steady wages. Also, efforts made by the Department of Handlooms some five years ago to infuse new life into cotton handloom trade did not yield the desired results due to financial problem. Introduction of modifications meant additional expenditure and space constraint was another problem. So, a growing number of traditional handloom weavers, who have been engaged in producing cottons saris and dhoties for more than five decades, are shifting to the silk handloom sector. For instance, M. Thangavel of Manamedu, a hamlet about five km from Musiri, is fully trained in weaving cotton saris and dhoties for the past 25 years. But his talent neither fetched him adequate wages nor orders. So, he and his wife Parameswari underwent a four-month intensive training in weaving silk goods. “We get assured orders from the master weavers of Salem, who supply the raw materials to us. We then weave the dhoties or saris,” he says. “The monthly wages in cotton goods was just ₹ 3,000, but I can now get ₹ 10,000 a month making silk shawls, dhoties and saris.” Echoing the same sentiments, a cross-section of weavers in Manamedu say the master weavers from Salem ensured an assured income for their community in Musiri and Thathaiengarpet. Manamedu alone accounts for about 6,000 weavers attached to six weavers societies. “Initially, Sarvodaya in Thanjavur ensured assured wages in silk products. But, we had to go there to get the raw materials from the Sarvodaya unit there. On the other hand, the master weavers from Salem reach our village and distribute the raw materials. They collect the finished goods within the stipulated time,” they point out.
Source: The Hindu
BENGALURU, April 12, 2017/PRNewswire/- According to Research, India to Overtake US as Jeans Consumer, as the Indian Denim Market Grows Exponentially Denim has been one of the main booming textile segments in India in the past decade. Where the capacity of Indian mills to produce denim fabrics was only about 300 million meters in 2005, it has risen over 300%, reaching about 1.3 billion; making India stand second only to China globally. A major part of this production is consumed locally. Over 500 million jeans are being sold in India itself; which is a little more than the approximate 490 million jeans sold in US currently. This gives India the distinction of being the second largest consumer of denim apparel after China. India is set to get a big lead over US and EU in coming years, as its consumption increases in Tier-2 and Tier-3 cities. This is what inspired Denimsanjdeans.Com, the pioneers of denim exhibition in Bangladesh and Vietnam, to launch their first Indian Denim Show on September 25-26, 2017 at the Silicon Valley of India, Bengaluru. The show will be held at 'The Lalit Ashok Bangalore' and will be the first-of-its-kind show in India. It will be the first denim-focused show, which will bring some of the most reputed denim mills including top local and international garment manufacturers, together on one platform and provide a great opportunity to source denim fabrics and apparel. Rising government focus and favorable policies is leading to growth in the textiles and clothing industry of India. The Union government also recently announced a Rs. 6,000 crore special package for the textile and apparel sector. This package will bring forth significant flexibility in labor laws, boost exports and generate employment. Sandeep Agarwal, Founder, Denimsandjeans.Com, said, "It gives me great pleasure to bring our show to India after successfully running it in Bangladesh and Vietnam. I feel that the Indian denim industry is at an inflexion point, where we will see it take off strongly and attain depth and breadth. While we are already the second largest consumer of jeans today, we will see the market maturing substantially in terms of usage across regions and demographies. Our show aims to bring together the major stakeholders in the supply chain to come together and help in this process."
Source: Outlook
New Delhi: Global merchandise trade is expected to rebound this year, with the World Trade Organization (WTO) forecasting a growth of 2.4% in 2017 compared to 1.3% in 2016. However, this is contingent on recovery of the global economy as expected and governments pursuing the right policy mix, the international trade regulator said. The multilateral trade body blamed the sluggish rate of trade growth in 2016 on low investment spending in the United States, China’s drive towards consumption that dampened import demand last year and slowdown in emerging market economies.It has pegged global merchandise trade to pick up marginally in 2018. “Weak international trade growth in the last few years largely reflects continuing weakness in the global economy. However, if policymakers attempt to address job losses at home with severe restrictions on imports, trade cannot help boost growth and may even constitute a drag on the recovery,” WTO director-general Roberto Azevedo said on Wednesday after releasing trade statistics for 2016 and projections for 2017 and 2018. The trade body said that the unpredictable direction of the global economy in the near term and the lack of clarity abo- ut government action on monetary, fiscal and trade policies raises the risk that trade activity will be stifled. “A spike in inflation leading to higher interest rates, tighter fiscal policies and the imposition of measures to curtail trade could all undermine higher trade growth over the next two years,” the WTO said. In 2016, the weak trade growth was partly due to cyclical factors as economic activity slowed across the board. “Global economic growth has been unbalanced since the financial crisis, but for the first time in several years all regions of the world economy should experience a synchronised upturn in 2017. This could reinforce growth and provide an additional boost to trade,” the report said.
IMPORT WEAKNESS
Asian imports dropped in the first quarter of 2016, but the slump was short-lived and Asia ultimately recorded growth of 2% for the year. Declines in imports of South America and other regions comprising Africa, West Asia and the Commonwealth of Independent States were steeper and more persistent, driven mostly by low commodity prices. Much of South America’s decline was due to Brazil, which remained mired in a severe recession. Meanwhile, Europe’s exports and imports grew faster than North America’s, which have been mostly flat since the start of 2015. Despite positive growth in its exports and imports, North America was one of the biggest contributors to the weakness of world imports in 2016, the report showed.
Source: The Economy Times
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1104.94 |
USD/Ton |
-2.24% |
4/12/2017 |
|
VSF |
2318.56 |
USD/Ton |
-6.98% |
4/12/2017 |
|
ASF |
2217.12 |
USD/Ton |
0% |
4/12/2017 |
|
Polyester POY |
1137.54 |
USD/Ton |
-1.07% |
4/12/2017 |
|
Nylon FDY |
2709.82 |
USD/Ton |
-18.70% |
4/12/2017 |
|
40D Spandex |
5361.67 |
USD/Ton |
1.37% |
4/12/2017 |
|
Polyester DTY |
1362.15 |
USD/Ton |
-3.09% |
4/12/2017 |
|
Nylon POY |
3014.13 |
USD/Ton |
-17.46% |
4/12/2017 |
|
Acrylic Top 3D |
5810.89 |
USD/Ton |
0% |
4/12/2017 |
|
Polyester FDY |
1376.65 |
USD/Ton |
-2.06% |
4/12/2017 |
|
Nylon DTY |
2550.42 |
USD/Ton |
-18.89% |
4/12/2017 |
|
Viscose Long Filament |
2391.02 |
USD/Ton |
0% |
4/12/2017 |
|
30S Spun Rayon Yarn |
2912.69 |
USD/Ton |
-4.29% |
4/12/2017 |
|
32S Polyester Yarn |
1709.94 |
USD/Ton |
-1.26% |
4/12/2017 |
|
45S T/C Yarn |
2680.84 |
USD/Ton |
-0.54% |
4/12/2017 |
|
40S Rayon Yarn |
1825.87 |
USD/Ton |
-4.55% |
4/12/2017 |
|
T/R Yarn 65/35 32S |
2246.11 |
USD/Ton |
-0.64% |
4/12/2017 |
|
45S Polyester Yarn |
3072.09 |
USD/Ton |
-4.07% |
4/12/2017 |
|
T/C Yarn 65/35 32S |
2347.54 |
USD/Ton |
1.25% |
4/12/2017 |
|
10S Denim Fabric |
1.35 |
USD/Meter |
0% |
4/12/2017 |
|
32S Twill Fabric |
0.85 |
USD/Meter |
0% |
4/12/2017 |
|
40S Combed Poplin |
1.18 |
USD/Meter |
0.12% |
4/12/2017 |
|
30S Rayon Fabric |
0.66 |
USD/Meter |
-1.09% |
4/12/2017 |
|
45S T/C Fabric |
0.67 |
USD/Meter |
0% |
4/12/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14491 USD dtd. 12/04/2017) The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Crude oil futures slid for a second session on Thursday, moving away from a one-month high touched in the last session as rising U.S. inventories stoked worries about global oversupply. Benchmark Brent crude futures slid 24 cents, or 0.4 percent, to $55.62 a barrel in early Asian trade. The market climbed to a one-month high of $56.65 on Wednesday before losing ground. U.S. West Texas Intermediate crude futures were down 23 cents, or 0.4 percent, at $52.88 a barrel. They touched their highest since March 7 at $53.76 barrel in the last session. Traders focused on preliminary U.S. production estimates in the weekly Energy Information Administration (EIA) report that suggested domestic output is still climbing. The report also showed stockpiles at the U.S. crude hub at Cushing, Oklahoma, rose 276,000 barrels in the week. “U.S. oil production rose to the highest level in over a year, leaving oil prices weaker on the day after the U.S. EIA released its data,” ANZ said in a note. “U.S. production rose 36,000 barrels per day, the most since January 2016 and the Baker Hughes rig count of 672 is the highest since August 2015.” Brent and WTI have rallied in recent sessions after Saudi Arabia was reported to be pushing fellow OPEC members and some rivals to prolong supply cuts beyond June. OPEC and other producers, including Russia, agreed late in November to curb output by around 1.8 million barrels per day in the first half of 2017 to rein in oversupply. The U.S. data followed bullish reports from OPEC nations, which said they had cut March output beyond measures they had promised, according to figures the group published in a monthly report, as it sticks to an effort to clear a glut that has weighed on prices. However, OPEC also raised its forecast for supplies from non-member countries in 2017 as higher prices encourage U.S. shale drillers to pump more, reducing demand for OPEC’s oil this year.
Source: Financial Express
Cotton crop, once called 'king' in Georgia, has the potential to compete with synthetic fibres and will continue to be economically and environmentally feasible in the future, according to a new University of Georgia survey. The survey was intended to find out current status of cotton production and whether its impact on environment can be minimised. The survey of the cotton industry was carried out by Shannon Parrish, a former graduate student at the UGA Tifton campus, for her master's degree thesis. Parrish wanted to gauge whether growers can improve the crop and minimise its impact on the environment. "Cotton is a major commodity crop in the US. I don't really ever see cotton not being grown here," said Parrish, who studied under George Vellidis, a professor in the crop and soil sciences department in UGA's College of Agricultural and Environmental Sciences. The research was prompted by global consumer concern over cotton's environmental sustainability, according to Don Shurley, UGA Cooperative Extension cotton economist, who worked with Parrish on the project. "Over the past 10 years or more, we've lost market share in cotton to man-made fibres. Some people believe that loss in market share is, in part, due to the fact that there are consumers out there who think cotton production is not environmentally friendly," Shurley said. With funding from the Georgia Cotton Commission, Parrish met with cotton producers across the state and gathered information about their management practices. She calculated data in the field to market Fieldprint calculator, which assigns a sustainability rating for a specific field based on seven different metrics. Everything is based on a scale from 0 to 100, where 0 is the most sustainable, and 100 is the least sustainable. Once she had the sustainability ratings, she compared them to the national and state benchmarks. Results show that Georgia cotton is less resource intensive than the national benchmarks. "You consider all the elements that make up cotton farming: a producer's land use; their energy use; their greenhouse gas emissions; if they're irrigating; their water use; their water quality; soil conservation; soil carbon. That's essentially what the calculator looks at," Parrish said. The second part of her research was to fit producer management practices to the university's cotton production budget, changing only what the producer told her they were doing in the field. For example, Parrish learned of the farmers' pesticide sprays and fertiliser applications and changed those elements in the budget to determine if a relationship existed between profitability and the field print metric scores. She also explored the impact of tillage methods, variable costs, and fixed costs on profit. "Based on the numbers we have, I don't feel like you could necessarily say cotton is not sustainable. Cotton is competing with synthetic fibres, so what's to say production of synthetic fibres is 100-percent sustainable?" Parrish said. Cotton production in the US has dropped in recent years. Cotton was planted on 8.56 million acres in 2015, down 22.5 per cent from 2014 and the lowest level in 33 years, according to the UGA Extension 2016 Georgia Cotton Production Guide. It also reported Georgia's cotton acreage dropped 19 per cent in 2015. Georgia cotton was worth $713.1 million in farm gate value in 2015, according to the UGA Center for Agribusiness and Economic Development.
Source: Fibre2fashion.
The 14th China International Polyester & Intermediates Forum will focus on topics pertaining to the polyamide industry. The event to be held in Shanghai from July 12-14, 2017, will cover themes like paraxylene, PTA/MEG, polyester filament/staple fiber, polyester chips of fiber/bottle grade, etc, as well as futures market among other things. The organisers China Chemical & Fiber Economic Information Network (CCFEI) and Tecnon OrbiChem have invited relevant government institutions, industry associations, major feedstock suppliers and polyester producers, as well as traders and financial experts, upstream and downstream, home and abroad, to share their ideas and valuable information about the polyester chain. Discussions will be held on topics such as dramatic shifts between price rises and fall, changes that will take place with profit distribution through the polyester chain as more and more players are building refinery capacities for captive use, with idled PTA capacities coming back, protecting margin from over-supply, preparing for MEG futures and more. The highlights of the three-day forum also include analysis on economic environment in 2017, main reason behind drastic MEG price changes, review and perspective of polyester industry performance in 2017, futures of differentiated polyester products and how to utilize futures to hedge spots risks. Polyester Committee of China Chemical Fibers Association and China National Chemical Fiber Corp are supporting the event.
Source: Fibre2fashion.
Experts said the China-backed Belt and Road Initiative will create fresh business opportunities for the world, as well as tangible benefits. A seasoned lawyer in serving Belt and Road projects, Sean Prior, counsel at the law firm Mayer Brown JSM, is upbeat about the prospects of the initiative. "For the last few years, I have done a lot of work with Chinese developers and financiers in Asia, including Bangladesh, Pakistan and the Philippines, and all my clients from those countries agree the Belt and Road is a huge opportunity," Prior said. Prior cited surging investment from China to the Belt and Road region and increasing cooperative agreements signed between Chinese and local companies. The initiative was proposed by China in 2013 to create a trade and infrastructure network connecting Asia with Europe and Africa along ancient trade routes. Investment and trade have been growing rapidly for the past years. ASEAN countries, the Middle East and South Asia have attracted most of the investment, and the energy, transportation and information technology sectors appeared to be investors' favorites, according to a report co-authored by the Chinese Academy of Social Sciences (CASS) and China Bond Rating. Prior believes the initiative can generate benefits in a wide range of areas, with infrastructure improvements only the first stage of development. "Better infrastructure will create conditions for the moving of industrial production capacity from China to areas with resources and demand, and then there will be more projects in retail, real estate and other market-oriented sectors in countries with large populations," Prior said. The Belt and Road Initiative will have a broad influence in boosting local growth, according to prior. Echoing his words, Dai Guanchun, a partner at the Jingtian and Gongcheng law firm, also expects the initiative to generate great opportunities. "It may be oil companies and project contractors at first, but investors in other sectors, from flour to finance, will be quickly attracted. The industrial chain will keep expanding," Dai said. "The local economy will boom and exchanges with the rest of the world will improve, which, in my perspective, is the true value of the Belt and Road Initiative." It is not just Chinese firms, but also those from developed countries, that can seek their fortunes in the process, according to Dai. China has invested more than $50 billion in countries along the Belt and Road routes since 2013. A total of 56 economic and trade cooperation zones have been built by Chinese businesses in 20 Belt and Road countries, generating nearly $1.1 billion in tax revenue and 180,000 jobs for relevant countries. However, experts also warned of risks due to an uncertain investment environment. Companies should be aware of the lack of legal protection for investors, uncertainties in local regulations, and protectionism in some countries, Dai said. The CASS report cited ethnic and religious factors, a changing geopolitical landscape, as well as weak and unbalanced global economic growth as major challenges.
Source: China Daily.
LONDON-The textile industry has a significant impact on the global economy. It provides millions of jobs, and its products run the range of practical necessities to outrageous fashion statements. Because of its importance, governments around the world are investing in this industry in order to bolster their economies. Details about these initiatives are some of this week’s top stories on BizVibe. BizVibe is the world’s smartest B2B marketplace and allows users to discover high quality leads, contact prospects, and source quotes. Register today to connect with over seven million companies around the globe. National governments create initiatives to revitalize textile industry For many countries, the textile industry is integral to the economy and citizens’ quality of life. When the textile industry goes into decline, or is just not performing as strongly as it could be, it’s in the government’s best interests to intervene. Government initiatives are an excellent way to revitalize textile manufacturing, create jobs, support domestic textile and apparel products, and protect the livelihood and stability of the economy. One example of this is Nigeria. In February of this year, the country’s government announced the allocation of USD 162 million for the revitalization and recovery of its textile industry. These funds will go towards creating jobs, encouraging the purchase of locally made textiles and clothing, and combatting counterfeit and smuggled textile goods. They will also be used to improve infrastructure. South Africa has traditionally been one of the largest clothing producers in Africa, and textiles and clothing account for roughly 10% of the country’s manufacturing jobs. However, the industry has been struggling in recent years in the face of competition from Asia and from other African countries. In the past 15 years, 150,000 jobs have been lost in the textile industry, with 2,000-3,000 workers losing their jobs every year. South African government saves textile jobs through production incentives programme However, the country’s government has been working to turn that around. The Department of Trade and Industry (DTI) has approved R4.9 billion in incentives, disbursing over R3.1 billion in the past financial year. Companies that were able to take advantage of these incentives saved over 81,000 jobs and created nearly 10,000 more. Continued involvement from the government and efforts from the Southern African Clothing and Textile Workers Union will play an important role in turning industry conditions around. Connecting with textiles companies on BizVibe In addition to textiles companies located in Africa, BizVibe is home to over 150,000 textiles and apparel companies around the world, as well as businesses specializing in everything from safety apparel to textile machinery. Connecting with any of these companies is simple thanks to the aggregating, categorizing and parsing of data from thousands of sources using machine learning tools and several sophisticated algorithms. This advanced match making program provides the user with a full set of inbuilt tools designed to connect like-minded business with each other, making business life easier. The BizVibe platform allows you to discover the highest quality leads and make meaningful connections with your companies of interest in real time. Claim your company profile for free and let BizVibe connect you with potential business partners.
About BizVibe
BizVibe is home to over seven million company profiles across 700+ industries. The single-minded focus of BizVibe’s platform is to make networking easier. Over the years, we've searched far and wide to figure out how businesses connect and enable trade. That first interaction is usually fraught with the uncertainty of finding a potential partner vs. a potential nightmare. With this in mind, we've designed a robust set of tools to help companies generate leads, shortlist prospects, network with businesses from around the world and trade seamlessly.
Source: Yahoo Finance
A unique technology that enables high-quality instant colouring of textile thread while the thread is being used in textile production is now making waves. This technology from Swedish company Coloreel allows embroiders to dye each and every part of the thread into any chosen solid colour or make smooth transitions between various colours. The first product based on this technology is Embroline. "Embroline is a ground-breaking standalone thread colouring attachment for embroidery machines that can easily be used with any type of embroidery machine without modifications. By instantly dyeing only one single thread (Embroline thread) instead of several standard pre-coloured threads during the embroidery production, it allows complete freedom to create unique embroidery designs as well as colouring possibilities never seen before and vastly improves overall production efficiency," Joakim Staberg, founder and innovator, Coloreel told Fibre2Fashion. Speaking about the advantages of Embroline, Staberg said, " The Embroline attachment offers a solution to some of the greatest challenges in the embroidery industry. Requiring only one reel of thread per embroidery head and ink cartridge, Embroline will take the industry to a new level. The challenging handling of a large stock of thread reels and the tedious rethreading of the embroidery machines may soon be nothing but a memory. Embroline vastly improves overall production efficiency." With Embroline, embroidery manufacturers will always have exactly the right colour available when they need it. According to Staberg, the only materials required are the Embroline base thread and ink cartridges. The technology eliminates the need for spool replacement and thread cuts, resulting in a minimum of lockstitches on the back of the textile. It also improves the embroidery quality and increases production speed. "By utilising this technology, machines can be built for colouring threads made of any type of fibre. Embroline uses a unique white Embroline thread based on polyester. Once the thread has been dyed by Embroline and the embroidery is finished, it can instantly be used and washed without further post-treatment," added Staberg. Coloreel has currently only introduced a solution for embroidery machinesIt plans to expand to other areas such as sewing, knitting and weaving in the future.
Source: Fibre2Fashion
The Vietnam Saigon Textile and Garment Industry/Fabric and Garment Accessories Expo (Saigon Tex) attracted over 1,200 exhibitors from 23 countries and regions. The event held in Ho Chi Minh City played host to a range of equipment and machinery meant for the textile and apparel industry. It was spread across an area of 35,000 square metres. A number of seminars focusing on the value of Vietnamese textile products, global fashion market, trade barriers owing to the FTA between EU and Vietnam and investment opportunities in the textile sectors were held during the expo. Phan Chí Dung, director, ministry of industry and trade's light industry department of Vietnam said during the opening ceremony that textiles and apparel contribute the most towards the country's exports. He said that a supply chain for the industry has not been developed. Saigon Tex 2017 can give the textile sector of Vietnam a chance to build relations with foreign companies and look at new investment opportunities. It can also help Vietnamese companies improve the quality of their products, said Vietnamese media reports quoting Dung. The textile and apparel industry of Vietnam made $28.5 billion from exports last year, increasing by 5.2 per cent compared to 2015. The largest buyers of Vietnamese textiles were the US, Japan, EU and South Korea.
Source: Fibre2Fashion
