New Delhi : In a bid to highlight the achievements of the textiles sector, Ministry of Textiles is organizing a two-day event in New Delhi from January 5-6, 2019. The two-day event will be inaugurated with a textiles show “Artisan Speak” at Lal Qila. For the growth of the textiles sector, the two-day event will also chart out a road map for building new capabilities for sustainable and resource efficient growth of the textiles sector. During the program, an outreach event of the “Accomplishments and Way Forward for Textiles Sector” will be inaugurated by Minister of Textiles, Smriti Zubin Irani on January 6, 2019. Minister of State for Textiles, Ajay Tamta, Secretary Textiles, Raghvendra Singh and other senior officers of the Textiles Ministry and other Ministries/ Departments of Government of India will also attend the programme. A short film on the achievements of the ministry will be screened during the inaugural session of the day-long event on 6th January 2019. Participants from the government and industry will address the inaugural session which will be followed by panel discussions on subjects related to the textiles sector like technical textiles, ease of doing textiles business and access to global markets and supply chains. Weavers, artisans, investors and corporates have contributed immensely towards the achievements in the textiles sector and to express gratitude for their contribution the function will conclude with an award ceremony presided over by the Vice President of India, M. Venkaiah Naidu.
Source: KNN
Textile exports have received a major boost as government includes merchant exporters under the interest equalisation scheme for pre and post-shipment rupee export credit. The Cabinet Committee on Economic Affairs recently approved the proposal by Department of Commerce for extending the facility, which was available only to textile manufacturers and exporters. Under the Interest Equalisation Scheme, exporters in the Micro, Small and Medium Enterprise (MSME) category can avail credit at 5 per cent on all pre and post-shipment on export of all products. While non-MSME get credit at 3 per cent on 416 specified tariff lines. However, till recently the scheme was available only to the manufacturer-exporters and not to the merchant exporters. Dr KV Srinivasan, Chairman, Cotton Textiles Export Promotion Council said MSMEs constitutes a significant part of the textiles sector and plays a crucial role in exports. However, they do not have the expertise and resources to advertise their products in the export markets unlike the large manufacturers, he said. They, therefore, depend on the merchant exporters to export their products. The coverage of merchant exporters under the Interest Equalisation scheme will encourage them to export more products from the MSME sector which contributes significantly towards employment generation especially for women, he added. The move will also significantly reduce the cost of finance for the merchant exporters who contribute substantially towards textile exports and make them more competitive. The decision comes as a huge relief as cost is one of the major component besides quality to remain compete in the global market for manufacturers, exporters and merchant exporters, he said. Urging the Government to cover cotton yarn under the export benefit scheme, Srinivasan pointed out that Cotton Yarn is the only textile product that has not been given any benefits under the Foreign Trade Policy though it is a value added product with substantial value addition happening within the country. Inclusion of cotton yarn under the scheme will encourage exports and benefit the cotton farmers, he said.
Source: Business Line
NEW DELHI: To promote Government participation in production and exports of textile and apparel products, Government has announced Special Package for garments and made-ups sectors. The package offers labour law reforms, additional incentives under ATUFS, enhanced duty drawback coverage and relaxation of Section 80JJAA of Income Tax Act, official sources said. Further, the rates under Merchandise Exports from India Scheme (MEIS) have been enhanced from 2 per cent to 4 per cent for apparel, 5 per cent to 7 per cent for made-ups, handloom and handicrafts with effect from November 1, 2017, the sources said. Products such as fibre, yarn and fabric in the textile value chain are being strengthened and made competitive through various schemes, inter alia, Powertex for fabric segment, Amended Technology Upgradation Fund Scheme (ATUFS) for all segments except spinning, Scheme for Integrated Textile Parks (SITP) for all segments. IGST has been exempted on import under Advance Authorisation and Export Promotion Capital Goods (EPCG) Scheme. The government has also enhanced interest equalization rate for pre and post-shipment credit for the textile sector from 3 per cent to 5 per cent with effect from November 2 and provided assistance to exporters under Market Access Initiative (MAI) Scheme. In 2017-18, India's overall merchandise exports stood at USD 303.38 billion and textile and apparel exports including handicrafts valued at USD 39.22 billion comprising 13 per cent of overall exports of India.
Source: New Indian Express
A relatively stable exchange rate greets the New Year erasing memories of wild swings last year. The one-month Bloomberg Implied Volatility Index plunged 125 basis points to 8.28 per cent in the past four weeks to the New Year suggesting the local unit is likely to be stable this year. A basis point is one hundredth of a percentage point. While this will help burnish the allure of domestic securities to overseas investors, companies can breathe also easy on their US exposure. A stable currency is key to woo overseas investors, who choose not to cover exchange rate risk enhancing investment returns. “Oil price fall and lower inflation print have collectively helped the rupee to stabilise,” said Ashutosh Khajuria, ED and CFO, Federal Bank. “The free fall of the rupee has stopped, reversing the broader trend. RBI too has stayed off from sharp interventions as it is not required.” “Price movement per day has reduced by about 20-30 paise on an average vis-a-vis the levels seen more than a month ago,” Khajuria said. The Bloomberg Implied Volatility Index is a gauge of market expectations on future swings in the rupee-dollar exchange rates.
Rupee snip 4
The rupee gained 0.62 per cent or 44 paisa to close at 69.73 a dollar on Friday. The local unit plunged to record low at 74.48 a dollar on October 11 last year. “Major worries like higher oil prices, emerging market weaknesses are now things of the past,” said Anindya Banerjee, currency analyst at Kotak Securities. “In the New Year, overseas investors too would begin with new deployments amid receding signs of fears on emerging markets including India and Indonesia. Indian companies are unlikely to rush for currency covers, saving cost on imports.” “But, domestic elections could well trigger new volatility in coming months but that is going to be short-lived,” Banerjee added. Indian rupee lost 8.3 per cent between April and October against the greenback ranking as Asia's worst performing currency. The local unit later recouped some of its losses ending the year with 2.12 per cent fall. Surging crude prices turned investors sceptical on New Delhi’s ability to keep current account deficit or excess of overseas expenditures over revenues under check. India is a major oil consuming country. Global crude prices peaked at $86 per barrel on October 3, but shrank fast by 34 per cent since. Such sharp dips consequently pulled down consumer prices. Retail inflation plunged to a 17-month low in November to 2.33 per cent, mainly on account of decline in prices. Importers too have started shying away from taking currency covers against their overseas payables, known as hedging in market parlance, dealers said. Hedging has a cost. In absence of it, companies save money on imports.
Source: Economic Times
Mumbai : The Indian rupee Friday rebounded by 48 paise to settle at 69.72 against the US dollar in line with smart gains in domestic equities and uptrend in other emerging market currencies.Also, sustained selling of the American currency by exporters and banks propped up the rupee after two successive sessions of fall, traders said. Higher crude prices and sustained foreign fund outflows, however, capped the rupee gains to some extent, they said. Brent crude, the global benchmark, was trading at USD 57.15 per barrel, higher by 2.14 per cent. Foreign funds pulled out Rs 157.72 crore from the capital markets on a net basis Friday, while domestic institutional investors bought equities to the tune of Rs 240.60 crore, provisional data showed. At the Interbank Foreign Exchange (forex), the rupee opened on a firm note at 69.95. It gained further to hit a high of 69.66 following dollar selling by exporters, before finally closing at 69.72, up 48 paise. On Thursday, the rupee had weakened for the second straight session and slipped by 2 paise to 70.20 against the US dollar. "The Indian rupee appreciated around 0.5 per cent to trade below 70 per US dollar. The appreciation is in line with most of the other emerging market currencies, reflecting opinions that Fed rate hikes may be nearing an end, and also the decelerating growth prospects of the US," said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management. The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 69.8653 and for rupee/euro at 79.5659. The reference rate for rupee/British pound was fixed at 88.2599 and for rupee/100 Japanese yen at 64.60. BSE benchmark Sensex jumped 181 points Friday while the NSE Nifty reclaimed the 10,700-mark, driven by robust buying in banking, metal and pharma stocks amid positive global cues and a strengthening rupee. DRR MKJ
Source: Times of India
China’s promise to check the widening trade imbalance with India by importing more may already be showing some impact. India’s exports to China in the first eight months of FY19 increased by more than a third year-on-year, according to official figures.India, however, is closely monitoring the export figures to see what part is directly attributable to the greater market access promised by Beijing, so that corrective action can be sought, if required, a government official told BusinessLine. “The Commerce Ministry and the Ministry of External Affairs are coordinating their efforts to ensure that China delivers on its market-access promise. India will have to shape its diplomatic strategy accordingly,” the official said. India’s exports to China in the April-November 2018 period increased 36.87 per cent to $11.1 billion while its imports from that country in the same period declined 2.66 per cent to $48.35 billion. In FY18, exports to China had risen 31 per cent to $13.33 billion while imports were up just 24.64 per cent at $76.38 billion, which increased the trade deficit to a whopping $63 billion.
Much more possible
“We understand it would be difficult to make a big dent in the trade deficit numbers. But if China is sincere about removing non-tariff barriers, there is vast scope for increasing imports from India, especially with the ongoing US-China trade war,” the official said. “The retaliatory tariffs placed by the US and China open a window of opportunity to enhance India’s exports to China and the US, particularly in products where India is competitive,” Minister of State for Commerce & Industry CR Chaudhary recently said in a reply to the Rajya Sabha. For a number of items that it has been buying in large quantities from the US, such as soyabean and tobacco, China is taking steps to open imports from India. Items for which it has already removed import restrictions from India include non-basmati rice, sugar and some pharmaceutical products. Many others are in the pipeline, such as rapeseed, bananas, soya, oilmeal, groundnut and buffalo meat. “The problem is that even when China says it will allow imports of particular items, the going is not smooth as they operate on quotas. How well the quota system will work for our exports has to be seen,” the official said.
Source: Business Line
The Resolution Professional (RP) for Dighi Port Ltd has asked Adani Ports and Special Economic Zone Ltd, Jawaharlal Nehru Port Trust (JNPT) and Veritas Group to improve their financial bids for the debt-laden port company, which is facing insolvency proceedings under new bankruptcy law. Port industry sources see this as an indication that the initial financial terms offered by the three bidding groups were below expectations. The entity winning the bid, according to the document inviting resolution plan, will have to deposit more than Rs 2,100 crore, a level considered “steep” given that, Dighi port is only worth around Rs 800 crore, according to industry sources. Dighi owes Rs 2,500.77 crores to a clutch of 16 banks led by Bank of India. “In this case also, there will be a substantial hair-cut. The RP has asked the three bidders to revise their offers to maximise the upfront pay-out to the lenders. While the motive of the request is to improve the financials, nothing prevents the bidders from re-working their resolution plans in totality to turn around the company and run it as a going concern,” a person briefed on the development said. The resolution professional is treading cautiously on the bid because of the political undertones involved in the case, the first time a port company has been hauled to the National Company Law Tribunal (NCLT) under the IBC. Dighi Port Ltd is promoted by Balaji Infra Projects Ltd and IL&FS Ltd. Balaji Infra Projects, promoted by Vijay Kalantri, the former treasurer of the Maharashtra unit of the Congress Party, owns about half of the stake in Dighi Port. “We are looking to buying the port at a fair/reasonable price. We are not going to give a single penny to Kalantri. The entire money goes to the banks,” an executive at one of the bidding groups said. The Resolution Professional has asked the three bidders to submit improved offers ahead of taking the preferred plan to the committee of creditors. Shailen Shah, the resolution professional for Dighi Port, could not be reached for comments. Dighi Port, located 42 nautical miles from Mumbai Port Trust, was awarded a 50-year concession by the Maharashtra government to develop and operate a port on the banks of Rajpuri creek in three phases. The first phase of the port with a capacity to load 30 million tonnes of cargo (mt) has started partial operations from two multi-purpose berths that can load, coal, bauxite, steel coils and containers. The port is strategically located and serves the immediate hinterland of Maharashtra and hinterland of North Western /South Central India.
Source: Business Line
Bursa, Turkey – Turkey is already doing about $300 million in business with the United States related to home textiles, but Pinar Tasdelen Engin, chairperson of the Uludag Textile Exporters’ Association (UTIB), would like to see that figure rise. Engin, who is focused on overseeing the association’s activities, including organizing R&D projects and studies and coordinating trade fair activities worldwide, said the United States is currently the fifth largest export market, trailing Germany, the United Kingdom, Bulgaria and Romania. In 2017, UTIB’s total global exports had reached nearly $1.2 billion and Turkey’s total home textile exports were around $2.7 billion. Pinar Tasdelen Engin Uludag Textile Exporters’ Association"Pinar Tasdelen Engin" “In recent years, we have seen very positive developments in terms of our textile exports to the U.S.,” she said, noting that towels, bed linens and curtain fabrics are the top exports, although bathrobes are also popular. “Turkey’s textiles speak for themselves…and with our ability to deliver quickly and efficiently, we are excited to continue developing opportunities for mutual trade with the U.S. and countries around the world,” said Engin. Turkey’s rich history in textiles allows producers to specialize in all the sub-categories related to the home, she said. “We expect to see continual growth as a result of our high-quality designs, high-tech production and nature-friendly sustainable products.” Sustainability and eco-friendliness are at the heart of Turkey’s textile production, said Engin. “Given that most of our exports go to countries that have very strict demands on sustainability, it is hugely important for us that our products are eco-friendly.” She said UTIB trains its member companies about issues ranging from life cycle assessment to carbon and water footprints to clean production methods to international emission management standards. “We do this via our special research and development coordination center,” she said, adding, “We plan on continuing these R&D activities so that we can ensure that all Turkish products are safe and environmentally friendly.” UTIB, which was founded in 1986 and has 2,200 members, also supports Turkey’s home textile industry by organizing various congresses and workshops, representing the country at international trade fairs and hosting buyers’ delegations, seminars and training sessions.
Source: Home Textiles
Uzbekistan and Turkey will hold the first meeting of the Strategic Cooperation Council, chaired by the presidents of two countries in 2019, Uzbek media reports. This was announced during the meeting of the Minister of Foreign Affairs of Uzbekistan, Abdulaziz Kamilov, and the Ambassador of Turkey, Ahmet Bashar Shen, who is completing a diplomatic mission in Uzbekistan. "During the conversation, topical issues of the Uzbek-Turkish agenda were discussed. It was emphasized that the exchange of visits at the highest level in 2017 and 2018, their results gave a new dynamic to bilateral cooperation across the entire spectrum of relations," the press service of the Foreign Ministry said. The sides also exchanged views on the schedule of upcoming other bilateral meetings at various levels. The agreement on the council creation was concluded during a visit of Recep Tayyip Erdogan to Uzbekistan in May 2018. Turkey today is one of the important trading partners of Uzbekistan. The volume of trade between the two countries increased by 30 percent and amounted to $ 1.5 billion in 2017. The parties during Erdogan’s visit agreed on specific measures aimed at bringing this figure to $ 5 billion in the coming years. Uzbekistan is ready to expand the supply of products of light, chemical, metallurgical, engineering, electrical industry, leather and footwear and agricultural products to the Turkish market. The main export items from Uzbekistan to Turkey are non-ferrous metals and products from them, fruits and vegetables, services, nitrogen fertilizers, and refined products. Uzbekistan, in turn, imports from Turkey cosmetics, various mechanical and electronic equipment, plastics and products from it, textile, chemical, pharmaceutical products, means for tanning and dyeing leather. Over the seven months of 2018, Turkey came out on top in terms of the number of new foreign enterprises in Uzbekistan. Some 147 enterprises were established with the participation of the residents of Turkey. There are currently about 500 companies in Uzbekistan with Turkish capital, 100 of which are representation offices. They carry out activities in the sectors of textile, food, hotel management, building materials, plastic, medication, and services. The investments of the Turkish side in the economy of Uzbekistan are about $ 1 billion. There are 114 companies in Turkey with Uzbek capital. Only last year more than 20 enterprises with the participation of Turkey's investments were organized and 53 companies were accredited in Uzbekistan.
Source: Azer News
ISTANBUL : Exports hit an all-time high with $168.1 billion in 2018, a 7.1 percent increase compared to the previous year. The largest contribution to exports came from the automotive, textile and steel industriesTurkey's exports reached an all-time high of $168.1 billion, a 7.1 percent year-on-year increase in 2018, supporting the decrease in the foreign trade deficit by 28.4 percent to $55 billion, Trade Minister Ruhsar Pekcan announced Friday. Revealing preliminary data at an annual export evaluation attended by Turkish Exporters' Assembly (TİM) Chairman Ismail Gülle and leading exporters in the capital Ankara, Pekcan said that imports also decreased by 4.6 percent to $223.1 billion. The export-import coverage ratio increased by 8.2 percentage points compared to 2017 and rose to 75.3 percent. The overall foreign trade volume slightly rose by 0.1 percent to $391.2 billion. Pekcan said that the share of exports in the GDP is expected to increase in 2019. "We have set special market entry strategies in four countries, namely China, India, Mexico and Russia, which make up 78 percent of our foreign trade deficit," she added. "Last year, Turkish exporters reached 242 markets around the world," the trade minister said and added, "Turkey maintains its strength in export markets, as the whole world struggles with the uncertainties of global trade wars." Turkey’s 2018 exports hit record $168.1B, foreign trade deficit falls 28.4 pct, Minister Pekcan says Pekcan remarked that exports to Africa, which was identified as a target market, surged 24 percent, while exports to Latin America jumped 35.6 percent in 2018. "Our long term goal is to restore a balanced structure in Turkey's foreign trade relations and thus gradually decrease our country's external finance need," she added. In her speech, Pekcan also said that the U.S. Federal Reserve's tight monetary policy, which is expected to continue in 2019, had a slowing effect on growth, especially in developing economies. She noted that the European Central Bank is expected to introduce a tighter monetary policy in 2019 compared to the previous year and cited the U.S.' trade wars with China and the EU, recession in European economies and Brexit among the developments that are negatively affecting risk expectations, manufacturing and trade across the globe. Saying that the World Trade Organization (WTO) expects a modest 3.7 growth on a global scale in 2019, Pekcan added that the contribution of exports in Turkey's growth has become more strategic than ever and the Trade Ministry will continue to take measures to support exporters. Recent foreign trade deficit figures mark a significant improvement compared to the figures for 2017: $76.8 billion. The year-end foreign trade deficit expectation put forward in the New Economic Program (NEP), which was announced by the Treasury and Finance Minister Berat Albayrak on Sept. 20, was $66 billion.
Source: Daily Sabah
A relatively stable exchange rate greets the New Year erasing memories of wild swings last year. The one-month Bloomberg Implied Volatility Index plunged 125 basis points to 8.28 per cent in the past four weeks to the New Year suggesting the local unit is likely to be stable this year. A basis point is one hundredth of a percentage point. While this will help burnish the allure of domestic securities to overseas investors, companies can breathe also easy on their US exposure. A stable currency is key to woo overseas investors, who choose not to cover exchange rate risk enhancing investment returns. “Oil price fall and lower inflation print have collectively helped the rupee to stabilise,” said Ashutosh Khajuria, ED and CFO, Federal Bank. “The free fall of the rupee has stopped, reversing the broader trend. RBI too has stayed off from sharp interventions as it is not required.” “Price movement per day has reduced by about 20-30 paise on an average vis-a-vis the levels seen more than a month ago,” Khajuria said.
Source: Economic Times
