There is euphoria in India about a growth rate of over 7 per cent. There are a lot of suggestions for creating jobs. But there is total silence on revival of the lost export momentum. Export growth is necessary for sustaining high growth and to create jobs in labour-intensive activities of the SMEs. This has been true for India and all high-growth economies of Southeast Asia and China. No country can grow fast without integrating with the global economy, and achieving external competitiveness.
It is mind-boggling to find our prime minister putting exports on the back burner after success in trade and investment in Gujarat. It is pathetic that there is no trade expert in Ministry of Commerce and Industry, making the ministry totally a misfit in this fast evolving global trade landscape. India is now seen as a marginal trade player with rising protectionism. India should not take comfort from the perceived anti-globalisation drive in a few advanced countries. China and Southeast Asian countries are still continuing to benefit from globalisation.
India needs to urgently focus on regaining the lost export momentum by focusing on trade and logistics facilitation reforms to reduce the massive trade transaction costs; improving the business environment to create a level playing field for SMEs; diversification of services to other professional services, especially in Big Data; innovative regional and bilateral trade agreements to increase market access, and to introduce institutional reforms in trade policy areas. These are extensively discussed in my earlier columns in this paper. I will focus only on SMEs and aspects of institutional reforms in this column.
SMEs are likely to play a big role in promoting exports and creating jobs. But Indian SMEs suffer from not having a level playing field in the business environment. India’s dismal rankings in the World Bank’s Ease of Doing Business index affect SMEs more than the large enterprises. For SMEs we need to move away from giving incentives to creating an enabling business environment. SMEs create jobs — 43 per cent of jobs created in emerging economies are from SMEs. These are at the heart of linking to global value chains (GVCs), as they have been for Southeast Asian countries and China. SMEs could attract all efficiency-seeking foreign direct investment (FDI) from multinational corporations (MNCs), making India a hub for GVCs.
But Indian SMEs lack the capacity as well as support services to adjust strategically to changing global landscape. From limited access to information and technology, to an enlarged current skills mismatch, Indian SMEs lag behind their worldwide compadres.
Workforce of Indian SMEs lacks the necessary skills to operate in a high-tech GVC environment. Additionally, they have difficulty in penetrating global markets or be part of the GVC due to their inability to meet international product quality standards, demanded by an increasingly sophisticated international buyer. Enterprises need to periodically train their workers in new design and packaging that satisfy fast-changing consumer trends.
Unlike the large enterprises, several SMEs operate outside the main cities and suffer from lack of business environment and access to trade services. SMEs are also poorly represented in apex chambers of commerce and industry in India, which are dominated by large enterprises, who receive preferential access to trade services. Moreover, public institutions provide most of the trade services available to SMEs, while private sector providers are generally absent. This lack of private sector participation in the supply of trade services means that the power of competition cannot be leveraged to induce market innovations to drive down cost of trade services to benefit exporting SMEs.
Institutional reforms in trade policy are urgently required to make SMEs effective in promoting exports directly, or being a part of the GVCs. We need to scrap the Ministry of MSME since micro enterprises dependent on doles have no role in export promotion, and SMEs require no incentives. Similarly, there is no role for Ministry of Heavy Industries, which reflects the antiquated “commanding heights of the economy “thinking of our socialist past. We should also do away with Ministry of Commerce, which champions protectionism and giving out doles to exporters through its annual EXIM policy. There is no case for giving sops to industry to encourage exports. Adherence to 21st century trade reforms is sufficient for this purpose.
An enlarged Department of Industrial Policy and Promotion could replace the Ministries of Commerce and Industry, Heavy Industry, and MSME, and promote development of industry, especially SMEs. It can also serve as a secretariat of “Make in India”, and help create an enabling business environment with much improved rankings in World Bank’s Ease of Doing Business and World Economic Forum’s Global Competitiveness Index.
India also urgently needs to create a trade policy institution that is able to operate efficiently in the new global environment. In order to separate the strategic decision-making process related to trade and industrial policy from day-to-day operational issues, a new, independent trade policy council, like the US Trade Representative in the US, needs to be developed, which reports directly to the PM. Its role could include strategic decisions on multilateral, bilateral, and regional trade policy; policy related to FDI; policies related to trade facilitation; strategic policymaking on improving India’s competitiveness; policies to improve India’s logistical capacity and connectivity; and policies to make India ready for the structural changes in global production focusing on skilling and technological acquisition.
This most damaging neglect of exports by the government must end soon.
Source: Business Standard
The rupee on Tuesday strengthened by 4 paise to close at near two-week high of 64.10 against the US currency on dollar selling by exporters and corporates.
The currency market remained dull and little action was seen owing to low trading participation on a day that witnessed strike by public sector bank employee unions, dealers said.
The US dollar extended its broad based recovery against its global peers amid some cautions ahead of annual central banking conference at Jackson Hole in the US due on Friday.
A sharp reversal in local equities despite a strong start and susutained withdrawal of funds by foreign portfolio investors (FPIs) largely kept trading sentiment little shaky, dealers said further.
Some dollar selling by exporters helped the rupee to cushioned the fall, they added.
Foreign portfolio investors (FPI) today pulled out Rs 828 crore from equity markets today, provisional exchange data showed. FPIs have pulled out more than Rs 7,300 crore from the equity markets this month so far as they flee to safe haven assets amid geopolitical tensions.
The rupee resumed firm at 64.09 from overnight close of 64.14 at the Interbank Foreign Exchange (Forex) market on fresh selling of the US currency by exporters and advanced to 64.05 in day trade.
However, it fell back in afternoon trade to a low of 64.14 tracking a drop in stocks and a strong dollar abroad, but managed to regain strength towards the fag-end. It settled at 64.10, showing a gain of 4 paise, 0.06 per cent. This is the highest closing level since August 10 when the rupee had closed at 64.08.
The RBI, meanwhile, fixed the reference rate for the dollar at 64.1099 and for the euro at 75.6497.
The dollar index, which measures the greenback's value against a basket of six major currencies, was up at 93.38.
In cross-currency trades, the rupee bounced back against the pound sterling to finish at 82.18 from 82.64 per pound and recouped against the euro to end at 75.38 from 75.45 earlier.
The rupee recovered against the Japanese yen to conclude at 58.59 per 100 yens from 58.86 yesterday.
The pound today fell to a 10-month low against the euro and posted biggest fall in a week against the dollar over lingering worries about the UK's post-Brexit trade agreements with the European Union.
In forward market today, the benchmark six-month premium payable in January remained steady at 125-127 paise, while far forward July 2018 contract inched down to 260.50-262.50 paise from 261-263 paise.
Crude prices today recovered some lost ground on supply concerns, especially in the US.
Benchmark Brent crude oil was up 20 cents at USD 51.86 a barrel in early Asian trade, while US light crude was 15 cents higher at USD 47.52.
Source: Economic Times
With India’s contribution in the technical textiles industry expected to grow at 12% CAGR and reach 1, 16,217 crore by 2017-18, the need for new technologies in garment manufacturing machinery is on a rise. India’s leading trade fair for technical textiles and nonwovens - Techtextil India – is here. Running into its sixth edition, the 2017 fair is scheduled to take place from 13 – 15 September in the country’s commercial capital – Mumbai. The show size increased by 50% since the last edition and will have space dedicated to 10 product groups and 12 application areas. Some of the big industry players like Reliance Industry, Welspun, GrozBeckert, Garware Wall Ropes, KhoslaProfil, Luwa India, Lenzing AG, Archroma, and CHT India will have their latest innovations exhibited.
One key feature added this year is the signing up of Telangana Textile Ministry for Techtextil India 2017 with an aim to woo investors to the mega textile park in the state. The Telangana state government will be promoting textile policies and highlight investment prospects at this trade fair in a bid to attract buyers and investors in the state.
An important highlight of the 2017 edition will be the launch of the Texprocess Pavilion at Techtextil India, creating an innovation platform for the latest technologies, processes and services for garment-manufacturing and textile processing. Raj Manek, Executive Director and Board Member of Messe Frankfurt Asia Holding Ltd said: “The launch of Texprocess Pavilion will provide all the garment machinery manufacturers a great platform to display their innovations and build a new and strong client base while at the same time allow Indian market to see how these solutions can help expand their existing capabilities”
According to recent studies, the nonwoven sector has emerged to be one of the most preferred areas for investment in India. The technical textile industry also has about 9% of the world’s total consumption manufactured in India. More than 6500 sqm have been dedicated for a grand showcase of its 10 product groups and 12 application areas of Agrotech, Buildtech, Clothtech, Geotech, Hometech, Indutech, Medtech, Mobiltech, Oekotech, Packtech, Protech, Sporttech covering the technical textile and nonwoven value chain in its entirety.
Techtextil India also conducts a symposium that would highlight topics like Protective Agrotextiles – Advantages and Future Prospects, Textiles in Aerospace Applications, Fibre Innovations for Functional and Value-Added Nonwovens, amongst others.
Techtextil India and Texprocess are part of the “Technical Textiles & Textile Processing” brand with actually 8 shows worldwide within Messe Frankfurt’s Texpertise Network comprising 49 fairs that highlight innovations and show what is driving the global textile industry.
Source: Tecoya Trends
A visiting Korea Federation of Textile Industries (KFTI) delegation has expressed satisfaction over the location and infrastructure of the proposed Kakatiya Mega Textiles Park in Telangana’s Warangal Rural district. Delegation chairman and Youngone Corporation chief Kihak Sung offered a few suggestions to improve park facilities and connectivity.
The delegation recently visited the park site along with Telangana Industrial Infrastructure Corporation managing director EV Narasimha Reddy and Warangal Rural collector Prashant Jeevan Patil, according to media reports.
Sung queried about narrow approach roads and the availability of water and was told that a four-lane road is coming up and the state government has earmarked 25 million litres of water per day for the project. He ruled out use of trains for transporting products and raw materials. (DS)
Source: Fibre2Fashion
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$ 50.56 per barrel (bbl) on 22.08.2017. This was lower than the price of US$ 50.97 per bbl on previous publishing day of 21.08.2017.
In rupee terms, the price of Indian Basket decreased to Rs. 3241.28 per bbl on 22.08.2017 as compared to Rs. 3263.64 per bbl on 21.08.2017. Rupee closed weaker at Rs. 64.11 per US$ on 22.08.2017 as compared to Rs. 64.03 per US$ on 21.08.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on August 22, 2017 Previous trading day i.e. (21.08.2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
50.56 (50.97) |
|
(Rs/bbl) |
3241.28 (3263.64) |
|
|
Exchange Rate |
(Rs/$) |
64.11 (64.03) |
Source: PIB
Shorn wool production in 2017-18 will be 340 million kilograms (mkg) greasy, predicts the Australian Wool Production Forecasting Committee (AWPFC). This is the same as the 2016-17 estimates, a 4.7 per cent rise over the 90-year low recorded in 2015-16. The rise was due to higher wool cuts per head after the excellent seasonal conditions in 2016/17.
Seasonal conditions in some regions, including much of Victoria and the south-east of South Australia, are reported to be very good, but other areas, including parts of Western Australia, the western division of New South Wales and regions in Queensland, have been dry, according to AWPFC chairman Russell Pattinson.
The season average wool cut per head is expected to slide by 1.2 per cent in 2017-18. While fleece weights in Spring are likely to be good, there is likely to be a moderation in the average wool cuts per head in some areas as the season progresses, a recent press release by not-for-profit Australian Wool Innovation Ltd quoted Pattinson as saying.
The run of high Merino wool prices and strong lamb price levels also appear to be encouraging producers to retain sheep despite high mutton prices, the release said.
The mean fibre diameter for Australia in 2016/17 was steady at 21.0 microns, the same as in 2015/16, according to the committee.
The committee based the estimates on inputs from the Australian Bureau of Statistics, wool exporters, the Australian Wool Exchange (AWEX), the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), the Australian Wool Testing Authority Ltd (AWTA), Meat and Livestock Australia and the six state committees comprising growers, brokers, merchants and representatives from state agriculture departments. (DS)
Source: Fibre2Fashion
Turkish Ministry of Economy to fight the evasion of POY products imports from seven countries - China, India, Malaysia, Indonesia, Taiwan, Thailand and Vietnam has announced imposition of provisional anti-dumping duty on partially oriented yarn (POY) with HS code 5402.46.
The ministry said that the volume of imported POY increased considerably during January 1, 2010 to December 31, 2016. The measure would take effect until Turkey gives the final conclusion on an investigation of anti-dumping duty evasion. Turkish agencies have launched an investigation into the issue since February last year following a petition from Korteks Mensucat ve Sanayi Anonim Sirketi Company.
According to the data obtained from Turkish Statistical Institute, it was determined that POY imports had increased considerably, especially after 2010, the ministry said in an official communiqué.
The Turkish Ministry of Economy said the temporary duty was issued due to an upsurge in POY imports into the country in the 2010-2016 period.
Besides, some POY buyers are manufacturers of Drawn Textured Yarn (DTY) products. In November 2016, Turkey applied a high anti-dumping duty of over 72% on polyester textured yarn imports from Vietnam.
The share of Turkish POY imports from the above mentioned seven countries was 99.1 per cent in 2014 and 2015, and it was 99.2 per cent in 2016. In terms of volume, it has increased from 159,960,807 kg in 2010 to 295,789,479 kg in 2016.
The anti-dumping duty on POY from India, Taiwan, Thailand and Vietnam will be 10.15 per cent, 14.3 per cent, 18.85 per cent and 36.28 per cent respectively. The duty on import of POY from China, Indonesia and Malaysia would be levied at $263 per ton, $120 per ton and $138 per ton respectively.
Previously, Turkey opened an anti-dumping probe into man-made yarn or synthetic staple fibers imported from Vietnam, Malaysia, Greece, Pakistan and Thailand. The country decided to levy duties of 19.48-25.25% on Vietnamese products in five years starting from August 2014.
According to the Vietnam Cotton and Spinning Association, Turkey used to account for a third of Vietnamese yarn exports. However, local enterprises have promoted shipments to China and South Korea due to high anti-dumping duties imposed by Turkey in recent years.
Source: Yarns and Fibre
KARACHI: Textile exports rose around three percent year-on-year to $1.006 billion in July as the government’s incentive package for the export sector seemed to revive the wilting foreign exchange revenue spinner.
Pakistan Bureau of Statistics (PBS) recorded textile exports of $979.414 million in the same month a year ago.
Exports of textiles, however, fell 17.34 percent from $1.217 billion in June 2017. Readymade garment exports posted a major growth of 20.47 percent year-on-year to $212.521 million in July. Its exports, however, dropped 12.53 percent from $242.951 million in the preceding month.
Exports of bed wear remained flat at $170.443 million in July over the last year. Bed wear exports declined 18.55 percent from $209.258 million in June 2017. In July, knitwear exports decreased 5.8 percent year-on-year and 24 percent month-on-month to $193.749 million.
In January, government unveiled Rs180 billion incentive package for exporters to boost the country’s exports by around three billion dollars by end June 2018. Under the package, sales tax and customs duty on import of textile machinery and cotton have been abolished. The country’s total exports between 2013 and 2015 declined more than 12 percent.
PBS data further showed that exports from food sector increased 34.74 percent to $250.860 million over the same month a year ago. Food exports, however, decreased 12.3 percent from $286.035 million in the previous month.
In food sector, the major thrust stemmed from a 28.49 percent year-on-year growth in rice exports, amounting to $107.896 million in July. Rice exports, however, fell 24.82 percent in July from $143.523 million in the preceding month. Sugar exports fetched $27.584 million in revenue in July. There was zero sugar export in the same month a year earlier. Exports of sugar soared almost 10-fold from $2.520 million recorded in June 2017.
Moreover, exports of fish and fish preparations rose 12.19 percent year-on-year to $12.473 million in July. They, however, fell 57.45 percent from $29.312 million in June 2017.
In July, non-textile exports also showed uptrend. Exports of engineering goods, including electric fans, transport equipment and auto parts, increased 33.35 percent year-on-year to $19.152 million in July. Engineering goods exports also rose 19.45 percent in July from $16.034 million in the preceding month.
In July, exports of leather goods improved 2.7 percent year-on-year to $42.077 million. Leather exports, however, slid 11.78 percent from $47.695 million in June 2017.
Total exports increased 10.58 percent year-on-year to $1.631 billion in July. The exports, however, decreased 14.7 percent from $1.911 billion in the previous month.
Imports jumped 36.74 percent year-on-year and increased 6.64 percent month-on-month to $4.834 billion in July. Key imports in the month under review included machinery, oil and agriculture and other chemicals.
In July, imports of machinery climbed 40.86 percent year-on-year and 14.91 percent month-on-month to $1.016 billion. Power generation machinery imports held a major chunk in the total machinery imports. The country imported $286.374 million worth of power machinery in July, depicting a 59.85 percent rise in its import bill as compared to the same month a year ago. Power generation machinery import swelled 39.95 percent in July from $204.619 million in June 2017.
Infrastructure development has caught pace under the $56 billion China-Pakistan Economic Corridor, while energy projects increased the need of power generation equipment. Imports of petroleum products, crude and liquefied gas increased 21.72 percent year-on-year to $946.958 million in July. Oil imports, however, decreased 5.91 percent in the month under review from $1.006 billion in June 2017. Agriculture machinery and chemical imports soared 25.95 percent year-on-year and 11.13 percent month-on-month to $728.243 million in July.
Source: The News
The Pakistan Textile Exporters Association (PTEA) has expressed serious concern over a crisis-like situation resulting from lethargic growth in exports, which continue to follow a downward spiral due to high production costs, regional competition, inconsistent government policies and uncompetitive energy prices. This contributes to the trade deficit as well.
While regional peers have doubled their textile exports, the same has declined across the value chain in Pakistan in quantity and value terms, PTEA chairman Mian Ajmal Farooq said in recent press release. He urged the government to offer incentives to textile exporters.
The country's textile exports were worth $13.8 billion in 2010-11 fiscal which dropped by 10.4 per cent to $12.4 billion in 2016-17. Meanwhile, textile exports of India witnessed a 31 per cent rise from $27.7 billion to $36.4 billion across the same period.
Bangladesh’s textile exports jumped by 63 per cent to $31 billion in 2016-17 from $19 billion in 2010-11, while Sri Lanka’s exports rose by 20 per cent from 4.1 billion to $4.9 billion during the same period. (DS)
Source: Fibre2Fashion
HCM CITY — Five hundred Vietnamese and foreign manufacturers, distributors, and suppliers will showcase advanced textile and garment machinery at the 17th Việt Nam International Textile and Garments Industry Exhibition (VTG 2017) to be held in HCM City in November.
The machinery will include high-speed digital textile and garment printers, embroidering machine, equipment for cutting and others.
High-quality fibre and cloth will also be on display at the 700 booths to be set up by companies from 20 countries and territories including India and Korea.
The annual event offers global companies an opportunity to explore co-operation opportunities and keep abreast of developments in the sector.
To be held from November 22 to 25 at the Sài Gòn Exhibition and Convention Centre in District 7, it will be organised by the Việt Nam National Trade Fair & Advertising Company in co-operation with Yorkers Exhibition Service Co.Ltd. — VNS
Source: Vietnam News
