Textiles minister Smriti Zubin Irani on Friday said that 1,590 products across more than 180 product categories have been registered under the India Handloom Brand which was launched in 2015 to provide assurance to the consumers about authenticity of handloom products. At the National Handloom Day virtual event, she also said that nine of the 28 weavers’ service centres have been upgraded with respect to research and marketing with the assistance of National Institute of Fashion Technology (NIFT). “There are 28 eaver Service Centres in India. We had asked students of NIFT to upgrade them with respect to marketing and research,” Irani said. Of these, nine centres in Delhi, Jaipur, Srinagar and Banaras, have already been upgraded. Irani said the plan is to upgrade all the centres with NIFT’s assistance. At the same event, textiles secretary Ravi Capoor said the government is working on a scheme in which weavers would get connected to the market directly without any intermediaries involved in the process. “We will give the material and designs so that it can be sold in the most expensive markets. The proceeds will be credited to the Direct Benet Transfer account of the weavers after deducting the marketing cost,” Capoor said. He said 95% of the world’s handcrafted fabric is made in India and the idea is to increase the price that the weavers get for their product by 20 times.
Source: Economic Times
A handloom portal will be launched on the occasion of the National Handloom Day on Friday along with a social media campaign to instil pride in the weaving community, the Textiles Ministry said on Thursday. A mobile application and backend website for the Handloom Mark Scheme will also be launched on the occasion. The Ministry of Textiles is organizing the function through a virtual platform to avoid public gathering considering COVID-19 pandemic. August 7 was chosen as the National Handloom Day to commemorate the Swadeshi Movement which was launched on the same date in 1905. The objective is to generate awareness about handloom industry amongst public at large and its contribution to the socio-economic development. To mark this occasion and to instil pride of workmanship of handloom weaving amongst citizens, a social media campaign is planned for the handloom weaving community, the Textiles Ministry said. "Prime Minister has urged that it should be an endeavour on part of all of us to use Indian handlooms and handicrafts and also communicate to other people about them. The more the world knows about the richness and diversity of these products, the greater our artisans and weavers will benefit," it added. The handloom sector is a symbol of India''s glorious cultural heritage and an important source of livelihood in the country. The sector is key to women empowerment as over 70 per cent of handloom weavers and allied workers are women. "Textiles Minister Smriti Irani has appealed to all Central Government Ministers, Lieutenant Governors, Chief Ministers of states, Members of Parliament and eminent Industrialists with friends and family to express solidarity with the weaving community through their social media accounts so as to motivate others to do the same," stated the ministry. The ministry has extended a similar request to Secretaries to the Government of India and equivalent level officers. Besides, all the Secretaries of the States, exports promotion councils, sister textile bodies like central silk board, National Jute Board have been requested to amplify the social media campaign under the common hashtag and inspiring associates and employees to embrace handloom fabric, the ministry said. The Government is providing online marketing opportunities to weavers and handloom producers in the face of the unprecedented Covid-19 pandemic, and inability to hold conventional marketing events such as exhibitions, melas, etc. The Handloom Export Promotion Council is organizing a virtual fair. The fair will connect more than 150 participants from different regions of the country showcasing their products with unique designs and skills. The Indian Textile Sourcing Fair will be open on 7, 10 and 11 August. Exquisite Patolas, Paithanis, Ikats, Kandangis, Maheshwaris, Venkatagiris and numerous other GI tagged products will be on display for the International buying community to source their products directly from the masters themselves.
Source: Outlook India
New Delhi: The commerce and industry ministry has suggested a provisional antidumping duty of $15.54- 200.66 per MT on imports of Polyethylene Terephthalate (PET Resin) coming from China. Reliance Industries NSE 0.58 % Limited and IVL Dhunseri Petrochem Industries Private Limited had led an application claiming injury resulting from the alleged dumping. “Having initiated and conducted the investigation into dumping, injury and causal link in terms of the provisions laid down under the Anti-Dumping Rules, the authority is of the view that imposition of provisional duty is required to oset dumping and injury, pending completion of the investigation,” the Directorate General of Trade Remedies (DGTR) said in its preliminary findings. The probe began on October 1, 2019. DGTR can only recommend the duty but the finance ministry takes a final call on imposing it. The provisional duty can be imposed only after the expiry of 60 days from the date of initiation of investigation and remain in force only for six months. The department noted that India is the single largest market for Chinese exporters. China’s share increased from 5% in Apr-Sept, 2018 to 7% in Oct-Dec, 2018, 9% in Jan-Mar, 2019 and 10% in Apr-Jun, 2019. “The exports from China to India are increasing at a much faster pace than those to third countries. The increasing importance of India as a market itself highlights threat of material injury,” it said. PET resin is used in textiles, plastic bottles, tires, undersea cables and 3-D printing, among others. However, the department said that the scope of product under consideration does not include recycled PET Resin used to manufacture preforms, which are then converted into PET bottle and jars for the storage of mineral water, carbonated soft drinks, edible oils, and pharmaceutical products. The department added that the imports from countries other than China are not significant in volume terms so as to cause or threaten to cause injury to the domestic industry. Thus, it cannot be said that imports from other countries are causing injury. In its findings, the department said that imports have increased at a rapid rate and there are significant surplus capacities in China which are expected to increase further. “Other markets such as the US, Canada, Brazil and Argentina may be closed for the exporters due to imposition of trade remedial measures. The imports are entering the domestic market at such prices as are likely to have a further suppressing or depressing effect,” it said. As per the findings, Madras Hard tools Pvt Ltd submitted that there is no injury being caused to the domestic manufactures of goods and the imported goods catering to the local users are competitive in price and good in quality with delivery timelines well kept. “RIL material is always in demand and not easily available. Their terms and prices are not capable of being affordable for small manufacturers therefore, the injury claimed by the complainant is simply a bullying tactic to have monopoly in PET market,” it said, adding that there is “inconsistency and one-upmanship and chaotic situations created by local suppliers. Direct interaction with the tertiary level dealers and manufacturers will reveal the position”.
Source: Economic Times
The Directorate General of Foreign Trade (DGFT) has extended till August 8 the deadline for ling online applications to avail the current month's export quota for PPE medical coveralls for COVID-19. "Due to technical/server issues, the ECOM facility for online application on the DGFT website was not available from 7 PM on August 2 to 4 PM on August 5," the DGFT, an agency under the Commerce Ministry, said in a trade notice. In view of the unavailability of application ling facility during the rst to third day of August, "the time for ling online applications for PPE medical coveralls for COVID-19 quota for the month of August has been extended till August 8, 2020", the notice said. As per the procedure laid out, it was decided that from August onwards, applications led from the rst day to third day of each month would have to be considered for the quota of that month. On June 29, the DGFT permitted shipments of personal protective equipment (PPE) medical coveralls for COVID-19 treatment with a monthly export quota of 50 lakh units per month. Validity of the export licenses will be for three months. The exporter will have to submit the copy of purchase order and one application per IEC (import export code) will be considered.
Source: Economic Times
New Delhi: The Central Board of Direct Taxes on Friday issued detailed guidelines for Mutual Agreement Procedure (MAP), an alternative dispute resolution procedure provided in tax treaties that India has with various countries. The guidelines — to be used by ta authorities, taxpayers, tax practitioners and chartered accountants of India and treaty partners — provide timelines for various steps under MAP procedure and give clarity on situations where MAP applications can be led. Two central government officials have been assigned to deal with MAP cases as competent authorities. India has already eased the process of dispute resolution under MAP within tax treaties, by restricting the resolution time frame to 24 months, instead of no timeframe earlier, and enabling the competent authority to seek documents or hold discussions with the assesse or tax authorities. It amended rule 44G in May. MAP route is typically used for resolving tax disputes of cross-border transactions, related to existence of Permanent Establishment or PE of a foreign company in another country, attribution of prots to a PE, transfer pricing adjustments or characterisation or recharacterization of an income or expense. Experts said the guidelines were in line with the Organisation for Economic Co-operation and Development recommendation under BEPS Action Plan 14. “With these guidelines, more taxpayers may be inclined to opt for MAP to resolve their tax disputes in India,” said Shailesh Kumar, partner at Nangia & Co LLP.
Source: Economic Times
As the government plans to provide incentives to boost domestic manufacturing and drastically cut down on incoming goods, official data shows that India continues to import more from almost all major trade partners than it exports. According to official data from the Commerce Department, India had a trade deficit with 9 of its top 10 bilateral trade partners at the end of 2019-20, leading to cumulative imports being $113 billion more than exports to these nations. While this figure dropped from the $118 billion registered in the previous year, deficit rose for five countries, while ...
Source: Business Standard
Industry is encouraged by the RBI's decision to provide a window under the Prudential Framework to enable lenders to implement a resolution plan in respect of their corporate exposures, with the necessary caveats in place, the CII said in a statement. Announcements made by the Reserve Bank, particularly the one on resolution of loans, have been welcomed by the industry as well as market players and experts. The Reserve Bank of India (RBI) on Thursday announced a loan restructuring window for corporates following the demand from bankers and the industry. The restructuring will be allowed as per the prudential framework issued in June 2019, RBI Governor Shaktikanta Das said. Last week, Finance Minister Nirmala Sitharaman had said that the government is working with the RBI on the need for restructuring of loans to help the industry tide over the impact of COVID-19. Industry is encouraged by the RBI's decision to provide a window under the Prudential Framework to enable lenders to implement a resolution plan in respect of their corporate exposures, with the necessary caveats in place, the CII said in a statement. CII President Uday Kotak also said that given that the RBI has already reduced the repo rate significantly leading to increased liquidity, the decision to "keep the rate unchanged at 4 per cent today is understandable". Commenting on the monetary policy, FICCI President Sangita Reddy said the chamber congratulates steps announced towards resolution of loans in the monetary policy by announcing restructuring of MSME loans that were in standard category till March 1, 2020, and for setting up committee under K V Kamath to work on resolution framework. "We keenly look forward to details and execution," Reddy said. Secretary general of Assocham Deepak Sood said the RBI has risen to the occasion by announcing a restructuring framework for the stressed borrowers, also helping lenders in the process. "Maintaining the credit discipline, the RBI has notably not left discretions of financial parameters for eligibility to individual banks; by announcing a high level committee for deciding the rules of the game," he said. He further said the banker of the high reputation of Kamath to be heading this committee gives a great comfort and reassurance that the financial parameters would be non-discriminatory and liberal enough, taking into account the hardship being faced by the borrowers across the spectrum. Relaxation of the Loan-To-Value Ratio up to 90 per cent for the gold loans is a great relief for the households who are facing severe liquidity crunch due to loss of income, Sood added. D K Aggarwal, President, PHD Chamber of Commerce and Industry, appreciated the accommodative stance of the Reserve Bank of India in consideration of the recent developments at the global market and in the domestic economy. "At this juncture, we urge the banking sector to percolate all the 115 bps cut in the repo rate by the RBI during the last four months for the benefit of trade, industry and consumers and for rejuvenating the demand in the economy," Aggarwal said. On extension of the provision of restructuring of MSME loans, Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said this is a very timely decision as thousands of small and medium enterprises are facing severe financial crisis and the extension of the provision will give a fresh lease of life to many," Dr A Sakthivel said. Cyril Shro, Managing Partner, Cyril Amarchand Mangaldas, said the RBI displayed a combination of courage and conviction; commercial expedience and calibration in their announcements on Thursday. "These announcements will help rebuild resilience and stability in both the real and financial sectors," Shro said and added, by permitting restructuring of loan accounts which were standard on March 1, 2020, RBI has restricted the relief to those viable businesses stressed on account of COVID 19 and therefore obviated any moral hazard concerns. Divam Sharma, Founder, Green Portfolio said gold loan LTV raised to 90 per cent from current 75 per cent is a big positive for banks and NBFCs offering such loans and will give the SME and small business borrowers the much-needed liquidity in this unprecedented pandemic situation. Sachin Chhabra, Founder and CEO of Peel Works, a B2B grocery ecommerce company, opined this was indeed the time for RBI to make some unpopular moves to turbocharge the economic revival process. "We have an SME sector that is gasping for adorable capital, our supply chain systems are choked due to poor economics, and travel and hospitality are down and out. Firing up demand (cut back on interest rates) as we stabilise our supply systems, concurrently, is the only way we can return to our familiar old world," he said. Naveen Kukreja- CEO and Co-Founder, Paisabazaar.com too appreciated the RBI's decision on increasing the LTV ration in gold loans. Gold loans are backed by relatively liquid collaterals and hence, lenders take a more relaxed approach while sanctioning gold loans to those with poorer credit proles, he said. Kuntal Sur, Partner and Financial Risk and Regulation Leader, PwC India said, "Going by the market expectations", RBI is setting up an expert committee headed by KV Kamath for corporate and personal loans resolution plans. Rumki Majumdar, Economist, Deloitte India, said the RBI's dynamic, proactive, and balanced approach is in line with our expectations that the central bank will be looking at alternate measures such as forward guidance and maintain sufficient liquidity. Ishpreet Singh Gandhi, Founder & Managing Partner, Stride Ventures said under the new priority sector lending norms, startups will now be able to attract better pricing. EEPC India Chairman Mahesh Desai said exporters continue to pay much higher cost of borrowing in India as compared to their competitors even as by RBI's own assessment, external demand is expected to remain 'anaemic'.
Source: Economic Times
Finance Minister Nirmala Sitharaman on Friday said taxpayers are nation-builders and the government would come out with a charter of rights for them. The minister also said the government has taken several measures towards simplification, improving transparency and moderation in rates as part of efforts to bring in ease for honest taxpayers. “So I'm so happy that we are part of a government being led by a Prime Minister who honestly thinks the Indian taxpayer needs to be served better. And one of the announcements, which of course I made and I shall not elaborate on it now, is to give the Indian taxpayer a charter of its rights," she said. The minister was addressing a centenary celebration programme of eminent jurist Nani Palkhivala, organised by Sastra University. There are only a few countries in the world, like Australia, the UK and US, where there is a Charter of Rights for the taxpayer, she said. "It clearly states this obligation towards the nation as much as clearly pronouncing the rights. We are attempting that. I had announced it as a part of the Atmanirbhar campaign. We are very keen to provide to taxpayers Charter of Rights. We shall be coming with that," Sitharaman said. The Budget had announced a taxpayers' charter, which is expected to have statutory status and it will empower citizens by ensuring time-bound services by the Income Tax Department. Sitharaman emphasised that Prime Minister Narendra Modi addresses taxpayers as 'nation-builders' and an honest taxpayer helps build this country. They help government after government to carry forward social welfare programmes which are absolutely critical for the livelihoods of the poorest of the poor, she said. The Prime Minister has made it very clear that this country has to make tax simple and easy for compliance for taxpayers, she said.To fulfil this objective, the government has introduced faceless assessment, reduction in scrutiny and pre-filled tax form, among others. "In September 2019, we took a major step to bring down the corporate tax, and even then and now too India stands as one of those countries where we have the lowest of rates and also the corporate tax methodology itself has been so simplified, that there are no exemptions, there are no benefits," she said. Speaking during the virtual session, Tata Sons Chairman N Chandrasekaran said India's judicial system has a huge capacity issue. "As per the National Judicial Data Grid, somewhere around 3 crore cases are pending in one court or another. If you take high courts and Supreme Court, we have over 45 lakh cases that are pending. "Typically case takes 4-5 years for resolution and normally 40 per cent of the total disputed settlement is already spent during this period but if you take into account the time value of money, almost 100 per cent is gone. “From a corporate sector point of view, the estimated number is around Rs 45,000 crore per annum. So I think it's a huge overhead, huge spend, huge inefficiency which needs to be addressed. At this time, a subject like alternative dispute resolution or ADR is something that can make an enormous difference," he said. Modalities and systems are required to give confidence to both the disagreeing parties that a settlement or judgement can happen with little or no litigation, Chandrasekaran added. To fasten the corporate dispute resolution process, Sitharaman said the government is making an effort to make India an international arbitration hub which will be able to deal with all those Indian corporate disputes which are going to Singapore or London for resolution. To achieve the goal, Parliament last year passed the Arbitration and Conciliation (Amendment) Bill 2019. "So if India's arbitrations skills, if lawyers who are trained for arbitration, if Indian legal system is adequately funded and resourced, we will be one of the good arbitration hubs," she said. The law is part of the government's efforts to encourage institutional arbitration for settlement of disputes and make India a centre of robust alternative dispute resolution mechanism. A large number of arbitration cases are conducted in countries such as Singapore, the UK and France. Commercial disputes have increased manifold due to globalisation, industrialisation and liberalisation.
Source: Business Standard
MPC unanimously backed the status quo on rates amid elevated price pressures, but acknowledged the need for action to aid economic growth, which remains fragile in the wake of Covid-19 pandemic and the closures that followed. The Reserve Bank of India (RBI) ended the loan repayment moratorium and unveiled a loan-restructuring programme as a rst step toward nudging industry and banks to return to normalcy, while keeping interest rates unchanged, balancing the need to shore up the Covid-hit economy with inaction vigilance. The Monetary Policy Committee (MPC) unanimously backed the status quo on rates amid elevated price pressures, but acknowledged the need for action to aid economic growth, which remains fragile in the wake of Covid-19 pandemic and the closures that followed. “The MPC also decided to continue with the accommodative stance as long as it is necessary to revive growth and mitigate the impact of Covid-19 on the economy, while ensuring that inaction remains within the target going forward,” the RBI said. “These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inaction of 4 per cent within a band of +/- 2 percentage points, while supporting growth.” Time Till Dec 31 Surplus liquidity in the banking system is still pushing down borrowing costs for companies and can be spiciest as a tool for the time being to help borrowers. “While space for further monetary policy action is available, it is important to use it judiciously to maximise the beneficial effects for underlying economic activity,” RBI governor Shaktikanta Das said. "At the same time, the MPC is conscious of its medium term inaction target." The policy repo rate, at which the RBI lends to banks, was kept at 4 per cent and the reverse repo rate, at which it pays banks for parking excess deposits, stayed at 3.35 per cent. All other rates also remained unchanged, in line with market expectations. Stocks moved marginally up — the Sensex ended 1 per cent higher at 38,025.45 and the Nifty rose 0.9 per cent to 11,200.15. The benchmark bond yield raised four basis points to 5.81 per cent, pulling prices down. The rupee was little changed at 74.93 to the dollar. Governor Das is slowly unwinding some of the extraordinary measures that were taken to cope with the Covid crisis, such as the repayment moratorium announced in March to help borrowers. Bankers, including State Bank of India chairman Rajnish Kumar, had demanded that it be ended to restore repayment culture and instead sought loan restructuring to help businesses. With surplus liquidity and price pressures, the MPC also found it meaningless to embark on another rate cut at this point, possibly keeping its powder dry for later. Banks have been given until December 31 to restructure assets without classifying them as bad loans. But the rules governing this are strict, with a 180-day deadline to implement resolution plans from the date of invocation. These also plug some of the gaps that were blamed for the pile-up of bad loans in the past decade. “In the light of past experience with regard to use of regulatory forbearance, necessary safeguards have been incorporated, including prudent entry norms, clearly denied boundary conditions, specific binding covenants, independent validation and strict post-implementation performance monitoring,” said Das. “The underlying theme of this resolution window is preservation of the soundness of the Indian banking sector.” These measures are likely to ease the pressure on banks for additional capital. “Lack of a rate cut from the RBI — similar to the December 2019 MPC meeting — once again establishes the primacy of inaction over growth, no matter what the extent of the economic downturn,” said Rahul Bajoria, economist at Barclays. “Lack of any major additional support is indicative that RBI could be close to hitting its thresholds on immediate support, as liquidity conditions are ush, currency is stable, and rates are adequately low.” The central bank did not provide growth or inaction estimates for the third straight time, but said that recovery remains brittle, with the farm sector being the only hope at this point. The economy is set to contract in the rest half of the scale year and forecast by some to do so in the full year as well unless there’s a remarkable turnaround in sentiment. Inaction may remain elevated and then ease toward the end of the scale year as abundant food supplies reach the market and supply chain disruptions get xed. “The recovery of the rural economy is expected to be robust, buoyed by the progress in kharif sowing,” said Das. “On the other hand, consumer confidence turned more pessimistic in July. A more protracted spread of the pandemic, deviations from the forecast of a normal monsoon and global financial market volatility are the key downside risks.”
Source: Economic Times
Uttar Pradesh Chief Minister Yogi Adityanath on Friday transferred online loans worth Rs 2,447 crore to 98,743 new MSME units. In a programme organised at his official residence here, he also inaugurated skill development training organised by the MSME department for handicraft workers besides training scheme for members of the scheduled castes -tribes, other backward caste and one district-one product marketing scheme, an official release said. Speaking on the occasion, Yogi Adityanath said that his government was working with full dedication to explore all possibilities to realise 'self-reliant India'. He also termed providing employment to the people for making then self-sufficient as the top priority of his government. On the occasion, he laid foundation stone of 13 common facility centres under One District One Product scheme and also inaugurated six facility centres for encouraging export under the export infrastructure scheme of the Government of India. An MoU between state MSME department and Abdul Kalam Technical University (AKTU) was also signed for transfer of knowledge in technology.
Source: Business Standard
According to the GST law, aggregate turnover refers to the total value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and interState supplies of persons having the same PAN. Businesses used to under-report their turnovers and investment sizes, sometimes floating new companies and carving out part businesses to them, in order to continue to enjoy assorted benefits meant for MSMEs. This has resulted in the government enlarging the definition of such firms, a move that is also in sync with the intent to encourage start-ups and other employment-intensive units to scale up. Now, a similar trend is under way among goods and services tax (GST) assesses. The GST administration has found that many businesses with annual turnover above Rs 5 crore wrongfully declare themselves to be below that threshold in order to avail themselves of several compliance-related relaxations. It has sent notices to a large number of such firms, saying that their compliance deadlines would be reassessed, based on the tax department’s own computation of their annual turnovers. Since its inception, the GST Council has progressively eased compliance burden for smaller businesses including the requirement to file the form GSTR-1 (outward supply) only once in a quarter for those with turnover below Rs 1.5 crore. Experts said that it is often attractive for businesses which may have just gone over the threshold in the previous financial year, to continue to declare themselves, as under the turnover level. After the pandemic hit the country, the small GST taxpayers were given further relaxations. The government said that those having aggregate annual turnover less than Rs 5 crore, their last date for filing the summary monthly return GSTR-3B for months of March, April and May would be last week of June. Further, these taxpayers wouldn’t be charged any interest, late fee, and penalty. While the current notices have been sent to mostly those who are believed to be above Rs 5 crore turnover but have declared lower numbers, government sources said a similar exercise could be in the offing, concerning the Rs 1.5 crore threshold too. “Your aggregate turnover for the financial year FY2019-20 has been computed by GST system based on returns filed in Form GSTR-3B by all registrations on the common PAN. The same has been found to be more than Rs 5 crore where returns of FY 2019-20 filed up to July 25, 2020 have considered for the said computation,” one such notice seen by FE said. It added that the computation would now be used by the GST system for certain validations in the system such as determining due date of return-filing and computation of late fee by the system. “You can also use the same for reporting interest on delayed payments based on self-assessment basis,” it said. According to the GST law, aggregate turnover refers to the total value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and interstate supplies of persons having the same PAN.
Source: Financial Express
Kolkata: The GST collection in West Bengal is improving with growing economic activities in the state and the revenue from the indirect tax at Rs. 1,212.44 crore in July was higher than that of the previous months, an official said on Friday. The Goods and Services Ta collection is getting stabilised because companies have started making deferred payments which the authorities had allowed till September this year in view of the coronavirus crisis, he said. "The collection of the gross GST (Central GST, State GST, Integrated GST and cess) from centrally-administered assesses in West Bengal stood at Rs 1,212.44 crore in July, while the indirect tax revenues in April and May this year were at Rs 345 crore and Rs 745 crore respectively," the official said. The revenue is increasing as the economic activities are growing in the state with ease of the lockdown restrictions, he said. However, the GST collection in July was down by around 10 per cent year-on-year as the revenue in the corresponding month of 2019 was at Rs 1,348.57 crore, he said Compared to Rs 1,416.38 crore mopped up in June last year, the collection of GST in West Bengal had dropped to Rs 1,367.50 crore in the same month of 2020.
Source: Economic Times
GANDHINAGAR: Gujarat Chief Minister Vijay Rupani announced State’s Industrial Policy 2020 here on Friday. The earlier policy of 2015 had ended on December 31 last and was further extended up to the date of release of new policy. It is expected that the average annual outlay for the New Gujarat Industrial Policy 2020 will be upto INR 8,000 crore. Announcing the policy, Rupani maintained that the new Gujarat Industrial Policy 2020 has been formed to further consolidate this momentum and enhance the current growth rate. “Focused efforts have been made for supporting jobs, value addition across sectors, adoption of state-of-the-art technology, increase productivity with Industry 4.0 manufacturing, innovation driven ecosystem with focus on research and development so as to propel the state further towards “Atmanirbhar Gujarat”. This will enable the shaping of a Modern Gujarat that spearheads the vision of a Modern India,” he added. The policy conceptualises thirst sectors categorising them in two major groups of Core sectors and Sunrise sectors. Core sectors include areas where Gujarat already has a strong manufacturing base and has potential to accelerate further on a global scale. Sunrise Sectors are sectors which have a significant potential for technological advancement and can contribute to sustainable economic development. Thrust sectors will be given incremental incentives as part of the policy, the Chief Minister maintained. The policy also de-links incentives from state GST and provides for upto 12% of fixed Capital investment will be given to large industries for setting up manufacturing operations in the state in the form of capital subsidy. Gujarat for the records becomes the rst state to do so. The policy also focuses to promote MSMEs with an aim to make domestic MSMEs globally competitive. Government will support MSMEs in upgradation of technologies, adopting globally accepted certifications and in marketing their products internationally. The New Gujarat Industrial Policy 2020 will oer interest subsidy upto 7% upto INR 35 lakhs per annum for a period upto 7 years to these service sector MSMEs in the state including those engaged in Financial Services, Healthcare Services, Audio Visual services, Construction related engineering services, Environmental services etc, the Chief Minister maintained adding that simultaneously, the state is working on a Service sector policy for large enterprises.
Source: Economic Times
Bengaluru (Karnataka): An innovative product has emerged in the Indian textile industry that promises to render viruses such as coronavirus ineffective. The credit to bring this technology goes to N9 World Technologies, a subsidiary of Bengaluru Resil Chemicals, and Consolidated Pathways Inc, USA. The two firms signed an agreement to build unique Swiss antiviral and antimicrobial technologies into sustainable, cost effective custom blends for India's textile industry. At the centre of the partnership is N9's unique organ functional polymer marketed under the umbrella brand VIROBAN. The durable antiviral technology from the house of N9 brings hygiene to textile materials, thereby helping improve the fabric's resilience against viruses' including Coronavirus. The VIROBAN N9 XTS-18 creates a highly-cationic charge density on the textile's surface, deactivating the spread of the virus & bacteria upon contact. The technology is highly effective against enveloped and capsid viruses, having proven in reducing infective viruses by 99.99 per cent in ISO 18184 tests. The technology is designed to quickly prevent transmission of viruses. VIROBAN polymers are highly compatible with other textiles while remaining gentle on human skin. N9's special textile capabilities have ushered in a unique product that has emerged as the need of the hour for countries fighting the pandemic. Such high-quality fabrics and textile products correspond with the needs of India. "With the onslaught of the pandemic, consumers are increasingly seeking protection and safety in almost everything they breathe, touch or wear. We are committed to keeping our customers safe and that is why we have partnered with Consolidated Pathways & SANITIZED AG. With this partnership, N9 World Technologies is now a 'One Stop Shop' for Global Brands & Retailers who are seeking innovative and sustainable specialty finishes for their textile products. A worldwide business development team is already in place for marketing and servicing customers with these proven technologies with global regulatory approvals," said Vikram Rao, Managing Director of N9 World Technologies explaining the benefits of the technology. N9 World Technologies Pvt Ltd, a wholly owned subsidiary of Bengaluru based Resil Chemicals and is a manufacturer and marketer of specialty chemicals in Antibacterial, Cooling & Dynamic Drying technologies. "Current annual Indian mill made fabric production for domestic and an export market is nearly 7 billion square meter. This can possibly create the potential for use for antibacterial & antiviral products to the tune of Rs 140 - 150 crores. With N9's strong local service and technical support, we aim to capture a significant market share from this emerging opportunity. N9's manufacturing capability within the country can help scale up the production of the antiviral products quickly and market them globally with this association," said Ganesh Srinivasan, CEO of Resil Chemicals. Based in Midland, Michigan, USA, Consolidated Pathways is a brand & technical representative for Sanitized® products, and supports the advancement of the trusted Sanitized® Quality Seal and related branding concepts to the global textile industry. Consolidated Pathways is partnering with N9 World Technologies in support of its antiviral and antimicrobial custom blended products, which, when properly applied can utilize the highly regarded Sanitized Quality Seal. "We are excited to partner with N9 World Technologies. This partnership provides a unique combination of technologies, market information and expertise that can help brands and retailers enhance their products in ways that are meaningful to consumers," added James Krueger, CEO of Consolidated Pathways. Resil Chemicals enjoys the trust of over 150 brands and retailers across the world for its products like COOLITTM, Neudri TM, N9 Pure Silver TM, etc. Almost all the antibacterial masks in the Indian market currently use N9's products to achieve the antibacterial effect. This partnership will now allow both companies to offer unique performance benefit platforms to the global textile industry. Any antiviral claims are subject to regulation in countries where such regulations exist and N9 assists its customers in assuring that such regulations are strictly adhered to.
Source: Business World
The Commerce Ministry is on toes for getting approval of Textile Policy 2020-25 from ECC and unless and until the textile policy is approved and implemented the massive increase in exports is not possible, Adviser to Prime Minister on Commerce, Textile Abdul Razak Dawood stated this to The News here on Thursday. The adviser said that he himself is trying from pillar to post to get notified the regional tariff of electricity and gas for the export industry for the current fiscal 2020-21 and the demand of the textile sector for continuation of the regional tariff for next three years is quite justified. He said that Prime Minister Imran Khan has already accorded approval to Textile Policy 2020-25 in terms of policy directives on production and diversification of exports. However, the ministry is working on the processes and procedures on how to implement the Textile Policy and ensure the dividends out of it. To a question Dawood said that in the last fiscal 2018-19, he managed to get notified the regional electricity and gas tariff for the export sector at 7.5 cents per unit and $6.5 per MMBTU respectively. He said that he is also trying his best to get notified of the same regional tariff for the export industry for the current financial year 2019-20. However, top sources said that Commerce Ministry is to soon prepare a summary for ECC seeking the approval of regional tariff of gas at $6.5 per MMBTU and electricity tariff at 7.5 cents per unit for the current financial year 2020-21. Power Division also prepared the summary which has been asked by the authorities to withdraw and instead Commerce Ministry will pitch the summary in ECC to this effect. Meanwhile Shahid Sattar, Executive Director of All Pakistan Textile Association (APTMA) said that approval of the Textile Policy 2020-25 is a key to accelerate the textile exports in a big way, but it has not yet been approved by ECC and Federal Cabinet despite the fact that prime minister has approved it many months back. He said that textile exports have increased by 14.5 percent in the month of July, 2020 while overall exports have increased by 5.8 percent and if the textile policy is approved and implemented then the sky is the limit in terms of jacking up the exports. He said that the electricity bills which the textile industry are currently being sent by DISCOs at Rs24 per unit against the agreed tariff of 7.5 cents per unit. He said if the textile policy 2020-25 is approved, then for next three years, the electricity and gas tariff will be at regional level which will help increase massively the textile exports of the country, but the current situation has created uncertainty in the sector. “The approval of textile policy is the only way to ensure more investment in textile sector as huge investment is in the pipeline but is awaiting the approval of textile policy.”
Source: The News
The Covid-19 pandemic has triggered huge job losses, especially for women, in the readymade garment (RMG) sector in Bangladesh exposing the sector's sensitivities by destabilising global supply chains and leading to a decline in demand, according to the World Trade Organization (WTO). “Orders received by Bangladesh's RMG factories declined by 45.8 per cent over the first quarter of 2020, with an 81 per cent contraction experienced in April alone,” said an information note of the WTO secretariat in Geneva. Titled as ‘The effects of COVID-19 on Bangladesh's ready-made garment sector’, a box item in the information note pointed out that the demand contraction and order cancellation led to a marked effect on employment. “Recent surveys indicate that more than a million garment workers in Bangladesh have already been dismissed or furloughed due to future order cancellations and customer refusals to pay for current orders,” it added. The information note, titled as ‘The economic impact of Covid-19 on women in vulnerable sectors and economies’, released on Tuesday. “The global garment and textile industry, which employs a large number of women, has been heavily impacted by a large number of order cancellations and the temporary closure of retail shops resulting in many factory shutdowns in countries such as Bangladesh, Cambodia and Viet Nam,” it added. It pointed out that as a large amount of spending on clothing is driven by seasonal factors, many winter and spring sales were permanently lost during the lockdown. “The apparel and accessory store revenue losses have translated into job losses and financial hardship for people, many of whom are women, across the global supply chain, from those picking fibres and making textiles to those selling the finished fashion product, whether in physical shops or online,” it explained. Giving especial focus on the RMG sector in Bangladesh, the note mentioned that the annual export revenue generated by the sector encompassed 84 per cent of the country's aggregate export value for 2019. “In addition, the sector functions as a significant employer of women, with female employees representing 80 per cent of the 4.0 million employed in RMG production,” it added. “However, women tend to occupy the lower rungs of the production chain, with limited representation in managerial roles,” it added. The WTO report, quoting a number of studies, added that women account for four out of every five production line workers, but just one out of every 20 supervisors. “The significant representation of female employees in the RMG sector, coupled with the fact that they tend to be employed at the lower end of the production chain, exposes them to a higher degree of job risk relative to other social groups,” it observed.
Source: Financial Express
The new EU–Vietnam free trade agreement (EVFTA), which came into effect on Aug. 1, on Wednesday opened up opportunities to boost Vietnam’s economy, Prime Minister Nguyen Xuan Phuc and Vietnamese business leaders said. Phuc, however, urged authorities to ensure international labour standards were met and measures taken to protect the environment. He also expressed hope that the treaty would ensure Vietnam’s products met European standards and increase jobs. “The EU is a market with strict requirements on quality. “Therefore, the free trade agreement opens up opportunities for Vietnam to innovate its growth model. “Encourage businesses to improve, accept new and stricter rules as well as creating new jobs,” he said. EVFTA had been described by Brussels as its most ambitious agreement with a developing country. The agreement with Vietnam will eliminate 99 per cent of all tariffs on both sides, cut non-tariff barriers and open up Vietnamese services and public procurement markets to EU companies. Phuc also hoped the trade deal would mitigate economic damage brought about by the pandemic. “Major economies and leading partners of Vietnam such as the U.S., China and Japan have all suffered record declines in economic growth. “Even the EU has suffered a decline in GDP in 2020.” Jean-Jacques Bouflet, Vice Chairman at the European Chamber of Commerce in Vietnam, claimed in a recent survey that 74 per cent of European business leaders said the EVFTA would have a positive impact. “Currently, worldwide business activities are seriously affected by COVID-19. “EVFTA will promote trade and investment, create long-term opportunities and shape the relationship between the EU and Vietnam over the next ten years.” He said EVFTA would provide EU enterprises with the chance to access one of the most vibrant consumer markets in South-East Asia. Bouflet added that EVFTA would bring about healthy competition on equal terms with other countries that have signed free trade agreements with Vietnam like Japan and Korea. Vietnam, a nation of 96 million, is currently going through a second wave of the virus and is facing severe economic impacts, with over 30,000 businesses having suspended operations since the beginning of the crisis. The approval of the EVFTA, however, is expected to buoy up a country aiming to avoid recession and hit the 2.7-per-cent GDP prediction for 2020 set by the IMF in April. The Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), Vu Loc, expressed delight over the VCCI and the Vietnamese business community. “We are now in a very unstable situation with COVID-19 and the trade war. “All of these affects our economy. “I think the Vietnam-EU free trade agreement will provide a foundation for our economic development and integration. “Now, Vietnam enters a new period of development. We will like to improve quality and increase the value of Vietnam in the world’s supply chains and introduce progressive technologies and management,” he said. EVFTA will eventually help Vietnam, which is regularly among the world’s fastestgrowing economies, to increase its export turnover to the EU by about 44 per cent by 2030. According to the Chief Executive of Vietnam National Textile and Garment Group, Le Truong, at this time in Vietnam, the textile industry is the second biggest for export. “And for us, we have three major markets. The first one is the U.S., the second is the EU and the third is Japan. “But in the total global textile supply chain, Vietnam is number three, we have a global market share of around 6 per cent. “It means we still have a weak point in the EU. “We hope the EVFTA will support a new dynamic for the business community and expand our share in the EU.” However, the deal was considered an economic boon for Vietnam, assisting the country to gain access to a market of over 500 million people and potentially increase its annual GDP by between 2.18 and 3.25 per cent over the coming years.
Source: Naija247news
With the completion of the final post-Brexit transitional period around the corner, the UK is scrambling to secure multiple trade deals before the end of 2020. The Japan-UK free trade agreement (FTA) holds significance in boosting investments and diversified supply chain mechanism for both the countries with market growth opportunities, says GlobalData, a leading data and analytics company. The investor-state dispute settlement (ISDS) provision, which enables the countries to settle disputes with foreign investors, was mutually excluded from the negotiation talks with an aim to reach the desired deal at the earliest, through a digital platform, amid the COVID-19 pandemic. Japan is focused on defending the interest of its automobile industries, by seeking favorable tariff terms or the rate agreed in the EU agreement last year, whereas the UK is envisaging the dream of becoming Global Britain by seeking high-powered trade deals with the countries covering 80% of the UK market. Prachi Gupta, Economic Research Analyst at GlobalData, states: ‘The UK has been the business hub of Japan for long and a gateway for the European market. The unfavorable future trade deals between the UK and EU could give rise to uncertainties for the Japanese businesses, regarding the supply chain disruptions towards the manufacturing and exports of automobiles in the region. The FTA will help Japanese industries in curbing the trade disruptions arising, after the end of transition period.’ The FTA is to set forth the steppingstone for Japan in becoming the full member of the ‘Five Eyes plus’ framework to strengthen the intelligence alliance, that shares the information on North Korea and China through its advanced technologies as the sixth eye. Moreover, the UK’s membership to the Comprehensive and Progressive Agreement of Trans-Pacific Partnership (CP-TPP) will benefit Japan in counteracting China’s influence over the region and luring the US at the negotiations. According to the UK Department for International Trade (DIT), the trade between Japan and the UK is expected to boost by US$18.1bn in the coming years, with the signing of the FTA. The Japanese automotive industries have expressed the keen interest in the bilateral trade relations with the UK, through progressively liberalized tariff terms in the future, on the lines of the EU-Japan agreement. The FTA is expected to benefit the various aspects of Japan and the UK’s economies such as the recognition of professional qualifications by the respective countries, with the lowered tariff rates in the textile, leather, automobiles and agriculture sector. The trade deal is also expected to pave the way for free flow of data, leading to the development of technologies, artificial intelligence and advanced digital trade. Ms Gupta concludes: ‘The reduction in tariff rates could lower the cost of domestic production, leading to the promotion of the SMEs and improvement in the quality of trade between both the countries with the effective use of the global supply chain. The FTA will boost investments, trade and job creation besides strengthening the UK-Pacific relations.’
Source: Hellenic Shipping News
Dhaka: Bangladesh is the most suitable place for investment for global enterprises as it has a large population and huge market potential, said Xu Xiaochu, Chairman of Chinas Yabang Investment Holding Group Company Limited. The firm is one of the top 500 Chinese companies, has already inked a land lease agreement with Ban gladesh Economic Zones Authority (BEZA) for 100 acres land to set up textile and other chemical industries in Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) at Mirsarai, Sitakundu and Sonagazi upazillas under Chattogram and Feni districts.
Source: The Hans India
