India's textile and apparel exports stood at Rs 1,986 billion for October 2018 as against Rs 1,489 billion in the corresponding month last year. Textiles and apparel exports jumped by a staggering 33 per cent in October because of higher overseas demand. Led by the US, the largest importer of India’s clothing, the boom has been triggered by recovery in the global economy. Depreciating rupee helped boost realisations of textile, apparel exporters. According to data compiled by the Ministry of Commerce, the country's textile and apparel exports stood at Rs 1,986 billion for October 2018 as against Rs 1,489 billion in the corresponding month last year. While overall textiles exports posted a jump of 28 per cent, shipment of apparel from the country shot up by 54 per cent in the month under consideration. Being closely linked with the country's economy and employment generation, the increase in exports indicates recovery in the global economy. The export figures have rebounded after a decline in shipment last year. “The positive trend in exports for the entire textiles value chain has been the result of Confederation of Indian Textile Industry’s (CITI’s) continuous persuasion with the government, and the pragmatic approach shown by the ministries concerned. Timely policy intervention supported growth in such exports. The textiles industry was under severe stress especially after the implementation of the goods and services tax (GST),” said Sanjay K Jain, Chairman, CITI. The positive trend implies visible signs of recovery after a difficult period. Industry experts hope that the Centre would continue to take progressive measures to boost exports and limit imports. Continuous growth in exports and index of industrial production index would result in boosting employment, scaling up production and, most importantly, making “Make in India” initiative a reality for the sector. “September 2017 saw an unusual growth in garment exports with Indian exporters booking orders to take advantage of the old method of duty drawback. During the month, exporters booked orders accepting advance payments as well. So, overall export figure showed a sharp increase in September 2017. Comparing that with September 2018, however, there was around 27 per cent de-growth in garments exports. In October, therefore, the export figure for textiles and apparel is not an appropriate indicator of actual growth,” said Rahul Mehta, president, Clothing Manufacturers’ Association of India (CMAI). He said the rupee depreciation really helped India's growth in exports in the segment. "But, it remains to be seen whether the current growth continues. This is possible only when the rupee continues to depreciate against the dollar, but currencies from other competing countries, including China, Bangladesh and Sri Lanka, remain steady, which is highly unlikely," said Mehta. The Center has offered several sops, including Merchandise Exports from India Scheme (MEIS), a package of Rs 60 billion last year, to boost exports. The domestic textile industry is projected to reach $250 billion by 2019 from an estimated $150 billion in November 2017. India's textile and apparel export stood at $39.2 billion in FY18 and is expected to increase to $ 82 billion by 2021.
Source: Business Standard
The textile and apparel sector seems to have seen a revival, going by export performance in October this year. Apparel exports grew 54% in rupee terms in October compared with the same month last year; in dollar terms it was 36% for the same period. Total textile and apparel exports grew 38% in rupee terms and 22% in dollar terms for the same period. An industry source, who did not want to be named, said one big reason for this was that last year exports had dropped due to the impact of GST introduction. Rupee depreciation also seems to have encouraged exports now. According to Sanjay K. Jain, chairman of Confederation of Indian Textile Industry, the IIP data for textiles and clothing saw a year-on-year growth during September this year from a year earlier. Manufacture of textiles grew 5.4% this September year-on-year and manufacturing of wearing apparel saw a 20.9% growth for the same period. “The growing, positive trend shows visible signs of recovery after a difficult period.” he said. Chandrima Chatterjee, adviser to the Apparel Export Promotion Council, said market sentiment was good and that demand had picked up in the U.S. and the European Union.
Source: The Hindu
India leapfrogged to the 77th rank in the World Bank's latest Ease of Doing Business rankings, jumping 23 notches from last year. Prime Minister Narendra Modi will chair a meeting with policy makers and top industrialists on November 19, to brainstorm on measures required to realise the vision of India breaking into the top 50 in the World Bank's Ease of Doing Business index. The meeting 'Reflections on Ease of Doing Business' is being organised by the Department of Industrial Policy and Promotion (DIPP) as the government gears up for India's ranking to leapfrog on the 'Doing Business' index next year and boost the country's investment attractiveness. Industrialists such as Anand Mahindra and top representatives from industry chambers, among others, will share their inputs. Senior government officials from the team that worked on reforms to improve the ease of doing business parameters taken into account by the World Bank are also expected to participate in the meeting. India leapfrogged to the 77th rank in the World Bank's latest Ease of Doing Business rankings, jumping 23 notches from last year. The report, which came out last month, also recognised India as one of the top 10 improvers in this year’s assessment, for the second successive time. India is the only large country this year to have achieved such a significant shift. Speaking at Moneycontrol's Wealth Creator Awards, Suresh Prabhu, Minister of Commerce & Industry, and Civil Aviation said the overall mission of the government, led by Prime Minister Narendra Modi, is public good. Placing his trust in the central leadership, the Union minister said he is confident that India will come in the first 50 ranks in the next fiscal. Prabhu also announced that the government is creating 'sub-national' Ease of Doing Business parameters which will be measured at the district level because that is where the local industries are flourishing. "It is going to be bottom-up approach," he said.
Source: Money Control
The government will soon unveil a new industrial policy which may include a dedicated chapter on the importance of design, a top official said Friday. Highlighting the significance of design and innovation in India's economic progress, Secretary of the Department of Industrial Policy and Promotion (DIPP) Ramesh Abhishek also extended his "full support" to the setting up of a National Design Centre as early as possible. "We are also bringing out a new industrial policy soon and we are proposing to include a substantial chapter and paragraphs on the importance of design, and how it should be taken forward," he said at a CII event here. DIPP, in August last year, floated a draft industrial policy with the aim to create jobs for the next two decades, promote foreign technology transfer and attract USD 100 billion foreign direct investment (FDI) annually. The proposed policy will completely revamp the Industrial Policy of 1991. Among other things, the policy would endeavour to reduce regulations and bring new industries in focus. The DIPP Secretary also said that enforcement of intellectual property rights was being improved through better training of police officers and judiciary. "In principle the department (DIPP) would like to fully support the setting up of a National Design Centre. We can see how it can be done, it can be done through the mechanism of the India Design Council," Abhishek said
Source: Economic Times
The Comptroller and Auditor General (CAG) of India is conducting performance audit of GST and is likely to finalise its report soon. The performance audit report on implementation of Goods and Services Tax (GST) could be tabled in Parliament as early as in the forthcoming Winter session beginning December 11, according to sources. The CAG is auditing the functioning of the new indirect tax regime since its implementation on July 1, 2017. The audit aspect would include registration, refund, input tax credit, transition credit mechanism, ease of payment of taxes and the impact on the economic activity, the sources told. The CAG team has already visited the GST Commissionerates in major states to get clarity on the functioning of the new indirect tax system and its efficiency and effectiveness, the sources said. As part of the performance audit, the CAG looks at programmes, systems and activities to check if they are in accordance with the principles of economy and whether there is any scope for further improvement. The performance audit will not take into account revenue collections. Its focus would primarily be on the implementation aspect of GST, which has subsumed 17 local taxes. Tagged as the biggest tax reform since Independence, GST has faced some teething problems in the initial months of its implementation with the GST Network unable to take load of last minute monthly return filing rush.Also, there were hiccups with respect to refunds to be claimed by exporters as well as excessive transitional credit claims. The monthly average revenue collection from GST in the previous fiscal (July 2017-March 2018) was Rs 89,885 crore. In current fiscal, the collections stood at Rs 1.03 lakh crore in April, Rs 94,016 crore in May, Rs 95,610 crore in June, Rs 96,483 crore in July, Rs 93,960 crore in August, Rs 94,442 crore in September and Rs 1 lakh crore in October.
Source: Economic Times
As global crude prices soften and the world demand heads southwards, exports growth may soften in the second half of the current fiscal. Experts told DNA Money that even though a depreciated rupee and a strong order book could provide some tailwind to exports, unfolding external factors like oil prices and slowing GDP growth in some economies could pin down its growth. Ajay Sahai, director general and CEO, Federation of Indian Export Organisations (FIEO), said "maintenance" of exports growth will be a challenge from October onwards. "Petroleum is the common factor in both imports and exports. On one hand, it boosts exports and on the other, it bloats the import bill too. Now, with the easing of crude prices, we expect the import bill to come down, but the bigger challenge from October onwards is that the base effect of crude price will kick in along with lower crude prices and so maintenance of export growth will be a challenge," he told DNA Money. Elaborating further he said; "if we look at the 17.86% growth in exports in October, the last figure reported, the net export, or the value of exports, is much less than the value in September, which was negative. In September, we suffered a negative growth. In October, we have a growth of around 17% but still, the value of exports in October is less than September".The October trade numbers, released by the government last week, reveal exports jumping over 17% to $26.98 billion compared to $22.89 billion last year. However, when compared to September this year, the month-on-month dip was 3.47% in October, down from $27.95 billion. September had also seen the first slip in exports in the current fiscal as it fell 2.15% from $28.75 billion in the same month last year. In the current fiscal, exports have consistently registered a robust growth till September. Experts see this trend reversing a bit. Madan Sabnavis, chief economist, Care Ratings Ltd, also sees "moderate" export growth due to lower global crude prices. He expects the current fiscal year to end up with an export growth of 10-12%. Last fiscal, exports grew 9.8% to $303 billion. "Growth in exports will be moderate, probably 10-12%. We should also remember that one of the major components of our exports is petroleum products. When the price of petrol goes up our exports benefit. That's what we have gotten in the month of October also. It (October exports) can also be higher because our exports are going up. That kind of scenario (higher crude prices) will get moderated in the coming months, which will mean that exports are not going to grow at that kind of rate. It could be in the region of 10-12%, assuming crude remains below $70 a barrel and don't start moving up," he said. The Care economist also feels that subdued global demand due to subdued growth in some major economies could also adversely impact India's export growth. "We are not looking at the world economic growth being steady as was expected earlier. Our exports depend on what happens to global economic conditions/ demand. That is why we were looking at 8-10% (exports growth), which we scaled up because of the advantage from higher crude in the last couple of months. I believe, we will not be exceeding 10-12%, which is on the higher side," Sabnavis projected. Recently, International Monetary Fund (IMF) revised world GDP growth downwards by 20 basis points (bps) to 3.7% for 2018 and 2019. It has also cautioned about growth in many major economies slowing down in the coming months due to several economic and geopolitical factors. FIEO's Sahai has a higher growth forecast than Sabnavis at 15%. He sees Indian exports benefiting from the US-China standoff and a weaker rupee. According to him, exporters' order books for the coming period are healthy and this has given the export group, he heads, the confidence to raise a robust growth outlook for the current fiscal. "I must say that it is a problem so far as petroleum exports are concerned, but looking at the order books of exporters we expect 15% growth because in some sectors, particularly in textile and apparel, when I talk to exporters they say that with rupee moving to over 70 a dollar, many buyers have come back to them," said the FIEO chief. According to him, exporters have informed him that when the rupee was at 65 per dollar, they were "outpriced" in the international market. "Earlier, when the rupee was 65 a dollar, they (exporters) were factoring the currency at around 61-62 against the dollar and they were outpriced in the market, but now that rupee is around 72 a dollar and they quote 70, many buyers have come back to them," said Sahai. He believes if the rupee remained soft by 12-13% against the dollar and volume growth is maintained at 5-6%, then India could easily achieve an export growth of 15%.Sahai said Indian exports was also reaping gains from the US-China trade war; "global demand has definitely come down but China has suffered a lot. Some orders, which were earlier going to China from the US, have come to India".However, Sabnavis feels otherwise and does not expect India to profit much from the US-China trade war; "has India actually captured the market on account of the US-China war? In my view, I don't think it has happened that way. If you are looking at China they have got into other markets".Sahai also feels that with India's exports growth rate expected to outstrip global rate, it is likely that India could further increase its share in global exports. "Our share in total global exports is 1.7%. This may go up because if we clock 15% and global trade grows at 3.5% then definitely our share will go up," said Sahai.
MACRO CONCERNS
$303bn India’s total exports in the last fiscal
$26.98bn Exports in October this year
Source: Daily News & Analysis
Outgoing Indian ambassador to Tehran and the head of Tehran Chamber of Commerce, Industries, Mines and Agriculture have discussed ways of continuing Iran-India trade under reimposed US sanctions, Eghtesad Online news website reported on Saturday. During the meeting, the Indian diplomat Saurabh Kumar and the Iranian official Masoud Khansari reviewed the ways to continue trade relations during sanctions. After US President Donald Trump's withdrawal from Iran's nuclear deal in May, the US has reimposed the stringent sanctions on Iran, including embargoes on Iran's banking and oil sectors, reports Xinhua. The US sanctions may present a new window of opportunity for Iran-India ties, Khansari said, adding that the focus of mechanisms to facilitate cooperation between Iran and India should be laid on banking and financial cooperation. He also highlighted the role of Iranian Chabahar Port in developing close cooperation with India, adding "now that the port has been exempted from US sanctions, the two sides must capitalise on this opportunity." "Sanctions create many problems, but they have also created this opportunity for us to tap into neglected capabilities and capacities," he was quoted as saying. Tehran Chamber is conducting studies on regional trade partners, including India, for import and export purposes, Khansari said. For his part, Kumar presented a list of 1,000 goods items that Iran can import from India. "Fortunately, trade based on national currencies of the two countries has become a clear and transparent mechanism, so Iran can provide a portion of its important needs by using India's rupee," Kumar said. The Indian diplomat said that his country can import 300,000 barrels of crude oil per day for the next six months from Iran based on the US exemption, and half of its money will be wired to accounts belonging to the Iranian banks in Indian banks in rupees. Iran can, in turn, purchase essential goods such as food, medicine and humanitarian trade goods that are exempt from sanctions, according to the report. The remaining half of the oil money may be exchanged into euros or other foreign currencies for Iran to receive and transfer, Kumar added, noting that a mechanism should be developed for this money to be transferred out of India.
Source: Times Now News
President Ram Nath Kovind and First Lady Savita Kovind on Sunday departed for a three-day visit to Vietnam, with an aim to strengthen bilateral relations between the two countries. Upon their arrival in Da Nang, they will depart for Hotel Furama Resort. In the evening, the President and First Lady will meet leaders of the Da Nang People's Committee. Da Nang has a rich historical and civilisational connection with India. The place is famous for its world heritage site of My Son, and has remnants of Buddhist connections and the Hindu Cham civilisation in the form of ancient temples. The Archaeological Survey of India is helping Vietnam in the preservation and conservation of some of the temples, the Ministry of External Affairs (MEA) said in a statement. On November 19 (Monday), President Kovind will pay a visit to the Museum of Cham Sculpture. During the visit, he will participate in a group photo session with the museum staff. The President and First Lady will also participate in a photo-op with provincial leaders. After this, President Kovind and First Lady will depart for Hanoi, the capital of Vietnam. The President is expected to address the Vietnam-India Business Forum and the Indian community in the city. He is also slated to meet with an Indian business delegation. On November 20 (Tuesday), President Kovind and First Lady will depart for Monument of National Heroes and Martyrs. After that, they will pay a visit to Ho Chi Minh Mausoleum. After visiting the mausoleum, President Kovind and First Lady will depart for Presidential Palace, where they will be received by their counterparts. President Kovind will be accorded guard of honour here. After this, a restricted meeting and delegation-level talks would be held between the two presidents, which will be followed by signing and exchange of agreements and press statements. President Kovind will then depart for the National Assembly of Vietnam, where he will meet Nguy?n Th? Kim Ngân, chairwoman Assembly. He will also address the National Assembly. The President is also scheduled to meet Nguyen Xuan Phuc, the Prime Minister of Vietnam at the Government House. After this, President Kovind and First Lady will depart for International Convention Centre for a banquet dinner. After wrapping up his bilateral engagements here, the President and First Lady will depart for Sydney, Australia on the evening of November 21. India and Vietnam have robust trade and economic relations with bilateral trade of USD 12.8 billion in 2017-18. Main items of imports from Vietnam are mobile phones and accessories, computers and electronics hardware, machinery and equipment, chemicals, rubber, ordinary metals, wood and wooden products, fibres of all kinds, pepper, means of transport, products of steels, coffee, footwear, products of chemicals and polymers and resins. Major export commodities from India are machinery and equipment, seafood, pharmaceuticals, cotton of all kinds, automobiles, textiles and leather accessories, cattle feed ingredient, chemicals, plastic set, products of chemicals, fibres of all kinds, kinds, fabrics of all kinds and ordinary metals: jewellery and precious stones. Over the years, political contacts have strengthened as reflected in several high-level visits by leaders from both sides. Trade and economic linkages continue to grow. India's thrust under the 'Act East' policy combined with Vietnam's growing engagement within the region and with India has paid rich dividends. Vietnam is an important regional partner in South East Asia. India and Vietnam closely cooperate in various regional forums such as ASEAN, East Asia Summit, Mekong Ganga Cooperation, Asia Europe Meeting (ASEM) besides UN and WTO. In the first bilateral Prime Ministerial visit to Vietnam since 2001, Prime Minister Narendra Modi undertook an official Visit to Vietnam from September 2-3 2016, at the invitation of his Vietnamese counterpart. Prime Minister Modi also called on Nguyen Phu Trong, General Secretary of the Communist Party of Vietnam, President Tran Dai Quang and Nguyen Thi Kim Ngan, Chairperson of the National Assembly. Twelve agreements/MOUs were signed during the visit,that has provided a significant boost to the bilateral relationship. Regular meetings between the leadership of the two sides have taken place on the sidelines of multilateral summit meetings. President Pranab Mukherjee had paid a state visit to Vietnam from September 14-17 2014. Defence Cooperation has emerged as a significant pillar of India's strategic partnership with Vietnam. After the signing of an MoU on Defence Cooperation by the two defence ministers in November 2009, the relations have grown from strength to strength. Indian ships regularly make friendly port calls to Vietnam. For the first time, a Vietnamese ship participated in the International Fleet Review at Vishakhapatnam, India, in February 2016. The estimated population of Indians living in Vietnam is around 2,900, mostly residing in Ho Chi Minh City. The Indian Business Chamber (INCHAM) is an organisation of Indians living in Vietnam, primarily to promote trade and business interactions. The Indian community is vibrant, law-abiding, well-educated and prosperous. A vast majority of them are professionals working in Indian and multinational companies. They retain strong family, cultural and business ties with India. India's first Prime Minister Pandit Jawaharlal Nehru was one of the first visitors to Vietnam after its victory against the French at Dien Bien Phu in 1954. Former Vietnamese President Ho Chi Minh came to India in February 1958. Former President Rajendra Prasad visited Vietnam in 1959. Since 1976, India has offered several Lines of Credit (LoCs) to Vietnam over the years on concessional terms and conditions. An LoC agreement was signed in July 2013 for USD 19.5 million for execution of a Nam Trai-IV hydropower project and Binh Bo Pumping station. In addition, India has also offered to discuss a line of credit of USD 300 million in the textile sector. India has also agreed to consider earmarking an amount of up to USD 100 million under the Buyer's Credit of the National Export Insurance Account(BC-NEIA) for use by Vietnam. Vietnam has been a large recipient of training programmes under Indian Technical and Economic Cooperation (ITEC) programme. Presently, 150 ITEC slots are being offered to Vietnam every year along with 16 scholarships under the General Cultural Scholarship Scheme (GCSS), 14 scholarships under the Educational Exchange Programme (EEP) and 10 scholarships under the Mekong Ganga Cooperation Scholarship Scheme (MGCSS). India has set up the Vietnam-India Center for English Language Training in Danang in July 2007 and the Vietnam-India Entrepreneurship Development Centre in Hanoi in May 2006 as part of its support to the Initiative for ASEAN Integration providing technical assistance to the Government of Vietnam. There is also a proposal to set up a Centre for Excellence in Software Development and Training in Ho Chi Minh City. A proposal to set up a Centre for Satellite Tracking and Data Reception and an Imaging facility in Vietnam under ASEAN-India Cooperation mechanism is under consideration. The Centre will be fully funded by India and ISRO will be the implementing agency. It will utilise data provided by Indian remote sensing satellites and harness it for multiple developmental applications. The Indian Cultural Centre was opened in Hanoi in September 2016, with the objective of strengthening India's cultural presence in Vietnam. Regular yoga, dance and music classes are held at the centre.
Source: Businesss Standard
Knitwear industrialists have urged the central government to enter into a free trade agreement (FTA) with Russia, saying the former Soviet Union had given green signal to enter into such a treaty with Bangladesh that would allow for duty-free import of readymade garments. “Despite having potential, India is lagging behind many under-developed countries like Bangladesh, Cambodia and Vietnam in readymade garment export front. Now that Russia has given green signal to Bangladesh to enter into a FTA with it, the central government should take proper steps to strike a free trade agreement with that country,” said Raja M Shanmugham, president of Tirupur Exporters’ Association. He said Russia had imported knitwear garments worth Rs 241 crore and woven garments worth Rs 295 from India in 2017-18. “One of our previous governments had negogiated Eurasian Economic Union (EAEU), comprising Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia, for FTA. But it did not have the desired progress.” Shanmugham said it was very important to overcome tne trade imbalance in the country, which had been struggling to tally import and export so far. “India is one of the largest importers of oil and gold but its export value doesn’t match with that of import value.” He said they had repeatedly urged the central government to bring an FTA with the European Union (EU), but it hadn’t worked out due to opposition from many European automobile giants who make cars/vehicles in India. Another important opposition came from distilleries and breweries of Indian made foreign liquor, Shanmugham said.
Source: Times of India
A U.S.-China Trade war undoubtedly presents opportunities for India's job-led manufacturing sector, but a conducive policy environment and synchronized U.S.-India agenda will determine the likelihood of these opportunities. The aftermath of the U.S.-China trade war could lead to deeper trade ties between India and the U.S. In his speech on October 4 outlining the Administration's Policy Towards China, Vice President Pence said, "to advance our vision of a free and open Indo-Pacific, we're building new and stronger bonds with nations that share our values across the region, from India to Samoa." A U.S.-China Trade war undoubtedly presents opportunities for India's job-led manufacturing sector, but a conducive policy environment and synchronized U.S.-India agenda will determine the likelihood of these opportunities. Both the U.S. Administration, as expressed by Vice President Pence, and the U.S. giants in China, are turning to competitive markets, with India as an obvious alternative. By now, most U.S. businesses are aware of India's lucrative prospects as the fastest growing economy, expanding consumption patterns, and increasing integration into the global economy. And as India aspires to become Asia's biggest manufacturing hub, additional investments and modern technology from foreign countries will help create jobs for its enormous workforce. The need for investment makes it relevant for India to showcase its competitive advantages and to send positive signals to prospective investors. Foreign investors are well-aware of India's limited bandwidth to undertake major structural reforms in the impending election year; but a few policy quick-fixes can reassure India's commitment to welcoming FDI and boosting the confidence of investors who are eager to shift or expand their manufacturing facilities to India. Businesses elect for markets offering incentives, and Indian states have the ability to proactively offer competitive packages with tax incentives. In addition to domestic selling, China-focused U.S. companies are also engaged in imports and exports, which will now become costlier, due to additional tariffs in the midst of the ongoing trade war. The U.S. business interests in China will be hit heavily with increased costs of their procurement from the U.S. due to hiked tariffs by China. The U.S. suppliers may not find orders matching those from China, but they will diversify their exports to a third country with comparatively lower tariffs. According to the PoliticoPro secondary data based on USTR's USA Trade database and U.S. Census Bureau figures, the U.S. has imposed 10-percent additional duties on about $200 billion worth of Chinese goods effective September 24 , with the majority impacting chemical products, capital goods and aircrafts. According to the Chinese Ministry of Commerce, USA Trade database, and U.S. Census Bureau, USITC, China has retaliated by slapping 5-10 percent additional tariffs on $60 billion worth of U.S. products, most notably mineral and chemical products, plastic and rubber products, and mechanical and electrical machinery. India should be an obvious choice for U.S. suppliers who produce mineral, chemical and allied products; capital goods like machinery, mechanical, and electrical equipment; and vehicles and aircrafts as industrial activity is rising in India. With a huge base of livestock, India could also present opportunities to U.S. soymeal suppliers. India can enhance its exports of agricultural items, leather, rubber goods, base metal and machinery, textiles and chemical products, including pharmaceuticals, to the U.S. Sector-specific analysis must be done to assess where India can be a competitive supplier and purchaser for businesses both in the U.S. and China. This strategy will help address trade deficit concerns between the U.S. and India, as well as between India and China. However, it may require the respective governments to focus heavily on tariff barriers in these sectors through bilateral negotiations. Prime Minister Modi's "Make in India" campaign provides a strong pitch for India's restructuring of its manufacturing economy and its standard of living, while simultaneously creating jobs through increased investment, innovation, enhanced skills, strong intellectual property protection, and world-class infrastructure. According to Deloitte's Global Manufacturing Competitiveness study, the manufacturing sector in India may create 90 million new jobs by 2025 with high growth rates in electronics, industrial manufacturing, transport and logistics, chemicals, and real estate. Large multinational companies have expressed confidence in India's potential in manufacturing, but if India wants to optimize its manufacturing sector through new investments and technologies, it becomes extremely important for the government to provide a conducive soft and hard infrastructure in which international businesses can start their operations without delays. India will need to step up its pace of regulatory and administrative reforms to boost investors' confidence. Some of the issues raised by foreign investors include protectionist tariffs, retroactive tax regime, non-tariff barriers such as certification and licensing procedures, procedural irritants on the Ease of Doing Business index, and difficult labor rules. Resolving these issues will be a win-win for both U.S. investors, as well as India's bourgeoning manufacturing sector, and now is the time to take advantage of these opportunities.
Source: Business Today
Slogans and populism cannot guide economic policymaking, finance minister Arun Jaitley said Friday, underlining the need for policy debates based on hard facts and data crunching. Slogans and populism cannot guide economic policymaking, finance minister Arun Jaitley said Friday, underlining the need for policy debates based on hard facts and data crunching. “Debate and policy in economic areas can’t be guided by just slogans or populism, it has to be based on hard facts (and) analysis which are supported by data analysis itself,” the minister said. Jaitley was addressing a wealth awards conference organised by the news portal Moneycontrol through a vide link. The remarks come two days ahead of the crucial central board meeting of the RBI, amid a public spat between central bank and government on certain policies. While government and its nominees on the board want RBI to pay heed to the troubles of small businesses to create additional financing for them, liberalise the prompt corrective action (PCA) framework for public sector lenders and give a breather to the troubled non-bank lenders, the conservative central bank seems to be opposed to the proposals. Admitting that the country has suffered due to poor quality of debates, Jaitley said “it has to be a national endeavour to improve the quality of debates, particularly in economic areas.” He also said wealth creation is a “challenge” in these times as also in the future. He regretted that there was a time when we were focused only on slogans and pitched for the alternative of increasing productivity instead. The focus on increasing productivity can lead to “equity and a more prosperous environment”. “The future is not going to be redistribution of poverty, but distribution of wealth, which, of course, is determined by who is able to generate wealth itself,” he said.
Source: Financial Express
India and Kyrgyzstan have identified potential sectors where both sides may engage in areas like healthcare and pharmaceutical, environmental and technical safety, agriculture, information, tourism and culture, textiles and clothing. The 9th Session of the India-Kyrgyz Inter-Governmental Commission on Trade, Economic, Scientific and Technological Cooperation (IK-IGC) was held on 15-16 November 2018 in New Delhi and concluded today with the signing of Protocol. The IK-IGC was co-chaired by The Union Minister for Commerce & Industry and Civil Aviation, Suresh Prabhu, and Mr Kosmosbek Cholponbaev, Minister of Health, Government of the Kyrgyz Republic. India and Kyrgyzstan have identified potential sectors where both sides may engage in areas like healthcare and pharmaceutical, environmental and technical safety, agriculture, information, tourism and culture, textiles and clothing, banking, labour and social development, mines and standards, metrology and certification sector. Both sides agreed to hold business to business forums between Kyrgyz and Indian companies as well as the exchange of business and commercial information and search for partners. Kyrgyz side proposed to consider the creation of joint food and food processing ventures for agriculture and meat production for export to the Eurasian Economic Union (EAEU) markets. It requested India to assist in incubation methods and breeding of freshwater fish, fish disease prophylactic treatment, primary processing and storage of fish and fish products, the creation of an electronic database for the pastures, monitoring, assessment and conducting of remote sensing of mountainous pastures including geo-information system. The parties agreed to hold the tenth meeting of the Kyrgyz-Indian inter-governmental Commission on Trade-Economic and Scientific-Technical Cooperation in Bishkek, Kyrgyz Republic.
Source: PIB
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1294.20 |
USD/Ton |
-0.28% |
11/18/2018 |
|
VSF |
1988.86 |
USD/Ton |
-0.72% |
11/18/2018 |
|
ASF |
3019.31 |
USD/Ton |
0% |
11/18/2018 |
|
Polyester POY |
1283.39 |
USD/Ton |
0.34% |
11/18/2018 |
|
Nylon FDY |
3228.29 |
USD/Ton |
-0.44% |
11/18/2018 |
|
40D Spandex |
4813.61 |
USD/Ton |
0% |
11/18/2018 |
|
Nylon POY |
5433.32 |
USD/Ton |
-0.26% |
11/18/2018 |
|
Acrylic Top 3D |
1542.08 |
USD/Ton |
0% |
11/18/2018 |
|
Polyester FDY |
3026.52 |
USD/Ton |
-0.47% |
11/18/2018 |
|
Nylon DTY |
3170.64 |
USD/Ton |
0% |
11/18/2018 |
|
Viscose Long Filament |
1441.20 |
USD/Ton |
0% |
11/18/2018 |
|
Polyester DTY |
3430.06 |
USD/Ton |
0% |
11/18/2018 |
|
30S Spun Rayon Yarn |
2767.10 |
USD/Ton |
-0.52% |
11/18/2018 |
|
32S Polyester Yarn |
1938.41 |
USD/Ton |
0% |
11/18/2018 |
|
45S T/C Yarn |
2940.05 |
USD/Ton |
0% |
11/18/2018 |
|
40S Rayon Yarn |
2089.74 |
USD/Ton |
-0.68% |
11/18/2018 |
|
T/R Yarn 65/35 32S |
2507.69 |
USD/Ton |
0% |
11/18/2018 |
|
45S Polyester Yarn |
3069.76 |
USD/Ton |
-0.47% |
11/18/2018 |
|
T/C Yarn 65/35 32S |
2622.98 |
USD/Ton |
-1.09% |
11/18/2018 |
|
10S Denim Fabric |
1.34 |
USD/Meter |
0.11% |
11/18/2018 |
|
32S Twill Fabric |
0.82 |
USD/Meter |
0% |
11/18/2018 |
|
40S Combed Poplin |
1.15 |
USD/Meter |
0% |
11/18/2018 |
|
30S Rayon Fabric |
0.65 |
USD/Meter |
-0.44% |
11/18/2018 |
|
45S T/C Fabric |
0.68 |
USD/Meter |
0% |
11/18/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14412 USD dtd. 18/11/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Top officials from China and the US will hold talks in Buenos Aires over the trade deadlock between the two giant economies, ahead of the meeting between President Donald Trump and his Chinese counterpart Xi Jinping. Top officials from China and the US will hold talks in Buenos Aires over the trade deadlock between the two giant economies, ahead of the meeting between President Donald Trump and his Chinese counterpart Xi Jinping. China and the US are currently locked in an ongoing trade war as each country has introduced tariffs on goods traded between each other. Trump has promised to fix China’s “longtime abuse of the broken international system and unfair practices”. Trump, who is demanding China to cut down USD 375 billion trade deficit, has imposed tariffs on USD 250 billion Chinese exports and threatened to impose tariffs on the remaining USD 265 billion. Trump and Xi plan to meet in Buenos Aires on the side-lines of G20 meeting on December 1. Previously, the Chinese vice premier and Xi’s confidant Liu He was planning to fly to Washington for talks with the US delegation led by US Treasury Secretary Steven Mnuchin. The plan had been adjusted after “work-level discussions” between Beijing and Washington, Hong Kong based South China Morning Post quoted a Chinese official sources as saying. “The latest plan is that the trade negotiation teams of the two countries will meet in Buenos Aires,” the report quoted him as saying. The change in the plan was partly intended to ensure the talks would have a more direct effect on the meeting between Xi and Donald Trump during the G20 summit, the report said. The change, if confirmed, suggests that stakes will be raised for the leaders’ meeting with more weighty matters likely to be on the agenda. It will also mark for the first time that bilateral trade negotiations between the world’s two biggest economies have taken place in a third-party country, the report said. The progress of the scheduled trade talks will have a direct effect on the meeting between Xi and Trump. The Post had previously reported that the two state leaders will meet for a dinner on December 1 immediately after the end of the G20 meeting at Trump’s invitation.
Source: Financial Express
Indonesia announced on Friday (Nov 16) a new economic stimulus package to support the rupiah and spur growth, in the lead-up to the presidential election in April 2019. The country's ailing economy has emerged as a critical issue for President Joko Widodo's administration two months into campaigning. On Thursday, challenger Prabowo Subianto announced he will slash corporate and personal income taxes if he comes to power, part of a plan to lure more investment to South-east Asia's biggest economy. The stimulus package announced by the government include, among other things, tax cuts from next year for exporters of commodities in the mining, plantation, forestry and fishery sectors who keep their export revenues in the domestic banking system. Finance Minister Sri Mulyani Indrawati, one of several ministers fronting a press conference at the presidential palace on Friday, said that a reduction of income tax will apply to the interest of time-deposits both in local and foreign currencies deriving from export revenues. However, exporters who do not keep their export earnings domestically may be barred from moving their goods overseas. "Regarding the export revenues, we will impose an administrative sanction by way of banning exports," she added. Experts say it is a move to stem capital outflows which has seen the embattled rupiah plunge to its lowest levels since the 1998 Asian Financial Crisis. Mr Joko had in July met executives from about 40 exporters in Indonesia to also make the case for earnings currently kept offshore to be brought home to help the rupiah. Mr Satria Sambijantoro, an economist at Bahana Securities, said by keeping export revenues in the country, the foreign exchange reserves can grow, which will help mitigate capital outflows from Indonesia in the future. "In the end, foreign exchange liquidity in domestic banks will remain ample at times of external shocks," he told The Straits Times. To attract foreign investments, the stimulus package will provide for a tax holiday for two industrial sectors - agriculture-based manufacturing and digital industry - as well as allow for a relaxation of the country's Negative Investment List for some priority sectors, such as textile printing and weaving, said Industry Minister Airlangga Hartarto at the same press conference. The list specifies sectors which are either entirely closed or conditionally open to foreign investment, including oil and gas, trading, pharmaceuticals and transportation. With the change, foreign ownership in 54 business sectors, including the steel, chemical and petrochemical industries can now be 100 per cent, up from the present 30 per cent to 67 per cent. Coordinating Economic Minister Darmin Nasution said: "We cannot address current account (deficit) issue only. That's important, but not enough. We must formulate policies to give investors confidence and allow capital inflows." The economic stimulus package follows similar moves made since 2015 to make it easier for investors to do business in the country and spur growth. It also complements the last stimulus package introduced in August last year with a goal to encourage more foreign investment. Among other things, the measures introduced in 2017 provided for an integrated business permit system that enables investors to submit online all necessary documents for an investment licence, instead of having to do it through multiple government departments. All this against the backdrop of a worsening external economic situation that has seen Indonesia struggle to meet Mr Joko's 7 per cent growth target. The central bank anticipates the economy will expand by 5.1 per cent this year, compared to last year's 5.07 per cent. The government said in August economic growth will be 5.18 per cent this year. Indonesia has been struggling to manage its fluctuating currency as investors lose confidence in the emerging economy amid developments in the global economy. Centre of Reform on Economics Indonesia executive director Mohammad Faisal said that with United States intensifying efforts to boost its economy, including adopting a hawkish monetary stance, capital has been sucked out of emerging economies like Indonesia. "All emerging markets are affected by shocks from the US, but our currency depreciation is among the deepest," he said, pointing out that the country's current account deficit has been a major trigger. The rupiah has been on an upward trend since early November on the back of faster-than-expected growth in the third quarter and better external outlook. It traded at 14,611 rupiah per US dollar at the foreign exchange spot market on Friday's closing session versus 14,665 a day earlier, according to data compiled by Bloomberg. However, analysts warn that risks remain on the horizon, particularly with imports traditionally spiking during the year-end holidays, which might contribute to a higher current account deficit. Indonesia posted a much-higher-than expected trade deficit of US$1.82 billion (S$2.5 billion) in October, as imports picked up much faster than exports, Statistics Indonesia announced on Thursday. The figure is the second-highest deficit this year after the US$2.03 billion deficit recorded in July. The trade deficit has also contributed to a weakening of the rupiah. Bank of Indonesia (BI) on Thursday raised its benchmark rate by 25 basis points for the sixth time this year, to 6 per cent, in a further move to support the rupiah in anticipation of a potential fourth hike this year in US rate, likely in December. BI Governor Perry Warjiyo argued that the interest rate increases, along with instruments to control imports, will help narrow the current account deficit to 2.5 per cent of GDP next year. This year, the central bank estimates the gap will stay below 3 per cent.
Source: The Strait Times
GLOBAL trade tensions continue to dominate this year’s headlines and the shift of production to efficient Asean countries is accelerating. Asean businesses are clearly paying attention and are making incremental changes to their supply chains, but is the pace of change fast enough? HSBC’s global Navigator survey – which was launched this week and included the views of more than 8,500 corporates (1,000 in Asean) – finds Southeast Asia as the most trade-positive region in the world. Moreover, Navigator reveals that business decision-makers in Asean view the global shift towards protectionism as increasing the value of their business. Being positive towards both trade and protectionism seems a little counter-intuitive at first glance. But dig a little deeper and it is clear that businesses are shrewdly seeing and capitalising on the opportunity amid the emerging trade disruption.
Shifts in production to Asean can – and are – happening quickly.
Thailand and Malaysia already have existing production networks in electronics, especially in hard disk drive (HDD) assembly. Thailand exports about the same amount of finished storage units to the US as does China. Given Asean’s existing capacity, it makes increasing sense to shift assembly to Southeast Asia, especially now that Chinese shipment of HDDs from the US are subject to at least a 10 per cent tariff, making the move to Asean markets all the more compelling. Singapore, the Philippines and Vietnam also produce a variety of electronic components, while Vietnam and Indonesia have become increasingly competitive in light manufacturing and textile exports. Investment data already show an increased shift to Asean. Vietnam’s inbound manufacturing investment has grown by 18 per cent this year, while Thailand and the Philippines have both experienced a significant increase in net FDI. Meanwhile Harley Davidson, Panasonic and Steve Madden said they will relocate production to the region. But while there are immediate opportunities, supply chain networks aren’t linear, rather they are an ecosystem. So, it’s not as straightforward as a multinational corporation shifting production to an idle factory. Businesses first need to take a view on the overall impact of tariffs on Chinese goods. Factors including labour costs, shipping costs, and regulations need to be weighed to determine whether additional capacity will be built. This has implications for Asean as a region and for individual suppliers. For Asean, an increase in HDD exports is definitely welcome. But countries like Thailand and Malaysia need to move further up the electronics supply chain into higher value-add semiconductor fabrication, particularly of more advanced memory chips, to stay competitive. This will require nations and businesses to invest in infrastructure, new facilities and the training of skilled workers. Economies that can improve the quality of their exports, and have more room for reallocation and further upgrading, stand a higher chance in capturing supply chain opportunities. At an individual business level, suppliers across Asean need to accelerate the adoption of new technologies such as automation and robotics, perhaps even running smart warehouses. This can help enable an uptick in production capacity to meet global demands, increasing production efficiency and in-time delivery.
Source: Phnom Penh Post
The world's standard definition of the kilogram, the ampere, the kelvin and the mole has been changed, after representatives from 60 countries voted to redefine the International System of Units (SI) for weight, current, temperature and amount of chemical substance, The definition of the kilogram for more than 130 years, the International Prototype of the Kilogram (IPK), a cylinder of a platinum alloy stored at the International Bureau of Weights and Measures (BIPM) in France, will now be retired. It will be replaced by the Planck constant -- the fundamental constant of quantum physics. While the stability of the IPK could only be confirmed by comparisons with identical copies, a difficult and potentially inaccurate process, the Planck constant is ready for use everywhere and always. The decision, made at the General Conference on Weights and Measures in Versailles, France, which is organised by BIPM, means that all SI units will now be defined in terms of constants that describe the natural world. This will assure the future stability of the SI and open the opportunity for the use of new technologies, including quantum technologies, to implement the definitions. The changes, which will come into force on May 20 next year, will bring an end to the use of physical objects to define measurement units. Using the fundamental constants we observe in nature as a foundation for important concepts, such as mass and time, means that we have a stable foundation from which to advance our scientific understanding, develop new technologies and address some of society's greatest challenges," said Milton. "Today marks the culmination of decades of work by measurement scientists around the world, the significance of which is immense," said Barry Inglis, Director of the International Committee for Weights and Measures. "We will now no longer be bound by the limitations of objects in our measurement of the world, but have universality accessible units that can pave the way to even greater accuracy, and even accelerate scientific advancement," said Inglis. The new definitions impact four of the seven base units of the SI: the kilogram, ampere, kelvin and mole; and all units derived from them, such as the volt, ohm and joule. Although the size of these units will not change, the four redefined units will join the second, the metre and the candela to ensure that the set of SI base units will continue to be both stable and useful.
Source: Economic Times
What we wear can say a lot about our character and taste. Can we use clothes and accessories to learn something about your health? The programme “FutuRIS” invites to get acquainted with a clever fashion.
Diet with the shirt and glasses
This prototype smart shirts count how many you ate or drank during the day. Soft textile sensors in the collar to track the movements of the muscles of the neck when swallowing, and this control remains invisible. Oliver Amft, Professor of sensor technology, University Passau: “This technology allows us to monitor a variety of everyday situations to capture the human condition. For example, we can identify dehydration, when a person drinks very little during the day. This technology is a boon for diabetics, as it will help them to control the diet. It can also help overweight people: they will receive recommendations based on the collected sensor data.” And here is another example of the use of textile sensors. The frame of these glasses measures the vibration of the skull bones, when the person chews. The nature of the vibration shows that a person eats. The technology allows to carry out continuous monitoring of food easy and almost imperceptible manner. Oliver Amft, Professor of sensor technology, University Passau: “the Main task is to learn to integrate touch technology into our everyday objects. For example, in the same clothes. Points of discharge daily accessories that people use constantly. With integrated sensors such subjects are able to track our eating habits”. Textile sensors, developed by scientists of the European research project in the framework of the “Simpleskin”: http://www.simpleskin.eu/ , made of synthetic fabric in which the polymer fibers are interwoven with the conductors based on silver or copper. Sinyuan Cheng, German research center for artificial intelligence (DFKI): “the Fabric is very soft, breathable. This means that when you wear it and suddenly sweating, the body will still breathe. It is convenient. In addition, the fabric can be washed.We checked it out, wash it in the machine about 40 times. Now, the sensors still work!”
More meters smart fabric!
But is it possible to establish industrial production of innovative fabrics with smart-filling? This Swiss company, leader in the field, joined the research project. Peter Chabreck, head of the research Department of the company “Sefar”: “We already produce similar fabrics for solar panels and light emitting elements. We easy to adapt existing facilities to the peculiarities of production of smart fabrics. You just need to reconfigure our machines and everything.” The production of smart fabrics in industrial scale will allow expanding area of their application by introducing innovations in services and security. This smart carpet will help to count the people in the room and even find out their gait. And smart seat cover will not only help to correct the posture of the person, but also to ensure that the driver is not distracted from the road. Sinyuan Cheng, German research center for artificial intelligence (DFKI): “a textile with integrated sensors may find application in sports, medicine, security. It can be useful to interact with a computer – and in many industries. I hope in the future its production will become cheaper, and our smart textiles will be released to the mass market”. Where conventional gadgets inconvenient to use, smart fashion as these shoes with sensors – can get at target.
Source: Magictr
The multilateral trade order that APEC was established in 1989 to protect is crumbling as Chinese assertiveness in the Pacific and U.S. tariffs strain relations in the region and divide loyalties. A Leaders' Declaration has been issued after every annual APEC leaders' meeting since the first in 1993, the group's website shows. O'Neill said that as APEC host, he would release a Chairman's Statement, though it was not clear when. U.S. President Donald Trump did not attend the meeting and nor did his Russian counterpart, Vladimir Putin. U.S. Vice President Mike Pence attended instead of Trump. Chinese President Xi Jinping arrived to great fanfare on Thursday and was feted by PNG officials. He stoked Western concern on Friday when he met Pacific island leaders to pitch his Belt and Road initiative. The United States and its allies, Japan, Australia and New Zealand, countered on Sunday with a $1.7 billion plan to deliver reliable electricity and the internet to PNG. Pacific theater Wang Xiaolong, a senior economic official with China's APEC delegation, said of the failure to agree on a joint statement that it was "not exactly a sticking point between any particular two countries". Most members affirmed their commitment to preserving the multilateral trading system and supported a robust and well-functioning WTO, he said. "Frankly speaking, we are in a very early stage of those discussions and different countries have different ideas as to how to take that process forward," Wang said. One diplomat involved in the negotiations said tension between the U.S. and China, bubbling all week, erupted when the Chinese government's top diplomat, Wang Yi, objected during a leaders' retreat to two paragraphs in a draft document seen by Reuters. One mentioned opposing "unfair trade practices" and reforming the WTO, while another concerned sustainable development. "These two countries were pushing each other so much that the chair couldn't see an option to bridge them," said the diplomat, speaking on condition of anonymity. "China was angered that the reference to WTO blamed a country for unfair trade practices." Pence said in a blunt speech on Saturday there would be no end to U.S. tariffs on $250 billion of Chinese goods until China changed its ways. On Sunday, as he left the PNG capital of Port Moresby, he listed U.S. differences with China. "They begin with trade practices, with tariffs and quotas, forced technology transfers, the theft of intellectual property. It goes beyond that to freedom of navigation in the seas, concerns about human rights," Pence told reporters. Pence also took direct aim at Xi's signature Belt and Road initiative, saying in his speech countries should not accept debt that compromised their sovereignty. "We do not offer a constricting belt or a one-way road," he said. Center of attention The Belt and Road plan was first proposed in 2013 to expand land and sea links between Asia, Africa and Europe, with billions of dollars in infrastructure investment from China. APEC host PNG is home to 8 million people, four-fifths of whom live outside urban areas and with poor infrastructure, and found itself feted by superpowers. Xi opened a Beijing-funded boulevard, while Pence talked of a 400-year old King James Bible in the PNG parliament that he had played a role in bringing to the country. Australia, a staunch U.S. ally, has for decades enjoyed largely unrivalled influence among Pacific island nations. China has recently turned its attention to the region with a raft of bilateral financing agreements to often distressed economies. PNG Foreign Minister Rimbink Pato said his country did not need to pick sides. "For us, we welcome Chinese investment, we welcome U.S. investment. Our foreign policy is to be friends of all, enemies of none."
Source: Reuters
