Minister of Commerce and Industry & Railways Shri Piyush Goyal today, through Video Conferencing, held discussions with the Export Promotion Councils(EPCs) of the country. He called upon the Exporters to identify their strengths, potentials and competitive advantages in specific sectors, and focus on harnessing them in the world markets. ShriGoyal said that in the post-Covid era, there is going to be perceptible change in the global supply-chains, and Indian industrialists and exporters should be looking to capture significant share in the world trade. He assured them that the Government will be a pro-active supporter and facilitator in their efforts, and the Indian Missions abroad can play an important role in that. The Minister said that Incentives can be given, but they have to be justified, reasonable, and WTO-compliant. Shri Goyal said that the Ministry is working on identifying the specific sectors which can be taken forward in the immediate future for the Exports purpose. He said that India is going to have a bumper Rabi harvest this season, and our storage facilities are overflowing. At the same time, there are news stories that there is shortage of food items in several countries. Many places are not having food of appropriate quality, taste and quantity, due to disruptions in the supply chains because of Covid-19 crisis. He said that this seems to be a good opportunity for export of agricultural and processed food items. The Minister exhorted the Export promotion councils to undertake brainstorming sessions with its members, and come up with similar actionable, big-ticket ideas. The EPC Office bearers expressed their gratitude to the Minister, for providing support and coming out with time-bound solutions, during the Covid pandemic and lockdown. They made several suggestions, which may further facilitate their functioning. The meeting was attended, among others, by FIEO, AEPC, SRTEPC, CLE, SEPC, Chemexcil, GJEPC, CEPC, Shefexil, CEPCI, PEPCI, Pharmexcil, ECSEPC, EEPC, TEPC, Capexil, Chemexcil.
Source: PIB
States have to take steps to attract investments, Prime Minister Narendra Modi is reported to have told the Chief Ministers during Monday's video conference on the lockdown in the country. This suggestion to the CMs comes in the wake of reports that several companies are thinking of moving away from China and investing in other countries, especially the likes of India and Vietnam. A Times Of India report claims that Modi wants the States to draw up a "comprehensive plan" for themselves to attract investments. Recently, there was a report in Business Today about 1,000 foreign firms allegedly planning to shift manufacturing to India from China. About 300 of them are actively pursuing production plans in mobiles, electronics, medical devices, and textiles. UP CM Yogi Adityanath is reportedly on the task of attracting the companies that want to quit China. "Just as Chandrababu Naidu and YS Rajasekhar Reddy worked towards changing the face of Andhra Pradesh, the UP CM too can ensure that his State's economic fate changes within 3-4 years," a social media user commented.
Source: India Glitz
With exporters seeking assistance to survive the Covid-19 crisis that has disrupted businesses globally, the Centre is looking at extending the interest equalisation (subsidy) scheme for select sectors for some more time, say officials. The Commerce and Industry Ministry is in discussions with the Finance Ministry and the Prime Minister’s Office on the need to re-introduce or extend the interest equalisation scheme, which is basically an interest subsidy scheme for exporters from select sectors that lapsed on March 31, 2020, a government official told BusinessLine. The plan is to extend the popular scheme, which benefits a wide range of exporters, by at least a few months. “Exporters urgently need financial help as not only are they losing orders with production halting due to the national lock-down but their shipments and payments are also stuck. If the interest equalisation scheme, which provides credit at a lower interest rate, is not extended, they may be further crushed,” the official said. The scheme, earlier called interest subvention scheme, was announced for a period of five years, from April 1, 2015 to March 31, 2020, for 416 selected tariff lines, many of them involving labour-intensive production, such as readymade garments, automobile parts, processed agriculture/food items, handicrafts, glass and glassware, medical and scientific instruments and pharmaceuticals. The scheme also covered all items exported by the MSME (micro, small & medium enterprises) sector. While the scheme initially offered a 3 per cent subsidy on pre- and post-shipment export credit to all beneficiaries, the rate was enhanced to 5 per cent for the MSME sector in 2018. Industry bodies such as CII and exporters’ organisations including the Federation of India Export Organisations and EEPC India have already urged the government to extend the scheme. “Most exporters are hopeful that the interest equalisation scheme will be extended given the dire situation they are in but the delay in decision-taking is making them restless. The Commerce & Industry Ministry is trying to expedite the process,” the official said. While the Foreign Trade Policy, which was to lapse on March 31, 2020, was extended by the Centre by one year, no decision was taken on the interest equalisation scheme. India’s exports of goods in March 2020 plummeted 34.57 per cent to $21.41 billion (year-on-year) as the spread of Covid-19 across countries disrupted production and supply chains globally. This pulled down overall export figures for financial year 2019-20 by 4.78 per cent to $314.31 billion. Exporters fear that performance in April and May would be worse when the full impact of the Covid-19 crisis plays out.
Source: The Hindu Business Line
The bodies have also approached the US Trade Representative to call for discussion on India's move to impose equalisation levy while the matter is still under discussion at international level. International business bodies, whose members include Walmart, Amazon, Google, Netflix, have approached Union Finance Minister Nirmala Sitharaman for deferring the 2 per cent tax imposed on non-resident e-commerce companies by nine months due to the crisis triggered by Covid-19. A group of nine business bodies including US India Business Council, Information Technology Industry Council, Japan Electronics and Information Technology Industries Association, Asia-Pacific MSME Trade coalition and DigitialEurope, have demanded consultation on the equalisation levy (2 per cent tax) imposed by the government in this fiscal year. In a joint letter to the minister, the business bodies representing mostly American, European, Australian and Asian firms mentioned commitment of G20 leaders including that of Prime Minister Narendra Modi for realising a free, fair, non-discriminatory, transparent, predictable, and stable trade and investment environment, and to keep global markets open. “It is in the spirit of this international commitment that we write to respectfully request a formal stakeholder consultation on the expansion of the equalisation levy and a delay by at least nine months of the implementation of “Section 165A” of the Union Budget 2020,” the letter said. It said Section 165A expands the scope of India's existing equalisation levy to establish a new, 2 per cent levy on the online sale of goods and services into India by non-resident e-commerce operators. These are those firms that sell goods to Indian residents online but don't have presence in India that can be covered under tax net. The bodies have also approached the US Trade Representative to call for discussion on India's move to impose equalisation levy while the matter is still under discussion at international level.
Source: Business Standard
The government is "seriously considering" unveiling packages, to the extent possible, to support sectors facing distress and a decision in this regard will be taken at the Prime Minister's level, Union Minister Nitin Gadkari said on Wednesday. Interacting with real estate body Naredco via video conferencing, the MSME and Road Transport and Highways minister said: "I have also given suggestions from my department but a final decision will be taken by the Prime Minister and the Finance Minister". Gadkari said the decisions taken will gradually be shared in the public domain, adding that the government was standing firmly behind the industry. "The government of India is thinking on various lines. Whatever is possible - giving packages to the extent possible to support all sectors, serious consideration is on in this regard and decisions will be taken at the level of the Prime Minister," the minister said. Besides, Gadkari noted the government was thinking of formulating a separate policy for agricultural micro, small and medium enterprises (MSMEs). Referring to the concept of agro MSMEs, he called upon the industry to explore possibilities related to agriculture. Besides, Gadkari reiterated that India should look to take advantage economically of the global "hatred" against China by increasing exports and enhancing its growth rate. Referring to the problems being faced by the real estate sector, Gadkari said the government wants to support the sector and is trying its level best to find some solution, but the fact remains that the sector is still facing problems. He asked stakeholders from the real estate sector to approach the finance ministry, ministry of housing and urban development and the Prime Minister's Office with their suggestions in this regard.
Source: Economic Times
The government is considering a fresh ordinance to amend the Companies Act to decriminalise several offences, apart from allowing Indian companies to directly list overseas. The ministry of corporate affairs has begun discussions on fast-tracking the amendments and may approach the Union Cabinet shortly, sources told TOI. The government had introduced a Bill to amend the law during the last session of Parliament, but it could not be cleared. The move comes days after the Cabinet recommended promulgation of an ordinance to amend the Insolvency and Bankruptcy Code to disallow fresh filings for up to 12 months. “Companies need more flexibility on compliance due to Covid-19. The government is keen to ensure that there are fewer complications in case of non-compliance,” a government source told TOI. The Bill to decriminalise the Companies Act followed recommendations by a committee headed by corporate affairs secretary Injeti Srinivas and several industry representatives. Of the 66 remaining offences where criminal prosecution is allowed, the government is looking to make 23 compoundable, which will allow to cure the violations on payment of fine. In case of 11 compoundable offences, the provision for a jail term is being done away with. Further, for six defaults, which were decriminalised earlier, the penalties are proposed to be lowered. And, at least five offences will be dealt with under an alternate framework, which is an innovation that is being tried out. For instance, section 16 of the law allows the government to order a name change in cases where a recently-incorporated company’s name is similar to an existing one. The amendments propose to introduce a mechanism under which a new computer-generated name will be assigned.
Source: Economic Times
India on Tuesday joined its Brics partners — Brazil, Russia, China and South Africa — in a call for providing support to businesses, especially MSMEs, to tide over the Covid-19 crisis and ensure livelihoods are not lost, even as the likelihood of a Brics summit to be hosted by Russia in July this year looks increasingly remote. Addressing the Brics ministers of foreign affairs video conference convened by the current Brics chair, Russia, external affairs minister S Jaishankar emphasised that the pandemic is not only posing a great risk to the health and well being of humanity but is also severely impacting global economy and output by disruption of global trade and supply chains. In 2018, the GDP of all Brics countries amounted to approximately $19.61 billion. “Economic activity across sectors has been negatively impacted leading to loss of jobs and livelihoods,” said Jaishankar, underlining the urgency of reforms of multilateral systems as reformed multilateralism was the way forward. The brainstorming session, initiated by Russia, to muster a joint Brics response to counter the pandemic, is the first meet of the five-nation bloc since the outbreak of the coronavirus pandemic and in the run-up to the summit in St Petersburg in the third week of July. India will hold rotating Brics presidency in 2021. A virtual meeting of Brics health officials is envisaged on Covid-19 pandemic on May 7, 2020 to take the discussion forward in a focused and purposeful manner. The Brics countries have been hit hard by the pandemic with India accounting for 29,974 positive cases and death toll of 937, Brazil reporting about 4,500 deaths and almost 67,000 confirmed infections, Russia with death toll to 681 and overall case count of 74,558, China with death toll of 4,633 and overall confirmed cases of 82,836, and South Africa with total number of confirmed cases at 3953 and death toll at 79.
Source: Financial Express
India’s alternative investment funds (AIFs) are seeking greater clarity from the government on recently announced tweaks to the FDI norms, which require prior approval for all investments from China — the largest backer of the country’s startup ecosystem. Investors told ET they are concerned about whether government nod will be required to draw down capital from their Chinese or Chinese-origin limited partners (LPs), for placing fresh bets or making follow-on investments in select portfolio companies. AIFs — defined as Sebi-registered funds established or incorporated in India — are privately pooled investment vehicles that collect funds from investors, both Indian and foreign. There are an estimated 650 funds, trusts and LLPs on Sebi’s website, including prominent ones such as IndiaQuotient and Kae Capital, which count Chinese investors as their LPs.
‘Logistical Nightmare’
“We are awaiting clarifications from relevant authorities. Till then, we can only wait and watch. Some of our Chinese backers have already expressed their anxiety,” the general partner at a leading early-stage fund told ET on the condition of anonymity. Chinese investors — strategic and financial — pumped in an estimated $4 billion into the Indian startup ecosystem in 2019, making them the largest backers of the country’s digital economy. Their investments in funds are estimated to be much more. “AIFs draw their capital over a 3-4-year cycle. Some of these capital commitments would have been entered into a few years ago, with a good portion of the capital being already invested by now. For AIFs to go back and change the contracts now, find an alternative investor, and then inform Sebi again — it’s a logistical nightmare,” said Siddarth Pai, founding partner of 3one4 Capital.
‘PREDATORY’ CAPITAL INVESTMENTS
Under Press Note 3, the central government has made prior approval mandatory for all FDI from countries with which India shares a land border. While this requirement was already in place for investments originating from Pakistan and Bangladesh, the latest tweak has been made to prevent what has been described as ‘predatory’ capital investments by Beijing, at a time when markets have gone into a tailspin. “I think the quality of communication from the regulatory authorities has to improve. At a time like this, the government could have, at the very least, set up a forum or mechanism explaining the reasons for the decision, and invited industry representation. That hasn’t taken place,” Anand Lunia, founding partner at IndiaQuotient, told ET. Legal experts said there is little clarity about what situations will affect AIFs, and in what situation they get a leeway. “In most cases, it is difficult to attribute nationality to AIF’s pooled investment funds,” said Dipti Lavya Swain, partner at HSA Advocates. According to Swain, with the current amendment in place, AIFs already having Chinese capital are also worrying about fund deployment in Indian companies. This is because of the ‘greyness’ surrounding the meaning of ‘beneficial ownership’, including in a situation where the sponsor or manager of the AIF is an Indian owned and controlled entity.
DOMESTIC CAPITAL SUPPORT
The issue has also brought to fore the lack of domestic institutional capital support in Asia’s third-largest economy. “For larger capital commitments, China has been the go-to destination over the past few years, given the lack of domestic institutional capital in India. The issue, however, remains for future fund-raising,” said Gaurav Chaturvedi, partner at Kae Capital. He said Kae Capital has already drawn down the funds committed by investors. “What this episode shows is that India is severely lacking in domestic capital and its participation, and that notifications like this can actually threaten an entire industry. This is why it is imperative that India creates a system that incentivises domestic capital to invest in AIFs and startups,” Pai said.
Source: Economic Times
Around one thousand international firms currently working in China are planning to make India their new destination. Similarly, about 300 companies have also made preparations to set up their units in India, and have already started their negotiations with the Indian government. The coronavirus pandemic has engulfed the entire world and India too is not spared by the deadly virus, but amid this challenging time, there is an opportunity as China is likely to lose the status of a global manufacturing hub in the post-COVID-19 era, according to experts. They believe that the Indian economy may become the new manufacturing hub as several international companies, currently based in China, may exit from there. Countries like Japan, America, and South Korea, which have so far been dependent on China, are eyeing India to shift their base. Around one thousand international firms currently working in China are planning to make India their new destination. Similarly, about 300 companies have also made preparations to set up their units in India, and have already started their negotiations with the Indian government. These companies are in different sectors like Mobile Phones, Electronics, Medical Devices, Textiles, and Synthetic Fabrics. The list includes the names of many big companies that wish to shift their business from China.
1. Wistron Corporation, a subsidiary of well-known iPhone manufacturer Apple Inc
2. Pegatron, a Taiwanese company involved in assembling of iPhones
3. Two South Korean Iron and Steel companies - Hyundai Steel and POSCO
4. America's Electronics and Technology firm, Teledyne
5. The US pharmaceutical company, Johnson and Johnson
Not only this, but many South Korea companies are also showing their eagerness to shift to India. Japan has already announced a mega package of two billion dollars (about Rs 15,000 crore) for its companies, willing to shift their plants and factories outside China. India is attracting international attention because of certain concessions it has already announced for the corporate sector.In September 2019, the Indian government reduced the rate of corporate tax from 30 per cent to about 25 per cent, while the same has been reduced to 15 per cent for those companies that want to set up new factories. Notably, India's corporate tax rate is the lowest in Southeast Asia. Apart from India, international firms are also looking at countries like Vietnam, Malaysia, the Philippines, and Indonesia as an alternative. This is the reason that the Indian government is expected to accelerate Make In India policy after the end of lockdown. Organizations associated with the industrial sectors have been asked to contact big companies in the US and the UK, willing to shift their manufacturing units outside China. Negotiations have already started with about a hundred such firms. China may receive a major jolt if international companies decide to shift their manufacturing units to countries like India after the coronavirus crisis.
Source: Zee News
ET Intelligence Group: Driven by a glaring need to reduce dependence on a single source for raw materials, some Indian manufacturers are finding ways to tap alternative supply chains as a part of a strategy widely known as ‘China Plus One’. India imports merchandise worth around $70 billion from China annually, largely in sectors like consumer durables, auto components, pharma and electronics. The share of China in the country’s total imports is about 14%, the second-largest after the Middle-East. The list of Indian manufacturers planning to reduce exposure to imports from the Chinese includes Amber Enterprises, which is India’s largest contract manufacturer of air conditioners; auto component makers Endurance Technologies, Varroc and Gabriel; Hikal, which manufactures intermediaries for pharma and agrochemical sectors; contract manufacturer of personal and home care products Rossari Biotech; and agrochemical company Sumitomo Chemical India. Their aim is to reduce dependence on China by at least 10% and even to nil in some cases in the next few quarters. Endurance has started sourcing the bottom cases for aluminium front forks, which were earlier imported from China, from a local vendor. “Currently, a chunk of our supplies are imported from China. We are planning to reduce it to zero over the next few months,” said Anurang Jain, managing director, Endurance Technologies. The company recently won an order to supply alloy wheels and combined braking system from an automaker which was earlier importing those parts from China. The localisation at several Indian automakers has reached up to 90% and the balance imported raw material is primarily of electronic parts, which is difficult to localise due to lack of scale and capacity. However, Varroc Engineering, a supplier to automakers, has set up an electronic parts unit with an investment of Rs 100 crore. Gabriel India, a supplier of shock absorbers for auto companies, has developed in-house aluminium die tooling to have an alternative supply chain. At present, China fulfils nearly onefourth of India’s total imports of auto components. The domestic consumer durables sector imports nearly half of intermediate parts, including compressors, motors and printed circuit boards from China, which caters to 80-85% of total compressor demand and 95% of motor requirement for washing machines in India. Amber Enterprises, a maker of air conditioners (ACs), has started a motor unit to reduce its reliance on China. The company manufactures more than half of the contract manufactured ACs in India and one-fifth of the total sold in India. “The gradual increase in Customs duty on imported intermediates to promote domestic production and phased manufacturing practices may help reduce dependence on China; it may mirror India’s experience in the mobile phone market,” said Jasbir Singh, CEO, Amber Enterprises. The quantity and value of imported mobile phones came down by 64% and 57%, respectively, in the past three years, according to a reply in Rajya Sabha by commerce and industry minister Piyush Goyal. Hikal, which generates 70% of the revenue from exports of active pharma ingredients, has customers scurrying for an alternative source of inputs amid the global disruption in supply chain due to the pandemic. The cost factor, which made China a popular sourcing destination, has taken a backseat as clients are more concerned about the sustained availability of raw materials. This has opened a sizeable opportunity for us,” said Anish Swadi, president, strategy & business development at Hikal. Rossari Biotech has chosen the path of innovation to reduce exposure to imports of sanitiser dispensers from China. “We changed our packing of hand sanitizers to flip top from dispensers, this enabled us to deliver more than five lakh units and not miss on revenue opportunity when demand is sky-rocketing,” said Sunil Chari, managing director, Rossari Biotech. The size of the domestic hand sanitizer segment has grown to over ?500 crore from less than ?80 crore a few months ago, Chari added.
Source: Economic Times
India’s move to scan foreign direct investment (FDI) from China has left a trail of questions. Will New Delhi screen investments from Taiwan? India doesn’t recognise the sovereign status of Taiwan while Chinese leadership continues to claim sovereignty over the East Asian state. Will Chinese inflow in a rights equity issue by an Indian company come under scrutiny? What about an existing Chinese investor infusing capital when the Indian partner is unable to chip in funds? A week after the new FDI rules, many Indian firms are looking for clues to these queries. “Given Taiwan’s unique political position, one cannot completely rule out concerns around the possibility of the restrictions being applicable to it as well,” said Moin Ladha, partner at the law firm Khaitan & Co. British bank HSBC, which was established in Hong Kong and has operations in mainland China, is understood to have sought legal opinion on whether the Indian government’s recent directive on FDI covers Taiwan. Some other MNC banks which offer custodial services and offer fund flow of foreign investors may approach the Reserve Bank of India (RBI) for clarity. Industry Lobbies Ask for FAQs An HSBC spokesman declined to comment on the subject. “Though not formally clarified yet, it is expected that the government may also cover under the Press Note investments from Special Administrative Regions of China such as Hong Kong and Macau owing to China’s control and influence in such regions though they do not share land borders with India,” said Anshuman Mozumdar, partner, L&L Partners, Mumbai. This is also supported by recent reports of Securities and Exchange Board of India (Sebi) seeking particulars of beneficial owners of foreign portfolio investors (FPIs) located in such jurisdictions and countries like Taiwan, said Mozumdar.
PRIOR GOVT APPROVAL
According to the recent government notification, all overseas investments from countries sharing border with India would need a prior approval from the government. Even though Taiwan has a tax treaty with India and doesn’t share a border with India, strategic as well as fund beneficial owners from Taiwan are looking for clarity on FDI rules. Industry lobbies and consultants have asked the government to come out with FAQs on the FDI rules. More so because the power to regulate non-debt instruments (like equity or FDI as against ECB or foreign loans) has shifted from RBI to the government since 2019. “Chinese investors or investors linked to China are spread across various companies, portfolio funds and even pooled vehicles like Alternative Investment funds (AIFs). Are AIF’s inflows to be monitored, though technically they should not be. Will existing Chinese investors participating in a new round of capital raising exercise or in a rights issue have to undergo the same approval process like a new investor? What about indirect transfers — say an US company holding a sizeable stake in an Indian entity is acquired by a group from China or Hong Kong or Taiwan?” asked an advisor to one of the industry associations. In recent years, there have been investments from Taiwan in sectors such as infrastructure and energy. According to the person, the industry is also waiting to find out whether China-linked investments in sectors like technology and ecommerce would be treated differently.
RENOUNCING RIGHTS
Close on the heels of the new FDI rules — which followed restrictions imposed by other countries like Australia and Germany — India this week tightened the pricing rule for offshore investors buying stocks renounced by an India shareholder in a rights offering. Since the pricing of a rights issue is freely decided by a company and can be well below the price applicable in a preferential issue or a regular FDI, the regulation was sometimes misused by foreign investors and private equity houses. Promoters or a large shareholder would cut a deal with a foreign investor by renouncing the rights shares in favour of the offshore investor. Since this price in all likelihood would be lower than the one arrived under Sebi rules or Foreign Exchange Management Act, it would turn out to be a cheaper route for a foreign investor buying into a local company.
Source: Economic Times
As both economies continue to boom, India will import Nigerian petroleum products and oil, while Nigeria would import pharmaceuticals, machinery, textiles and telecom equipment and services from India. Today (29 April) marks 26 years of South Africa’s post-apartheid era, the end of South Africa’s National Party-led apartheid regime and the beginning of the post-apartheid era under the African National Congress and Nelson Mandela which also marked a significant shift in India-Nigeria relations. With the end of apartheid, the warm friendship between India and Nigeria transformed into a prominently economic-based relationship. But for a country with global ambitions such as India, mere economic ties wouldn’t be beneficial as China continues to rise and exert its influence in Africa. Thus, India needs to explore its point of departures in enhancing its ties with Nigeria. India started its official engagement with Nigeria in 1958 by establishing a mission two years before the country earned its independence. These relations solidified in 1962 with Jawaharlal Nehru’s visit to Nigeria. Since then, two other Prime Ministers of India have visited Nigeria and four Nigerian presidents have visited India. India and Nigeria enjoy warm, friendly and deep-rooted bilateral relations which in recent years has taken a prominent economic dimension. India today is the largest trading partner of Nigeria and Nigeria is India’s largest trading partner in Africa; in 2017- 18 alone their trade amounted to $11.76 billion. The value of this booming trade was duly recognized in 2017 as both governments acknowledged establishing a joint trade committee. As both economies continue to boom, India will import Nigerian petroleum products and oil, while Nigeria would import pharmaceuticals, machinery, textiles and telecom equipment and services from India. This strong inter-dependent demand and supply from both economies forecasts that trade and positive ties will continue to dictate future relations. Historically, India and Nigeria have enjoyed good cultural and political ties as well. For this, credit goes to colonialism, as Indian independence not only inspired the Nigerian independence moment but also left both newly independent states to deal with similar issues such as poverty, unemployment, multi-ethnic and multi-religious societies. Also, it left space for cultural cooperation through many wealthy and well established Indian ex-pats. Further, the colonial legacy left India and Nigeria with a strong distaste for colonialism, racism and xenophobia, which was mutually recognised and enhanced by both countries through the South-South cooperation and the Non-Aligned movement. However, decolonization, the end of the Cold War and the end of the apartheid regime made platforms such as non-alignment irrelevant. Besides, a failure to renew normative power in their foreign policies stunted India-Nigeria relations to a mere economic partnership with very less space for further political cooperation. Parallel to this economic partnership, India has also kept its policy of solidarity towards Africa operational. This policy, intended to exacerbate India’s international influence and help Africa to develop its potential, has led to a grand strategy of a soft approach towards Africa, of which Nigeria is a prominent unit. Thus, India provides various scholarships and fellowships to Nigeria. It also offers over 200 seats to Nigeria under the India Technical Economic Cooperation (ITEC) programme. India and Indian firms have also been training Nigerians in the accountancy, banking, medicine, education and Information Technology (IT) sectors. Similarly, various Indian teachers and doctors worked in Nigeria from the 1970s to 1990s. All this was to promote Nigeria’s human resources and facilitate its development. India is also assisting Nigeria to develop its military by helping to establish the Nigerian Defence Academy, Command and Staff College, Naval College, communication equipment and IT labs. India has deputed its officers to train Nigerians and has also trained Nigerians in its military institutions; this includes prominent personalities like Obasanjo, Ibrahim Babangida and Buhari. Besides, India also trades arms, ammunition, patrol boats, helicopters and jet fighters with Nigeria. India-Nigeria ties seem to glitter, but for a country with global ambitions such as India a mere economic partnership and diminishing soft power would not help. As China is thriving to be a major player in the region, this challenges India-Nigeria relations as never before. China’s emerging role as a trade partner and donor for economic recovery, Nigeria’s preference for China’s efficient state-to-state level engagement over India’s slow and unstable private sector investments have made India anxious about its relationship with Nigeria. Also, as resources are limited and China’s demand for energy expands, it is highly probable that China might replace India as Nigeria’s oil importer and economic partner. Also, the drastic increase in Chinese scholarships and military ties has overshadowed India’s soft power over Nigeria. Thus, the emergence of China as a major player has significantly challenged the nature of India-Nigeria ties. With such huge stakes, India should now make serious holistic efforts to re-engage and re-shape ties with Nigeria. As Nigerian President Obasanjo once claimed, “If you get it right in Nigeria, you are likely to get it right on the rest of the continent”. With positive historic relations and Nigeria’s potential to overtake South Africa as a regional and continental power, it becomes a prominent partner that India cannot afford to lose. Thus, India should start shaping an exclusive foreign policy towards Nigeria, rather than merely treating it as a unit of its grand African strategy. One way of engaging Nigeria could be through exclusive international platforms. Currently, India and Nigeria share membership of G-15, G-77, Commonwealth, Non-aligned moment and the UN. However, an exclusive platform similar to BRICS will enhance cooperation and recognition of mutual interests, as seen with India-South Africa relations post-BRICS formation. India and Nigeria should also explore options to cooperate with their mutual socio-economic problems such as poverty, unemployment, tuberculosis and AIDS. Similarly, India can also guide Nigeria with polio vaccination strategy, counter-insurgency, peace-building, terrorism and drug enforcement through annual conferences and military exercises. To encourage Nigeria to develop its potential and to compete against China’s state-backed projects, India should promote Public-Private Partnerships in Nigeria. This would boost India-Nigeria economic ties by reducing profit-seeking motives of investors and increasing state accountability. This will also politically empower private sector investments that have been facing uncertainty and risks with the Nigerian political economy. India should also look for future opportunities to enhance its relations with Nigeria. China’s authoritarianism and negligence with its animal husbandry policies even after SARS and the recent corona outbreak will cause some scepticism amongst developing economies about their future engagements with Beijing. This is an issue which India can easily capitalise on, as Nigeria hugely depends on Indian drugs. Similarly, frequent targeting of Chinese investment and citizens in conflict-affected regions of Nigeria might call for assertive domestic interventionist policies from China soon, which will be looked upon with hostility by several African states. India should seize this moment to depict itself as a non-assertive alternative to China. With all the economic, social, historic and political ties that India enjoys, it would be a blunder if it loses its privileged partnership with Nigeria.
Source: The Statesman
India ITME Society, the organiser of India International Textile Machinery Exhibition (ITME) 2020, has postponed the fair and it will now be held from December 8-13, 2021 at IEML, Greater Noida. The decision has been taken in view of COVID-19 crisis which has brought disruption for the textile and textile engineering industry the world over. "COVID-19 has brought disruption and distress for the general life, industry and economy, especially for the textile and textile engineering industry all over the world. …Under the circumstances, India ITME Society proposes to postpone India ITME 2020 by one year to December 2021," India ITME Society said in a press release. "The revised exhibitor manual and schedules would be available on the fair website shortly. All participation guidelines remain same and the payments shall be adjusted against revised exhibition dates," the release added. The new pre-event dates would be December 3-7, 2021, and dismantling dates would be December 14-15. The venue of the event is being shifted to IEML, Greater Noida as no large events and container movements are permitted by municipal authorities and traffic police department until the completion of the massive metro construction work in Mumbai. However, the organisers would be making special arrangements for shuttle buses from Delhi airport, Railway station and Metro station to the venue. "All details shall be available nearer to the event on the website. We also recommend participants to directly book hotels and accommodation through ITME website to avail reasonable rates and special offers negotiated for India ITME 2021," the organisers said. "We assure you that India ITME Society shall stand by the industry in all possible ways to see through these difficult times and shall double the efforts to ensure customer reach for exhibitors," the organisers added.
Source: Fibre2Fashion
Adviser to Prime Minister on Commerce, Textile, Industry and Production Abdul Razak Dawood Wednesday said that government under the leadership of Prime Minister Imran khan was working on relief packages for revival of textile industry, as textile demand has increased due to severe restrictions. Talking to Radio Pakistan, the adviser said that the government intended to pass on the benefit of reduced oil prices in international market to public as well. Despite the huge challenge of debt, the Prime Minister Imran Khan preferred to provide relief to people who are suffering from lockdown restrictions, he added. The adviser said PTI government has introduced the biggest stimulus package in the history of the country to help the nation in this difficult time amid coronavirus pandemic. He said just one programme was not sufficient to help all segments of the society, therefore the government was introducing multiple programmes to assist all sectors. He said under the Ehsaas programme an amount of 144 billion rupees was earmarked to help poor and needy people, which was being disbursed in a transparent manner across the country. He said to provide instant relief to small and medium enterprises the government would pay their three-month electricity bills. He said under another programme the unemployed labourers would be provided with cash benefits and for this purpose Rs75 billion have been set aside. He said some other programmes to support the informal workers of the country would be introduced within next few days. He said under digitization policy of the government, to encourage the IT sector in the country, mobile phone prices would also be reduced. To a question the adviser replied the government resorted to IMF just for a bailout package and he wished that this would be their last package with the Fund. He said a programme was being launched to assist the people who have been laid off from their jobs under which funds will be provided directly to the employers to help them pay the salaries of their employees.
Source: The Nation
UKFT is currently planning for bigger and better export activities and for a huge increase in the promotion of training and opportunities in the sector, according to UKFT chairman Nigel Lugg, and CEO Adam Mansell. They discussed how the UK Fashion and Textile Association is supporting the fashion and textile industry cope up during the COVID-19 outbreak. UKFT is also looking at opportunities for increasing the use of domestic manufacturing capacity. However, it is still very focused on offering immediate support and advice to our members. This is a very difficult time for our whole industry. As the trade association, UKFT is in close contact with the government and other business organisations such as the CBI, and together, it has been providing the most up-to-date, relevant help and advice, according to a press release. UKFT has been in regular dialogue with the government and other organisations such as the CBI. In all of these discussions, UKFT has welcomed the package of government support but has been very clear that the schemes do not cover a significant number of businesses in our industry and that to avoid business closures and job losses more needs to be done urgently. UKFT continues to push for a rates holiday for all, for support for those businesses who don’t qualify for the small business grants, for more flexibility in the furlough scheme and for support for those entrepreneurs and company owners that are at the heart of our industry. Retailers have been extending payment terms and, in some cases, asking for unrealistic discounts and UKFT has raised concerns over these practices to the government. It is also working with the industry and with government to start to plan how the industry moves back to some semblance of normality.
Source: Fibre2Fashion
About 130 garment factories in Cambodia have suspended operations due to a sharp decline in purchase orders caused by the COVID-19 outbreak, according to Spokesperson of the Cambodian Ministry of Labour and Vocational Training Heng Sour. About 130 garment factories in Cambodia have suspended operations due to a sharp decline in purchase orders caused by the COVID-19 outbreak, according to Spokesperson of the Cambodian Ministry of Labour and Vocational Training Heng Sour. Speaking at a press conference on April 27, Heng Sour said the situation is affecting about 100,000 local workers. To assist local workers affected by the pandemic, Cambodian Prime Minister Hun Sen has announced a support policy under which every employee of the closed factory is provided with a subsidy of 70 USD per month, including 30 USD from their employers. According to data from the Cambodian Ministry of Industry, Science, Technology and Innovation, the Southeast Asian country is home to 1,099 factories operating in textiles, footwear and handbag industries. Garment is one of the biggest exports of Cambodia. The Health Ministry of Cambodia on the same day reported that the country had recorded a total of 122 confirmed COVID-19 cases, with 119 patients cured.
Source: Vietnam Plus
