Ahmedabad: A textile manufacturing hub is likely to come up in Bardoli taluka of Surat district, with a slew of micro, small, and medium Enterprises (MSMEs) in the textile sector making investments in the region. According to top officials of the Gujarat Industrial Development Corporation (GIDC), 207 textile weaving units are set to come up in the newly developed Bardoli-II Industrial Estate in Miyawadi village of Bardoli taluka. The estate is 48km from Surat city, which is the country’s biggest man-made fabric manufacturing hub. GIDC officials said that the majority of these industrial establishments will be weaving units. “We have recently allotted more than 250 plots ranging from 250 square metres to 1,000 square metres in the Bardoli-II Industrial Estate,” said a GIDC official in Surat. “With this, allotment of around 25 hectares of land has been completed.” The official said that the weaving units will install power looms, jacquard-fitted looms, and rapier looms. “Several power loom weaving units, which operate in small set-ups in Surat and are looking to expand their business, have invested in the Bardoli estate, given its proximity to Surat,” the official said. A cumulative investment to the tune of Rs 200 crore will be made by these textile weaving units, a state government official said. The units, when fully operational, will manufacture 2 lakh metres of fabric daily. More than 35% of these units are women-owned and will employ a large number of women. “Some of these units will produce embroidered fabrics and therefore will hire more women,” said the state government official. The upcoming hub is expected to generate direct employment for 5,000 people. “The textile industry is labour-intensive, which does not involve much investment,” said D Thara, vice-chairman and managing director of the GIDC. “The cumulative investment of these units will be moderate, but it will help generate significant employment for local residents. Besides, allied industries such as logistics will also get a boost, generating more indirect employment.” Miyawadi is one of GIDC’s newly developed industrial estates, which is attracting investments from MSMEs in the engineering and food processing sectors as well.
Source: Times of India
NEW DELHI: Commerce and Industry Minister Suresh Prabhu has asked various ministries such as textiles, MSME and chemicals to explore export opportunities in South Asia with a view to promoting India's outward shipments. The Commerce Ministry was focusing on nine sectors - gems and jewellery, leather, textile and apparel, engineering, electronics, chemicals and petrochemicals, pharma, agri and allied and marine products, an official statement said Wednesday. The minister held a review meeting of the Sectoral Export Promotion Strategy last week. The meeting was attended by Commerce Secretary, DG Foreign Trade, Secretaries of Textiles and Chemicals and Petrochemicals, other senior officers from Ministries and Departments of Electronics, MSME, Agriculture, Animal Husbandry and Defence Production. "He urged the ministries to work on tapping the opportunities with countries in this region, particularly in South Asia, as there is huge potential to increase. The Minister also underlined the need for exploring barter arrangements with specific countries as well as collaborative exports in partnership with other countries. Prabhu asked the line ministries to adhere to India's WTO commitments while designing their export promotion policies. The Commerce Minister further said that industries which were relocating from China on account of rising labour cost should be invited to invest in India. In the meeting, Commerce Secretary Anup Wadhawan, informed the participants that comprehensive efforts were being made for promoting exports of merchandise and services to improve and stabilise the current account. He stated that specific short and long term goals, and territory and commodity wise action points have been identified by the Commerce Department for export promotion. He also said that discussions were on to provide priority sector status to export credit to enhance the volume of cre Exports are up by 16.13 per cent to USD 136.10 billion in April-August 2018-19. DGFT informed that based on the inputs received from Export Promotion Councils, line ministries and other stakeholders, a comprehensive export strategy and action plan has been finalised. "Commodity-wise and territory-wise specific short-term and long-term goals have been put on a matrix, to enable regular monitoring of implementation of action plan at the highest level," it said. Issues like removal of pre-import condition, retrospective amendment in CGST rules, allowing flexibility of product mix in case of pharma products as long as pollution load is same, have been taken up with the respective ministries.
Source: Financial Express
New Delhi : Worried over the rupee depreciation against the US dollar and the growing trade deficit, Commerce and Industry Minister Suresh Prabhu has convened a meeting of top officials from key Ministries and Departments to look for viable solutions. Secretaries and other senior officials from the Ministry of Petroleum and Natural Gas, Department of Economic Affairs, Ministry of Coal, Ministry of Electronics and IT, Department of Industrial Policy & Promotion, Department of Pharmaceuticals and Ministry of Steel will attend the meeting to be chaired by Prabhu on Thursday. “Although our exports are on the rise, a widening trade deficit due to higher imports is worrying. The pressure on the rupee is also making things tough both for importers as well as exporters,” a government official told BusinessLine. The Commerce Ministry is already working on a strategy to boost exports in key areas in coordination with line ministries. “While boosting exports is key to checking trade deficit, one has to look at ways to also lower imports through import substitution. Moreover, the falling rupee is making things tough for importers and exporters who hedged their risks,” the official added.
Uncertainty for exporters
According to the Engineering Export Promotion Council, an unstable rupee exacerbates uncertainty for the exporters as any real impact on exports gets muted due to several factors such as all-round depreciation of currencies of all the emerging markets, and increase in raw material costs for the export consignment. Although rate of growth in exports is over 16 per cent in the April-August 2018-19 period, the government wants to increase it to a higher trajectory to make a dent in the rising trade deficit which crossed $80 billion in the first five months of the fiscal compared to $67 billion in the same period last year. The meeting is also likely to focus on ways to check imports further. Last week, the Finance Ministry raised import duties on 19 items including air-conditioners, refrigerators, washing machines, footwear, jewellery, furniture fittings and tableware, in a bid to check their imports. “The government is open to the possibility of identifying more products where duties could be raised without hurting domestic units or flouting multilateral rules,” the official added.
Source: Business Line
In FE Asia, PTA prices weakened by US$ 30/ton in the prior week to US$ 1020/ton from US$ 1050/ton in the last week, down by 2.86 per cent. In SE Asia, PTA prices slipped to US$ 1040/ton in the previous week as compared to US$ 1060/ton in the earlier week, a fall of US$ 20/ton. PTA prices in China stepped down by 1.93 per cent to US$ 1015/ ton in the previous week after a reduction of US$ 20/ton in the past week. India witnessed a reduction of US$ 15/ton in PTA prices in the last week while registering at US$ 1050/ton in comparison to US$ 1065/ton in the week before.
Source: Fibre2fashion
The rupee on Wednesday crashed to new lows hitting 73.4163 against the greenback in intra-day trade before staging a mild recovery to close at 73.34. As importers rushed to cover, the premium on three-month forward contracts jumped three basis points (bps) over Monday’s close to around 4.5%. On August 1, the premium on the forward contract was around 4.407%. The pressure on the currency has been exacerbated by elevated prices of crude oil, which are hovering around the $85-mark and a strengthening dollar. On Wednesday, the dollex was trading at 95.58; in early August the dollex was ruling at around 94.66. The dollar has been strengthening given the US Federal Reserve has been raising interest rates and has declared its intention to raise them further. MV Srinivasan, vice-president, Mecklai financial services, said that the main reason of the rupee depreciation is the elevated crude oil prices around $85/barrel, a near four-year high. Rupee, Rupee value, US dollar, united states, market, money, dollexIn addition, a stronger dollar, euro and pound have fuelled the depreciation. “A dollar window for the oil marketing companies (OMCs) will bring immediate relief and will reduce the dollar demand but it is crucial to know whether the OMCs are willing to bear the cost of the swaps. The recent measures by the Reserve Bank of India may bring long term relief but immediately there seems to be no correction in the currency. We are hopeful that the RBI announces certain measures,” Srinivasan noted. The currency has lost 7% since August 1 and around 13% since January. In the off-shore markets, the three-month non-deliverable forwards (NDF) were ruling at around 74.49/$ on Wednesday almost flat over Tuesday’s close. On August 1, the NDF rates were in the region of 69.04/$. The rupee had retreated during the day’s trade primarily because of speculation the central government and the RBI had agreed on a special dollar window for the OMCs. However, the rumours were later denied by the authorities following which the rupee continued on the downside, experts said. The sentiment in the NDF markets coupled with a negative view on rupee assets was the reason behind the rupee’s massive fall to the all-time low of 73.3412/$ on October 3, currency dealers said. The mounting tension of possible US sanctions on the oil supply from Iran has left prices of crude oil elevated and impacted all the emerging market currencies, India being no exception. The bond yields closed the trading session at 8.11%. Dealers said the yield will continue to rise as long as the currency is on a depreciating path. Crude oil prices remain elevated at $85 levels/barrel, up nearly 18% since August 1.
Source: Financial Express
A model presents a creation during Swedish School of Textiles catwalk show at the Freemasons Hall during London Fashion Week Women's in London, Britain September 14, 2018.Chinese Orient International considers investing in the textile industry of Bulgaria. Desislava Doncheva, the chairman of the Bulgarian-Chinese Chamber of Industrial Development, confirmed that the interest of the company in investing in the country is shown by the organization of the Bulgarian-Chinese Forum "Innovations in the Textile Industry" in Bulgaria. The company does import and export, and logistics. Ms. Doncheva said in an interview with Bloomberg TV Bulgaria that the textile giant has a total of 100 plants in which 50 are in China and the remaining is outside of Asia. She added that the company has no investment in Europe. The chairman added that the three-day stay of Chinese Orient International's representatives in Bulgaria was aimed to be acquainted with the textile industry and the opportunities of the Bulgarian Market. She also said that the company owns a variety of fashion brands, it employs about 77,000 employees, and it is a leader in the textile industry for the automotive industry. The company started its operation in 1994 in Shanghai. Doncheva said that the Chinese company has impressed with the quality of the final product and the working environment in Bulgaria. It is also impressed with the country's working conditions and the attitude of employers towards their workers. Investments in Bulgaria pour in as its economy increases. Reports showed that Bulgaria's economy increased at around 0.8 percent in the second quarter of 2018 based on the data presented by its National Statistical Institute (NSI) on September 7. It is in-line with the NSI's estimate last month. It was reported that when compared to Bulgaria's economy in 2017, the economic growth of the country in the second quarter was 3.4 percent. The country's gross domestic product (GDP) in Bulgaria in April-June was 25.91 billion leva or 13.25 billion euro. The institute's preliminary data presented the country's domestic consumption growth of about two percent when compared to January -March. The country's Gross fixed capital formation also increased by 0.3 percent in the second quarter when compared to the 4.6 percent growth registered in the first quarter. However, the company's export was reported to decrease by 1.3 percent while its import industry flourished to an increase of about 0.9 percent resulting in a trade deficit of 422 million leva. Bulgaria plans to reach a 3.9 percent economic growth target in 2018 as enclosed in its Budget Act macroeconomic framework in the aim of surpassing the 3.6 percent growth in 2016. New investments in the country are expected to affect its economic growth by the end of the year.
Source: Business Times
US economic growth accelerated in the second quarter at its fastest pace in about four years. Gross domestic product (GDP) rose at a 4.2 per cent annualized rate in the second quarter, according to the commerce department, which released its third estimate of GDP growth for the April-June quarter. The figure is the same as the estimate published in August. The economy grew at a 2.2 per cent pace in the January-March period and by 3.2 per cent in the first half of 2018, according to US media reports. The second quarter growth was driven by the US administration’s $1.5 trillion tax cut package, which boosted consumer spending. (DS)
Source: Fibre2fashion
The 14th edition of Milano Unica China has been successful as an effective working tool for the promotion of high-end Italian textile businesses in the Chinese market. The recently concluded three-day trade show in Shanghai offered buyers and operators an overview of the Autumn/Winter (A/W) 2019-20 collections from more than 40 Italian companies. “Also on this occasion, we have bet on innovation, suggesting an earlier date, which enabled us to meet customers still concentrating on the current season. The decrease recorded during the last day, which contributed to the overall -10 per cent reduction, is certainly due to the concurrent beginning of the traditional holiday week in China and was also influenced by a concern about reduced spending recorded globally in the first semester of 2019. The mission of our 42 exhibitors was in any case positive in terms of contacts and orders received. We were also honoured by the visit of the new consul general in Shanghai, Dr Michele Cecchi. He expressed appreciation for the quality of the products on display during the meeting with the exhibitors and underlined how Milano Unica is a virtuous example of collaboration between private businesses and public institutions, teaming up to promote the excellence of made-in-Italy production in the world," said Ercole Botto Poala, president of Milano Unica and also exhibitor. "The importance of the collaboration between private businesses and public institutions was, once again, highlighted by the success of the 14th edition of Milano Unica China, which contributes to reinforcing the international expansion of Italian businesses and, concurrently, supporting the image of made-in-Italy production in a strategic market like the Chinese one. The economic commitment of the Italian government is fully justified by the positive results recorded by the trade show, certainly obtained thanks to an efficient organization and an unparalleled display style," added Massimiliano Tremiterra, director of ICE Agency, the Italian trade promotion agency, Shanghai. "The sparkling start was followed by a second part in sharp decline, due to the concurrent beginning of the Chinese golden week. However, our selection of buyers ensured good quality contacts. We will continue to work on this in order to optimize our exhibitors’ time in the management of their relations," concluded Massimo Mosiello, general director of Milano Unica. (RR)
Source: Fibre2fashion
US President Donald Trump recently announced his intention to appoint National Council of Textile Organisations (NCTO) vice chairman for 2018-19 Don Bockoven to the Advisory Committee for Trade Policy and Negotiations (ACTPN) for a four-year term. Bockoven is the president and chief executive officer (CEO) of Leigh Fibers and ICE Recycling. “NCTO is very appreciative of this announcement. Don Bockoven is highly respected leader in the US textile sector,” an NCTO press release quoted president and CEO Auggie Tantillo as saying. The ACTPN is the principal trade advisory committee that provides overall policy advice on trade matters to the Office of the US Trade Representative (USTR).
Source: Fibre2fashion
The United States, Canada and Mexico recently agreed to update the North American Free Trade Agreement (NAFTA) that governs trade among the three nations. Most of the key provisions in the new United States-Mexico-Canada Agreement (USMCA) will not start until 2020 because it needs to be signed by leaders from the three countries and approved by the respective legislatures. The three nations will review the agreement after six years. Under a unanimous agreement, the deal may continue for the full 16-year period, US media reported. Chapter 19 of the agreement, which allows for a special dispute process and was a bone of contention between the United States and Canada, stays intact. The chapter allows the three nations to challenge each other’s anti-dumping and countervailing duties in front of a panel of representatives from each country. The US Administration also signed ‘side letters’ allowing Mexico and Canada to dodge President Donald Trump’s auto tariffs. Trump has repeatedly threatened to slap hefty tariffs on car and vehicle parts coming from overseas into the United States. The USMCA has made several significant changes to environmental and labour regulations, especially related to Mexico, and contains more-stringent protections for patents and trademarks, including for biotechnology, financial services and even domain names. A Committee on Textile and Apparel Trade Matters has been established composed of government representatives of each country. The United States shall not apply customs duties on textile and apparel goods assembled in Mexico from fabrics wholly formed and cut in the former, excluding visible lining fabrics, and exported from and re-imported into the United States. On the request of one of the three nations, all parties shall consult to consider whether particular goods should be subject to different rules of origin to address issues of availability of supply of fibres, yarns or fabrics in the free trade area. The goal of the new deal is also to have more cars and truck parts made in North America. Starting in 2020, to qualify for zero tariffs, a car or truck must have 75 per cent of its components manufactured in one of the three nations, a boost from the current 62.5 per cent requirement. National Retail Federation (NRF) president and CEO Matthew Shay said the federation will carefully review the agreement to ensure it promotes US economic growth and maintains access to the products American families need at the prices they can afford. “Unlike the original NAFTA, the new agreement includes a separate textile and apparel chapter. This outcome is a tangible recognition by all three parties of the importance of textile manufacturing to the regional economy,” noted National Council of Textile Organisations (NCTO) president and CEO Auggie Tantillo.
Source: Fibre2fashion
The United States would have most to lose if it started a trade war with other countries, while China would be better off after retaliating, according to a recent study by the European Central Bank (ECB) in Frankfurt. The study suggested the United States would bear the brunt of diminished trade and of damage to consumer and investor confidence. The theoretical study that not replicate actual trade conditions simulated a 10 per cent US tariff on all imports and an equivalent retaliation from other countries. US growth would be cut by more than 2 percentage points, the ECB estimates. By contrast, China would gain by exporting more to countries where US goods are subject to tariffs, although that slight gain would be temporary and partly offset by a negative effect on confidence, global news wires reported citing the study. Global trade, meanwhile, could fall by up to 3 percent relative to the baseline.
Source: Fibre2fashion
Canadian Prime Minister Justin Trudeau recently met visiting Spanish counterpart Pedro Sánchez and both sides approved the Canada-Spain Cooperation Agenda, an agreement to collaborate more closely to create economic growth, combat climate change, advance gender equality. As part of the agreement, both underlined their commitment to free trade. The two leaders also approved the Declaration in Favour of Gender Equality, which outlines actions to tackle persistent gender inequalities and meet the goals outlined in the 2030 Agenda for Sustainable Development, according to a press release from the Canadian prime minister’s office. Both countries will redouble their efforts to end gender-based violence, take action to reduce gender wage gaps, and encourage the participation of women and girls in science, technology, engineering, and mathematics. Gender equality will also guide both countries’ foreign policy work and engagement in international institutions such as the United Nations, the press release said.
Source: Fibre2fashion
