The US President Donald Trump has repeatedly claimed that India is a 'tariff king' and imposes 'tremendously high' import duties on American goods India is not a 'tariff king' and it has all the right to take appropriate measures to protect the interest of specific sectors like agriculture, international trade experts have said. Rejecting the US allegation that India's import duties are one of the highest in the world, experts said that several developed countries and regions including Japan, South Korea, European Union, and America maintain "extremely high" tariffs primarily on agriculture products. The US President Donald Trump has repeatedly claimed that India is a "tariff king" and imposes "tremendously high" import duties on American goods. Biswajit Dhar, a professor of economics at Jawaharlal Nehru University, said that the US allegations are completely unfounded. "In fact, the US import duties on several of their products are quite high such as on tobacco it is about 350 per cent and 164 per cent on peanuts. They too maintain reasonably high duties," Dhar said. Sharing similar views, Professor at Indian Institute of Foreign Trade (IIFT) Rakesh Mohan Joshi said that the US allegations are not correct and in fact, they should rationalise their duty structure being a developed nation. Trade Promotion Council of India Chairman Mohit Singla said that the assertion of the US is not factually correct. He said that the allegation of Trump that India is a tariff king does not hold true and is unjustified. "Like other nations, India has the right to take appropriate measures to protect its domestic interests in specific sectors as and when it is deemed fit. Moreover, there are many countries which have much higher tariff as compared to India. Being a signatory and member of WTO, India remains committed to free, fair, and predictable trade," Singla added. Geneva-based 164-member World Trade Organisation (WTO) is a multilateral body which frames global trade norms. Singla claimed that countries like Japan levy 736 per cent duty on certain products; while Korea imposes 807 per cent on some goods. Federation of Indian Exports Organisation (FIEO) said that product-specific high tariffs, like 150 per cent on alcoholic beverages, 100 per cent on coffee, and 60-75 per cent on automobiles have made India a villain in the eyes of the US President. However, many countries in the world including Japan, South Korea, the EU, the US maintain an extremely high tariff primarily on agriculture products, FIEO Director General Ajay Sahai said. "India's average WTO bound tariff is 48.5 per cent while average applied tariff is 13.4 per cent. The wide gap between the two clearly shows that India is not a tariff king else it would have pushed the applied tariff very close to the bound rates," Sahai said. While bound tariffs or duties refer to the ceiling, the applied tariff is the duty which is currently in place. Another expert, who did not wish to be named, said that the US should not level any allegation of discrimination at tariff front vis-a-vis developing countries like India as America has emerged as one of the richest nations in the world with per capita income of about $60,000 per annum. "Repeated mention of India as a tariff king with cherry-picked examples like motorbikes and whiskey is disingenuous, as it conveniently ignores the overall tariff structure of the country, apart from India's developing status," the expert said. He added that India has complied with all tariff commitments under the WTO and has made sincere efforts to reduce applied duties suo-moto to 13.7 per cent today over a period of time. Recently, the US decided to withdraw incentives being provided to Indian exporters under the Generalized System of Preference (GSP) programme. However, India has stated that it would not impact domestic exporters as the benefits were only about USD 190 million annually. Despite the fact that India and the US were working on a trade package, the US decided to go ahead with its decision. The package was covering all concerns related to bilateral trade with the US on sectors including medical devices, dairy products and agricultural goods. America also wants a cut on duties on certain ICT products. According to sources, India was ready to address the US concerns regarding these sectors. The bilateral trade between India and the US has increased to $74.5 billion in 2017-18 from $64.5 billion in 2016-17. Although India has a trade surplus with the US, India is a thriving market for US defence firms, e-commerce and technology companies.
Source: Business Standard
India must focus on growth of labour-intensive sectors to create decent jobs for the masses as well as give “serious thought” to privatising the public sector banks (PSBs), eminent economist Arvind Panagariya has said, emphasising that the reform process must be completed in the coming five years. Panagariya, who had served as the first Vice Chairman of the NITI Aayog from January 2015 to August 2017, was responding to a question on what the priorities should be of the government that comes into power when India’s mammoth and crucial general elections end next month. “My personal view is that India must complete its reform process in the coming five years,” Panagariya, Director at the Raj Center on Indian Economic Policies at Columbia University, told PTI here. The Deepak and Neera Raj Centre in The School of International and Public Affairs (SIPA) at Columbia University provides research and expertise necessary to inform policy decisions, deliver increased prosperity, and define India’s future role in the global economy. Highlighting the priority areas, Panagariya said that India needs a clear focus on the growth of labour-intensive sectors such as apparel, footwear, furniture, kitchenware and other light manufactures to create decent jobs for the masses. “We need firms in these sectors that are globally competitive and capture the space in export markets that China has been quitting due to its high wages. This requires flexible labour and land laws and an ecosystem that is yet friendlier to large firms,” he said. Panagariya elaborated that one way to achieve this is to create Shenzhen-style Coastal Employment Zones (in China) that create zones of 500 square kilometers or more along the coast that are characterized by highly entrepreneur-friendly regime with respect to land, labour and international trade. “Eventually, we must extend this regime to other parts of the country as well, he said. He stressed that it is also time that “we gave a serious thought to privatising public sector banks (PSBs). “Experience has shown that public sector ownership creates perverse incentives that have repeatedly manifested themselves in episodes of accumulation of non-performing assets (NPAs) in PSBs while the same has not been a problem in private and foreign banks,” he said. Further, public ownership has also resulted in dual regulation of PSBs (by the Reserve Bank of India and the government) and two different RBI regulatory regimes for PSBs and private banks. “The simultaneous role of the government as a provider of banking services through PSBs, policy maker and regulator create obvious conflicts. There needs to a separation of policy making, regulatory and service provision functions,” he said, adding that it is possible to promote social goals without ownership of the banks as the experience with priority sector lending illustrates. “As a last resort, if the government feels that it must have control, keeping the State Bank of India in the public sector (with due governance reforms) may be a reasonable compromise,” Panagariya said. The noted academician also stressed that serious thought must be given to the consolidation of numerous transfers into a single cash transfer. “We must also introduce a sunset clause to all Centrally Sponsored Schemes and Central Sector Schemes. Ministries running these schemes should be subject to the burden of justifying continuation of their schemes beyond a certain date,” he said, underscoring that “indefinite perpetuation” can often mean that the scheme in question is making no progress in achieving its goals. Panagariya also emphasised on the need for major reforms in the area of education, saying the Right to Education Act has wholly “neglected quality.” “This law has to be amended such that it rewards schools and teachers for superior outcomes while also sanctions them for poor delivery. It cannot be that government uses taxpayers’ money to give public school teachers salaries that are four or five times what their counterparts receive in private schools and they still deliver poorer outcomes than the latter,” he said. Opining that higher education requires an overhaul too, he said there is need to “replace” the University Grant Commission Act by a Higher Education Commission Act that “paves the way” for full autonomy for high-quality colleges and universities; provides for such colleges to acquire the right to confer their own degrees and covert into universities; and opens the door to the entry of foreign universities in a transparent manner. “Colleges and universities should come to be governed by their boards with minimum interference by the government. Independent public and private accreditation agencies should be appointed to evaluate colleges and universities in an objective manner,” he said. Panagariya also suggested that a national research foundation along the lines of the United States National Science Foundation should be created to bring research centrally to universities with the current system of research councils gradually phased out. “The government must also pass the pending National Medical Council Bill and bring similar legislation in Homeopathy and Indian systems of medicine. Higher education in law, nursing, pharmacy and other professional fields also requires an overhaul,” he said.
Source: The Hindu Business Line
The sale of fake or counterfeit goods the world over has seldom been as brisk as today, with the proliferation of digital platforms through e-commerce. It has made transactions easier and free from the clutches of customs, crossing borders without any difficulty. It is no surprise that the US President signed a memo earlier this month seeing details on how the country could better track the growth of spurious goods across the world. According to estimates, the value of counterfeit goods may touch the $500-billion-a-year mark with about 20 per cent of this trade violating US intellectual property. lthough no precise figures about the sale of such trade in fake goods exist, Paris-based intergovernmental think tank, the Organisation for Economic Cooperation and Development (OECD), undertakes a periodic study in concert with the European Union Intellectual Property Organisation (EU-IPO) to arrive at credible numbers. Based on 2016 data, an updated report jointly released in the third week of March, estimated that the volume of global trade in counterfeit and pirated products could amount to as much as a whopping $509 billion. Even as this constitutes up to 3.3 per cent of world trade, it excludes domestically produced and consumed counterfeit and pirated products or pirated digital products being distributed via the Internet. The previous OECD/EU-IPO study estimated that in 2013, up to 2.5 per cent of global trade worth $461 billion was in counterfeit and pirated goods. The point to note is that between 2013 and 2016, the share of global trade in counterfeit and pirated goods grew very significantly, even when world trade logged a relative slowdown! The joint study warns about the rise in the intensity of counterfeiting and piracy, “with significant and potential risk for intellectual property (IP) in the knowledge-based open and globalised economy”. Interestingly, the study traces the dramatic sale of counterfeit and pirated goods from virtually all economies in all continents, with China and Hong Kong as the biggest conduits. In addition, several Asian economies, including India are also important suppliers of counterfeit products, despite a role that is significantly lesser than China’s. The key transit points for ten main sectors that are particularly vulnerable to counterfeit, span a wide range of IP-intense, tradable items - from fast-moving consumer goods such as foodstuff or cosmetics to business-to-business products such as spare parts and computer chips. Sadly, fake products such as contact lenses, pharmaceuticals or baby formulas are continuously being fed to markets through multiple channels, including digital platform vendors at a volume unmatched by offline outfits. It is equally sad that the degree of consumer deception is still the highest for these classes of products, posing a peril to the personal health and safety of consumers. Fake goods are dispatched in large quantities in containers and in small parcels by post or courier services. The report listed several West Asian economies - Saudi Arabia, the United Arab Emirates and Yemen -- as important transit points for sending counterfeit goods to Africa. Four other transit points -- Albania, Egypt, Morocco and Ukraine -- are of particular significance for redistributing fake goods in the EU, while Panama is a vital conduit for fakes to the USA. Highlighting the shortcomings, OECD said lamentable gaps in governance, especially high levels of corruption and lacunae in IP rights enforcement, boosts trade in counterfeits. It singles out the existence and proliferation of free trade zones (FTZs) or special economic zones (SEZs), which give a strong impetus to this parallel trade in economies with weak governance, high corruption levels and a lack of intellectual property rights enforcement. China and India have plumped for such exclusive enclaves in recent years! Though these special zones are designed to benefit trade in general, such as good logistics facilities, it is the misuse of these amenities that could result in higher flows of trade in fake goods. Rightly, the study cautioned that as the lightly regulated zones are lucrative for parties in illegal and criminal activities, the continued growth of such zones makes an important context and an alibi for such nefarious activities. As for India, the study mentions it is also emerging along with other Asian neighbours, as an important producer of counterfeit goods. Trouble is such a dubious reputation affects domestic consumers too. A perfunctory click of the mouse shows that metro cities including Delhi, Mumbai, Bengaluru, Kolkata and Chennai throb with spurious goods, where replicas of luxury goods are available at one-fourth of the price! For the hapless consumers, counterfeit is dangerous to health, safety and privacy, besides lowering consumer satisfaction, particularly when low-grade fake goods are purchased unknowingly. For right-holders and their authorised vendors, rising fakes aggravates revenue losses, while trademark infringements continuously erode brand values. For governments, counterfeiting entails a loss of tax revenues, higher unemployment and greater expenditure incurred -- both to ensure compliance with anti-counterfeiting legislation and to react to public safety threats and labour market distortions. The existing legal provisions from the Trademark Act and Copyrights Act in India are not sufficient deterrent to the band of organised counterfeit racketeers. The punishment for contravention of the rules of the game ought to be cognizable and non-bailable, as enshrined in the provisions of the Indian Penal Code.
Source: Wion News
The polyester chain expansions at Reliance Industries Ltd (RIL) are operating at optimal rates. During 2018-19, the production of polyester chain increased 10 per cent year-on-year. Fibre intermediates production during the reported period increased to 11 MMT, a growth of 13 per cent, while polyester production remained stable at 2.9 MMT. Intermediates tracked the volatility in the energy markets during 2018-19. PX price was higher by 25 per cent; pushing margins up by 38 per cent to $479/MT. PTA prices were up 27 per cent tracking firm PX prices and PTA futures. PTA margins improved sharply by 38 per cent to $ 181/MT. MEG markets remained sluggish with healthy supplies, adding to rising port inventories in China. During FY19, MEG prices declined by 8 per cent and margins declined by 23 per cent to $417/MT with higher feedstock prices. "During 2018-19, we achieved several milestones and made significant strides in building Reliance of the future. Reliance Retail crossed Rs 100,000 crore revenue milestone and our petrochemicals business delivered its highest ever earnings. I am proud of the entire Reliance team; their hard work and dedication has laid the foundation for these achievements and many more to come. The company has delivered record consolidated net profit of Rs 39,588 crore for the year in a period of heightened volatility in the energy markets. I am delighted to highlight that our company has more than doubled its PBDIT in last five years to Rs 92,656 crore – establishing a global benchmark for value creation. Commenting on the results, Mukesh D Ambani, chairman and managing director, Reliance Industries Limited, said. In 2018-19, RIL achieved a consolidated revenue of Rs 622,809 crore, an increase of 44.6 per cent as compared to the previous year. Increase in revenue is primarily on account of higher realisation for Refining & Petrochemical products with a 22 per cent increase in average Brent Crude Price. Higher volumes with stabilisation of new petrochemical facilities also contributed to revenue growth. RIL’s polymer production was up 18 per cent in FY19 to 5.8 MMT with consistent operations of ROGC and operational excellence across manufacturing facilities. RIL continues to maintain its position as a leader in the domestic market with an integrated supply chain, agility in operations and feedstock flexibility. Reliance Retail delivered a record-breaking performance in revenue and profits growth for 2018-19. Segment revenues for FY19 grew by 88.7 per cent. "Focus on service and customer satisfaction led to higher numbers of subscribers and footfalls across our consumer businesses, driving robust revenue growth. Our endeavour is to create better experiences for our customers, leading to a better shared future," concluded Ambani.
Source: Fibre2fashion
Arvind Fashions, which holds the brands and retailing businesses of Arvind Ltd, has undertaken major restructuring as it looks to exit lossmaking ventures with various global brands. Bengaluru-based Arvind Fashions was demerged from the parent company before it was listed on the National Stock Exchange (NSE) barely a month ago. Arvind Fashions is talking to companies to sell the India licences of Gant, Izod and Nautica, according to two people familiar with the development. It is either scaling down or weighing to exit US-based Ed Hardy said. While the profitable US brand Arrow has been clubbed with Calvin Klein and Tommy Hilfiger, to be led by Shailesh Chaturvedi, loss-making Aeropostale has been merged with the department handling another struggling US label of Gap. Kulin Lalbhai, executive director of Arvind Ltd, declined to comment when asked about Arvind’s plans to exit these foreign labels. “We evaluate milestones of our portfolios every year and look at scaling opportunities for them and take decisions based on that. With the new changes, Parag Dani will handle Gap and Aeropostale while Alok Dubey will take care of US Polo and Flying Machine and both of them will report to chief executive J Suresh. Both Suresh and Chaturvedi, head of Calvin Klein and Tommy Hilfiger, will continue to report to the board, Lalbhai said.
Source: Economic Times
Companies and promoters will have to be more cautious in dealing with unpublished price-sensitive information (UPSI) from this month, as SEBI’s new insider-trading norms will hold them responsible if they hold on to UPSI without any ‘legitimate purpose’. SEBI’s recent amendment has widened the applicability of its insider-trading norms. The regulator has now extended the requirement for reporting trades, and seeking clearance before trading in the company’s shares, even to senior employees of material subsidiaries and promoters of listed companies.
Flow of UPSI
It has also clarified that if the person who has traded is in possession of an UPSI, his trades will be presumed to be motivated by the UPSI. Companies will have to formulate policies to determine what constitutes ‘legitimate purpose’, whistle-blower norms for reporting leaks of UPSI and inquiry norms for determining the source of leaks. These policies are aimed at monitoring the flow of UPSI and encouraging employees to inform the company about any suspected leaks. SEBI has specified that the term ‘legitimate purpose’ will include the sharing of UPSI in the ordinary course of business by an insider with partners, collaborators, lenders, customers, suppliers, merchant bankers, legal advisors, auditors, insolvency professionals or other advisers or consultants, provided that such sharing has not been carried out to evade or circumvent the prohibitions of these regulations. The norms, which came into force from April, also stress upon listed companies to maintain a record of personal information such as PAN, mobile number of their directors, employees and immediate relatives, and persons with whom such employees share material financial relationships. The records like mobile number are likely to make it easier for SEBI to establish a connection between the company and the person who trades, and provide valuable inputs during investigations about UPSI leakages, experts say.
WhatsApp circulation
In some recent cases, SEBI had found that key financial details of a company were circulated on WhatsApp, but it could not pin down the source of information as the UPSI was available with many senior employees and board members. The markets regulator decided to amend insider trading rules after it passed several directions against various companies, including Axis Bank, Tata Motors and HDFC Bank, to ascertain leakage of confidential financial results in private WhatsApp groups ahead of their official announcement. Companies are now required to have internal controls for identifying inside information and maintain lists of employees and other persons with whom such information is shared. They are also required to periodically review their internal processes to evaluate the effectiveness of internal controls and intimate the persons receiving UPSI of their obligations towards preventing misuse of such information for insider-trading by advance notice. SEBI’s defence available for off-market inter se transfers between promoters, who were in possession of UPSI, has been extended to all insiders. A similar defence will be available for block deals, the regulator has said.
Source: The Hindu Business Line
Participating in the Peacebuilding Commission Informal Meeting on Sri Lanka here last week, Naidu said India's development cooperation with Sri Lanka is "unique" and is built on foundations of political understanding, a historic past, geographic realities and socio-cultural empathy. India has said its commitment of USD 3 billion in development assistance to Sri Lanka is inspired by rationale of South-South Cooperation, underscoring that New Delhi’s “unique” development cooperation with Colombo is built on foundations of political understanding and geographic realities. “Sri Lanka has a special place in Indian hearts, given the time-tested bonds, going back almost to the very beginning of recorded history in the subcontinent. Our relationship is built upon the strong foundations of a shared cultural and socio-economic heritage and extensive people-to-people interactions over millennia,” India’s Deputy Permanent Representative to the UN Ambassador K Nagaraj Naidu said. Participating in the Peacebuilding Commission Informal Meeting on Sri Lanka here last week, Naidu said India’s development cooperation with Sri Lanka is “unique” and is built on foundations of political understanding, a historic past, geographic realities and socio-cultural empathy. “India’s commitment of USD 3 billion in development assistance to Sri Lanka is entirely based on the priorities set out by the Government and the people of Sri Lanka,” he said, adding that these development projects, guided and inspired by the rationale of South-South Cooperation, focus especially on capacity-building, human resources development, uplifting of weaker sections as well as infrastructure development. India’s portfolio of development projects encompasses virtually all major sectors of the economy, including housing, infrastructure, education, health, agriculture, fisheries, industry, handicrafts, culture and sports. Naidu noted that the development projects have been widely appreciated for their transparent approach and timely implementation through recourse to local materials and manpower, in a manner that supports the local economy. The diplomat reiterated India’s commitment to stand with Sri Lanka in its efforts to build a future that accommodates the aspirations of all sections of society for “a life of equality, justice, and dignity and convey our sincere support and good wishes for Sri Lanka’s journey of peace, reconciliation and progress.” Naidu said the collaboration between Sri Lanka and the Peacebuilding Commission, operating under the principle of national ownership, is a classic example of a fruitful partnership. The development of the Peacebuilding Priority Plan (PPP) by the Sri Lankan Government in close consultation with Peacebuilding Support Office, UN Country Team and civil society representatives in November 2015, has had a multiplier effect in galvanizing on Sri Lankan government’s efforts. “The continued commitment of the Government of Sri Lanka to peacebuilding and transitional justice is evident from its recent decision to co-sponsor a two-year extension to implement the Human Rights Council resolution 30/1 that established the framework by which the government, victims and civil society can address the root causes of the past conflict,” Naidu said, referring to the resolution adopted by the HRC on promoting reconciliation, accountability and human rights in Sri Lanka. Naidu said the establishment of the Office for Missing Persons and the resettlement of Internally Displaced Persons, and the budget allocation of 11.3 billion rupees for reconciliation efforts in 2018 and 15.3 billion rupees in 2019 demonstrates the Sri Lankan governments strong commitment to lasting and sustainable peace. The introduction of the UN Joint Programme for Peace (JPP) in Sri Lanka aimed at harnessing assistance from multiple partners for strategic, coherent and sustainable support in the areas of transitional justice, reconciliation, good governance and durable resettlement should be supported by the international community, he added.
Source: Financial Express
Indian entrepreneurs must strengthen the human side of their firms as it is the people who must control technology. Industry 4.0” is a big buzz-word in business and policy circles. It is expected to change the world in ways that cannot be comprehended yet. What is Industry 4.0? How will it change the world? What should businesses and policy-makers do to take advantage of it? Iconic visions of Industry 4.0 are robots and self-driving cars that will eliminate human workers, and 3-D printers that can compress the capabilities of a large factory with hundreds of skilled workers into a small machine operated by a single person. A broader view of Industry 4.0 includes the rapid advance of digital computational and communication technologies that have created platforms, such as Google, Amazon, Uber, and Airbnb, that are disrupting service and knowledge industries ,including the media. Pervading through Industry 4.0, in manufacturing, service, and knowledge industries, are advances in artificial intelligence (AI) and ‘machine learning’. With these, Industry 4.0 is going beyond all previous transformational waves of new technologies (such as electricity and automobiles) which replaced human energy in the ‘doing’ of work, to replacing human minds in ‘thinking’. Therefore, the fear of who will be in charge in the future is rising. Human beings using machines? Or, machines using human beings? This profound question should concern us. However, of more immediate concern for policy-makers and citizens is, how new technologies are changing employment patterns, and how industry-leaders are harnessing Industry 4.0. If we can learn to ride the bucking horse before it grows too powerful, we will be equipped to harness its power when it grows further. CEOs of three manufacturers, leaders in applying technologies to improve their competitiveness, were asked these questions at CII’s AGM in April 2019. One was Toyota-Kirloskar: Toyota is a world-wide leader in the management of manufacturing. Another was Bosch, a global leader in the design and production of high-tech equipment for several industries. The third was Bharat Forge, one of India’s most successful component producing companies, who broke into global supply chains with its world-best ability in rapid prototyping, wherein computer-aided equipment enables the combination of flexibility with accuracy. Bharat Forge supplies to OEMs around the world and now runs plants in Sweden and Germany also. All three said that the key to improving productivity with technology was people. Vikram Kirloskar emphasised that the fabric uniting Toyota’s supply chains remains the famous ‘Toyota Production System’, of collaboration between parts of the system to improve the reliability of the whole system. ‘People to people’ collaboration and trust enables ‘win-win’ improvement within factories and across firms’ boundaries in the supply chain. Teams choose new technologies as they are developed to improve the systems’ performance. Bosch had the same solution. It assists its vendors — many of whom are SMEs — to experiment with and determine which ‘Industry 4.0’ technologies will enhance their competitiveness. Industry 4.0 is ‘pulled in’ by people, not ‘pushed on’ to them. Baba Kalyani of Bharat Forge has been a path-finder in the automobile component industry, always ahead in using technology. He too re-iterated the necessity of human intelligence in improving the systems’ performance. Bharat Forge employs graduate engineers to run its sophisticated machines. Technical know-how is a base-line requirement. However, curiosity — a very human quality — is essential for innovation and for continuous improvement of the system, he said.
The Toyota example
The Toyota Production System was described as the ‘Machine that Changed the World’. Because Japanese companies applied its tenets of ‘total quality management’ through ‘small group activity’ on shop floors and offices, where workers used system analysis and simple statistical techniques for ‘zero defects’ and ‘just-in-time’ deliveries across supply chains. With these methods, Japanese companies became world-beaters in many industries — automobiles, steel, chemicals, electronics, etc. Western companies began to imitate Japanese methods to catch up. However, often they could not see the ‘people-to-people’ fibers within the fabric that enabled the Japanese systems’ pace of continuous improvement, with which it had overtaken the rest of the world. American automobile companies hired Prof WE Deming, who had catalysed the total quality movement in Japan, to guide them. After a few years, when he was asked on US National Public TV whether the Americans would catch up, he replied very sadly: “They don’t get it. They think the solution is in the statistics. Whereas it is the people.” Industry 4.0 technologies are disrupting many industries. They are changing patterns of employment and are creating new jobs too. The gig economy, led by food delivery firms and ride-hailing firms, has created over one million jobs in the Delhi region, according to IIM(B). An estimated 56 per cent of new employment in India is being generated by the sharing economy across both the blue-collar and white-collar workforce, according to Team Lease. “The gig economy is an extension of India’s informal labour, which has been prevalent for a long time. These workers do not get any social security insurance,” ICRIER says. The flexibility in their employment, enabled by technological platforms, results in workers becoming mere tools in a technology-powered production system. Contrast this with the wisdom of the world leading manufacturing companies cited before, for whom the people who work are their sources of competitive advantage, with people using technologies as their tools to improve performance. Human beings provide the ultimate source of competitive advantage in enterprises. Enterprises are ‘socio-technical systems’. They combine a social/human side with a technology side. Indian enterprises must strengthen the human side of their enterprises. Indeed, India’s masses of trainable people, eager to earn, can be a source of competitive advantage for enterprises in India. Workers cost less in India than workers in many other countries, whereas technology (and capital) costs more. Therefore, enterprises in India would do well to strengthen their social sides. Employers (even in gig enterprises) must show more commitment to their workers’ welfare, and to their continuous learning, to get the best out of Industry 4.0 technologies. Government policies must enable, and induce, employers to do this rather than change laws to make it even easier for them to informalise employment. Finally, returning to the existential question of Industry 4.0. Humans must remain masters of technology; they must not let technology become their master with an excitement to adopt the latest Industry 4.0 technologies whatever its consequences. The writer is a former member of the Planning Commission and author.
Source: The Hindu Business Line
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1322.07 |
USD/Ton |
-0.45% |
4/21/2019 |
|
VSF |
1886.75 |
USD/Ton |
-0.39% |
4/21/2019 |
|
ASF |
2514.67 |
USD/Ton |
0% |
4/21/2019 |
|
Polyester POY |
1347.57 |
USD/Ton |
-1.09% |
4/21/2019 |
|
Nylon FDY |
2878.60 |
USD/Ton |
0% |
4/21/2019 |
|
40D Spandex |
4742.97 |
USD/Ton |
-0.31% |
4/21/2019 |
|
Nylon POY |
2684.70 |
USD/Ton |
0% |
4/21/2019 |
|
Acrylic Top 3D |
1521.33 |
USD/Ton |
-0.97% |
4/21/2019 |
|
Polyester FDY |
3161.98 |
USD/Ton |
0% |
4/21/2019 |
|
Nylon DTY |
5637.87 |
USD/Ton |
0% |
4/21/2019 |
|
Viscose Long Filament |
1576.52 |
USD/Ton |
-0.47% |
4/21/2019 |
|
Polyester DTY |
2714.53 |
USD/Ton |
-0.55% |
4/21/2019 |
|
30S Spun Rayon Yarn |
2580.30 |
USD/Ton |
0% |
4/21/2019 |
|
32S Polyester Yarn |
2035.90 |
USD/Ton |
0% |
4/21/2019 |
|
45S T/C Yarn |
2893.51 |
USD/Ton |
0% |
4/21/2019 |
|
40S Rayon Yarn |
2833.85 |
USD/Ton |
0% |
4/21/2019 |
|
T/R Yarn 65/35 32S |
2431.15 |
USD/Ton |
0% |
4/21/2019 |
|
45S Polyester Yarn |
2177.59 |
USD/Ton |
0% |
4/21/2019 |
|
T/C Yarn 65/35 32S |
2550.47 |
USD/Ton |
0% |
4/21/2019 |
|
10S Denim Fabric |
1.37 |
USD/Meter |
0% |
4/21/2019 |
|
32S Twill Fabric |
0.83 |
USD/Meter |
0% |
4/21/2019 |
|
40S Combed Poplin |
1.10 |
USD/Meter |
-0.27% |
4/21/2019 |
|
30S Rayon Fabric |
0.64 |
USD/Meter |
0% |
4/21/2019 |
|
45S T/C Fabric |
0.71 |
USD/Meter |
0% |
4/21/2019 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14915 USD dtd. 21/04/2019). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The government has paid Rs44 billion to the local textile industry under ‘Prime Minister Exports Enhancement Package’ to enhance country’s exports. According to sources, the package was aimed at bridging the gap between local exports and imports by encouraging the export-oriented industry and incentivizing the industrial sector for introducing the innovative, modern and cost-cutting technologies, particularly in the textile industry. So far, the State Bank of Pakistan (SBP) has received 276,000 refund claims under the package and they were processed accordingly. The package was introduced in 2016-17 and in first five months, the government had paid an amount of Rs5 billion, and in the fiscal year 2017-18 the government had cleared the refunds amounting to Rs26 billion. In the last seven months, the government had paid Rs11 billion in outstanding claims, and the pending liabilities of Rs23 billion would be paid off by the government in next few months.
Source: Dunya News
Vietnam’s textile and garment industry is optimistic about earning $60 billion from exports by 2025, thanks to free trade agreements (FTAs) and a focus on environment-friendly manufacturing, The sector earned $36 billion in exports last year, up 16 per cent year-on-year, making the country one of the world’s three biggest exporters of textiles and apparel. According to Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (VITAS), the association this year has set an export target of $40 billion, up 11 per cent year on year. Speaking at the 2019 Global Textile and Apparel Supply Chain Conference held recently in Ho Chi Minh City, Giang said the industry is expected to enjoy a trade surplus of $20 billion and employ 2.85 million workers. Many enterprises have already received orders for the first six months of 2019 and even for the entire year, Vietnamese media reports quoted Giang as saying. The industry is also expecting more orders to shift from China to Vietnam due to the ongoing US-China trade war. Vietnam is signatory to 16 FTAs. Ten out of 12 signed agreements have been enforced, including the ASEAN Trade in Goods Agreement, the ASEAN-China FTA and the ASEAN-Korea FTA, while the two remaining, the CPTPP and the ASEAN-Hong Kong FTA, have not yet come into force. The FTAs that Vietnam has signed all have environmental barriers with higher green standards, which require enterprises to improve not only product quality but also production processes. If enterprises fail to do this, they will face a risk of having orders stopped or rejected, especially orders from major international garment brands. VITAS set up an environment committee three years ago and has participated in an action programme for the Green the Textile and Apparel Industry group. In addition, last year VITAS and the World Wide Fund (WWF) for Nature launched a project on green textile industry. The project aims to encourage players in the domestic textile sector to promote better river basin governance, water quality improvement and sustainable energy use.
Source: Fibre2Fashion
The Ministry of Industry and Trade (MoIT) has proposed a VNĐ100 trillion (US$4.31 billion) preferential credit package for the development of the country’s support industry. The ministry says that Vietnamese support industry products could have high competitiveness, meeting 45 per cent of essential demand and local consumption, and accounting for 25 per cent of total export value by 2020. The support industry plans to meet 70 per cent of local demand by 2030. It also planned to have 1,000 firms capable of supplying products to assembly companies and multinational groups in Việt Nam. The local support industry would meet the requirements of localisation progress of production sectors including 40 to 45 per cent for garment and textile, and leather shoes, and 10 to 20 per cent to assembly of cars with fewer than nine seats. To realise the set targets, the ministry has proposed a range of solutions in terms of policies and market development for the support industry. Accordingly, the Government should continue to build and complete policies to promote development of some key support industries. Policies to encourage localities to use their budgets for support industry would also be promulgated. In addition, the Government should have mechanisms to develop some sectors such as automobile, electronics, garment and textile, leather shoes and material industry. Businesses should be given support to improve their capacity. The country would build three centres for the development of the support industry. Preferential credit would also be given to the sector. Specially, the VNĐ100 trillion credit package would have similar mechanisms to the credit package for hi-tech agriculture development. The package for hi-tech agriculture development has the participation of eight commercial banks. The banks would provide loans to organisations and individuals who want to invest in clean and hi-tech agriculture. The interest rates would be 0.5 to 1.5 percentage points lower than normal levels. Prime Minister Nguyễn Xuân Phúc assigned the Ministry of Planning and Investment in co-operation with the Ministry of Finance to arrange capital to build the three centres. MoIT would study for the construction of the centres. The State Bank of Việt Nam would provide preferential mechanism on capital and loans to develop prioritised sectors within 5 to 10 years. The Ministry of Science and Technology would consider adjusting access mechanisms of the Việt Nam National Fund for Science and Technology to make them simpler for support industry firms. In addition, each locality should have action programmes to develop the support industry. Statistics from MoIT showed that Việt Nam now has some 1,800 part suppliers. However, only 300 firms are in the supply chains of multinational groups.
Source: Vietnam News
ISLAMABAD - The country’s textile exports witnessed nominal increase of 0.08 percent during the first three quarters of the current fiscal year compared to the exports of the same period of last year. The textile exports during July-March (2018-19) were recorded at $9991.428 million compared to the exports of $9983.065 million during the same period of last year, according to the latest data of Pakistan Bureau of Statistics (PBS). The textile commodities that witnessed positive growth in external trade included knitwear, exports of which grew from $1971.906 million last year to $2155.039 million during the current fiscal year, showing growth of 9.29 percent. The exports of bedwear also increased by 2.69 percent, from $1674.096 million to $1719.185 million whereas the exports of tents, canvas and tarpaulin increased by 3.49 percent, from $65.953 million to $68.252 million. Imports decline by 7.96pc to $40.8b from $44.3bThe exports of readymade garments grew by 2.02 percent, from $1918.313 million to $1957.018 million and the exports of madeup articles (excluding towels) increased by 1.26 percent, from $513.364 million last year to $519.857 million, the data revealed. Meanwhile, the textile commodities that witnessed negative growth in external trade included raw cotton, exports of which shrunk by 71.84 percent, from $55.825 million last year to $15.721 million. The exports of cotton year also decreased from $987.797 million to $835.325 million, a decline of 15.44 percent whereas the exports of cotton cloth slid by 2.09 percent, from $1630.268 million to $1596.271 million.
Source: The Nation
Eighty six per cent of brands participating in the Dutch Agreement on Sustainable Garments and Textile (AGT) are on the way to meeting the agreement targets, according to the annual report published by the parties to the AGT recently. By the end of 2018, 92 garment and textile brands had signed up, representing around 48 per cent of turnover in the Dutch market. In 2018, companies and other parties to the agreement, such as trade unions, civil-society organisations and government, intensively worked together on projects relating to a living wage and child labour. They also developed tools to support companies in areas such as freedom of association and animal welfare. By gaining a clearer picture of conditions at a larger number of production sites and of the materials used by companies, and by analysing their own supply chain, companies took specific action in 2018 to change their operational management in a way that makes them better able to tackle abuses in their supply chain, according to a press release from the Netherlands Social and Economic Council (SER). International cooperation with other initiatives also grew, according to the annual report. Companies sign up to the Agreement voluntarily, but participation is not without commitments. In 2018, the efforts of participating companies were assessed for the first time based on an assessment framework, which parties drew up together. The AGT Secretariat carries out the assessment and is provided by SER. The agreement was signed on July 4, 2016, and runs for five years. With their influence and knowledge, the signatories help companies to fulfil their obligations under the agreement, which involve working on a transparent supply chain and risk management to tackle the problems that exist in the chain. (DS)
Source: Fibre2Fashion
Every second, the equivalent of a truckload of fabric is thrown into a landfill or burned, leaching chemicals (such as dye) or non-biodegradable synthetic fabrics (such as polyester) into the ground. Every year, roughly USD 500 billion of barely worn clothing is discarded, even though manufacturing these items takes a tremendous toll on the environment – using coal and petroleum to create synthetic fibers and pesticides to grow natural ones, including cotton. At this rate, by 2050 the fashion industry will account for a quarter of the global average consumption of fossil fuels, according to a report published by the Ellen MacArthur Foundation in 2017. Yet, of the nearly 100 million tonnes of textiles produced worldwide every year, a staggeringly small one percent, or 980,000 tonnes, is all that gets recycled. In 2018, roughly 143,000 tonnes – 15 percent of the global total – were recycled in the Italian city of Prato. This Tuscan city 24 km from Florence is the world’s capital of post-consumer textile processing, which makes it very appealing for big brands in search of more sustainable production models. “Since the mid-19th century, Prato has been recycling rags from all over the world with advanced technologies and investments in the most innovative machinery,” explains Fabrizio Tesi, who co-owns Comistra with his sister Cinzia. This 100-year-old company in Prato produces fabrics containing 90 percent recycled textiles. Tesi is also president of A.S.T.R.I, the Italian Association of Recycled Textiles, founded two years ago to promote Italian excellence and Prato’s nearly two centuries of transforming textile waste, especially wool, into resources. ASTRI came into being thanks to the efforts of entrepreneurs in the sector who were committed to quality regeneration. They have the support of the street vendors, wool mills, raw material traders and other workers who spin, dye and finish clothes in the most important textile district of Europe. Prato counts roughly 7,200 companies, almost 40,000 employees and a turnover of five billion euros (USD 5.6 billion) per year. “From my grandfather Alfredo to my father Rolando and my mother Giovanna, our family has always had a strong vocation for innovation. This led us to create a factory that is unique in the world, where we regenerate and transform textile by-products and post-consumer materials into a fabric called ‘mechanical wool’ or ‘Prato wool.’ It’s a recycled wool of very high quality created without new sheepskin, and that boasts the Global Recycled Standard certification,” says Tesi. Comistra sells its fabrics to large fashion brands such as Armani, Banana Republic, Zara and H&M, but the company is not alone. There are hundreds of other companies in the district committed to the regeneration of post-consumer materials. These include the Valfilo spinning mill, which produces carded yarn from recycled materials; the Intespra wool mill, which manufactures fabrics; the Manifattura Maiano, which processes textile waste to obtain insulation for sustainable construction; and startups such as Rifò, founded last year by Niccolò Cipriani, producing scarves and hats from recycled wool. For Tesi and his colleagues, using waste materials was once embarrassing, but now they do it with pride: “The fashion industry will be saved from an unsustainable production model only if it follows Prato’s example,” Tesi says. In the age of conscious consumption, all major brands are facing the challenge of recycling and integrating eco-sustainable products into their collections. But they have a long way to go to reverse the wasteful trend caused by unsustainable industrial practices. “It is necessary to completely revolutionize production systems, and to think about what comes after the end of a garment’s life,” Tesi says. Last year, he also started making clothes in collaboration with the Brunelleschi Institute of Art, based on the principles of eco-design. These garments are designed to be easily repaired and regenerated, with cotton seams, non-toxic colors and natural fabrics, and without thermoadhesives or synthetic materials, which can compromise recycling. This is the idea behind international movements such as Fashion Revolution or Fashion for Good, platforms dedicated to triggering change in one of the most polluting sectors of manufacturing, starting with technologies and models that are at home in Prato.
Source: The Hindu
Japan recently announced it will fund $446,428 to improve the competitiveness of the garment and textile value chain in Palestine to promote employment, especially in the northern governorates of the West Bank. This is one of nine new projects implemented by the United Nations Industrial Development Organisation (UNIDO) with Japanese funding totalling $5.8 million. “By promoting creativity, not only innovation and economic competitiveness are fostered, but also many individuals, including young men and women, are encouraged to develop creative approaches for starting new industrial ventures with a vision towards the future transformation of their societies,” said UNIDO project Manager, Marlen Bakalli. The project will apply UNIDO’s approach to creative industries, according to a press release from the UN body. It involves the design and implementation of a comprehensive training programme focused on creativity, which will boost skills development, innovation and access to markets in the textile value chain to stimulate income-generating activities. A Garment and Fashion Design Centre will be established to provide services to key stakeholders of the sector–including business development, design and prototyping services–in a sustainable manner
Source: Fibre2Fashion
A “Green New Deal” has become the talk of the town in many of the world’s capitals. Having recently emerged in the United States, the idea pays tribute to the visionary economic-recovery programme launched by President Franklin D Roosevelt in 1933. But Europe can – and must – deliver it as well. Europe has long been committed to the environment, introducing its first joint programme back in 1972. In 2005, the European Union established the first emission-trading scheme, which remains the world’s largest carbon market. And in 2015, the EU took the lead in negotiating the Paris climate agreement, and committed to cutting its own greenhouse-gas emissions by 40% from 1990 levels. But these steps, though important, do not address the scale of the challenge now facing the world. Bees and other insects are disappearing, while microplastic pollution has become ubiquitous. Rising temperatures could cause ice to disappear from the Arctic by 2050, and will worsen the fires, droughts, and floods Europe is already experiencing. And as air pollution increases, so will deaths from respiratory diseases. And yet there are also grounds for optimism. More and more people are willing to act and to adapt their lifestyle, like the students and others taking to the streets of Stockholm, Prague, Brussels, and Milan every Friday. Businesses also increasingly see the benefits of the new green economy. It is politics and politicians, both national and European, that are lagging behind. Now is the time to build on grassroots momentum and make Green Europe the number-one priority for the coming years. Doing so requires focusing on three main areas. First, Europe must become a carbon-neutral economy by 2050. If we want to limit global warming to 1.5°C relative to the pre-industrial era, we have no other choice: EU net carbon-dioxide emissions must come down to zero by mid-century. That means investing massively in future mobility, energy-efficient buildings, and renewables, and in key technologies such as hydrogen batteries, new generations of solar panels, and green chemistry. It also means applying strict CO2 emission limits to new passenger cars, public transport, and commercial sea and air transport. And it means making Europe, together with our car industry, the first electric-vehicle continent by 2030. Second, Europe must take the lead in the responsible use of resources and become a truly circular economy that minimises waste. Today, 8bn tonnes of materials are processed into energy or products annually in the EU. Only 0.6bn tonnes – a mere 7.5% – originate from recycling. We must do much better. In addition to delivering on our plastics strategy, we should focus on four priorities: food waste and the bio-economy, textiles, construction, and fast-moving consumer goods. For example, we can begin with an EU initiative to fight the planned obsolescence of household appliances and electronic devices. Third, we must do much more to protect biodiversity. According to the World Wildlife Fund, wildlife populations have fallen by an estimated 60% globally since 1970. Next year’s United Nations conference on biodiversity in Beijing will be decisive. Once again, the EU should lead the way. We need to strengthen EU legislation on the protection of species, as well as an ambitious plan for the blue economy and the preservation of our seas. And we must launch a real debate with – and not against – our farmers, reviewing our standards and modernising the Common Agricultural Policy to accompany this green transition. This massive shift will not happen if its costs fall disproportionately on those least able to bear them. All EU measures should therefore be designed to minimise social costs. At the same time, we need to keep pushing for effective global co-operation, while protecting ourselves from unfair competition. There is no point in having strict EU rules on pesticides or forest management if our imported food and wood is produced in unsustainable ways. The three objectives could become the pillars of a Sustainability Pact at the heart of the EU’s new policy cycle. In some respects, this should be as important as the Stability and Growth Pact that applies to member states’ public finances. Our ecological debts are no less a cause for concern than our fiscal debts! To achieve its goals, a Sustainability Pact would require concerted action on climate, trade, tax, agriculture, and innovation. The EU must not be afraid to use its regulatory powers. For example, expanding the scope of ecodesign legislation and of extended producer responsibility for the post-consumer phase of a product’s life could accelerate pro-environmental innovation. Massive investments will be required, too. The European Commission estimates that the EU will need €180bn ($203bn) in additional investment each year to meet its commitments under the Paris agreement. This is an achievable target. The European Investment Bank is already the world’s largest multilateral provider of climate finance. In addition, the EU’s forthcoming budget and its Investment Plan – which has a track record of leveraging private-sector investment – could further boost Europe’s green firepower. The financial sector also has a critical role to play: through climate-related financial disclosure, we can stimulate the world’s biggest financial institutions – such as Norway’s sovereign wealth fund and BlackRock – to take a long-term view and avoid what Mark Carney, the governor of the Bank of England, has called the “tragedy of the horizon.” And, although EU member states might resist it, we must have a debate on taxes and subsidies on fossil fuels, and on the mainstreaming of sustainability in public expenditure. For such a transformative green programmed to succeed, we must set aspirational goals and embrace “moon-shot missions.” At the same time, we will need to agree on detailed roadmaps with member states and the European Parliament, and hold in-depth discussions with regions, cities, businesses, trade unions, and civil society. Not everything can be done overnight. But we can no longer close our eyes and lungs to what is happening to our environment. The best time to launch a Green EU Deal was years ago. The next-best time is now. – Project Syndicate Michel Barnier is a former vice president of the European Commission and French Minister of Foreign Affairs. He is currently EU chief negotiator for Brexit.
Source: Gulf Times
For five months straight the farm hands in the Malian village of Siby walk out together to the cotton fields, a clean sack in hand, for a long day of the meticulous work of picking the crop. In this field not far from the border with Guinea, several teams are out from daybreak to sunset, the first link in a global production chain that takes the cotton from the plantation to consumers. "For each hectare, we invest more than 100,000 CFA francs (around 150 euros, $170) and after the harvest we can recoup that investment and have 150,000 CFA francs in profit," said the owner of the field, Daouda Camara. "But we need the cotton to be of good quality," he added. With record production of more than 700,000 tonnes the past two seasons, Mali has retaken the title of Africa's cotton champion. The crop supports four million people, a quarter of the population. The latest season, which runs from November to March, has just ended, but the cotton industry isn't resting on the laurels of its latest success. The cotton farmers confederation set an ambitious objective of raising output to one million tonnes next season at its latest meeting, which was at attended by Prime Minister Soumeylou Boubeye Maiga before he resigned this week over his government's handling of violence in the centre of the country. But political and economic leaders also publicly bemoan that Mali, like other African producers, only processes a tiny fraction of its production. Most of the cotton is exported raw. President Ibrahim Boubacar Keita, at a recent conference on emerging African nations, lamented that Mali processes only two percent of its cotton. "Pitiful! Shameful!" he told attendees. The association of African cotton growers called on him to help convince others leaders to boost the processing of raw cotton into textiles in order to capture more of the added value.
- Inputs: fertiliser and credit -
The role of the state in supporting the cotton industry is already considerable, particularly via the state-owned Malian Textile Development Company (CMDT), which buys cotton from farmers. Camara said cotton farmers benefit from subsidised fertiliser, unlike farmers of other crops. They also have easier access to credit. "With cotton farming the returns from a good season allow us to get good equipment," he said. The CMDT has made progress in recent years in getting value out of byproducts of separating the cotton fibre from seeds. "Ten years ago the cotton seeds would rot in the courtyard of the CMDT," said Bakary Togola, head of the APCAM association which unites farmers' organisations across the nation. "Today, there are facilities which transform the cotton seeds into oil," he said, even if there are not enough yet. But even rarer are facilities which take the tufts of cotton and spin them into yarn, let alone weave the yarn into cloth, steps in the production chain where there is more economic value to capture.
- 'Flooded' with imports -
Experts in the sector say potential investors aiming to transform cotton in Mali face a series of obstacles including high energy costs, a lack of trained workers, and a small domestic market. One only has to look at the Mali Textile Company, also known as Comatex. Created in 1968, the Mali state only now holds a 20 percent stake with 80 percent in the hands of the China Overseas Engineering Group (COVEC), to see it is tough going.Its factory in the central city of Segou is the only one in the country to process cotton from the beginning to end. "We transform the cotton from CMDT into thread, yarn to be woven, unbleached cloth, printed cloth," said Issa Sangare, Comatex's deputy CEO. Yet the firm is facing severe financial difficulties. "The market is flooded with imported textiles that are cheaper," he said
Source: France24
