The due dates for GSTR-9 and GSTR-9C for FY18 have been extended in a staggered manner for different groups of states to 5 and 7 February, 2020, said Central Board of Indirect Taxes & Customs. CBIC mentioned on Twitter the new dates for different groups of states. The new due date for Chandigarh, Delhi, Gujarat, Haryana, Jammu and Kashmir, Ladakh, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh, and Uttarakhand is now 5 February, 2020. The states of Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Puducherry, Sikkim, Telangana, Tripura, West Bengal, Andaman and Nicobar Islands, Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Dadra and Nagar Haveli and Daman and Diu, Goa, Himachal Pradesh,Jharkhand, Karnataka, Kerala, Lakshadweep, Madhya Pradesh, Maharashtra and Other Territory will have to now file by 7 February, 2020. This is the second extension in due dates since 31 January, 2020 when the GSTN portal had crashed. Following a barrage of embarrassing complaints about the GST portal not working and lakhs of returns pending, CBIC had extended the dates for filing GSTR-9 and GSTR-9C forms for three days. "Considering the difficulties being faced by taxpayers in filing GSTR-9 and GSTR-9C for FY 2017-18 it has been decided to extend the due dates in a staggered manner for different groups of states to 3rd, 5th and 7th February 2020 as under. Notifications will follow," CBIC had said. Accordingly, the earlier deadline for the taxpayers in the states of Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Puducherry, Telangana and Andhra Pradesh would have ended today.
Source: Live Mint
Initial discussions on with some countries like Australia, New Zealand. The possible free trade pacts being explored by India with some of the individual members of the Regional Comprehensive Economic Partnership (RCEP) bloc like Australia, South Korea and Japan, are unlikely to be as ambitious as the original agreement being negotiated with the 16-member group. “We don’t want the same problems that we had with the RCEP to get reflected in new pacts which we may get into with some of the members individually. That is why it makes sense for us to not go for very high levels of opening up,” a person close to the development told BusinessLine. Countries such as Australia, New Zealand, South Korea and Japan are among the first ones with which India is ready to consider individual agreements to begin with, the official said. India walked out of the proposed RCEP that it was negotiating with 15 others, including the 10-member ASEAN and China, in November 2019 as it could not agree on crucial issues including the level of market openings being demanded by members, especially China, and the lax Rules of Origin (ROO) that it was uncomfortable with. As part of the agreement, India would have had to eliminate import duties on 80-90 per cent items over a period of time for which the country’s industry and farmers were not prepared. Although difficulty in offering market access to China was one of the main reasons behind India’s decision to quit RCEP, there were other problem areas too related to other member countries. For instance, members were insisting on inclusion of sensitive items such as dairy products and wheat in the FTA, which would have hurt lakhs of farmers in the country. “For countries such as Australia and New Zealand, items like dairy and wheat are very important. In fact, dairy exports is a major foreign exchange earner for New Zealand. India’s sensitivities, which showed up in the RCEP negotiations, would remain even in the individual pacts. So, it has to be careful,” the official said. India, however, has not yet officially closed its doors on the RCEP. According to the Ministry of External Affairs, if the RCEP members offer India a deal that takes care of all its concerns, it could consider getting back to the negotiating table. It was difficult for India to take a decision on exiting the RCEP, as once implemented it could be the world’s largest free trade bloc. All 16 countries together account for 39 per cent of global GDP, 30 per cent of global trade, 26 per cent of global foreign direct investment flows and 45 per cent of the total population.
Source: The Hindu Business Line
In order to implement the vision of the Prime Minister of India, Narendra Modi to convert each district into an export hub the Finance Minister in her Budget 2020-21 speech said that each district should develop as an export hub. She further said that efforts of the Centre and State Governments are being synergised and institutional mechanisms are being created. The Ministry of Commerce and Industry through Directorate General of Foreign Trade (DGFT) has been engaging with States/ UTs to initiate preparation and implementation of a District Export Plan (DEP) specific to each district in every State/ UT through an institutional structure at the district level. The institutional structure set up at the district level for implementation of the District Export Plan will be headed by the Chief/ District Development Officer with other relevant District Level Officers as members. The DGFT is also developing a portal that may be accessed on the DGFT website to enable the States to upload all information related to the products with export potential of every district. The preliminary exercise for the preparation of a DEP will include an assessment of a district to identify the current export profile and its further potential in the district. All key officers related to agriculture, horticulture, livestock, fisheries, handicrafts, handlooms and industry in the district and also the Lead Bank Manager will work towards the participation of key Export Promotion Councils, Quality and Technical Standards Bodies, Government of India departments like MSME, Heavy Industry, Revenue and Textiles will be part of the initial meetings. The initial meetings will be held under the Chairmanship of the Chief/ District Development Officer. Secretary, Commerce and Industry held a meeting on 9th December last year with representative of all States/ UTs in New Delhi to synergise the efforts of the State/ UT Governments with those of the Department of Commerce and DGFT. Department of Commerce has mandated the Regional Authorities (RAs) of DGFT to work with the State Governments and District Level Officers including GM-DIC, Lead Bank Managers to promote each district as an export hub. Department of Commerce has also suggested to concerned state agencies including the district administration, District Industries Centres and the local Chambers of Industries to provide necessary support to this initiative. The DGFT RAs will act as a facilitator in promoting each district as an export hub and has drawn up a list where the products with export potential have been identified by them. The identification process is still ongoing. The District Export Plan will include the support required by the local industry in boosting their manufacturing and exports with impetus on supporting the industry from the production stage to the exporting stage. Informative material on various incentives provided by the Government of India and the respective State Government of exporters will be disseminated to the industry and other potential exporters. The DEP will also include strategy to enhance logistics and infrastructure at the district level and better utilization of the Market Access Initiative (MAI) Scheme of the Department of Commerce for inviting foreign buyers under reverse buyer-seller meets at the district level, suitably gathering district level commodity and services exports data including through GSTN and Customs ICEGATE System and publishing District Export Matrix for each district on a quarterly basis by the State Government. Relevant budgetary support to the DGFT RAs will be provided to make outreach at district level and prepare DEP. State/ UTs Government will be assisted in preparing an annual “Export Ranking Index” of different districts in a particular State/ UT to rank each district on its export competitiveness. Nine States/ UTs have notified the constitution of a State Level Export Promotion Committee (SLEPC). The States/ UTs that have notified the constitution of the SLEPC are Delhi, Uttarakhand, Tamil Nadu, Telangana, Karnataka, Himachal Pradesh, West Bengal, Tripura, Maharashtra, Goa and Gujarat. In order to prepare a district wise export data efforts have been made by DGFT and DGCI&S to look into the feasibility of preparing district level export data from the existing set up. The products identified, which has export potential, from the 750 districts in the country are leather articles, sand and stone articles, spices, garments, wool, food products, ceramics, cement, silk, carpet, glass items, metal crafts, sports goods, pharmaceuticals, engineering goods, auto parts, poultry products, vegetables, cut flowers, forest produce, bamboo products and scientific instruments.
Source: Press Information Bureau
While it will improve cost efficiencies in the textile industry, manufacturers of this key raw material may see their margins getting squeezed. Polyester or synthetic yarn could get cheaper with the Union Budget ending the anti-dumping duty on Purified Terephthalic Acid (PTA), a key input. The petrochemical is imported from Iran, China, Indonesia, Malaysia, Korea, Taiwan and Thailand. China has added huge capacity in recent quarters and there is possibility of cheaper import from there after removal of this duty. The finance minister justified the move as in the public interest and to make it available at competitive prices, for unlocking the textile sector’s portential. India’s PTA demand for domestic purposes is estimated at seven million tonnes (mt) a year. Almost half of it is imported. The duty was to protect domestic manufacturers Reliance, Indian Oil and Materials Chemicals & Performance Intermediaries. Says K Ravichandran, senior vice-president at ratings agency ICRA: “Removal of the Anti Dumping Duty (ADD) will put pressure on the realisation of domestic PTA manufacturers and lead to accelerated imports, at a time when the market is facing a glut emanating from large capacity additions in China recently. As a result, the spread between PTA and paraxylene should drop to below $100/tonne in the near term. This spread had already started correcting in the last few quarters to $110-$120/tonne, from levels of $180/tonne a year ago. This will be a credit-negative for standalone PTA manufacturers; integrated petrochemicals manufacturers should be able to withstand the squeeze.” Polyester yarn prices in India were relatively high in a sluggish economy due to high input cost, including PTA prices. Rakesh Biyani, president of the Clothing Manufacturers Association of India, said removal of the duty could open up the manmade fibre value chain, benefiting technical textiles, home furnishing, the sportswear industry, sarees and dress materials. “The domestic sports gear industry was not getting proper support in 15-20 years, leading to lot of factories getting closed. There is a huge gap in terms of sports gear manufacturing capabilities between India and other countries. Removal of anti-dumping duty on PTA will boost the morale for domestic industry, which works on volume — every penny matters,” said Arun Pandey, founder of 'Seven by MS Dhoni' sports brand and chairman of the Rhiti Group. O P Lohia, chairman at Indo Rama Synthetics, says this augurs well for the industry at a time when annual export are more or less stagnating at $36 billion. “Because of high input cost, the industry was facing cheaper competition from other destinations, like Bangladesh. The move will now help create jobs and push up exports. PTA availability has been an issue and the industry was running hand-to-mouth.”
Source: Business Standard
Domestic manufacturers of polyester have called the move a huge relief for the industry, claiming they had been fighting to remove the duty for four-and-a-half years. During her Budget speech on Saturday, Finance Minister Nirmala Sitharaman said the government was abolishing in “public interest” an anti-dumping duty that was levied on imports of a chemical called PTA. Domestic manufacturers of polyester have called the move a huge relief for the industry, claiming they had been fighting to remove the duty for four-and-a-half years.
What is PTA?
Purified Terephthalic Acid (PTA) is a crucial raw material used to make various products, including polyester fabrics. PTA makes up for around 70-80% of a polyester product and is, therefore, important to those involved in the manufacture of man-made fabrics or their components, according to industry executives. This includes products like polyester staple fibre and spun yarn. Our cushions and sofas may have polyester staple fibre fillings. Some sportswear, swimsuits, dresses, trousers, curtains, sofa covers, jackets, car seat covers and bed sheets have a certain proportion of polyester in them.
What led to the government decision?
As Sitharaman explained on Sunday: “That particular product (PTA) is a raw material for many of the industries. There has been persistent demand that they should be allowed to source that particular product at an affordable rate, even if it means importing it.” She had said easy availability of this “critical input” at competitive prices was desirable to unlock “immense” potential in the textile sector, seen as a “significant” employment generator. The duty had meant importers were paying an extra $27-$160 for every 1,000 kg of PTA that they wanted to import from countries like China, Taiwan, Malaysia, Indonesia, Iran, Korea and Thailand. Removing the duty will allow PTA users to source from international markets and may make it as much as $30 per 1,000 kg cheaper than now, according to industry executives.
Why was it imposed in the first place?
The anti-dumping duty on PTA was imposed after two domestic manufacturers, MCC PTA India Corp Pvt Ltd and Reliance Industries Ltd, approached the Directorate General of Trade Remedies (DGTR) in October 2013. The companies, which submitted that they accounted for over 50% of the domestic PTA industry, had argued that some countries had been exporting the product to India at prices lower than its value in their own domestic markets. This dumping of PTA into the Indian market had a “significant” adverse impact on the domestic industry, they argued. Following an investigation, DGTR agreed with MCCPI and RIL’s claims, and imposed anti-dumping duties on PTA imported from South Korea and Thailand in 2014 and 2015, and from China, Indonesia, Taiwan, Iran and Malaysia in 2015 and 2016.
Why was the move controversial?
Companies using PTA to manufacture polyester products claimed that the move went against the government’s vision of making the textiles sector a globally competitive industry. According to them, the move left them with limited domestic suppliers of PTA. The companies had alleged that the product’s cost had become more expensive domestically, which made their own products pricier and less attractive for their domestic and international buyers. This had led to a drop in exports of some of these products during 2014-16, and an increase in imports of the products they had been producing, as there was no safeguard against imports of cheaper versions of these downstream polyester-based products. On top of this, the domestic industry had argued that domestic PTA producers had not only been unable to ramp up capacity to cater to demand for the product, shutdowns of their manufacturing facilities once a year for maintenance purposes had also led to shortages of the raw material. PTA users claim that they had not been manufacturing as much polyester as they were capable of, operating at 70% of their capacity at any given time.
Are there other raw materials in line for a similar move?
Mono Ethylene Glycol (MEG), another raw material used in the manufacturing of polyester, is currently the subject of another anti-dumping duty investigation initiated by DGTR recently. This investigation was initiated after RIL, supported by another company (India Glycols Ltd) had argued that top MEG exporters like Kuwait, Saudi Arabia, Singapore and the United Arab Emirates had been dumping the product and that the domestic industry was suffering “material” injury as a result. An association representing textile companies like Indo Rama Synthetics India Ltd, Filatex India Ltd and Bombay Dyeing has approached DGTR against the move, arguing that anti-dumping duties on MEG would adversely impact the textile industry the way the duty on PTA allegedly did.
Source: Indian Express
This will be the biggest merger exercise of PSBs, which was announced by Finance Minister Nirmala Sitharaman in August 2019. The Centre might approve the scheme for amalgamation of 10 public sector banks (PSBs) into four on Wednesday, an official source said. The Union Cabinet, led by Prime Minister Narendra Modi, is scheduled to meet on Wednesday and is expected to approve the amalgamation of the PSBs. According to the scheme, which has been put up for the Cabinet’s approval, the merger of the balance sheets will be completed by April 1. Subsequently, the boards of all the 10 PSBs will meet to approve the swap ratios. The scheme will have provisions to safeguard the rights of workers in these banks. It ...
Source: Business Standard
The Foreign Direct Investment (FDI) in India has been increasing on an annual basis and was at USD 34.90 billion till November of this fiscal, Parliament was informed on Tuesday. The FDI stood at USD 62 billion in the full 2018-19 fiscal, while at USD 60.90 billion in 2017-18 and USD 60.22 billion during 2016-17, Minister of State for Finance Anurag Thakur said while placing the data in Rajya Sabha. Speaking during the Question Hour, he said in spite of a global contraction in FDI inflows, FDI into India have significantly improved over the past decade to USD 62 billion, which accounts for 2.37 per cent of GDP in 2018-19 fiscal. The success of various initiatives is reflected in the increased inflow of FDI and increase in Gross Fixed Capital formation, he said, adding that several measures taken by the government will further boost FDI in all sectors. The investors confidence has gone up after the government took measures to improve ease of doing business, comprehensive reforms in the FDI policy and introduction of Insolvency and Bankruptcy Code, 2016 among others, he said. As per the World Investment Report (WIR), 2019, India rose from twenty fifth position in 2018 and featured at ninth place with FDI contribution of 3.23 per cent, he added.
Source: Economic Times
Availability of battery charging points and life of batteries are some of the issues to be looked into Ampere Vehicles, a wholly-owned electric mobility subsidiary of Greaves Cotton, recently said that it had inked a pact with Bigbasket to provide electric scooters for delivery purposes in key cities, including Chennai. Bigbasket operates fleets of delivery teams across 26 cities in India. At the Taste of Coimbatore event held here last month, organisers used e-scooters for mobility inside the 4.5-acre venue. While there is a big push from the government on e-mobility and manufacturers are looking at different models of vehicles, one of the potential segments seems to be vehicles used for delivery purposes by industries and trade. P. Sanjeev, Chief Operating Officer of Ampere Electric Vehicles, told The Hindu the company had tie-ups with 20 institutions in the State, including textiles mills and schools, that used different types of e-vehicles. “Many of them use three-wheelers and there is a very encouraging response. The advantage that e-vehicles bring to the table is cost economics especially when used within the premises. We can customise vehicles according to the need of the sector that we are catering to. In e-vehicles, there is a greater scope for customisation,” he says. “Even when customised, when the manufacturers follow all the prescribed standards, the customers get the government subsidy,” he points out. Textile mills initially started using e-vehicles in the spinning department a few years ago to reduce the fatigue for workers, as they need to move around a lot for checking the spinning process. Though not many mills have adopted e-mobility for internal use, some of them do use the vehicles in the godowns and packaging departments to move goods. The adoption depends on the cost involved and facilities and space available within a mill, says an industry source. While the manufacturers and dealers feel that e-vehicles are a great option for delivery personnel, trade and industry here are of the view that there are challenges that need to be overcome. “The preference is still for the moped and not even the regular scooters for delivery purposes,” points out one of the hoteliers. “Multiple hands use a vehicle that a hotel has for delivery or to pick up goods. What matters is the robustness of the vehicle and the confidence of the user,” adds Jegan Damodarasamy, Executive Director of Sree Annapoorna Sree Gowrishankar Hotels. It will take some more time of the employees to get confidence in the vehicle, when its usage and technology develop further. They (employees) should be comfortable using the e-vehicles and only then will hotels start switching over to e-vehicles, he says. V. akshminarayanasamy, president of the Indian Chamber of Commerce and Industry, Coimbatore, says while the scope is high for use of e-vehicles by industries and trade, there are issues. Availability of battery charging points within the city, life of batteries and the weight that the vehicles can handle matter for more industries to switch over. For use within an industry, the vehicle should be able to carry maximum 500 kg and for outside use, it should be minimum one tonne, he says. “In China, e-cycles were introduced nearly three decades ago. But we need to study the use in industries and for delivery purposes,” he says. Domestic manufacture of e-vehicles is just picking up and a few companies have announced plans for e-autos too. Only when there is continuous support and facilities locally for servicing of the vehicles, will the customers get confidence in these vehicles. Since batteries constitute significant portion of the cost of an e-vehicle, the life of batteries, charging time, and charging facilities will determine the success of the use of e-vehicles, he adds.
Source: The Hindu
Lenzing has opened its first supply chain solution hub in Mumbai designed to provide supply chain and product solutions as per requirements of Indian customers. The hub will become a centre of innovation by building accessibility across its customers in India, bringing together Lenzing’s global expertise and network connections in the industry. The launch of this hub will build connections between the supply chain and brands looking to adapt sustainable practices that are need of the hour, said Lenzing in a press release. For Lenzing, India serves as a key market for exports as well as a huge domestic consumption. Lenzing has been present across all major apparel categories in India such as ethnic wear, intimate wear, general outerwear, denims and home furnishings. The company has been associated with ace designers such as Anita Dongre, Rajesh Pratap Singh and Abraham & Thakore to leading brands such as And, Global Desi, Marks & Spencers, H&M, D’décor, Levi’s, to name a few. With a huge response garnered by its flagship fibre brand – Tencel and sustainable viscose fibre brand- Lenzing Ecovero, Lenzing Group has recently introduced its nonwoven specialty fibre - Veocel and Lenzing Industrial solutions diversifying the reach among the beauty and industrial application segments. A prominent trend observed in the textile and fashion industry over the past few years is to incorporate sustainable solutions in close conjunction with end-consumers through brand and designer associations. To build on the growing needs and requirements put forth before by the consumers, this hub will give access to global solutions and innovations across the country. Along with the specialty fibres solutions, the hub will house the products and innovations created using Tencel and - Lenzing Ecovero fibres to attract both buyers and supply chain experts in India. The hub would also display products that have been made in collaboration with top designers and brands across India and the globe, seen at key fashion events, on a regular basis. This platform will bring forward global innovation capabilities to help to build on the sustainable fashion conversation among the Indian textile Industry. Additionally, the hub would cater to an information centre for textile suppliers, garment makers, designers and traders to enable quick solutions. “Since its inception in India in 2007, Lenzing India has seen a massive growth in India. With the warm response we have received towards various associations initiated by us, this hub will be another step for our expansion in the country. We aim to build Lenzing’s global legacy through the launch of the hub. As part of the company’s country developments, Lenzing plans to increase its footprint by launching multiple hubs across key textile centres in India in the next couple of years. We hope these strategic hub launches will help our partners offer sustainable solutions with an ecologically responsible footprint to ease out the supply chain process,” said S Jayaraman, commercial director - Asia Pacific & South Asia with Lenzing AG. “Lenzing Group is pleased to have launched its first hub in India. Through this step, we aim to provide the right raw material to the brands in order to strengthen their sustainable resolution, making the supply chain viable. Our vision is to provide sustainable lifestyle solutions to consumers and sensitizing them on sustainable and ethical fashion is the need of the hour. Through this launch, we hope to build a direct connection with people driving the supply chain, further creating a ripple of change in the textile industry,” said Avinash Mane, commercial head - South Asia, Lenzing Group. The Lenzing Group stands for the ecologically responsible production of specialty fibres made from the renewable raw material wood. As an innovation leader, Lenzing is a partner of global textile and nonwoven manufacturers and drives many new technological developments. The Lenzing Group’s high-quality fibres form the basis for a variety of textile applications ranging from elegant ladies' clothing to versatile pieces of denim and high-performance sports clothing. Due to their consistent high quality, their biodegradability and composability Lenzing fibres are also highly suitable for hygiene products and agricultural applications.
Source: Fibre2Fashion
Moody's Investors Service on February 4 said economic growth projections made by Finance Minister Nirmala Sitharaman in her Budget for 2020-21 appear ambitious given the structural and cyclical challenges facing the Indian economy. The budget expects nominal GDP growth of 10 per cent in 2020-21, followed by 12.6 per cent and 12.8 per cent in FY2022 and 2023. But, Moody's saw GDP growth rising to around 8.7 per cent in the next financial year beginning April 1 from about 7.5 per cent in the current fiscal. Stating that growth outlook will remain weak, it has put real GDP growth during the current fiscal ending March 31 at 4.9 per cent, slightly below the government's forecast of 5 per cent. For the next fiscal, it estimated real GDP growth of 5.5 per cent, lower than 6-6.5 per cent projected by the government's Economic Survey. "Growth has remained relatively weak as a prolonged deleveraging cycle and ongoing stress among non-banking financial institutions (NBFIs), which has constrained the financial system's overall provision of credit, weigh on consumption and investment," it said in a detailed commentary on the Budget. For the next 2020-21 fiscal, it lowered real GDP growth forecasts to 5.5 per cent from 6.3 per cent previous estimate. And for the following fiscal, it put the real GDP growth at 6 per cent from 6.7 per cent projected earlier. "The significant slowdown in financial sector credit growth from NBFI liquidity constraints and asset quality issues among public sector banks has exacerbated prolonged weakness in private investment and a material decline in consumption, due in part to financial stress among rural households and weak job creation," Moody's said. The nominal GDP growth, it said, has also declined significantly. Following 11.2 per cent expansion in 2018-19, the government had forecast 12 per cent nominal GDP growth in its July 2019 budget for the current fiscal. However, according to the government's first advance estimate of GDP last month, nominal GDP growth is likely fell to a much lower rate of around 7.5 per cent for full 2019-20. "These forecasts (made the Budget) appear ambitious given the combination of structural and cyclical challenges that the Indian economy faces," it said. Moody's said the government will face challenges in achieving its deficit target for the fiscal year ending March 2021, amid persistent structural and cyclical headwinds to growth. Sitharaman is targeting narrowing of fiscal deficit to 3.5 per cent of the GDP in the next financial year from 3.8 per cent in the current - wider than the 3.3 per cent that the government previously predicted. "While the latest budget targets a narrower deficit, prolonged weakness in nominal GDP growth in India, combined with lower revenue collections, has dampened the outlook for fiscal consolidation, raising the risk that the debt burden may not stabilize," says Gene Fang, a Moody's Associate Managing Director. "The debt burden is sensitive to nominal GDP growth, which we expect will remain lower on average than in the past. In light of India's weak fiscal health compared with its rating peers, any slippage in debt reduction will be credit negative." The slippage in meeting fiscal deficit targets "reflects significantly weaker economic growth and revenue collection than the authorities forecast in July 2019," Moody's said. "Any material strengthening in India's public finances is unlikely in the near term as obstacles to growth persist." It went on to state that prolonged weakness in nominal GDP growth and lower revenue collection raise the risk that the government debt burden does not stabilize. The rating agency said while the fivefold rise in deposit insurance limit to Rs 5 lakh is credit positive for banks, the Budget seeking dividends from state-owned companies that are higher than the tax-saving they got from the abolition of the dividend distribution tax (DDT) was credit negative for oil and gas companies. But, the rise in public infrastructure spending and tax exemptions for sovereign wealth funds was credit positive for the infrastructure sector, it said, adding quicker debt recovery and additional interest deduction on home loans was credit positive for Indian securitization transactions. Moody's said even before the significant slowing in economic expansion in 2019, nominal GDP growth had averaged about 11 per cent over the five years from 2014 to 2018. "We expect the economy to rebound at a more modest pace, with nominal GDP growth rising to around 8.7 per cent in fiscal 2020 (2020-21) and 10.5 per cent in fiscal 2021 (2021-22), from about 7.5 per cent in fiscal 2019 (2019-20)," it said. India's historically high rate of nominal GDP growth was an important driver of a declining debt burden in the past, from above 80 per cent of GDP in the early 2000s to about 67 per cent in 2010. "Given India's fiscal constraints, we believe that durable fiscal consolidation is only likely to occur if nominal GDP growth rebounds to at least 11 per cent over the medium term," it added.
Source: Money Control
Exports of around 250,000 cotton bales (1 bale = 170 kg) from India to China, for which deals were signed in January, have been put on hold as concerns over the spread of coronavirus have intensified. These deals will be settled mutually if the situation is not brought under control soon, trade officials said. In January, Indian exporters signed deals to export 700,000-800,000 bales (1 bale = 170 kg) of cotton, of which 400,000-500,000 or 60% were meant for China, and the rest for Bangladesh and Vietnam. The deals were struck at 76 cents per pound. China accounts for around 30% of the world's cotton exports. India's cotton exports may witness a temporary slowdown as the spread of coronavirus is likely to curtail demand for the fibre, said traders. This, however, may not affect the overall exports projected for the current season, they said. "After this uncertainty in China, cotton exporters in India are anxious to sign up for new consignments with China," said Deven Shah, partner at the Mumbai-based Bhaidas Cotton LLP. On Monday, trading resumed at financial markets in China, the second largest economy, after an extended holiday for the Lunar New Year. Non-essential enterprises will remain closed until Sunday due to restricted movement. "Exporters will continue to monitor developments related to the spread of coronavirus, if the virus keeps spreading and is not controlled in the next 10-15 days, it will create a problem," said Vinay Kotak, director of Kotak Commoditity Services. This is unlikely to hit overall exports as strong orders from other countries and lower domestic prices have made sales economically viable, trade officials said. Indian cotton is offered at 75-76 cents a pound, 6-7 cents lower than the crop from West Africa and the US, which is far superior in quality. Atul Ganatra, president of Cotton Association of India, said the spread of coronavirus is not a major concern and the country's export target of 4.2 mln bales is easily achievable. "Indian prices are currently competitive and finding new buyers won't be difficult. I expect cotton exports to touch 3.5 mln bales by end of March," said Ganatra. So far in the season that started in October, India has signed export deals of 2.3 mln bales, of which 1.8-2.0 mln bales have been shipped, trade sources said. "I believe India's overall exports might touch 5.0 mln bales mainly due to strong orders from other importing destinations like Bangladesh, Vietnam and Indonesia," said Ganatra. The association has pegged India's cotton exports at 4.2 mln bales (1 bale = 170 kg) in the current 2019-20 (Oct-Sep) season. The Cotton Advisory Board has estimated exports at around 5.0 mln bales.
Source: Cogenics
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
996.63 |
USD/Ton |
0% |
2/4/2020 |
|
VSF |
1354.51 |
USD/Ton |
0% |
2/4/2020 |
|
ASF |
2003.25 |
USD/Ton |
0% |
2/4/2020 |
|
Polyester POY |
1022.30 |
USD/Ton |
0% |
2/4/2020 |
|
Nylon FDY |
2209.99 |
USD/Ton |
0% |
2/4/2020 |
|
40D Spandex |
4092.05 |
USD/Ton |
0% |
2/4/2020 |
|
Nylon POY |
2445.25 |
USD/Ton |
0% |
2/4/2020 |
|
Acrylic Top 3D |
5346.75 |
USD/Ton |
0% |
2/4/2020 |
|
Polyester FDY |
1276.09 |
USD/Ton |
0% |
2/4/2020 |
|
Nylon DTY |
2046.02 |
USD/Ton |
0% |
2/4/2020 |
|
Viscose Long Filament |
2252.76 |
USD/Ton |
0% |
2/4/2020 |
|
Polyester DTY |
1176.29 |
USD/Ton |
0% |
2/4/2020 |
|
30S Spun Rayon Yarn |
1988.99 |
USD/Ton |
0% |
2/4/2020 |
|
32S Polyester Yarn |
1618.28 |
USD/Ton |
0% |
2/4/2020 |
|
45S T/C Yarn |
2395.34 |
USD/Ton |
0% |
2/4/2020 |
|
40S Rayon Yarn |
1767.99 |
USD/Ton |
0% |
2/4/2020 |
|
T/R Yarn 65/35 32S |
2195.73 |
USD/Ton |
0% |
2/4/2020 |
|
45S Polyester Yarn |
2152.96 |
USD/Ton |
0% |
2/4/2020 |
|
T/C Yarn 65/35 32S |
1924.83 |
USD/Ton |
0% |
2/4/2020 |
|
10S Denim Fabric |
1.26 |
USD/Meter |
0% |
2/4/2020 |
|
32S Twill Fabric |
0.68 |
USD/Meter |
0% |
2/4/2020 |
|
40S Combed Poplin |
0.96 |
USD/Meter |
0% |
2/4/2020 |
|
30S Rayon Fabric |
0.53 |
USD/Meter |
0% |
2/4/2020 |
|
45S T/C Fabric |
0.67 |
USD/Meter |
0% |
2/4/2020 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14258USD dtd. 04/02/2020). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Industry sources this week told Drapers that prime minister Boris Johnson must make zero-tariff trade the “number one priority” after Brexit. However, Johnson said in a speech on Monday that he would rather accept tariffs than European Union law, as he began trade talks with Brussels following the UK’s exit from the bloc on 31 January. This came after the EU’s chief negotiator, Michel Barnier, said the EU was ready to offer a “highly ambitious trade deal” that included zero tariffs and quotas, but would also demand “specific and effective guarantees to ensure a level playing field”. Johnson said: “There is no need for a free trade agreement to involve accepting EU rules on competition policy, subsidies, social protection, the environment, or anything similar, any more than the EU should be obliged to accept UK rules.” Industry sources warned that tariffs would have a “terrifying” impact on trade. Industry sources this week told Drapers that prime minister Boris Johnson must make zero-tariff trade the “number one priority” after Brexit. However, Johnson said in a speech on Monday that he would rather accept tariffs than European Union law, as he began trade talks with Brussels following the UK’s exit from the bloc on 31 January. This came after the EU’s chief negotiator, Michel Barnier, said the EU was ready to offer a “highly ambitious trade deal” that included zero tariffs and quotas, but would also demand “specific and effective guarantees to ensure a level playing field”. Johnson said: “There is no need for a free trade agreement to involve accepting EU rules on competition policy, subsidies, social protection, the environment, or anything similar, any more than the EU should be obliged to accept UK rules.” Industry sources warned that tariffs would have a “terrifying” impact on trade. “Without a tariff-free trade deal, everything is going to get more expensive and everything’s going to be more difficult,” one high street supplier said. He added that imposing tariffs would require bonded warehousing, to minimise the duty paid on moving goods: “If your main warehousing is in Europe, you’ll bring them to Europe and pay the duty on them. As they then cross the UK border, if there is no free trade then you’ll pay duty again. “You have to pay for a bonded warehouse, but if you’re a small business it’s really punitive because the cost is really high.” Adam Mansell, CEO of the UK Fashion and Textile Association, said: “The absolute number one priority for the sector is zero to zero [in and out] tariffs. The idea that we would face tariffs on goods coming into the UK, or our exports to the EU, is terrifying. “The EU is our largest export market by a country mile – 76% of our exports go to the EU across the fashion and textile industry, so an additional cost on top of that would be catastrophic.” One womenswear supplier agreed: “Tariffs would not be good at all. I think the only thing that’s manageable is if people are aware of it when they’re selling. The problem is, for tariffs that come in after the event, who is responsible for that hole? Is it the manufacturer or the customer who will pay for it?” One brand source said the most important thing was to ensure the UK has free trade with the EU: “Before the EU, we used to belong to the European Free Trade Association, which was exactly what it says on the tin. No politics, no regulation, nothing other than a free trade, no duties. “When we joined the EU, it was supposed to be an expanded version of that. Unfortunately, it morphed into this political entity. The most important thing is free trade.” The CEO of one menswear multiple said it would also be important for the UK and Turkey to secure a separate trade deal: “Turkey is a big supplier in terms of fabrics, and has a customs union with the EU, so the UK will have to do a deal.”
Source: Drapers
The rapid spreading of the new coronavirus that emerged in China has halted production in the country, as many are no longer able to leave their houses to work across several provinces due to city lockdowns. This has pushed businesses to find alternative manufacturing markets, including Turkey. Brand and chain stores are expected to be some of the businesses to switch from the world’s dominant producer if the fear of the spreading deadly virus continues to affect the economy. Istanbul Ready-Made Clothes and Textile Exporters Union Chairman Mustafa Gültepe told Turkish daily Sabah that even if the spreading of the virus is prevented, its effect on production would last at least three more months, adding that the clothing brands who have manufacturers in China have already contacted Turkish manufacturers for information on the quality of the garments. International textile buyers see Turkey as a preferable and profitable market due to its quality and fast production at affordable prices. “Expectations for an increase in demand is high. April and May orders will see a significant increase,” Gültepe said. The virus, which emerged in central Hubei province at the end of 2019, has spread to over two dozen countries since first being identified in December, prompting the World Health Organization (WHO) to declare a global emergency. More than 180 cases of the new type of coronavirus have been confirmed beyond mainland China. Also speaking on the issue, Turkey’s Clothing Industrialists Association Chairman Cevdet Karahasanoğlu said the increase in demand from international businesses would help the Turkish textile and garment sector work at full capacity. China is currently the world’s biggest textile exporters, employing over 4.6 million people, according to data from China's National Bureau of Statistics. Textile exports from China reached 37.6% of the world’s total in 2018, reporting a 3.5% increase from the previous year.
Source: Daily Sabah
Rieter and the Cotton & Textiles Holding company have signed additional contracts related to the modernisation programme for the Egyptian textile industry, during the recently held Swiss-Egyptian Investment Forum in Cairo, Egypt. Rieter is the world’s leading supplier of systems for short-staple fibre spinning, based in Winterthur, Switzerland. In the presence of Hisham Tawfik, minister of the public sector of the Egyptian Government, and Swiss federal councillor Guy Parmelin, head of the federal department of economic affairs, education and research, the contracts had been signed by Ahmed Moustafa, chairman of the Cotton & Textiles Holding company, and Norbert Klapper, chief executive officer of Rieter, according to Rieter. The total volume of the contracts sums up to around 210 million Swiss Francs, including the contracts which had been signed at ITMA 2019 in Barcelona and which represent a volume of around 180 million Swiss Francs. Rieter expects the full amount of orders to be booked as order intake in the first half year of 2020. So far, 165 million Swiss Francs have been booked. “The next step of the programme we agreed upon today underlines the strong partnership between the Cotton & Textiles Holding company and Rieter. I would like to thank our Egyptian partners for the confidence they continue to place with Rieter. We will do our best to support the Cotton & Textiles Holding company in making the modernisation programme a success,” Klapper said.
Source: Fibre2Fashion
Directa Plus, producer and supplier of graphene nanoplatelets based products for consumer and industrial markets, has been awarded EU grant for a project to develop an environmentally sustainable technology to digitally print its G+ graphene product on fabrics. The project will last for an initial period of 24 months and has a total value of some €1 million. The Green.Tex project partners are Directa Plus, EFI Reggiani, the Italian subsidiary of global digital printing group Electronics For Imaging (EFI), and IBS Consulting Group. Of the total value of some €1 million, Directa Plus will invest €240,000 and receive a grant of €100,000. Green.Tex is aimed at reducing the environmental impact of printing graphene on fabric through the use of an advanced material. The goal is to develop an innovative digital printing process using water-based graphene ink. Using digital equipment will significantly reduce the environmental impact, particularly with regards to water and energy consumption and chemical waste production. The research will be mainly focused on ecologically friendly fabrics, such as natural fabrics and synthetic fabrics obtained from recycling processes. The partners will work to develop the components and processes needed to print (using inkjet systems) G+ graphene onto fabrics for the textile market (apparel, upholstery, technical markets), with each partner contributing in their own specialist fields. Directa Plus will develop a suitable grade of G+ for this application. EFI Reggiani will develop a specific ink and printing equipment to print G+ ink. IBS will support the team in identifying and supplying various substrate and fabrics onto which G+ ink will be printed. Successful development of the printing technology will allow fabrics to be enhanced in a number of ways - improved thermal and electrical conductivity, and the introduction of a bacteriostatic effect. Digital printing will represent an important step forward from traditional rotary screen printing. It offers superior flexibility of production, such as the possibility to print small batches of fabrics without significant set-up costs, and the ability to change the printed pattern very quickly. In addition, the technology offers the potential to improve the sustainability of the technology as digital printing is likely to require a lower amount of water during the process as well as a much lower waste of materials. Commenting, Giulio Cesareo, founder and CEO of Directa Plus, said: "We are delighted to be working with industrial partners at the forefront of their fields, to jointly develop applications and technology for graphene enhanced fabrics. Directa Plus' strategy in each of our industrial verticals is to capture as much value as possible from the supply chain, by working with established partners to develop processes that we can bring to market worldwide. This partnership will advance this strategy in our key textiles vertical.” "G+ enhanced garments offer clear, measurable advantages to end users in a wide variety of fields, from high performance sports, to armed forces and emergency services personnel, to manual workers in both hot and cold climates," Cesareo said.
Source: Fibre2Fashion
Alt Mat, Block Texx, Descatuk, Indra Water, Infinichains, JSP, PurFi, Sasmira and Textile Genesis. These are the nine start-ups selected for Fashion for Good’s first innovation programme focused on South Asia, which will take them on a nine-month journey including mentoring, coaching and support from Fashion for Good and its partners. Additionally, the start-ups will receive support from Indian manufacturers Arvind and Welspun to test the viability of their ideas to make the fashion industry more sustainable. Altmat produces fiber from agricultural waste such as hemp and banana sourced directly from farmers. Blocktexx recovers polyester and cellulose from textiles and clothing, looking to turn textile waste into a resource. Indra Water developed a fully automated treatment for waste waste. Infinichans offers end-to-end track and trace solution using blockchain, AI and Cloud Computing to help brands and manufacturers to digitise sustainability practices. JSP Enviro developed a self-sustaining waste-water treatment. Purfi brings pre-consumer textile waste to virgin quality fibers. Sasmira developed a supercritical CO2 dyeing technology, allowing textiles to be dyed without any chemicals. Last but not least, Textile Genesis is a blockchain traceability system focusing on sustainable fibers. Commenting on the launch of the regional program in South Asia, Fashion for Good’s Managing Director Katrin Ley said in a statement: “With the launch of our regional Programme in South Asia we strengthen our network and position us to better serve local manufacturers, key supply chain actors, brands and innovators. By connecting them to our global network and leading players in the fashion ecosystem, we help the innovators’ solutions and technologies reach scale.””The platform provides a pool of incredible talent that we can tap into and implement in our own on-going efforts to move our supply chain towards circularity, and we are pleased to support the Program and lead the way in sustainability”, Welspun’s Joint Managing Director, Dipali Goenka, wrote in a statement.
Source: Fashion United
