Making an indirect reference to the ongoing US-China trade war that poses a "big challenge" to the multilateral trade system, India on Monday reiterated its call to reform the World Trade Organisation (WTO) to ensure its relevance in the changed global scenario. Addressing a conference here organised by industry chamber Ficci, Commerce Minister Suresh Prabhu said that the ongoing discussions to reform the WTO must include both old as well as new issues so as to prepare a "forward-looking agenda" for the multilateral body. "To ensure that there no repeat of the Buenos Aires (WTO ministerial in December 2017) failure it had been decided to draw up a new agenda for the WTO," Prabhu said. "Since then much water has flown under the WTO bridge, so to speak, and the organisation faces unprecedented challenges." Earlier this year, US President Donald Trump launched a trade war against China by imposing tariffs on around half of its imports into America and has threatened to deepen the conflict and target all of its imports. Prabhu said that there were current challenges to global trade, the impact of which would have serious implications for the world economy and individual nations. "Today, we must agree that without WTO, we will have a problem because we need global trade. We must make sure that WTO remains intact... It has to change and change for the better," he said. The Minister said that India was in discussions with other member countries and an agenda was being prepared which would be forward looking, agreeable to all nations and include substantive issues. "We cannot forget the issues that have been put on the table with an agreement of all the countries and those issues also need to be taken into account. So, we cannot forget the so-called old issues. "At the same time, we cannot just forget inclusion of new issues. So, we must find out a proper substantive agenda which will be encompassing all these important elements," he said. At the Buenos Aires ministerial, which failed to reach an agreement due to the US intransigence on food stockholding, India continued to press for the reduction of farm subsidies by developed countries and resisted inclusion of new issues on the negotiating table. "The WTO processes - which include rules and practices - have to improve. In the last few months, I have spoken to ministers from over 100 countries and discussed how to prepare a new agenda for the WTO," Prabhu said. In September, senior officials of the G-20 nations, meeting in Argentina, reached a consensus on an initiative to reform the WTO. China and the European Union, among others, have insisted for several months on the need to start discussions on reforming the WTO, to avoid a chaotic situation in the international political and economic system.
Source: Business Standard
Globalization is the process of growing and evolving the business practices using advanced technologies to decipher the same across the global markets throughout the world. The Government has paved the way for entrepreneurial development of the country in order to elevate India's status on the international scale of trading. Contributions made in the form of incentivizing business policies have facilitated the World Bank's Ease of Doing Business global rankings for the country. Aiming at increasing the domestic production levels benefiting the Indian economy, offering employment opportunities to the working cadre and liberalization of the investment policies, the Government has been devising schemes for benefiting the corporates to house their businesses in the country.
India- the exporter
While the Government has made enormous efforts to promote commercial activities in the nation, focus has been to encourage trade overseas. Being a significant producer of various products, India exports a number of goods such as jute, tea, cotton, spices, engineering goods, refined petroleum, gems, jewellery, chemicals, agricultural products, textiles, etc. With a view to improve and boost the exports performance of India, the Government introduced the Foreign Trade Policy (2015-2020). It also aims to help diversification of India's export by aiding various sectors of the economy to gain global competitiveness with a view to foster exports.
Information Technology of India
The technological advancements touch all the core aspects of the modern life including communication, governance, business management, banking, advertising, entertainment, insurance, and education, medical, engineering, commercial and industrial fields. Keeping pace with the fast-moving world, India has been able to carve out its identity on the global platform in terms on information technology. The Indian information technology sector has earned a repute in the global market favouring it to generate a handsome revenue to this account. Attributable to liberalized policies and reduced procedural hurdles a number of foreign entities are now preferring to establish their base in India.
Further benefits
The Government has extended the duration of exemption of integrated goods and services tax (hereinafter referred to as "IGST") for export-oriented units (hereinafter referred to as "EOUs") and software technology parks on imported goods till March 31, 2019 vide its notification dated September 26, 2018.In its approach to support the information technology sector of the company generating high profits benefiting the country's economy, the Government is working on an e-wallet scheme to issue expeditious refunds to exporters. The approach of the Government to extend the exemption deadline and introduction of e-wallet scheme in respect of EOUs and software technology parks is expected to reduce the burden on the information technology sector providing them a time to acclimatize with the taxation regime which was not present earlier.
Source: S.S. Rana & Co. Advocates
President Ram Nath Kovind on Monday called for more cooperation between India and Vietnam in the areas of agriculture, pharmaceuticals, textiles and IT. "Agriculture has been a key sector of our cooperation involving trade, investment and training," Kovind said while addressing the Vietnam-India Business Forum here. "We feel privileged to have supported the Vietnamese agricultural revolution through the establishment of Cuu Long Rice Research Institute," he said. Stating that Vietnam is a huge agricultural economy with agro-marine-forestry exports surpassing $35 billion last year, Kovind said that agricultural products already occupy over 45 per cent of India-Vietnam bilateral trade. "Agro-processing, agro-chemicals, farm machinery, bio-technology and high-tech farming hold immense potential for bilateral cooperation," he said. "Indian industry can also learn from Vietnam's success in crops such as coffee, pepper, cashew, fruits and vegetables." The President also said that the Indian pharmaceuticals industry, the third largest in terms of volume and the world's largest provider of generic drugs, can partner Vietnam in providing quality health-care, medicines and medical devices for the public health system at an affordable cost. "Indian pharmaceutical companies are also looking at domestic production opportunities in Vietnam," Kovind said. He pointed out that both India and Vietnam are leading players in the textile industry. "We must cooperate further to facilitate integration of value chains," Kovind said. He also highlighted significant opportunities between the two sides in the oil and gas, power, infrastructure and renewable energy sectors. Stating that the Indian IT services, including digital economy and fin-tech sector have much to offer to Vietnamese growth, Kovind said start-up sectors and innovation based industry must be encouraged to leverage each other. "We must also learn from each other on how to improve productivity; how to approach the Fourth Industrial Revolution; how to promote innovation and entrepreneurship; and not the least, how to leverage technology for governance," he stated. Vietnam is a key partner country of India in Southeast Asia and served as New Delhi's coordinator country with the Association of Southeast Asian Nations (Asean) regional bloc till July this year. India and Vietnam have set a bilateral trade target of $15 billion by 2020. Later, Kovind also addressed an Indian community reception during which he invited members of the community to attend next year's Pravasi Bharatiya Divas, the External Affairs Ministry-organised conclave of the Indian diaspora.
Source: Business Standard
There are over 3,000 industrial parks in sectors including engineering, software, food processing and chemicals. Development of industrial park rating system would help increase competitiveness of industries and promotion of the manufacturing sector, Commerce and Industry Minister Suresh Prabhu said on Monday. The system is being developed by the ministry to assess industrial parks in the country based on four pillars -- internal and external infrastructure, connectivity, environment and safety management, and business support services. Prabhu said such systems help in improving infrastructure of industrial parks which are present in almost all the states. There are over 3,000 industrial parks in the country in sectors including engineering, software, food processing and chemicals. Under the system, the ministry would assess 200 such parks on several parameters such as sewage effluent and treatment; and water treatment. Secretary in the Department of industrial Policy and Promotion (DIPP) Ramesh Abhishek said, going forward the system could become a ready-to-refer database for prospective investors in these industrial parks. The need of the system arises to see whether these parks are matching the global standards.
Source: The Hindu Business Line
The government should bring diesel and petrol under Goods and Services Tax (GST) to help transporters plan their operations efficiently. It is becoming extremely difficult for transporters to operate with daily fuel pricing, said Akhilesh Singh Yadav, President, Jamshedpur Transport Welfare Association. About 20 days ago, the Centre and some States announced cut in taxes and the fuel prices declined by nearly ₹5 per litre but within a week it returned to earlier price. Transporters did not get any benefit from the cut, he said.
Price volatility
“A uniform fuel price across the country will be very useful for transporters. We strongly believe that diesel and petrol prices should be brought under the GST,” he said at the panel discussion, which was was part of ‘Lead the Road’, a ‘Transporters Meet’ organized in Jamshedpur on Friday by BusinessLine to highlight various issues related to transporters. The event saw over 160 truck owners in attendance. The seventh edition of the event was presented by Indian Oil Corporation and powered by YES Bank with NewsX as the television partner. It provided a platform for various stakeholders, including truck operators, oil companies, banks, and ÑBFCs, to discuss issues and suggest solutions to the problems faced by the sector. Echoing Yadav’s views, Kulwinder Singh Pannu, President, Jamshedpur Truck & Trailer Owners Welfare Association, too felt that bringing diesel and petrol under GST will help transporters significantly. Each State has different rate structure. It becomes difficult to track fuel payment despite drivers being provided with prepaid fuel cards, he said. Shyamal Debnath, Chief Divisional Retail Sales Manager, Ranchi Divisional Office, Indian Oil Corporation, said uniform taxation across the country will certainly benefit transporters to plan better. Now, each State has different tax structure, and the fuel price is quite dynamic and based on international crude price. “With a uniform fuel rate, definitely transporters can plan better, and improve their operations,” he said. At present, tax on petrol and diesel are about 50 per cent of fuel cost. However, the maximum tax under GST, which has four tax brackets, is only 28 per cent. Thus, by bringing diesel and petrol under GST, the price of fuel will drop significantly, he said.
Shortage of drivers
Yadav also strongly advocated the need for setting up institutes across the country for training drivers in heavy vehicles to tide over the acute shortage of drivers.To a query if YES Bank would be willing to fund the training cost for owners, Bhaskar Bhatnagar, Regional Business Leader - Commercial Vehicle Loans, YES Bank, said the bank is already giving working capital facility by way of refinance. Transporters can use it for educating and enhancing truck drivers’ lifestyle or training needs. On the issue of declining heavy vehicle registration in Jharkhand, Pannu said owners prefer registering their vehicles in other States, especially Nagaland where the tax rate is the lowest in the entire country and registration can be done in just two days as against a month in Jharkhand. “In Jharkhand, 80-90 per cent of heavy vehicles have been registered in Nagaland.. If all the relevant documents are couriered from Jamshedpur, within a week all the documents related to truck and trailers will be received. Whatever facilities other States are providing are not available in Jharkhand. Due to this, the number of Jharkhand registered trucks declined to about 1.5 lakh from 4.5 lakh,” he said. The first in the series of 10 Transporters Meets was held in June at Namakkal, the hub of the trucking industry in Tamil Nadu, followed by the second in the port city of Kochi in July. The third was held in Vijayawada in August. The fourth and fifth editions were held in September in Hyderabad and Pune respectively, and the one at Jaipur was held last month. Over 100 representatives, including truck owners, drivers and industry associations, participated in each event.
Source: The Hindu Business Line
A proposal by India’s Arvind Mills to set up its first plant outside Gujarat in Kuppam in Andhra Pradesh’s Chittoor district was recently cleared by chief minister N Chandrababu Naidu at a state investment promotion board meeting in Amaravati. Likely to start production in early 2020, the mill will offer jobs to 20,000. Some other proposals were also cleared. The plant will have a capacity to manufacture 24 million garments, primarily will produce denim jeans, annually, according to media reports from the state. Naidu is likely to lay the foundation for the mill on December 13. Japanese company THK will set up the plant. (DS)
Source : Fibre2fashion
Given the government’s focus on running businesses easy and simple, India has jumped 65 positions in the World Bank’s ease of doing business rankings. Placed at 77th in the world now, India is within touching distance of being in the top 50. By being among the top 10 gainers for two years in a row, India has shown not just the willingness to reform, but the initiatives over the past four years are ensuring exponential growth, beyond merely the 65-place improvement in rankings since 2014. This is just the beginning. The best is yet to come. The immediate target is to ensure India reaches the top 50 in the Doing Business 2020 report and, for that, many of the aspects are already in place. The 2019 report mentioned India’s improved rank on six out of the 10 parameters pertaining to commencing and doing business within its borders. One of the main catalysts for this improvement was the rollout and streamlining of the goods and services tax (GST). GST has been an unqualified success, with a faster registration process than its predecessor, and making tax payment easier. With GST implementation issues having been addressed, one can expect this unprecedented reform to showcase efficiency across the country. India has also made paying taxes less costly by both reducing corporate income tax rate as well as the employees’ provident fund scheme rate. These reforms will push India’s ranking up in this indicator in time for the next report. Laudable work has been done over the past four years to bring India to its current position. Now, in the remaining indicators, we must improve like we did this past year in “trading across borders”, where we improved from 146 to 80, and “dealing with construction permits”, where we improved from 181 in the 2018 report to 52. The enforcement of contracts and concerns with pendency is one area that continues to be a concern. One aspect that could help alleviate concerns with commercial contracts, as well as help reduce the burden on the courts and consequently pendency, is through the Alternative Dispute Resolution (ADR). Institutional arbitration, for example, could greatly help in loosening the stranglehold that pendency has on enforcement of contracts and other legal delays. The government of India has made major strides in greater efficiency and efficacy in resolving commercial disputes, including major legislative measures on promoting ADR. With top class arbitration as an alternative, many of the concerns regarding enforcement and delays in the courts could dissipate. In addition to this, the broad use and implementation of the Insolvency and Bankruptcy Code (IBC), will help greatly in resolving insolvency. Another concern remains in registering property, an indicator where India’s position needs to improve. Some state governments, such as Maharashtra, have invested heavily in digitizing land records and building online solutions for registration and mutation. But these are just the first steps. It takes several weeks to conduct title search on property and to mutate the property in the name of the new owner. The time taken to complete these formalities must be reduced, and technology can play a critical and significant role in reducing the time requirement—digitizing land records can help improve public access, but they are not effective in isolation. A land buyer must seek information that is held in different agencies, at differing stages of digitizing. This data must instead be integrated into a useable, searchable format that allows users to quickly and effectively identify encumbrances through a single interface. Reducing the search time will require massive digitization at various offices and linking records together using a unique ID. Another focus area where we need to improve is in starting businesses. Despite important reforms in starting a business, India needs to improve its position since other countries appear to have also reformed rapidly. In India, transformative change has been made possible. Not only have we escalated our ranking by 65 positions, but have also fostered a competitive spirit among states by ranking them. The journey to the top 50 has already begun. All systems are firing, and the transformation is there for the world to see. India’s ambition to become the easiest and simplest place for investors to do business in is 65 places closer to where it aims to be. Once we reach the top 50 next year, we can target the ultimate goal for 2022—to focus on reaching the top 25. Given the political commitment and administrative will, this is both doable and feasible.
Source: Live Mint
Mumbai: The rupee on Monday rose by 26 paise to close at a 10-week high of 71.67 against the US currency, extending its winning streak for the fifth straight day, helped by steady forex inflows ahead of a crucial RBI board meeting outcome. The rupee has gained around 1.68 per cent to scale 10-week high levels in the five-day rally since November 13 as foreign funds returned to capital markets and oil prices retreated. Stock markets also rose nearly 1 per cent to scale six-week high levels despite the RBI board meeting, which also supported the rupee sentiment. Key issues under consideration in the RBI board meeting were to ease rules for weaker banks, providing liquidity to non-bank finance companies and framing a new capital framework for the Reserve Bank of India, V K Sharma, Head PCG & Capital Markets Group, HDFC Securities said. Meanwhile, emerging currencies also recovered following signs of easing US-China trade tensions and dovish comments by the US Federal Reserve officials about the world economy. The rupee, however, outperformed other emerging currencies, an expert said. Foreign investors put in Rs 1,100 crore on a net basis in capital markets Monday, provisional exchange data showed. FPIs have pumped in nearly Rs 8,285 crore into the Indian capital markets so far this month. In opening trade, the rupee had depreciated by 9 paise to 72.02 against the US dollar at the interbank foreign exchange ahead of RBI's board meet. However, weakness in the US dollar against some currencies in the global market and a higher opening of the domestic equity markets limited the rupee fall, dealers said. Meanwhile, the international benchmark, Brent crude was trading higher by 0.72 per cent to USD 67.40 per barrel. The dollar index, which measures the US currency's strength against major currencies, came under pressure as the pound rebounded on weakening prospects of a no-confidence vote in the UK.
Source: Economic Times
If you were here in Singapore for the first time on a brief visit last week, you could be excused for wondering if it's normal for thousands of police officers to be patrolling the streets and for scores of Special Operations Command and other police vehicles to be parked all over the city. You may also be wondering if traffic is always really this bad. Actually, no. Singapore is typically very safe and the police is usually not seen much. Neither will you hear sirens piercing the air every few minutes like in some other cities. And it's uncommon for traffic jams to occur. Last week, besides the leaders of the 10 ASEAN countries, some of world's top leaders including Indian Prime Minister Narendra Modi, Russian President Vladimir Putin, Chinese Premier Li Keiqiang, Japanese Prime Minister Shinzo Abe, South Korean President Moon Jae-in, Canadian Prime Minister Justin Trudeau, Australian Prime Minister Scott Morrison and United States Vice President Mike Pence were in Singapore for the ASEAN Summit. Hence, the stepped-up security. The world leaders who came, see this as a fantastic and convenient opportunity to meet at the sidelines of the summit to discuss bilateral issues especially ahead of the APEC. Summit which takes place in Papua New Guinea immediately after the ASEAN conference. For example, President Putin met with Japan PM Abe as well as Vice President Pence. President Putin's attendance also allowed him to project Russia's desire to be a global influencer and show their willingness to engage with the region especially in economic matters. The Association of Southeast Asian Nations or ASEAN is a regional intergovernmental organisation made up of 10 countries to promote and facilitate cooperation mainly in trade but also in security matters, education and culture integration and exchange. Meetings at various levels are held regularly with its secretariat located in Jakarta, Indonesia. Together, ASEAN forms a market of US$2.6 trillion with a population of 622 million people. It is collectively the third largest economy in Asia after China and Japan and seventh largest in the world. At the moment, the over-arching economic objective for the group is to achieve full economic integration by way of a single market fully connected with the global economy by 2025. Called the ASEAN Economic Community (AEC), it is a free trade zone copying the European Union model loosely. In his opening address as Chairman of ASEAN, a title and responsibility which rotates among the countries every year, Singapore's Prime Minister Lee Hsien Loong said: "The international order is at a turning point. The existing free, open and rules-based multilateral system which has underpinned ASEAN's growth and stability, has come under stress. Countries, including major powers, are resorting to unilateral actions and bilateral deals, and even explicitly repudiating multilateral approaches and institutions." Unsurprisingly, global trade uncertainties were one of the key subjects discussed at the summit. However, the main economic topic on the agenda was the Regional Economic Comprehensive Partnership (RCEP). Other than the ASEAN countries, this agreement brings together China, Japan South Korea and, also Australia, New Zealand and India. If completed, the RCEP will be the largest such trade agreement since the General Agreements on Tariffs and Trade (GATT) which was implemented in 1948. It will encompass 25 per cent of global gross domestic product (GDP) of US$25 trillion, 45 per cent of the total population, 30 per cent of global income and 30 per cent of global trade. Many were expecting it to be wrapped up this year but at the summit it was announced that it will be delayed till 2019. Leaders at the summit, however, were quick to emphasise that negotiations are at its final stage. The pact is seen as vital in securing the region's continued prosperity, especially after a trade war broke out between its vital trading partners, US and China. Although Prime Minister Modi urged an early conclusion to RCEP talks, it is not clear at this stage what level of commitment India has in participating. The RCEP is a traditional trade pact which cuts tariffs on tradable goods whereas India's strength is in the services sector. India is believed to be holding up for better market access for its professionals and to the services sector than is currently offered. India also complained that imports to India from ASEAN has grown faster than Indian exports to the bloc. New Delhi is reluctant to cut tariffs and open its markets in the face of strong opposition from its farming as well as steel and textiles industries. The dilemma facing India is exacerbated by the fact that strategic rival China is part of the agreement although China is an important trading partner as well. On the other hand, ASEAN nations are increasingly investing in India, including in ports, highways, townships and food processing. It was noted at the summit that with the Modi government improving ease of doing business, investment and trade with ASEAN has grown. Despite good progress being made on the India-Myanmar-Thailand trilateral highway with an extension to Laos, Cambodia and Vietnam, ASEAN has called for better maritime, air, land and digital connectivity between ASEAN and India. With the Indian general elections expected next year, the RCEP negotiations come at a sensitive time for PM Modi. India is the sixth largest trading partner of ASEAN having signed the India-ASEAN FTA (free trade agreement) in 2010 and bilateral trade is valued at US$80 billion but this is seen by economists as far short of its true potential. PM Lee of Singapore urged India to be part of RCEP saying: "Together with the ASEAN-India Free Trade Area, we hope that this will help us reach the ASEAN-India trade target of US$200 billion in total trade by 2022." If India can address its national interests through the on-going talks, the RCEP is a promising vehicle that can help a reluctant India which traditionally shies away from trade pacts, expands its markets through incorporation into a truly open trading bloc.
Source: Business Standard
Abdul Kader Khan, president of the Bangladesh Garments Accessories and Packaging Manufacturers' and Exporters' Association (BGAPMEA), told The Independent that around Tk. 1,500 crore has been invested by the manufacturers of garments accessories and packagers this year. Even more projects are in the pipeline, he said. Since the demand for accessory products is growing at a faster rate at both home and abroad, about 100 new factories have started their operations this year. Currently, around 1,700 factories are producing accessory items in the country mostly in compliant factories. When asked, Abdul Kader Khan said: “We have to emphasise more on producing high-quality accessory items to establish this sector as an individual industry ratther than a backward integration of the readymade garments (RMG) industry.” “However, the newly made investment directly focuses on export accessory items because we have the capacity to meet approximately 95 per cent of the local demand,” he added. When asked about the items, Abdur Kader Khan said Bangladesh has produced and exported accessories like woven labels, leather badges, stone and metal motifs, rubber patches, gum tapes, satin and cotton ribbon hangers, price tags, and buttons and zippers. The indirect contribution has always been 15–20 per cent of the net export earning of the RMG sector. Export earnings for RMG in 2017–18 FY totalled USD 30.61 billion, of which approximately USD 7.10 billion came from accessory items used in the RMG, leather, pharmaceutical and other export-oriented sectors. Presently, the export contribution of accessory items stands at USD 7.10 billion. Of this, USD 1.42 billion comes from direct exports to countries like those in the Middle-East, South Africa, Sri Lanka, Malaysia, Europe, Vietnam, Cambodia, and Laos. Citing an example, Abdul Kader Khan said: "Suppose, a T-shirt is sold for USD 20. In that case, the contribution of accessory items is USD 3–4. So, accessory items can be another major export earner for the country. Some factories are exporting accessory items directly to foreign destinations." China is the biggest player in manufacturing garment accessory items in the world. Bangladesh holds the second largest position in this regard. Khan said the sector could grow big with the right kind of policy support. “There is a USD 24-billion market for garment accessories just in Asia. China now accounts for the lion’s share of it. Our products are as good as theirs, and we have the potential to grab that market,” he asserted. “We have demanded cash incentives on exports several times as this has been contributing almost fully to export-oriented sectors,” he said. "Banks are charging double-digit interest rates on loans from businesses. This is eventually increasing the cost of doing business," he added. Talking to The Independent, Dr Khondaker Golam Moazzem, research director of the Centre for Policy Dialogue (CPD), said the garments accessory making and packaging industry should not be treated as a backward linkage industry. "It should be recognised and categorised as an independent entity," he added. “Accessory items are also meeting the demand of the country’s agro-business and plastic sectors,” he said. Bangladeshi accessory items are exported abroad. They support the backward linkages of the country’s other businesses, he observed. Mentioning one of the challenges, Moazzem said small entrepreneurs in this sector should participate more to build up their brand images as buyers always prefer to purchase items that possess quality and display brand loyalty. In the RMG sector, the accessory makers and packagers supply 34 types of products, disclosed industry insiders. They said that with proper policy support and financial incentives, both indirect and direct export earnings in the sector can be increased by up to three times over the next couple of years.
Source: The Independent
The United States is interested to revise the list of Nepali products enjoying duty free access through the Trade Preferences Act (TPA). US officials have assured Nepal that readymade garments (RMG) from the country will be considered for inclusion in that list, according to Chandra K Ghimire, secretary in the ministry of industry, commerce and supplies. Seventy seven products are currently listed under the TPA. Ghimire said this after attending the fourth meeting of the Nepal-US Trade and Investment Framework Agreement (TIFA) Council recently in the United States, according to Nepali media reports. A Ghimire-led delegation held talks with officials from various US departments, including the state department, the department of agriculture, the department of labour, the US Agency for International Development, and the United States Patent and Trademark Office, led by assistant US trade representative Mark Linscott. The TPA, enforced in 2015 and to continue until 2025, offers duty free access to 77 Nepali products, including certain carpets and pashmina, headgear, shawls, scarves and travel goods. Nepal pushed for garments in particular, citing the high comparative advantage, and sought US support regarding exports until the country fully completes its political transition, Ghimire said. The United States had been denying providing duty free benefits to Nepali garments saying that could violate a World Trade Organisation (WTO) clause. The US officials also expressed interest to offer technical support to Nepal to promote production of the goods under TPA lists. The US officials, however, expressed concern over the investment environment in Nepal and policy reforms at a time when Nepal is are heading towards political stability.
Source : Fibre2fashion
The Indian government should begin negotiation and enter into a free trade agreement (FTA) with Russia, so as to reap the benefit of potential market at the earliest, Tiruppur Exporters’ Association (TEA) has said. Since Russia imports more winterwear, Indian manufacturers should also concentrate on producing such synthetic based products. “Russia has already given a green signal to our competing country Bangladesh for import of garments duty free and this would help them to increase their exports,” TEA president Raja M Shanmugham said in a press release. Russia is a huge market and many leading retail stores are setting up shops there, Shangmugham said. He pointed out that the Indian government had initiated negotiations for a trade deal with the Eurasian Economic Union (EAEU) comprising of Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia, but there has been no progress in it. In 2017-18, Russia has imported `241 crore worth of knitwear garments and `295 crore worth of woven garments from India. (RKS)
Source : Fibre2fashion
Pakistan’s Federal Board of Revenue (FBR) recently issued procedure for the textile and leather industries to avail reduced sales tax rate of 6 per cent by integrating their supplies with its online system. The facility would be available subject to certain terms and conditions and in case of failure, the FBR would impose a sales tax rate of 9 per cent. FBR would notify integrated units and their outlets from where the units intended to sell the goods and avail reduced rate of sales tax. This integrated system provides full information on sales from each point of sales (POS) of a unit by generating online sales invoices and buyers details to verify in case of refunds and input or output adjustments, according to Pakistani media reports. To avoid misuse, FBR has incorporated a strong audit mechanism to check sales invoices. An integrated supplier, who is found to have tampered with the system or made sales otherwise than the prescribed devices or who contravenes any of the provisions, will no more be eligible for the reduced rate. (DS)
Source: Fibre2fashion
LAHORE: The prevailing uncertainty owing to the delay in issuance of a notification for a regionally competitive energy price by the government has impacted the growth in exports, production and investment, said All Pakistan Textile Mills Association (Aptma) Punjab Chairman Adil Bashir on Monday. He said the government had announced in a meeting of the Economic Coordination Committee (ECC) on September 27 to provide energy supply to the Punjab-based exporting industry, both for captive and processing use, at regionally competitive price to make it viable and revive the closed capacity. He added that another long-term objective of this initiative was to attract new investment and double the textile and clothing exports. The export data for October 2018 indicates that both the industry and exports have become a victim of the prevailing uncertainty, as the export of cotton yarn and cotton cloth have dropped by over 39% and 24.11%, respectively against the corresponding period. Also, the overall exports of textile and clothing have declined by 0.21% during the same period. Bashir questioned as to why there was a delay in the notification despite a firm assurance for the textile sector from Prime Minister Imran Khan. The gas is being supplied at Rs488 per mmbtu in Sindh and Khyber-Pakhtunkhwa against Rs1,663 per mmbtu for the mills in Punjab, he added. The official was of the opinion that the industry in Punjab cannot survive under the given circumstances, hence how can we talk about its revival. Already, he added, 30% of the production capacity across spinning, weaving and processing sectors with an export potential worth $4 billion has been closed down due to the high cost of business in the province of Punjab.
Source: Tribune
