Pitching for removal of barriers that come in the way of setting up businesses in India, NRI industrialist Lord Swraj Paul has said the country can compete with China as ‘suppliers of the world’.
Stating that non-resident investment was key to China’s growth, he also urged the Indian government to give due importance to NRIs looking to invest in India, rather than classifying their capital inflows as foreign investments. He said NRIs bringing in a certain amount of investment can be offered Indian citizenship by getting the necessary laws passed by Parliament, as a majority government has come into power after 30 years.
Paul, Chairman of the UK-based diversified conglomerate Caparo Group, said that Prime Minister Narendra Modi’s ‘Make in India’ campaign has huge potential, if the government removes barriers that come in way of businesses. “The initiative is very good. I think we need the machinery to see it through. If the Prime Minister can make sure that some of the problems which come in the way of setting up industries are removed, India has tremendous potential,” Paul told PTI in an interview here.
The USD 2 billion Caparao group is present across 40 countries with a 10,000-strong workforce, while India accounts for over 15 per cent of its global business. “I also believe that India should be competing, in a friendly way, with China as suppliers of the world,” he said, while adding that his son and Caparo CEO Angad Paul has recently talked about the group expanding its footprint in India and for utilising it as an export base.
The Caparo Group Chairman also called for giving the due importance to the NRI investors. “The non-resident investment, which helped the Chinese to start with, is still treated by India as foreign investment. The NRIs are even more loyal to India than even the residents because they bring in the money to India. “Why not offer, as a gesture to NRIs, that those who invest a certain minimum amount of money will be offered Indian citizenship as a second passport. I know it needs a law by Parliament, but now the government has a majority after 30 years and they should utilise it.”
On the first eight months of the Modi government, Paul said he is hoping for substantial changes over a five-year period, but it is not possible to expect any miracle in one or two years. “We cannot afford this government to fail for the sake of India and for the sake of Indians because there are high hopes. While Modi is doing and saying the right things, there is no overnight solution to change the attitudes and the values. “But my hope and wish is that he is able to make substantial changes in five years and that will be good for India. Do I expect any miracles in one or two years — it is not possible,” Paul said.
On the upcoming Budget, he said, “I am looking forward to the Budget. But again, do I expect miracles? No. Do I expect a very sensible Budget? I absolutely hope so.” Talking about the upcoming general elections in the UK, he said it would prove to be a wake up call for the country’s three main political parties and they must get their act together. Britain goes to the polls on May 7 and the Conservatives, Labour and Liberal Democrats have been struggling to woo the voters.
“No party deserves to be a single-party government until they get their act together, nor in my view is there likely to be one,” he said. “The whole politics of this country has gone down,” he said, while adding that things generally change when things go that down like it happened in India.
SOURCE: The Financial Express
Export from the Special Economic Zone (SEZ) in Madhya Pradesh's Indore can touch Rs 3,500 crore in the current financial year if the bullish sentiment in global demand continues to drive the growth. Commissioner, SEZ projects, A K Rathore told today, "Despite economic slowdown, there has been a good demand for products manufactured at the Indore SEZ and we are anticipating that exports this year to surpass Rs 3,500 crore mark."
Exports from the SEZ here in 2013-14 financial year stood at Rs 2,909 crore. He said that exports till the quarter ended December 31, 2014 was Rs 2,949 crore, up 40 per cent from the corresponding period a year ago.
The official said there are currently 47 units operating in the 1,113 SEZ, spread across 1,113 hectares area. The firms are into engineering, pharma, garment manufacturing and food precessing. Work of five new units at the SEZ is going on, he said. An investment of Rs 3,817 crore has been done so far on the SEZ, which is regulated under Madhya Pradesh Audyogik Kendra Vikas Nigam (MPAKVN).
SOURCE: The Economic Times
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas remained unchanged at US$ 59.90 per bbl on 20.02.201 as compared to 18.02.2015.
In rupee terms, the price of Indian Basket increased to Rs 3729.37 per bbl on 20.02.2015 as compared to Rs 3728.78 per bbl on 18.02.2015. Rupee closed weaker at Rs 62.26 per US$ on 20.02.2015 as against Rs 62.25 per US$ on 18.02.2015.
The table below gives details in this regard:
|
Particulars |
Unit |
Price on Feb 20, 2015 (Previous trading day i.e.18.02.2015)
|
Pricing Fortnight for 16.02.2015(Jan 29 to Feb 11, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
59.90 (59.90) |
52.70 |
|
(Rs/bbl |
3729.37 (3728.78) |
3258.97 |
|
|
Exchange Rate |
(Rs/$) |
62.26 (62.25) |
61.84 |
MJPS/Rk/Daily Crude oil price- 23.02.2015
SOURCE: PIB
If one chart could illustrate India’s budgetary problem, Chart 1 would probably be it. The chart, culled from the International Monetary Fund’s Fiscal Monitor, shows that while total government revenue is 19.5% of gross domestic product (GDP) in India, expenditure amounts to 26.7% of GDP. So the overall government balance works out to -7.2% of GDP in 2014 (including the states), far higher than the average of -1.9% for all emerging market and middle-income economies and also the average of -2.1% for Asian emerging market and middle-income economies. It’s also far above the average of -3.1% for low-income developing countries. There’s no reason then to relax the fiscal consolidation road map, which says the fiscal deficit should come down to 3.6% of GDP in 2015-16 and 3% in 2016-17. Even a 3% deficit is higher than the average for India’s peers. Government revenue, as a percentage of GDP, is well below that of peer nations. Among the long list of low-income developing countries that have a higher proportion of government revenue to GDP are: Benin, Burkina Faso, Nepal, Kenya, Mali, Myanmar and Papua New Guinea. That list speaks for itself. Chart 1 shows that while government expenditure as a percentage of GDP for India is only 0.6 percentage points below the Asian average, government revenue as a percentage of GDP is 5.7 percentage points lower. That points to just one thing—the need to increase government revenue.
Chart 2 shows how much lower India’s tax revenue as a percentage of GDP is compared to several countries, some of them much poorer than India. There is no reason why India’s tax-to-GDP ratio, for example, should be lower than that of much poorer Nepal, or Laos. It is time to remove exemptions, expand the service tax net, check evasion and improve tax administration. And of course, get the goods and services tax started.
Inflation has slowed sharply, but as Chart 3 shows, it is still high compared to most countries. All the more reason, therefore, to stick to the medium-term fiscal consolidation plan. As the Kelkar committee had pointed out, “The fiscal improvement from FY (fiscal year) 2002-03 to 2007-08 was accompanied by a benign inflationary environment, lower real interest rates and significant increase in private sector investment.”
There is also an urgent need to improve India’s rickety infrastructure. Chart 4 shows India’s performance vis-à-vis some other economies on the World Bank’s Logistics Performance Index or the quality of trade and transport-related infrastructure, with 1 being the worst and 5 the best. The chart shows how far behind India is compared to countries such as Vietnam and Thailand, to say nothing of China.
It would also be impossible to ignore the need to improve the country’s social infrastructure, especially health and education. Chart 5 shows how low India’s public expenditure on health, as a percentage of GDP, is when compared with many other countries. Why on earth should it be lower than dirt-poor Haiti?
How can the government spend more on physical and social infrastructure while sticking to fiscal deficit targets? One way would be to improve revenue. Another would be to reduce subsidies. Chart 6 shows how capital expenditure in the central budget as a proportion of GDP has come down over the years, while the proportion of subsidies has gone up. Many of these subsidies benefit the relatively well-off and direct payments to poorer people in their bank accounts, now that the Jan Dhan Yojana is in place, could help target subsidies more efficiently. The recent fall in crude oil prices will also lower subsidies, giving the government room to switch some expenditure to build infrastructure.
SOURCE: The Live Mint
Amid the government's efforts to ensure 'ease of doing business', the number of Japanese companies in India has increased by 137 in last one year, marking a 13 per cent jump over the previous year.
The total number of Japanese companies registered in India now is 1209 against 1072 as in October 2013, according to official figures. The number of Japanese companies in India is targeted to be raised to 2000 by 2019, official sources said.
Japan is one of the countries which Prime Minister Narendra Modi is focussing on for investments. To make it easier for Japanese companies to do business in India, the government has established a 'Japan-plus' unit in the Department of Industrial Policy and Promotion (DIPP) in the Ministry of Commerce. The cell, which has a Japanese official in it, focuses on facilitating business of Japanese companies in this country and in getting faster clearances.
Japan has appreciated this initiative, which was announced by Modi during his visit to Tokyo in August while inviting greater investments from that country. During the visit, Japanese Prime Minister Shinzo Abe had announced that his country will invest up to 3.5 trillion yen of public and private funds to India in five years to finance infrastructure and other projects of mutual interest. While being happy with efforts to create a better environment for investments in India, Japan has asked the Indian government to address challenges being faced on the taxation and regulation fronts.
Modi has been underlining again and again his determination to further improve the business environment in India, including through tax, administrative and financial regulations. He has promised to put in place a tax regime that is simple and predictable. Now, all eyes are on the upcoming Budget to be presented by Finance Minister Arun Jaitley in Parliament on February 28. This will be the first full-fledged budget of the Modi government which assumed power on May 26 last year.
SOURCE: The Economic Times
Ministry of Textiles is seeking funding for eight new projects in the PSDP budget for the 2015-16, whereas financing for two ongoing projects of more than Rs 1560 million is also proposed to be included in the next year budget.
The ministry has asked Rs.58.67 million for the monitoring and management of BT resistant in cotton bollworms. The project has been approved and the objective of the project is to detect the occurrence of the resistance to BT toxin and develop resistance management strategies. The second project is cotton as relay crop in standing wheat for enhancing productivity of both the crops. This project has been approved and Rs. 15.20 million has been asked for the enhancing area and productivity of the cotton and wheat crops through relay cropping system.
Development of management strategies for red and dusky cotton bugs, which is considered a serious threat to cotton crop in the country. This project will be discussed in DDWP and its cost is Rs.59.928 million.
Implementation of the cotton standardised system for the production of high quality standardised clean cotton, Rs. 41.587 million has been asked for this project. Fifth project is strengthening of agriculture extension service in cotton growing districts of the country, which estimated to be a Rs 210 million
Faisalabad Garment city is another project which would be discussed in CDWP, and its cost is estimated to be Rs.598.500 million. This is a textile infrastructure project whereby state of the art infrastructure would be developed. According to the documents the ministry claims that this project would help garments manufacturers in boosting value addition to textile related exports. Faisalabad Garment City training City is another separate project and Rs 60 million has been sought to train textile workers.
Development of Garment city in Karachi has been divided into phases and for first phase Ministry of Textile has sought Rs 805.119 million and the objective is to develop state of the art infrastructure which would be leased out to the garments manufacturers to boost value addition of the textile sector. Prime Minister Skill Development Programme for textile industry is eighth project and Rs1200 million has been asked to make available skilled human resources to convert semi processed raw materials into value added products.
The ongoing projects, which have been desired to be included in PSDP 2015-16 are providing and laying 48 inch diameter water main pipeline for Karachi Textile City, which has been enhanced from Rs636 million to Rs. 1547.564 million. Under second ongoing project, Rs 14.240 million has been asked to pay liabilities of contractors and others in Lahore Garment City.
SOURCE: The Nation
Poland has a long history of garment production. However, for the past few years, this branch of the industry has been systematically shrinking. The majority of Polish garment factories realise foreign orders, the number of which is thinning due to the higher costs of production in Poland compared to other countries, especially in Asia.
Deputy Prime Minister and Economy Minister Janusz Piechociński has put textile industry as one of the ministry’s 15 priority sector for export promotion. Hence, the Poland’s textile and fashion industries will receive state help to promote exports, but cooperation between firms is required.
Piechociński, at Ptak Expo international Fashion fair, said that the ministry will pay subsidies in tens of thousands of złoty to coalitions of two or three firms aimed at promoting exports. Poland also plans to showcase its fashion and textiles at this year’s Milan expo, the minister said. At present, there are 17,000 firms in the textile and clothing industries employ some 150,000 people making Poland the EU’s eighth-largest market in terms of sales.
Ptak Expo International Fashion Fair is a 3 day event which was held from 18th February to the 20th February 2015 at the PTAK EXPO International Exhibition and Trade Center in Lodz, Poland showcased product from Lifestyle and Fashion industry.
SOURCE: Yarns&Fibers
Keen to bolster its strategic ties with India, oil-rich Oman has invited Indian industries to establish more joint ventures in sectors like finance, insurance, engineering and telecom as the "politically stable" Gulf nation sought to diversify its economy. Days after the maiden visit of External Affairs Minister Sushma Swaraj to Oman, her Omani counterpart Yousuf bin Alawi bin Abdullah said his country was keen to enhance trade and economic ties with India.
"Oman is a strategic and important partner to India in the Gulf region. Indeed, the two-countries are deep-rooted by geopolitical factors and socio-cultural and historical values across the Arabian Sea and the Indian Ocean as well," Abdullah told PTI.
As the Sultanate's economy is being keenly diversified in other areas such as tourism, fisheries, investment and agriculture, it was the endeavor of the Omani government to further reinforce the economic and trade ties with India by engaging in joint venture enterprises ranging from finance, insurance, engineering, construction, investments and telecommunications, he said. The minister also lauded the role played by the over seven lakh-strong Indian community in Oman's development.
The Indian community has contributed in "building, maintaining and reinforcing the infrastructures of the country at large. They are very much welcomed in the Sultanate and their work is appreciated," Abdullah said. Indians form the largest expatriate group in Oman. They also repatriate around $ 3 billion annually. "You all are the vital organic links between India and Oman," Swaraj had told a gathering here during her February 17-18 visit, the first by an Indian External Affairs Minister in seven years.
By providing highly skilled service at a competitive cost, the Indian community's role has become indispensable for the Omani economy, Swaraj had said. Abdullah said the visit of Swaraj to Muscat has enhanced bilateral political and diplomatic relations apart from strengthening Oman-India economic and commercial relations, given the fact that Oman is "politically stable and economically prosperous."
Oman is among a few nations in the Arab world which have remained largely unaffected by the Arab Spring which has destabilised the regimes in the oil-rich region. During Swaraj's meeting with Oman's top leadership, India and Oman reviewed their strategic ties and decided to expand defence and maritime cooperation in maintaining the stability and security of the Indian Ocean region.
Oman is a key trading partner of India in the Gulf region with bilateral trade exceeding $ 5.7 billion in 2013-14. The two sides also explored opportunities on how Oman can plug into the expanding opportunities in India, including as a natural gas supplier. Given India's thirst for clean energy, the possibility of revisiting an under sea pipeline was also discussed.
There are more than 1,500 joint ventures between India and Oman. The major ones are the Oman-India fertiliser company in Sur and the Bharat-Oman refineries in Bina in Madhya Pradesh. India has vital stakes in the security and stability of the Gulf region which hosts around 7 million Indians. The Gulf countries are the source of two-third of India's crude oil requirements and form the largest trading regional block for India accounting for about a quarter of India's global trade.
Commenting on the growth prospects of India-Oman trade ties, FICCI President Jyotsna Suri said "Oman plays a very important role in India's relationship with Gulf with bilateral trade exceeding $ 5.7 billion and is on the rise. With more than 1,500 Indian joint ventures, Indian investments in Oman exceeds $ 6 billion, she said.
Opportunities exists, for India in Oman in sectors like renewable energy, textiles, chemicals, healthcare education, and IT enabled services, she said, while noting that large Indian companies like IFFCO, L and T, Asian Paints, Jindal, TCIL and Wipro have made substantial contribution in developing Oman's manufacturing base.
Assocham President Rana Kapoor said that in the wake of meltdown of crude oil prices, the economic scenario of the Middle East countries is in for a significant change. The oil-rich countries are already making efforts to diversify their economies. Indian companies would be looking for opportunities arising out of the new paradigm unfolding in the Middle East.
Besides, in the areas like engineering, the Indian industry would also like the Oman investment and joint ventures in the Indian manufacturing under the 'Make in India' initiative, Kapoor said. Sanjay Beswal, co-chairman, foreign trade and investment committee, PHD Chamber said India and Oman could strengthen their trade and economic ties in oil and gas and tourism.
In the evolving economic scenario, in which both Oman and India are aggressively intensifying their external engagements, the two nations could move closer to one another in the fields of finance, insurance, engineering, construction and telecom, especially at times when India has acquired almost a leading position in the identified sectors, he said. "If Oman is included under Focus Market Scheme in the Foreign Trade Policy, that will give a boost to trade," Beswal said.
SOURCE: The Economic Times
UK textile businesses are being urged to seek support before the implementation of new energy audit legislation, which aims to reduce consumption. Later this year, the Energy Savings Opportunity Scheme (ESOS) legislation will come into force, affecting large businesses. The legislation will require energy consumption audits every four years.
Utilitywise, energy partner for the UK Fashion and Textile Association, is working to support British textile industry executives in how to become more energy efficient ahead of the Energy Savings Opportunity Scheme (ESOS) implementation later this year.
The consultancy offers advice on energy consumption reduction and monitoring for power, gas and water to its members and has organised a discussion in Nottingham next week (24 February) to help textile businesses understand the auditing process and how to best prepare for it.
SOURCE: The Eco textile
