Commerce Minister Suresh Prabhu today said his ministry is looking at certain measures to rev up countrys exports in a "shortest possible time" and will also strive to address the issues facing exporters post GST.
The minister said exports to GDP (gross domestic product) ratio of India has to improve substantially as the outbound shipments have a great ability to generate economic activity.
"Therefore, exports to GDP ratio has to rise...So we are at a crash intervention sort of a thing. We are trying to work out what to be done to promote exports in a shortest possible time which includes issues coming up because of the Goods and Services Tax (GST)," Prabhu, who assumed charge as the commerce and industry minister this week (rpt) this week, told reporters here.
Prabhu said exporters are facing certain challenges in the GST regime and the ministry is taking up those issues the concerned authorities.
The ministry is working on the support measures "which can facilitate quick increase in exports (both in terms of) volume and value," he said.
The commerce ministry is expected to announce incentives in the review of the foreign trade policy, which is scheduled to be released next month.
On the GST, exporters have stated that the new indirect tax regime would block working capital worth over Rs 1.85 lakh crore per year with the government as they now have to pay the tax first and then seek refund, which is a cumbersome process.
Earlier they were getting ab-initio exemptions from taxes.
The minister also said that domestic investments by the private sector has not increased considerably and one of the reasons for that is inadequate capacity utilisation.
"Unless domestic demand picks up...exports can fill in that gap," Prabhu added.
He said the ministry will work on several other fronts, including bringing in new industrial policy, improving logistics for exporters, agri export policy and integrating into the global supply chains.
The Department of Industrial Policy and Promotion (DIPP) has floated a discussion paper on futuristic industrial policy 2017.
"Global supply chains are now become a reality. India is part of that in auto components and generic formulations," he said adding these chains offer a great opportunity for Indian exports as well as upgrading capacities in terms of technology.
On logistics, he said this is being added in the rules of business of commerce now, so the ministry will work on this also.
"We will bring logistics to forefront and work on that as there is a direct link between competitiveness of exports and logistics," Prabhu said.
To promote investments, the minister has told the Invest India team to prepare a district-wise industrial plan as local situations like human resource availability, law and order condition and natural resources help attract investors more.
Further, he said these are challenging times as countries are creating more and more walls around them.
"Protectionist ideas are growing. They are stronger over a period time. So we will follow our trade policy in manner that we will be able to work through these walls," he said.
Indias export growth slowed to an eight-month low of 3.94 per cent in July, while the trade deficit widened to USD 11.44 billion on account of high gold imports. PTI RR MKJ
Source: PTI
Engineering exporters' apex body EEPC India has urged the government to intervene and push for release of at least 90 per cent of GST refunds to exporters immediately after the shipping bills are filed with the authorities.
"We strongly recommend a 'war room' for exports as well as suggested by the Commerce and Industry Minister Suresh Prabhu for foreign investors," EEPC India Chairman T S Bhasin said in a statement here.
Expressing confidence in the newly appointed minister, he said Prabhu should intervene with the finance ministry and the GST Council and get a relief in terms of release of at least 90 per cent goods and services tax (GST) refund on submission of the shipping bills, if a complete GST exemption is not feasible.
EEPC said that while the government has extended the dates for filing of July returns for GST to September 10, 25 and 30 and for August to October 5, 10 and 15, ironically, it would mean blocking of the refunds for exporters, who are in any case hard pressed for cash and have been significantly disadvantaged by continuous rise in value of rupee against the US dollar.
According to the `back of envelope' calculations based on the July engineering exports of USD 5.17 billion, or Rs 33,129 crore, the GST refunds of at least Rs 1,520 crore would be held up till the third week of October for July.
"If the Integrated Goods and Service Tax (IGST), paid by exporters, is added, the dues to the exporting community would be in excess of Rs 1700 crore for July itself. Such a dispensation would certainly add to our costs and make our exports that much uncompetitive," Bhasin said.
He said exporters are facing extreme cash flow problem because of locking up of the GST refunds with the authorities.
In view of this extraordinary situation, we urge the government to give bulk of the refund to exporters immediately based on the shipping bills that have been filed with the the Indian Customs Electronic Commerce/Electronic Data interchange Gateway (ICEGATE), the apex body said.
EEPC suggested that the verification and adjustment can be done later based on the filing by the exporters as per their respective GST filing and returns.
"This will help small and medium scale exporters to tide over the blockage of funds and allow them to pay the salaries and bonuses of their workers in the festival season.
"The members have pointed out that they are in a desperate situation and hence government must intervene to avoid a mini social crisis," EEPC said.
Source: Economic Times
The Hohenstein Institute, an international research centre involved in the development, testing, and certification of textile products based in Germany, is set to present a webinar on textile biodegradability issues on September 19, 2017. The webinar will discuss on the importance of decomposition of textile products in an environment-friendly manner.
Hohenstein has developed testing processes to assess the aerobic biodegradation in soil or the breakdown of organic matter by microorganisms when oxygen is present. Hohenstein evaluations provide an end of life profile by answering the following: First, how quickly does the textile product decompose in microbiologically active soil and second, are there any toxicological impacts to the environment as a result?
For the first phase, textiles are buried and examined over time to quantify the rate of decomposition. Then the soil around the decomposing textile is evaluated to ensure biological safety using methods such as the cress test and the earthworm test. Products that meet Hohenstein’s strict criteria for both components can obtain the Hohenstein Institute Quality Label for Biodegradability, an independent, third party certification that can be used in sustainability marketing campaigns. Hohenstein’s biodegradability certification is applicable for a full range of textile products and components including fibres and yarns, fabrics, apparel, home textiles, geotextiles, and nonwovens.
Experts at Hohenstein work closely with clients to understand the relevant questions that should be answered in order to determine the best testing plan. Many choices made at the design stage can affect a textile’s environmental impact at the end of its useful life. These choices include fibre and component selections, finishing specifications, and testing for harmful substances before the textile product ever goes to market.
Glöckner, a product and process engineer at Hohenstein’s William-Küster Institute for hygiene, environment, and medicine said, “Decisions that textile and apparel designers make can influence the potential impact discarded textiles will eventually have on the environment, such as how long they take to decompose and whether they harm living organisms when they do so.” (GK)
Source: Fibre2Fashion
Picanol India, an international group specialised in the development, production, and sale of weaving machines, engineered casting solutions, and custom made controllers, is set to participate for the fourth time at the bi-annual TechTextil trade fair, a leading technical textile expo, from September 13 to 15, 2017, in Mumbai, in hall 6, booth 43.
TechTextil is the world’s most important centralised marketing and sourcing platform for users and manufacturers of technical textiles. As a global leader in the industry of weaving machines, Picanol enjoys growing success in the market for technical textiles, offering technical weavers highly customised solutions for very specific applications, based on machine platforms that are also applied in mainstream applications. As a result, its technical customers enjoy state-of-the-art technology and performance, combined with the evident advantages our leading position offers them: from large R&D resources to streamlined high-quality production and assembly processes and a worldwide sales and services network.
During the trade fair, Picanol India will be presenting break-through solutions in different fields such as wide weaving (up to 540 centimetres), heavy weaving and specific solutions for car seats, bullet-proof fabrics, coated fabrics, and others, at its 36 square metres booth.
Picanol has been active in India since 1956 and at the end of 2007, Picanol India was founded. Picanol India is headquartered in New Delhi. (GK)
Source: Fibre2Fashion
Telangana, which is developing a 1,200 acre textile park in Warangal, has invited investments in technical textiles with special incentives.
It will be the official partner State for Techtextile India, an international trade fair for technical textiles and non-wovens, to be held in Mumbai from September 13 to 15.
Messe Frankfurt Trade fair India will organise Techtextil India.
According to a press release, the event will have more than 175 companies from nine countries as participants.
The companies are from China, France, Germany, Spain and Korea.
Research and development
The exhibits will be on research and development, fibre and yarn, fabrics, functional textiles and technology in the technical textile segment. Leading players in India, such as Reliance, Welspun, Garware Wall Ropes, and Archroma will also take part.
The Government of Telangana will highlight the features of its textile policy and the investment options in the State. It provides additional incentives for capital, power tariff, and land purchase for investments in technical textiles. The exhibition will have a special business-to-business investment session for Telangana State to reach out to key industries.
Gujarat Textile Policy
Meanwhile, industry sources here pointed out that the Gujarat Textile Policy, which was introduced in 2012 ends this month.
Based on the representations from the industry and review of the policy, the State has decided to extend its policy for one more year.
Incentives
All the schemes and incentives offered in the policy will be available for one more year.
Gujarat is one of the leading producers of cotton in the country and is giving a thrust to development of the entire textile value chain in that State, said the sources here.
Source: The Hindu
The United States wants the United Nations Security Council to impose an oil embargo on North Korea, ban the country's exports of textiles and the hiring of North Korean labourers abroad, and subject leader Kim Jong Un to an asset freeze and travel ban, according to a draft resolution seen by Reuters on Wednesday.
US Ambassador to the United Nations Nikki Haley has said she wants the 15-member council to vote on Monday on the draft resolution to impose new sanctions over North Korea's sixth and largest nuclear test. However, Russia's UN Ambassador Vassily Nebenzia has said a Monday vote may be "a little premature."
It was not immediately clear if the draft resolution had the support of North Korean ally China. Russian President Vladimir Putin insisted on Wednesday that resolving the North Korean nuclear crisis was impossible with sanctions and pressure alone.
A resolution needs nine votes in favour and no vetoes by the United States, Britain, France, Russia or China to be adopted.
Since 2006, the Security Council has unanimously adopted eight resolutions ratcheting up sanctions on North Korea over its ballistic missile and nuclear programs. Haley said the incremental approach had not worked and a diplomatic solution could only be reached by imposing the strongest sanctions.
The new draft UN resolution would ban exports to North Korea of crude oil, condensate, refined petroleum products, and natural gas liquids.
China supplies most of North Korea's crude. According to South Korean data, Beijing supplies roughly 500,000 tonnes of crude oil annually. It also exports 200,000 tonnes of oil products, according to UN data. Russia's exports of crude oil to North Korea are about 40,000 tonnes a year.
Ban on North Korean workers
The Security Council last month imposed new sanctions over North Korea's two long-range missile launches in July. The Aug. 5 resolution aimed to slash by a third Pyongyang's $3 billion annual export revenue by banning coal, iron, lead and seafood.
The new draft resolution would remove an exception for transhipments of Russian coal via the North Korean port of Rajin. In 2013 Russia reopened a railway link with North Korea, from the Russian eastern border town of Khasan to Rajin, to export coal and import goods from South Korea and elsewhere.
The August 5 resolution capped the number of North Koreans working abroad at the current level. The new draft resolution would impose a complete ban on the hiring and payment of North Korean labourers abroad.
Some diplomats estimate that between 60,000 and 100,000 North Koreans work abroad. A UN human rights investigator said in 2015 that North Korea was forcing more than 50,000 people to work abroad, mainly in Russia and China, earning between $1.2 billion and $2.3 billion a year.
Textile ban
The draft resolution would ban textiles, which were North Korea's second-biggest export after coal and other minerals in 2016, totalling $752 million, according to data from the Korea Trade-Investment Promotion Agency (KOTRA). Nearly 80 percent of the textile exports went to China.
The assets of military-controlled airline, Air Koryo, would be frozen if the draft resolution is adopted. It flies to Beijing and a few other cities in China, including Dandong, the main transit point for trade between the two countries. It also flies to Vladivostok in Russia.
Along with blacklisting North Korean leader Kim Jong Un, the draft resolution would also impose a travel ban and asset freeze on four other senior North Korean officials. The Worker's Party of Korea and the government of North Korea would also be subjected to an asset freeze.
The draft resolution would allow states to intercept and inspect on the high seas vessels that have been blacklisted by the Security Council. Currently nearly two dozen vessels are listed and the new draft text would add another nine ships.
The draft resolution does not contain any new language on the political track. It again reaffirms council support and calls for a resumption of talks between North Korea, the United States, South Korea, China, Japan and Russia.
China and Russia have been pushing their proposal to kick-start talks with a joint suspension of North Korea's ballistic missile and nuclear programs and the military exercises by the United States and South Korea. Haley has dismissed the suggestion as "insulting."
Source: NDTV
ONE OF the most significant woven textile archives in the country, that helps to tell the social history of one of West Yorkshire’s mill towns, has been secured for the future.
A new not-for-profit company has been set up to safeguard the textile archive at Sunny Bank Mills, at Farsley, between Leeds and Bradford, which contains a wealth of historic items, including over 60,000 lengths of fabric, 8,000 fabric designs, 5,000 wool dyeing recipe cards, weaving looms, photographs and a library of mill-related books.
The Mills, which were originally built in 1829, have been in the Gaunt family for six generations and are currently owned and managed by cousins John and William.
They established the archive two years after production ended in 2008, but have taken the step to form the new company, along with a board of trustees, to ensure it is safe even after they are gone.
John Gaunt said: “It is important to William and I that the archive has a secure future beyond our lifetimes, so we have taken the decision to create a new company to oversee the management, restoration, conservation, preservation, use and promotion of the archive at Sunny Bank Mills.
“This will facilitate and encourage public use and enjoyment of the archive; to provide educational activities and to facilitate and encourage creative arts activities inspired by the archive.
“To help make the archive sustainable, the new company will also be able to apply for funding for all these activities.”
The “substantial” archive is essentially the company records and the contents of all departments from 1829 until production ceased nine years ago. The archive, established in a 3,000 sq ft old warping shed, is overseen by curator Rachel Moaby, who has been charged with cataloguing, preserving and developing the archive.
The collection contains hundreds of leather-bound guard books holding cuttings of all the cloth made at Sunny Bank Mills.
These alone can offer a fascinating insight to the social history of Farsley, Ms Moaby said. Along with teams of volunteers at the Mills, she is currently researching the First World War and its connections to the Mills, based on one particular book in the archive.
“Unlike the other guard books in the collection, it is very different due to the pages and pages of orders of khaki,” she said. “The research, with the help of the fabulous volunteers at Sunny Bank Mills Archive, will help to build the story of khaki and the textile industry, but also focus on the people who made it and what life was really like in the town.
“Telling the stories of the ordinary and the extraordinary lives held together by the threads of cloth and khaki.”
The research aims to create a book and exhibition about the community during the war, and link with local schools so that children can connect with their local heritage.
The new company, Sunny Bank Mills Ltd, will be officially launched on Saturday, when the archive will be open to the public as part of National Heritage Open Days.
Mill tours are also due to run from Friday to Sunday this weekend hourly from 10am to 4pm.
The archive is open on the first Wednesday of every month from 10am to 12pm.
It is important that the archive has a secure future. John Guant, joint managing director Sunny Bank Mills.
Source: Yorkshire Post
The trade deficit rose slightly in July, keeping the U.S. on track to post a larger gap in 2017 than in 2016.
The deficit edged up to $43.7 billion in July from $43.5 billion in June, the Commerce Department said Wednesday. Economists polled by MarketWatch had forecast a $44.8 billion gap.
The U.S. trade deficit is running almost 10% higher through the first seven months of 2017, compared with the same period a year ago: $319.1 billion vs $291.2 billion. A bigger deficit subtracts from gross domestic product, the official scorecard for the U.S. economy.
The Trump administration is aiming to cut longstanding deficits by reworking key trade deals, but Americans spend more on foreign goods in part because the U.S. is doing better than most of the world’s other leading economies.
What’s more, the U.S. no longer produces some goods that Americans buy in abundance such as cellphones, televisions and computer screens. That’s partly why prior administrations going back to Ronald Reagan have failed at curbing persistent deficits.
In July, imports slipped 0.2% to $238.1 billion. Imports of crude oil, autos and pharmaceutical goods all declined. Computer-related imports rose.
Exports slipped a slightly larger 0.3% to $194.4 billion amid declines in shipments of new cars and trucks as well as household goods.
Yet U.S. crude exports climbed to the highest level in nearly three years reflecting the nation’s status once again as a major oil producer. Domestic production has rebounded along with a rise in global petroleum prices.
The trade gap in goods with China increased to $33.6 billion and it was unchanged with Germany at $5.5 billion. The deficit with China was the highest in a year.
The goods deficit with Mexico shrank to $4.9 billion in July from $6 billion, but it’s still higher at the same stage of 2017 versus a year earlier.
Those are the three countries with which the U.S. runs the highest deficits. They have also come under more scrutiny from President Trump.
U.S. stocks future pointed to a higher opening for the Dow Jones Industrial Average DJIA, +0.25%
Source: Market Watch
