Sectors already identified by the Department of Promotion for Industry and Internal Trade (DPIIT) in consultation with other ministries include capital goods and machinery, mobile and electronics, gems and jewellery, pharmaceuticals, textiles and garments. While the Indian industry has been asked to set new targets towards building self-reliance in furniture, footwear and air conditioners, the government has parallelly begun laying the groundwork to achieve this in at least 10 promising sectors. Here, the emphasis is on targeting the quality of domestically made products so that “unnecessary” imports can be reduced in these sectors and the nation can find stronger footing in the global value chain. Sectors already identified by the Department of Promotion for Industry and Internal Trade (DPIIT) in consultation with other ministries include capital goods and machinery, mobile and electronics, gems and jewellery, pharmaceuticals, textiles and garments. India has a natural advantage in these sectors, which can grow to become a strength for the country, according to DPIIT Secretary Guruprasad Mohapatra. “A lot of work has to be done. Import dependence has to be reduced to the greatest extent possible and domestic manufacturing has to be ramped up, while export potential in these areas have to be explored,” said a senior government official on condition of anonymity. “This work has already begun. Ministries are looking at bringing more investment and making India a major manufacturing destination for their sectors,” the official said. Prime Minister Narendra Modi on Tuesday had raised concerns with India’s dependence on imports, specifically highlighting the over 30 percent Imports in the air conditioners sector. “We have to reduce it fast,” he said. The Indian AC industry, with an estimated Rs 12,000 crore market and sales of over 5.5 million units, is largely dependent on imported compressors — which accounts for 60-65 percent of an AC’s production value. An executive tracking the market said that in the premium segment, especially the split AC category, several Japanese companies that are market leaders have been importing from Thailand and Vietnam by taking advantage of the concessional tariffs available under the India-ASEAN trade pact or bilateral Free Trade Agreements signed with these countries. This is especially so in case of the newer ‘inverter’ category of ACs, where the compressor specifications and built-in electronics are different. Ministries are learnt to already be focussing on raising quality controls to make India globally competitive. “The quality is to improve, so there is a need for quality control orders and every ministry is identifying the orders to be issued. If necessary, then raising import duties may also be considered,” DPIIT’s Mohapatra had earlier told The Indian Express. “We have to emphasise Indian production of a certain scale, certain quality and certain standards. Then only can your product match up to the best in the world,” he had said. “While implementing measures like increasing import duties, we will need to make sure we are not crossing the WTO bound rates,” said trade expert Biswajit Dhar, professor at JNU’s Centre for Economic Studies and Planning. “With Atma Nirbhar Bharat, there is a danger of India going back to an import substitution framework which may not be quite appropriate in the 21st century. Taking this path would also be quite daunting, as the financial and technological resources required would be very high,” he said. “We need to be strategic in terms of the choice of sectors in which we want to be self-reliant. There should be a very strong case for increasing domestic value addition, besides considering aspects of consumer safety and national security,” he added. However, here, measures like the home ministry’s intent to remove imported products from its central police canteens, while discriminatory, will not clash with India’s international trade commitments. “For government procurement, there is an exception. Countries are allowed to bend in favour of their producers,” said a trade economist. Various schemes are already geared towards making India a major player in sectors like medical devices, APIs, according to Mohapatra. In some cases, the schemes are repackaged versions of older attempts by the NDA or UPA government to promote domestic production in these areas. For instance, the government on June 2 invited applications from companies to invest in India under the second phase of the electronics manufacturing scheme, which has a capital outlay of up to Rs 50,000 crore. An earlier version of a similar electronics manufacturing scheme, called the Modified Special Incentive Package Scheme had been notified by the previous UPA government in July 2012. It provided a capital subsidy of 20 percent to units inside special economic zones (SEZ) engaged in electronics manufacturing, and 25 percent to units outside SEZs.
The scheme, saw limited success, following which the second version of the scheme was approved by the Cabinet in March 2020 and notified on April 1. In addition to planning mobile manufacturing units, it plans to subsidise and provide incentives to peripheral device units such as charger and phone cover manufacturing units. As per Commerce Ministry, India imported $467.2 billion worth of commodities between April and March 2019-2020. Of this, leather and leather products were $1.01 billion, pearls, precious and semi-precious stones were about $22.4 billion and electrical and non-electrical machinery were $37.7 billion, while machine tool imports were about $4.2 billion.
Source: Indian Express
The Export Credit Guarantee Corporation of India (ECGC) will clear all pending claims of apparel exporters in the next four months, AEPC said on Friday. ECGC CMD M Senthilnathan said exporters should share all their documents and correspondences with their international buyers in one go for quick processing. He said this while participating in a webinar, organized by the Apparel Export Promotion Council (AEPC) on 'Managing Trade Credit under the COVID-19 Pandemic Situation'. "We are working under pandemic-related restrictions. But we are trying our best and we plan to clear all pending claims in four months' time," AEPC said in a statement quoting Senthilnathan. Senthilnathan said the insolvency rates are high in developed economies and is going to shoot up sharply due to the pandemic's impact on GDP growth, which is negative for most of the developed world. Right now all the buyers and most part of the world is affected due to COVID containment measures, he said. The ECGC recognizes that the situation calls for some credit accommodation and credit insurers need to take higher risks, he added. "We are prepared to take higher risks. In the last three years, the government has infused capital of Rs 1,350 crore in ECGC in recognizing the need to strengthen the institute supporting the exporters," Senthilnathan added. He said credit insurance is purely based on documentary evidence unlike tangible insurance like property, vehicle or health insurance, and hence exporters should send an email confirmation for any modification in the contract with the buyer. Sunil Joshi, Executive Director, ECGC, said that the pandemic has shown the limits of international businesses and the distressing impact it can have on real economies. It illustrates how much more interconnected supply chains have become and how all roads lead to and from China, he said. AEPC Chairman A Sakthivel said ECGC is extending support at this crucial juncture when international buyers had cancelled their orders leaving most of the apparel exporters in the country facing huge financial problems questioning their survival.
Source: Economic Times
GST Council is scheduled to meet on June 12 and likely to discuss the impact of the COVID-19 pandemic on tax revenues, sources said. The 40th meeting of the GST Council, headed by Finance Minister Nirmala Sitharaman and comprising state counterparts, will be held via video conferencing. The meeting would discuss the impact of the pandemic on revenues of the Centre and states and ways to bridge the revenue gap, sources said. Faced with dismal collection and extended deadline for filing returns, the government has refrained from releasing the monthly GST revenue collection figures for the months of April and May. The Council will also discuss ways to garner funds to compensate states for the revenue loss due to Goods and Services Tax (GST) implementation, In the previous council meeting on March 14, 2020, Sitharaman had said that the Centre will look into the legality of GST Council borrowing from market to meet the compensation requirements. With states raising the issue of shortfall in compensation kitty, there were discussions on resorting to market borrowing to meet the revenue guarantee to states. Under GST law, states were guaranteed to be paid for any loss of revenue in the first five years of the GST implementation from July 1, 2017. The shortfall is calculated assuming a 14 per cent annual growth in GST collections by states over the base year of 2015-16. Under the GST structure, taxes are levied under 5, 12, 18 and 28 per cent slabs. On top of the highest tax slab, a cess is levied on luxury, sin and demerit goods and the proceeds from the same are used to compensate states for any revenue loss. The Council would also discuss waiver of late fees for non-filing of GST returns for the period August 2017 to January 2020
Source: Economic Times
Fresh proceedings will not be initiated for at least six months starting from March 25 amid the COVID-19 pandemic. The government on Friday promulgated an ordinance to amend the Insolvency and Bankruptcy Code (IBC) whereby fresh insolvency proceedings will not be initiated for at least six months starting from March 25 amid the COVID-19 pandemic. Default on repayments from March 25, the day when the nationwide lockdown began to curb COVID-19 infections, would not be considered for initiating insolvency the proceedings for at least six months. The move may is expected to provide relief for corporates as the pandemic and subsequent lockdown had significantly impacted economic activities. Insolvency proceedings would not be initiated for “any default arising on or after March 25, 2020 for a period of six months or such further period, not exceeding one year from such date, as may be notified in this behalf,” the ordinance said.. no application shall ever be filed for initiation of corporate insolvency resolution process of a corporate debtor for the said default occuring during the said period,” it said. Initiation of corporate insolvency resolution process has been suspended for the given time. Three sections under the Code — 7, 9 and 10 — would not be applicable for the six-month period. In this regard, a new section ‘10A’ has been inserted in the IBC. While sections 7 and 9 provide for initiation of insolvency proceedings by financial creditors and operational creditors, respectively, section 10 pertains to corporate applicants. Under the IBC, an entity can seek insolvency proceedings against a company even if the repayment is delayed by just one day. This is subject to the minimum threshold of ₹1 crore. Earlier, the threshold was ₹1 lakh. On May 17, Finance and Corporate Affairs Minister Nirmala Sitharaman said the government would provide various relaxations under the insolvency law, including suspending fresh proceedings for up to one year. “After all, when lockdown gets lifted immediately, you are not sure how much of the businesses will get restored... No fresh insolvency proceedings will be initiated for up to one year,” she had said. The measures were announced as part of the fifth and final tranche of the over ₹20 lakh crore stimulus package that was unveiled to boost the economy ravaged by the COVID-19 outbreak and subsequent lockdown.
Source: The Hindu
Justice M.R. Shah wonders what relief has ultimately been granted if interest continues to accrue for the moratorium period. The Supreme Court questioned the Reserve Bank of India’s (RBI) regulatory package requiring the continuation of payment of interest on bank loans after the three-month moratorium during the pandemic lockdown is lifted. “On one hand granting moratorium and then payment of interest... This is detrimental... These are unprecedented times... These are not normal times,” Justice Sanjay Kishan Kaul orally remarked during the virtual court hearing. Solicitor General Tushar Mehta, for the Centre, sought time to consult the Finance Ministry. Justice Bhushan said there were two issues in the case. One, whether interest should be charged at all during the moratorium period. Two, whether there should be an accrual of interest to be paid by the borrower in bulk or at a monthly basis after the lifting of the embargo.
Next hearing on June 12
The court scheduled a hearing on June 12.
The hearing came a day after the RBI filed an affidavit in court saying it did not consider it prudent or appropriate to go for a forced waiver of interest, risking the financial viability of the banks it was mandated to regulate and putting the interests of the depositors in jeopardy. Senior advocate Rajiv Dutta, for petitioner Gajendra Sharma, said the RBI affidavit reflected that the Central bank placed “profitability of banks over and above public interest in these distressing times”. Mr. Dutta reminded the court about how it had recently said that commercial interests should not overawe public health and interest. This was with reference to Air India’s decision to assign middle seats to passengers in the Vande Bharat mission flights. In its affidavit, the RBI was responding to a petition challenging the charging of interest rate on loans even during the three-month moratorium period declared amid the COVID-19 pandemic and national lockdown. The RBI had recently extended the moratorium till August 31.
‘Not a waiver’
The Central bank said its regulatory package introduced amid the pandemic lockdown was “in its essence in the nature of a moratorium deferment and cannot be construed to be a waiver”. “Banks are commercial entities that intermediate between depositors and borrowers. They are expected to run on viable commercial considerations,” the affidavit said. The RBI reasoned that banks were custodians of the depositors’ money. “Actions are guided primarily by the protection of depositors’ interests... Any borrowing arrangement is a commercial contract between the lender and the borrower... Interest or advances form an important source of income for banks,” the RBI said. It said the regulatory package introducing the moratorium was permitted with the object of mitigating the burden of debt servicing brought about by the disruption on account of COVID-19 to ensure continuity of viable businesses. A Bench led by Justice Ashok Bhushan had earlier issued formal notice to the Central bank and the Centre on a petition by Gajendra Sharma, who said though there was a moratorium on loans, there was also accrual of interest, which had to be paid in bulk or at a monthly basis after the lifting of the embargo. The court had wanted to know why the government and the RBI seemed to think that natural justice was not violated when “the government, on one hand, ceased the working of individuals and, on other hand, is asking to pay the loan interest during moratorium”. Central to the challenge in the petition was the RBI notification of March 27. “The interest charged during moratorium period would be added up into the EMIs at the end of three-month forbearance. It will have to be paid in one go or be equally divided in all future EMIs. The monthly bill for customers will increase… In the present scenario, when all the means of livelihood has been curtailed by the government of India by imposition of lockdown and the petitioner has no way to earn a livelihood, the imposition of interest will defeat the very purpose of permitting moratorium on loans,” the petition contended.
Source: The Hindu
Recently, CMAI wrote letters to the Smriti Zubin Irani, and Piyush Goyal to consider levying a temporary additional COVID Duty on all imports of apparel and readymade garments for a period of 12 months to create a level-playing field. India's apparel makers have witnessed a 84 per cent drop in sales in May, according to The Clothing Manufacturers Association of India (CMAI) survey. The drop was due to shift in focus of the factories to manufacrture masks and PPE kits from garments amid the coronavirus pandemic. The CMAI represents garments-majors like Aditya Birla Fashion and Lifestyle, Arvind Fashions, Future Group, Shoppers Stop and Raymond. CMAI added that even after the ease in restriction, the situation for apparel factories remained grim. The clothing association said 40 per cent of factories were engaged in manufacturing of essential products like PPE products and face masks. And, other garment factories were operating at an average 25 per cent of their capacity. Recently, CMAI wrote letters to the Minister of Textiles Smriti Zubin Irani, and the Minister of Commerce and Industry Piyush Goyal to consider levying a temporary additional COVID Duty on all imports of apparel and readymade garments for a period of 12 months to create a level-playing field. CMAI asked governemnt to impose COVID duty on countries with whom India has a Free Trade Agreement, especially Bangladesh. The suggestion was made as the garment-manufacturing body estimated that there would be more than 40 per cent drop in domestic demand of apparel due to the lockdown. It is also estimated that more than 20 per cent of the domestic units may face closure due to the COVID crisis.
Source: Business Today
As the textile market in Surat re-opened in Unlock-1, many shops are facing a shortage of labour and have urged the government to relax quarantine norms for labourers. As the textile market re-opened in Surat, Gujarat in the first phase of Unlock-1, traders faced a shortage of labour. In order to address the demand and supply disparity, the textile businessmen in a letter to Chief Minister Vijay Rupani urged the government to relax quarantine norms for labourers who wish to return to the state. Textile market in Surat re-opened amid relaxations in lockdown but businessmen said that they're facing a labour shortage. They urged the state govt to provide some relaxation in the guidelines, especially that pertaining to quarantine upon labourers' return. Dinesh Katariya, a businessman told ANI, "The govt has decided to open the market. We urge them to provide some relaxation in the guideline for labourers and bring in a scheme in wherein everyone stays safe and labourers are able to work." "Industry can't function without labourers. They don't have money. If they're sent to 14-day home quarantine upon returning they'll face issues of money, accommodation&food. So, we've written to Municipal Commissioner&state govt for a solution," Katariya said further. It is worth mentioning that the Union Ministry of Home Affairs (MHA) in its Unlock-1 guidelines said that in urban areas (outside containment zone), all standalone shops, neighbourhood shops and shops in residential complexes are now allowed to open. The ministry further stated only a limited number of activities would remain prohibited throughout the country during Unlock-1, which came into effect from June 1 and will be effective till June 30.
Source: Times Now
Udaipur: The Udaipur Chamber of Commerce & Industry (UCCI) has submitted a detailed proposal to the Director General of Foreign Trade (DGFT) and the state government for the development of an export hub here. “Udaipur is a gateway to the export of goods from southern Rajasthan, including the nearby districts like Rajsamand, Bhilwara, Chittorgarh, Pratapgarh, Sirohi, Banswara and Dungarpur. The demand for goods from Udaipur is quite consistent in the global market. Items such as lead & zinc metals, electrical & electronic equipment, fabricated goods, plastic products, HDPE woven sacks, marble & granite, soapstone & other mineral-based products, quartz & other dimensional stone products, textile, handicrafts, etc., are some of the categories which have high volume of exports,” manufacturers and business magnates claimed in the proposal sent to the authorities. Development of export hub in each district has been in the pipeline and recently it was announced by Union finance minister Nirmala Sitharaman that such export hubs will be developed soon. “We understand that 2020-21 has begun on a disappointing note but we should set aside the worries and focus on recovery. As such government should start with the process of development of export hubs so that exports can push their production and cover the losses,” said UCCI president Ramesh Kumar Singhvi. Chartered accountant Pawan Talesara, who drafted the export plan proposal, said in the report, we have given some important policy suggestions for the growth of the exports in all categories. One suggestion is to custom notify the inland container depot at Khemli so that it can be used as a dry port. Also we have suggested the government that more container depots may be set up for better facilitation.
Among other suggestions include freight subsidy, development of handicrafts and stone clusters, notification of Maharana Pratap International Airport for custom clearances, to dispose of the old cases of IGST (integrated goods and service tax) which have been pending for a long time and simplification of export policy for marble.
Source: Times of India
With debt servicing capacity of borrowers coming under strain as the country enters a period of possible economic recession, bad loans of Indian banks are expected rise sharply this fiscal, which could lead to yet another year of loss for public sector banks (PSBs), ratings agency ICRA said in a report. ICRA estimated gross non-performing assets to rise to 11.3-11.6% by March 2021 from an estimated level of 8.6% for March 2020, with fresh gross slippage of 5-5.5% of standard advances in FY21. The agency said uncertainty on the asset quality of banks remains high with almost 30-40% of the loan book across various banks under the repayment moratorium. “While the lockdown has impacted the debt servicing ability of borrowers, the extent of revival in economic activities as the restrictions are eased will drive the final impact on asset quality of banks,” ICRA said, adding even if 10-20% of these borrowers were to default, the slippage rate for banks could rise to 3-8% of advances. It added that credit provisions will continue to exceed operating profits for PSBs during FY21, translating to the sixth consecutive year of loss. PSBs will need estimated capital infusion of ₹45,000 crore to ₹82,500 crore against an earlier estimated ₹10,000 crore to ₹20,000 crore even under a scenario of low credit growth of 3-4% for FY21, ICRA said. The Centre had expected PSBs to raise capital from the markets and hence possibly did not budget for any capital infusion for FY21. “The RBI moratorium was extended... till August 31, 2020; we expect the asset quality stress to reflect only in Q3 and Q4 of FY21 results,” said Anil Gupta, sector head, Financial Sector Ratings, ICRA Ratings.
Source: The Hindu
With the phenomenal rise in the Covid-19 cases in the city after unlock 0.1, the Federation of Surat Textile Traders Association (FOSTTA) has decided not to allow any finished and unfinished fabric parcels from the powerloom units and textile mills for a week starting June 8. FOSTTA office-bearers stated that the representatives had organised a meeting with municipal commissioner Banchhanidhi Pani on Friday to discuss the operational issues at the textile markets due to the spike in the Covid-19 cases at Limbayat and central zone of the city. It has been decided to keep the markets operational from 9 am to 7 pm by strictly banning the entry of workers and others coming from the containment zones and hotspot areas. The traders will have to strictly follow social distancing rules. Secretary of FOSTTA, Champalal Bothra, said: “A decision has been taken to ban the delivery of grey fabrics and finished fabrics from the powerloom units and textile mills. However, the parcels containing value addition of the fabrics will be allowed in the markets.” “The chewing of tobacco and smoking will be strictly prohibited and that the managements will be fixing fine amount for those caught in the markets,” added Bothra. “The workers in the markets and textile traders arriving from other states will have to remain in the home quarantine strictly for 14 days. There will be no entry of children below 10 years and senior citizens above 65 years in the textile markets,” said Manoj Agarwal, president of FOSTTA.
Source: Times of India
''India for SURE'', a project with the concept of India as a Stable, sUstainable, Reliable, Ethical partner for sourcing fashion goods with the Tamil Nadu textile sector as the base, was launched by the Indian Texpreneurs Federation (ITF) on Friday. The project was touted to be one in line with the Prime Minister Narendra Modi''s vision ''Made in India.'' With June 5 being World Environment Day, ITF has placed sustainability as its core. In this process of establishing the Tamil Nadu textile sector as the most sustainable in the textile community, which is reinforced with authentic data, it would create a good visibility for the sector among the international community and also create a trust in the SURE model, ITF convenor Prabhu Dhamodharan said. With its members across the entire value chain, ITF has been able to create a collective interest in this brand positioning initiative and create a road-map to facilitate a Sustainability Accord a first of its kind cluster-level commitment for sustainability, he said. As a first step, ITF is developing a sustainability blueprint with the objective of highlighting priority sustainability target areas and moving with a high-level direction to achieve targets and the blueprint would also showcase the achievements and the strengths of the member- companies in sustainability, Dhamodharan said. ITF also launched a data collection initiative to consolidate the individual excellence of the member-companies into numbers that would help in quantifying the strengths in sustainability, he said. Coimbatore-based ITF is an association of around 500 textile manufacturing companies covering the entire value chain of Tamil Nadu textile industry, including integrated, standalone spinning, weaving, processing, home textiles and apparel companies. Stating that ITF aligns with the Prime Ministers vision and his recent announcement to focus on ''Made in India'' products that are made for the world, he expressed confidence the country would post-COVIDA 19 emerge as the preferred global source of apparel and textile products. "We need to shift our focus more towards our areas of excellence and attract the attention of our stakeholders towards it. We believe that sustainability will be the key to achieve it," Dhamodharan said.
Source: Outlook India
NEW DELHI: The finance ministry has asked all ministries and departments not to initiate any new scheme in the current financial year and said that there is a need to use resources prudently in the wake of the COVID-19 crisis. However, funds for schemes under the Pradhan Mantri Garib Kalyan Package, the Aatmanirbhar Bharat Abhiyan package and any other special package or announcement would be allocated, according to an office memorandum by the Department of Expenditure, which comes under the finance ministry. Also, schemes that are already approved for the current financial year will remain suspended till March 31 next year or further orders. This would also include those schemes for which in-principle approval has been given by the department. "It may be appreciated that in the wake of the COVID-19 pandemic, there is an unprecedented demand on public financial resources and a need to use resources prudently in accordance with emerging and changing priorities," the expenditure department said adding that it has been receiving many new proposals for in-principle approval from various ministries or departments. "No new proposals for a scheme/sub-scheme should be initiated this year (2020-21) except the proposals announced under the Pradhan Mantri Garib Kalyan Package, the Aatmanirbhar Bharat Abhiyan package and any other special package/announcement," it said. With regard to the existing ongoing schemes, the department said it has already given an interim extension till March 31, 2021, or till the date the recommendations of the 15th Finance Commission come into effect, whichever is earlier. "No funds may be released for schemes that are not in strict conformity to the instructions...nor should budgetary provisions be made available by re-appropriation to such schemes," it said adding any exceptions to these guidelines would require approval of the expenditure department.
Source : Economic Times
India is much too dependent on China to break away from it easily. We should, instead, focus on boosting manufacturing in areas where we have a change of taking the lead. In these days of atmanirbharata, there is continuous chatter exorting Indians to stop buying Chinese goods and huge traffic on the subject on Whatsapp and news channels. There were apps which help remove Chinese apps — which have since been taken out by Google Play — proudly forwarded by people claiming they have done it. These messages are flowing through mobile phones (or on on TV sets via set-top boxes — all of these gadgets are made in China. Is it realistic for India to stop buying from China, and will these gestures really “teach it a lesson”? Who does it impact, more China or India, and is there a way we can overtake China in some areas? Let’s look at these aspects, along with areas where we can lead the world, including China, in manufacturing.
Dependence on China
India currently imports over $75 billion worth of goods from China, which is the largest source of imports for India. The US and other countries come next, but remember here that we do not buy defence equipment from China — and if you exclude defence, the gap between the No 1 source ie China and others will even larger. For China, India is the seventh- largest recipient of exports with a share of 3 per cent. So in case India does reduce its imports, it will have negligible impact on China. On the other hand, India exports $16 billion worth of goods to China, which is about 5 pr cent of China’s imports. So, India is quite dependent on China and if there is a disruption, it will impact several sectors and increase costs on most products for consumers/ industry, if we were to import from other more expensive sources. Several sectors will face significant disruption and cost increases: phones: India is estimated to import mobile phone components worth ₹7,000-8,000 crore from China every month. Chinese brands are estimated to have about 60 per cent market share of mobile phones sales in India. This excludes Apple, which is not completely manufactured in China, as well as components that go into other non-Chinese brands. If we add these, the total share of China in mobile phones could be over 75 per cent. Electronics and consumer durables: This industry is also heavily dependent on China for its components and finished products. There is a significant jump expected in sales of TVs, washing machines, dish washers etc post lockdown, which will result in more imports from China. Solar industry: About 84 per cent of the solar requirement for the National Solar Mission is met through imports from China. India has plans of significantly enhancing its power generation through solar, and demand from China is expected to go up here too. Pharmaceutical industry: There is a heavy reliance on Chinese imports for raw materials in the pharmaceutical industry. In some cases, such as life-saving drugs, the dependence on Chinese imports is 90 per cent. Similarly, most of the medical equipment is largely imported or dependent on Chinese components, including ventilators. Textile industry: India has free trade agreements (FTAs) with least developed countries such as Bangladesh. Chinese fabric is manufactured into garments in Bangladesh, and imported at lower costs to India. There are several other industries which are highly dependent on China eg. bicycles, firecrackers, small components, building material, toys etc. So, we may end up shooting ourselves in the foot by stopping purchases of Chinese products in the short term. The better approach is to work at the national, State and industry levels to indigenise and produce more intermediates and products in the country, or finding alternate sources. However, these decisions need to be taken commercially, not based on sentiment or regulations. No one wants the government to dictate what is to be produced and how, which will mean return to Licence Permit raj.
Manufacturing potential
China has achieved its current status through clarity of strategy and effective implementation for over three decades, which can’t be overtaken or replaced in the short term. This is something we should realise and think through before making grand public statements which have the potential to irritate our biggest source of imports and hurt both manufacturing and consumption in the short term. India is also far away from its target of having manufacturing cntribute 25 per cent of the GDP (something that has been discussed for over a decade) — currently, it is only at about 17 per cent. Clearly, we are not able to make that leap, and the current policies and strategies are not yielding adequate results. India needs to think of a strategy based on its strengths, and retool several aspects of economy and the focus on implementation. With clarity of strategy in the medium-to-long term, we can achieve domination in some sectors of the economy through a combination of Indian and global expertise and capital. Experts usually focus on ease of doing business, consistent taxation policies, land acquisition and labour policies, which are well documented and debated.
Additive technologies
India can focus on one area where it can differentiate and attract global and domestic investors and be a leader in the future — additive manufacturing. The next big thing will be 3D (additive) manufacturing, and robotics and automation. This is the confluence of manufacturing and IT. India is at the leading edge on IT and is also has a good base of advanced manufacturing, and thereby it has the platform to become a leader in this space globally. This can be the answer to China’s prowess of mass manufacturing, and if we can take the lead here in a decade or so, we can leave China far behind. So whilst China became the global leader in mass manufacturing, India can become the world leader in distributed manufacturing by focussing on 3D. We need to approach this strategically and develop a holistic framework to achieve this. Some fo the actions to achieve this could be: Set up a National Institute for Advanced Manufacturing to educate, research and develop technologies in this area. This can be done along the lines of ISRO, where the best global experts are invited to contribute and given adequate autonomy. Identify the best global companies in this space and woo them to come and set up R&D in India. Encourage Indian companies who venture into this space with tax breaks and other incentives ( being a nascent sector, this will not make any dent on the national budget). Announce a fund like the ones being proposed by Govenment of India to invest in the equity of start-ups in this space. Encourage government institutions like ISRO, NAL and other leading defence institutions to actively work on this with budgetary support. This will ensure that there are multiple people working on this area. India identified this area early, and even announced the National Policy for Advanced Manufacturing as far back as 2016, but we are yet to see significant actions on this area by the government and industry. The time has come to focus on this area now. We should take a strategic view and develop a clear plan for domination. Let us avoid being swayed by slogans which can cause more harm than benefit to reduce dependence on China. Let us focus on areas where we become leaders in fields of our own choosing.
Source : The Hindu Business Line
oimbatore : In line with Prime Minister, Narendra Modi’s vision of Made in India, Indian Texpreneurs Federaton( ITF) Friday initiated a project ‘India for SURE’ with the concept of India as a Stable, sustainable, Reliable, Ethical partner for sourcing Fashion Goods with the Tamil Nadu Textile Sector as the base. Today being the World Environment Day, ITF placed Sustainability as its core, as part of the theme India for SURE. With this process of establishing Tamil Nadu Textile Sector as the most sustainable in the textile community, which is reinforced withauthentic data, it will create a good visibility for the sector in the International Community and also create a trust in the ‘SURE’ model, ITF Convenor, Prabhu Dhamodharan said. With ITF members across the entire value chain, ITF has been able to create a collective interest in this brand positioning initiative and create a road-map to facilitate a Sustainability Accord – a first of its kind cluster level commitment for sustainability, he said. As a first step, ITF is developing a Sustainability Blueprint with the objective of highlighting priority sustainability target areas and moving with a high-level direction to achieve the targets and the Blueprint will also showcase the achievements and the strengths of our member companies in Sustainability, Prabhu Dhamodharan said. ITF also launched a Data Collection initiative to consolidate the individual excellence of the member companies into numbers that will help in
quantifying the strengths in Sustainability, he said. Coimbatore-based ITF Coimbatore is an association of around 500 textile manufacturing companies covering the entire value chain ofTamil Nadu textile industry including Integrated, Standalone Spinning, Weaving, Processing, Home
Textiles and Apparel companies.
Stating that ITF wholeheartedly align with Prime Minister’s Vision and recent announcement to Focus on ‘Made in India’ products that are made for the World, he expressed confidence that post COVID, India will emerge as the preferred global source of Apparel and Textile Products. “Weneed to shift our focus more towards our areas of excellence and attract the attention of our stakeholders towards it. We believe that Sustainability will be the key to achieve it,” Prabhu Dhamodharan said.
Source: The Covaipost
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
833.31 |
USD/Ton |
1.63% |
06-06-2020 |
|
VSF |
1283.10 |
USD/Ton |
0% |
06-06-2020 |
|
ASF |
1603.88 |
USD/Ton |
0% |
06-06-2020 |
|
Polyester POY |
783.96 |
USD/Ton |
0.18% |
06-06-2020 |
|
Nylon FDY |
1974.00 |
USD/Ton |
0% |
06-06-2020 |
|
40D Spandex |
3990.30 |
USD/Ton |
0% |
06-06-2020 |
|
Nylon POY |
2284.20 |
USD/Ton |
0% |
06-06-2020 |
|
Acrylic Top 3D |
5188.80 |
USD/Ton |
0% |
06-06-2020 |
|
Polyester FDY |
1008.15 |
USD/Ton |
0% |
06-06-2020 |
|
Nylon DTY |
1868.25 |
USD/Ton |
0% |
06-06-2020 |
|
Viscose Long Filament |
1776.60 |
USD/Ton |
0% |
06-06-2020 |
|
Polyester DTY |
987.00 |
USD/Ton |
0% |
06-06-2020 |
|
30S Spun Rayon Yarn |
1734.30 |
USD/Ton |
0% |
06-06-2020 |
|
32S Polyester Yarn |
1402.95 |
USD/Ton |
0% |
06-06-2020 |
|
45S T/C Yarn |
2171.40 |
USD/Ton |
0% |
06-06-2020 |
|
40S Rayon Yarn |
1579.20 |
USD/Ton |
0% |
06-06-2020 |
|
T/R Yarn 65/35 32S |
2016.30 |
USD/Ton |
0% |
06-06-2020 |
|
45S Polyester Yarn |
1903.50 |
USD/Ton |
0% |
06-06-2020 |
|
T/C Yarn 65/35 32S |
1677.90 |
USD/Ton |
0.85% |
06-06-2020 |
|
10S Denim Fabric |
1.12 |
USD/Meter |
-0.25% |
06-06-2020 |
|
32S Twill Fabric |
0.64 |
USD/Meter |
-0.22% |
06-06-2020 |
|
40S Combed Poplin |
0.94 |
USD/Meter |
-0.30% |
06-06-2020 |
|
30S Rayon Fabric |
0.48 |
USD/Meter |
0% |
06-06-2020 |
|
45S T/C Fabric |
0.64 |
USD/Meter |
0% |
06-06-2020 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14100 USD dtd. 06/06/2020). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same
Indonesia has exempted fabrics made in Vietnam and India and synthetic yarn and curtains made in South Korea and Hong Kong from new import tariffs imposed on some textile products from May this year till November 2022, according to the country’s finance ministry. The move aims at protecting the domestic upstream industry from a recent surge in imports. In 2019, the Indonesian government imposed temporary additional duties on imports of textiles and textile products up to 67.7 per cent, according to Vietnamese media reports. Moody’s Investors Service had earlier warned that the US-China trade tensions could lead to an influx of Chinese yarn, fabrics and garments into Indonesia, potentially disrupting the stable levels of demand and supply in the country.
Source: Fibre2Fashion
Adviser to Prime Minister on Commerce Abdul Razak Dawood on Friday informed the Senate that European Union (EU) extended its Generalised Scheme of Preferences (GSP)-Plus facility to Pakistan until 2023. Speaking during the Question Hour, Dawood said that as a result of the EU’s “Special Incentive Arrangement for Good Governance and Sustainable Development”, Pakistan had been given the GSP-Plus facility, allowing Pakistani products a duty-free access to EU on 91% tariff lines. Pakistan’s total trade with the EU in 2018-19 was worth $14,158.29 million with exports amounting to $7,986.11 million against imports of $ 6,172.18 million. He added the trade balance of $1,813.93 million in 2018-19 remained in favour of Pakistan. “This arrangement has helped Pakistani products to compete successfully with similar products originating from other competitors, such as China, India, Bangladesh, Turkey and Vietnam etc,” Dawood told the house. “Pakistani products have duty-free access on 91% of EU’s tariff lines to all 27-member states [of the continental bloc] since January 1, 2014,” he said. “The preferential access sectors include textiles, leather, surgical and sports goods and also non-traditional sectors including light engineering dry fruits, marble, handicrafts, and pharmaceutical.” According to the adviser, the GSP-Plus had been granted to Pakistan for 10 years — from January 1, 2014 to December 31, 2023. He said the GSP-Plus was linked to the implementation of 27 UN Conventions “A biennial review is carried out by the EU to monitor the compliance of Pakistan with its treaty obligations,” Dawood said. “Three biennial reviews have been successfully concluded in 2016, 2018 and 2020 and the GSP-Plus facility for Pakistan will continue.” He told the house that the concerns raised by the EU regarding human rights, labour rights, climate change and governance, in its Third Biennial Review Report had already been shared with the quarters concerned. “Continued compliance with the 27 UN Conventions is mandatory for Pakistan to retain this status as GSP-Plus is very important for Pakistan. The continuation of this facility is the collective responsibility of media, politicians and business community,” he added. Responding to a supplementary question, Dawood said Pakistan has got orders for the export of personal protective equipment. The adviser said the country’s fruits, vegetables, meat and poultry exports to the Middle Eastern countries witnessed 36% growth over the last 12 months. Responding to another question, Dawood said Pakistan enjoyed close and cordial relations with Turkey and was negotiating a free-trade agreement with it to promote trade relations.
Source: APP
An agreement on textile cooperation was jointly signed by National Textile University (NTU), Pakistan and Shanghai University of Engineering Science (SUES), China last week. According to SUES, NTU is the very first Pakistani partner for SUES, and the move is of great significance when it comes to the educational exchanges and cooperation between universities of South Asian countries involved into China’s Belt and Road Initiative (BRI), China Economic Net reported on Friday. Xia Jianguo, the President of SUES, noted that the signing ceremony was SUES’s first move of international cooperation ever since the COVID-19 outbreak. The iron-clad friendship between China and Pakistan has laid a solid foundation for the cooperation and exchanges between both universities. President Xia spoke highly of the competences and characteristics of research and talent training in NTU regarding textile. Over the years, SUES has conducted a wide range of international exchanges and cooperation with overseas universities and enterprises, he mentioned, adding that he firmly believed the cooperation would provide both with more opportunities for common development. Prof Dr. Tanveer Hussain, the Rector of NTU, expressed his heartfelt thanks to SUES for the arrangement and preparation for the video signing ceremony. He said NTU has been the premier institute of textile education in Pakistan, meeting the technical and managerial human resource needs of almost the entire textile industry of Pakistan ever since its inception. What is more, he expressed full confidence and keen expectation for a long-term cooperation between the two universities in multiple levels and fields. The signing ceremony was held in video form. Directors from SUES’s Office of International Cooperation and Exchange and the Institute of Textile and Garment were present.
Source: Associated Press of Pakistan)
The budget has failed to address any of the problems caused by the lockdown, insiders say. Nepal's textile industry is close to collapse as the government has not offered any stimulus package in the budget for the coming fiscal year 2020-21, the Nepal Textile Industries Association said. President of the association Shailendra Lal Pradhan said the textile sector was not listed among the 44 industries that were allowed to open partially, even though it had been severely hit by the virus lockdown with 95 percent of the factories shuttered. The association said the government's annual financial plan did not contain any relief measures for the textile industry despite the suffering brought about by the prolonged stay-at-home order. "The budget has been touted to be designed to boost and revive the economy, but it has failed to address any of the problems caused to the industry by the virus lockdown," said the association. The textile industry did not receive the facilities announced in the past, and even the existing ones have been taken away, it said. The government had proclaimed that the textile industry would get interest subsidies, but it did not happen. And now the budget statement says the electricity tariff exemption has been removed. "The association is shocked and surprised by this announcement," it said. A lot of money has been poured into the domestic textile industry. In 2014 alone, investors pumped in another Rs1.5 billion, encouraged by the government announcement that they would get a 70 percent value added tax refund. All that investment has been jeopardised with the government withdrawing the VAT adjustment facility that fabric manufacturers have been getting for the past 20 years, Pradhan said. “The industry incurred heavy losses in the last two years for lack of government support. Government policy seems to have been designed to discourage the domestic textile industry, as it is insensitive to the sector's problems,” he added. "We have reached a decision to close the industry as the government has failed to address a single demand," said the association. Industry leaders urged the government to act to solve their problems or simplify the company closure procedure so they can make a quick exit. "We are already unable to compete with Indian textiles as they have been entering the country illegally. We are being priced out of the market because the government charges 13 percent value added tax on domestically manufactured fabrics while there is only a 5 percent goods and services tax on textiles in India,” the association said. A favourable investment climate cannot be created with the continuous entry of contraband textiles from India and other countries, which the government has not been able to control, it said. Smugglers can easily sneak in various types of cloths due to the open border with India. The administration has not been able to stop the illegal trade which ranges from border hopping for household goods to wholesale business. In order to legalise fabric imports, the association has recommended to the government to determine the actual value of the merchandise and create a provision to impose customs duty and tax, but officials have not taken this proposal seriously. "We are not able to do anything when textiles and textile products are being imported into the country at prices lower than the cost of the raw material," the association said. According to the association, there are 250 small and large textile factories operating in the country that provide 50,000 jobs. If the industry goes belly up, the state will have to feed the more than 250,000 people that depend on them. The textile industry has planned to create 500,000 new jobs over the next five years to support the government's target to create 750,000 jobs in the coming fiscal year. But the way things are going, it may be difficult to make that happen, the association said.
Source: Kathmandu Post
It's a shocking idea: a fabric that can produce small amounts of electricity powered by movement, allowing your clothing to zap microbes and bacteria as you go about your day. A pair of Japanese firms say that's exactly what their new product can do, and are touting it for everything from curbing body odour to offering the ideal material for protective gear like face masks. The fabric jointly developed by electronics company Murata Manufacturing and Teijin Frontier, dubbed PIECLEX, generates power from the expansion and contraction of the material itself, including when worn by someone moving around. The low voltages aren't strong enough to be felt by the wearer, but they effectively stop bacteria and viruses from multiplying inside the fabric, the companies said. "It has been effective on 99.9 percent of bacteria and viruses we tested, working to curb their proliferation or inactivate them," a Murata spokeswoman told AFP on Friday. The firms say the fabric has already shown promise for products like sportswear, sanitary items including diapers and masks, and for use in filters in industrial products. They are now hoping to test whether the fabric can take on a particularly potent foe: the new coronavirus. But testing is proving a challenge, with strict limits on the institutions that are allowed to handle the infectious disease.
Source: Daily HunT
