Prime Minister Narendra Modi exuded confidence on Monday that India would continue to be the fastest growing large economy and could be the second-largest economy in the world by 2030. “Leading agencies such as IMF and World Bank project the same trend to continue in the coming years. In an uncertain global economic environment India has shown tremendous resilience as an anchor of the world economy” Modi said addressing inaugural address of Petrotech 2019 here. Modi said currently India is fastest-growing large economy in the world... and it “recently became the sixth-largest economy in the world. According to a recent report by 2030 India could be the second-largest world economy.” As per a Standard Chartered report India is likely to pip the United States to become the world’s second largest economy by 2030. China will on the top spot surpassing US which will be at the third place the report said. On the roller coaster movement of crude oil and pricing of petroleum he said “We need to move to responsible pricing which balances interests of both producers and consumers. We also need to move toward transparent and flexible market for both oil and gas only then we can serve energy needs of humanity in optimal manner.” He also said that India has made rapid strides in achieving COP21 targets and are on way to achieve those. He said “India has the fourth-largest refining capacity in the world. This will further grow up by about 200 million metric tonnes by 2030. Our national bio fuel policy has enacted last year... research on second and third generation bio fuel is being promoted. 12- second generation bio refineries are being set up in 11 states.” Talking about energy policy of India he said “We have adopted an integrated approach in energy planning. During the last Petrotech Conference in 2016 I mentioned four pillars for India’s future - energy access efficiency sustainability and security.” He was of the view that energy justice is also key objective for him and a top priority for India. “Toward this end we have developed and implemented many policies. The results of these efforts are now evident. Electricity has reached all our rural areas. This year we aim to achieve 100 per cent electrification of households in India through a targeted programme called Saubhagya. As we raise production we also aim to reduce losses in transmission and distribution” he added. He also mentioned that under our UDAY scheme the government is working towards this objective. India’s World Bank ease of electricity ranking improved from 111 in 2014 to 29 in 2018. Lauding energy efficiency programmes he said that LED bulbs distributed across the country under UJALA scheme have resulted in an annual savings of Rs 17 000 crore or nearly USD 2.5 billion. He also said “Access to clean cooking fuel provide major benefits especially to women and children from exposure to smoke pollution. LPG connections have been give to over 64 million or 6.4 crore households.” Petrotech 2019 the 13th international oil and gas conference and exhibition being organised under the aegis of the Ministry of Petroleum and Natural Gas. The three-day event from February 10 to 12will showcase the recent market and investor friendly developments in India ‘soil and gas sector. Over 95energy Ministers from partner countries and 7000 delegates from around 70 countries are expected to be part the event.
Source: Tecoya Trend
Washington seems blind to the fact that in the run-up to a tightly contested national elections, New Delhi would find it politically more expedient to exchange blows than come to a settlement that could be criticised by the opposition. India and the United States are squaring up for an exchange of blows on trade issues as space for a negotiated agreement is running out. The United States Trade Representative’s Office (USTR) has run out of patience over a two-year dispute on medical device price controls, not least because New Delhi suddenly walked away from a negotiated settlement. The USTR now wants zero-tariff privileges for Indian textiles and other imports, under the World Trade Organization’s (WTO) generalised system of preferences, be revoked. The most obvious Indian retaliation would be to impose tariffs on US steel and aluminium imports, something it has delayed despite the unilateral imposition of similar tariffs on India. Neither of these actions will have significant economic impact. The real danger would be for this tit-for-tat to trigger an escalatory series of actions. Of concern would be the formal dispute spreading to incorporate a whole set of new sources of trade friction such as data localisation norms or the rules governing e-commerce investment. Neither side is faultless in the present economic fracas. Much of India’s problems arise from arbitrary decisions by domestic regulators who have little understanding of India’s multilateral trade obligations, complicated by a political unwillingness to override these decisions no matter how foolish they may be. Washington seems blind to the fact that in the run-up to a tightly contested national elections, New Delhi would find it politically more expedient to exchange blows than come to a settlement that could be criticised by the opposition. Trade disputes are hardly new in Indo-US relations and are common between any two nations that have a substantial economic relationship. The environment today is different for two reasons. One is that the Trump administration divorces strategic and trade issues. It sees no contradiction in having friendly strategic relations and a confrontational trade policy with the same country. The US is also running two separate trade policies. President Donald Trump’s revolves around trade deficits and temporary obsessions like Harley-Davidson motorcycles. The USTR remains concerned about policy shifts that undermine US corporate interests. Two, India is struggling with a whole set of new norms regarding the digital economy, ranging from data privacy to payments structures, that it has yet to settle at home. The Modi government had mooted the idea of putting all these issues into one basket and working on a US-India trade pact. It is perhaps time to dust off this idea and begin a process designed to prevent potential trade conflicts, most of which are easily predictable.
Source: Hindustan Times
US President Donald Trump's trade policy won't only affect China while leaving India unaffected. After sinking into the trade conflict with China, the US is reportedly considering a possible withdrawal of zero tariffs for India. According to Reuters, the US Trade Representative is completing a review of the country's trade concessions to India, under which the emerging economy now enjoys zero tariffs on $5.6 billion of exports to the US. With the "Make in India" campaign initiated by the Modi administration, India is in a period of rapidly developing industrialization. If all goes smoothly, India's trade surplus with the US will continue to widen. This will be impossible for the US to turn a blind eye to at the same time as Trump complains that the US buys more from China than China buys from the US. If India wants to make itself the next world factory after China, the country will soon or later feel the chill of an economic conflict with the US under Trump's trade policy. The more successful the "Make in India" campaign is, the sooner US protectionist tariffs will come. Compared with the trade conflict between China and the US, bigger trouble lies in store for India. In the initial stage of its industrialization process, India urgently needs the US market. Although made-in-India products have begun to enter Americans' lives, a stable customer base has not yet been established. India's exports to the US may suffer a blow if the US increases its tariffs on those products. Trump's trade policy is having a profound effect on the global value chain and will result in global manufacturing redistribution. India, an emerging but still relatively underdeveloped manufacturing country, has less endurance than China for a trade conflict amid a redistribution of global manufacturing investment and capacity. As India and Southeast Asian countries like Vietnam engage in fierce competition for investment in the manufacturing sector, Trump's trade policy has added further uncertainties to India's manufacturing growth. Ahead of a general election due by May, Indian Prime Minister Narendra Modi is facing growing discontent as people question whether his reforms can create enough jobs for Indian youth. If US tariffs hit India's manufacturing sector and drive up the unemployment rate, the Modi administration will feel more pressure from the Indian public as the vote is coming closer. The author is a reporter with the Global Times.
Source: Global Times
We have made a shipment denominated in Indian rupees to Thailand. We have received the payment through banking channels and our bank has informed us that the payment has been received through Vostro Account. Can we claim MEIS benefits on this shipment against such receipts?
Yes. As per Para 2.52 (b) of FTP, “export proceeds against specific exports may also be realized in rupees, provided it is through a freely convertible Vostro account of a non-resident bank situated in any country other than a member country of Asian Clearing Union (ACU) or Nepal or Bhutan. Additionally, rupee payment through Vostro account must be against payment in free foreign currency by buyer in his non-resident bank account. Free foreign exchange remitted by buyer to his non-resident bank (after deducting bank service charges) on account of this transaction would be taken as export realisation under export promotion schemes of FTP”. Therefore, you are eligible for MEIS against such receipts.
We have imported capital goods under EPCG authorisation, without payment of basic customs duty and IGST. Can we export goods on payment of IGST under refund claim for fulfilling average and specific export obligation against EPCG authorisation?
Yes. As per Rule 96 (10)(b) of CGST Rules, 2017: “The persons claiming refund of integrated tax paid on exports of goods or services should not have availed the benefit under notification No. 78/2017-Customs, dated the 13th October, 2017,…or notification No. 79/2017-Customs, dated the 13th October, 2017…except so far it relates to receipt of capital goods by such person against EPCG Scheme”. So, imports under EPCG scheme with or without IGST payment has no bearing on export of goods on IGST payment under refund claim.
As a tour operator rendering services on principal to principal basis to a foreigner, what are the GST implications for a trip outside India and for a trip in India? Please quote relevant provisions.
Section 13 of IGST Act, 2017 deals with determination of the place of supply of services where the location of the supplier of services or the location of the recipient of services is outside India. As per Section 13(2) of the said Act, the place of supply of services except the services specified in sub-sections (3) to (13) shall be the location of the recipient of services. Your service does not fall in any of those exclusions at sub-sections (3) to (13). So, the place of supply of service is the location of receiver of the service, a non-taxable territory. Accordingly, the service is not taxable.
Do we need to deduct payments for capital goods while computing NFE for the purpose of SEIS claims?
As per Para 3.08 (d) of FTP, "Net Foreign Exchange = Gross Earnings of Foreign Exchange minus Total expenses/payment/remittances of Foreign Exchange by the IEC holder, relating to service sector in the Financial year." This provision does not exclude payments made for import of capital goods relating to the services sector.
Source: Business Standard
Buniyaad Tasar Silk Reeling Machines were distributed to women reelers from tribal areas at Surging Silk Mega Event organized by the Ministry of Textiles and Central Silk Board to enhance their income. Union Minister of Textiles Minister Zubin Irani in her address said that Buniyad reeling machine will not only rid the woman reelers of the painful practice of thigh reeling but also enhance their income and help them live a dignified life. The Textiles Minister said that the silk production has increased by 41% since 2013-14. The distribution of the machine is part of total eradication of the age old practice of thigh reeling and to ensure rightful earning to the poor rural and tribal woman reelers in Tasar silk sector. The machine developed by Central Silk Technological Research Institute in association with an entrepreneur from Champa in Chhattisgarh will improve the quality and productivity of Tasar silk yarn and reduce the drudgery of women. It is planned to eradicate thigh reeling and replace it with Buniyaad reeling machine by end of March 2020. Woman reelers using the traditional method earn approximately Rs.125/- per day while a Tasarreeler using Buniyaad machine can earn Rs.350/- per day. The machine is priced at Rs.8,475/- per unit excluding taxes and transportation charges. Speaking on the occasion, the Union Minister of External Affairs, Sushma Swaraj assured the Textiles ministry to provide all support for promoting global trade of silk. She said that silk is a strong commodity and there is a huge demand for it in the international market. Talking about the popularity of Indian silk saree, Swaraj said her counterparts during the United Nations General Assembly meetings, often ask about the wide variety of color, pattern and different designs of these fabrics. Swaraj said that the efforts of Textiles Minister to eradicate thigh reeling in Tasar sector with Buniyad machines clearly demonstrates her concern for the women folk and will certainly help improve the socio-economic conditions of tribal families engaged in the production of silk. The External Affairs Minister urged theTextiles Ministry to strive for eliminating the practice of thigh reeling this year by distributing this equipment. During the event, best achievers of silk industry across various segments of sericulture were honoured. (KNN Bureau)
Source: KNN India
The large populace of migrant workers from Odisha, working in the textile units of Tirupur, will now have a grievances redressal mechanism. The Odisha government has opened a migration support centre in the city to provide guidance and support to people who have migrated from the coastal state to Tamil Nadu. On Saturday, the centre was inaugurated by post-placement services officer of the Deen Dayal Upadhyaya-Grameen Kaushalya Yojana (DDU-GKY) scheme Dhananjay Dwivedi at Rakkiyapalayam Pirivu on Kangeyam Road in the city. It was attended by human resources managers of 12 knitwear companies. The centre would mainly address the grievances of unskilled labourers trained under the DDU-GKY scheme. It is the third centre set up the Odisha government besides the two in the National Capital Region (NCR), Delhi, and Bengaluru. Odisha was the first to open such centre, mandated under the DDU-GKY scheme, in Tamil Nadu. Knitwear cluster in the city has employed a largest concentration of Odia people, besides people from states like Jharkhand, Bihar, Assam and West Bengal. “Since textile business was one of the major employment generating fields, many people from Odisha, especially from its rural pockets, have been migrating to textile hubs, including Tirupur and Bengaluru. Many people were trained under the DDU-GKY scheme in Bhubaneswar and migrated to these hubs,” Dhananjay said. “More than 5,000 candidates who received training for sewing machine operator job have been placed in knitwear units in Tirupur. More than 80% of them were women. Many of them were working in the industry for more than two years. One of the main objectives of the scheme was to ensure that they sustain in the jobs. For which, we provide incentive of Rs 6,000 if they complete six months in the same job, and additional Rs 2,000 if their stay prolonged a year, besides providing supports,” Dhananjay said. Tirupur centre’s manager N Ramasamy said, “We would address problems faced by the employees in workplace, and the issues may be related to remuneration or other problems including harassment. We would directly talk to the companies and try to solve the problems. Otherwise, we would guide them to get basic amenities.” The migration support centre would seek coordination from the companies to inform about the retention status of those employees, so that the Odisha government could provide the incentives to the right candidates and take steps to solve their problems, socially and professionally. A 24-year-old migrant worker from Khendujar district in Odisha said, “When I was struggling to get job in my native, I got know about DDU-GKY scheme and then I got training for SMO. Now I am working in a knitwear unit in Tirupur. Now, we have moral support with the inauguration of the support centre.”
Source: Times of India
Over 500 exhibitors from India are showcasing their products representing Indian handicrafts at Ambiente 2019, the world's leading trade fair for consumer goods being held here in Germany's commercial hub where India is the partner country. Ambiente, an annual trade fair of home decors, kitchenware and textiles, is organised by Messe Frankfurt, a global trade fair organisation with more than 4000 exhibitors from about 80 countries participating in the event being held here from February 8 to 12. Around 35 special Geographical Indication (GI) tagged products representing the crafts of India are the main highlight of the fair this year, Messe Frankfurt's India head Raj Manak said. Traditional crafts such as Rajasthan's gemstone carvings and metal craft, Kashmir's Kani Shawl, Delhi's Mughal wood carving, West Bengal's Masland Mat weaving are showcased. Additionally, five Indian craftsmen are also giving live demos at the fair, Manek said. Talking about India's presence at the fair, Manek said for the first time at Ambiente, more than 500 Indian exhibitors are participating at this international trade fair compared to 386 in 2018, making India one of the top participants at the global fair. Textiles Ministry along with Messe Frankfurt India has launched a global campaign called Handmake in India at the fair to promote local Indian handicraft products. It is estimated that Rs 1,200 crore on spot business by over 500 Indian participants and another Rs 2,000 crores of business enquiries were generated during Ambiente 2019, according to Rakesh Kumar, Director General, Export Promotion Council for Handicrafts, India. "With more than 4000 exhibitors from about 80 countries, a trade fair cannot get more global than this," Nicolette Nauman, the vice-president of Ambiente said. She further said Ambiente is the preferred ground for dcor trend spotting, colour trends and getting the first look at the some of the most revolutionary products in the living and dining categories.
Source: Business Standard
Hiring and production outlook is expected to be better, while exports will be affected due to global demand factors in manufacturing sector in October-December this fiscal, said a Ficci survey. Ficci's latest Quarterly Survey on Manufacturing presents a better outlook for hiring and production, the industry body said in a statement. The survey portrays a better outlook for the manufacturing sector in Q-3 (OctoberDecember 2018-19) as the percentage respondents reporting higher output growth during the third quarter was 54 per cent as compared to 47 per cent in the same period previous fiscal. The percentage of respondents reporting low production was only 13.5 per cent in Q-3 2018-19 as compared to 15 per cent in Q-3 of 2017-18. Similarly, on hiring front the outlook for the sector seems to have slightly improved for near future. While in Q-3 of 2017-18, 70 per cent respondents mentioned that they were not likely to hire additional workforce, this percentage has come down to 65 per cent for Q-3 of 2018-19. It is expected that hiring scenario will improve further, noted the Survey. The study assessed the sentiments of manufacturers for Q-3 this fiscal, for eleven major sectors namely automotive, capital goods, cement and ceramics, chemicals, fertilizers and pharmaceuticals, electronics & electricals, leather and footwear, metal & metal products, paper products, textiles, textile machinery and tyre. Responses have been drawn from over 300 manufacturing units from both large and SME segments with a combined annual turnover of over 2.2 lakh crore. In terms of order books, 43 per cent of the respondents in October-December 2018 are expecting higher number of orders as against 42 per cent. The outlook for exports is somewhat stable as 36 per cent of the participants are expecting a rise in exports for Q-3 2018-19 and 32 per cent are expecting exports to continue on same path as that of same quarter last year, observed the survey. However, it said the rupee depreciation has not led to any significant increase in exports as 78 per cent of the respondents reported that the exports were not affected much by rupee depreciation. Thereby, emphasizing that there were other global factors that are restricting growth of our exports. The survey also said that the overall capacity utilisation in manufacturing remains low at 75 per cent in Q3. The average capacity utilization for the manufacturing sector in the last few quarters has been around 75 per cent only. High raw material prices, cost of finance, uncertainty of demand, shortage of skilled labour, high imports, requirement of technology upgradation, excess capacities, delay in disbursements of state and central subsidies are some of the major constraints which are affecting expansion plans of the respondents. In sectors like automotive, capital goods, leather and footwear and textiles machinery average capacity utilisation has either increased or remained almost same in Q3 of 2018- 19 as compared to Q2 2018-19. For sectors such as Chemicals, Fertilizers and Pharmaceuticals, Cement and Ceramics, Electronics & Electricals, Metals & Metal Products, Paper Products and Textiles the capacity utilisation has fallen in Q-3 2018-19 vis-a-vis Q-2 2018-19. As much as 86 per cent of the respondents maintained either more or same level of inventory, which is slightly higher as compared to 83 per cent in the previous quarter but less than 90 per cent as was the case in Q-3 of 2017-18. This has been due to low domestic and export demand. The cost of production as a percentage of sales for manufacturers in the survey has risen for 77 per cent respondents. This is significantly higher than 62 per cent for Q-3 of 2017- 18. This is primarily due to increased cost of raw materials, wages, power cost, rising crude oil prices, increase in finance cost and rupee depreciation.
Source: Economic Times
India and Peru will hold the next round of negotiations for a proposed free-trade agreement (FTA) in the South American nation next month, a move aimed at boosting two-way commerce between the countries, an official said. "Officials from the commerce ministry will visit Lima, capital of Peru, in March for the fourth round of negotiations. It is scheduled to begin from March 11," the official said. The third round of talks concluded last month here. The main chapters of the trade agreement include market access for goods, trade in services, movement of professionals, investments, dispute settlement, technical barriers to trade, trade remedies, rules of origin of goods, customs procedures and trade facilitation. In an FTA, two countries significantly reduce or eliminate duties on most of the goods traded between them besides relaxing norms and rules to promote trade in services and increase bilateral investments. With growing uncertainties in its traditional markets, including the US and Europe, India is looking to enhance engagements with other regions such as Africa, South America and Central Asia. The Federation of Indian Export Organisations (FIEO) said Peru holds huge potential for exports and investments for domestic exporters and businesses. "The FTA would help boost our exports. South American markets such as Peru hold huge export potential for India. The only issue is logistics cost, which the FTA should look into to facilitate shipments," FIEO President Ganesh Kumar Gupta said. He said India should also look at increasing investments in these regions. Peru ranked third among export destinations for India in the Latin America and Caribbean (LAC) region. The bilateral trade between the nations increased to USD 3.13 billion in 2017-18 from USD 1.77 billion in the previous fiscal. Among the top-10 commodities that India exports to Peru are motor vehicle, cars, products of iron and steel, cotton yarn and fabrics. While the imports include bulk minerals and ores, gold, fertilisers, crude oil and zinc.
Source: Business Standard
DeMo and GST have wrongly criminalised unaccounted MSME funds, which lie frozen in banks. These funds should be released. The epochal GST was expected to boost manufacturing, capex, employment, tax revenue and formalisation of the informal sector. However, these objectives remain mostly unrealised due to disruptions in circulation of unaccounted/informal business capital/working funds following demonetisation and GST. History shows that major macroeconomic disturbances are associated with disruptions in financial flows. Slowdown caused by such disruptions are painful and long drawn out. Widespread inter-firm payment delays/defaults and low bank credit confidence transmit liquidity shocks across businesses. Firms and farms are experiencing a liquidity gridlock-led recessionary trend despite the volume of currency in circulation, bank credit and deposits being higher than their pre-demonetisation levels.
Narrow liquidity view
The general understanding of liquidity is bank-centric. However, over 94 lakh business units’ income tax return data for FY 2014 show banks’ financing covered about one-third of their total turnover. Taking into account turnover of firms below the taxable slab and unaccounted transactions, more than two-thirds of business financing is through non-bank finance channels (NFCs). Anecdotally, only 5-10 per cent of MSMEs avail themselves of bank credit. NFCs are lenders-of-last-resort for MSMEs/unorganised businesses. Banks’ excess liquidity holding in SLR, large financial investment/liquidity holdback by financially sound firms, and flight to safety and security have created a liquidity mismatch in the financial system. This aggravates the liquidity crisis. As such, bank-centric liquidity-enhancing measures alone will have very limited impact.
GST impact
The common explanation offered by businesses for the widespread slowdown is acute shortage of liquidity in terms of formal business capital to finance GST transactions. Available, unaccounted business capital cannot finance these. This mismatch arising from disruption in circulation of unaccounted business capital/funds is creating unprecedented liquidity crisis across businesses. This capital carries the stigma of black money. Its use in formal transactions carries risk and fear of income tax scrutiny, harassment and retrospective tax. Financing of numerous day-to-day formal business transactions has been hit. This aspect should have been considered while implementing GST. Unrealistic treatment of this capital on par with black money under voluntary income disclosure schemes disincentivised its conversion into formal money. Who will pay high penalty rates for the survival/livelihood capital, so essential to run a business? Many small firms accumulate business capital over the years out of incomes which may fall below the tax-paying slab. Tax-evasion at the individual business level becomes a necessity due to prevailing industry practices and tax evasion by competitors. But rather than earning higher unaccounted income, stiff competition generally forces the entrepreneur to pass on gains from tax evasion into lower prices. In general, MSMEs/small traders don’t earn a fair economic return on the present value of their investment. Further, during demonetisation, a part of unaccounted business capital got deposited in bank accounts with relaxed KYC norms. Now, with withdrawal requiring full KYC compliance and subsequent monitoring, including a trail of its uses, by income tax authorities, there have been other consequences. A part of this business capital remains invested in bank deposits. This adds to reduction in funds’ availability for businesses.
A way out
The Prime Minister’s repeated call for formalisation of MSMEs, his support mission for the unorganised sector and assurance against non-scrutiny of their past business records can work only if the conversion of this unaccounted capital but earned from legitimate business activities is formalised with a low penalty. It is an imperative for policymakers to appreciate that this money cannot be treated at par with black income generated through a dubious manner, or by indulging in anti-social/anti-national activities. Low penalty is thus justified. Most businesses prefer to do clean and hassle-free business under GST. Restoring full circularity of business funds increases velocity of money. This boosts liquidity, businesses’ confidence and activities. Without this, businesses face a recession triggered by a liquidity crunch. However, survival instinct forces businesses to game the GST system. This has already started. It dents GST’s objectives of formalisation of transactions and higher tax revenue.
Draft proposal
* Conversion of business capital in the forms of unaccounted cash/bank deposits into formal funds may be allowed to GST-registered firms only with 10-20 per cent progressive penalty structure.
* Conversion may be restricted to deposits up to ₹2 crore. This may facilitate a business to have an annual turnover of ₹8-10 crore with four to five working capital cycles in a year. It may cover a majority of the firms.
* Nitty-gritties of the scheme, penalty rates and conversion amount can be fine-tuned/changed after discussions with trade and industry. This will enormously help businesses to increase their business under GST.
* Employment will increase. Tax revenue may surpass the estimates. It must be recalled that in the past this money was used in financing economic activities. To bring informal businesses under GST, it would be practical to have such a scheme with the following indicative conditions:
* All the unaccounted funds/cash holdings/bank deposits of a business need to be deposited in a designated current account of a bank linked to business activities under GST;
* The deposit can be used for business transactions only;
* A graded penalty upfront on the total declared deposits/cash may be imposed; example, 10 per cent up to ₹50 lakh and 20 per cent for ₹50 lakh to ₹2 crore.
No doubt, some black money may flow in under the scheme. However, the saving grace is that this money will then be used for productive purposes. It may be considered a small evil to achieve larger national goals in terms of business growth, employment and formalisation of business transactions.
Advantages of the move
* The supply chain financing network can be boosted without loss of time.
* Transmission of liquidity and late payment shocks are controlled.
* Revival of the unorganised sector will be faster, steady and efficient.
* Increased funds flow helps in better farm prices. Earlier use of informal funds in purchasing of farm output by millions of traders/grain merchants during harvest time and selling these during lean season did help in holding the price-line.
* GST revenue will leapfrog with steady growth in turnover.
* Formalisation of business transactions will be easy, faster and widespread.
* Higher growth will mitigate NPA problems and lead to better NPA asset value.
* Drastic reduction in transaction velocity of money leads to widespread depression. This will be reversed.
The writer is a former deputy general manager, SIDBI
Source: The Hindu Business Line
Over 20 top Bangladeshi garment exporters are expected to participate at the Apparel Sourcing Week 2019 scheduled for March 15-16 in Bengaluru. The show will see spread a wide range of apparel from denimwear to kidswear, sweaters, suits, jackets, athleisure, casual fashion and bottoms. The event is being supported by governments of India and Bangladesh. The show which facilitates regional collaboration and business among South Asian players is being organised by Apparel Resources. The exhibition is supplemented by a series of six retail-focused seminars by industry experts, and two-trend forecast workshops by Fashion Snoops. The Bangladeshi garment exporters participating include Standard Group, Pacific Group, Laila Styles, Giant Group, Apex Industries, Armana Group, Sonia Sweaters, Energypac Fashions, NIPA Group, Anowara, Pakiza, and Well Group. There are expected to be about 45 manufacturers of Bangladesh, who besides showcasing their products and manufacturing capabilities to the brands and retailers of India, also attend seminars to get a better understanding of Indian Retail and its workings. Over 450 companies have already registered to participate at the show. Indian minister for commerce and industry Suresh Prabhu is expected to be the chief guest at the event. Newly appointed commerce minister of Bangladesh Tipu Munshi is also expected to be at the show as the guest of honour. India and Bangladesh are working on a Comprehensive Economic Partnership Agreement (CEPA) which would give a boost to regional trade in South Asia.
Source: Fibre2Fashion
All trade unions of the jute sector barring the Indian National Trinamool Trade Union Congress have announced an indefinite strike from March 1 on workers' various unmet demands. Bengal Chatkal Mazdoor Union general secretary Anadi Sahu told reporters that the strike call was the last option for them after the workers' charter of 22 demands were ignored and not been heard since long. "All the 21 trade unions of the industry have agreed to support the indefinite strike of jute mills, except INTTUC," he said. The jute sector employs over 2 lakh workers in 65 mills in the state. Sahu said the recent interim wage hike of Rs 70 with effect from February 1 2019 by West Bengal was a unilateral decision. The state government, in a meeting held on January 17 this year with the jute industry and trade unions, had decided to give an interim relief of Rs 70, raising the wage to Rs 327 per day till the new wage agreement was finalised. However, the relief would be applicable only to those workers who now get less than Rs 327 per day as wages. Sahu said that besides the interim relief, no other demands were considered.
Source: Business Standard
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1328.05 |
USD/Ton |
0% |
2/11/2019 |
VSF |
1969.10 |
USD/Ton |
0% |
2/11/2019 |
ASF |
2387.82 |
USD/Ton |
0% |
2/11/2019 |
Polyester POY |
1265.06 |
USD/Ton |
0% |
2/11/2019 |
Nylon FDY |
2742.07 |
USD/Ton |
0% |
2/11/2019 |
40D Spandex |
4743.04 |
USD/Ton |
0% |
2/11/2019 |
Nylon POY |
2534.56 |
USD/Ton |
0% |
2/11/2019 |
Acrylic Top 3D |
1467.38 |
USD/Ton |
0% |
2/11/2019 |
Polyester FDY |
2994.04 |
USD/Ton |
0% |
2/11/2019 |
Nylon DTY |
5587.89 |
USD/Ton |
0% |
2/11/2019 |
Viscose Long Filament |
1541.49 |
USD/Ton |
0% |
2/11/2019 |
Polyester DTY |
1541.49 |
USD/Ton |
-39.88% |
2/11/2019 |
30S Spun Rayon Yarn |
2727.25 |
USD/Ton |
0% |
2/11/2019 |
32S Polyester Yarn |
1993.56 |
USD/Ton |
0% |
2/11/2019 |
45S T/C Yarn |
2860.65 |
USD/Ton |
0% |
2/11/2019 |
40S Rayon Yarn |
2519.74 |
USD/Ton |
0% |
2/11/2019 |
T/R Yarn 65/35 32S |
2149.19 |
USD/Ton |
0% |
2/11/2019 |
45S Polyester Yarn |
2534.56 |
USD/Ton |
0% |
2/11/2019 |
T/C Yarn 65/35 32S |
3023.69 |
USD/Ton |
0% |
2/11/2019 |
10S Denim Fabric |
1.36 |
USD/Meter |
0% |
2/11/2019 |
32S Twill Fabric |
0.83 |
USD/Meter |
0% |
2/11/2019 |
40S Combed Poplin |
1.11 |
USD/Meter |
0% |
2/11/2019 |
30S Rayon Fabric |
0.65 |
USD/Meter |
0% |
2/11/2019 |
45S T/C Fabric |
0.70 |
USD/Meter |
0% |
2/11/2019 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14822 USD dtd. 11/2/2019). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Cambodia is facing the risk of temporarily losing its non-tariff export privilege to the European market, as the European Union (EU) on Monday started the 18-month process under the Everything But Arms (EBA) trade scheme, according to its statement. The European Commission, which coordinates trade policy for the 28-member EU, said in the statement that the decision will be published in the EU Official Journal on Feb. 12, kicking off a process that would run until August 2020. The EU announced in October last year that Cambodia could lose its special trade access to European markets under the EBA preferences, citing concerns over human rights and labor rights issues in the country. However, EU Commissioner for Trade Cecilia Malmstrom said: "It should be clear that today's move is neither a final decision nor the end of the process. But the clock is now officially ticking and we need to see real action soon." "Our engagement with the situation in Cambodia has led us to conclude that there are severe deficiencies when it comes to human rights and labour rights in Cambodia that the government needs to tackle if it wants to keep its country's privileged access to our market," she said. The process consists of a six-month period of intensive monitoring and engagement with the Cambodian authorities, followed by another three-month period for the EU to produce a report based on the findings, the statement said. After a total of twelve months, the Commission will conclude the procedure with a final decision on whether or not to withdraw tariff preferences, it said, adding that any withdrawal would come into effect after a further six-month period. The EU is a major trading partner of Cambodia, especially for textiles and footwear sector. As a Least Developed Country, Cambodia has enjoyed exports of all products, except arms and ammunition, to European markets with duty-free for decades. According to the EU's data, Cambodia exported products to the bloc worth of 4.9 billion euros in 2018. Ken Loo, secretary general of the Garment Manufacturers Association in Cambodia, said in a statement in October last year that over 46 percent of Cambodia's total exports of apparel and footwear were to the EU. He said the garment and footwear sector employed around 700,000 workers and another two million out of the kingdom's total population of 16 million also economically depended on the sector. "A temporary suspension of the EBA or any short-term unilateral sanctions may have long-term negative impacts on the lives of our workers and their families," he said.
Source: Xinhua
Uzbek President Shavkat Mirziyoyev signed a decree Monday to deepen reforms in the textile industry to fully reprocess raw cotton domestically and increase export potential of the country. The decree, titled "On measures to further deepen reforms and expand the export potential of the textile and garment and knitwear industry," instructs the government, within three months, to develop and approve the Concept of accelerated development of the textile and clothing-knitting industry for the period 2019-2025. Under the concept Uzbekistan should be able to reprocess all the produced cotton domestically and increase the export volumes of textile products to 7 billion U.S. dollars per year by 2025, according to the document. The decree also provides various stimulating measures for enterprises engaged in export of textile products starting from April 1, 2019. Uzbekistan, the world's sixth-largest cotton producer, produced 2.3 million tons of raw cotton in 2018. Traditionally, cotton is Uzbekistan's most important cash crop. But in recent years the country has been taking serious steps to develop its textile industry to produce value-added products rather than exporting raw cotton. According to the statistics of the National Statistical Committee of Uzbekistan, the textile exports of Uzbekistan maintained a rapid growth in 2018. The annual export of textiles reached 1.6 billion U.S. dollars, up by 41.4 percent from the previous year. "My biggest goal is to provide people with work, a source of income. From now on, we will export less cotton, process it in the country and produce value-added products," President Mirziyoyev said during his visit to Jizzakh region in 2018.
Source: Xinhua
The human body absorbs and sheds much of its heat in the form of infrared radiation. Most textiles trap this energy, which keeps us warm in cold weather. However, the development of a material that is able to shed this energy, and thus passively cool the body, has remained a challenge. While other materials have achieved radiative cooling in various forms, through textiles that can reflect sunlight and also allow heat radiating from a person’s body to escape, none are responsive to environmental changes or possess the ability to regulate both heating and cooling. “The human body is a perfect radiator. It gives off heat quickly,” said co-lead author Professor Min Ouyang, a researcher at the University of Maryland. “For all of history, the only way to regulate the radiator has been to take clothes off or put clothes on. But this fabric is a true bidirectional regulator.” The base yarn for the new infrared-adaptive textile is created with fibers made of two different synthetic materials — one absorbs water and the other repels it. The strands are coated with carbon nanotubes, a special class of lightweight, carbon-based, conductive metal. Because materials in the fibers both resist and absorb water, the fibers warp when exposed to humidity such as that surrounding a sweating body. That distortion brings the strands of yarn closer together, which does two things. First, it opens the pores in the textile. This has a small cooling effect because it allows heat to escape. Second, and most importantly, it modifies the electromagnetic coupling between the carbon nanotubes in the coating. “You can think of this coupling effect like the bending of a radio antenna to change the wavelength or frequency it resonates with,” said Professor YuHuang Wang, also from the University of Maryland. “It’s a very simplified way to think of it, but imagine bringing two antennae close together to regulate the kind of electromagnetic wave they pick up. When the fibers are brought closer together, the radiation they interact with changes. In clothing, that means the fabric interacts with the heat radiating from the human body.” Depending on the tuning, the textile either blocks infrared radiation or allows it to pass through. The reaction is almost instant, so before people realize they’re getting hot, the garment could already be cooling them down. On the flip side, as a body cools down, the dynamic gating mechanism works in reverse to trap in heat. “The results of testing the material show that the textile was able to alter heat radiation by over 35% as it adjusted to the surrounding relative humidity,” the scientists said. “The heat-adapting meta-fibers can be knit, dyed and washed similarly to other performance fabrics and are compatible with current commercial processes.”
Source: Sci-news
In the wake of criticism by MPs over the social and environmental impact of “fast fashion”, UK retail brands are searching for solutions to clothing waste. Consumers in the UK are buying twice as many items of clothing as they did in 2009, 60 per cent of which make their way to incinerators or landfill within a year of purchase. 300,000 tonnes of clothes are sent to British landfills per year; and less than one per cent of the material used in clothing production around the world is recycled after use. The UK government’s Environmental Audit Committee is expected to issue its final report into sustainability in the fashion industry by the end of February 2019, after its interim report– published in January 2019 – raised concerns over clothing waste and disengagement on the part of certain retailers. Globechain, a “reuse marketplace”, aims to address the problem of fashion waste sustainably and conveniently, by connecting retail bodies with charities, businesses and individuals to enable them to reuse and recycle used and unwanted clothing and fashion accoutrements. The company, which operates globally from its base in London, has already enabled its users to divert 5.1 million kilogrammes of goods away from landfills. May Al-Karooni, founder and CEO of Globechain, said: “Imagine eBay, but better, as items are given for free. Not only do our members save on disposing of the items, but we also give them powerful social impact data so they know where and how their unwanted items will be reused. Many of our members don’t know what they spend on waste disposal, as they don’t collect the data, but they know it’s costly, so are delighted to see how much we help them save. Once a retail chain signs up to us in the UK, they often ask us to set up systems in other territories where they operate because we provide them with a valuable and practical solution that isn’t available elsewhere. Through the data we provide our retail members in return for their annual membership fee, they can prove they are contributing to the circular economy and creating positive social impact in the process. The circular economy is becoming core to a company’s reputation as well as investor and customer loyalty and future growth prospects.”
Source: Government Europa
FAISALABAD: Pakistan Textile Exporters Association (PTEA) Monday demanded supplementary grant for payment of incentives under textile policies 2009-14 and 2014-19. PTEA Chairman Khurram Mukhtar lauded the government’s move for liquidation of outstanding refunds through promissory notes; but expressed concern over long outstanding liquidity under textile policy incentive schemes, said a statement issued here. He claimed that inadequate liquidation of refunds would result in failure of getting desired results as huge amounts of exporters were still stuck against textile policy incentive scheme. Giving details, he said that exporters’ claims of Rs 10,300 million were outstanding against export finance markup support, Rs 1500 million against Markup Rate Support, Rs 19,405 million against Technology Up-gradation Fund, Rs 434 million against Reimbursement of EOBI & Social Security contribution of women and handicapped employees of textile industry whereas Rs 2500 million were outstanding against Drawback of Taxes & Levies (DLTL) 2009-11. Moreover, Rs 10 billion were outstanding on account of income tax; whereas Rs 10 billion was pending against income tax credit u/s 65B & 65E. With huge shortage of funds, textile industry was unable to tap its potential in accordance with capacity. The government should release supplementary grant for payment of textile policy incentive claims to get maximum industrial growth and significant increase in exports, he said. Appreciating government’s revolutionary initiatives to provide an enabling environment to the textile export industry, he hoped that supply of energy inputs at subsidized rates, liquidation of refunds through promissory notes and withdrawal of sales tax and custom duty on cotton import would act as a driving force towards an economically stable and prosperous Pakistan. This is the right time to strike the textile industry as Pakistan is all set to accelerate its economic growth, he added. He demanded payment of incentives under textile policies 2009-14 and 2014-19 with release of supplementary grant or through promissory notes as a major portion of working capital had been blocked in that respect. Terming the decreasing trade deficit as good sign for economy, he referred the latest export figures revealed by the Pakistan Bureau of statistics that a 5.07% negative growth in trade balance is witnessed in first half of current fiscal against the same period of outgoing fiscal year.
Source: Recorder
The International Monetary Fund on Sunday warned governments to gear up for a possible economic storm as growth undershoots expectations. "The bottom-line -- we see an economy that is growing more slowly than we had anticipated," IMF Managing Director Christine Lagarde told the World Government Summit in Dubai. Last month, the IMF lowered its global economic growth forecast for this year from 3.7 per cent to 3.5 per cent. Lagarde cited what she called "four clouds" as the main factors undermining the global economy and warned that a "storm" might strike. The risks include "trade tensions and tariff escalations, financial tightening, uncertainty related to (the) Brexit outcome and spillover impact and an accelerated slowdown of the Chinese economy", she said. Lagarde said trade tensions -- mainly in the shape of a tariff spat between the United States and China, the world's two biggest economies -- are already having a global impact. "We have no idea how it is going to pan out and what we know is that it is already beginning to have an effect on trade, on confidence and on markets," she said, warning governments to avoid protectionism. Lagarde also pointed to the risks posed by rising borrowing costs within a context of "heavy debt" racked up by governments, firms and households. "When there are too many clouds, it takes one lightning (bolt) to start the storm," she said.
Source: Business Standard
Bangladesh exporters have received spot orders worth $23 million from international buyers at the 24th edition of the country's annual Dhaka International Trade Fair (DITF). It was nearly $4 million higher compared to the previous year, Commerce Minister Tipu Munshi said at the concluding ceremony of the country's largest trade show on Saturday. President Abdul Hamid had inaugurated the month-long fair on January 9, reports Xinhua news agency. Like in the previous years, the fair was held at the Bangabandhu International Conference Centre here. The DITF is aimed at showcasing local products to foreign buyers. A total of 500 stalls, pavilions and mini pavilions were set up this year. Countries like India, China, Pakistan and Malaysia participated in the fair.
Source: Business Standard