Given the technology and strategic leadership contest between US and China, it is likely that trade confrontation of the two countries may continue. Since the beginning of the year, the US-China trade dispute has intensified, beginning with countervailing duties on stainless steel flanges from China (and India) to safeguard duties on the washing machine and solar cells aimed at China. The US move to apply tariffs on steel and aluminium imports to protect its domestic industry resulted in China issuing an intent to impose duties on agricultural goods worth $3 billion imported from the US. Following the publication of the US Trade Representative (USTR) report of its investigation of China, the Trump administration decided to impose 25% tariff on over 1,300 products coming from China, as per the list announced on April 3. These items account for $46 billion of US imports from China. The next day, China announced a list of 106 US products that would be subject to the same tariff rate, impacting almost $50 billion worth of Chinese imports from the US. If, after due process, all these tariffs are instituted, they would price higher about 15% of bilateral goods trade. April witnessed further trade measures from the two countries directed at each other. The US banned its companies from selling components to Chinese telecom equipment manufacturer ZTE for seven years, citing violations of sanctions against Iran. Anti-dumping deposits were imposed on US exports of sorghum to China, its major market by far for the product. The US then threatened tariffs on another $100 billion imports from China. Such steps have significant implications for global trade. The US is the world‘s largest importer of goods at $2.2 trillion and the second largest exporter with $1.4 trillion, while China ranks top in exports with $2.1 trillion and second in imports at $1.4 trillion as of 2016. Merchandise worth $637 billion was exchanged between the two countries in 2017, with two-way flows including services exceeding $711 billion. Volatility resulting from uncertainty about the implementation of threatened tariff measures has hit markets.
USTR report
The USTR report, on which the recent round of tariff hikes is based, was initiated in August 2017 under Section 301 of the US Trade Act following long-standing complaints from US companies about being pressurised to share technology with China in return for market access. The findings imply that the Chinese government deploys unfair, opaque and unwritten ways to compel American enterprises to open up their proprietary technologies. The report also alleges that China supports and incentivises acquisitions of and investments in US technology firms to gain intellectual property. One key claim of the report is that the Chinese government indulges in ‗unauthorised intrusions‘ into US commercial computer networks and cyber theft of intellectual property belonging to US enterprises. The USTR claims are refuted by China. The US-China ‗trade war‘ is thus a tussle for technology leadership and strategic dominance. Chinese investments in US technology firms, too, have been on the US radar. The rapid progress made by China in so-called ‗Industry 4.0‘ technologies is causing concern in the US. Given this technology contest, it is likely that trade confrontation of the two countries may continue.
India’s trade with the US, China
For India, the US is its largest export market and second largest source of imports with total trade in goods at $66 billion (April-February 2017-18), as per official data. China remains by far India‘s largest import partner with close to $70 billion of goods purchased from the country in the first 11 months of the fiscal year. However, Indian exports to China were less than $12 billion. If the tariff barriers imposed by the US and China play out as announced, global trade could contract, impacting India‘s recent upturn in exports. A possibility could be that the US and China would consider third producers, including India, for their import necessities. Reportedly, India has offered to sell soybean and sugar to China during the Strategic Economic Dialogue held in Beijing in April.
India’s exports of tariff-impacted products
Machinery, mechanical appliances and electrical equipment account for $34.2 billion of the 1,300 affected US imports from China. Looking at US import items from China valued at over $500 million, it is found that India‘s exports to the US of these items (at four-digit level) in 2016 were very limited. Only four of the 15 items aggregated more than $100,000 and none came in over $300,000 value. It is, therefore, unlikely that US demand of these products from India would pick up considerably in the short term. Regarding Chinese imports from the US on which retaliatory tariffs are proposed, the top category is transportation goods at $27.6 billion, followed by vegetable products ($13.7 billion) and plastics and rubber ($3.5 billion). For all but two of the items for which imported value is over $500 million (at six-digit HS Code), India‘s exports to China are nil or negligible. The only exceptions are cotton and vehicle parts. Thus, India would probably not be considered by China as a potential replacement source for its US imports of these goods.
Implications for India
The above analysis shows that India would not see much positive trade diversion coming its way from the ongoing US-China trade spat. For one, with about 15% of bilateral trade slated to suffer from higher tariffs, the first and second round spillover impact on world trade from lower bilateral trade would be inimical to Indian exports. Second, the high-value imported goods on which tariffs are proposed by both countries are not significant in India‘s export profile for the two partners. In some cases, such as electrical equipment and machinery, India lacks manufacturing capacity. In others, as for example, soybeans, China‘s import barriers for Indian products have prevented India from accessing its market. Three, given the current US stance, there is a risk of further trade barriers on US imports from India. India has been placed on the Priority Watch List in the USTR Special 301 Report for intellectual property rights (IPR) implementation. Its foreign exchange policies are also under US watch. H1B visa regulations have been made tougher, and fewer Indians are applying for them. US has also voiced concerns about high tariffs in India for certain US products. The US has further announced a review of the general system of preferences (GSP) which permits imports of certain goods from India at zero tariffs, impacting $5.6 billion of India‘s exports to the US of key labour-intensive products such as textiles and gems and jewellery. These are part of the overall US protectionist trade sentiments and policies, which could escalate, depending on domestic reaction and global retaliation. On the Chinese side, there has been a reluctance to address India‘s trade concerns, including for agricultural products. At the meeting of trade ministers in March, there were no significant outcomes. Hopefully, the upcoming visit of Prime Minister Narendra Modi to China would take up trade issues.
Investment dimension
There is some potential for positive diversion to India on the investment side. China‘s foreign direct investment (FDI) in the US has dropped considerably in 2017 over the previous year. With Chinese firms taking positions in India‘s technology sector, there is a possibility for higher inflows from that direction.US investments in India fell between 2015-16 and 2016-17 and stayed muted in the April-December 2017-18 period at a cumulative total of $22 billion from April 2000 to December 2017. Its outward FDI was $299 billion in 2016 alone.Strong efforts would be required to attract the US and Chinese FDI to India.
Technology implications
With technology development and intellectual property rights (IPR) as issues of contention, India will need to be watchful regarding its own position in the evolving Industry 4.0 technologies. India compares well with China in terms of English language proficiency and cultural connect, raising less anxiety about data security and IPR loss.
As long as India adheres to a strong IPR regime and continues to encourage non-resident patent applications, it would stand out as a reliable technology partner for the future. However, China‘s focused and accelerated approach towards the target of technology dominance should incite deeper strategic thinking in Indian policy circles to avoid India being marginalised in the technology leadership competition between the US and China.
Future direction
The US-China trade disputes are part of two larger developments. The first is the general context of strategic geopolitical tensions exhibited within an economic and technological expression. Second are the waning gains that overseas enterprises perceive in a Chinese economy where the trade-off between market access and IPR loss is yielding lower margins.It is unclear which direction the trade tensions could take in coming months. On the one hand, there is the possibility of de-escalation of trade measures and counter-measures, which would require a period of intensive negotiations between the two sides. On the other, the increased clamour from different constituencies (primarily in the US) could lead to further rounds of offensive policies. For India‘s policymakers, the fact that the items of interest to the world‘s largest traders figure insignificantly in its export basket with these markets flags the country‘s continued low penetration of world markets. The Indian government would need to ensure a strategic approach to the many dimensions of the export endeavor in this evolving trade scenario and accelerate export competitiveness in mission mode to reinstate its efficacy as a growth driver for the country. It must also continue to take measures to encourage its R&D engagement and boost technology industries.
Source: Business Standard
Exporters in the city are worried due to a decline in apparel and textile exports in India. They added that the exporters alone could not bring back India to the top in exporting apparel and textiles till the government provided them with incentives. While expressing concern over the issue, Narinder Chugh from Million Exporters Private Limited said the Apparel and Textile Industry in India had provided employment to about 45 million people of which 12 million jobs were solely provided by the Apparel Industry. He said apparel and textile exports were 14 per cent of the total exports in the country.
―It is the second largest sector after agriculture in providing employment to the needy. But because of poor policies of the government, less focus is being given to the industry.
The Apparel and Textile Industry of India is losing its shine at the global level. In March this year, the figures suggested that the exports have declined by approximately 13 per cent. Last year, it was about 10 per cent. It is a cause of concern for all exporters in the country, who are about 8,500 in numbers,‖ said Chugh. Another exporter Harish Dua from KG Exports said, ―In the past few years, countries such as Bangladesh and Vietnam have left India behind. Developed nations, including the US and UK, are giving bulks orders to these countries as they enjoy favoured access through several treaties. At the same time, India is under pressure from the World Trade Organisation to phase out subsidies and incentives given to the textiles sector as it has already achieved ‗export competitiveness‘.
―Technology upgrade needs funding while trade treaties need to be reviewed to ensure that India gets access for its competitive products in major markets. Above all, Indian entrepreneurs need to also focus on creating their own global brands rather than simply producing other labels.
IGST refunds stopped
Exporters are worried as their integrated goods and services tax (IGST) refunds, which started after the intervention of the Prime Minister‘s Office, have been ―stopped abruptly‖ in past 10 days. Narinder Chugh, who has to get refunds worth about Rs 2 crore, said he got to know from the local office that the IGST refunds had been stopped following the directions of higher-ups. Chugh said, Earlier, the IGST used to be refunded two to three times a week, but for the past more than 10 days, no scroll has been generated. After the intervention of the PMO, the exporters had started receiving the IGST refunds. But from March onwards, Goods and Services Tax Network (GSTN) had stopped transmitting the data to various ports. Sea ports have been verbally instructed not to release anymore IGST refunds.
Source: The Tribune
New Delhi : Keeping its promise to Iranian President Hassan Rouhani during his visit in February, the Indian government has started examining the feasibility of a preferential trade agreement (PTA) with the country. “India’s focus is on market access for products such as pharmaceuticals, man-made fibre, rice and automotive parts,” a government official told BusinessLine. Iran has been keen on a PTA with India for long, but New Delhi had not been pursuing it with vigour as it was already engaged in a number of bilaterals with other countries. “Things have changed now and India is keen on a PTA as it realises that the Iranian market could be promising. A number of new opportunities opened for the Indian businesses in Iran when the country was hit by economic sanctions from Western economies, including the US and the EU,” the official said. The Federation of Indian Export Organisations, had sent a list of items to the Commerce Ministry, where it feels there is scope for increased exports. “We are positive that a PTA with Iran will benefit Indian exporters a lot. The foothold that we gained in the Iranian market while the economic sanctions against Iran was in place and there was less competition will help us expand our exports if a PTA is signed,” FIEO Director General Ajay Sahai said.
Iran-Pakistan ties
There are other geo-political factors, too, which might be guiding India’s interest in Iran, including the on-going negotiations for deepening of the PTA between Iran and Pakistan. Pakistan could be a competitor for India in the Iranian market for several items and if it gets preferential access for its exports it could hurt India’s interest. The Indian Cabinet recently cleared a double taxation avoidance agreement between India and Iran, which will promote investment flow and curb tax evasion. The Cabinet also gave an ex-post-facto approval for the MoU between India and Iran for cooperation in the field of agriculture and allied sectors. The MoU was signed in February during Rouhani’s visit to India. Another MoU on cooperation in the fields of health and medicine was also approved. The MoU covers exchange in training of medical doctors and other health professionals, assistance in development of human resources and setting up healthcare facilities, regulation of pharmaceuticals, medical devices and cosmetics, and exchange of information among others. “There are political signals in both India and Iran to get close on the economy front. It is a good time for a PTA that serves both countries,” the official said. Iran’s exports to India in 2017-18 were worth $11.11 billion, a growth of 5.76 per cent over the previous year. India’s exports to Iran grew 11 per cent to $2.65 billion during the fiscal. The trade imbalance is mainly because of India’s import of oil from Iran.
Source: Business Line
NEW DELHI: India's global trade increased by 16.32 per cent to USD 767.9 billion in 2017-18, according to the Commerce Department data. In 2016-17, the trade stood at USD 660.2 billion. "While India's global trade grew by 16.32 per cent between 2016-17 and 2017-18, India's total trade with LAC (Latin American countries) grew by 19.63 per cent," the department said in a series of tweets. It said that bilateral trade with LAC including Bolivia, Peru, Chile and Brazil has recorded healthy growth in 2017-18 as per the provisional numbers."Bolivia has emerged as a major trade partner of India in LAC region with bilateral trade registering a growth of 205 per cent from USD 253 million in 2016-17 to USD 772.44 million in 2017-18," it said. Similarly, two-way commerce with Brazil has increased to USD 8.56 billion in the last fiscal from USD 6.51 billion in 2016-17. Bilateral trade with Chile grew to USD 2.85 billion in 2017-18 from USD 1.90 billion in the previous fiscal. "India's trade with LAC increased from USD 24.52 billion in 2016-17 to USD 29.33 billion in 2017-18," it added.
Source: Financial Express
New Delhi : A recent Kotak Institutional Equities report states that the worsening socio-economic conditions in Venezuela, a major crude oil exporter, has led to oil production in the country falling from 2 million barrels per day (mbpd) in August 2017 to 1.5 mbpd in March 2018. This, and other supply-side factors, are what likely explain crude prices shooting up from $63.83/barrel (Brent crude) on March 1, 2018, to $73.59 on April 25. Mexico has also cut production—from a supply baseline of 2.4 mbpd, the country has brought output down to 2.1 mbpd. OPEC has maintained its supply cuts—as opposed to raising production to offset the reduced production by Venezuela and Mexico. This has led to a 2.4 mbpd overall reduction in production in March 2018 while just 1.7 mbpd of cuts was agreed to by the member of the oil-nations consortium. The outlook for oil prices, thanks to supply-side factors, is further dampened by the expectation that US president Donald Trump will not extend the waiver of sanctions against Iran, possibly resulting in supply cuts to the tune of ~1 mbpd. Crude supply to the world market is also under the threat of action by Libyan militants that will push up prices further. The other supply constraint is that “midstream pipelines connecting Canadian oil sands to Cushing (US WTI delivery point) and Permian basin to the US Gulf coast are both operating at near-full capacity utilisation” and the situation is unlikely get better until new projects get completed in 2019. This supply-demand imbalance has resulted in a world-wide deficit of oil production, which is expected to continue till the end of this year. This puts upward pressure on the price of crude oil, which is expected to settle at around ~$65/barrel, according to Kotak’s estimates. However, the upside risks to the price of oil could be offset by increased drilling activity witnessed in the United States over the past few years, which is expected to rise further in the current year. India will be relying on this, and the easing of geo-political tensions, for the rapidly rising oil prices to cool off. Given the Petroleum Planning and Analysis Cell already projects India’s oil import bill to rise by 20% and cross the $100 billion mark this year, India’s best bet in the near term is that OPEC reconsiders its cuts. With India’s rising trade deficit—it rose by 85% in FY18—it surely cannot afford the oil import bill taking a toll on the rupee, bringing with it risks to inflation and the fiscal deficit.
Source: Financial Express
The rupee on Wednesday nosedived 52 paise to hit a 14-month low of 66.90 against the dollar as the rising crude oil prices coupled with headwinds on the macroeconomic front due to the widening trade deficit hit the forex market sentiment. The Reserve Bank of India (RBI) intervened in the market to save the rupee from plunging in the mid-afternoon trade and managed to prevent the currency from touching the psychological 67 level. The BSE Sensex fell over 115 points, while the broader Nifty closed below the key 10,600-mark. Bond yields also rose further. For the rupee, Wednesday’s was the lowest closing since February 22, 2017. The currency fell amid panic dollar buying by corporates and importers. The rupee has been caught in a free fall in the past few sessions against the backdrop of surging global oil prices and the widening of trade deficit. Further, a massive exodus of capital outflows from both equity and debt markets against the grim backdrop of the US Federal Reserve’s anticipated interest rate policy also triggered panic. Anand James, chief market strategist at Geojit Financial Services, said, “After showing a slight recovery in the previous trading session, the rupee resumed its fall, slipping to a fresh 14-month low against the dollar. Weakness continued on the back of consistent selling by the foreign investors who offloaded over Rs 938 crore and Rs 317 crore in equity and debt markets, respectively, in the current week. The dollar, meanwhile, has continued its upward move accompanied by the rise in the bond yields and on the likelihood of more rate hike by the central bank in the upcoming meetings. The 10-year bond yield hit its highest level in more than four years.” “The dollar seems to be consolidating ahead of key events lined up over Thursday and Friday. We have the ECB (European Central Bank) policy on Thursday and the BoJ (Bank of Japan) on Friday. US Q1 GDP and core PCE (personal consumption expenditure) will also be extremely important and may provide the impetus for the next round of US dollar strength. US 10-year yield is facing resistance at 3 per cent mark,” said Abhishek Goenka, chief executive officer, IFA Global. Stock markets ended in the red following a late-session sell-off triggered by a rush among participants to book profits ahead of derivatives expiry amid lacklustre global cues. Asian markets fell and European shares opened lower, tracking overnight losses on Wall Street after the 10-year US Treasury yield briefly touched the psychologically important 3 per cent level for the first time in four years. “Market slid as rising global bond yield and weakening rupee hurt investor sentiment. Besides, metal lost its sheen due to weak global cues while volatility ahead of F&O expiry influenced investors to book profit. On a positive note, IT index outperformed as strengthening dollar and improving outlook kept the counter attractive,” said an analyst.`
Source: Money Control
By Prem Malik Former President CITI The Textile and Apparel Industry in India is a pioneer industry contributing 4% to country’s GDP 12% of the country exports. The Textile Industry is the second largest employer after agriculture. Most of the textile industry is in the rural and semi urban sector and with large employment to women. The Industry size is approximately $120 billion ($80 billion domestic & $40 billion in exports). The Industry is multi fiber and it is predominantly strong in Cotton Textile & Apparel for exports and in the domestic market Man Made fibers have predominant share. The Industry is still relatively small and has tremendous potential to grow from current level of approximately $120 billion to $350 billion in the next 7-8 years if proper policy initiative are taken both by the governments at the Central & State level and Industry. Our current per capita consumption is low i.e. little over 4 kg against other develop countries like China where the per capita consumption is 13 kg and above. The domestic sale in China is close to approximately $ 300 billion & their exports are close to approximately $ 280 billion while our current size is approximately $ 120 billion. Indian Textile & Clothing Industry has all the ingredients in terms of raw material skill man power and expertise of decades in textile manufacturing & marketing but our development has been slow due to inconsistent and inequitable policies in the past because of which the industry lost opportunity to grow at the space that was required in 80’s and taxes. Capital subsidy should also be available for modernization and extension of spinning mills at the same levels as for the new units. Modernization of existing units is paramount to improve quality productivity and sustain employment. The following further suggestions may be taken into considerations for development of the Industry. * Availability of quality raw material. Man Made fibers & filaments are available in terms of quality parameters but cotton fiber has lot of issues in terms of contamination low 90’s. It is heartening to note that very progressive & proactive steps have now been taken both at Central & State level for the encouragement & establishment of new capacities & capabilities. However if we have to double our world trade share from current 5% to 10% in the international market and to meet with the growing consumer aspirations in terms of Life Style both for Ready To Wear & Ready To Use for domestic & institutional consumption we have to modify our policies in a such a way that the current industry is sustained & expansion takes places from new textile units but with equitable operational policies. The new industry should be given capital subsidy & interest subvention. The existing units & the new units should have equitable benefits in terms of power cost reimbursement water availability skill support additional employment base incentives and reimbursement of all Embedded Central & States availability of good quality of extra-long staple cotton. Mini- Missions I & II helped tremendously but Mini – Missions III is required to improve Cotton handling practices eliminate contamination gradation & marking of bales. Suitable rules & regulations necessary to avoid mixing of cottons. * To improve Yield of cotton per hectare from current 480 kg to 1000 kg which will improve income of farmers & making availability of additional fiber for future intended growth. * Encourage Man Made fibers & Filaments by neutral Textile Industry - Way forward Continued from Page 1 Col 4 fiber policy as natural fibers will not be able to meet total requirement of raw material despite improvement in yield as land availability will not increase. * State Government should have a collaborative approach and provide incentives in such a manner that the existing industry survives and new Industry is established. One should not be at the cost of the other. * Infrastructure bottle necks in water power & road transportations need to be removed to become internationally competitive. Cross subsidy in power should be reimbursed. * All Embedded taxes paid on manufacturing of Textile & Apparel should be totally rebated both of Central & States to make exports competitive. * Availability of working capital at international interest rates key to competitiveness. * Executing Free Trade and Regional Trade Agreement on equitable basis for growth of International Business. * Industry has to become more market oriented and have to develop capacities & capability for those HS lines where our competitors are enjoying market share & we have no or little market share. This will require emphasis on market research product and design development. The focus has to shift to aggressive marketing to improve market share & profitability of the industry without which industry will not be able to attract capital either from the market or from the financial institution. The future of the textile & apparel industry is bright especially in the domestic market to meet with the growing purchasing power and change in life style of the consumers and in the international market if we are able to redesign our policies to stay competitive in the market place.
Source: Tecoya Trend
We in the textile industry do not need any support in the form of incentives but need policy support. Here is what India as a country needs for a competitive textile industry
- Removal of hank yarn obligation for the spinning industry.
- Inverted GST structure from fiber to fabric in the MMF sector, at 18% for fiber, 12% for yarn and 5% for fabric and no refund at fabric stage the tax burden is pushing up costs at fabric stage and is making Indian fabric non competitive.
- GST on power, transport and real estate. These sectors are out of GST regime. If brought into the GST regime will help push up each of the sectors viz spinning, weaving and garmenting by 1% each
- Scrap anti-dumping duty on monopoly products like polyester filament, viscose filament and fiber and acrylics and spandex.
- FTA with SAFTA , now duty free imports are available from Bangladesh and Sri Lanka and host of LDC countries who can easily use Chinese of Indonesian fabric. If rules of origin are set that Indian yarn and fabric needs to be used Indian exports from textiles will go up.
No incentives are needed. Just policy help
Srihari Balakrishnan
Sri Kannapiran Mills Limited
Risky SBI?
Is keeping fixed deposits in State Bank of India, the country’s largest commercial bank, becoming a risky proposition? As a retired person, I think so. I have put my life’s savings in a Kolkata branch but now find, much to my horror, that the principal amount of the FD is getting depleted thanks to the much-vaunted SBI brand of efficiency. The bank has deducted nearly ₹20,000 from the principal amount on the grounds that it did not deduct enough tax in the past on the interest income on the FD. How can the bank touch my FD without informing me, more so when I have enough funds in my Savings Bank account in the same branch? Alternatively, the bank could have refrained from paying me the full interest amount due on my FD. Tax can be collected only on interest income and certainly not on principal amount of FD. If the bank had failed to deduct tax on time in the past, it is not my fault, and it is a lapse on the bank’s part. Why should I suffer for something for which I am not responsible for? I fear that in this way my whole savings might disappear one day. I have approached different levels in the bank but all I get is the stock reply: it is a system generated failure. The system remains idle when thousands of crores of rupees of bank money are siphoned off by big business and industrialists but becomes hyperactive when it comes to fleecing small depositors on one pretext or the other. An FD is a contract and what the SBI has done is a breach of contract.
Santanu Sanyal
Kolkata
HAL writes
This is in reference to ‘IAF hits runway again for a new fighter’ (April 24). We feel that the statement “HAL, which already has infrastructure and experience for aircraft assembly, has so far not proved to be a worthy recipient of technology, while private players will take some time to establish the infrastructure (but eventually contribute hugely to India’s stature as an aerospace power)”, is unfair to HAL. HAL, as the premier aeronautical complex in Asia, has built over 4,000 aircraft so far of which 14 types were under license from various OEMs and design agencies from UK, France and Russia. The licensors included reputed companies such as BAE Systems, Eurocopter, Sukhoi Aircraft Design Bureau etc. There are many companies of world repute which are in discussions with HAL for their programs. Also, under the latest technology transfer projects, HAL has built over 180 Su 30 MkI aircraft and 100 Hawk Advanced Jet Trainer in short timeframes. Notwithstanding the criticism by the retired IAF officer, HAL has assimilated all high end technologies for every project it has undertaken and has built a very strong supply chain eco-system in India for aviation and aerospace sector. It is worth mentioning that most of the private industries in India in the Defence sector today have emerged through association with HAL.
Source: Business Line
MUMBAI - Speaking at an interactive session on policies and facilities for the textile sector at IMC Chamber of Commerce Dr. Kavita Gupta Textile Commissioner informed that the government has enhanced the incentives for exporters of garments and madeups under MEIS to support the textile exports and the Union budget which raised the special package to Rs. 7148 crores was a step in this direction to generate employment for 10 million people as this was a labour intensive sector.She exhorted the industry to make use of these benefits. Dr. Gupta said the government is working on ways and means to enhance the importance and contribution of the man – made fibres in the industry segment dominated by cotton. The government has also undertaken the technology upgradation and modernization in all the 108 powerloom clusters in a big manner and an integrated approach in terms of upgrading skills along with financial benefits is being implemented. Earlier speaking of the initiatives of the state government Mr. Atul Patne Secretary (Textile) government of Maharashtra said that the government is strengthening the funding requirements of the sector. Special funds for hosting and participation at the exhibitions are being released and a subsidy regime based on the stages of processing is being implemented by the state government. Welcoming the dignitaries Dr. Lalit Kanodia President IMC said the chamber is lending full support to the members associated with the textile industry.
Source: Tecoya Trend
The government will set up a Digital Trade Desk to push collaboration between Indian micro, small and medium enterprises and their global peers, a top MSME ministry official said on Wednesday, in New Delhi. Speaking during the Valedictory function of the first International SME Convention organised by Ministry of Micro, Small and Medium Enterprises concluded in New Delhi on April, 24, MSME Secretary Arun Kumar Panda said that the ministry has planned to set up a Digital Trade Desk aimed at furthering more collaborations between SMEs of India and other countries and for exchange of data. He also said that another mega international event is being planned in a few months. He also said that going by the success of the Convention it is planned to make it an annual feature with 79 countries already showing interest to participate in the next Convention. 160 SMEs from 39 countries participated in the three day event where issues of international best practices on SME development and cooperation, global business opportunities for SMEs, problems faced by women entrepreneurs were discussed. Poland, with 15 SMEs, had the largest delegation, followed by Uzbekistan with 8 SMEs and Ghana with seven. Four hundred SMEs from India also participated. 23 agreements were signed between SMEs of India and SMEs of UK, Russia, Uzbekistan, Poland, Bhutan, Austria, Czech Republic, Cameroon and Sri Lanka. These agreements are in 12 sectors: food processing, agriculture, textiles, defence, ammunition, waste management, dairy products, coal, jewellery, health care and education. Four foreign SMEs have also signed expression of interest for entering into joint ventures with Government of India.
Source: SME Times
In this educational, and health hub, in fact, nearly 10% of the population is dependent on the Shamanur family for livelihood. Once the Manchester of Karnataka, today Davangere is no longer an industrial hub it used to be as no political party has kept its poll promise of reviving its past heritage, and the formation of ‗textile cluster‘ has remained only on paper. People in this region express their utter disappointment on the lack of industrial development in the last five years and say with the same leaders being elected every term, nothing much can be expected. Ex-union leader Satish asserts that not even 10 per cent of industrial potential has been realised in the last few decades. To further decimate the industry, cotton mills are being converted into residential complexes. With the Centre selecting Davangere for the ‗Smart City‘ project, people expected a lot in terms of sanitation, waste management, SME hubs and so on. But the district authorities have not even spent 10 per cent of the Smart allocation to make this city livable, economically vibrant and environmentally sustainable. Once a famous trading and manufacturing centre for cotton textiles, today it is a ghost city, as one can only see remnants of the past glory, be it in KT Jambanna Colony or the shut doors of the innumerable cotton mills. Once this colony housed hundreds of mill workers and their families but today, most of them are either dead or have left for ‗greener pastures‘.Only a few remain to tell the story of the city‘s rich past. Like 77-year-old Haleshappa, who worked in Davangere Cotton Mills Ltd, and fondly recalls those ―good old days‖ to say, ―For 25 years, I worked tirelessly but they shut shop without a second thought. I was on a salary of Rs 3,500 per month during those days.‖ Difficult times fell upon the family after the closure of the mill, and to fend for his loved ones, Haleshappa took to being a coolie. ―The industrial heritage is lost forever as nobody is interested in reviving it,‖ he says.
Education hub
Today, the city is known more as a hub of higher education. It is estimated that there are more than 36 institutions of learning at the graduate, postgraduate and doctoral levels. So one can see how the cotton mills of yesterday have been replaced by engineering and medical colleges, and again, most of them are run by the Shamanur family. Here the writ of father and sons is all-pervasive, leaving the electorate hesitant to even talk about them. Children playing at Jambanna Nagar; (above) Ganesh Textiles, one of the closed mills Shimoga nandan. Further, there is a seething resentment against the prevailing scenario where industries have not come up after the 1990 industrial shutdown. So no jobs or employment opportunities have been created in the last decade, according to Kumar, a former Chandroday Mills employee. He adds, ―The present political system in Davangere has not allowed any development in the industrial sector – textiles, garments or engineering products.
Lack of quality education
In this educational, and health hub, in fact, nearly 10% of the population is dependent on the Shamanur family for livelihood as 10,000 people are employed in various colleges – medical, engineering, dental, hospital, sugar and liquor industries owned by the family. So if some are grateful, others, though full of resentment, say, ―It‘s a foregone conclusion that the two contestants will win this time too. An academician from the city concludes that despite having so many educational institutions, none of them are providing quality education. ―Numbers cannot give quality education or skilled workers or for that matter, quality healthcare. Davangere has added so many hospitals but what is the use? Patients from the district still flock to Manipal or Mangaluru; it is only poor people who avail the dismal healthcare here. The family has neither allowed any industry to come up nor encouraged young political blood to contest or compete. The district and the city suffers, and its people bemoan their fate, he adds.
Source: New Indian Express
Dr Frank Jacobs, President, Manufacturers Association of Nigeria (MAN) said discussion was ongoing with the Federal Government to revatilise moribund textile factories in the country. Jacobs disclosed this in an interview with the News Agency of Nigeria (NAN) on Wednesday in Lagos. He said as part of the discussion, the association proposed the establishment of an Anti- Smuggling Task Force to prevent or reduce smuggling significantly and to enable many textile factories return to production. Jacobs said smuggling was the key reason why many textile factories shut down their operations in the first place.
―You should go to Kano and Kaduna and see how many of these factories are closed down. ―These are factories that before now engaged a large capacity of manpower in their production but are now out of operations due to smuggling among other things.
―Most of the fabrics produced here are got by unscrupulous Nigerians who take same samples to places like China to reproduce them.
‗‘They label them Made-in-Nigeria goods and then smuggle them back into the country.
―There was a time customs seized about N400 billion worth of goods in Kano and prosecuted some persons but that has not hindered them.
‗‘This is why we are proposing the Anti-Smuggling Task Force,‖ he said.
Frank said though the Federal Government released about N50 billion to some of the manufacturers in the industry some years ago, the money was like a drop in the ocean.
He, however, noted that many of the manufacturers were in debts as at that time.
―With the ongoing discussions, respite is coming for textile factories which have for several reasons become moribund as this particular administration is very concerned about them.‖
Source: PM News Nigeria
HÀ NỘI — Vietnamese enterprises must band together with their Asia-Pacific partners for stronger growth. Said conclusion was reached at yesterday‘s conference on strengthening the connection and partnership between Việt Nam‘s firms and members of the Confederation of Asia-Pacific Chambers of Commerce and Industry (CACCI). Speaking at the conference, Đoàn Duy Khương, Vietnam Chamber of Commerce and Industry (VCCI)‘s Vice Chairman, appreciated the important cooperation between the VCCI and the CACCI, and between Việt Nam and regional countries. Khương emphasised the importance of such regional collaboration, especially in the context of increasing international economic integration. Jemal Inaishvili, President of the CACCI, noted the Vietnamese business community‘s effort in recent years, with significant economic development progress. He believed such growth has demonstrated the government‘s efforts to create a smooth and favourable business environment for both local and international firms. Seeing how the Asia-Pacific region can be considered the largest consumer market in the world with a multitude of rising powers such as Japan, China and South Korea, and a total GDP accounting for 60 per cent of the world‘s, the area is full of potential, added Khương. He also mentioned that since the signing of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), cooperation with major economies and markets would soon be virtually unlimited for Vietnamese businesses, in order for them to accelerate operations, trade, while gaining access to advanced production technology and improved management and administration. Coupled with collaboration from Asia-Pacific‘s enterprises, Khương was certain that Việt Nam‘s firms will gain competitiveness and the whole economy will be significantly improved. Organised by the VCCI, yesterday‘s event aimed to create a bridge between and to help both sides‘ businesses find suitable cooperation and investment opportunities. At the same time, the VCCI hoped to reach out to senior members of CACCI‘s, one of the largest organisations representing the Asia-Pacific region‘s business community. The event was part of Inaishvili‘s visit to Việt Nam, along with over 30 representatives from CACCI‘s member corporations, most notably from Australia, India and Nepal, specialising in textile, garment, cosmetics, consumer goods, food distribution and processing, pharmaceuticals, chemicals, industrial products distribution, construction, IT, and tourism. Inaishvili expressed his wish to invite representatives from the VCCI and other Vietnamese business delegations to join the CACCI Summit later this year in Istanbul, Turkey. Earlier in April, VCCI had worked with the CACCI and the General Department of Customs of Vietnam on a project to update the 2010 Incoterms, or International Commercial Terms, and a 2020 draft, in order to update and discuss previous experiences and mistakes in the fields of import, export, insurance, banking and finance.
Source: Vietnam News
LAHORE: Federal Commerce Minister Pervaiz Malik has emphasised that the textile value chain is the top most priority in the federal budget for 2018-19. Addressing an international conference on ‘Textiles and Clothing – Inspiring Change’, he said the China-Pakistan Economic Corridor (CPEC) would further contribute to Pakistan’s economic upsurge as the partnership had extended beyond energy and transportation sectors with textile sector being on top. Approximately Rs50 billion was released by the government for the textile sector during the current financial year and its exports increased by 7.17% compared to the last year.
Source: Tribune
