Tirupur Exporters’ Association (TEA) on Tuesday claimed that the Union Textiles Secretary has promised to address various issues being faced by knitwear industry and help for the growth of Tirupur knitwear export units.The assurance came after a meeting with Secretary Ravi Kapoor in Delhi on Monday to discuss the implementation modalities, course design, scope and breadth of the upskilling component under Samarth Scheme and focus on improving the overall productivity following best practices, TEA president, Raja M Shanmugham said in a statement here. After discussions, TEA appealed for reimbursement of various schemes, including rebate on state levies, amended technology upgradation funds and pending claims and subsidies to meet the financial requirements of exporting units, he said. TEA also sought removal of exporting units from risky exporters category and help them continue to receive drawback and IGST claims. Kapoor promised to take up and address the issues, he said.
Source: Covai Post
India’s longest growth slump since 2012 is heightening concern that it may be tough for policy makers to reverse the slowdown. “Growth has now slipped below the long term trend of 6.6% for two consecutive quarters, which implies that India is effectively in a quasi-recession,” Teresa John, an economist at Nirmal Bang Equities Pvt. in Mumbai, said in a report published Tuesday. Early indicators suggest “growth remains elusive,” she added. While the standard macroeconomic definition of a recession is two consecutive quarters of shrinking GDP, a significant decline in economic activity spread across months is another often-used description. In India, which offers only year-on-year calculations of output, automobile sales have plunged the most in two decades and the chairman of Hindustan Unilever Ltd. warned that the consumer goods his company makes are “recession-resistant, but not recession-proof.” Official data on Friday showed that gross domestic product in Asia’s No. 3 economy grew 5% in April-June from a year earlier, below the weakest estimate of 39 economists polled by Bloomberg and the slowest pace in six years. The five straight quarters of slowing growth mark the longest slump since 2012. A Bloomberg gauge of high-frequency indicators suggests that economic activity continued to weaken in July, with investment and consumption both falling. Economists at Nirmal Bang expect GDP growth to bottom out in the quarter ending September but believe that “a counter-cyclical government spending boost is required.”
Source: The Economic Times
SBI chairman Rajnish Kumar reiterated his support for the government’s move to consolidate state-owned banks. The next two months are crucial for the Indian economy that’s facing its worst slowdown in six years amid debate about whether the downturn is cyclical or structural as the key automobile industry faces headwinds, said State Bank of India chairman Rajnish Kumar. He reiterated his support for the government’s move to consolidate state-owned banks. “If we see the automobile sector, today I read Kia Motors reported very good numbers… That sector is going through a lot of churning,” Kumar told ET in an interview ahead of SBI’s annual banking and economics conclave. “There are issues around environment, change in public mindset. We don’t know how much of this is cyclical and how much is structural… but October and November are two very crucial months for the economy.” The success or otherwise of the festive season, which traditionally accounts for a bulk of consumption, will determine whether Indians feel emboldened enough to resume spending. India’s growth slumped to a six year low of 5% in the June quarter. Monthly automobile sales have collapsed, in some cases as much as 50%, plunging dealerships into losses and triggering job cuts. The government has announced stimulus measures and reforms including a merger of state-run banks aimed at strengthening them and bolstering credit expansion in order to revive growth. “Suggestion to consolidate PSU banks was given 25 years ago… This had to be done,” said Kumar. “If there is a strong execution team, then any credit slowdown can be taken care of. The biggest issue is IT, human resource and customer integration.” Finance minister Nirmala Sitharaman said last week that the government would merge 10 state-run lenders to create four mega banks that would help facilitate the flow of credit.
Source: The Economic Times
British Prime Minister Boris Johnson on Tuesday said that a "big" free trade agreement (FTA) was among the key issues he discussed with Prime Minister Narendra Modi during their meeting on the sidelines of the G7 summit in Biarritz, France, last month. In response to a question on India-UK relations raised by Indian-origin Conservative Party MP Shailesh Vara in the House of Commons on the summit outcomes at the end of parliamentary summer recess, Johnson said he had an extremely good conversation with Prime Minister Modi. "We agreed to strengthen our cooperation, not just on the security side where clearly the UK and India stand shoulder to shoulder in the fight against terror but also in military cooperation in the Asia-Pacific region where we share many interests," Johnson said. "This (the discussions) also included on free trade, in doing a big free trade agreement with India, he said.
Source: Business Standard
Commerce and industry minister Piyush Goyal said the government is monitoring import trends of important goods and will take corrective steps to control sudden surges that harm Indian industry, especially due to dumping. Goyal indicated as much at an interactive session with the Confederation of Indian Industry in Mumbai late last week, where he discussed strategies to promote exports of high-technology products from India.
Source: The Economic Times
The rupee rebounded 19 paise to 72.20 against the US dollar in early trade on Wednesday, amid weakening of the American currency in overseas market. On Tuesday, the rupee had dropped sharply by 97 paise to more than nine-month low of 72.39 against the US dollar as heavy sell-off in the domestic equity market, weak macro environment and a stronger greenback kept investors edgy. At the interbank foreign exchange on Wednesday, the rupee opened at 72.20, registering a rise of 19 paise over its previous close of 72.39. The domestic unit could not hold on to the gains and was trading at 72.23 against the dollar at 1003 hrs. Forex traders said the domestic unit gained following the weakening of the American dollar vis-a-vis other currencies overseas. The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.08 per cent to 98.92. However, rising crude oil prices and foreign fund outflows weighed on local currency. Foreign institutional investors (FIIs) remained net sellers in the capital market, pulling out Rs 2,016.20 crore on Tuesday, according to provisional exchange data. Brent crude futures, the global oil benchmark, rose 0.21 per cent to trade at USD 58.38 per barrel. Domestic bourses opened on a cautious note on Wednesday, with benchmark indices Sensex trading 41.22 points higher at 36,604.13 and Nifty up 12.85 points at 10,810.75. The 10-year government bond yield was at 6.51 per cent in morning trade. The Indian currency came under pressure after official data released on Friday showed that India’s GDP growth fell to an over six-year low of 5 per cent in the June quarter. Besides, the growth of eight core industries dropped to 2.1 per cent in July, mainly due to contraction in coal, crude oil and natural gas production. In addition, IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) showed that the country’s manufacturing sector activity declined to its 15-month low in August. Moreover, the lingering US-China trade war and Brexit fears dragged the domestic currency, traders said.
Source: The Hindu Business Line
The fourth edition of Centrestage, Asia’s premier fashion event, to be held from September 4-7, 2019, at the Hong Kong Convention and Exhibition Centre (HKCEC), will feature close to 100 local fashion brands. In addition, more than 40 exciting events will be presented as part of Centrestage 2019, including over 20 fashion shows and parades. Organised by the Hong Kong Trade Development Council (HKTDC), the event has “Future Tribes” as its central theme with three distinct zones − Iconic, Allure and Metro – showcasing some 240 local and international fashion brands.The opening gala fashion show, Centrestage Elites, will feature Hong Kong designer Anais Mak’s internationally renowned brand Anaïs Jourden, as well as acclaimed New York designer Joseph Altuzarra’s brand, Altuzarra. They will have the global launch of their pre-spring 2020 collections on the catwalk. Following hot on the heels of Centrestage Elites, the Fashion Hong Kong Runway Show will showcase the latest collections of seven homegrown designer labels – 112 Mountainyam, Doriskath, From Another Planets, Harrison Wong, Meiking Ng, Methodology and Yeung Chin – that have taken part in other major international fashion weeks in New York, London, Copenhagen, Tokyo and Shanghai to highlight Hong Kong’s creative prowess. Another Centrestage highlight will be the finals of the Hong Kong Young Fashion Designers’ Contest 2019 (YDC) on September 7. Sixteen shortlisted candidates will compete for five awards this year, with renowned Japanese designer Mihara Yasuhiro serving as the VIP judge and special guest at the event. Other shows include the Redress Design Award, the Knitwear Symphony 2019, and the ninth Hong Kong Knitwear Designers’ Contest presented by the Knitwear Innovation and Design Society. The HKTDC will also organise the “Meet the Visionaries” seminar series featuring representatives from the Centrestage Elites designers Anais Mak and Joseph Altuzarra and YDC VIP judge Yasuhiro, while the “Trend Talk Series” will feature prominent industry experts such as GOXIP vice president of marketing Michele Tardelli and Euro monitor international head of fashion research Jorge Martin.
Source: Fibre2Fashion
In the early 1980s, a steam turbine factory in inland China was at the brink of bankruptcy, forcing its workers to produce kitchen knives to survive. The factory now has turned into one of the world's largest manufacturer of power generators, with its products and services exported to nearly 80 countries and regions. The secret behind the transition, said Xu Peng, deputy general manager of Dongfang Electric Corporation, was the company's relentless efforts in research and development (R&D). "Innovation is what brings us to where we stand today," Xu said. Dongfang Electric is among the thousands of industrial firms riding on the tide of China's rapid development over the past decades. Since the founding of the People's Republic of China 70 years ago, the country has seen tremendous progress in its industrial strength, with the manufacturing sector now playing an indispensable role in the global industrial system. Industrial value-added expanded 970.6 times from 12 billion yuan (about 1.7 billion U.S. dollars) in 1952 to 30.52 trillion yuan in 2018, representing an average year-on-year growth rate of 11 percent calculated at the constant price, according to data from the National Bureau of Statistics (NBS). World Bank data showed that China overtook the United States as the world's largest manufacturing country in terms of added value in 2010 and has retained first place ever since. As the world's factory, the country now ranks first in the production of clocks, bikes, furniture and beer, while it could barely make enough soap and clothing to meet domestic demand 70 years ago. The country's output of mobile phones, computers and televisions amounted to 1.8 billion, 310 million and 190 million units in 2018 respectively, accounting for about 70 percent to 90 percent of global output, NBS data showed. Auto production stood at 27.82 million units in 2018, remaining first in the world. "China not only has a competitive edge in the production of light industrial goods or textiles but also is almost on par with the developed economies in terms of manufacturing of high-tech products and major equipment," said Wei Jigang, a researcher with the Development Research Center of the State Council. Dongfang Electric made its way out of the inland province of Sichuan to the global stage thanks to its high-tech advantage. In a laboratory test in Switzerland, its power generator was proved 0.39 percent more efficient than its competitors in a variety of simulations. "A 0.39-percent difference could mean an additional 50 or 60 million kilowatt-hours of electricity a year for hydropower stations," said Zhao Yongzhi, an engineer with the firm. The country has been stepping up its efforts to invest more in high-tech manufacturing and upgrade its industrial sector. According to the NBS, China's R&D intensity, or the proportion of R&D expenditure to GDP, reached a record high of 2.19 percent last year. "As the country shifts from high-speed growth to high-quality growth, technology will power the industrial sector's future growth," said Tang Jiqiang with a think tank under the Southwestern University of Finance and Economics.
Source: Xinhua
International trade experts have warned of the adverse impact of ongoing bitter trade war between the two largest economies of the world – the US and China – on the entire indo-pacific region. US President Donald Trump today dramatically escalated his threats against China despite Chinese Vice Premier and the country’s main negotiator with the US tried to struck a conciliatory tone. Trump today warned China to concluded a deal soon, threatening that a deal will be even tougher if he succeeds in winning a second term at the White House. The warning came in response to a conciliatory approach adopted by Chinese Vice Prime Premier Liu He that his country opposes a trade war with the US as it was not only bad for both the countries but to the world as a whole.“China firmly opposes a trade war as it is not good for the country, the United States and the world,” China’s Vice Premier Liu He told state news agency Xinhua. China hoped the two sides seek common ground while setting aside difference and that they can resolve the issue on the basis of equality and mutual respect, Xinhua quoted Liu as saying. But these views were not reciprocated by the US side as President Donald Trump today accused that China would prefer another candidate in White House after the Presidential elections that are due in November next year. Both sides have imposed tit-for-tat tariffs on goods and services worth hundreds of billions of dollar in the ongoing trade war between the two countries that started in March last year. Stephen Olson of Hong Kong-based Hinrich Foundation, who has experience of more than three decades in international trade and commerce told Financial Express Online that as a whole this trade war will be bad for the region and the world. Countries like India, Vietnam, and Malaysia were expected to be beneficiaries of the US-China trade war as western companies were trying to shift manufacturing base away from China to avoid any possible US action. However, experts like Stephen Olson believe that come countries might be beneficiaries in the long term but in the long run, it will hurt everyone. “Setting aside any short-term benefits any country might receive, the larger and more important longer-term point is that all of the Indo-Pacific region has been a major beneficiary of an open, rules-based global trade system. To the extent the US-China trade war indicates that the system is in danger of breaking down, that would be bad for the entire region,” he said.
Source: The Financial Express
Leaving the European Union without a trade deal would cost Britain at least $16 billion in lost EU sales, and probably far more after accounting for indirect effects and other markets, a report by the U.N. trade agency UNCTAD said on Tuesday. “UNCTAD’s research indicates that a no-deal Brexit will result in UK export losses of at least $16 billion, representing an approximate 7% loss of overall UK exports to the EU,” it said. That would include $5 billion in motor vehicle exports, $2 billion in animal products and a further $2 billion in apparel and textiles. UNCTAD said the $16 billion figure was conservative, and only took into account a rise in EU tariffs from zero to the basic “most favored nation” rate that it offers countries without preferential deals. “These losses would be much greater because of non-tariff measures, border controls and consequent disruption of existing UK-EU production networks,” UNCTAD’s report said. The report was published as Britain’s parliament debated a bid to stop Britain crashing out of the EU on Oct. 31 without a transitional deal, which the European Commission described as a “very distinct possibility”. UNCTAD said 20% of Britain’s non-EU exports were at risk of higher tariffs in markets such as Turkey, South Africa, Canada and Mexico - countries that have preferential trade deals with the EU but have not yet agreed to roll over those benefits for British exporters in the event of a “no deal” Brexit. If Britain did not strike those deals before its exit from the EU, it would lose a further $2 billion in exports, with higher tariffs for cars, processed food, clothes and textiles, with $750 million in forgone motor vehicles exports. Still more losses could come if Britain failed to conclude rollover deals with Vietnam and the MERCOSUR countries of Argentina, Brazil, Paraguay and Uruguay, which have recently signed trade agreements with the EU.
Source: Reuters
