The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 04 AUGUST, 2018

NATIONAL

INTERNATIONAL

SRTEPC welcomes Amended ATUFS

 The Ministry of Textiles has released Amended Technology  Upgradation Scheme (ATUFS) in place of the erstwhile Technology  Upgradation Fund Scheme (TUFS) vide Resolution dated 13th  January  2016 for a period of seven years from 13.01.2016 to  31.03.2022. The financial & operational parameters and implementation mechanism for ATUS were notified by the Ministry vide Resolution dated 29th February 2016. The Government  provides credit linked subsidy under the scheme The main highlights of the  modifications made in ATUFS  are given below:  * The applicants who  applied for UID under RRTUFS  before 12.01.2016 but the UIDs  could not be issued to them for  non-availability of funds  will be  given one time opportunity to  apply for subsidy under ATUFS.  Textile Commissioner will issue a communication in this regard.  * Limited Liability Partnership Firms registered under LLP Act  2008 will also be eligible for the benefit of capital subsidy  under ATUFS.  * Cooperative Banks will also be the lending agency under the scheme.  * Specification of technology for the machinery for all the eligible segments would be prescribed annually in advance by the TAMC effective from 1st April of the year.  * Textile Commissioner will constitute Technical Committee manufacturers of machinery. This Committee will meet on monthly basis to update the list of machineries and manufacturers. This list will be suggestive and not exhaustive or complete. Industry will be at liberty to purchase machinery of their own choice conforming to the specified technology parameters subject to inclusion in the  indicative list of manufacturers by the TAMC. * Accessories attachments sample machines and spares procured from other manufacturers enlisted in the indicative list will also be eligible  for subsidy upto a value of 20%  of basic cost of machinery. * Unique Identification Number (UID) has been defined as provisional approval for estimated Capital Investment Subsidy based on the tentative estimates of specified machineries for technology upgradation.  * Except in case of merger acquisition amalgamation or takeover of the entity the plant & machinery purchased with subsidy under TUFS shall not be disposed of before 10 years of the date of purchase without prior approval of the Textile Commissioner. * The entity will be required to furnish a declaration of the subsidy availed by it under RRTUFS and ATUFS. * Advance payment upto the limit of his own share in the machine cost can be made by the  applicant prior to the date of  sanction of the term loan.  * Purchase date shall be date when full and final payment is made by the entity for machinery.  * Textile units are permitted to avail benefits of the State Government’s Schemes in addition to the ATUFS benefits.  

Commenting on this initiative Mr. Narain Aggarwal, Chairman SRTEPC stated that this is yet another positive step taken by the Ministry of Textile for strengthening the Textile industry of the country.  Keeping in view the  difficulties faced by the industry  in getting benefits under the  scheme and the demands raised  by various stakeholders for  streamlining the scheme  the  Ministry of Textiles has modified  the financial & operational  parameters and implementation  mechanism of ATUFS vide  Revised Resolution dated 2nd  August  2018  Mr. Aggarwal  added.  SRTEPC Chairman highlighted that the amended scheme would encourage investment in the MMF textile segment and give a boost to “Make in India” and “Zero effect and Zero defect” initiatives of the government. This will also help in more employment generation and boost exports in the textile sector. This revised scheme would also facilitate improvement in productivity quality etc. in the textile industry Mr. Aggarwal stated.

Source: Tecoya Trend

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Ajay Tamta breifs LS on special  package to boost textiles exports  

NEW DELHI —  India has the potential to become one stop sourcing destination  for brands and retailers from ASEAN. There are opportunities for  textile manufacturers from ASEAN to invest here and cater to  domestic market as well as exports because of competitive  advantages available in India including availability of raw material  trained man-power and presence of the entire textile value chain.  Further  100% FDI is allowed in the textile sector under automatic  route.  This information was given by the Minister of State of Textiles Ajay Tamta  in a written reply in the Lok Sabha.  To increase exports of textile and apparel Government has announced a Special Package for garments and made-ups sectors.  The package offers labour law reforms  additional incentives under  Amended Technology Upgradation Fund Scheme (ATUFS)  enhanced duty drawback coverage and relaxation of Section 80JJAA  of Income Tax Act. Further the rates under Merchandise Exports  from India Scheme (MEIS) have been enhanced from 2% to 4%  for apparel and made-ups from 1st November 2017.  Products such as fibre  yarn and fabric in the textile value  chain are being strengthened and made competitive through various  schemes like Powertex for fabric segment  ATUFS for all segments  except spinning and Scheme for Integrated Textile Parks (SITP)  for all segments. Government is also providing interest rate subvention for pre and post shipment credit for the textile sector and gives assistance to exporters under Market Access Initiative (MAI) Scheme.  Further following steps are being taken by the Government for promoting the export of Handloom and Handicrafts:  * Assistance for marketing study  branding  participation in Fairs  and Exhibitions  Buyer-Seller Meets in India and abroad etc.  through Marketing and other Schemes.  * Setting up of 8 mega clusters in the country for increasing manufacturing and exports.  * Providing skill upgradation training to artisans and carpet weavers.  * Refunding excise and customs duties for importing inputs through Duty Drawback channel and Providing assistance for manufacturing  new and Innovative designs as per need.

 Source: Tecoya Trend

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Textiles body urges govt to push for duty-free access to China

The Confederation of Indian Textile Industry (CITI) today urged the Centre to negotiate with China for duty-free access to India's cotton textiles as enjoyed by other competing nations, including Vietnam, Indonesia, Pakistan and Cambodia. India was the net exporter of textile and apparel products to China during 2010-11 to 2013-14. "However, the trend has been reversed constantly since then and India is losing business to nations like Vietnam, Indonesia, Pakistan and Cambodia, who enjoy duty-free access to the Chinese market," Sanjay Jain, chairman, CITI, said in a letter written to the government recently. He informed that Indian products carry 3.5 per cent, 10 per cent and 14 per cent duty on yarn, fabric and made-ups, respectively. "India's cotton yarn exports to China has decreased by 53 per cent in 2017 from 2013, while Vietnam's exports of cotton yarn to China has increased by about 88 per cent during the same period," said Jain. India exported USD 1,362 million worth of textile and apparel products to China in 2017-18, while the country's imports from China stood at USD 2,905 million, indicating a trade deficit of USD 1,543 million, he said. "Therefore, the textile industry body has urged the government to push negotiations with China to give duty-free access to Indian cotton textiles," he added.

Source: Business Standard

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State govt to unveil new textile policy soon

Gandhinagar: With growing competition from Maharashtra, Andhra Pradesh and Telangana for investment in the textile sector, the Gujarat government is set to unveil its new textile policy by the end of August. The state government, through the new policy, aims to attract Rs 1 lakh crore in investment and create 10 lakh jobs in the textile industry over the next five years. The current textile policy, announced in 2012, will expire this September. A task force has been forced to study incentives offered under the textile polices of other states. The task force is expected to submit its final report and proposed draft policy soon. The new policy is expected to dole out several incentives, including cheap power, to attract industries to the state. The size of the textile industry, the largest employer in Gujarat, is roughly Rs 2 lakh crore, say market sources. “We studied the textile policies of Maharashtra, Andhra Pradesh, Telangana, Tamil Nadu, Uttar Pradesh and other states. We may replicate many of their schemes given the geographical and industrial similarities between Gujarat and these states,” said a senior government official privy to the development state recently declared it would reimburse state goods and services tax (SGST) to the textile industry. The reimbursement will be given in lieu of sops given to the sector under the earlier value added tax (VAT) regime.Meanwhile, it has been approved, in principle, that all the schemes under the textile policy of 2012 will be continued in the new policy as well. “The new policy envisages a special thrust on garments and technical textiles. Creating a direct linkage between cotton growers and industry is needed, hence there will be specific incentives to create linkages as well. There will also be a focus on establishing textiles parks within GIDC estates and in other parts of the state,” sources added. Gujarat’s heritage textiles such as the patola from Patan and bandhani from Jamanagar also need to be promoted. “There may be a special scheme for them as well,” sources added.

Source: Times of India

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GST Council meets today to ease tax burden on MSMEs

The 29th meeting of the GST Council on Saturday is likely to approve measures for easing tax burden on micro, small and medium enterprises (MSME) which fall below the annual turnover of Rs 1.5 crore. The relief could be extended in the form of refunds to these assessees so that the effective tax rate is cut down while the input credit chain remains intact, sources said. Additionally, the Council may again consider the proposal for incentivising digital transaction, though the group of ministers (GoM), headed by Bihar deputy chief minister Sushil Modi, recommended last month to keep the proposal in abeyance for a year and allow GST revenue collections to stabilise first. The scheme proposes a 2% (1% each for CGST and SGST) discount on the GST rate of a commodity to consumers paying through digital means. However, the benefit would have a ceiling of Rs 100. This proposal could cost the government up to Rs 1,600 crore in revenue. The GoM is scheduled to meet late evening on Friday. The decision to provide succour to the MSME sector is based on the fact that many such businesses were exempt from the excise duty in the pre-GST regime, but their tax liability now is equivalent to a combination of excise and VAT. This has robbed them of the competitive advantage since the rollout of the GST. For instance, small scale industries were exempt from excise duty for units with turnover of less than Rs 1.5 crore since 2008. Incentives to MSMEs will come with adverse revenue implication, but sources said even a small quantum of relief would cover a large part of taxpayers, given that small taxpayers contribute a small fraction to the GST revenue collection. According to official data, registered taxpayers up to turnover of Rs 1 crore constitute over 78% of the total base, but contribute less than 7% to the revenue collection. In absolute terms, these assessees pay about Rs 6,000 crore in GST every month if the total collection is Rs 90,000 crore. The Council meeting on Saturday is being held to exclusively discuss challenges facing small taxpayers, which include laws, tax rates, procedure and GST Network-related issues. The Council had allowed quarterly return filing for assessees with up to Rs 5-crore turnover in the previous meeting, but they would still need to deposit tax every month. The MSMEs sector is believed to have suffered the most in the aftermath of demonetisation. Besides, they have also had the hardest time adjusting to IT-heavy infrastructure of the GST.

Source: Financial Express

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GST Council to weigh exemption of small firms from CGST

New Delhi: Small businesses, with annual sales of as much as ₹ 1.5 crore, may not need to pay central goods and services tax (CGST), or may get a refund of the same, if the GST Council clears the proposal at its meeting on Saturday. The Union government is in talks with states on the issue, a person familiar with the matter said on condition of anonymity. Under the indirect tax system that prevailed before GST, the central government taxed goods at the factory gate (called excise duty), while the states levied value-added tax (VAT). GST replaced both, with a central GST that goes to the central government and a state GST that goes to state coffers. Businesses with revenue of up to ₹1.5 crore did not have to pay excise duty under the previous regime, and a waiver or exemption on CGST now will restore the relief that was available to them earlier. The state GST (SGST) that these entities pay will, however, remain as they were not exempt from VAT either. Hence, they will have to retain their GST registration, the person mentioned earlier said on condition of anonymity. The CGST exemption will be a major relief for small firms that form the backbone of the rural economy and create jobs for millions of people. These entities had faced a liquidity crunch and business disruption following the withdrawal of high-value currency notes in November 2016. The central government hopes the tax relief, along with the recent tax cut on consumer items such as washing machines and air conditioners, will stimulate demand and boost economic growth and revenue receipts. “An exemption of CGST will require a change in law, but if the relief is given through a refund mechanism, it could be done through a scheme with a change in rules that does not require Parliament’s approval,” the person cited above said. The idea is to bring the change without making changes to the pillars of the new indirect tax system. To be sure, the decision has to be taken by the Council, the apex body on indirect taxes. The Council has so far received over a hundred suggestions on various procedures and is getting more every day. Experts, however, said exempting or refunding CGST while retaining SGST could pose technical challenges. “This could pose operational difficulty and its benefits need to be examined in depth before taking a decision,” said Bipin Sapra, a partner at consulting firm EY. A withdrawal or exemption of CGST may, however, be seen as going back on the basic GST premise of taxing goods and services equally by both the central and state governments. Other proposals before the Council include giving registration relief to small businesses with less than ₹20 lakh sales, which are required to take GST registration because they make inter-state sales either by themselves or through e-commerce platforms. The GST Council at its last meeting in July decided to let firms with up to ₹5 crore in annual sales file tax returns quarterly, rather than monthly, while continuing to pay taxes every month. Small businesses play a key role in the economy, especially in supporting the manufacturing industry. According to data available with the government, more than 63 million micro, small and medium enterprises in the country are engaged in manufacturing, services and trade—more than half of which are in rural areas— and account for about 110 million jobs. They also contribute about 29% to the country’s economic output.

Source: Live Mint

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Ministers’ panel approves GST discounts for digital payments

New Delhi: A Group of State Finance Ministers on GST discount, headed by Bihar Deputy Chief Minister Sushil Modi, on Friday gave its nod for incentivising digital payments through a cash back mechanism. As much as 20 per cent of total GST paid up to ₹100 per transaction would be provided as cash back on digital payments made through RuPay cards, BHIM App and UPI. This move will benefit RuPay card holders as well as BHIM App users, especially those in semi-urban and rural areas, Modi told reporters here after the meeting. Even if 20 per cent of total RuPay card and Bhim App users avail this benefit, the total revenue outgo in a year for the exchequer will not be more than ₹1,000 crore, Modi added. He also said that Centre and States would equally share the spend on this front. Modi said the proposal will now be taken up by the GST Council, at its meeting on Saturday. Interestingly, the decision will apply only on cards under RuPay platform and the BHIM App.

RuPay scheme

RuPay is card payment scheme launched by the National Payments Corporation of India (NPCI). It is like the Master or Visa credit and debit card. The card got a boost when the Government decided to provide the same for Pradhan Mantri Jan Dhan Yojana (PMJDY) account-holders. According to Parliamentary questions, a total of 46.37 crore RuPay cards were issued till February. This has a major share of PMJDY account-holders. For example, as on July 4, about 24.06 crore RuPay debit cards have been issued under PMJDY. Similarly, UPI or Unified Payment Interface is another means of digital payment that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing and merchant payments into one hood. According to NPCI data for the month of June, total of 110 banks were providing UPI system where 246.37 million transactions, involving an amount of ₹40,834 crore, took place during the month. The latest proposal has been worked out after the GST Council, in its meeting on July 21, accepted the State Finance Ministers panel’s recommendation to defer the proposal of GST discount on digital payment. However, the GST Council had asked the panel to work on a new mechanism, especially for Rupay and UPI, as it thought that the two digital payment methods would benefit more and more people. Earlier, the proposal was about providing “a concession of 2 per cent in GST rate on B2C (Business to Consumer) supplies, for which payment is made through digital mode [1 per cent each from applicable CGST and SGST rates, if the applicable GST rate is 3 per cent or more] subject to a ceiling of ₹100 per transaction.” It was estimated that total revenue implication, under this proposal, for the Government would be around ₹15,000 crore.

 Source: Business Line

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India, US move a step closer to resolving trade issues: Report

The two countries have discussed concessions on medical devices, dairy and IT products. India and the United States have moved a step closer in resolving trade disputes, with India agreeing to accept some of the US' demands on medical devices and electronics (IT), Hindustan Times reports. The two countries have discussed concessions on medical devices, dairy and IT products, sources told the paper. It is still unclear if there has been breakthrough on US tariffs on steel and aluminium, and India's retaliatory tariffs, the report said. The update on the trade issue is likely to be announced before the 2+2 talks between India and the US, which will be held in September. Commerce minister Suresh Prabhu spoke to US Trade Representative Robert Lighthizer last week, the report said. Moneycontrol could not independently verify the news. For medical devices, India will probably cap the prices for some US products, instead of imposing direct price controls, the report added. India has insisted that IT products from the US meet Indian standards outlined in the Compulsory Registration Scheme for IT products. But India could rationalize costs since the US says the products already meet US standards, which are more stringent. Dairy products is an area where India is unlikely to compromise due to cultural barriers, the report said. A lot of the milk and dairy products from the US are "non-vegetarian" because cattle feed includes bonemeal. India is likely to postpone the retaliatory tariffs, which are due to start on August 4, Reuters reports.

Source: MoneyControl

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India’s forex reserves dip by $950.9 mn to $404.2 bn

The foreign exchange reserves declined by USD 950.9 million to USD 404.192 billion in the week to July 27, on account of a fall in the foreign currency assets, the RBI said today. The foreign exchange reserves declined by USD 950.9 million to USD 404.192 billion in the week to July 27, on account of a fall in the foreign currency assets, the RBI said today. In the previous week, the reserves had increased a marginal USD 67.7 million to USD 405.143 billion. A higher forex kitty is an indicator of the health of the economy as it is the direct cover for imports. The longer the import cover, the better the external health of the economy. At USD 404 billion, the nation can take care of around ten months of imports. Forex reserves had touched a record high of USD 426.028 billion in the week to April 13, 2018. The reserves had crossed the USD 400-billion mark for the first time in the week to September 8, 2017, but have since been fluctuating. In the week under review, foreign currency assets, a major component of the overall reserves, dipped by USD 1.012 billion to USD 379.037 billion, as per the latest data from the central bank. Expressed in the US dollar terms, foreign currency assets include the effect of appreciation/depreciation of the non-US currencies such as the euro, pound and the yen held in the reserves. Gold reserves rose by USD 61.1 million to USD 21.201 billion in the reporting week. The special drawing rights with International Monetary Fund (IMF) increased by USD 0.3 million to USD 1.479 billion. The country’s reserve position with the IMF also rose USD 0.5 million to USD 2.474 billion, the apex bank said.

Source: Financial Express

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Maha seeks Thailand's support in textiles, dairy, IT

State industries and mining minister Subhash Desai today sought support from Thailand for collaborations in sectors like food processing, textiles, dairy and information technology. At meeting with a delegation from Thailand here today, the minister said Thailand and Maharashtra can work together to uplift the small and medium enterprises (SMEs). "SMEs in Thailand and Maharashtra can explore joint collaborations in various sectors," he added. Desai said the state produces millions of tonnes of milk but processing facility in dairy sector is inadequate. "Similarly, the state has diverse climatic conditions and farmers are cultivating high quality food crops supported by substantial research and development. We look for Thailand's partnership in secondary treatment of these food crops, which include preservation, processing, packaging and export," he said. Seeking Thailand's support for value addition in the textiles sector, he said, "Maharashtra has set up a dedicated textile park and nine more are in the process of being developed. We hope to see majority of garments in the world market to be labelled as 'Made in India' products." Desai informed the delegation that the state accounts for 15 per cent of the country's GDP, more than 40 per cent of exports and attracted 50 per cent of the country's foreign direct investment (last year). "Maharashtra has special policy for SMEs and the government supports SMEs in land allotment, licensing, reservation and procurement so that they do not have to compete with large enterprises," he added. Speaking at the same event, Small and Medium Enterprises Promotion of Thailand deputy director general Wimonkarn Kosumas said, "There is tremendous potential to enhance partnership between Thailand and Maharashtra. We have set up a dedicated desk to promote SME collaboration with Italy and Japan. We can set up similar dedicated desk for Maharashtra as well." Kosumas also outlined a four-point programme to strengthen bilateral ties, which includes setting up a dedicated Maharashtra desk in the Office of Small and Medium Enterprises Promotion (OSMEP) in Thailand.

Source: Business Standard

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Rupee makes a U-turn, recovers 10 paise against dollar

The beaten-down rupee today staged a good show by recuperating 10 paise to end at 68.60 against the US dollar in line with a stellar rally in domestic equities despite ongoing global trade war jitters. The domestic unit yesterday plunged by 27 paise to hit a one-week low of 68.70. Today, however, steady unwinding of dollars by banks and corporates ahead of the key US labour data too supported the late upmove in the Indian currency. The forex market sentiment got revived towards the fag-end trade largely tracking strength in local shares and falling global crude prices that helped offset early steep losses in the Indian rupee. The domestic unit swung between a high of 68.60 and a low of 68.84 against the American dollar during the day. Today, however, steady unwinding of dollars by banks and corporates ahead of the key US labour data too supported the late upmove in the Indian currency. The forex market sentiment got revived towards the fag-end trade largely tracking strength in local shares and falling global crude prices that helped offset early steep losses in the Indian rupee. The domestic unit swung between a high of 68.60 and a low of 68.84 against the American dollar during the day. Meanwhile, bulls staged a spectacular comeback as stocks rallied with vigour and strength on wave of frenzied buying amid promising Q1 earnings growth outlook, lifting the Nifty to another historical close. On the energy front, crude prices drifted after China announced it would impose tariffs on USD 60 billion in US goods, the latest development in an escalating trade dispute that has raised concerns about a slowdown in economic growth. The Benchmark brent for September settlement traded sharply lower at USD 73.43 a barrel in early Asian trade. Yuan dipped further after an aggressive devaluation from the PBOC today with the Chinese currency depreciating beyond record low of 6.89 against the greenback. The People's Bank of China is devaluing its currency in response to the trade war. Earlier, the rupee opened almost flat at 68.69 from overnight close of 68.70 at the Interbank Foreign Exchange (forex) market. But, it eventually lost uptrend support and drifted sharply to hit an intra-day low of 68.84 in mid-afternoon deals. The local unit, however, regained lost ground in the second half of the session owing to some fresh US dollar selling heading into the US labour market report due later today and managed to close at the session high of 68.60, showing a gain of 10 paise, or 0.15 per cent. For the the week, the rupee appreciated by a little 5 paise.The Financial Benchmarks India private limited (FBIL), meanwhile, fixed the reference rate for the dollar at 68.7933 and for the euro at 79.6746. The bond markets, however, remained under pressure for the second straight day on expectations that the RBI may hike key policy rates higher again in order to keep inflation in check. The 10-year benchmark bond yield rose 4 bps to 7.76 per cent. Globally, the US dollar continued to hold against other major currencies, as trade tensions between the US and China lingered after reports that the White House plans to propose 25 per cent instead of 10 per cent on USD 200 billion of imported Chinese goods. The greenback was boosted after the Fed left interest rates unchanged on Wednesday, as expected. Against a basket of other currencies, the dollar index is up at 94.90. In the cross currency trade, the rupee also recovered against the pound sterling to settle at 89.42 per pound from 89.98 and bounced back against the Japanese yen to finish at 61.50 per 100 yens from 61.63 yesterday. The local currency maintained its firm trend against the euro to close at 79.60 as compared to 79.80 earlier.Elsewhere, the pound sterling is trading little changed on the downside against the US dollar after the Bank of England delivered dovish rate hike and the UK services PMI fell sharply to a three-month low in July. The common currency euro bounced back from its early 5-week low to trade marginally weak against the greenback after eurozone services and composite PMIs both fell below expectations in July generating little market stimulus amid renewed global trade war jitters. In forward market today, premium for dollar showed lacklustre trading activity due to lack of market moving factors. The benchmark six-month forward premium payable in December eased to 120-122 paise from 120.75-122.75 paise and the far-forward June 2019 contract softened to 268-270 paise from 268.50-270.50 paise on Thursday.

Source: The Economic Times

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Private sector investment may see rise

The value of new project announcements by the private sector rose for the first time in two years in the June 2018 quarter, analysis by The Hindu of the latest data by the Centre for Monitoring Indian Economy (CMIE) showed. Within this, the bulk of the announcements were made by foreign companies. Private sector new project announcements, worth Rs. 2.02 lakh crore in the June 2018 quarter, grew 43% over what was announced in the same quarter of the previous year, according to the data. This is the first quarter of growth in this category since June 2016. In contrast, the government announced new projects worth Rs. 27,453.4 crore in the June 2018 quarter, a contraction of 77.6% over the June 2017 quarter. This marks the fifth consecutive quarter of contraction in the value of government new project announcements. As a result, private sector announcements made up 88% of all new project announcements in the quarter, the highest proportion the sector has achieved since September 2003, the earliest period for which the Centre for Monitoring Indian Economy has data. While new project announcements in themselves do not portray a complete picture of investment activity in the country since many of these projects might not reach completion, analysts do say that such announcements reveal the intent and mood —especially of the private sector — for the immediate future.

Note ban, GST impact

“There were two major issues due to which the private sector got a jolt — demonetisation, to an extent, and also GST,” Abhishek Rastogi, partner, Khaitan & Co told The Hindu . “Now, I think, the impact of these two massive changes are not there at least on the downside. That’s why the revival of the private sector, and specifically MSMEs, should take place. If you see, a lot of these investments are by medium-sized entrepreneurs. The government has taken a few steps towards the revival of MSMEs.”

Foreign firms to invest

Within private sector new project announcements, the bulk of the growth was due to the announcements made by foreign companies, the data showed. New project announcements by the Indian private sector accounted for 30.4% of all announcements made by the private sector in the June 2018 quarter. The foreign private sector, in comparison, accounted for an overwhelming 69.6% of such announcements.

Source: The Hindu

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Smriti Irani to open Yarn Expo in Surat today  

SURAT : The first edition of Yarn  Expo 2018 organised by  Southern Gujarat Chambers of  Commerce & Industry (SGCCI)  will opened by Zubin Irani  Minister of Textiles  here  tomorrow. Dr. Kavita Gupta  Textile Commissioner and Mr.  R. D. Udeshi  President  Polyester Chain  Reliance  Industries will be the Guests of  Honour at the inauguration  ceremony..  SGCCI has also planned  several events which will run  concurrent to Yarn Expo 2018  exhibition. On August 4  there  will be a conclave  whose topic  is ‘Future Opportunities – Yarn  and Fabrics’.  The conclave will see  participation of Mr. Udeshi  Mr  J Raghunath  Vice President  (Polyester Chain)  Reliance  Industries and Mr Rahul Mehta  President  Clothing  Manufacturers’ Association of  India (CMAI).  There will also be a  fashion show which will be  jointly presented with the  National Institute of Fashion  Technology (NIFT) on August 5  2018 from 6-8 PM.  Additionally  there will be  a seminar on August 6 which will  see discussions on several topics.  Topics include ‘Developments in  Nylon Yarn’ by Mr. Sanjay  Mehrotra  Vice President  (Marketing)  Century Enka  Limited and Mr. Manish Daga  Director  Cotton Association of  India (CAI)  who will share his  views on ‘Cotton and Yarn  Market Trends in 2018-19’.  There will also be a  presentation by YES Bank on  ‘Facilities provided to MSME’s’  DIC will give a presentation on  ‘Gujarat Government Schemes  for MSME’s’  while  there will  be another presentation by NSIC  on ‘Central Government  Schemes for MSME’.

Source: Tecoya Trend

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Heimtextil India draws a crowd

Mumbai – Heimtextil India and Ambiente India hosted more than 7,000 visitors during its annual summer edition. The co-located shows featured 165 exhibitors and more than 300 brands. This year’s event theme was “My Heritage, My New India,” which traced heritage influences and modern design inspirations through novel product displays and first-looks of the season. Buyer delegations included the Hospitality Purchase Managers Forum (HPMF), Buying Agents Association (BAA) and Corporate Gifting Association of India (CGAI). Foreign buyers came from Australia, China, France, Germany, Japan, the UK and the U.S.

Source: Home Textiles Today

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Global Textile Raw Material Price 02-08-2018

Item

Price

Unit

Fluctuation

Date

PSF

1360.87

USD/Ton

0.22%

8/2/2018

VSF

2048.62

USD/Ton

0%

8/2/2018

ASF

3116.83

USD/Ton

0%

8/2/2018

Polyester POY

1470.62

USD/Ton

0%

8/2/2018

Nylon FDY

3409.49

USD/Ton

0%

8/2/2018

40D Spandex

5121.55

USD/Ton

0%

8/2/2018

Nylon POY

3087.56

USD/Ton

0%

8/2/2018

Acrylic Top 3D

3219.26

USD/Ton

0%

8/2/2018

Polyester FDY

1668.16

USD/Ton

0%

8/2/2018

Nylon DTY

3511.92

USD/Ton

0%

8/2/2018

Viscose Long Filament

5523.96

USD/Ton

0%

8/2/2018

Polyester DTY

1690.11

USD/Ton

0%

8/2/2018

30S Spun Rayon Yarn

2765.64

USD/Ton

0%

8/2/2018

32S Polyester Yarn

2114.47

USD/Ton

0%

8/2/2018

45S T/C Yarn

2868.07

USD/Ton

0%

8/2/2018

40S Rayon Yarn

2926.60

USD/Ton

0%

8/2/2018

T/R Yarn 65/35 32S

2502.24

USD/Ton

0%

8/2/2018

45S Polyester Yarn

2268.12

USD/Ton

0.65%

8/2/2018

T/C Yarn 65/35 32S

2443.71

USD/Ton

0%

8/2/2018

10S Denim Fabric

1.37

USD/Meter

0%

8/2/2018

32S Twill Fabric

0.84

USD/Meter

0%

8/2/2018

40S Combed Poplin

1.17

USD/Meter

0%

8/2/2018

30S Rayon Fabric

0.66

USD/Meter

0%

8/2/2018

45S T/C Fabric

0.70

USD/Meter

0%

8/2/2018

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14677 USD dtd. 2/8/2018). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

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Trade War Update: Is China Dumping Products In India?

China is dumping products in India, an Indian parliamentary panel suggested recently. As the trade war goes on unabated, China’s trade practices in India—selling its oversupply to another country, depressing prices and hurting native manufacturing—stand as a testament to Beijing’s unwavering position on global trade. China’s Ministry of Commerce said the U.S. attacks on its trade practice “won’t work.” China announced today that they are preparing $60 billion in more tariffs if the U.S. imposes tariffs on $200 billion, likely by the end of August. In India, a government committee said Chinese imports were “hitting Indian industry hard and causing unemployment.” A July 26 article, published in The Economic Times, cites an official report by the Parliamentary Standing Committee on Commerce as blaming the government of Narendra Modi for not addressing the trade issue with China. The report also expressed concern about India’s widening trade deficit with China, which could be exacerbated by China exporters redirecting goods elsewhere in a bid to fend off supply issues caused by U.S. trade tariffs. “At a time when there is an urgent need to stimulate our manufacturing sector to at least 25% of the country’s GDP, Chinese imports have thrown a spanner in the wheel of India’s economic progress per se and industrial manufacturing in particular,” the Parliamentary Standing Committee on Commerce said in its 145th report submitted to the lower house of Congress last week.

Source: Forbes

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China's Unipec suspends U.S. oil imports as trade spat intensifies

SINGAPORE/BEIJING (Reuters) - China’s Unipec, the trading arm of state oil major Sinopec, has suspended crude oil imports from the United States due to a growing trade spat between Washington and Beijing, three sources familiar with the situation said on Friday. The sources declined to be identified as they are not authorized to speak to the media. It is not clear how long the temporary halt will last, but one of the sources said Unipec has no new bookings of U.S. crude until at least October. Unipec and Sinopec (600028.SS), Asia’s largest refiner and biggest buyer of U.S. oil, did not respond to requests for comment. Chinese buyers had already slowed their purchases of U.S. oil to avoid a likely import tariff threatened by Beijing amid the escalating trade dispute between the world’s two largest economies. Beijing has put U.S. energy products, including crude oil and refined products, on a list of goods it will hit with a 25 percent import tax in retaliation for similar moves by Washington. It has not said when it will impose the tariffs. Unipec said earlier this year it expects to trade up to 300,000 barrels per day (bpd) of U.S. crude oil by the end of the year, about triple its trading volume of U.S. oil last year. China’s crude oil imports from the United States reached an average of 334,880 bpd in the first eight months of this year, according to trade flows data on Thomson Reuters Eikon. The amount of U.S. crude arriving in September is expect to fall to 197,515 bpd, as only three supertankers are en-route to China, the data showed. The absence of China, the largest buyer of U.S. crude after Canada, has partly weighed on U.S. spot crude prices, making them more affordable for other buyers in Asia. Unipec will continue trading U.S. crude, selling the oil to Europe, one of the sources said. Still, it is unlikely to ship any of the oil to the east as it no longer has a backstop for the oil if it cannot find a buyer at the right price during the voyage, said three traders that participate in the market. China’s prohibitive import tariff, which amounts to close to $18 a barrel when crude is at $70, has also deterred other Chinese buyers such as state-owned companies PetroChina, as well as state-controlled Zhenhua Oil and independent refiners, from importing U.S. crude, they said. Meanwhile, a narrower price spread between the Brent and Dubai crude benchmarks has made oil from Europe and Africa that is similar in quality to the U.S. crude more affordable for China. China’s oil imports from West Africa are set to rebound in August to 1.6 million bpd, the highest since May, according to data on Eikon. Unipec has also bought North Sea Forties and Russian Urals last month for September delivery when the arbitrage opened, trade sources said.

Source: Returns

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Ghana: Govt Mandates Committee to Evict Foreigners in Retail

Government has handed executive powers to the Committee on Retail Trade to ensure that foreigners engaged in the sector fully complied with laws governing trade in the country as part of efforts to sanitise the industry. Mr Alan Kwadwo Kyerematen, the Minister of Trade and Industry (MoTI) has thus been appointed to chair the committee to ensure it delivered on its mandate. It would be recalled that in May 2018, a 21-member committee, chaired by Julius Kofi Gbogla, Assistant Commissioner of Immigration, Ghana Immigration Service (GIS), was inaugurated by MoTI to enforce article 27(1a) of the Ghana Investment Promotion Centre Act 865, 2013. The law states that, "a person who is not a citizen or an enterprise which is not wholly owned by citizen shall not invest or participate in the sale of goods or services in a market, petty trading or hawking or selling of goods in a stall at any place." The committee was also to combat pirated goods on the Ghanaian market while making sure that local textile producers survived in the industry. However, there has been a heightened tension between the committee and retailers with the latter resisting attempts by the team to insist on the law. A joint statement issued by MoTI and the Ghana Union of Traders Association (GUTA) after an emergency stakeholder meeting in Accra on Tuesday, nonetheless, asked the committee to "continue with its work with a higher level of executive authority" as Mr Kyerematen took up the position of "new chairman of the committee." The meeting which deliberated on legal, socio-economic, political, diplomatic and security issues relating to maintenance of peace, order and sanity in the domestic retail landscape while ensuring compliance with relevant laws and regulations, reaffirmed "government commitment to support Ghanaians in the retail trade sectorIt had in attendance government officials, security personnel, civil society organisations, members of parliament and executives from the trading community where members agreed to include representatives from the Ghana Standards Authority (GSA) and Food and Drugs Authority (FDA) on the Retail Committee.

Source: Ghanian Times

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EU tariffs gutting the already fading U.S. jeans industry

Victor Lytvinenko is thumbing through emails on his iPhone trying to find the one that best shows the damage the global trade war has already done to his little, decade-old American jeans company. The 37-year-old – dressed in a black t-shirt, rolled-up blue jeans and a pair of Stan Smiths – eventually looks up after finding the message. It’s from a customer in Scotland who’s apologizing for canceling an order worth tens of thousands of dollars. The reason? The shop owner balked at paying an additional 25 per cent tariff the European Union slapped on American-made jeans in June as part of its response to President Donald Trump’s duties on steel and aluminum. “We’ve already lost two accounts,” said Lytvinenko, who co-founded Raleigh Denim Workshop with his wife, Sarah Yarborough, in 2008. “That hurts.” Lytvinenko was in Manhattan in late July for an apparel trade show. The annual trip was usually a fun excuse to catch up with customers or play ping pong over beers with friends also trying to earn a living making clothes in the U.S. But this year was different. The talk was very much about how American-made jeans – of all things – had been pulled into the trade spat.

INDUSTRY IN PERIL

It’s the latest gut punch for an industry that had already declined into a shell of what it once was. In the past year, two of the last-standing major denim mills closed, including the biggest: Cone Denim’s facility in Greensboro, North Carolina, that many firms say was the last to make high-end denim fabric in the U.S. on a large scale. Increases in California’s minimum wage also helped drive several apparel factories in Los Angeles to shutter or move to Mexico, adding to a tumultuous year for an industry that’s been just hanging on. On top of that, free-trade agreements had been pushing blue jean-making overseas for two decades, and now the remaining manufacturers can’t believe the irony of getting hit by a return to protectionism. Major brands, like Levi Strauss & Co., had already largely bailed, shifting almost all of their production to Asia or Mexico. What’s left is mostly small businesses surviving by pitching craftsmanship and Americana in the premium end of the market with jeans priced at $200 or more. “It’s another blow,” said Roy Slaper, who runs jeans-maker Roy Denim in Oakland, California. The tariffs don’t make sense economically because U.S. production is such a “microscopic” part of the global market, he said. The U.S. shipped just $31 million worth of jeans to the EU last year, or about 16 per cent of the industry’s total global exports. “But politically, I can see why. Nothing is more American than jeans.”

DENIM BIRTHPLACE

American blue jeans were born in San Francisco in the 1870s, and became a symbol of the frontier with Levis Strauss making the first pairs for miners working in the California gold rush. By the 1960s, they had evolved into a fashion emblem of cool and rebellion after pop icons like actor James Dean wore them. The EU no doubt had symbolism on its mind – it placed duties on bourbon, too. “They should put a tariff on hot dogs and apple pie, as well,” said Slaper, who has been making jeans for a decade. “I get it.” Europe had already been a difficult market for American-made brands because it protected its apparel and textile industries. The EU had 12 per cent duties on jeans in place, meaning that with the additional tariff, importers are now on the hook for 37 per cent. “It is a slap in the face,” for companies dedicated to American manufacturing, said Scott Morrison, the founder of New York-based premium denim company 3x1. With two decades in the industry, he’s one of the few to survive the great migration overseas. So far, the company has been sharing the cost of the tariff with a European distributor and avoided raising prices, but “we are not sure if it’s sustainable for a small business like ours,” Morrison said.

SUPPLY CHAINS

The production of blue jeans is a testament to how global trade has evolved. The cotton can come from the U.S. and be made into denim in Pakistan. The cutting and sewing then might take place in Indonesia and finished off with buttons and zippers from China. But making jeans still requires more labour than other clothing because of all the sewing and finishing touches like making them look distressed. And while moving production to lower-cost markets has reduced prices for consumers, it’s also given big companies even more advantages. Larger firms have the money and expertise to adjust their supply chains. Their clout also gives them leverage to pressure suppliers to take on cost increases. If they don’t oblige, production can be moved. That’s what happened in L.A., with minimum wage hikes convincing some brands to source from Mexico – where labour is much cheaper, according to Ilse Metchek, president of the California Fashion Association. “The issue is it’s so difficult to make it here,” said Metchek, who has been in the apparel business for more than 50 years. Los Angeles used to be this “cluster of denim, but not anymore.” Of course, moving to Mexico is so advantageous because jeans can be shipped into the U.S. without any duties under the North American Free Trade Agreement. But Nafta is also what helps make Canada, a member of the pact, the industry’s biggest export market at more than three times the size of the EU at $108 million last year.

USA REVIVAL?

There are other bright spots, too. A new denim mill is being built in Louisiana. Plus, Denimburg in Edinburg, Texas – a large mill that’s just a few years old – is witnessing increased demand for made-in-America fabrics from brands like Calvin Klein. “We are seeing some signs that there are opportunities for a small revival,” said Mike Brown, who is commercial director for Denimburg and has been in the industry for four decades. “But it’s never going to be as big as it once was.” Back at Raleigh Denim, which makes jeans at a 7,000 square-foot factory in the downtown of North Carolina’s capital city, Lytvinenko is still worried about the tariffs because some European customers aren’t responding to emails about their next round of orders. “We’ve been viewing Europe as a huge market opportunity,” he said. “It’s a huge bummer because we’ve been growing every year, creating manufacturing jobs and building great products here in North Carolina. This hurts our prospects.”

Source: Bloomberg

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China says it seeks more ways to support economy amid uncertainties

An escalating trade war with the United States, rising corporate bankruptcies and a steep decline in the value of the yuan versus the dollar have raised concerns that China's economy could face a steeper slowdown. China must balance steady economic growth and risk prevention at a time external uncertainties are increasing, a statement on a meeting of a high-level government body said on Friday. The State Council Financial Stability and Development Commission (FSDC), headed by Vice Premier Liu He, said more attention needs to be paid to the “transmission” of monetary policy and its support for the real economy, according to a statement on a government website. China’s economy is still in a period of transition between new and old drivers… and external uncertainties are increasing,” it said. “These issues need to be addressed actively, steadily and more accurately.” An escalating trade war with the United States, rising corporate bankruptcies and a steep decline in the value of the yuan versus the dollar have raised concerns that China’s economy could face a steeper slowdown. The government has responded by releasing more liquidity into the banking system, encouraging lending and promising a more “active” fiscal policy. Friday’s statement did not give a date for the FSDC meeting, which was the second regular one for the body, after July 2. Based on the statement, the latest meeting focused much more on ensuring credit for real economic activity. It also added a reference to rising external uncertainties, which was not mentioned after the July 2 meeting, though there was no specific mention of trade frictions or the falling yuan on Friday. “Currently, financial conditions are generally improving and the macro leverage ratio is stabilising,” the statement said. “Market expectations have changed – financial institutions are more aware of compliance, and steps have been made to contain rapid expansion and illegal fundraising activities in the financial sector.”

NEW DRIVERS SOUGHT

The statement was in line with recent pronouncements that China needs to more actively support economic growth, and ensure productive firms aren’t cut off from credit as a side-effect of a government drive to reduce financial-system risk. A central bank adviser said on Wednesday China should limit the credit impact of its financial deleveraging drive, voicing concern that tightening may have gone too far. China must “support the creation of final demand, and develop new drivers and direction for the real economy”, said Friday’s statement. In order to ensure credit is going to support productive economic activity, especially small firms, China should step up lending assessments and internal incentives, the commission said. There should also be incentive mechanisms in the financial sector, with praise for achievements and encouragement when efforts are made to fix mistakes. China will continue to crack down on illegal financial activities and institutions, the meeting decided.

Source: Indian Express

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