Powerloom weavers from across the country have raised serious concerns on the Chinese fabric manufacturers dumping huge amount of finished goods in the country with the central government proposing to include textile sector under the Regional Comprehensive Economic Partnership (RCEP) scheme. Powerloom weavers from the major textile hubs across the country including Bhiwandi, Mumbai, Malegaon, Ichhalkaranji, Ahmedabad etc. met at Southern Gujarat Chamber of Commerce and Industry (SGCCI) on Wednesday to discuss and protest the proposed move. They said lakhs of workers would be rendered jobless and small and medium powerloom units will shut down. Puneet Khimasiya, leader of the Bhiwandi Powerloom Association said, “If textile sector is included under RCEP then China would be the major beneficiary. China has about $50 billion worth of finished fabric stock in the factories. Due to the US-China trade war, Chinese are eagerly looking at dumping their cheap fabrics in India.” Kiran Pandya, senior executive from Aditya Birla group said, “China needs a big market like India to dump its products including textiles.” President of the Federation of Gujarat Weavers’ Association (FOGWA), Ashok Jirawala said, “The government is already running Foreign Trade Agreement (FTA) scheme where certain countries are allowed to sell their products in India. There is no need for RCEP in the textile sector. President of SGCCI, Ketan Desai said, “We have started compiling the industry data. A delegation of industry leaders would be going to meet the concerned ministers in the government to oppose the proposed inclusion of textile sector under RCEP”
Source: Times of India
Prime Minister Narendra Modi's vision of making India a $5 trillion economy and a global economic powerhouse by 2024-25 is "challenging" but "realisable", finance minister Nirmala Sitharaman has said, underlining that more reforms are on the anvil before the close of the fiscal year. Delivering a lecture on 'Indian Economy : Challenges and Prospects' at prestigious Columbia University's School of International and Public Affairs on Tuesday, Sitharaman indicated that Indian economy has been on growth trajectory even since the Modi government came to power in 2014. "In 2014, when the National Democratic Alliance (NDA) was voted to power by the world's largest democracy, India was a $1.7 trillion economy. In 2019, India has become a $2.7 trillion economy, having added one trillion US dollars in the last five years. Our vision to become a 5 trillion dollar economy by 2024-25 is challenging, but it is realisable,” Sitharaman said. The lecture was organised by the University's Deepak and Neera Raj Center of Indian economic policies. She also emphasised that a $5 trillion economy will make India a global economic powerhouse moving it from the 7th to 3rd position in terms of current dollar exchange rate. The Modi government has underlined its priorities in the first 50 days of its second term, setting sights on making India a $5 trillion economy and hitting the ground running on spurring growth. "To become a $5 trillion economy, India's GDP needs to go faster than what we grew at an average of 7.5 per cent in the last five years. That's a matter of fact statement. Inflation needs to be at 4 per cent to ensure commensurate increase in purchasing power,” she said, adding that inflation in the last five years was 4.5 per cent and has been on a declining path to reach 3.4 per cent in 2018-19. She stressed that fixed investment rate needs to increase from 29 per cent to 36 per cent in the course of the next five years, with some depreciation of the rupee. "We are well and truly on our way to becoming a $5 trillion economy by 2024-25. A five trillion dollar economy will make India a global economic powerhouse moving us from the 7th to 3rd position in terms of current dollar exchange rate. "However our ambition to become economically strong has been driven more by our desire to become a less poorer nation,” she said. Sitharaman said that in July 2019 when she presented the first budget of the second term of the Modi government, India's GDP had decelerated in four consecutive quarters. “Yet we projected the GDP to grow at 7 per cent in 2019-20, slightly higher than the 6.8 per cent realised in 2018-19. Even when our GDP decelerated in the fifth successive quarter, we did not revise downwards our projections as some institutions around the world have already done," she said. In September this year, government slashed the income tax rate for companies by almost 10 percentage points to 25.17 per cent and offered a lower rate to 17.01 per cent for new manufacturing firms to boost economic growth rate. “The reforms were and will be guided by close scrutiny of growth evidence in the economy. Our mission to become a $5 trillion dollar economy in 2024-25 remains unchanged and further strengthened by our resolve to deliver on the resounding mandate given to us by the largest electorate in the world,” she said. “A critical component of our mission is high levels of investment, driven by the private sector, a larger presence in the global markets, and a lower level of public debt,” she said. Citing figures by the International Monetary Fund, she said it has projected a growth for India at 6.1 per cent for the year 2019-20 with the world growth revised downwards at 3.2 per cent. "We continue to remain one of the fastest growing economies in the world,” she said. She stressed that in an emerging economy, poised for higher growth, “some increase in income inequality is inevitable. India is no exception to this trend.” The poverty headcount ratio in 2011 measured 21.2 per cent of India's population, earning less than $1.90 per day. The World Bank has estimated the level in 2019-20 at 7 per cent and will further decline to 4.6 per cent of the population by the year 2022. "This means that in a decade, we have lifted 168 million people out of actual poverty which I think is a fitting tribute to Mahatma Gandhi, who dreamt of ridding the country of this scourge,” she said. She underlined that India's growth story is not hostage to performance in some quarters alone. "As a big member of the G-20 group of countries, India has already entered the “big league” on the strength of its economic performance and vibrant democracy. Sitharaman further said that the growth impulses in the economy have been buffeted by the winds of trade wars, protectionism and volatility in crude prices, as well as improved supplies that the world is witnessing.
Source: Economic Times
India wants to comply with global sanctions, including US sanctions on Venezuela and Russia, but also needs to maintain its own strength and strategic interests, Finance Minister Nirmala Sitharaman said in an interview on Tuesday. The United States in January imposed the toughest sanctions yet on Venezuela's oil industry. The move has scared away some global customers, but with few alternative suppliers of heavy oil, Indian refiner Reliance Industries Ltd has been buying Venezuelan crude from Russian major Rosneft. The company is set to resume direct oil loadings in the South American nation after a four-month pause. Sitharaman said the Indian government has expressed its view to the United States. "In specific issues which are critical for India's strategic interests, we have explained to the United States that India is a strategic partner for the United States of America and you want a strategic partner to be strong and not weakened," she said. "We value the strong partnership with the USA, but we should equally be allowed to be a strong economy." The International Monetary Fund earlier on Tuesday lowered its outlook for Indian growth in 2019, citing weaker-than-expected domestic demand. The US-China trade war will cut 2019 global growth to its slowest pace since the 2008/09 financial crisis, the IMF said. India's gross domestic product grew at its weakest pace since 2013 between April and June, stoking expectations of further stimulus. "Global headwinds ... are getting stronger by the day," Sitharaman said. Asked about further fiscal stimulus, she said: "I have not closed the door" on that. New Delhi has been trying to boost domestic growth through an infrastructure package and a new loan programme organised with the banking sector that has doled out loans worth over 80,000 crore (8.7 billion pounds), she said. The finance minister defended the government's controversial actions in Jammu and Kashmir in August. India stripped the Muslim-majority portion of the state, which is claimed by both India and Pakistan, of autonomy on Aug. 5. Since then the government has shut off phone networks, imposed curfew-like restrictions in some areas, and arrested thousands, including hundreds of local politicians. The removal of the constitutional article that granted special status to Jammu and Kashmir will boost the region and the country's economic potential, she said. Human rights groups say the crackdown is spreading fear among the local population. For decades before India's recent actions, women, scheduled castes, and nomadic tribes were denied human rights in Kashmir, Sitharaman said. "Where was the global community's human rights concern at that time?"
Source: Business Standard
Textiles Secretary, Ravi Capoor, inaugurated the 48th edition of the Indian Handicrafts and Gifts Fair (IHGF) at the India Expo Centre & Mart at Greater Noidatoday. Overseasbuyers from 110 countries are in India to source home, lifestyle, fashion, furniture and textiles products from around 3200 Indian exhibitors who are participating in the Fair that will be on from 16 – 20 October 2019. Textiles Secretary, Ravi Capoor, while speaking at the inaugural ceremony, urged the organisers of the IHGF-Delhi Fair to make all efforts to ensure that next year the Fair attracts over 10,000 exhibitors. He further said that with the skills of Indian artisans and the crafts heritage of India the handicrafts industry has the potential to achieve greater growth for not only the sector but for the artisans and the exporters and increase the handicrafts exports of India to Rs. 100,000 crore from the exiting Rs. 26,590 crore. Textiles Secretary further said the Export Promotion Council for Handicrafts (EPCH) must explore the possibility of opening handicrafts parks in India and develop those parks as tourism and crafts centres. He welcomed the proposal of EPCH for setting up of handicrafts parks for apparel and handlooms and assured the support of the Textiles Ministry for setting up of apparel and handlooms parks by EPCH. Shifting of the production from small organized units to these parks will be beneficial for the small units as it will reduce overhead costs. He also directed EPCH to include new segments in the IHGF-Delhi Fair for women entrepreneurs and new artisans and also ensure that the handicrafts industry works on a sustainable model where the entire production process will function as a zero waste manufacturing sector. Director General EPCH, Rakesh Kumar, said that effortsare being made by EPCH for sustainable development and preservation of environment by focusing on reduce, reuse and recycle at this edition of the Fair. Around 50 tonnes waste material like plastic, metal, wood and fabric are being reused to enhance and decorateIHGF-Delhi Fair 2019. Director General EPCH further informed that in order to reduce the usage of plastic, the Council has decided to do away with bottled water and instead is offering metal water bottles to the visitors and exhibitors which may be refilled at the water stations spread across the Fair venue. A 3 MW roof top solarenergy panel has been installed in the Fair to minimise carbon emissions. The IHGF-Delhi Fair 2019 will have knowledge seminars on various topics by expert faculties, fashion shows and ramp walks by models wearing fashion jewellery, accessories and utility items sourced from exhibitors at the Fair. EPCH is a nodal agency for promoting exports of handicrafts from the country to various destinations of the world and projecting India’s image abroad as a reliable supplier of high quality handicrafts goods and services. EPCH has set up Handicrafts Carpet Sector Skill Council which has set up the initiative VRIKSH, the Indian Timber Legality Assessment and Verification Scheme, to establish the chain of custody and legality of the wood which has further been mapped with the UN Sustainable Development Goals. VRIKSH ensures, encourages and supports sustainable development and encourages women entrepreneurs.
Source: Orissa Dairy
Farmer and civil society organisations on Wednesday questioned the government about the benefits of the proposed Regional Comprehensive Economic Partnership (RCEP) trade agreement especially when the economy is going through a period of slowdown and there are apprehensions from many sectors. They said various sectors of the Indian economy including agriculture, dairy, services and data would be impacted, going by the leaked texts of the agreement and asked why the government is involved in e-commerce negotiations in the pact when it is opposed to even engaging on the subject at the World Trade Organization (WTO). Stating that major manufacturing sectors are facing serious headwinds, essentially due to sagging domestic demand, the Forum For Trade Justice said: “Acceding to RCEP at this juncture will accentuate the uncertainties and could result in loss of jobs and incomes which the country can ill afford”. We would like to know the sectors that will benefit from RCEP and if the government has done any analysis for this. When India’s own growth is dipping, does it make sense to share it with the others,” said Biswajit Dhar, professor at Jawaharlal Nehru University. He said that India had foregone revenues of $5.3 billion due to preferential rates under FTAs in 2018 and at the same time considering releasing sovereign bonds to get some funds. The Indian economy grew 5% in the first quarter of the current financial year and most multilateral institutions have scaled down the country’s growth forecast for the year. The International Monetary Fund on Tuesday cut India's growth forecast for 2019 to 6.1% % from the 7% made in July and by 1.2% from the 7.3% in April. The key sticking point for India in RCEP is its trade deficit with China which is feared to increase once the pact is in place and has proposed different levels of tariff concessions for China to safeguard its domestic industry from cheap imports. “Tariff differential with China will be meaningless as they can use the rules of origin which allow any product with some value creation in the RCEP region to enter Indian markets duty free,” said Ranja Sengupta of The Third World Network. Dhar said that there are apprehensions about the proposed safeguards and the auto trigger mechanism to check sudden surge in imports. The organisations also highlighted the vulnerability of India’s agricultural sector. “The drastic reduction in import duty and flooding of cheap agricultural produce will negatively impact farmgate prices in India,” said Yudhvir Singh, All India Coordination Committee of Farmers Movements. However, he raised questions at the government’s estimates of milk production and the number of families associated with the dairy sector. “80% of the milk is produced and consumed locally and doesn’t reach the dairy sector. 12 crore families are linked with the sector and not 1.5 crore,” he said.
Investment, e-commerce
The groups also expressed concern at the rules on investment and e-commerce. Referring to a leaked draft of the investment chapter of the agreement, they said Japan wants a ban on caps on royalty payments and technology transfers, something that will be a drain on India’s revenues. They said India is negotiating ‘standstill’ and ‘ratchet’ clauses which mean that the governments have to freeze their current levels of market opening, and if they liberalise more they cannot go back. Moreover, New Delhi is said to be seeking exclusion from ratchet only on the controversial investor state dispute settlement (ISDS) and that too pertains to taxation to avoid cases like Vodafone. “Intellectual property and compulsory license are also investments which are protected in the bilateral investment treaties in ‘public interest exceptions’ but not in RCEP”, they said. On the issue of data localisation, the groups warned that “accepting free global data flows as per RCEP demands is to give up all data policy space and data sovereignty”. India has proposed locating computing facilities inside the country if it is meant to protect its essential security interests and national interests. “Such public policy exemptions have never worked effectively, especially for developing countries,” they cautioned and said that India’s involvement in e-commerce negotiations at RCEP was unexpected as it doesn’t even talk about the subject at the WTO. “India is also said to be showing flexibility in e-transfers and authentication related issues. With China’s presence in the group, all technology flows will get tilted towards China”. On services, the organisations asked if India is ready to accept labour coming from Myanmar, which is an RCEP member.
Source: Economic Times
United States trade representative Robert Lighthizer is likely to visit India within the next two weeks as the two sides work towards resolving their bilateral trade issues. Sources said a limited scope trade deal is on the menu for his visit.This will be the second high-level visit of an American trade official this month. US secretary of commerce Wilbur Ross met commerce and industry minister Piyush Goyal on October 3. The USTR will visit India soon but the dates are yet to be firmed up,” said one official aware of the development. This would be current USTR's first visit to India. India and the US have ruled out any structural reason or major issue holding back a bilateral trade deal, which was expected to be announced during Prime Minister Narendra Modi’s meeting with US President Donald Trump last month. While the two sides have been entangled in a series of trade issues, restoration of Generalized System of Preferences (GSP), price controls on medical devices, duty cuts on Harley Davidson bikes and market access to American agricultural commodities were discussed to be part of the limited scope trade deal. Lighthizer’s visit is crucial as the office of the US trade representative had previously linked market access in the two areas of dairy and medical devices to continuation of GSP and also sought data-related relaxations, including in India’s ecommerce policy. Earlier, there were talks that the GSP reinstatement would be partial because India is not likely to lift the price caps on medical devices.
Source: Economic Times
A high level 37 member FIEO business delegation led by Israr Ahmed, regional chairman, FIEO southern region will be visiting Nairobi and Addis Ababa from November 17 to 22 to explore business opportunities in agriculture, machinery and food processing sector. The programme is organised with the support of International Trade Centre (ITC) Geneva. FIEO is taking the delegation in the background of building on the momentum of the newly ratified African Continental Free Trade Area. This single market in development hosts 1.2 billion people with an aggregate GDP of over $2 trillion and expected to open up new business opportunities for India. The product profile of FIEO delegation comprises agricultural including fruits, vegetables, meat, cereals, dairy, tea, coffee, spices as well as agri-processing technologies, machinery and packaging solutions. The business delegation also aims at providing cutting-edge machinery for food processing, storage and packaging solutions for a variety of agricultural products to Africa. ``At a time when trade tensions and escalating, protectionism are undermining the rules based multilateral system, by initiating this delegation, FIEO intend to help in diversification of trade to unexplored African countries, ‘’ Ahmed said. Trade between Africa and India has increased more than eight-fold from $7.2 billion in 2001 to $62.5 billion in 2018, making India Africa’s fourth-largest national trading partner, accounting for more than 6.4 percent of total African trade in 2018, up from 2.7 percent in 2001.
Source: Economic Times
A group of 45 nations including India and China has insisted that countries must be allowed to make their own assessments regarding their developing country status. In a submission to the World Trade Organization (WTO), which is to be taken up for discussion this week at the General Council, they pushed for continuation of developing countries’ unconditional rights to special and differential treatment (S&DT) in rules and negotiations. The submission comes amid the US working on new rules to end benefits enjoyed by developing countries at the WTO. S&DT are special provisions for developing countries, which allow them more time to implement agreements and commitments, including measures to increase trading opportunities, safeguard their trade interests, and support to build capacity to handle disputes and implement technical standards. The coalition, including Cuba, Oman, Bolivia and the African Group, warned that “any unilateral action depriving developing members including LDCs of treaty-embedded rights would be inconsistent with members’ obligations... cause lasting and systemic damage to the trading system”. The paper floated by India has found support from many developing countries, said sources aware of the submission. In July, US President Donald Trump had directed his administration to change rules in the next 90 days to prevent “self-declared developing countries from availing themselves of flexibilities” in global trade. He said nearly two-thirds of the members of the multilateral trade body have been able to avail special treatment and take on weaker commitments by designating themselves as developing countries. The countries also cautioned that attempts to water down these principles would be a recipe for “intractable deadlock at the WTO, including in the negotiations on fisheries subsidies”. The countries also cautioned that attempts to water down these principles would be a recipe for “intractable deadlock at the WTO, including in the negotiations on fisheries subsidies”. They said that developing countries need S&D to access and benefit from international markets as they face more serious challenges compared to developed countries. “As a result, S&D is an unconditional and treaty-embedded right that has been provided to all developing countries... The WTO allows developing countries to make their own assessment about their development status,” they said. They also reaffirmed that existing S&D provisions must be upheld and provided in current and future negotiations.
Source: Economic Times
Better implementation of Sexual Harrassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013 among the issues discussed. A State-level roundtable conference on improving safety measures for women employees working in textile industries in Tamil Nadu was organised in the city jointly by Tamil Nadu State Commission for Women and Community Awareness Research Education Trust (CARE-T).The event was inaugurated by Kannegi Packianathan, chairperson of the commission. The State has over 2,000 textile mills and 4,000 garment and textile supply chain units with an estimated 4 lakh women employees. There have been reports and data that show that many women workers suffered verbal, physical and sexual violence. However, many are not reported. A release pointed out that the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013 is a powerful tool to address workplace violence against women. “The law clearly states that any workplace with more than 10 women should have an internal complaints committee. Unless there is serious implementation of the standards and local law, it is tremendously difficult to address these issues,” read the release. The roundtable also stressed the need for working together to find effective long term solutions and strategic action plan for implementation of internal complaint committees at workplace, hostels, and other safety measures for women workers in textile supply chain in the state.
Source: The Hindu
Mahatma Gandhi and his legacy of 'Swadeshi' movement were at the centre as fashion designers from India and Bhutan came together on Wednesday to celebrate the textile heritage of the two countries here. The presentation at the Royal Textile Academy (RTA), organised by the Embassy of India in Thimpu celebrate the 150th birth anniversary of Gandhi and the friendship between the two nations, saw designers from India and Bhutan showcase their creations in Khadi and Thagzo Ambassador of India to Bhutan, Ruchira Kamboj started the evening by welcoming the members of the Royal family of Bhutan – Queen mother Ashi Sangay Choden Wangchuk, Princess Euphelma Choden Wangchuk and Ashi Dekhi Yangzom Wangchuk, along with Prime Minister of Bhutan Lotay Tshering, other ministers and Khadi and Village Industries Commission (KVIC) chairman, Vinai Kumar Saxena. Kamboj said the initiative will further deepen the already strong partnership between Indian and Bhutan. "Tonight, we honour our countries through collaboration, our people with compassion and our remarkable friendship through art...The night is not just about glorious textile presentation but also about the opening of new collaborations," she said. Organised with the support of India's Ministry of Micro, Small & Medium Enterprises (MSME) and the Fashion Design Council of India (FDCI), the event commenced with a soulful rendition of Gandhi's favourite bhajan "Vaishnav jan to tene kahiye" by renowned Rajasthani folk artiste Samandar Khan and his troop. The presentation started with four leading Bhutanese designers – Chandrika Tamang, Kencho Wangmo, Tshering Choden and Sangay Choden showcasing their collection, an amalgamation of their traditional weaves and Khadi, provided to them by the FDCI. Tshering’s range, in white and maroon, was a contemporary take on the country's traditional clothing, while Sangay’s creations were in white with Bhutanese weaves adding a touch of colour. Kencho again opted for whites with a hint of beige, but her silhouettes from the mountains of Bhutan made a perfect choice for a beach vacation. The first half of the textile presentation ended with Chandrika showcasing her collection. She chose yellow, the royal colour of Bhutan, to celebrate sustainability. Her creations were an appealing mix of contemporary Indian silhouettes adorned by Bhutanese patterns and weaves. The beautiful RTA building, one of the most visited tourist spots in Thimpu, acted as a magical background for the show, which was carried forward by Indian designers – Rajesh Pratap Singh, Anamika Khanna and Samant Chauhan Singh presented his signature modern designs craed on worthy gowns in beige. Anamika, the only female Indian designer showcasing at the event, brought her contemporary versions of Indian drapes to Bhutan. FDCI chairman Sunil Sethi said the presentation is not a one-time aair and he is looking forward to many more collaborations between the two countries. "We have a lot of plans to carry this initiative forward. We are planning to have a Bhutanese stall and India Fashion Week in March next year," Sethi told PTI. Chef Akshay Kumar had created a wholesome Satvik cuisine, especially curated for the event, from the spiritual city of Varanasi.
Source: Deccan Herald
The CEA further said the slowdown in the economy is due to a decline in investment, which is a key driver Chief Economic Advisor K V Subramanian on Wednesday called upon the industry to start making investments, stressing that the fundamentals of the economy are "very very strong".On more than Rs 40,000 crore of dues pending to small companies, he nudged large corporates to ensure timely payment to the MSME sector as small players are dependent on cash flows. Large companies must play a critical role in clearing cash dues to smaller companies, he said at an event organised by industry chamber Ficci being attended by several corporates. Finance Minister Nirmala Sitharaman on Monday had said that according to returns filed by large corporates to the Corporate Affairs Ministry, as much as Rs 40,000 crore was due to the MSME sector. The CEA further said the slowdown in the economy is due to a decline in investment, which is a key driver. Corporates must recognise that in a slowdown labour is available cheaper and so it is the time to make investments, Subramanian said and added investment must be made from a long-term perspective. "The government has been at its toes addressing various aspects of the economy," he said. The CEA said the "fundamentals of the economy are very very strong...fundamentals of the economy have not changed" and it would be back on the 7-8 per cent growth path. Earlier this month, the Reserve Bank of India sharply cut its economic growth projection for this fiscal to 6.1 per cent from 6.9 per cent earlier. The central bank's estimates come in the wake of GDP growth sliding to a six-year low of 5 per cent in the June quarter, on a massive slowdown in consumption and private sector investments. As against India's real growth rate of 6.8 per cent in 2018, the IMF in its latest World Economic Outlook on Tuesday projected India's growth rate at 6.1 per cent in 2019 and noted that the Indian economy is expected to pick up the next year at 7.0 per cent in 2020. On Sunday, the World Bank in its latest edition of the South Asia Economic Focus said India's growth rate is projected to fall to 6 per cent in 2019 from 6.9 per cent of 2018.
Source: Business Standard
The skills development ministry, on Wednesday, said that state governments and industry has together committed to train 7 lakh apprentices in the current fiscal at the just concluded 15-day apprenticeship pakhwada organised by the skills development ministry. “The industry has committed to engage 4.5 lakh more apprentices with States committing another 2.5 lakh apprentices,” skills development ministry said. MSDE has pledged Rs 560 crore to state governments to promote demand-driven and industry-linked skill development and signed 22 MoUs with various states through third party aggregators (TPAs). The number of apprentices has almost doubled after the 15-day Pakhwada. In 2016, government had introduced comprehensive reforms to the Apprenticeship Act, 1961, a move that saw about 7.5 lakh apprentices engaged in a span of two-and-a-half years. As many as 8 PSUs including Bharat Heavy Electrical Limited (BHEL), Cochin Shipyard, Gas Authority of India Ltd (GAIL), Indian Tourism Development Corporation (ITDC), International Trade Promotion Organisation (ITPO), Rashtriya Ispat Nigam Ltd (RINL) committed to train about 35,000 apprentices. Additionally, Hindustan Petroleum Corporation Ltd (HPCL) signed an MoU with NSTI Mumbai to train solar technicians for sustainable energy sector. “It is important to understand and map the demand for skilling programs in SME cluster associations in growth areas and industries, especially in the rural, agricultural and tribal areas of the country. In fact, we need to reduce our dependence on imports and move towards growing skills in traditional skills that will inch us closer to realizing the ambition of creating a five-trillion dollar economy,” MSME minister Nitin Gadkari said. “Apprenticeship can provide hands-on training to candidates and provide a better industry exposure to help them gain confidence in a working environment. New job roles will need new skill sets and it is therefore important to inspire the youth to equip themselves with industry-relevant skill sets,” skills development minister Mahendra Nath Pandey said.
Source: Economic Times
India is taking a fresh look at security protocols to be followed by foreign direct investors as concerns rise over money coming in from countries that New Delhi has sensitive ties with and monitors closely. The Department for Promotion of Industry and Internal Trade (DPIIT), the finance ministry’s department of revenue and the home ministry are holding discussions on the matter, said people with knowledge of the matter. The review comes amid the rising trend of FDI being screened worldwide. The EU recently adopted a screening framework on the grounds of security and public order. The US has stepped up scrutiny of Chinese investments in the country amid a trade war over concerns about acquisition of American assets. Under the heightened oversight, the framework for disclosures made to the RBI could be enhanced for better capturing FDI inflow data and source of funds, especially in sectors on the automatic route. The DPIIT is also in talks with security agencies to determine whether existing safeguards need to be stepped up.
‘Some Concerns’
“There are some concerns,” said a senior official aware of the deliberations. “We are looking at the constituents of the security protocol… What needs to be done.” India has widened the opening for FDI, allowing overseas money into most sectors through the automatic route, having abolished the Foreign Investment Promotion Board (FIPB) in 2017.
Source: Economic Times
Fifteen heavyweight companies have accumulated MAT credit in excess of Rs 1,000 crore each. Vast swathes of Corporate India may not be in a hurry to shift to the new corporation tax regime. Ninety-nine companies, which also include some unlisted ones, have more than Rs 100 crore each of minimum alternate tax (MAT) credit on their books, cumulatively adding up to Rs 75,000 crore. Of these, 15 heavyweights such as NTPC, Reliance Industries, Bharti Airtel, Vedanta, and TCS have MAT credit in excess of Rs 1,000 crore each. “By utilising MAT credit, many companies will be able to bring down their effective tax cost to 17.47 per cent from 25.17 per cent (under the new regime), leading to substantial tax savings of about 8 per cent,” said Saumil Shah, partner, Dhruva Advisors. “Only those companies whose effective tax cost is higher than 25.17 per cent will shift to the new regime.” MAT credit is the difference between the tax the company pays under MAT and the regular tax, and is allowed to be carried forward for a period of 15 financial years. According to experts, infrastructure companies as well as those from sunrise sectors such as telecom, IT, and renewable energy are likely to maintain the status quo owing to the substantial MAT credit on their books and the tax holidays enjoyed by them in the past. A third of the 850 top CRISIL-rated companies surveyed – from capex-heavy sectors such as power and oil & gas – have expressed a desire to continue with the current tax regime, CRISIL said in a note on Tuesday. “The MAT rate has reduced irrespective of whether you come under the new tax regime or not. So, if you were to defer your migration to the new regime, you still pay only 17.16 per cent tax under MAT (as opposed to 21.16 per cent until March 31, 2019). By doing so, the company may not be required to write down the MAT asset,” said Bhavin Shah, leader, financial services tax, PwC India. Companies that are mainly into exports may also eschew moving to the new regime. “If a company has more of local business for which it is not claiming any incentives, it can set up a new company for its local business and benefit from the new 25 per cent tax rate. However, it can let the export part of the business remain in the old company,” said Rajesh Gandhi, partner, Deloitte India. “For large corporate groups like ourselves, it will continue to be attractive to stay with tax holidays and additional depreciation benefits as we have invested very heavily in capex,” Pallavi Joshi Bakhru, group head taxation, Vedanta, had told Business Standard earlier this month. Companies in the highest effective tax rate of 34.94 per cent — including banks, NBFCs, and FMCG majors — would move to the new regime as they would get 9 per cent benefit. Those from sectors such as auto, chemicals, textiles, gems & jewellery, and retail are also likely to shift. Manufacturing companies and those into sole proprietary businesses may want to set up a new company to take advantage of the lower tax rates. These companies, however, have to ensure that they set up a new business for getting the lower rate of 15 per cent and not just transfer business from an existing company, experts said. “Companies in the highest tax bracket wanting to move to the new regime would need to be aware that MAT credit, brought forward losses in account of any tax holidays or R&D benefit and additional depreciation would be lost and may require re-computation of past tax returns to determine losses or depreciation available,” said Saumil Shah. The Central Board of Direct Taxes (CBDT) clarified earlier this month that companies would not be allowed to adjust the MAT credit against their tax liabilities if they opted for lower corporation tax rates. They will also have to let go of incentives under special economic and tax-free zones. Companies opting for the new regime can’t go back to the old one. MAT is akin to an advance tax. The concept of MAT credit was re-introduced in 2005 with a carry forward mechanism of five years. This was subsequently increased to 10 years, and to 15 years in 2018.
Source: Business Standard
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1021.31 |
USD/Ton |
0.21% |
10/16/2019 |
|
VSF |
1515.72 |
USD/Ton |
-0.09% |
10/16/2019 |
|
ASF |
2167.63 |
USD/Ton |
0% |
10/16/2019 |
|
Polyester POY |
1034.02 |
USD/Ton |
-1.35% |
10/16/2019 |
|
Nylon FDY |
2330.79 |
USD/Ton |
-0.60% |
10/16/2019 |
|
40D Spandex |
4082.41 |
USD/Ton |
0% |
10/16/2019 |
|
Nylon POY |
1158.33 |
USD/Ton |
-1.20% |
10/16/2019 |
|
Acrylic Top 3D |
2542.68 |
USD/Ton |
0% |
10/16/2019 |
|
Polyester FDY |
5339.63 |
USD/Ton |
0% |
10/16/2019 |
|
Nylon DTY |
1271.34 |
USD/Ton |
-1.10% |
10/16/2019 |
|
Viscose Long Filament |
2182.47 |
USD/Ton |
0% |
10/16/2019 |
|
Polyester DTY |
2302.54 |
USD/Ton |
0% |
10/16/2019 |
|
30S Spun Rayon Yarn |
2133.03 |
USD/Ton |
-0.33% |
10/16/2019 |
|
32S Polyester Yarn |
1624.49 |
USD/Ton |
0% |
10/16/2019 |
|
45S T/C Yarn |
2415.55 |
USD/Ton |
0% |
10/16/2019 |
|
40S Rayon Yarn |
1779.88 |
USD/Ton |
0% |
10/16/2019 |
|
T/R Yarn 65/35 32S |
2274.29 |
USD/Ton |
0% |
10/16/2019 |
|
45S Polyester Yarn |
2429.67 |
USD/Ton |
0% |
10/16/2019 |
|
T/C Yarn 65/35 32S |
2020.02 |
USD/Ton |
0% |
10/16/2019 |
|
10S Denim Fabric |
1.25 |
USD/Meter |
0% |
10/16/2019 |
|
32S Twill Fabric |
0.69 |
USD/Meter |
-0.20% |
10/16/2019 |
|
40S Combed Poplin |
0.96 |
USD/Meter |
0% |
10/16/2019 |
|
30S Rayon Fabric |
0.57 |
USD/Meter |
0% |
10/16/2019 |
|
45S T/C Fabric |
0.66 |
USD/Meter |
0% |
10/16/2019 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14126 USD dtd. 16/10/2019). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Pakistan and Egypt on Wednesday agreed to work out measures for capturing untapped economic potential and promoting bilateral trade. The decision took place at the first meeting of the Pakistan-Egypt Joint Working Group (JWG) on Trade held in the capital. The JWG was established at the sidelines of Pakistan-Egypt trade conference held in Islamabad on Wednesday. On the occasion, the Ministry of Commerce and Egyptian Commercial Service signed a Memorandum of Understanding (MoU) for the establishment of the JWG on trade. The Pakistan delegation was led by Secretary Commerce Ahmed Sukhera while Egypt was represented by First Undersecretary of Egyptian Commercial Service Ahmed Anter. The two sides emphasised on the relative importance of Pakistani-Egyptian trade and economic relations as well as enhancing the current trade volume. According to the minutes of the JWG meeting, it was agreed to enhance trade in key sectors including agricultural products, engineering industries (electrical apparatuses and power appliances), construction and building materials, fertilisers and chemicals, textiles and leather products, medical and surgical instruments and pharmaceuticals was reached. Both sides agreed to enhance trade promotion efforts by signing an MoU between Trade Development of Pakistan (TDAP) and Egyptian Commercial Service, organisation of Single Country Exhibition in Cairo and Karachi and frequent exchange of delegations and participation in each other’s International trade fairs. At the sidelines, business to business meetings were arranged between Egyptian and Pakistani businessmen. Meanwhile, the Ministry of Commerce and Textile organised a Pakistan-Egypt Trade Conference in Islamabad. It was the first of a series of such conferences planned with African countries under the ‘Look Africa Policy Initiative’ of the ministry. Addressing to the Egyptian delegation, the Adviser to the Prime Minister on Commerce, Razak Dawood expressed the desire to make the trade relations commensurate with the political relations. The adviser emphasised export potential of Pakistan in sectors including engineering goods, rice, agro-processed products, surgical, pharmaceutical and sports goods. He also highlighted the investment opportunities available in Pakistan especially in engineering sector. During the conference, Sukhera announced details of the ‘Look Africa Policy Initiative’ of the government and relocation of six commercial sections to Africa in Egypt, Algeria, Senegal, Ethiopia, Tanzania and Sudan.
Source: The Dawn
To meet the needs of future generations, fundamental change in the way we use natural resources is necessary. Current global resource extraction patterns are inconsistent with internationally agreed goals to limit global average temperature increases to below 1.5 ° C above pre-industrial levels. Redirecting to a sustainable growth direction would require significant changes in both the productive use of primary resources and a significant degree of primary resource replacement with secondary materials – those obtained from waste streams and reused or reconditioned for further use. The definition of ‘ circular economy ‘ is increasingly becoming a new robust growth model. A circular economy is one where goods and services are recycled, repaired and reused instead of disposed, and waste from one industrial process becomes a prized input into another. The design and optimization of resource ‘ loops ‘ across value chains can help meet the material needs of growing populations by drastically lower levels of primary resource use per capita. The concept of circular economy is now a fundamental component of both the 2050 Long-Term Strategy for the EU to reach a climate-neutral Europe and the five-year plans for China. Japan placed the circular economy as a priority for the G20 Summit in 2019. In contrast in our country Pakistan, given significant development and political progress, inadequate attention has been paid to circular economy pathways and the same situation prevails in other developing countries. Structural and political conditions, as well as the faster pace of growth and industrial development, would demand different strategies to those implemented in developed countries; for example, the agricultural sector has so far received minimal attention in global circular economy discussions, but will need to play a central role in the circular economy pathways of developing countries. Innovation is already occurring in developing countries, in the agricultural sector and well beyond, and policymakers in developing countries are starting to implement aggressive policies for more resource-efficient and circular industrial growth patterns. The circular economy presents the conventional manufacturing-led growth model with a compelling alternative strategy for industrial development and job creation. The circular economy remains mainly recognized as a tool for waste management and recycling, but the economic opportunities are much wider and more complex. The adoption of this model could provide new business opportunities for economic differentiation, value creation and skill development with the right supporting conditions. Developing countries like Pakistan should take advantage of the new economic opportunities in a strong position. A wide informal industries are already involved in’ circular’ practices-for example in areas such as electronic waste (e-waste) and telephone repairs -and could engage in supply chains with higher-value circular economy. Therefore, with appropriate investment, developing countries can’ leapfrog’ developed countries to incorporate sustainable production and consumption at the core of their economies in digital and material innovation. A transition to a circular economy carries with it some trade-offs that need constant monitoring. In the absence of a systematic and strategic approach to the circular economy at national or international level, there is a danger that under the circular economy umbrella companies will pursue perfunctory-or, at worst, negative-practices that discourage more efficient and higher-value use of content. For example, waste-to-energy projects using under-standard waste disposal methods may carry environmental and human health risks and may also rely on more suitable waste sources for previous-life goods. Exchange-offs may also occur where circular proposals suggest major industrial policy shifts: in mineral-intensive economies, for instance, circular strategies may promote value-added, but may also threaten job losses among those working in resource extraction and basic processing. Circular economy’s progress in developing countries will be important in ensuring sustainable growth for global efforts. Developing countries will already be global production centers and are expected to become major market drivers. Progress now in incorporating circular concepts in industrial growth and strategies for infrastructural development will help meet the needs of rising and rapidly expanding populations while balancing against a continuing increase in primary resource usage, related emissions, and pollution. For instance, the CE can help deliver quality housing and infrastructure at low economic and environmental costs by following flexible, responsive and resilient design principles. Circularity in international value chains and the governance and investment structures needed to enable a global circular economy need to be given greater attention. In 2015, East African countries imposed a ban on secondary textile imports to protect their domestic industries, worried about China’s entry into the market of large volumes of cheap second-hand clothes. The ban was replaced by an import tax after the US threatened retaliation, but the episode demonstrated how, if not carefully managed, trade in secondary materials could lead to conflicts with conventional sectors and between countries. And the implementation of a complete ban on solid waste by China in 2018 brought to light the importance of creating integrated, open supply chains in waste and secondary materials if hazardous waste disposal activities are to be avoided and circular economy value chains are to emerge on a scale. In order to agree on common rules and standards for international circular value, greater cooperation is needed at global level. There is an immediate need to extend the global circular economy conversation to include developing countries and to invest political and financial capital in promoting an inclusive, global circular economy growth. Governments in developed countries have an important role to play in fostering meaningful dialog on how best to manage the global complexities of circular economy policies. Support from international agencies such as the UN Industrial Development Organization (UNIDO) and the UN Environment Programme (UNEP) will be critical to facilitating the piloting of circular economy solutions among small and medium-sized enterprises (SMEs) in developing countries and along international value chains to demonstrate the viability of cross-border circular value chains at scale. And proactive engagement by multinational companies with suppliers in developing countries – including SMEs and those operating in the informal sector – will be necessary for circular activities to be scaled up in a manner that is inclusive and avoids the displacement of vulnerable workers. Therefore, in order to conclude I believe action is required on three fronts firstly by aligning the circular economy with current technology policy priorities. To incorporate the circular economy into high-level business policies and policy planning, decision-makers need trust that circular economy solutions are aligned with sustainable development priorities, including promoting stable economic growth and providing the most vulnerable people with opportunities. National governments in developing countries must recognize synergies between the circular economy and existing national plans and conduct an analysis of the scope of opportunities for transition to a circular economy through key economic sectors. Governments of donors must embrace the circular economy as an industrial development tool in developing countries and raise funds to support the innovation and expansion of circular economy. Secondly, there is need for continuity to invest in the basics in developed countries to support the transition to the circular economy. There will be a need for effective governance mechanisms, inclusive policies and collaborations at national, regional and international level to create an enabling environment for testing and rolling out circular economy activities. Thirdly, there should be support for an inclusive international circular economy strategy that encourages cooperation and partnership. Trade and cooperation are key ingredients in speeding up the circular economy in developing economies, and leveraging foreign investment will rely on harnessing opportunities for innovation.
Source: The Daily Times
The fight could set up a "domino effect" for smaller economies, according to a second IMF official. Trade tensions between the United States and China — the world’s two largest economies — are a significant source of risk for the global economy, with “real spillover effects” for emerging markets, top IMF officials said on Wednesday. Tobias Adrian, director of the monetary and capital markets department of the International Monetary Fund, told reporters the tit-for-tat trade war between Washington and Beijing had a significant impact on financial markets over the past two years. The fight could set up a "domino effect" for smaller economies, according to a second IMF official. "We urge policymakers around the world to continue to work together in order to resolve those trade tensions as that is significant source of uncertainty and a significant source of creation of downturn risks," he said. "There are real spillover effects for emerging markets." The IMF's chief economist, Gita Gopinath, on Tuesday welcomed a preliminary and partial trade agreement reached last week by Washington and Beijing and urged continued work by both sides to end trade tensions that have weighed on global growth and business confidence. She said global gross domestic product would be reduced by 0.8 per cent if Washington and Beijing imposed the additional tariffs in October and December, but only 0.6 per cent if the two countries forgo the additional increases.
Source: Reuters
Leading resource-based manufacturing group Royal Golden Eagle (RGE) has announced plans to invest US$ 200 million over the next 10 years into cellulosic textile fibre R&D. The investment, revealed ahead of the Textile Exchange Sustainability Conference in Vancouver, will support solutions in alternative cellulose or plant-based feedstock and closed-loop manufacturing. “This is a strategic business growth area for RGE. Our integrated portfolio of companies across pulp, fibre and yarn production puts us in a unique upstream position in the textile value chain to realise commercial scale and affordable solutions that support downstream manufacturers and brands. We aspire not just to be the largest viscose producer but also to be a leader in sustainable textile fibre production through innovation,” said Bey Soo Khiang, Vice Chairman of RGE.
Partnerships
Through its business groups Sateri in China and Asia Pacific Rayon (APR) in Indonesia, Singapore-based RGE is the world’s largest viscose producer with a total annual production capacity at 1.4 million tonnes. Sateri and APR source wood-based dissolving pulp from sustainably managed renewable plantations in Indonesia and Brazil through RGE-managed companies, APRIL and Bracell. “Sateri is proud to be part of this long-term commitment that RGE has made. We look forward to supporting and scaling up solutions that can help Sateri produce even more sustainably and deliver high quality and affordable products to our customers,” commented Allen Zhang, President of Sateri. Through partnerships with innovators and in-house research and development, several initiatives are already underway. In August 2019, RGE invested in Finnish start-up Infinited Fiber Company (IFC) to scale up its technology. A 500-ton pre-commercial plant in Finland and customer training centre will be ready by early 2020. “Infinited Fiber technology fits perfectly in RGE’s shift for using alternative feedstocks. Our ability to use a diverse range of feedstock, especially mixed textile fibres, is a technological breakthrough, and as RGE’s strategic partner we look forward to support their change,” said Petri Alava, CEO of IFC.
Opportunity to innovate
In May, an MoU was signed with re:newcell for technical cooperation and trials on production of viscose using recycled cotton, with the aim of industrial scale production by 2025. “We are very happy about adding Sateri, a world-leading fibre producer, to our group of validation partners for scaling up circular raw materials for fashion. Cooperation between many actors in the value chain is crucial to achieve significant positive impact in this industry,” said Patrik Lundström, CEO at re:newcell. RGE has also commenced partnership discussions with Fashion for Good, whose Innovation Platform is, at the core of its efforts, focused on sparking and scaling technologies and business models that have the greatest potential to transform the fashion industry. “As the world's largest viscose producer, RGE is uniquely positioned to implement and scale our innovator's solutions across its global portfolio. There is a huge opportunity to innovate in the area of next-generation fibre solutions. The potential for change is enormous,” commented Katrin Ley, Managing Director, Fashion for Good. In addition, RGE’s in-house R&D teams conduct research on alternative cellulosic feedstock, such as agricultural waste and recycled cotton, as well as closed-loop manufacturing for viscose production, in collaboration with leading universities and global R&D centres.
Source: Innovation in Textiles
