A delegation of the members of Confederation of All India Traders (CAIT) met the Minister of Textiles, Women and Child Development, Smriti Irani and gave her a memorandum of problems related to the textile trade in the country. In the memorandum, the issues related to import of textile trade and problems relating to GST and upgradation of textile trade in the country and exploring new possibilities for better growth of textile trade have been raised. Speaking to the delegation, Irani said that she is eager to upgrade the textile business and industry in the country with the help of business class. "It is necessary that the country's textile business equals other countries of the world", she added. Under Prime Minister Modi's digital India program, connecting the textile business with digital technology is also in her priority. She said that the way of doing business across the globe is changing rapidly and in this context the Indian traders also need to bring changes in their business and the government is ready to cooperate with the traders. In this context, the CAIT proposed to hold a national conference of all the major textile trading organizations of the country in Delhi and invited Irani to the Conference which she agreed. The Conference will deliberate on issues related to textile trade and their solutions thereof and to understand the policies of the Government for easy compliance. In addition, Irani expressed her desire that merchant organizations across the country given their outreach should also engaged in the work of women and child development and can play a major role in economic as well as social changes in the Country.
Source: Money Control
The Modi government’s second term in office has begun with the country’s foreign trade policy facing multiple challenges. The day the government took office, President Donald Trump announced his decision to withdraw the benefits of Generalised System of Preferences (GSP), effective from June 5. The US administration has also questioned India’s subsidies to both industry and agriculture. Several other countries, including Brazil, Australia have also challenged India’s agricultural subsidies, they argue, are inconsistent with the WTO’s Agreement on Agriculture (AoA). At the same forum, the European Union (EU) and Japan have questioned the government’s decision to increase tariffs on mobile phones. Finally, India is also under considerable pressure to undertake extensive trade liberalisation via the Regional Comprehensive Economic Partnership (RCEP). This regional trade agreement seeks across-the-board tariff elimination, including agriculture, which is among India’s most sensitive sectors. China’s presence among the 16 RCEP participating countries has left India’s manufacturing industry worried. The US’s removal of India from its GSP-beneficiary list was not unexpected. In early March, President Trump notified to the Congress his decision to remove India from the list of countries, which enjoy duty-free access to the US market in 3,700 products. President Trump has often argued that US’s trade deficit with India must be reduced by “curbing” India’s “unfair trading practices”. Withdrawal of GSP benefits is, therefore, one further step taken by the US to whittle down India’s trade surplus with the US; the first was the increase in tariffs on steel and aluminium in 2018. The challenge for the new government is to prepare an effective strategy to deal with a resolute US trying to pry open India’s market. The US could target sectors with high tariffs; a few in the manufacturing sector and agriculture and allied sectors. During the consultations after India was put on notice in March 2019, the US had demanded that India allow imports of agriculture, milk, and poultry products. It is difficult to perceive how India can relent, given its domestic compulsions.
Retaliatory tariffs
The first response from the new government has already been announced; retaliatory tariffs on 29 products. This list was drawn up after the US imposed tariffs on steel and aluminium. India’s expectation was that it was providing room for dialogue by not retaliating. This gesture has clearly not worked, as the Trump administration has relentlessly pressured India, by removing India from its GSP-list, among others. It was, therefore, necessary for India to respond appropriately. India has now put its cards on the table with which it can now negotiate with the US. The challenges that India faces in the WTO are more formidable since the issues that have been raised could affect several sectors, not the least, agriculture. At stake are three issues: export subsidies for non-agricultural products, agricultural subsidies, and India’s recent tariff increases for mobile phones. In 2018, the US complained to WTO’s Dispute Settlement Body (DSB) against India’s major export subsidies, namely, Merchandise Exports from India Scheme (MEIS), Export Oriented Units Scheme and support extended to Special Economic Zones. India could use these subsidies so long as its per capita GNP was below $1,000. With India’s GNP having exceeded this threshold, export subsidies came under the scanner. The initial response of the government on the issue of export subsidies is forward looking. The new Commerce and Industry minister gave an unambiguous message in his first meeting of the Board of Trade on June 6, that industry would have to think beyond subsidies and to seek ways of improving efficiency.
Farm subsidies
Several countries have targeted India’s agriculture subsidies. They argued that these subsidies are well above the limit set by the AoA, which is 10 per cent of the value of production for every product. The US has questioned subsidies provided to rice and wheat, while Brazil, Australia and Guatemala have gone a step further and have initiated disputes against India’s sugarcane subsidies. Three more countries, Thailand, Costa Rica and the Russian Federation have joined the dispute as third parties. The complainants argue that India has substantially increased production-related subsidies for sugarcane provided by both the Central and State governments and, as a result, the country has breached its commitment to limit sugarcane subsidies. The complainants also argue that the Central and State governments provide subsidies for exporting sugar, which it cannot under the AoA rules, since these subsidies were notified to the WTO. Thus, the politically sensitive sugarcane faces testing times. In his 2018-19 Budget Speech, the then Finance Minister announced the government’s decision to increase import tariffs on mobile phones to encourage domestic manufacturing. The EU and Japan have challenged this decision, complaining to the DSB that India had agreed not to impose tariffs on these products. Six other countries, Thailand, Canada, China, Chinese Taipei, the US and Singapore, have joined the dispute as third parties. The disputes challenge the government’s policy to use import tariffs to not only provide protection to the domestic producers from import competition, but to also indirectly incentivise domestic production. The most significant of the challenges awaiting the government is the future course of RCEP negotiations. The negotiations were on hold for the past few months as the governments in two of the largest economies, India and Indonesia, were seeking fresh mandates from their electorates. Countries driving the RCEP negotiations have been seeking deep cuts in import tariffs in almost all sectors. While this is the most immediate challenge from the RCEP, inclusion of areas like e-commerce and investment could bring commitments that conflict with the policies of the government. For instance, India has firmly stated its position on data localisation, which several RPCs (RCEP participating countries) do not support. Also, India has its model investment protection law that is different from the one that is backed by RPCs. After nearly three decades of its tryst with globalisation, India’s trade policy faces formidable challenges. Most of the challenges stem from structural infirmities in the domestic economy, which require a medium-term perspective. The government must recognise that it has obtained the political mandate to develop such a perspective. The writer is Professor at the Centre for Economic Studies and Planning, JNU, New Delhi
Source: The Hindu Business Line
With the US-China trade war intensifying, India is keen to increase its market share in both countries and has carried out a detailed analysis identifying items where there is potential to increase exports. In a recent study, the Commerce Ministry has identified 203 products where exports could be increased to the US, replacing Chinese goods, and 151 items where exports to China could rise. “The list of items where exports from India can be increased to the US and Chinese markets will be shared with the respective line Ministries and Departments and industry organisations so that sectoral plans can be made. India will also bilaterally seek more access for these products from the US and the Chinese governments by asking them to remove non-tariff barriers wherever they exist,” a government official told BusinessLine. Per the analysis, there are at least 203 lines where India has the potential to replace Chinese exports to the US as it already has market access for these items and is a competitor of China. Since the US has increased tariffs for China on these items, it would be easy for India to increase exports. These items include electrical machinery and equipment and base metals and articles. US imports from China of these items are worth $30.6 billion, while India’s exports to the US are only worth $2.4 billion. The fact that India has the capability of increasing exports to the US is evident from the fact that India’s total exports of these items to the world are worth $22.2 billion. A number of agricultural items and chemicals, too, have the potential for greater export to the US. In the case of China, where different levels of retaliatory tariffs have been imposed on US goods, the Commerce Ministry has carried out a commodity-wise analysis. “The specific lines in which India can potentially expand exports to China immediately and also those in which concerted efforts need to be made to acquire market access have been identified,” the official said.
The outright advantage
Of the items on which 25 per cent duty has been levied by China on the US, India has the outright advantage to displace US exports to China in 47 lines as it is a strong exporter of these items, according to the analysis. These include some chemicals, granite, inverters, copper ore and concentrates. Of the items on which China has imposed 10 per cent duty on the US, there are 29 lines in which India is a strong exporter and can displace the US. The top lines include chemicals, equipment for transmission of voice/data in a wired network and tubes and pipes and hoses of vulcanised rubber. Of the items imported from the US on which China has imposed retaliatory tariffs of 5 per cent, India can displace US exports for 25 lines, including engines, diesel, x-ray tubes and some antibiotics.
Source : State Times
As per ITC Trade Map UN Comtrade, crude oil import increased from 148 million tonnes in 2009 to 225.5 million tonnes in 2018, rising at 4.8% per annum. India and Iran have been important trading partners. With the US imposing sanctions on Iran, and pressure on other economies to cooperate, India has perhaps entered into a cobweb. The sanctions are likely to put pressure on her trade deficit. While importing oil from Iran, India has the advantage in being able to pay partially in rupees, and partially settled with food and pharma exports. Secondly, for four months, global crude oil price has been on a surge, by almost $18 per barrel. This may exacerbate our CAD and domestic market prices, if not cushioned adequately. Thirdly, Iran oil is relatively cheaper, but US officials have assured its adequate supply from Saudi Arabia, the UAE and the US to avoid shortages, if any, after the sanctions. Iran is India’s third-largest oil supplier. It is beneficial for India to import oil from Iran as it includes free shipping and insurance, besides payment in domestic currency, which others are unlikely to offer. Oil imports surged from $4.6 billion to $11.7 billion during 2015-16 to 2018-19 (April-February). As per ITC Trade Map UN Comtrade, crude oil import increased from 148 million tonnes in 2009 to 225.5 million tonnes in 2018, rising at 4.8% per annum. If India restricts oil imports from Iran, it may hurt agricultural exports. During 2018-19, the export of basmati rice to Iran was worth $1.35 billion, which will have to be sold to others. It may adversely affect domestic prices, hence farmers’ incomes. Also, the time required to cultivate basmati rice is much longer than that needed to grow non-basmati varieties, which is likely to make it expensive for farmers in terms of opportunity costs foregone. Like basmati, tea exports worth $130 million will also be under threat due to sanctions. Earlier, when the US put sanctions on Iran, India did not stop trading. Britain, France and Germany had issued a joint statement to maintain economic ties with Iran despite the threat of American retribution. Now, Iran is aware that the EU, Russia, China and India are its allies, but will not be vocal in support due to scepticism about the nuclear programme. These economies may also feel they cannot do much to protect Iran’s economic interests without risking their own business. It appears the sympathy these countries have for Iran on political grounds is not enough to outweigh their own economic interests. This may add to Iran’s frustration as its economy has shrunk by 6% this year, after having contracted 3.9% last year. A preferential trade agreement (PTA) with Iran would act as a catalyst for India. Initiated in 2016, India will discuss the fifth phase of negotiations with Iran. The PTA will be distinct from the existing one due to the scope of reducing tariff rates by 25-45%. Since Iran is not a WTO member, there is no obligation to keep tariffs in accordance with the specified bound rates, and bilateral trade flows will benefit both. India’s total value of trade with Iran is estimated at $18 billion (2018). The export basket consists of rice (46.4%), tea (4.4%), soybean oil cake (4.3%), carbon electrodes used for electrical appliances (3.3%), extracted oil essence (3%), uncoated paper and paper board (1.8%), and medicaments (1.4%). In contrast, key imports worth $12.85 billion include 88% crude oil, with the remaining share comprising of chemicals (organic and inorganic chemicals) and fertilisers. Iran offers 10% import tariff or less on only 37.2% tariff lines, whereas still 17% of tariff lines are under 50% tariff and above. Major products of India’s interest facing high tariffs are basmati (45%), black fermented tea (30%), motorcycles (65%), textiles (65%), glass microspheres (45%), new pneumatic rubber tyres (30%), filament yarn of polyester (40%) and woven fabrics (70%). A germane design of truncating tariffs through normal track under the prospective PTA will help India increase exports. Another reason for favouring PTA is the Trade Intensity Index (TII) with Iran, which has remained more than one and increased from 3.4 to 4.13 during the last three years. It signals Iran to be a vital trading partner compared to China and Turkey where the TII has plummeted. In January 2014, Iran entered into an agreement with Turkey. Under this, Turkey granted concessions to Iran on 140 agricultural products, while the latter reciprocated the same on 125 industrial products. Entering into such an arrangement would be mutually beneficial for India and Iran. From the above, it might appear that India has been caught, where choosing one possible scenario will create a bad taste for another. However, India can be diplomatic with the US in pursuing trade relations with Iran. Consultant, Trade Promotion Council of India, and Professor, Centre for the Study of Regional Development, JNU, Delhi
Source: Financial Express
The ongoing trade war between the US and China offers an opportunity to India for boosting exports of as many 350 products such as chemicals and granite to these countries, a study by the Commerce Ministry has said. The identification of these products is part of a study carried out by the ministry which states that the ongoing tariff or customs duties war between the US and China proves a big window of opportunity for enhancing India’s exports to these two nations. Both the US and China are imposing heavy import duties on each other’s products, which has triggered a trade war kind of situation. According to the study, as much 151 domestic products including diesel, X-ray tubes and certain chemicals have an outright advantage to displace the US exports to China. Similarly, 203 Indian goods like rubber and graphite electrodes have the advantage to displace Chinese exports to the US. Also read: Boost for fight against black money: Swiss authorities to share details of at least 50 Indians holding illicit wealth It said that the specific products in which India can potentially expand exports to China immediately based on its strengths and available market access in the neighbouring country and also those in which concerted efforts need to be made to acquire market access are being shared with the line ministries. The ongoing trade war may bring about a shift in the global trading patterns due to spillover effects and displacement of the bilaterally traded communities to other countries, it said. The Indian products which can tap the Chinese market include copper ores, rubber, paper/paperboard, equipment for transmission voice/data in a wired network, tunes and pipes. Similarly, domestic goods which can grab exports opportunities in the US market include industrial valves, vulcanised rubber, carbon or graphite electrodes and natural honey. Increasing exports would help India narrow the widening trade deficit with China, which stood at USD 50.12 billion during April-February 2018-19. Federation of Indian Export Organisations (FIEO) President Ganesh Kumar Gupta said that the trade war between the US and China is benefitting India. He has said that India’s exports to the US went up by 11.2 per cent in 2018 and to China by 31.4 per cent in the same year. Echoing the views, Ludhiana-based exporter and former FIEO president S C Ralhan said enormous opportunities are there in the engineering and machinery sector in both the countries and “we have to tap that”.
Source: Financial Express
When Donald Trump bemoaned that a weakening yuan had nullified some of the punitive effect of his tariffs on China, he was highlighting, unwittingly perhaps, a crucial flaw in his foreign policy tool of choice: In an era of freefloating exchange rates, currencies adjust so quickly they can offset the intended impact of higher levies before they even take hold. It’s an inconvenient truth for the US in its escalating trade war with the world’s only other economic superpower, and one that could complicate the president’s efforts to use tariffs as way to pressure America’s major trading partners into making concessions. After Trump raised tariffs on $200 billion of Chinese imports last month, the yuan quickly fell toward 7 per dollar -- a level not seen since the financial crisis. The drop effectively reduced the price of Chinese imports in dollars and has blunted the cost shock of higher tariffs. (The same thing happened with the peso following a similar threat against Mexico in late May; the peso plunged over 2 per cent in less than an hour.) So for all of Trump’s tough talk about punishing China for what he considers unfair trade practices, Americans might not see any meaningful markups on Chinese-made goods. “It illustrates the difficulty of trying to use tariffs to reduce your trade deficit in a global world,” said Brad Setser, senior fellow at the Council on Foreign Relations and a former Treasury official. In some ways, Trump’s use of tariffs hearkens back to a very different era, when countries used fixed-exchange rates under the Bretton Woods agreement, which lasted from the mid-1940s to the early 1970s. Of course, the yuan “floats” far less than most major currencies in global FX markets because of limits imposed by the People’s Bank of China. But based on calculations by Robin Brooks, chief economist of the Institute of International Finance and former head of FX strategy at Goldman Sachs, its decline from 6.4 to 6.9 per dollar since last summer “roughly offset’’ the impact of the first two rounds of US tariffs, which were first announced in June 2018. These foreign-exchange adjustments are one of many reasons that economists generally take a dim view of tariffs. Not only do they trigger retaliatory tit-for-tat disputes that undermine business confidence and economic growth, but the costs that aren’t offset in the currency market are borne primarily by the consumers in the countries that impose them. And while Trump has asserted the US is “getting a lot of money from China’’ because of the tariffs, the reality is less clear. US companies that import goods from China can either absorb the additional cost and pay the government an extra 25 per cent, or pass it onto consumers by raising prices. (This doesn’t take into account FX adjustments that may lessen the actual impact of the levies.) “The cost of the US tariffs has fallen squarely on the US,” Vicky Redwood and Simon MacAdam of Capital Economics, wrote in a note this month. Foreign exchange has emerged as a focal point in trade talks. On Friday, Trump once again asserted that China is manipulating its currency. The administration proposed taxing goods from countries with undervalued currencies last month -- a proposal that was said to alarm even its own Treasury Department officials. The US has also sought a yuan stability pact as part of an eventual deal, according to people familiar with the matter. For the time being, China seems to be exercising restraint after Trump threatened to impose more tariffs on $300 billion of Chinese imports this week, and keeping the yuan from depreciating even faster. Brooks estimates that fair value for the yuan is close to 7.3 per dollar, versus 6.93 now. And while the PBOC has routinely stepped in to support the yuan whenever it inched toward 7 per dollar in the past, there are now signs that stance could change if trade tensions worsen. In a rare interview with Bloomberg News this month, Yi Gang, the PBOC’s governor, signaled a new willingness to let the markets dictate the yuan’s value. “A little bit of flexibility of renminbi is good for the Chinese economy and for the global economy, because it provides an automatic stabilizer,’’ he said. Of course, letting the yuan fall as much as the market sees fit isn’t without its own risks. The currency’s devaluation in 2015 caused billions of dollars of capital to flee China and forced the central bank to burn through its foreign-exchange reserves, which stand $3.1 trillion, to stem the outflow. What’s more, a weaker currency would reduce the purchasing power of Chinese consumers. Nevertheless, Trump’s trade war might just force China’s hand. “He is relying on China not to respond to his tariffs with a weaker currency,” Setser said. “But it’s clearly China’s decision, not Trump’s.”
Source: The Economic Times
To assist the artisans and member exporters of handmade carpets and other floor coverings from J&K, the Regional Office of Carpet Export Promotion Council (CEPC) has started functioning from IICT Campus, Baghi Ali Mardan Khan, Nowshera, Srinagar. The office was formally inaugurated by Smriti Zubin Irani, Union Minister of Textiles, Women & Child Development in the presence of Shantmanu, Development Commissioner (Handicraft) on February 23, this year. The ministry of textiles through the office of the Development Commissioner Handicrafts has been instrumental in the opening of this office for which full-time staff has been nearly hired. Mahavir Pratap Sharma, Chairman, CEPC said the regional office of CEPC at Srinagar will implement all schemes required to upgrade the infrastructure for the handmade carpet industry, in addition to providing all necessary assistance to the member exporters and artisans of the region. Sanjay Kumar, Executive Director of CEPC said the newly hired staff led by Ashiq Hussain and fully operational CEPC office will be quite helpful for the overall growth of the Handmade Carpet industry of the J&K Region.
Source: State Times
Trade issues may be taken up during US Secretary of State’s talks with S Jaishankar next week and at the G20 summit. India is bracing for pressure from the US to sign a bilateral trade pact with it after New Delhi slapped retaliatory tariffs on some American products. India-US trade relations came under stress in the last fortnight with Washington ending preferential benefits for Indian exports worth $6.35 billion and New Delhi raising tariffs on 28 American products on Sunday — a year after announcing the levy. “We anticipate the US to ask us to sign some kind of a trade pact and we should be prepared for that. This is not a trade war,” said an official aware of the development. The issue could be taken up when US secretary of state Mike Pompeo visits India for talks with his counterpart S Jaishankar early next week, followed by meetings between US President Donald Trump and Prime Minister Narendra Modi at G20 summit on June 28-29 in Osaka. Pompeo said on Thursday that the US was open to discussions on the Generalized System of Preferences (GSP). “They might want to extract concessions on intellectual property rights (IPR) and e-commerce,” the official said. Through its Special 301 report, the US has tried to push India to drop Section 3 (d) in the Indian Patents Act that denies patents on items that are not significantly different from their older versions. The US is also opposed to compulsory licences to be issued for manufactured copies of patented drugs to address situations of national emergency, as permitted by the global trade rules. India prohibits ecommerce companies with foreign direct investment (FDI) from selling products via firms in which they have an equity interest. It also bars them from making products via firms in which they have an equity interest. It also bars them from making deals with sellers to sell exclusively on their platforms. The policy change of December 2018 had a direct bearing on Amazon and Walmartowned Flipkart. Washington has also flagged its concerns on India’s draft ecommerce policy on data localisation requirements, restrictions on cross-border data flows, transfer of intellectual property and proprietary source code, and preferential treatment for domestic digital products. PAST INTEREST, EXPERTS WARY Experts said the time is not right for India to get into a bilateral agreement with the US. “This is the normal path of trade talks and not a trade war. The US had previously approached India for a trade agreement to be able to squeeze concessions from us,” said a Delhi-based expert on trade issues. The US was keen on a free trade agreement (FTA) with India and US envoy Kenneth Juster had called for an eventual FTA between the world’s two largest democracies early last year. Earlier in 2005, there was pressure on India to seal a trade deal after the two nations signed the Civil Nuclear Agreement. The current US administration has favoured bilateral engagements, instead of multilateral or regional agreements. “Our red lines should be clear and that is (there will be) no rollback of the RBI’s data localisation norms, proposed ecommerce policy and tariffs on agricultural products,” said another Delhi-based expert. “The US wants a trade agreement and it will be comprehensive. They could also put more pressure on us in WTO. Their insistence on reducing the trade deficit is posturing before the elections and India should be cautious of any such pact,” said Biswajit Dhar, professor at the Centre for Economic Studies and Planning in the School of Social Sciences at Jawaharlal Nehru University. India’s exports to the US amounted to $52.4 billion in FY19, while imports were worth $35.5 billion. “While a lot depends on what we get in return, one must know that the US is in no position to promise and deliver anything of benefit to India such as easier visa rules because of the elections next year. The time is not right for a bilateral pact,” the first expert said.
Source: Economic Times
Members of Erode Vhisaithari Urimayalargal Sangam (Erode Power Loom Owners Association) has urged the Centre not to impose any import duty on man-made fibre (MMF) viscose yarn as it will affect the sector. In a letter to Minister of Textiles Smriti Irani, the association said that the power loom industry in the region was producing cotton and rayon fabrics and they were sold to markets in New Delhi, Faridabad, Mumbai, Jaipur, Ahmadabad and Surat for making garments for women. These manufacturing units were spread across Erode, Coimbatore, Tiruppur, Salem and Namakkal districts providing employment to four lakh. The letter said that due to frequent increase in the price of yarn in the domestic market, power loom units started importing rayon and modal yarn from China, Vietnam and Indonesia which was cheaper by ₹15 to ₹20 per kg when compared to the price in the country. Hence, more units started importing the yarn forcing the spinning mills in the domestic market to reduce price. The letter said that they learnt from reliable sources that the ministry was planning to increase the import duty for the MMF yarns or go for complete ban. “Any such move will affect the power loom industry completely,” the letter added.
Source: The Hindu
Warehousing space leasing in India rose by over 45 per cent in 2018 to cross the 25 million sq ft mark in seven cities, according to property consultant CBRE, which recently released its report 'Online retail driving realty—Elevating the e-commerce game'. The increase was driven by the e-commerce sector that accounted for 23 per cent of the total demand. The seven cities are Delhi National Capital Region, Mumbai, Chennai, Kolkata, Hyderabad, Pune and Bengaluru. The demand for better-quality space resulted in rents rising by 10-25 per cent last year. The report examines the link between e-tailing and the logistics sector and the impact of goods and services tax (GST) on the leasing of warehousing spaces. "The impressive growth of the e-commerce sector has been on the back of favourable policy reforms, tech-enhanced warehouses, rising smartphone and internet penetration, digital India movement, amongst others," the report said. The growth in e-commerce sector has led to increase in its share in overall warehousing leasing from 10 per cent in 2017 to 23 per cent in 2018, CBRE said. "The sector (warehousing and logistic space) has seen unprecedented growth and we expect supply to touch almost 60 million sq ft by the end of 2020," said Anshuman Magazine, CBRE’s chairman and chief executive officer, India, South East Asia, Middle East and Africa. CBRE said that the increased demand would also pave way for opportunities such as asset enhancements and redevelopments. Many grade B warehouses located close to cities will undergo redevelopments as per occupier specifications, the report added.
Source: Fibre2Fashion
India as a $5 trillion economy by 2024 – that is the vision that Prime Minister Narendra Modi presented before the nation at the NITI Aayog. To achieve this would be hard, he said, but not impossible. He is right. The Indian economy is estimated to have been $2.74 trillion at market exchange rates in 2018-19, leaving aside all controversies over GDP estimates. From there to reach $5 trillion in five years, the economy needs to grow at a compound rate of 12.8% every year. Growth in dollar terms would be a combination of growth in rupee terms and change in the exchange rate. If India achieves real growth in excess of 8%, maintains macroeconomic stability and registers a steady rise in productivity that would allow the rupee to gain against the dollar, the target is achievable. That is in theory. In practice, growing at that pace calls for political courage, to fix the broken school system and expand healthcare. No sustained growth is possible with a dysfunctional power sector. The utilization of installed generation capacity is just over 50%, even as large tracts of the country go without power or run diesel generators to make up for the missing grid supply. Banks notch up non-performing loan numbers from power projects unable to sell power and service their loans. Politicians must find the courage to ask people to pay for the power they consume, end open-ended power subsidies and stop patronizing power theft. Another constraint is repressed urbanization. The cost of land for a hospital, school or new factory complex is prohibitively high, thanks to artificially constrained supply of urban land. Releasing rural land for non-farm uses is bedevilled by absence of a coherent policy for making farmers stakeholders in urban prosperity. Amaravati in Andhra Pradesh seeks to change this. Cropping patterns ill-suited to agro-climatic conditions are endemic, thanks to vested interests and the subsidies they extract. Ending this and removing shackles on farm marketing, call for reconfiguring internal and external trade policy and subsidies. That calls for both boldness and courage.
Source: Economic Times
Dubai-based Landmark Group that owns Lifestyle International is clearly delinking high school segment from younger children. For 13-year-old Raina Pradhan, shopping is an ordeal as she listlessly scans the racks hoping to find something aligned with global youth fashion. What she mostly gets are routine childlike collections, often with cartoon prints. Unable to find hip styles, the tween shops at Forever21, the American fast fashion brand for slightly older people. “Clothes with Disney characters are kiddish. It is hard to find trendy clothes as sizing is either too small or big. So I shop for the smallest size or whatever fits in the adult sections of brands,” Pradhan said. T-shirts featuring Disney characters or bubble-gum coloured eye frames don’t cut it for India’s tweens and high-schoolers; neither kids nor adults. Aged between 9-15 years and practically born with smartphones and social media accounts, they are the new target segment for brands geared towards these young consumers who are beginning to make their own style choices. “Increasing access, double-income households, brand consciousness and independent mindset shift in kids have contributed to the growth of this category. This age bracket has also nudged out hand-me-downs and cheaper export-reject options,” said Vineet Gautam, CEO of Bestseller India, referring to high-schoolers as fashion influencers and opinionmakers of the future. Jack and Jones, a menswear brand by Danish company Bestseller, extended its product portfolio to kidswear division by launching a junior range aimed at boys from 8-15 years. The apparel line comprises scaled-down sized garments of adult designs like slim-fit distressed jeans, mandarin collar and corduroy shirts to sweat pants that mirror mature colour stories. Tweaking merchandise mix, introducing fashion that imitate adult clothing and accessories and having a smaller size within adult range is what several brands like US Polo, Flying Machine, Titan and Lifestyle are doing to woo this demographic segment. “It is an important segment for us and a bridge between children and adults. It is also a starting point in exploring kids as an opportunity,” said J Suresh, chief executive officer of Arvind Fashions that started ‘dress like father’ campaign for US Polo. “For Flying Machine, we introduced an S size that fits young teens,” he added. Retailers are aware of this. Tata Group-owned Titan Company’s optical retail brand Titan Eyeplus is expanding its styles in prescription eyewear range. “The target age has dropped from 18-24 years to 15-year-olds. We have been seeing the shift for last couple of years but manifestation is happening now,” said Shalini Gupta, marketing head for Titan Eyeplus. “High-schoolers across Tier 1, 2 and 3 cities are driven and behaving like adults now. Timelines have collapsed for this selfie-generation who want to be aligned with global trends,” added Gupta. Retail experts also note that a large portion of the kidswear market is unorganised sector, that is gradually shifting towards branded segment helped by rising aspiration, frequent socialising, international travel and children’s fashion on social media. Dubai-based Landmark Group that owns Lifestyle International is clearly delinking highschool segment from younger children. They have recently started stocking dedicated lines from brands such as Bossini and Kappa that offer sized-down versions of adult apparel for children aged between 9-15 years. “With no brands specifically targeting this segment, a highschooler currently remains underserved in the market. By the time children reach this stage, they have their own fashion preference and constantly seek to establish identity,” said Vasanth Kumar, MD of Lifestyle International.
Source: The Economic Times
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1051.09 |
USD/Ton |
0% |
6/16/2019 |
|
VSF |
1624.28 |
USD/Ton |
-0.18% |
6/16/2019 |
|
ASF |
2492.00 |
USD/Ton |
0% |
6/16/2019 |
|
Polyester POY |
1090.07 |
USD/Ton |
0% |
6/16/2019 |
|
Nylon FDY |
2338.96 |
USD/Ton |
-0.61% |
6/16/2019 |
|
40D Spandex |
4360.28 |
USD/Ton |
0% |
6/16/2019 |
|
Nylon POY |
5457.56 |
USD/Ton |
0% |
6/16/2019 |
|
Acrylic Top 3D |
1328.30 |
USD/Ton |
0% |
6/16/2019 |
|
Polyester FDY |
2209.01 |
USD/Ton |
0% |
6/16/2019 |
|
Nylon DTY |
2671.03 |
USD/Ton |
0% |
6/16/2019 |
|
Viscose Long Filament |
1234.45 |
USD/Ton |
0% |
6/16/2019 |
|
Polyester DTY |
2613.28 |
USD/Ton |
0% |
6/16/2019 |
|
30S Spun Rayon Yarn |
2379.38 |
USD/Ton |
0% |
6/16/2019 |
|
32S Polyester Yarn |
1696.47 |
USD/Ton |
0% |
6/16/2019 |
|
45S T/C Yarn |
2656.59 |
USD/Ton |
0% |
6/16/2019 |
|
40S Rayon Yarn |
2685.47 |
USD/Ton |
0% |
6/16/2019 |
|
T/R Yarn 65/35 32S |
2165.70 |
USD/Ton |
0% |
6/16/2019 |
|
45S Polyester Yarn |
1920.25 |
USD/Ton |
0% |
6/16/2019 |
|
T/C Yarn 65/35 32S |
2310.08 |
USD/Ton |
0% |
6/16/2019 |
|
10S Denim Fabric |
1.32 |
USD/Meter |
0% |
6/16/2019 |
|
32S Twill Fabric |
0.76 |
USD/Meter |
0% |
6/16/2019 |
|
40S Combed Poplin |
1.03 |
USD/Meter |
0% |
6/16/2019 |
|
30S Rayon Fabric |
0.61 |
USD/Meter |
0% |
6/16/2019 |
|
45S T/C Fabric |
0.68 |
USD/Meter |
0% |
6/16/2019 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14438 USD dtd. 16/06/2019). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
A master plan submitted to the Department of Trade and Industry (dti) aims to revive the country’s ailing clothing and textile industry. A panel discussion at the 5th Source Africa and Apparel Textile and Footwear expo at the Cape Town International Convention Centre heard how the plan aims to reshape the industry which had shed between 140000 to 160000 jobs in recent years - although job losses had stabilised over the last decade. The exhibition attracted 130 companies from across Africa, from manufacturers, suppliers, service providers and buyers. Simon Eppel, a researcher at the South African Clothing and Textile Workers’ Union, said the “master plan” had been drafted to reshape the clothing and textile industry. Among other issues, it aims to stop the influx of illegal imports. One of the ways this could be done is to limit the ports of entry through which these goods are allowed into the country. Eppel said the intention is to finalise the plan this year. He said clothing sector wages in South Africa are lower than countries such as Brazil and Turkey. Michael Lawrence, executive director of the National Clothing Retail Federation (NCRF), said they have “huge support for local”. He said the 10/11 year target through the master plan is to create 60000 new jobs by 2030. Lawrence said reviving the clothing and textile industry “is not meant to be a race to the bottom, to find the cheapest labour”, but instead, they want to drive an intelligent agenda to consumers, who are increasingly aware of sustainability such as the case regarding single-use plastics. “Consumers use their existing realities to make buying decisions. So sometimes it’s just about price. But consumers can increasingly be allowed to make smart decisions,” said Lawrence. Deputy Minister of dti, Noma- lungelo Gina, said Source Africa aims to boost regional investment to ensure sustainable job creation in the sector. “The South African textiles and clothing sectors constitute an important sector of our economy,” she said. In mid-March, executives at Brimstone, owners of clothing manufacturer House of Monatic, said it could face closure if a “right-sizing” process does not improve operations. The factory, based in Salt River, is 100-years-old. Chief operating officer Iqbal Khan said part of the restructuring at House of Monatic involved operating at a lower capacity. Some 140 staff would be impacted by the “right-sizing” as the group was over-staffed, demand for locally produced clothing was slack and production inputs were too high. In April, the provincial government allocated R132million in stimulus funding over the next three years to support manufacturing, including the clothing sector. But it would also support operations outside of the cities across the province. The former MEC for Economic Opportunities, Beverley Schäfer, said “we import too much and we produce too little”. “As a country, our imports of clothing, textiles and leather goods have sky-rocketed from just over R5billion in 2000 to almost R60bn now,” she said. Schäfer said there is a plant to rebuild the industry in the province.
Source: Weekend Argus
Garment manufacturers in Bangladesh on Sunday demanded higher export subsidies from the government, saying proposals in the latest national budget, unveiled last week, were not enough to compensate for higher production costs and low prices. Bangladesh textile industry earns about $30 billion annually by exporting readymade garments, which represents about 16% of the economy and employs over 4 million workers. But last year, the prices of garments fell 7.4% in the United States market and 3.64% in the European market compared to 2012, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). Manufacturers' costs have been rising, mainly driven by labour costs. Last year, for example, there was a big increase in the minimum wage for Bangladesh garment makers. In April, the garment makers asked the government to extend a 5% export subsidy for the industry that was due to end on June 30. The budget proposed an enhanced one-time cash incentive for garment exporters of 5% of the value of goods exported to a new market from 4% currently. It also proposed an additional cash subsidy of 1% of the total value of garments exported. The garment industry is pressing the government to increase the additional incentive to 3% from the proposed 1% before the budget goes to parliament for approval. Finance Minister AHM Mustafa Kamal's budget for the fiscal year of 2019-20 that starts in July has the total expenditure of 5.23 trillion takas ($61.90 billion) and an economic growth target of 8.2% for the year. It has yet to be ratified by the parliament. The Bangladesh Garment Manufacturers and Exporters Association is backing the demand for higher subsidies because of the slump in international prices and increased costs. Rubana Huq, BGMEA president, said a number of factories had had to sell machinery to pay monthly wages and bonuses linked to the end of Ramadan. "We urge the government to look after the sector,” Huq said.
Source: Reuters
The Pakistan Hosiery Manufacturers Association (PHMA) has rejected 17 per cent sales tax on export sectors of textile, leather, carpet, surgical equipment and sports equipment in the 2019-20 budget and expressed serious concern over the withdrawal of zero-rated facility for the five key exports sectors at a time when refund claims of Rs 300 billion are stuck up.The withdrawal of sales tax zero rating for key five sectors, announced in the budget, would adversely impact the country's exports, which already were facing many challenges, PHMA chairman Adil Butt said at a recent meeting. Moreover, the rupee devaluation by more than 30 per cent has failed to raise exports. According to industrialist Abdul Hameed, these five sectors contribute 70 per cent to Pakistani exports and contribute significantly to foreign exchange earnings and providing employment to skilled and unskilled labour force. The participants in the meeting urged the government to facilitate industrialisation, particularly in the agro-based and value-added sectors, to enhance exports, according to Pakistani media reports.
Source: Fibre2fashion
Hungarian Prime Minister Viktor Orban last week pledged to support the Kingdom in the ongoing battle to preserve the Everything-but-arms (EBA) scheme by advocating the Cambodian position to the European Union. Mr Orban made the pledge during Cambodian Prime Minister Hun Sen’s state visit to the central European nation on June 13-14. “Hungary has always stood by and supported Cambodia. We will advocate on behalf of Cambodia to the European Union regarding the EBA,” Mr Orban was quoted as saying in a statement from the Cambodian Ministry of Foreign Affairs and International Cooperation. The EU in February launched a six-month period of intensive monitoring and engagement to analyse whether Cambodia should lose its EBA trade status. The EU and the United States demand that the government restores democracy, human rights, and fundamental freedoms after the main opposition party, CNRP, was dissolved in Nov 2017. A European Commission and European External Action Service delegation wrapped up a visit to the Kingdom on June 10 and issued a statement on June 11 regarding its ongoing review of the Kingdom’s right to access the EBA. In the statement, the EC highlighted concerns regarding the violation and potential violation of political rights, freedom of expression, freedom of association, rights to organise and collective bargaining and dispossession of families caused by economic land concessions. The EC noted that steps toward improving compliance have been taken by the government and it will continue to monitor the situation until mid-August. “Following that date, the EU will produce a report of its findings and conclusions,” it said. “Cambodia will have one month to reply to this report.” Cambodia is the second largest beneficiary of EBA trade preferences, accounting for over 18 percent of all imports coming into the EU market in 2018. Exports from Cambodia to the EU totalled 5.3 billion euro (about $6 billion) in 2018, with over 95 percent eligible for EBA preferences. Clothing and textiles accounted for three-quarters of these exports and were valued at 4 billion euro (about $4.5 billion). Prime Minister Hun Sen thanked Hungary for its support and said he will continue to build the relationship between the two countries, particularly with regards to the economy. “Both countries need to build more cooperation particularly in the economy, trade, and tourism,” he said. Mr Orban said a large number of Hungarian companies are interested in investing in Cambodia, adding that Hungary’s Export-Import Bank is ready to provide financing to these firms. “With the progress of Cambodia’s economy, and through this official visit of Prime Minister Hun Sen, we are ready to help each other,” he added. During Hun Sen’s state visit, Cambodia and Hungary will sign agreements on cooperation and development, as well as on an education exchange programme.
Source : Khmer Times
Denim production in Vietnam has high growth potential and is attracting more and more investors, but green production in the textile and garment industry is essential to protect the environment, experts said at a conference in HCM City on Thursday. Nguyen Thi Tuyet Mai, general secretary of the Vietnam Textile and Apparel Association, said that around 55 to 60 per cent of the demand for materials for jeans production could be satisfied domestically. Both domestic and foreign companies in the denim production sector in Vietnam are investing in advanced manufacturing chains and technologies. Domestic companies are also focusing on being more involved in the design stage and reducing the number of manual laborers. While the denim production sector has formed a complete supply chain within Vietnam’s textile and garment industry and is able to supply materials for domestic production, the number of businesses in this sector is still limited. The sector has growth potential, but currently denim products only account for around 10 to 20 per cent of Vietnam’s textile and garment product exports. Nguyen Dinh Truong, deputy standing chairman of the association, said that considering the trend toward sustainable development, consumers were keen for green production and environmentally friendly products. "Businesses need to have greener operations and save on raw materials," he said. Vietnamese textile and garment businesses had been improving their production methods and were taking part in the global supply chain, he said, adding that this was a good opportunity for foreign companies that want to sell machinery or transfer technology to local denim businesses. Jordi Juani, Asia division director of the Spain-based Jeanologia, said that if production of denim and jeans in Asia continued to grow, it could pose a major threat towards the environment. He urged businesses to raise awareness about sustainability and to deal with industry problems, and follow modern retail trends and customers’ tastes, especially for green goods. Currently, denim products account for around US$80 billion of global industrial good exports. The conference was held on June 13 as part of Denims and jeans Vietnam, an international exhibition on textiles, garment sand machinery held by the association, Denimsandjeans.com and other organisations on June 12-13.
Source: Sggp News
Finished product suppliers will dominate with their presence among more than 1,000 exhibitors from some 25 countries and regions at the Intertextile Shanghai Home Textiles, which is celebrating its 25th anniversary and will be held during August 28 – 31. Solutions for the contract business and whole-home sectors will also be a major attraction at the fair. While Intertextile Shanghai’s product offerings cover all sourcing needs – bed and bath, decorative, upholstery and window treatment fabrics, carpet and rugs, wall and interior decorations, editors, whole-home solutions, design studios and digital printing technology – it is finished products that are seeing the most growth this year. The finished product zone will feature more sourcing options in 2019, including a number of international suppliers including Fossflakes (Denmark), Fujishinkou (Japan), Jaspa Herington (Australia), and Naturtex (Hungary). Fossflakes’ product is composed of 100 per cent extended polyethylene polymers and is therefore naturally hypoallergenic, which makes it a suitable filling material for allergy and asthma sufferers. Fujishinkou, focusing on manufacturing down comforter, partner with farms in Hungary and Poland to use high quality down. Jaspa Herington’s product catalogue covers a large variety of pillows, quilts, protectors, and foam and wool underlays. They also provide products especially designed for allergy sufferers, and therapeutic use. Naturtex specialises in wool, feather and down processing as well as bedding product manufacturing. Its products are made of pure down, pure feather and different functional synthetics. Following its success last edition, the Contract Business 360o concept will feature again this year, with renowned contract upholstery exhibitors, editors and various information sessions, and tours by industry experts. Some of the upholstery fabrics suppliers participating this year include Ateja Tritunggal (Indonesia), Bestex (China), Culp (USA) and SIC Global Textiles (Poland). In addition to the finished product and contract sourcing offerings, the fair’s fringe programme features a number of zones and events related to these areas. This includes an IP licensing seminar for finished products, and a display area with IP products. For contract business, seminars will focus on topics such as textiles for hotel, office and commercial space design. A display area for contract business focusing on the practical utilisation of fabrics in commercial spaces has also been developed in conjunction with a young local designer, Zhou You. Intertextile Shanghai Home Textiles – Autumn Edition is organised by Messe Frankfurt (HK); the Sub-Council of Textile Industry, CCPIT; and the China Home Textile Association (CHTA)
Source: Fibre2Fashion
