India wants to engage with other countries on data, e-commerce and Foreign Direct Investment (FDI) but there has to be reciprocity, Commerce & Industry Minister Piyush Goyal has indicated in a meeting with e-commerce players. Goyal also said that the e-commerce policy, which the government has been working on for some time, will be ready within a year and his Ministry was building the institutional framework for it, an official told Business Line. The meeting, attended by both Indian and foreign e-commerce companies including Amazon, Flipkart, Urbanclap, Make My Trip, Medicabazaar, Yatra, Shopclues, Snapdeal, Grofers, Swiggy and Udaan, on Monday, discussed ways to bring about convergence of interests of e-Commerce platforms and small retailers. “In the meeting the Minister emphasised that India was open to discussing issues related to data, e-commerce and FDI with other countries but whatever it would offer in the area would be on a reciprocal basis,” the official said. India's willingness to show flexibility on e-commerce and data issues is important especially with major trade partners including the US and the EU pushing for it. US Secretary of State Mike Pompeo, who will be in New Delhi this week, is also expected to raise the issue of data localisation and e-commerce rules. On the e-commerce policy, the Minister assured that enough time will be given to all stakeholders to adapt to any changes that may be required. Moreover, all changes will be prospective and nothing will be implemented with retrospective effect. Goyal asked the Department for Promotion of Industry and Internal Trade (DPIIT) to immediately form a committee headed by Additional Secretary in DPIIT, with representatives of Department of Commerce, Ministries of MSME, Consumers Affairs and legal experts as members. The committee will hear grievances and provide necessary clarifications on any issues related to e-commerce. On provisions of the Press Note 2, which has been criticised by several big players including Amazon and Flipkart, Goyal said that it was merely clarificatory and no changes should be expected on these. The clarifications were announced specifically to plug loopholes in the policy that were being exploited by some FDI-funded marketplace players. Goyal also said that the Ministry will look at ways of facilitating sale of India’s handicraft and handlooms through e-commerce platforms. Ministers of State Hardeep Singh Puri and Som Parkash, India’s Ambassador to the WTO J S Deepak, Secretary DPIIT Ramesh Abhishek, Secretary Department of Commerce, Anup Wadhawan and senior officers of both departments also attended the meeting.
Source: The Hindu Business Line
To give micro, small and medium enterprises (MSMEs) a leg up, an RBI panel has recommended establishing a ₹5,000-crore distressed assets fund, setting up a non-profit special purpose vehicle (SPV) to support crowd-funding, and doubling the limit for banks to extend loans without collateral to ₹20 lakh. The expert committee on MSMEs, headed by former SEBI Chairman UK Sinha, has suggested that the distressed asset fund assist units in clusters where a change in the external environment — such as a ban on plastics, or dumping of goods via exports — has led to a large number of MSMEs becoming non-performing. This fund will have to be of significant size to make equity investments that help unlock debt or revive sick units. The committee said the MSME Ministry may consider setting up a non-profit SPV to support crowd sourcing of investments by various agencies, particularly to pave the way for a conducive business ecosystem for MSMEs.
National council
Further, for the convergence of policies and creation of a promotional ecosystem, it has recommended the setting up of a National Council for MSMEs at the apex level under the chairmanship of the Prime Minister, with the ministers for MSME, Commerce & Industry, Textiles, Food Processing, Agriculture, Rural Development, Railways and Surface Transport as members.
All States should have similar councils for MSMEs, it added.
The committee further said that the Small Industries Development Bank of India (SIDBI), as a nodal agency, should ideally play the role of a facilitator to create a platforms wherein various venture capital funds can participate and, in turn, create a multiplier effect to provide equity support to MSMEs. In this regard, the committee recommended the setting up of a government-sponsored fund-of-funds to support venture capital/private equity firms investing in the MSME sector. The committee also recommended that the ‘PSBLoansIn59Minutes’ portal, which now caters only to existing entrepreneurs, be allowed to serve new entrepreneurs, too, including those applying for loans under the Pradhan Mantri Mudra Yojana and Stand-up India. The threshold of the loans should be enhanced to ₹5 crore, it added. Further, the committee said, all credit guarantee schemes — such as the Credit Guarantee Fund Trust for Micro and Small Enterprises and National Credit Guarantee Trust Company — should be subject to RBI regulation and supervision.
Source: The Hindu BusinessLine
The government is set to make it clear that services provided by an office of an organisation in one state to another office in another state will face goods and services tax, or GST. A circular to this effect, endorsed by the GST Council, will be issued soon, a government official told ET. This is in line with the view taken by Karnataka Authority for Advance Rulings (AAR) that in-house functions such as human resources and payrolls, if carried out from a centre in one state for offices in other states, will face GST, for which invoice will have to be issued. The circular will also lay down that emoluments offered to service personnel will have to be included under this, the official said. Companies can claim input tax credit for this, but for certain exempt sectors such as power, healthcare, liquor, and education, it will become a cost as credit of tax charged would not be available, the person said. The circular follows representations from the industry, seeking clarification on taxability of activities performed by an office of an organisation in one state to office of the same organisation in another state, regarded as distinct persons under the GST law and treated as supply of services between distinct persons. The law committee under the GST Council has sought to clarify via the circular the issues dealing with distribution of input tax credit in respect of input services provided by the head office, but attributable to head office or various branch offices, treatment of expenses incurred by the head office on the procurement, distribution and management of common input services, treatment of services provided by head office such as common administration or common IT maintenance to its branch officers and their valuation. The circular, which is in the form of frequently asked questions, will lay down as to how the input tax credit will be distributed between head office and branch officers as also that value of service will be equal to employee cost and establishment cost of supplying that service, said the official cited earlier. Expenses will need to be apportioned using valuation principles laid down under the GST Law and generally accepted accounting principles. Experts said the government needs to treat employee of a company as employee of a single company irrespective of their location. “It would be good if the government also looks at the intent behind the transactions and adopts a pragmatic approach to recognise that an employee is an employee of an organisation as a whole and not of any particular location, hence there may not be need to cross charge the salary costs between head office and branch office transactions,” said Harpreet Singh, partner at KPMG in India. Experts also said the issue of cross charge is leading to a lot of confusion on the ground and avoidable paperwork. “In most cases, it's a revenue neutral exercise except where the output is either exempt or not within GST, where GST charged becomes a cost,” said Pratik Jain, national leader, indirect taxes at PwC. The government should ideally make it optional where input tax is getting blocked in a particular state, Jain said, adding that employee salary should not be included as employee is of an organisation and not of a particular state or branch.
Case file
The ambiguity over whether central administrative services provided by employees located at one location would tantamount to services being provided one location to another under the GST regime has led to litigations. AAR, in a case pertaining to Columbia Asia Hospitals, had said such activities would qualify as a service provided by head office to other locations and hence companies are required to be cross charged and levy GST on the same. The matter has now been admitted in the Karnataka High Court and notice has been issued to the government.
Source: Economic Times
The AAR, Maharashtra, in two recent rulings, said that these companies do not need a separate registration in each state and that a registration where their headquarters are located would be enough. Importers with godowns or those which store goods at customs warehouses in different states got relief from the advance authority of ruling (AAR) under the goods and services tax (GST) regime. The AAR, Maharashtra, in two recent rulings, said that these companies do not need a separate registration in each state and that a registration where their headquarters are located would be enough. These firms can sell products in different states and raise invoices against their head offices, it ruled. Harpreet Singh, partner at KPMG, said in one of the cases, the petitioner — Aarel Import Export —noted it has a head office in Mumbai and is exporter and importer of products such as black matpe, toor whole, pet coke, and agarbatti. The applicant wished to import coke from Indonesia at Paradip port in Odisha. The item would be stored at Customs warehouse at the port. It wished to sell coke to customers in Odisha from the said warehouse but wanted to clear the bill against Mumbai office by paying customs duty, if any, and IGST. The AAR held that no separate registration is required in Odisha. It also held that the place from where the applicant makes a taxable supply of goods shall be his location — Mumbai office in this case. Since the applicant does not have any godown or place of business in Odisha, it can clear goods on the basis of an invoice issued by the Mumbai headquarters. It also stated that the applicant can mention the GSTIN of Mumbai office in the e-way bill and dispatch place as Paradip Port. In the other case, petitioner Gandhar Oil Refinery (India) Ltd said it carries out manufacturing activity from its plants located at Silvassa and Taloja in Maharashtra. The company is engaged in the trading activity of non-coking coal and carrying out businesses from many states. Here also, the AAR held that the applicant need not take separate registration in each state where the goods are imported and stored in godowns.
Source: Business Standard
Financial incentives such as preferential tax rates and the tax holiday provided by Vietnam to lure companies are among measures being considered. India is weighing offering incentives to attract companies moving out of China amid its trade war with the US, a person familiar with the development said. Financial incentives such as preferential tax rates and the tax holiday provided by Vietnam to lure companies are among measures being considered, the person said, asking not to be identified as the discussion is still private. Industries identified for incentives include electronics, consumer appliances , electric vehicles, footwear and toys, according to a trade ministry document seen by Bloomberg. Economies, including Vietnam and Malaysia, have benefited from businesses trying to sidestep tariffs, while India has largely missed out on any investment gains. The trade ministry’s effort is part of a larger plan to cut reliance on imports, while boosting exports, and needs Finance Minister Nirmala Sitharaman’s approval. The trade ministry didn’t immediately respond to an email and a call seeking comment. Other measures include setting up affordable industrial zones across India’s coastline and giving preference to local manufacturers in government procurement as an incentive to win over companies looking for an alternative production base, according to the trade ministry document circulated to stakeholders.The plan will help grow India’s manufacturing base and will aid Prime Minister Narendra Modi’s flagship ‘Make in India’ initiative, which aims to boost manufacturing to 25% of the economy by 2020. Doing that will help India narrow its huge trade deficit with China, its largest commercial partner. A sector-wise analysis by the industry department, which oversees the foreign direct investment policy, shows investments by Chinese companies can flow into smartphones and components manufacturing, consumer appliances, electric vehicles and parts, and daily use items like bed linen and kitchenware, 95% of which are currently imported from China. There is also an effort to step up exports in sectors vacated by the US due to the trade standoff. The government has identified more than 150 items where it feels exporters can increase business with China. Some of these are prepared or preserved potatoes, synthetic staple fibers of polyesters and t-shirts, hydraulic power engines, and supercharger for motors.
Source: Business Standard
Prevailing recession in textile industry has forced owners of textile processing units in GIDCs of Sachin and Pandesara to keep their units shut for three days in a week to cut down on production and overproduction of finished polyester fabrics. A few small processing units have announced temporary closure due to various factors, including Goods and Services Tax (GST), weak demand of polyester fabrics and labour issues for the last few months. There are about 350 textile processing units in Sachin, Palsana, Kadodara and Sachin employing over 2.5 lakh textile workers. The grey or unfinished fabrics manufactured by powerloom weavers are sent for finishing at the textile dyeing and printing mills for final finishing. Sources said demand for polyester fabrics is on lower side in the country for a very long time. Issues related to GST, filing of returns, ITC-O4 and refund of input tax credit (ITC) have been pending for last many months. South Gujarat Textile Processing Association president Jitu Vakharia said, “The textile processing sector has no work at all. Supply of grey fabrics from the textile market has reduced by almost 60%. Traders are facing a gamut of issues concerning GST and liquidity crisis etc. Textile processors are forced to keep their units shut for three days in a week. Labourers, who had gone to their native villages after March, are yet to return. Embroidery and weaving units are facing severe shortage of workers.”
Source: Times of India
NEW DELHI: The government's focus to improve logistics, ease of doing business and modern trade infrastructure will help exports to touch USD one trillion in the next three years, exporters body FIEO said Tuesday. Federation of Indian Export Organisations (FIEO) President Ganesh Kumar Gupta said India has huge potential to boost it's exports of goods and services from the current $535 billion. "With steps like special focus on cutting logistics cost and time, further improvement in ease of doing business, proper implementation of government policies for exporters and timely refund of taxes will helps us touch USD one trillion exports in the next three years," Gupta said. He said the logistics time, cost and inadequate trade related infrastructure are impacting the exports. Reduction of logistics cost by 10 per cent will help boost the country's exports by about 5-8 per cent, Gupta added. He also said that to develop logistics sector in an integrated way, it is important to focus on new technology, improved investment, skilling, removing bottlenecks, improving inter modal transportation, automation, single window system for giving clearances, and simplifying processes. Gupta also that timely refund of taxes such as goods and services tax will help exporters deal with the liquidity crunch problem. There is also a need to focus on export of GI products and the government should give adequate funds for marketing of these goods to push their shipments, he added. A Geographical Indication (GI) is primarily an agricultural, natural or a manufactured product (handicrafts and industrial goods) originating from a definite geographical territory.
Source: Live Mint
India is weighing offering incentives to attract companies moving out of China amid its trade war with the US, a person familiar with the development said. Financial incentives such as preferential tax rates and the tax holiday provided by Vietnam to lure companies are among measures being considered, the person said, asking not to be identified as the discussion is still private. Industries identified for incentives include electronics, consumer appliances , electric vehicles, footwear and toys, according to a trade ministry document seen by Bloomberg. Economies, including Vietnam and Malaysia, have benefited from businesses trying to sidestep tariffs, while India has largely missed out on any investment gains. The trade ministry’s effort is part of a larger plan to cut reliance on imports, while boosting exports, and needs Finance Minister Nirmala Sitharaman’s approval. The trade ministry didn’t immediately respond to an email and a call seeking comment. Other measures include setting up affordable industrial zones across India’s coastline and giving preference to local manufacturers in government procurement as an incentive to win over companies looking for an alternative production base, according to the trade ministry document circulated to stakeholders. The plan will help grow India’s manufacturing base and will aid Prime Minister Narendra Modi’s flagship ‘Make in India’ initiative, which aims to boost manufacturing to 25% of the economy by 2020. Doing that will help India narrow its huge trade deficit with China, its largest commercial partner. A sector-wise analysis by the industry department, which oversees the foreign direct investment policy, shows investments by Chinese companies can flow into smartphones and components manufacturing, consumer appliances, electric vehicles and parts, and daily use items like bed linen and kitchenware, 95% of which are currently imported from China. There is also an effort to step up exports in sectors vacated by the US due to the trade standoff. The government has identified more than 150 items where it feels exporters can increase business with China. Some of these are prepared or preserved potatoes, synthetic staple fibers of polyesters and t-shirts, hydraulic power engines, and supercharger for motors.
Source: Business Standard
Iran traded 1.09 million tons of non-oil commodities worth $440 million with India during the first Iranian month (March 21-April 20), registering a 13.34% and 36.34% increase in tonnage and value respectively compared with the year before, latest data released by the Islamic Republic of Iran Customs Administration show. India was Iran's fourth biggest trading partner during the period after China, the UAE and Turkey respectively. Iran’s exports to India stood at 747,511 tons of goods worth $116.72 million to register a 15.93% and 46.78% decline in tonnage and value respectively year-on-year. India was Iran’s seventh export destination in the world. Iran exported methanol, ethylene glycol and bitumen to India during the month. India exported 350,348 tons of commodities worth $323.27 million to Iran, up by 340.98% and 212.65% in tonnage and value respectively YOY. It was the fourth exporter of goods to Iran during the month under review. Iran mainly imported semi- and wholly-milled rice, sugar, oilcake, aluminum oxide, tea and graphite electrodes used in furnaces from India. Major products of India’s interest facing high tariffs are basmati (45%), black tea (30%), motorcycles (65%), textiles (65%), glass microspheres (45%), pneumatic rubber tires (30%), polyester yarn (40%) and woven fabrics (70%), according to Financial Express.
Source: Financial Tribune
India needs to grow at 8-10 per cent annually if good jobs have to be provided to those joining the workforce, eminent economist Arvind Panagariya has said, emphasising that the country must return to an export-led economy to generate employment with higher salaries. Panagariya, who served as the first Vice Chairman of the NITI Aayog from January 2015 to August 2017, underscored that for trade to grow, the country has to be open. As tariffs are going up on many different items, he said the "whole idea of turning back to import substitution turns the clock back (for India). It is on the back of trade liberalisation and very rapid export expansion during the 2000s onwards that the (Indian) economy really began to grow at this very rapid rate." "We have to return to becoming an export-led growth country," Panagariya, delivering the keynote address at a panel discussion on 'Economic Priorities for the New Government' of Prime Minister Narendra Modi, said Monday. Panagariya, Director at the Raj Center on Indian Economic Policies at Columbia University, said that the Indian economy grew at a "very impressive" rate of about 7 per cent plus during the 15-year period from 2003-04 onwards. In the last five years of Modi's first term as Prime Minister, the growth rate was a robust 7.5 per cent. "But we need to get to 8-10 per cent if good jobs are going to be provided. The export-led growth is also very critical for good jobs, he added. He stressed that there is not a single country which has grown on a sustained basis at rates of 8-10 per cent for 2-3 decades without very rapid growth in trade. He further emphasised that by increasing exports, imports will also automatically grow "because the whole point of exporting is so that you will import in return." The panel discussion was organised by the Consulate General of India in New York in partnership with the Deepak and Neera Raj Centre for Indian Economic Policies and the US-India Strategic Partnership Forum (USISPF). Panagariya added that he has always maintained that India's problem is not unemployment but low wages. "The debate hovers around the unemployment rate - even if you take the latest unemployment rate which is seen as the highest ever in 45 years at 6 per cent. Unemployment is not the huge problem in India, low wages is, he said. He elaborated that a lot of the employment in India is self-employment. "So about 44 per cent in agriculture and then of the remaining almost 75 per cent of the employment is in these companies which have five workers or less. They are hardly companies. What that translates into is a very low level of productivity, very low level of wages. These are what are called the mom-and-pop enterprises, he said. He asserted that unfortunately in India, there is a huge preoccupation with micro and small enterprises and there are hardly any medium and large firms. "We need to have medium and large firms. This is where the whole link to exports is very important, he said adding that it is the medium and large firms that give boost to export activity and compete with the best in the world. Going forward, India also needs cleaning up of the Non-Performing Assets and in the next five years, privatisation of banks has to be on the government's agenda. Panagariya also made a strong case for creating Shenzhen-style Autonomous Employment Zones that create zones of 500 square kilometers or more along the coast that are characterized by highly entrepreneur-friendly regime with respect to land, labour and international trade to boost economic growth in the years to come. In 1980, Shenzhen was established as China's first special economic zone.
Source: Business Standard
About 40% of the production has fallen due to a rapid decrease in demand which has led to a massive immigration of workers of the textile industry, warned Laxmiprasad Todi, Co-Secretary, Federation of Surat Textile Traders Association. Surat has traditionally been a textile city of Gujarat and was later the leader of textile producer in the entire country by producing around 65% of the total textiles. It soon came to be known as the “textile city” with large masses migrating in search of a livelihood. However, with the introduction of new schemes like GST and alterations in Income Tax Policy, the entire textile hub of Surat has taken a massive blow. Despite the upgradation of the Surat Airport, there are still many setbacks that the industry faces such as increase in the cost of production, said Todi while sharing the challenges being faced by the industry in Surat to KNN India. He mentioned “Improvement in Income Tax would lead to efficient production and potentially a better growth of the industry as a whole. Better subsidies are also expected from the Government in the upcoming Budget. Structured use of GST will also be useful for the fate of Surat textiles. Currently these schemes have led to an immense downfall of the industry.” The textile industry has been left shorthanded with a large number of people moving out of Surat in search of greener pastures and the Co- Secretary affirmed this. “Over the course of 5 years, a lot of traders have fled away to metropolitan cities like Delhi, Mumbai in search of work,” he said. “There is still a demand in the Middle East. But exports have taken a hit because of the GST Act. With sustainable efforts from the government, the industry will pick itself within 1-2 years. In the short run, yes, we are floundering, but I believe the current government will aid us in the long run,” asserted the Co-Secretary.
Source: KNN India
The India International Textile Machinery Exhibition Society (India ITME Society) organised a networking programme at Barcelona, Spain, along with ITMA 2019 on June 22, 2019. ITMA is being held from June 20-26, 2019. The programme was held to highlight the strengths and opportunities offered by India, home to second largest textile market in the world. Sanjay Verma, ambassador of India to Spain was the chief guest. Uday Gill, CEO fibres, Indorama Ventures and Govind Venuprasad, co-ordinator, ITC were the guests of honour. Amongst the other dignitaries were Luis Valeriano González, consul general of India to Spain. Around 170 representatives from international associations, companies, and media personnel from 24 countries attended the business gathering, according to a press release by India ITME. On the occasion, S Hari Shankar, chairman of India ITME Society announced two global events, ITME Africa-2020 to be held from February 14-16, 2020 in Addis Ababa, Ethiopia; and India ITME-2020 to be held from December 10-15, 2020 in Greater Noida, India. India ITME-2020, a flagship event, is focused on customer outreach and customer connect in India and the South East Asian region. A complete spectrum of 21 exhibiting chapters from fibre to finished goods shall be showcased at India ITME 2020, making it a key business event for the textile engineering industry. The 11th edition of the ITME series shall be spread across 235,000 square metres in the brand-new state-of-the-art modern facility; with participation from 1,800 plus exhibitors and over 150,000 visitors from over 100 countries around the globe. India ITME 2020 shall provide ultimate platform for product launches and successful connect with India’s domestic market as well as access to the entire region. The second event announced to the international media and guests was ITME Africa 2020, which is strategically formulated and is to be hosted in Addis Ababa, Ethiopia. This event was conceptualised and launched in order to open up Africa to technology revolution in textiles, thereby creating future opportunities for textile engineering industry and opening a new market in the years to come. ITME Africa 2020 is poised to be more than a routine exhibition. It proposes to bring to the table: complete solutions to textile industry development in the continent through affordable technology, international exposure, skill development through seminars and conferences, confluence of business houses, investment opportunities, joint ventures, access to finance and networking platforms with technocrats and educational institutes. In short, it aims to pave the way for a wave of knowledge, progress, growth and prosperity to the entire continent. Both the global events are strategic efforts by India ITME Society to enable textile and textile engineering industry to explore, expand, and strengthen their respective market positions both in developed as well as developing markets.
Source: Fibre2Fashion
Visaka Industries Ltd has announced the expansion of its Vnext division with a new plant for "Vnext boards" in Tamil Nadu. It plans to increase its capacity from 1,70,000 metric ton (MT) to 2,20,000 MT by investing ₹100 crore using internal accruals for the new plant. The plant will be completed in 15 months. It will cater to the market demands of Vnext boards in the south. Currently, Vnext plants are operational in Telangana, Maharashtra, and Haryana. The Vnext’s products are designed to substitute plywood and gypsum plaster boards with eco-friendlyand sustainable materials. It has customer base across India, Middle East and Africa. Vnext board is a non-asbestos, autoclaved fibre cement board for interior and semi-exposed applications. It is widely used for wall panelling, dry walls, partitions, false ceilings, and many more. Vamsi Gaddam, Joint Managing Director of Visaka Industries, said, "We have been in the fibre cement board market for over 10 years and have created a strong base in terms of network and a brand. The new plant is a strategic step by Visaka Industries to supply to the growing market demands of Vnext board." The company recently showcased its range of Vnext products at the United Nations Habitat 2019 and presented how it is transforming traditional building construction processes with eco-friendly products. With 12 manufacturing units and a pan-India distribution channel of over 7000 dealer outlets, Visaka Industries Limited has emerged as a renewable business enterprise with a focus on innovative products to build a sustainable future.
Source: Business Line
Mumbai: The Indian rupee pared initial gains and ended almost flat at 69.36 against the US dollar on Tuesday as simmering geopolitical tensions in the Middle East dampened forex market sentiment. At the interbank foreign exchange (forex) market, the domestic currency opened at 69.32 a dollar and touched a low of 69.40 and high of 69.22 during the day. The local unit finally closed at 69.36 against the American currency, down 1 paisa over its previous close. On Monday, the rupee had settled at 69.35 against the US dollar. Forex traders said participants are cautious amid rising tensions between the US and Iran. "Rupee has been consolidating in the range of 69 and 70 for last five weeks. Today rupee is trading flat, amid easing crude oil prices, foreign fund inflows and weakening of the US dollar in the overseas market," said V K Sharma, Head PCG & Capital Markets Strategy, HDFC Securities. Brent crude futures, the global oil benchmark, fell 0.48 per cent to trade at USD 64.55 per barrel. Foreign investors bought shares worth Rs 1,157.87 crore on a net basis on Tuesday, provisional data showed. "Sustained weakness in the Dollar Index could be the prime reason for strength in the domestic currency despite weak economic data released in the recent past," Sharma said. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose marginally by 0.05 per cent to 96.02. "All eyes are now on the upcoming meet between US President Trump and Chinese President Xi Jinping set to happen later in the week at G20 summit," Sharma added. The BSE Sensex Tuesday pared losses and soared over 350 points, before settling 311.98 points, or 0.80 per cent, higher at 39,434.94. Similarly, the broader NSE Nifty rose 96.80 points, or 0.83 per cent, to 11,796.45.The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 69.4788 and for rupee/euro at 79.1137. The reference rate for rupee/British pound was fixed at 88.6827 and for rupee/100 Japanese yen at 64.68. DRR MKJ
Source: Money Control
The DPIIT is the new nodal agency for domestic trade (including offline and online retail) after the subject was shifted from the consumer affairs ministry in February. The government will release a draft policy on retail trade in 10 days as it seeks to quickly implement the promises made in the election manifesto of the Bharatiya Janata Party (BJP). In a meeting with key retail associations and trade bodies on Tuesday, Ramesh Abhishek, secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), said the policy would address central and state-level issues faced by retailers and would look at promoting fair and honest trade. The DPIIT is the new nodal agency for domestic trade (including offline and online retail) after the subject was shifted from the consumer affairs ministry in February. For months, offline retailers and traders have been lobbying hard for a national retail policy to protect their business from the growing influx of e-commerce. The final policy on retail trade is likely to be out in September after views of all stakeholders are taken into account, a retail industry official privy to developments said. Participants in Tuesday’s meeting included the Retailers Association of India (RAI), the Swadeshi Jagran Manch, the Confederation of All India Traders (CAIT), the Confederation of Indian Industry and the Federation of Indian Chambers of Commerce and Industry among others. At the meeting, both the RAI and the CAIT asked that laws be suitably modified to enable ease of doing business for retailers, especially the issue of multiple permits and licences needed for running retail establishments in the country. Almost 28 different licences and permits, said industry officials, are required to set up a retail business in the country, since it remains a state subject. The draft national retail policy is expected to address this issue head-on, said industry sources, as this remains a key pain point for most retailers. The RAI also asked that retail be included in the development plan of cities so that retailers could be given proper infrastructure, logistics and warehouse support. The CAIT, meanwhile, said traders required easy access to finance so that they could focus on growing their business. “Since the government is keen to promote digital payments, bank charges on card payment transactions should be subsidised to promote their use at retail outlets. We have also suggested that a provision be made for a trade commissioner and for the formation of trade tribunals in each state to resolve disputes between traders,” the CAIT’s National Secretary General Praveen Khandelwal said. The CAIT also said there was a need to modernise retail trade and that skill development of traders should find a place in the policy.
Source: Business Standard
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1141.23 |
USD/Ton |
0% |
6/25/2019 |
|
VSF |
1642.79 |
USD/Ton |
0.18% |
6/25/2019 |
|
ASF |
2515.07 |
USD/Ton |
-0.57% |
6/25/2019 |
|
Polyester POY |
1163.04 |
USD/Ton |
0% |
6/25/2019 |
|
Nylon FDY |
2340.62 |
USD/Ton |
0% |
6/25/2019 |
|
40D Spandex |
4332.32 |
USD/Ton |
0% |
6/25/2019 |
|
Nylon POY |
2689.53 |
USD/Ton |
0% |
6/25/2019 |
|
Acrylic Top 3D |
1308.42 |
USD/Ton |
0% |
6/25/2019 |
|
Polyester FDY |
2587.76 |
USD/Ton |
0% |
6/25/2019 |
|
Nylon DTY |
5495.36 |
USD/Ton |
0% |
6/25/2019 |
|
Viscose Long Filament |
1388.38 |
USD/Ton |
0% |
6/25/2019 |
|
Polyester DTY |
2209.78 |
USD/Ton |
0% |
6/25/2019 |
|
30S Spun Rayon Yarn |
2355.16 |
USD/Ton |
0% |
6/25/2019 |
|
32S Polyester Yarn |
1751.83 |
USD/Ton |
0.84% |
6/25/2019 |
|
45S T/C Yarn |
2602.30 |
USD/Ton |
0% |
6/25/2019 |
|
40S Rayon Yarn |
2195.24 |
USD/Ton |
0% |
6/25/2019 |
|
T/R Yarn 65/35 32S |
1904.48 |
USD/Ton |
0% |
6/25/2019 |
|
45S Polyester Yarn |
2384.23 |
USD/Ton |
0% |
6/25/2019 |
|
T/C Yarn 65/35 32S |
2674.99 |
USD/Ton |
0% |
6/25/2019 |
|
10S Denim Fabric |
1.33 |
USD/Meter |
0% |
6/25/2019 |
|
32S Twill Fabric |
0.77 |
USD/Meter |
0% |
6/25/2019 |
|
40S Combed Poplin |
1.04 |
USD/Meter |
0% |
6/25/2019 |
|
30S Rayon Fabric |
0.61 |
USD/Meter |
0% |
6/25/2019 |
|
45S T/C Fabric |
0.68 |
USD/Meter |
0% |
6/25/2019 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14538 USD dtd. 25/06/2019). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The National Board of Revenue has issued two separate notifications extending the effectiveness of the reduced corporate income tax rates for the readymade garment sector by one year and for the textile sector by three years. According to a statutory regulatory order issued on Sunday, export-oriented apparel makers both from woven and knitwear sectors will continue to enjoy corporate tax rate at reduced 12 per cent up to the next fiscal year of 2019-2020. The tax rate, however, for entrepreneurs having internationally recognised green building certification for their factories, will be 10 per cent while the tax rate for the other companies will be 12 per cent. The NBR, in another SRO issued on Sunday, said that textile sector would enjoy corporate income tax rate at 15 per cent for another three years up to July, 2022. Entrepreneurs who are involved in yarn production, dying, finishing, coning, fabrics production, fabrics dying, finishing, printing and other similar activities will enjoy the benefit. Generally, corporate tax rate in the country is 25 per cent for publicly listed companies and 35 per cent for non-listed companies. The textile sector has been enjoying the reduced tax rate since 2015. The NBR tried to increase the tax for the RMG sector to 15 per cent in FY18 but failed due to strong lobbying from the businesses in the sector. In the proposed budget for FY20, the NBR has also reinstated source tax on export earnings by apparel makers to 1 per cent as the tenure of reduced rate at 0.25 per cent is set to expire on June 30.
Source: News BD
On 25 June, the Council adopted decisions on the signature of two agreements between the EU and Vietnam: a free trade agreement (FTA) and an investment protection agreement (IPA). Both agreements will be signed on 30 June 2019, in Hanoi. The FTA between the EU and Vietnam is the most ambitious free trade deal ever concluded with a developing country. It provides for the almost complete (99%) elimination of customs duties between the two blocks. 65% of duties on EU exports to Vietnam will disappear as soon as the FTA enters into force, while the remainder will be phased out gradually over a period of up to 10 years. As regards Vietnamese exports to the EU, 71% of duties will disappear upon entry into force, the remainder being phased out over a period of up to 7 years. The FTA will also reduce many of the existing non-tariff barriers to trade with Vietnam and open up Vietnamese services and public procurement markets to EU companies, while the IPA will strengthen protection of EU investments in the country. As one of the "new generation" bilateral agreements, the EU-Vietnam trade deal also contains important provisions on intellectual property protection, investment liberalisation and sustainable development. On this last aspect, the FTA includes commitments to implement International Labour Organisation core standards (for instance on the freedom to join independent trade unions and on banning child labour) and UN conventions relating for example to the fight against climate change or the protection of biodiversity. Negotiations between the EU and Vietnam started in June 2012 and were concluded on 2 December 2015. However, the formal conclusion of the agreement was delayed by a pending opinion of the European Court of Justice on the division of competencies between the EU and its member states relating to the conclusion of the EU-Singapore FTA. Following the opinion of the Court delivered in May 2017, the Commission decided to propose two separate agreements:
Vietnam is the EU's second largest trading partner in the Association of Southeast Asian Nations (ASEAN) after Singapore, with trade in goods worth almost €50 billion a year and almost €4 billion when it comes to services. While EU investment stocks in Vietnam remain modest, standing at €8.3 billion in 2016, an increasing number of European companies are establishing there to set up a hub to serve the Mekong region. Main EU imports from Vietnam include telecommunications equipment, clothing and food products. The EU mainly exports to Vietnam goods such as machinery and transport equipment, chemicals and agricultural products.
Source: Euro News
Minister for Textiles and Jute, Golam Dastagir Gazi, said the government has taken steps to reopen shut textile mills under the public-private partnership (PPP) scheme. This will create job opportunities he said, at a program in Dhaka on Tuesday. An agreement was signed to run the Ahmed Bawani Textiles Mills Limited of Bangladesh Textile Mills Corporation (BTMC) in a PPP consortium with Tanzina Fashion Limited. BTMC Chairman Mohammad Kamruzzaman and Tanzina Fashion Managing Director Hasanul Mujib signed the agreement on behalf of their respective organizations. The minister said some 636.38 acres of BTMC lands remain unused across the country. He said: "Better land use and management will stimulate the economy by creating more jobs and driving manufacturing sector growth, apart from helping the textile industries." Saifuzzaman Shikhor, MP of Magura-1 constituency, Israfil Alam MP of Naogaon-6, a ranking member of the Parliamentary Standing Committee on Textile and Jute Ministry, BTMC Chairman Mohammad Kamruzzaman, former president of BGMEA Siddiqur Rahman, and others were present at the event.
Source: Dhaka Tribune
Finland is continuing its advancement toward a circular economy for textiles, having completed the first phase of its Telaketjuresearch and development project, aimed at keeping end-of-life textiles out of landfills. The Telaketju project is focused on creating a business value chain related to the recycling, sorting and use of discarded textiles in Finland. The project was launched in 2017 by VTT Technical Research Center, Turku University of Applied Sciences, Lahti University of Applied Sciences and Lounais-Suomen Jäehuolto, a company focused on household waste management. According to VTT, the market potential for mechanical recycling of textiles in Finland would be $67.7 million to $135.5 million and employ between 150 and 300 people. First-phase investment in a recycling system would require about $22.5 million to $33.9 million. Finland produces about 154 million to 220 million pounds of textile waste annually. In its first phase, the project created the foundations for a recycling business while also demonstrating the manufacturing of different kinds of products from recycled fibers. VTT’s foam laying pilot was used for testing different recycled textiles in the manufacturing of nonwoven fabric. Additionally, a new type of extruder was used to produce material suited for composites containing different fibers, such as pillows. “In the project, we established a value network that collaboratively enabled the implementation of a chained production demo,” said Eetta Saarimäki, senior scientist with VTT. “End-of-life textiles collected from consumers in the Turku region were sorted and delivered to France for fiber extraction. The Teleketju research partners and companies used these to make their demo products, such as nonwoven fabrics, composites and acoustic panels.” Part of the challenge related to the recycling value chain is the ability to identify textile fibers and the chemicals used in them. The sorting technologies must also be developed to ensure sufficient volume and quality of material for industrial recycling. Lounais-Suomen Jätehuolto is already planning a sorting and processing plant for textile waste in Turku, which is expected to launch within the year. The second phase of the Telaketju project is currently in its planning stage with funding being sought from Business Finland.
Source: Home Textiles Today
