India’s apparel exports have fallen for two years in a row. Estimated at $16.2 billion in FY19, the country’s apparel exports fell by 1.2% from FY18, which in turn was 4% lower than the previous year. This comes after annual average growth of 5.7% between FY10 and FY16. The reasons for the slowdown range from issues on the domestic front to slackening global demand. According to Chandrima Chatterjee, adviser at Apparel Export Promotion Council (AEPC), the time taken by the industry to align to the new goods and services tax (GST) regime, downward revision of export incentives, and the credit squeeze particularly faced by small and medium enterprises adversely impacted exports. That’s not all. Even the share of apparel exports in the country’s total textile exports has fallen sharply from 51% in FY17 to 45% in FY19. Industry experts attribute the growth between FY10-17 to shifting of manufacturing bases by developed countries to low-cost emerging nations such as China, India, Bangladesh and Vietnam. However, the recent slowdown in global demand has increased competition in the markets, which also coincided with taxation changes in India. Analysts say that there was a 6-7% impact on costs, which hurt profitability of garment makers too. There are other reasons for the decline. According to CARE Ratings Ltd, “India’s apparel exports comprise mainly of cotton garments (51%), with manmade fibre accounting for around 28%. India needs to diversify its fibre base, as global consumption is diversified and MMF (man-made fibre) holds a much larger share as compared to cotton." That apart, competition on pricing has also increased in recent times. CARE Ratings adds that India is projected to lose market share to Bangladesh and Vietnam for ready-made garment exports to the European Union (EU), because of lower competitiveness, as Bangladesh has duty-free access to the EU. However, apparel manufacturers are now focusing on diversifying exports into countries such as Japan, Israel, South Africa and Hong Kong. How far these new markets help will determine export trends in the years ahead.
Source: Live Mint
Indonesia, the 16th largest economy in the world, has its GDP growing consistently above 5 per cent every year since 2000. Yet India, the seventh largest economy and projected by CEOWORLD Magazine to be ranked number 3 by 2033, has largely ignored investment opportunities in this vast archipelago. India's investment in Indonesia was a measly USD 82 million in 2018, as per the data from Indonesia's Investment Coordinating Board (BKPM). For the five years between 2014 to 2018, investments from India averaged about USD 100 million and that figure has been bumped up because of USD 286 million committed in 2017. The mega investment in 2017 was by Adani Ports in a new container port in Banten Province in the city of Cilegon, that is 100 kilometres from Jakarta in the northwest part of Java Island. In 2016, Indian investment in Indonesia was just USD 55 million. In 2018, the largest foreign investor in Indonesia was Singapore which committed USD 9.2 billion followed by Japan (USD 4.9 billion), China (USD 2.4 billion), Hong Kong (USD 2.0 billion) and Malaysia (USD 1.8 billion). India is ranked 25th among foreigner investors. In the recent second edition of the India-Indonesia Infrastructure Forum (IIIF) in Jakarta, Indian Ambassador to Indonesia, Mr Pradeep Kumar Rawat said the two countries were recognised as emerging large economies globally and had similar challenges and opportunities, with both having an infrastructure gap. Rawat when speaking to The Jakarta Post added that Indian investors were interested in roadwork, urban railways, oil and gas, airports and the health industry."These are the areas where Indian businesses could become beneficiaries in arrangements with the Indonesian companies," he said. Referring to the newly built MRT (mass rapid transit) in Jakarta, he also commented that Indian companies could share their expertise as they have built the cheapest metro projects in the world. Also, on the same occasion, Indonesia Coordinating Maritime Affairs Minister, Mr Luhut Pandjaitan said the government was looking forward to learning more from India about various technologies used in waste management and health care. Most of India's investments in Indonesia are in wood products, trade businesses, food manufacturing and textiles. Whereas, Indonesian investment officials would like to see future investments made in infrastructure and high-value-added industries and preferably made outside of Java. Investing in Indonesia for Indian companies however, is not without challenges. First of all, the process of obtaining a work visa or permit for Indians is not straight forward, an issue that is being taken up with the authorities by the Confederation of Indian Industry (CII). Furthermore, Indonesia is not exactly the most business-friendly country in the world. It is in position 73 out of 190 countries on the latest World Bank Doing Business Index published in 2019. Businesses wishing to establish a presence in Indonesia face regulatory and cultural dynamics which they will be unfamiliar with as an outsider. Other obstacles faced by businesses include the rising cost of credit, excessive and unpredictable regulation, poor quality of infrastructure, a poor legal framework, corruption and terrorism risk. Indonesia has a very diverse population, a relatively high level of unemployment and extreme poverty in some regions. This exacerbates inter-ethnic tensions and thus weaken the stability of the country. Starting a business in Indonesia can be complex, costly and time-consuming for foreigners. For example, companies that are wholly owned by foreigners require 2 shareholders and a minimum paid-up capital of IDR 10 billion (approximately USD 750,000). It also takes about 3-6 months and as many as nine different steps to establish a company in Indonesia. There are also some sectors that are closed or restricted to foreign investors. Industries that are closed to foreigners include forest concessions, bus/taxi transport and small-scale water transport services, print and broadcast media, film and cinema, distribution and exhibition and small-scale retail trade. Industries that have ownership limits for foreigners include airport/seaport construction and operation, electricity production, transmission and distribution, shipping, drinking water, railway services and certain medical services. With a population of 260 million growing wealthier and arising middle class demanding better products and services, for any business setting up in Indonesia, the internal market alone looks attractive. For businesses with the right strategy, that are willing to be patient and persevere, rich rewards may await.
Source: Business Standard
In an attempt to make into the top 50 countries in ease of doing business ranking, the DPIIT is working on improving India's ease of doing business by 27 places this year. Soon, companies may take only three days to register with the central agencies. India may put in a single clearance process for registration of permanent account number (PAN), goods and services tax (GST), Employee's Provident Fund Organization (EPFO) and Employee State Insurance Corporation in a span of just three days. In an attempt to make into the top 50 countries in ease of doing business ranking, the Department for Promotion of Industry and Internal Trade (DPIIT) is working on the improving India's ease of doing business by 27 places, according to The Economic Times. According to a senior government official, "Currently, there are issues on name reservation that is being sorted out by the ministry of corporate affairs." At times clearances take longers time due to the queuing at other agencies, which is being fixed. A proposal is made for a seamless process in HTML format for registration with the central agencies. This will ensure a single clearance of process. Apart from this, instead of digital signatures, authentication will be established in order to speed up the registration process. It is worth mentioning that, India has secured 77th rank in the ease of doing business in the year 2018, improving its rank by 23 positions. It was ranked 100th in 2017. In the last two years, India has climbed by 53 positions. In the 2014 to 2018 period, India has climbed 65 places whereas China dropped 27 places. Last year, the World Bank has noted eight reforms including starting a business, getting electricity, dealing with construction permits, getting credit, paying taxes and trading across borders, etc. The Department for Promotion of Industry and Internal Trade's plan for ranking upgrade also comprise changes to the insolvency framework to align it with international best practices, property registration, payment and refund of taxes and enforcement of contracts and to make it effective.
Source: Times Now
Senior officials of the 16-member RCEP group, who are negotiating a mega free trade agreement, will hold meetings in Bangkok from May 24 to iron out issues pertaining to the goods and services sector, an official said. "It is not a full-fledged round but an inter-sessional meeting, where senior officials would hold detailed discussions on issues of the proposed Regional Comprehensive Economic Partnership (RCEP) agreement," the official added. The meeting assumes significance as the member countries are aiming to conclude the negotiations by end of this year. A joint statement issued after a ministerial meeting of RCEP trade ministers in March in Cambodia has said that in order to ensure progress is made towards meeting the leaders' mandate for conclusion in 2019, the ministers agreed to intensify engagement for the remainder of the year (including by convening more inter-sessional meetings). The proposed free trade agreement, which is officially dubbed as RCEP, to cover goods, services, investments, economic and technical cooperation, competition and intellectual property rights to boost economic ties between the countries. Although the negotiations have entered the sixth year, negotiations on key issues are yet to be finalised. The member nations have yet to finalise the number of goods over which duties will be eliminated. RCEP members want India to eliminate or significantly reduce customs duties on maximum number of goods it traded with them. India's huge domestic market provides immense opportunity of exports for RCEP countries. However, domestic industries from sectors including metals, pharma and food processing have raised serious concerns over the presence of China in the grouping, with which India has a huge trade deficit. RCEP bloc includes 10 countries of ASEAN (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam) and their six free trade pact partners namely Australia, China, India, Japan, Korea and New Zealand. India already has a free trade agreement with ASEAN group, Singapore, Japan and Korea. It is also negotiating separate agreements with Australia and New Zealand.
Source: Business Standard
The ‘mother industry’ is mired in slowdown. Inverted duties and pitfalls of export promotion schemes need to be fixed. Data released by the Ministry of Statistics and Programme Implementation show signs of a sharp decline in industrial activity in February 2019. The IIP growth numbers suggest that the production of manufactured goods in February 2019 is only about 0.1 per cent higher than in February 2018. This may be a sign of stagnating demand, and it should be a matter of concern for policy-makers. More importantly, the data also show that there is an 8.8 per cent contraction in the output of the capital goods sector. This is the second month in a row when production of capital goods has contracted. The January 2019 IIP numbers also show a 3.2 per cent decline in the production of capital goods. The capital goods sector is important as it provides critical inputs like machinery and equipment to a broad set of user industries which are used directly or indirectly in the manufacture of goods and services. There is growing evidence that the Indian capital goods sector is becoming less self-sufficient and is relying more on imports to meet domestic demand. India is a net importer of capital goods with a widening trade deficit. In the total non-petroleum and oil imports of India, capital goods emerge as the second largest import category. Up to January of financial year 2018-19 , the share of capital goods imports in the total non-petroleum and oil imports of India was 28 per cent whereas the share of exports is 12 per cent. India’s export performance in the capital goods sector has also been modest. India’s share in global exports is a meagre 0.6 per cent and is the 25th largest exporter. A trend analysis of the last 10 years’ gross exports of capital goods shows a rising trend, but the export volume is meagre vis-a-vis imports, especially in comparison with China. The Central government has come up with measures like National Capital Goods policy and ‘Make in India’ to enhance the productivity and competitiveness of the capital goods sector. The government is also planning to leverage the FTAs (free trade agreements) to boost capital goods exports.
Trade pacts
However, an analysis of India’s export destinations and import sources indicate that trade agreements are unlikely to bring much benefits for the Indian capital goods sector. India’s major export destinations of capital goods are developed countries like the US, the UK, Germany, and France, and Gulf nations like the UAE, Saudi Arabia and Kuwait with whom currently India does not have any FTAs. However, our primary import sources of capital goods include South-East Asian nations like South Korea, Japan, the Philippines, Malaysia, Sri Lanka, Thailand and developed nations like the US, Germany, France, Canada, the UK, and Italy. India has existing trade agreements with most of these South East Asian nations and negotiations on new trade agreements like RCEP are going on. Foreign trade policy (2015-2020) recognises that though trade under FTAs is increasing, imports are rising faster than exports and India could not utilise the trade agreements with Japan, Korea and ASEAN nations entirely to its advantage. India’s export of capital goods to RCEP nations is modest when compared with our imports. In 2017-18, RCEP nations accounted for 91 per cent of India’s trade deficit in capital goods, of which China alone accounts for 64 per cent. Thus, with the growing wave of protectionism across the globe, India should be defensive about the capital goods sector as opening up of the domestic market beyond MFN (most favoured nation) level will increase the threat perception for the sector. From the import side, while the government is pushing up MFN rates to incentivise domestic value addition and Make in India, liberalising vis-à-vis the RCEP countries, especially China, does not sound like a consistent policy. The capital goods sector is considered the mother industry of the manufacturing sector for the critical role it plays in driving manufacturing growth through inter-sectoral linkages. Capital goods are carriers of embodied technology-enabling diffusion of innovation and thus enhancement of productivity across user industries both in the manufacturing and non-manufacturing sectors. A robust capital goods sector is vital for strengthening national manufacturing capabilities and creating employment opportunities. Recognising the strategic importance of this sector, consecutive governments have come up with a plethora of measures — National Manufacturing Plan (2012), Make in India (2014) and National Capital Goods Policy (2016) are but a few — to enhance the productivity and competitiveness of the sector. However, the contraction in capital goods output, as seen in the recent IIP numbers, and the increasing reliance on imports by user industries for their requirements indicate that the policy measures have not yet delivered any results. Thus, it is about time to address the fundamental issues affecting the critical sector. The government’s plan to leverage FTAs to boost the export potential of capital goods will be fruitful only when our domestic producers are on par with their counterparts across the world in terms of competitiveness.
The way forward
To emerge as a globally competitive capital goods producer in the era of smart manufacturing and swiftly changing technologies, it is imperative that India promotes technological upgradation of domestic producers of capital goods. The government may also focus on addressing issues like inverted duty structure and the unintended consequences of export promotion policies like zero duty on import of capital goods and import of second-hand machinery which affects the competitiveness of domestic capital goods producers. Attracting foreign direct investment with appropriate technology may be another way to boost this sector. On a more long-term note, recent trends suggest that strong and disruptive changes are imminent in manufacturing technologies across the world. These changes are likely to fundamentally alter systems of production, management, and governance in the manufacturing sector. India may consider adopting strategies to leverage its strength in information technology and take advantage of this new era of industrialisation which is likely to affect the capital goods sector in a major way.
Source: The Hindu Business Line
In a bid to increase voter participation, major markets in the city will remain closed on Tuesday. The initiative is purely on a voluntary basis and no businessmen will be forced to put the shutters down, they said. Choksi Mahajan, Manek Chowk Sona Chandi Bazar, Panchkuwa Kapad Mahajan, Gujarat Garments Manufacturers Association, the retail market along Gheekanta Road, Madhupura market for spices are among the ones that will remain closed. Gaurang Bhagat, president of Maskati Market Kapad Mahajan said that a formal notice has been issued on the same. "All shops in our market will remain closed. They are free to open their shops after casting their vote," said Bhagat. However, there is no hard-and-fast dictate to observe a strict bandh. Many businessmen have to adhere to compliance of GST. A day's off for them can be counterproductive, said market sources. However, Hiren Gandhi, vice chairman for Food Committee of Gujarat Chamber of Commerce and Industry (GCCI) feels otherwise. "With bank officials roped in for poll duty, banking services have been affected. As a result, the business sector has taken a hit. Many of the bank transactions have been derailed. In such circumstances, the loss will be negligible if shops are closed for one more day," said Gandhi. As per sources in the trade and industry, the response to the appeal is likely to yield better results in the old city rather. "The appeal also applies to new city areas. It is up to them whether to open shops or not. Moreover, the process is time-consuming. Thus, it is advisable not to open shops on voting day. We have made an appeal to businessmen to keep their shops closed on the polling day. It is purely on a voluntary basis," said Ashish Jhaveri, media convener of Amdavad Vepari Mahajan. Moreover, the eastern part of Ahmedabad has, on previous occasions, witnessed incidents of violence during election dates. Thus, shop-keepers will not open their shops as a precautionary measure.
CAUTIOUS STEPS
The eastern part of the city on previous occasions, witnessed incidents of violence during election dates. Thus, shop-keepers will not open their shops as a precautionary measure
Source: Daily News & Analysis
New Delhi: India and seven other countries will not be able to import cheaper Iranian oil without attracting US sanctions after May 1when the Donald Trump administration will end all the waivers. The US decision has jacked up global oil prices, which can potentially put the ruling BJP at a disadvantage in the latter stages of the ongoing general elections. Oil topped $74 a barrel on Monday, its highest in six months on fears of shortage due to expected removal of supplies from Iran. Washington, however, said the sanctions, aimed at pressuring Iran to curtail its nuclear programme and renegotiate with US, will not hurt global oil supply. “Today I am announcing that we will no longer grant any exemptions,” US Secretary of State Michael R Pompeo said in a briefing on Monday. “We are going to zero. We’re going to zero across the board,” he said. “We have had extensive and productive discussions with Saudi Arabia, the United Arab Emirates, and other major producers to ease this transition and ensure sufficient supply," Pompeo said. Washington had reimposed sanctions on Iran in November after pulling out of a 2015 nuclear deal between the Islamic Republic and six global powers. The US had granted waivers that allowed India and seven other countries to continue importing reduced quantity of Iranian oil for six months ending May 1. Indian officials and oil companies’ executives said refiners have already made alternative supply arrangements for May and are lining up supplies for June. “There would be no supply disruption,” said an executive at Indian Oil Corporation, the largest refiner in the country. “Only effect that you would see is higher prices, and that is already visible.” India is the second biggest customer of Iran and imported about 24 million tonnes of crude oil in 2018-19. Indian Oil — which imported 9 million tonnes of Iranian oil in 2018-19, the maximum for a refiner in the country — is seeking to source additional supply from Kuwait, Abu Dhabi, Saudi Arabia, the US, and Mexico by exercising the option to source additional volume from these suppliers with who it has annual term deals. Mangalore Refinery (MRPL) and Bharat Petroleum (BPCL) are other key importers of oil from Iran. Indian refiners hadn’t finalised the annual term deal for 2019-20 with Iran that usually begins in April every year. Officials said they were studying the US decision on waivers and its implications, but Monday’s announcement wasn’t going to be the end of negotiations between the two countries. “This is not the end of the road,” said an official, indicating India hadn’t yet given up on Iran supplies that suits Indian refineries and come with longer 60-day credit period and cheaper freight. “We will continue to engage with US on the matter.” Another official said the strategic Iranian port of Chabahar that India is helping build remains unaffected by Monday’s US announcement. Rising crude oil rates push prices of petrol and diesel in the international market to which domestic rates are linked. Higher oil prices also weaken rupee as India imports 84% of its oil needs. The combined effect could lead to higher domestic rates of petrol and diesel in the poll season, until state-owned oil marketers decide to absorb the higher rates. Theoretically, state companies are free to price fuels according to international rates, but they come under pressure from the government to keep rates low, particularly during polls. Domestic fuel rates have changed little in a month while international crude oil prices have jumped $7 a barrel, or about 10%, in the same period.
Source: Economic Times
The rupee Monday plunged by 32 paise to close at a two-week low of 69.67 against the US dollar following a spike in crude oil prices on reports that the US will end waivers on Iranian oil imports. The domestic currency managed to recover some lost ground after touching 69.88, the lowest in more than a month, during intra-day trade. A fall in domestic equity markets also weighed on the rupee. A weak US dollar against major global currencies capped losses of the domestic currency. At the Interbank Foreign Exchange (forex), the rupee opened sharply lower at 69.78 and touched a low of 69.88 against the dollar in early trade. But it pared early losses later and rose to an intra-day high of 69.50. The domestic currency, however, failed to sustain gains and finally settled at 69.67 per dollar, down 32 paise from its previous closing level of 69.35. The rupee had previously closed at this level on April 8. “The rupee has been under pressure today due to a sharp rise in crude oil prices in the international market. Profit booking in the domestic equity ... has also pressurized the rupee,” said Rushabh Maru, Research Analyst - Currency and Commodity, Anand Rathi Shares and Stock Brokers. Traders said a rise in crude oil prices also influenced the domestic currency. Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 1,038.46 crore on Thursday, as per provisional data.
Source: Business Line
Members of Gujarat's textile and diamond communities say GST, the Modi govt's flagship tax reform, has begun to work in their favour. Gujarat’s textile traders claim that the Goods and Services Tax (GST), the Narendra Modi government’s flagship tax reform, took a heavy toll on their businesses, but they are still largely batting for their former chief minister in this Lok Sabha election. A similar mood prevails in the state’s famed diamond industry, where the sheen of the Modi brand stands restored since the initial shock of the GST gave way to better business, say traders. “GST has definitely impacted our business. Smaller traders have been hit the most,” said Manoj Agrawal, president of the Federation of Surat Textile Traders Association (FOSSTA). “Business is picking up from what it was before, but it’s still down by 40 per cent. The fact that we have to give advance tax and do a lot of paperwork has added to the overall cost,” he added. “Earlier, there was no tax on textiles but now there is. So, it has certainly impacted us.” Agrawal, however, said at once that this would not translate into the defeat of the Bharatiya Janata Party (BJP). “Modi is good for the nation,” he added.
The twin shocks
Introduced in July 2017, GST subsumed 17 indirect taxes, like excise and service tax, and sought to simplify taxation while making it more transparent. However, it was rolled out in the middle of a financial year, and teething problems left a lot of traders, especially smaller players, high and dry. That it came just months after the Narendra Modi government’s shock demonetisation move, announced on 8 November 2016, triggered a cash crisis and deepened the sense of gloom. The trading community has always been the backbone of the BJP. But a section shifted away from the party ahead of the 2017 assembly elections — on the back of the twin shocks of demonetisation and GST — reducing the BJP to 99, its lowest-ever tally in the 182-member House, even though it won. It had won 115 seats in the previous assembly election. Talking to ThePrint, a BJP leader said the traders’ anger had subsided now and the saffron party was sure of doing well in the Lok Sabha elections. The Congress, which has been trying to tap the anger over the implementation of the two decisions, won 77 seats. It’s a performance the Congress, which won none of Gujarat’s 26 seats in the 2014 Lok Sabha election amid a clean sweep by the BJP, is hoping to replicate this election. “There are many who are not voicing their concerns openly as they are scared,” a senior Congress functionary told ThePrint. “But they will definitely answer the BJP with their vote.”
‘Good for the nation’
When asked whether GST rollout would impact the BJP’s electoral fortunes among the lakhs of Gujarati textile traders, Agrawal of FOSSTA voiced an emphatic “no”. “Modi desh ke liye achha hai. Demonetisation ya GST long-term mein achhe hain aur desh ke liye achhe hai (Modi is good for the nation. Demonetisation, GST are good for the long-term),” he added. “We support Modi completely.” Textile trader Dhiren Dalal is less unequivocal, saying the “hurried” way the government had implemented GST will impact the BJP, even if just by a whisker. “Returns take a lot of time… Earlier, there was no tax as it used to be a family business but now we are being taxed,” he told ThePrint. “The government has done it in a hurry and it will surely impact the elections but not significantly.” The president of the South Gujarat Textile Processing Association, Jitu Bhai Vakharia, defended Modi, blaming the state government for the improper implementation of GST, and attributing the market trouble to teething issues. “Right from Vajpayee to Manmohan Singh, everyone wanted to bring in GST but couldn’t. So, how can you blame Modi for it?” he asked. “As far as textile processing is concerned, we were able to have a dialogue with the government and reduce the duty from 18 per cent to 5 per cent,” he said. Modi, he added, would win the Lok Sabha elections once again.
‘Support Modi completely’
Gujarat’s famous diamond industry, a powerful bloc that employs over 20 lakh people, exports gemstones worth Rs 2.5 lakh crore every year. Babubhai Gujarati, president of the Surat Diamond Association, said GST had begun to work in traders’ favour over the past few months. “The government took a difficult decision but it is paying off now,” he added. “With GST, we get a pakka (bona fide) bill with address, so it’s good for us in trading. We support Modi in this completely.” A section of the traders talked about the business lost since India withdrew Pakistan’s most-favoured nation [MFN] status in the wake of the 14 February Pulwama attack, but claimed that Modi remained the most viable candidate.“After Pulwama (terror attack) and Balakot (air strikes on Jaish-e-Mohammed camps), traders have not been sending goods [raw] to Pakistan since India withdrew the MFN status,” said Dev Kisan Mangani, chairman, textile committee, South Gujarat Chamber of Commerce and Industry (SGCCI). “Though trade has been impacted, Pakistan has suffered more as they used to get raw material from us,” he added. When asked whether the impact on trade will have any bearing on the elections, Mangani said traders will continue to support the Modi government in the absence of a “healthy alternative” . “He is talking about important issues like nationalism, which is much more important that the temporary loss we may have suffered,” he added. “In the assembly elections, they suffered a slight setback. but things will be smoother now.”
Source: The Print
Indian Chamber of Commerce (ICC), one of the leading chambers of the country, is taking a business delegation to the US this week. “Being strategically operational from Kolkata, we have always subscribed to the view of trade as an engine of growth and emphasized the role of building bi-lateral relations to foster economic growth and development,” ICC director-general Rajeev Singh said. The delegation would visit New York and Washington. According to Singh, ICC’s latest initiative of overseas business promotion is supported by the Indian Embassy in the US. ICC president and Obeetee chairman Rudra Chatterjee, Keventer Agro Chairman & MD Mayank Jalan, Rupa & Co president Vikash Agarwal, Vikram Solar MD &CEO Gyanesh Chaudhary, Nicco Engineering Services MD Siddhant Kaul, PFH Oil & Gas director H V Poddar and Hritik Bansal of Ambootia Group along with others would be part of the delegation. In Washington, the delegation will participate in high-powered meetings which include talks with Ian Steff, assistant secretary for global markets and DG of foreign and commercial service, US department of commerce, US state department, World Bank ED Aparna Subramani. “There will be some focused B2B meetings with large US companies having specific business interests in India. The focus area of the delegation would be food, retail, energy and solar power,” Singh added. According to ICC, Rupa and Ambootia have interest in meeting retail and meeting representatives of Walmart. Poddar is meeting three oil companies during the visit while Jalan would look for discussion in the areas of food. An ICC executive feels that this is the highest-profile chamber visit to the US. Chatterjee, the ICC president, said, “The natural business partner of India is the US and ICC wants to do it bi-annually. Our focus would be the US, China and Bangladesh,” he added. In New York, the delegation will visit the MasterCard NYC Technology Hub, the New York Stock Exch (NYSE). There will be seminars on “US-India Business Relations”, which is scheduled to be held on April 24 at USIBC in Washington DC, and on April 26, 2019, at the Indian Consulate in New York. These business seminars will be addressed by luminaries like Arvind Panagaria, Swadesh Chatterjee and Kaushik Basu, who would share their thoughts and vision.
Source: Times of India
IACC (Indo-American Chamber Of Commerce) Textile Forum, in association with US Commercial Service, US Consulate, Mumbai is organising a one day Conference on “America First & Make in India: Together Achieving USD 100 Billion Trade in Textiles” Wednesday, April 24, 2019 at The Hotel Taj Mahal Palace, Colaba, Mumbai. The objective of the conference is to create, develop and sustain successful bilateral partnership across the textile value chain. In order to promote joint investment and to support favourable trade partnership, there will be representations from two states of USA – North Carolina and South Carolina. The American textile sector’s strength lies in functional, high end textiles, driven by superior technology and innovations – from heart valves and stents to aircraft bodies and advanced body armour, intelligent fabrics, scientific athletic wear and home textiles. Indian companies could learn and collaborate with US companies and participate in the US textile manufacturing opportunities involving FDI into the US. Similarly, India’s competitive advantage in fibre to fabric, along with its many textile clusters, can meet the ever-growing demand of the American textile industry. The conference brings thought leaders, policy makers, textile stalwarts, and academicians to deliberate and create a roadmap to deepen trade and investments between both nations, as well as creating textile ethos and ambience which benefits America First and Make in India.
Source: Textile Excellence
The Nagaland Handloom & Handicrafts Development Corporation Ltd. (NHHDCL) Dimapur is organizing a special Handloom Expo from May 14 to 27 in Mokokchung Town, Nagaland. Sponsored by the Office of the Development Commissioner (Handloom), Ministry of Textiles, Government of India, the expo aims to promote and develop the traditional handloom and handicrafts products of the state. Industries & Commerce Managing Director, K Hokishe Assumi in a press release informed that interested Co-operative Societies, NGOs, Apex Societies, SHGs, etc may apply to the Project Cell, NHHDC Ltd for stalls.
Source: KNN
Birla Cellulose hosted a Hub Development meet at Bhagalpur focusing on growth of the hub through innovations in dress materials, sarees and stoles with brand Liva. With the market for women’s apparel witnessing high demand and expecting a further rise, it is definitely an area of focus for the industry. A traditional and one of the oldest textile centres of India, Bhagalpur has been associated with the silk industry, and is famous all over India for its Tussar Silk and Bhagalpuri Saree. Through this meet, Liva aimed to take forward its initiative that was started in Salem of providing innovation, technical, product and marketing solutions for the value chain, buyers, exporters and brands across the country. The objective of the meet was to build awareness on emerging trends in women’s apparel globally and particularly in India, changing needs of consumer and growing environmental concerns. It also aimed to share unique opportunities for yarn partners and weavers to grow their business with Liva. Buyers representing prominent brands were also present for the conclave. “There is a huge gap in the product offerings in sarees from Bhagalpur. You either have a premium or there is basic level. There is a need for mid and mid – premium range. We aim to fulfil this gap by giving our partners more product offerings and a compelling value proposition”, said Rajeev Gopal, Global Chief Sales and Marketing Officer, Birla Cellulose. Various innovative ranges of yarns, fabrics and sarees were showcased by Liva’s varied partners. The products which were most appreciated were Silk X Modal in dress material, sarees as well as stoles. Partners found the event to be relevant and were enthusiastic about the possibilities of innovation as well as processing and marketing support by Birla Cellulose. The event was well appreciated and the attendees are looking forward to associate with Liva. Birla Cellulose felicitated its partners appreciating their valued support in developing innovative yarns and fabrics. Birla Cellulose as an organization aims at pushing the sustainability movement in India. With the entry of Liva in this category, saree too is set to be more sustainable with use of technologically enhanced eco-friendly fabrics.
Source: Textile Excellence
Exporters' body FIEO Monday said it has inked an agreement with Mumbai-based Prin. L N Welingkar Institute of Management Development and Research to support startups engaged in the export sector. Under the memorandum of understanding signed with the institute, the Federation of Indian Export Organisations (FIEO) has launched a post graduate programme in foreign trade management (PGP-FTM) at Mumbai. The move is aimed at attracting "new entrepreneurs in exports and bridge the gap of availability of qualified skilled manpower in Exim trade," FIEO said in statement. "The MoU, an industry-academia partnership, aims to jointly develop and deliver the post graduate programme in foreign trade management which shall endeavour to develop the human capital for meeting the growing demand in international trade ecosystem," it said. The programme will broadly encompass the general management principles, export import procedures, and international marketing concepts. The duration of the programme will be 11 months and will be offered in two batches. Qualified graduates from recognised university can apply for direct admission to the course and the first batch which will commence from August, it added.
Source: Business Standard
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1314.52 |
USD/Ton |
-0.56% |
4/22/2019 |
|
VSF |
1886.62 |
USD/Ton |
0% |
4/22/2019 |
|
ASF |
2514.50 |
USD/Ton |
0% |
4/22/2019 |
|
Polyester POY |
1347.48 |
USD/Ton |
0% |
4/22/2019 |
|
Nylon FDY |
2878.40 |
USD/Ton |
0% |
4/22/2019 |
|
40D Spandex |
4742.65 |
USD/Ton |
0% |
4/22/2019 |
|
Nylon POY |
5637.49 |
USD/Ton |
0% |
4/22/2019 |
|
Acrylic Top 3D |
1576.41 |
USD/Ton |
0% |
4/22/2019 |
|
Polyester FDY |
2714.35 |
USD/Ton |
0% |
4/22/2019 |
|
Nylon DTY |
2684.52 |
USD/Ton |
0% |
4/22/2019 |
|
Viscose Long Filament |
1521.23 |
USD/Ton |
0% |
4/22/2019 |
|
Polyester DTY |
3131.94 |
USD/Ton |
-0.94% |
4/22/2019 |
|
30S Spun Rayon Yarn |
2580.12 |
USD/Ton |
0% |
4/22/2019 |
|
32S Polyester Yarn |
2028.30 |
USD/Ton |
-0.37% |
4/22/2019 |
|
45S T/C Yarn |
2893.32 |
USD/Ton |
0% |
4/22/2019 |
|
40S Rayon Yarn |
2833.66 |
USD/Ton |
0% |
4/22/2019 |
|
T/R Yarn 65/35 32S |
2430.98 |
USD/Ton |
0% |
4/22/2019 |
|
45S Polyester Yarn |
2177.44 |
USD/Ton |
0% |
4/22/2019 |
|
T/C Yarn 65/35 32S |
2550.29 |
USD/Ton |
0% |
4/22/2019 |
|
10S Denim Fabric |
1.37 |
USD/Meter |
0% |
4/22/2019 |
|
32S Twill Fabric |
0.83 |
USD/Meter |
0% |
4/22/2019 |
|
40S Combed Poplin |
1.10 |
USD/Meter |
0% |
4/22/2019 |
|
30S Rayon Fabric |
0.64 |
USD/Meter |
0% |
4/22/2019 |
|
45S T/C Fabric |
0.71 |
USD/Meter |
0% |
4/22/2019 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14914 USD dtd. 22/04/2019). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
US Senators John Cornyn and Mark Warner, co-chairs of the Senate India Caucus, recently sent a letter to United States Trade Representative (USTR) Robert Lighthizer urging him to consider delaying the issuance of a proclamation to withdraw India’s generalised system of preferences (GSP) benefits and to maintain an open dialogue with New Delhi. “While we agree that there are a number of market access issues that can and should be addressed, we do remain concerned that the withdrawal of duty concessions will make Indian exports of eligible products to the United States costlier, as the importer of those products will have to pay a ‘Most Favored Nation’ (MFN), duty which is higher than the rate under GSP. Some of these costs will likely be passed on to American consumers,” the Senators wrote. “We believe that allowing for continued negotiations beyond the elections would underscore the importance of this bilateral relationship and provide a real opportunity to resolve these market access issues, potentially improving the overall U.S.-India relationship for years to come,” a statement from Senator Cornyn citing the letter said. Expressing concern over the plan to terminate India's GSP status, 25 US trade associations sent a letter a few days back to the USTR, urging it to extend talks to reach a mutually agreeable solution. They fear the step in the middle of the Indian elections will not achieve its intended goal of applying pressure for reform. (DS)
Source: Fibre2fashion
The Ministry of Commerce (MOC) is drafting new trade laws to safeguard local producers while promoting exports of domestically-produced goods, Minister of Commerce U Than Myint said. Due to the lack of investments and technology, Myanmar producers face stiff competition from their regional peers, who are able to manufacture at faster speeds and lower costs and produce higher quality goods. As such, the legislation, drafted in collaboration with the World Bank and German development agency GIZ, will include a new Safeguard Law on Increased Import and Antidumping and Countervailing Law. The laws aim to safeguard domestic manufacturers from cheap imports and support demand for locally-made products. At the same time, the government is also raising efforts to promote economic growth through exports by adding new priority sectors to its National Export Strategy (NES). Gems and jewellery, the digital economy, fruits and vegetables, agricultural product-based food products and industrial art products have been added to the NES 2020-2025, which replaces the first NES 2014-2019, according to the MOC. Notably, the new sectors appear to involve higher value-add and selected across a wider spectrum of industries compared to the current NES, which prioritises raw commodities including rice, pulses, oilseed crops, marine products, textile and garments and wood and wood products. In an exclusive interview with The Myanmar Times last month, Arancha Gonzalez, executive director of the International Trade Centre, said Myanmar has the potential to become a value-add exporter of goods. She added though, that the country’s current situation is very weak, contrary to its real potential. The main thing to do is to help support local small and medium enterprises and to keep abreast with international demand trends. The government’s policies, rules and regulations, financial support systems and other practices have to be realistic and aligned with the economy’s needs. Three things need to be improved when it comes to Myanmar’s exports - value-addition, expertise and innovation, Ms Gonzalez said. In the first six months of this financial year, the country’s export earnings totaled some US$8 billion, which is up by more than US$650 million from the same period last year, buoyed by overseas demand for locally produced garments and despite lower exports of rice, beans and pulses. Meanwhile, spending on imports rose to US$8.9 billion during the same period, resulting in a trade deficit of more than US$100 million, according to data from the MOC.
Source: Myanmar Times
Known as one of the biggest textile exporters in the world, Pakistan plans to further expand its markets , not only to European countries and the United States but also to other Asian countries, including Indonesia. The South Asian emerging economy organized its second Textile Expo (TExpo) in Lahore from April 11 to 14 by inviting hundreds businesspeople and foreign delegates from nearly 50 countries to support the market expansion plan. Through the exhibition, Pakistan expected to be able to expand its exports to new markets, including Asian countries, mainly Japan and Indonesia. At present, Pakistan exports most of its textile and garments to European countries and the US. "We want to showcase our products to the world, since the textile industry is important for us at least in the next 15 years," the adviser to the prime minister on commerce, textiles, industry, production and investment, Abdul Razak Dawood, told The Jakarta Poston the sidelines of the event. The textile industry, which serves as the backbone of the country's economy, is one the government’s top priorities in its industrial development program. Several policy packages were introduced in the last decade, including the use of the latest technology, which had paved the way for Pakistani products to penetrate further into the global market. As the world's fourth-largest cotton producer, Pakistan has the potential to become a leading nation in the textile business, although such potential has yet to be optimally explored, the minister said. "When we can improve our agriculture to improve the [cotton] productivity, then we have a very big competitive advantage to the rest of the world," he said. Pakistan is the eighth-largest exporter of textile commodities in Asia, with exports having grown to $13.85 billion in 2017-2018. The country is reportedly aiming to raise the figure to $26 billion by the end of 2019. It contributes 9 percent to Pakistan's gross domestic product. Involving 15 million Pakistani people, the industry caters to 9 percent of total global textile needs. By expanding exports to non-traditional markets, including Indonesia, the country is hoping to increase the figure and eventually improve its economy amid fears of economic slowdown. According to a recent International Monetary Fund (IMF) report, Pakistan may struggle to improve its GDP growth in 2019. "Historically, our major market has been the US and European countries. We have always focused on the West and now we're moving to the East, including China, Japan and Indonesia," he said. Pakistani textile products are considered to be of better quality compared to products from other countries. Many of the country's diaspora are also known for their involvement in running textile businesses in their respective countries. "Pakistani textile products are not the cheapest in the market, but their quality and supply have been very reliable," Thomás Velechopsky, a managing director of a textile company in the Czech Republic, said, at the exhibition. His company spent around $4 million to import textile products from Pakistan annually, which is 25 percent of its total purchase. Mufti Hamka Hasan, Indonesia's Chamber of Commerce and Industry vice chairman for Middle Eastern countries, said while Pakistan and Indonesia were generally competitors in the global textile industry, cooperation in the sector could be strengthened as many authentic products from both nations could be received in the respective countries. "We can complement each other. Our flagship product is batik and they don't have the raw material, while we can also produce their Muslim attire. That's an example of how we can exchange our textile products," he said
Source: Jakarta Post
Special Advisor to the Prime Minister on Commerce and Textiles Abdul Razzak Dawood revealed during the relevant National Assembly Committee's meeting that China has agreed to allow market access to Pakistani exports on the pattern of Association of Southeast Asian Nations (ASEAN) countries. This, he clarified, implies duty-free access on 313 items which currently account for a total of 64 billion dollar Chinese imports annually (with Pakistan previously allowed to export only one billion dollars per annum). If Pakistan can export 5 percent of total Chinese imports of these products then, Dawood projected optimistically, our exports to China would exceed 3.3 billion dollars. An exclusive Business Recorder news item maintains that China has agreed to liberalize 75 percent tariff lines and 90 percent trade value of China in the second phase of the Free Trade Agreement (FTA). While critics maintain that success in negotiating with China may be sourced to China's commitment to China Pakistan Economic Corridor yet one would have to appreciate efforts of Razzak Dawood to secure the deal with China. ASEAN Free Trade Agreement (AFTA) comprising six original member countries (increasing to the current 10 countries) requires goods originating within ASEAN members to apply a common effective preferential tariff scheme from between 0 to 5 percent with following exceptions: (i) temporary exclusions; (ii) sensitive agricultural products; and (iii) general exceptions. Unlike the European Union, however, AFTA does not apply a common external tariff on imported goods. China is not an ASEAN member country but is a signatory to the free trade area, an agreement effective since 1 January 2010, with ASEAN countries accounting for a decline in the average tariff on Chinese goods sold in ASEAN countries from 12.8 percent to 0.6 percent (with latter member countries given a deferral for full implementation) and a decline in tariff of ASEAN products sold in China from 9.8 percent to 0.1 percent. Other countries with which ASEAN members have completed free trade agreements are Japan, South Korea, India, Australia and New Zealand. One would hope that Dawood would initiate discussions with ASEAN member countries for such a free trade agreement. Dawood acknowledged that the United States is not willing to allow Pakistani products duty-free access, a stance taken by President Donald Trump in trade relations with the rest of world, though he added that the US does give duty-free access to Bangladesh and Vietnam. There is no doubt that raising exports is the most desired form of earning foreign exchange. To-date remittances have played a very significant role in meeting the widening current account deficit, however, the inflow of remittances are dependent on factors external to Pakistan and hence are not a reliable source of foreign exchange earnings. A slowdown in the economy of those countries where the bulk of our remittances are sourced or indeed due to their changing geopolitical considerations remittances may decline overnight. Hence the way forward has to be through negotiating bilateral trade agreements, free or preferential, or agreements with trading blocs. Pakistan is a signatory to FTAs with China, Sri Lanka and Malaysia and Preferential Trade Agreements with Iran, Indonesia and Mauritius (with little growth in our exports to Iran, Mauritius and Sri Lanka). In June 2016, Pakistan's trade balance deteriorated with these countries - a trend attributed by a study to 'ineffective, ill-planned negotiations' by the Ministry of Commerce with trading partners in the region. One would hope that negotiations with other countries proceed as well as with China.
Source: Business Recorder
Pakistan’s textiles secretary Syed Iftikhar Hussain Babaron recently launched the 3rd phase of the Stitching Machine Operator Training (SMOT) programme at the Pakistan Hosiery Manufacturers & Exporters Association’s (PHMA) Institute of Knitwear Technology in Karachi. Rupees 33 million has been allocated for this phase, which will train 1,800 unskilled workers. Under this two-month program, workers will be trained through the PHMA institutes in Karachi and Lahore, institutes of the Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) and through some industrial units in Punjab, according to Pakistani media reports. Underprivileged candidates will receive a stipend of Rs 5,000 per month. Babaron said this phase is a follow up of the textiles ministry’s initiative taken up in June 2006 to provide textileindustry workforce with value-added skills, according to PHMA. Under SMOT-I and SMOT-II programs, 8,500 workers were trained from 2006 to 2011.
Source: Fibre2Fashion
