Suryalakshmi Cotton Mills denim plant at Ramtek near Nagpur, Maharashtra which is equipped with the state of the art machines to produce world class having a capacity to produce 40 million meters of denim per annum has suspended production operations due to labour unrest. The Company is negotiating with the Workers Union and is reasonably confident of settling the issue at an early date. The Company shall inform the Stock Exchange immediately on restoration of the denim operations in Nagpur . The denim plant ranks among the best in the world. The blow room line, cards and drawframes are from Trutzschler, Autocore open end are of schalafhorst.
The Company has the capability to make both Rope Dyed as well as Sheet Dyed Denims. With both Open End spinning as well as Ring spinning systems In-House, the product range boasts of 100% Ring, Ring X OE, 100% OE Denim to suit the market needs. Both in Rigid & Stretch, Special finishing like flat finish, Coated, Mercerised etc. At Suryalakshmi they always craft the quality. In the most diversified product range each individual fabric is being closely monitored with online process control systems at almost every stage of manufacturing.
The company offers over 100 products at any given time a full-fledged product development Lab enables the company to stay abreast with fashion and come out with a new range every season. Suryalakshmi Cotton Mills is also setting up a spinning unit with a capacity of 26,000 spindles near Nagpur. This will add to the already installed capacity of 61,008 spindles. The commercial operational date (COD) for the unit will be in October this year, according to its managing director Paritosh K Agarwal.The unit coming up near Nagpur will manufacture value added and fancy yarns such as ring, lycra, slub and compact. The Rs 131 crore capacity expansion is funded by long-term loans of Rs 95 crore and the remainder through equity and internal accruals.
It has a network of associates for the US market and has opened a market consultancy for Europe. Suryalakshmi counts Levis, Wrangler, Polo RL, DKNY, JC Penney, Walmart, Jones, UFO, Perry Ellis, Next, Marks and Spencers, C&A, Zara, George, Burtons and others as its clients across segments. It is partnering with Aditya Birla Nuvo, Landmark Group and others for sustainable business.
SOURCE: YarnsandFibers
West Bengal Chief Minister, Mamata Banerjee at the inauguration of the third edition of Asansol Industry and Trade Fair on Thursday, spoke about the steps taken to increase small scale, textile and cottage industries and their plans to set up MSME facilitation centres in Durgapur and Burdwan. MSME facilitation centres offer application facilitation services and supports entrepreneurs through various processes. This will create tremendous employment opportunity for the local youth.
A core committee comprising of representatives from industry, business and government will be formed in Asansol to support trade and commerce in the area. In addition, a Unique Clearance Centre will be set up in Burdwan to facilitate speedy conversion of land for industrial purposes. Emphasizing the government’s commitment to the MSME sector, she pointed out that the state currently has 152 MSME clusters.
Asansol Industry and Trade Fair has provided a unique platform to enhance marketing capabilities and competitiveness, showcase brands and competencies, interact with potential buyers and promote brands and products to tentative buyers. There are about 300 stalls from sectors such as garment, machinery, automobiles, machinery, consumer durables, furniture, real estate, solar power, electrical and electronics, kitchen appliance, hospitality, education healthcare representing at the fair. The Asansol Industry and Trade Fair Organized by the Asansol Chamber of Commerce, the event will continue until February-6.
Nagpur, due to its geographic location as the centre of the country, is capable of being a large logistic hub and surely to bring in huge employment opportunities to Vidarbha. The long-awaited development process of Vidarbha has kick-started with Devendra Fadnavis becoming the Chief Minister of Maharashtra. Devendra Fadnavis addressing youngsters on Saturday during the Youth Empowerment Summit announced that the government is in talks with Flipkart an e-commerce giants to set up an e-commerce logistic hub in Nagpur.
To bring in employment, a value chain in agriculture is being formed from production to marketing. It would not only help farmers to improve their prices but also bring in jobs at all the stages of the chain. The chief minister stressed the need for skill development in the region. It's not water, electricity or land that industries want, what is most required is human resource and skilled labour.Fadnavis said that one such value chain is being introduced in agro-processing industry that will provide jobs to over 10 lakh youths by the end of this year. Nagpur being the tiger capital, tourism industry also needed to flourish and therefore hospitality sector requires a huge manpower. He asked the students to take maximum benefit from this three-day event.
Gadkari highlighted various ways to develop Vidarbha region. Development of regions should not just be in speeches. Business and industries need to be brought in. For that, power tariff needs to be reduced. As there are ample natural resources, industries will be glad to set up units which will create employment generation.VFF chairman Anil Sole said that India is a nation of young people and there is a huge potential in Vidarbha region. He urged the participants to utilize this opportunity.
Guardian minister Chandrashekhar Bawankule,Bawankule said that under his power ministry, 15,000 youths of BE electrical and mechanical engineering will be provided with jobs soon. He added that Multi-modal International Cargo Hub and Airport at Nagpur (Mihan) will soon be fully operationalized where youth of the region will be employed. The event was organized by Vidarbha Fortune Foundation (VFF) at Divisional Commissioner's complex at Mankapur. Union surface transport minister Nitin Gadkari, guardian minister Chandrashekhar Bawankule, former MP Datta Meghe and VFF chairman Anil Sole shared the dais.
SOURCE: YarnsandFibers
India's economy expanded at a much quicker pace in 2013-14 than previously estimated, updated and revamped data with a new base showed, indicating that a recovery had started in the last year of UPA government and the country's growth could outpace China's this year itself. Gross domestic product grew 6.9% in 2013-14 and 5.1% in the year before that, government data showed Friday. The numbers aren't strictly comparable with the earlier data that showed the economy expanded 4.7% in fiscal 2014 and 4.5% in fiscal 2013. The UPA had received much flak for the slow growth after years of nearly double-digit expansion. There will be greater pressure on the new government, which took over in May last year, to better the performance in the current fiscal year through March.
Apart from updating the base of national accounts to 2011-12 from 2004-05, the country has also shifted to compiling numbers at internationally accepted market prices as opposed to the previous factor-cost method, which considered cost of factors consumed for producing goods and services. In addition, coverage has become wider to include a bigger set of numbers from the corporate affairs ministry's database and more of the unorganised sectors. In terms of the size, the economy remains the same at nearly Rs 113.5 lakh crore in fiscal 2014, which suggests some growth redistribution is behind the spurt in growth from earlier estimate.
Based on the new formula, 2011-12 growth could be lower than the previously estimated 6.7%. Former finance minister P Chidambaram said this should put to an end the "misconceived" charge that the UPA government mismanaged the economy. "I sincerely hope that the government's leaders will stop repeating the jibe of sub-5% growth in the last two years," he said, offering to work with the government to take the country forward. "There is much work to be done. We are willing to help. It is up to the government to reach out to everyone, build consensus, and work toward achieving higher growth in the years to come," he added.
There is something in the revision for the new government as well, as the new formula could push up growth for the current fiscal year to more than 7%. According to International Monetary Fund estimates, China's growth is expected to slow to 6.8% in 2015 from the estimated 7.4% in 2014. The IMF has recently predicted India's GDP growth to surpass that of China in 2016. "GDP growth for FY15 will tend to be higher than that in FY14 ... As there appears to be marginal improvement in most segments, it does appear the growth number, prima facie, will be above 7%," said Madan Sabnavis, chief economist at Care Ratings. "Revival in growth between 2012-13 and 2013-14 is sharper than what we had earlier thought.
Manufacturing has shown better performance on new base. India's growth could exceed that of China sooner than expected," said Aditi Nayar, senior economist at local ratings firm ICRA. Based on earlier factor-cost method, the revised numbers showed the economy grew 6.6% in FY14 and 4.9% in FY13, the last two years of the UPA government. The revised numbers showed that investments picked up slightly in the last year of Manmohan Singh government with gross fixed capital formation rising 3% in fiscal 2014 from a 0.3% decline in the previous year. Consumer demand, as measured by the private final consumption expenditure, recovered to 6.2% from 5.5% over this period.
The shift in the conceptual framework for national accounts means that a number of indicators where GDP is used as reference point will change. Public expenditure, fiscal deficit and savings will be adjusted for a change in the GDP numbers, but the government said the revision is not material. "It may be noted that the level of revision in the present base revision is not large enough to affect any of these ratios significantly," the statistics office said in a statement. Gross savings have declined steadily from 33% of gross national disposable income in fiscal 2012 to 30% in fiscal 2014.
The manufacturing sector performed much better than earlier estimated in 2013-14, showing growth of 5.3% against a 0.7% contraction estimated in the earlier series. The share of manufacturing in the overall economy went up to 17.3% in 2013-14 as per the new series as against 12.9% in the earlier. This is essentially on account of the new corporate database that will supplement the information available in the annual survey of industries. The government is targeting to take up the manufacturing share to 25% by 2022, with the 'Make in India' campaign. The services sector, excluding construction, which has enjoyed a share of close to 57% in the earlier series, is down to 51.3% in the 2011-12 series. The share of trade and repair services has fallen to 12% from 16.5%.
Financial services have been widened to include accounts of stock brokers, stock exchanges, asset management companies, mutual funds, pension funds and regulatory bodies like the Securities and Exchange Board of India, Pension Fund Regulatory and Development Authority and Insurance Regulatory and Development Authority. Mining and quarrying recorded growth of 5.4% in 2013-14 on the new series as against a 1.4% contraction recorded previously. The statistics office has included a new asset classification - Intellectual property products, comprising research and development, mineral exploration, database and software, etc.
SOURCE: The Economic Times
The last week of January saw the Indian rupee snapping its four-week streak of positive closes. The currency opened after an extended Republic Day weekend at 61.48 on Tuesday and strengthened to 61.29 on Wednesday. But things started to reverse and the rupee fell to 62.03 on Friday and closed at 61.87, down 0.7 per cent for the week. What triggered this reversal? Reports suggest that it could be strong month-end dollar demand. Strong inflows from foreign portfolio investors (FPIs) failed to lend support. FPIs bought $883.69 million in debt and $1.12 billion in equity in the past week, taking the total inflows for January to $5.35 billion, the highest since July 2014.
Data watch
Fiscal deficit and GDP data were released last week. India’s fiscal deficit widened to Rs. 5.32 lakh crore during the April-December period and exceeded the full-year target of Rs. 5.31 lakh crore. But the revision of the base year for calculating the national accounts to 2011-12 could help the government achieve the target of 4.1 per cent of GDP. The Indian economy grew by 6.9 per cent in 2013-14. Data due for release this week includes HSBC’s Manufacturing Purchasing Managers’ Index (PMI) on Monday and Services PMI on Wednesday. After a surprise rate cut last month, all eyes will be on the Reserve Bank of India’s meeting on Tuesday.
Dollar-rupee outlook
The US Federal Reserve reiterated its intent to ‘stay patient’ before starting to hike rates. It also remained ‘concerned’ about slow growth in the housing sector. The dollar index fell to a low of 93.7 initially, but recovered to close the week at 94.85. Key resistance is at 95.3. A decisive break above this hurdle is required for a rise to 97.5. But a sharp reversal from 95.3 could trigger a corrective fall to 94 or 92. The short-term outlook for the Indian rupee seems to be turning bearish. Last week’s reversal from 61.29 has happened from a key trend-line resistance.
Though Friday’s candle looks indecisive, the weekly chart suggests a reversal. Immediate support is at 62, a break of which can take the rupee lower to 62.3 this week. It will also open the door for a fall to 62.75 thereafter. Resistance is at 61.55 which has to be breached for the rupee to strengthen to 61.3 and 61.1. However, the medium-term bearish outlook remains intact with key resistances at 61.1 and 60.75. As long as the rupee trades below these levels, a revisit of 63-64 levels looks likely.
SOURCE: The Hindu Business Line
Bangladesh, Bhutan, India and Nepal (BBIN) today discussed the scope for power trade and inter-grid connectivity between themselves and decided to explore the possibility of using multi-modal transport to meet commercial as well as tourist needs. The issues figured during the second meetings of the Joint Working Groups (JWGs) of these countries on sub-regional Cooperation on Water Resources Management and Power/Hydropower and on Connectivity and Transit.
The Indian delegations, led by Joint Secretary Abhay Thakur and Joint Secretary Sripriya Ranganathan in the External Affairs Ministry, welcomed the opportunity for exchanging views on the possibilities for cooperation at a sub-regional level for mutual benefit. The JWG on Water Resources Management and Power/Hydropower reviewed the existing cooperation in the sector and discussed the scope for power trade and inter-grid connectivity between these countries as well as the potential for closer cooperation in future power projects, an MEA release said as the two-day meetings concluded today. "It was agreed that joint efforts would be made to explore harnessing of water resources, including hydropower and power, from other sources available in the sub-region. It was also agreed to exchange lists of potential future hydropower/power projects to be undertaken jointly involving at least three countries on an equitable basis," it said.
The JWG on Connectivity and Transit reviewed existing arrangements and agreed on the significance of BBIN agreements to enable movement of motor vehicles and railways. "The meeting exchanged ideas on potential cargo (both road and railway) and bus routes involving at least three countries in addition to the existing bilateral routes and agreed to share suggestions in this regard. They also decided to explore the possibility of using multi-modal transport to meet commercial as well as tourist needs," it said. The JWG deliberated on the need for trade facilitation at land border stations for effective sub-regional connectivity and also exchanged views on the usefulness of sharing trade infrastructure at land border stations and harmonisation of customs procedures, according to the official release. The next meeting of the JWGs would be held in the second half of 2015 in Bangladesh.
SOURCE: The Economic Times
India will complete the reconstruction of Sittwe port and the associated river transport facilities, as part of the Kaladan Multi-modal Transit Transport Project in Myanmar, in May this year. The project cost, however, is expected to be 29 per cent higher at Rs. 450 crore, compared with the initial estimate of Rs. 350 crore, largely due to unexpected volatility in exchange rate, say sources.
The rupee-denominated project was awarded at a time when one dollar was fetching Rs. 44 and Myanmar Kyat 900. Both the currencies are now ruling at much lower levels. “The port and the river transport facilities will be ready for operations within the extended timeline of May 2015,” a Government official told Business Line. While the commissioning of the port-cum-waterway will surely boost bilateral relations, India has to wait for years to start transshipment of goods to Mizoram in the North-East, as the Ministry of External Affairs (MEA) is yet to kick off the road transport part of the Kaladan project.
Landmark initiative
Having originated at Chin Hills in Myanmar, Kaladan river flows through Mizoram and back into Myanmar’s Sittwe Delta in the gas-rich Arakan peninsula. Once one of the two most important river ports in Myanmar, Sittwe was used to ferry supplies to the northeast of India during the British Raj. From Sittwe, the cargo was taken by waterway 170 km upstream at Paletwa – where the river encounters rapids – for further travel by head-loads to neighbouring Mizoram. According to a 2008 agreement between the two nations, the MEA proposed to revive this route to establish easy access to North East. Apart from trade and commerce, the project has immense importance in ensuring India’s political and military interests in the region rivalling China.
Road project hanging fire
Kaladan Multi-modal Transit Transport Project has proposed to revive the river transport route up to Paletwa and build a 129-km-long two-lane highway (NH-502A) through the hilly terrains of Myanmar to connect NH-54 at Lawngtlai in Mizoram. This would reduce the distance from Kolkata to Aizwal by less than half from the existing 1,550 km. In 2010, Delhi awarded a turnkey contract to improve the navigability of both Sittwe port and river channel, build terminal at Paletwa and handover six self-propelled barges to Naypyidaw. The project is now nearing completion. But the road project, estimated to cost Rs. 2,900 crore in 2010, is hanging fire, as contracts are yet to be awarded. Enquiries by Business Line in both Myanmar and India failed to throw any light on the reasons behind the inordinate delay.
“We have no news to share,” said Khin Maung Lynn, Joint Secretary I of Myanmar Institute of Strategic and International Studies, a Yangon-based think tank. Talking on condition of anonymity, an MEA official blamed poor project monitoring and fund crisis as two probable causes. “While the prolonged delay escalates costs, the budgetary constraint of the ministry come in the way of implementing projects,” the official said.
SOURCE: The Hindu Business Line
Amid concerns over a widening trade deficit, the government on Sunday hoped China would open its market to Indian companies and promised to make it easier for Chinese firms to do business in India. “A critical change in nature of our bilateral ties over the last few decades has been its growing economic dimension. China is today our largest partner in trade in goods. The two economies are moving to invest each other,” External Affairs Minister Sushma Swaraj said. “Serious discussions on enhancing connectivity have been initiated. On that foundation, we are now seeking to take our economic cooperation to a qualitatively new level,” she said, while addressing the second India-China Media Forum.
Swaraj said the Closer Development Partnership agreed upon during President Xi Jinping’s visit to India in September last year symbolises the resolve to enhance economic ties. She said a significant new area of collaboration include railways sector where the two countries are cooperating in areas such as heavy haulage, speed upgradation, station development and capacity building. “Another major thrust is in establishing industrial parks in two Indian states that would contribute to the Make in India initiative,” she said. “We will make it easier for Chinese companies to do business in India and expect similar encouragement would be given to our companies to expand their business in China,” Swaraj, who had arrived here on Saturday on a four-day visit, said. China has promised to address the $38-billion deficit in the $70-billion bilateral trade in 2014 and the issue will feature during Swaraj’s talks with Chinese leaders. “We expect the momentum set in the last few months would not only be kept up but accelerated event further at various levels,” Swaraj said. On Monday, she will launch the 2015: Visit India Year in China.
Describing tourism as an effective vehicle to promote people-to-people understanding, she said the two countries have agreed they need to make stronger efforts in that regard. “As both our countries play a larger international role, our contacts and dialogues must commensurately grow. As the two major civilisational powers of Asia, we should have confidence in each other to build on our shared interests,” she said. I expect discussions during this visit to contribute to this objective,” she said.
SOURCE: The Business Standard
Asian PTA prices fluctuated in a narrow range during the current week ending Jan 30; however, they declined steeply in India during the week. In F E Asia, prices were assessed at US$ 580/ton on Monday, which went down on Tuesday to US$ 575/ton, but again went up to US$ 580/ton on Wednesday due to higher upstream product prices in the region. Prices showed marginal decline on Thursday and came down to US$ 575/ton which remained stable at this level on Friday (Jan 30).
In S E Asia, prices showed similar trend and were assessed at US$ 605/ton on Monday, while they were quoted at US$ 595/ton on Friday after marginal ups and downs during the week. In India, prices slipped by 5.74 per cent during the week and were quoted at US$ 575/ton on Friday.
SOURCE: Fibre2fashion
PX prices slipped in Europe and the US during the current week ending Jan 30, from sluggish buying trends in Europe and the US, coupled with insipid market sentiments in the Asian markets. PX prices which were quoted at US$ 710/ton in Europe on Monday (Jan 26) went down by US$ 70/ton during the week and were assessed at US$ 640/ton on Friday (Jan 30). US prices which were assessed in the range of US$ 735-740/ton on Monday, fell to US$ 710/ton on Thursday (Jan 29).
SOURCE: Fibre2fashion
Phenomenal increase of 21% in textile export to European Union (EU) countries during 2014 after the grant of GSP-Plus status is very encouraging , however diversification of export is imperative to fully harvest the benefit of this facility, said Engineer Rizwan Ashraf, President Faisalabad Chamber of Commerce and Industry (FCCI). Addressing a seminar on GSP-Plus organised by Trade Development Authority of Pakistan (TDAP) in FCCI, here today; he said that despite of energy crisis and financial crunch, the increase in export is indicative of the exceptional capabilities and hard work of our exporters. He said that now we have to make reinvigorated efforts to give our exports yet another quantum jump during the current year.
Commenting on the GSP-P status, he said that entire benefits of withdrawal or decrease in duties have been enjoyed by the EU importers, but on the other hand the cost of doing business for Pakistani exporters has been increased as they have to ensure compliance's of 27 different conventions and protocols. He said that a portion of financial benefits of duty free import should also be passed on to the Pakistani Exporters. He said that small and medium exporters were handicapped to avail the facility of GSP-Plus because of their inherent problems. However, FCCI has established a GSP cell to give them necessary information regarding the facility of GSP-Plus. Similarly seminars and workshops are also being arranged for their information and guidance.
Continuing, he said that small and medium units of dyeing, processing and printing could not export to EU countries as they were unable to fulfil the mandatory requirements of social and environmental compliance's including treatment of their water effluent. He disclosed that central development working party has approved a study to set up combined waste water treatment plant in Faisalabad with French collaboration. It will help these units to fulfil the mandatory environment related compliance's paving way for them to export their products directly to the EU countries.
SOURCE: The Business Recorder
It is the ease of conducting business more than just the increasing cost of doing business that is forcing many western companies to drive away from Pakistan. Many companies find problems with the speed in which tasks are accomplished in Pakistan. With an energy crisis leaving many without power for hours a day and oil and gas shortages as just the tip of the iceberg; it is corruption that many are finding a problem in Pakistan. Walt Disney pulled approximately$200 Million dollars worth of yearly textile production from Pakistan and put the country on a banned list of approved supplier countries. The company labeled Pakistan as a risk to their flow of business.
Bob Chapek, president of Disney Consumer Products in a statement said that after much thought and discussion, they felt this was the most responsible way to manage the challenges associated with their supply chain. He added that the decision is based on a recent report from the World Bank, which assesses how countries are governed, using metrics like accountability, corruption and violence, among others.
Last week Canadian menswear label and retailer Kanati Co. also announced major losses in Pakistan due to corruption, extended down-times and supply chain issues. As an organization that serves clients globally, hence they can't afford the disruption and down time in Pakistan. Their clients depend on a fast and reliable service.They can no longer wait and hope for improvements in Pakistan said company co-founder Liam Massaubi. They recognize when it is time to cut losses and move on. There are added benefits of a domestic manufacturing approach where they are able to control all of the variables, which they cannot do in Pakistan
Kanati Co. followed Walt Disney in placing Pakistan on a banned list of approved countries it will accept as a supplying country. Western companies are finding themselves in a situation in Pakistan where they are completely unprotected. The overall perception is that Pakistani law enforcement is ineffective and corrupt. Many companies cite substantial losses from dishonest business associates in Pakistan. When something like this happens; the police do not act and they are left with no recourse.
An environment such as this is extremely unattractive to foreign investment. Instability drives prices and there is no real benefit from doing business in Pakistan. If a company can re-shore and accomplish the same job for a similar cost by time you account for all the added costs and down-time in Pakistan; the country becomes an unnecessary risk. Unless the Government of Pakistanis willing to step in and offer foreign investment protection and make drastic improvements to law enforcement; they may continue to see more western companies making exits from the region hastily. Pakistan is a country on the decline according to the World Bank’s “Ease of Doing Business” ranking system that places the country at only 128 of 189 countries.
SOURCE: YarnsandFibers
The joint anti-pirate textile task force set up by the Ministry of Trade and Industry (MOTI) to curb textile smuggling and pirated designs into the country. The team comprise the Deputy Trade Minister, Murtala Mohammed, and members of the joint task force drawn from textile producers, vendors, and officials of MOTI, seized pirated textiles at various border entry points and markets in the country. The team has destroyed a total of 3,500 pieces of pirated Ghanaian textile designs it seized at the Kpone land fill site this week.
According to the Deputy Trade Minister, it is time for the country to introduce stiffer punishment to curb the practice rather than just burning; they need to prosecute people who are engaged in that act because it is an illegality. The quantity of pirated textiles that are brought into the country, the nation seizes may amount to 10 or 20 percent; so it’s time to look forward, and that is something the ministry is looking to do.
Government’s ability to get enough revenue to build the schools and hospitals, to provide medicines in the hospitals, to provide social services to a very large extent hinges on the capacity and ability to protect such industry. He commended the task force for the work it has done so far on clamping down on the counterfeit textiles, and urged Ghanaians to report persons dealing in such illegal acts -- insisting that government alone cannot tackle the menace.
The task force team since its establishment in 2010 has undertaken 5 different destruction exercises with a total 6,000 pieces of Ghanaian textiles destroyed. Some of these textile designs were seized during operations spanning from 1st September 2014 to 31st December, at various outlets across the country. Four persons are due in court after they were arrested at Makola busily engaged in selling pirated Ghanaian textiles. Ghanaian textile is looking for fair competition; people should come with their own designs and brand. They are not looking at government banning people from importing textiles but equal platform.
Four persons are due in court after they were arrested at Makola busily engaged in selling pirated Ghanaian textiles. Ghanian textile is looking for fair competition; people should come with their own designs and brand. They are not looking at government banning people from importing textiles but equal platform.
SOURCE: YarnsandFibers
The US says it strengthened engagement with India through the US-India Trade Policy Forum and secured the historic Trade Facilitation Agreement at the WTO after overcoming an impasse with India”. In November, the United States with India and other WTO Members overcame an impasse in the Bali Package to allow the full implementation of a Trade Facilitation Agreement (TFA)," the US Trade Representative said in its yearend review. "The TFA is the first multilateral trade agreement in the WTO's 20 year history, and will reform global customs practices and substantially reduce the costs and time associated with goods crossing borders," it noted "The efficiencies generated by customs reforms in the TFA will significantly reduce the costs of trading for WTO Members, developed and developing countries alike," the review said Some estimates, it noted, suggest the global economic value of the new WTO deal could be worth $1 trillion.
The US had also strengthened engagement with India through the TPF, the premier bilateral forum for discussion and resolution of US and India trade and investment issues. In November, USTR Michael Froman led a US delegation to the TPF in Mumbai, the review noted. Earlier, in February, the US challenged before WTO India's domestic content requirements for it National Solar Mission affecting US solar product exports.
In addition to the WTO consultations, the US has engaged India on its concerns regarding the NSM over the last three years, including in bilateral fora such as the TPF and the US-India Energy Dialogue, and at the WTO in various committees, it said. The review said it had also prevailed on numerous Indian challenges to US countervailing duties to address what it called India's "unfair steel subsidies."
In December, the WTO Appellate Body rejected the vast majority of India's appeals seeking additional findings on US regulations and determinations, it said. The US had in October also prevailed against Indian ban on US agriculture products - such as poultry meat, eggs, and live pigs - allegedly to protect against avian influenza. The US poultry industry, which directly employs over 350,000 workers and consists of nearly 50,000 family farms - had been particularly affected by India's restrictions, the review said.
The WTO has agreed the panel report will be adopted or appealed in January 2015. The review noted USTR had concluded an Out-of-Cycle Review of India to evaluate progress toward achieving meaningful, sustained and effective engagement on IP issues. ndia, it said had made useful commitments, including to institutionalise high-level engagement on IP issues, to pursue a specific work programme and to deepen cooperation and information exchange with the US on IP-related issues under the TPF. The US, the review said, looks forward to the 2015 Special 301 Review process, which will provide the next formal opportunity for a thorough review of India's environment for IP protection and enforcement.
SOURCE: The Economic Times
China’s factory sector unexpectedly shrank for the first time in nearly 2-1/2 years in January and firms see more gloom ahead, an official survey showed, raising expectations that policymakers will take more action to forestall a sharper slowdown. The official Purchasing Managers’ Index (PMI) fell to 49.8 in January, the National Bureau of Statistics said on Sunday, a low last seen in September 2012 and a whisker below the 50-point level that separates growth from contraction on a monthly basis. The December level was 50.1, and a Reuters poll saw a better result, 50.2 for January. Only one of 11 economists in the poll predicted a January contraction.
Most of the PMI indexes “showed a downward trend, indicating that current economic growth is still in a downtrend,” said Zhang Liqun, an economist at the Development Research Center, a state think-tank. Some economists said the January reading was especially downbeat as it suggested that factories did not enjoy a usual spike in business before China’s annual Spring Festival holiday, which falls in mid-February this year.
The poor January official PMI fueled bets that more monetary policy loosening was in store in the world’s second-largest economy. “China still needs decent growth to add 100 million new jobs this year, plus China is entering a rapid disinflation process,” ANZ economists said in a note to clients. “We (think) the People’s Bank of China will cut the reserve requirement ratio by 50 basis points and cut the deposit rate by 25 basis points in the first quarter,” they said.
Marred by a housing slump, erratic growth in exports and a state-led slowdown in investment, China’s economy has steadily lost steam in the last year as growth sunk to a 24-year low of 7.4 per cent. And the downturn has also broadened into the country’s burgeoning services sector. A separate official services PMI, also released on Sunday, showed growth in the sector cooled to a one-year low in January. The official non-manufacturing PMI fell to 53.7, the lowest level since January 2014, from December’s 54.1.
Accounting for 48 per cent of China’s $10.2 trillion economy last year, the services sector has weathered the growth downturn better than factories, partly because it depends less on foreign demand. To revive demand, China’s central bank unexpectedly cut interest rates in November after unveiling a stream of stimulus measures. But despite the steady policy support, analysts polled by Reuters in January still expect economic growth to sag further this year to around 7 per cent.
In the January factory PMI, all but one of the sub-indices in the PMI fell from December, indicating entrenched weakness. Business expectations fell to 48.7, its lowest since records for that began in January 2013, while factory employment dropped to its lowest in nearly a year at 48.1, compared with the previous month’s 47.9. New export orders, a proxy for the trade industry, fell to 48.4, from 49.1 in December.
In line with recent trends, the factory PMI showed the smallest manufacturers which are often privately-owned were the worst hit. The official PMI looks more at larger, state-owned firms that a private one by HSBC/Markit, but it includes small factories, which in January was 46.4, versus 50.3 for large manufacturers that are mostly government run. The HSBC/Markit final January PMI will be released on Monday. Its flash reading was 49.8, compared with 49.6 for December. Underscoring the challenges faced, data last week showed China’s factory profits grew at their weakest rate in two years in 2014. China’s industrial ministry said last week that it would aim to grow the manufacturing sector by 8 per cent this year, down from last year’s actual expansion of 8.3 per cent.
SOURCE: The Business Standard
