NEW DELHI: The government is likely to soon announce fresh measures, including big-ticket infrastructure projects and policy changes, to make local industry more competitive, as part of efforts to rebuild the economy in the wake of the Covid-19 pandemic, said people with knowledge of the matter. Prime Minister Narendra Modi may himself unveil some of these steps, which could also include an initiative to reorient the tax administration, said government sources. The measures could be announced as early as August 13, they said. The move to make industry more competitive will be part of the Atmanirbhar Bharat Abhiyan, or self-reliance campaign, they said. This latest package will follow the Pradhan Mantri Garib Kalyan Yojana and Atmanirbhar Bharat revival programmes that were announced earlier. “The first two sets of measures were to provide cushion to industry against the Covid shock,” said one of the officials. “This set of measures would focus on rebuilding.” Proposals being firmed up include a more digitally focussed tax administration, the enshrining of taxpayers’ rights, frontloading of defence purchases and expediting spending on key infrastructure projects that will have to be completed within a deadline, said the people cited earlier. The thrust of the proposals on manufacturing side is to enhance domestic industry’s competitiveness while making it easier and more attractive for foreign manufacturers to set up operations in the country. Tax administration reforms will add to the draw. Data released on Tuesday showed industrial production contracted 36% in the June quarter. The package is based on inputs from global manufacturers on what would incentivise them to set up factories in the country. A broad framework to make the country self-reliant and boost local manufacturing is in the works, another government official said, confirming that deliberations have taken place to this end. “These are likely to be a mix of supply-side as well as some to spur demand,” he said. The government has raised tariffs on many products and stipulated import licensing for others, which will make overseas goods expensive in the hope that this will encourage domestic production. The Pradhan Mantri Garib Kalyan Yojana was announced soon after the nationwide lockdown was implemented at end of March and provided free food grain and cash payments to women, poor senior citizens and farmers. The Rs 20-lakh-crore Atmanirbhar package in May unveiled a credit guarantee scheme for MSMEs as well as key reforms for the farm sector, among other steps. Rural demand has remained strong on the back of support from the first two packages. The next set of the measures are likely to focus on securing jobs in urban centres by providing backing for businesses.
Source: Economic Times
India is not an “assembly workshop” for foreign companies to import and then assemble their products to be sold in the Indian market, said Piyush Goyal. India is looking at establishing fair and equitable trade relationships with countries to ensure that Indian businesses in foreign countries are treated at par with how foreign businesses are treated in India, commerce and industry minister Piyush Goyal said on Monday. “The world works with equal terms, there has to be an equal and fair and reciprocal arrangement,” Goyal said at the FICCI Virtual FMCG Supply Chain Expo. If other countries are desirous of the Indian market, of the 1.3 billion Indian market opportunity, they want to provide services to meet the country’s needs, they also have to give India and Indian businesses equal opportunity to engage in their countries, Goyal said. India is not an “assembly workshop” for foreign companies to import and then assemble their products to be sold in the Indian market, and as companies look at setting up business in the country, the government will look at the value addition they are making, Goyal said. “I don’t believe that India is a weak-league nation that is going to be only an assembly workshop for companies to bring completely knocked down kits or semi knocked down kits and assemble them in India and sell them to their Indian partners,” he added. When foreign companies set up industries and factories in India, the government will have to look at the need to import, and whether in a gradual and phased manner these companies are looking at bringing products to India, producing and value-adding to India and not just remaining “screw-driver technology assembly workshops,” Goyal said. Goyal said that the Indian government invites investments, and is all for free ow of goods, but it has to be reciprocal. Talking to criticism around the government’s recent decisions to promote self-reliant India, Goyal said, “what we are trying to do is, make sure that my domestic manufacturers, my domestic industry, our stakeholders get a fairplay.” Goyal said that India’s balance of payments this year is going to be “very very strong” on the back of significant improvement in exports and a fall in imports. He said that green shoots are visible in the economy and a good turnaround of exports has also been registered. “We are in July at about 91 per cent export level of July 2019 gures. Imports are still at about 70-71 per cent level of July 2019. So, broadly our balance of payments this year is going to be very very strong, which is why we feel condent that Indian industry will see opportunities for themselves, will see opportunities of growth,” Goyal said.
Source: Economic Times
While Goyal didn’t name any country, a fair chunk of his critical comments about dumping of substandard products in India, growing absence of trade transparency and reciprocity by some nations, etc, seems directed at China with which India ran a massive trade deficit of $48 billion in FY20. Commerce and industry minister Piyush Goyal on Monday rejected the criticism of the government’s decision to make licensing requirements mandatory for imports of certain products, including colour TV and tyres, highlighting that such moves were necessitated by the absence of “fair and reciprocal” global trade practices. He also asked foreign investors that have set up shop here to not seek unrestricted (dutyfree) imports of components for mere assembly in India “as a matter of right”. “If they have invested in India and they want to engage with the Indian market, I believe they should look at indigenising, particularly those items where India has capabilities. We don’t get excited only by an investment which is brought into India to capture the Indian market, to save some import duties on finished products, and …to use India to only assemble those components,” he said at a Ficci event. “I think they should, in a phased manner, look at sourcing from India, developing their products in India and then encashing a large business opportunity that 1.3 billion Indians are offering. We invite businesses, we are encouraging investments, we want to allow free flow of goods but it has to be reciprocal. It can’t be one sided,” Goyal said. Countering the criticism that India is turning more protectionist, Goyal said such a perception “shocks” him, as trade is not being undertaken among equals. “What we are trying to do is make sure our domestic industry gets a fair play,” he said. Explaining his point, Goyal asked: “How can it be that one country does not allow tyres to be exported to them but wants free imports of tyres from that country into India? There has to be equal, fair and reciprocal arrangement. If other countries are desirous of 1.3 billion- Indian market opportunity, they will also have to give our country’s businesses equal opportunity to engage in their countries. They can’t put overarching technical barriers or overarching regulations on our products and then complain if we put any standards in our country.” India in June made it mandatory for importers to seek permits for purchasing new pneumatic tyres. The move was seen as targeting imports from China, which makes up for a large chunk of these imports (about $370 million) into India. Subsequently, media reports suggested that German automakers had sought help from Germany’s envoy to resolve the issue of tyre imports. Expressing surprise at some EU countries’ objection to India’s standard specifications for tyre imports, the commerce minister said he is “amazed” by this. “I can list out 5,000 items on which technical standards are being put in their countries. Why should India not have the right to put technical standards?” While Goyal didn’t name any country, a fair chunk of his critical comments about dumping of substandard products in India, growing absence of trade transparency and reciprocity by some nations, etc, seems directed at China with which India ran a massive trade deficit of $48 billion in FY20. The minister also remained critical of the criticism of the government’s push for localisation. “All these years, everybody used to say support our industry. They used to say how can we compete with countries that provide hidden subsidies? How can we compete when their interest rates are so low? How can we compete when we have a democratic and transparent way of working, while some others don’t? But when we do something enabling, we find some criticism. This is not business among equals.”
Source: Financial Express
"We are in July at about 91 per cent export level of July 2019 gures. Imports are still at about 70-71 per cent level of July 2019. So, broadly our balance of payments this year is going to be very very strong, which is why we feel condent that Indian industry will see opportunities for themselves," he said at a Ficci webinar. India's balance of payments this year is going to be "very very strong" on the back of signicant improvement in eports and a fall in imports, Commerce and Industry Minister Piyush Goyal said on Monday. He said that "good" green shoots are visible in the economy and exports have shown a "good" turnaround. We are in July at about 91 per cent export level of July 2019 gures. Imports are still at about 70-71 per cent level of July 2019. So, broadly our balance of payments this year is going to be very very strong, which is why we feel condent that Indian industry will see opportunities for themselves, will see opportunities of growth," he said at a Ficci webinar. India's exports fell for the fourth straight month in June as shipments of key segments like petroleum and textiles declined but the country's trade turned surplus for the rest time in 18 years as imports dropped by a steeper 47.59 per cent. The country posted a trade surplus of USD 0.79 billion in June.
Source: Economic Times
The index of industrial production (IIP) contracted by 16.6 per cent in June compared to 33.8 per cent in May and a record 57.6 per cent slide in April. This is likely to pull down first-quarter gross domestic product of 2020-21, the data for which would be released this month-end. The conditional relaxation in industrial activity leading to a graded pick-up was evident from the numbers. Contraction in industrial production slowed further in June, with industrial production growing 23.9 per cent compared to May, seasonally adjusted. Goldman Sachs said the sequential pick-up was supported by all sub-indices. The slowing of contraction was also in line with core sector output which also showed signs of recovering as its contraction slowed too in June. The eight core sector industries together form 40 per cent of the IIP. Manufacturing activity improved the sharpest in June with contraction in output coming down to 17.1 per cent from 38.4 per cent in May while contraction in mining and electricity recovered only marginally. However, other experts cautioned against celebrating just yet. “The pace of contraction of various lead indicators, such as the output of Coal India, electricity consumption, and GST e-way bills narrowed to single digits in July 2020, which suggests that de-growth in the IIP would also shrink in that month. Nevertheless, we continue to caution that pent-up demand contributed to the improved performance of certain categories of manufacturing in June-July 2020, which may not sustain in August 2020 due to the extension of localised lockdowns in various states,” said Aditi Nayar, principal economist, ICRA. Devendra Pant, chief economist at India Ratings, said sequential improvement in June was on expected lines. "However, the economic activities have not improved much in July and August and does not give confidence for quick recovery," he said. Ind-Ra expected all the four quarters of 2020-21 to record contraction in GDP. "We continue to expect the economy to experience a sharp contraction during April-June quarter, as economic recovery fails to gain speed due to local lockdowns imposed by various states through July," said Rahul Bajoria at Barclays. After releasing only the index numbers for the IIP for the previous two months, the government on Tuesday announced the total data for June but cautioned that comparing the IIP in the pandemic months with those preceding Covid-19 would not be appropriate. On traditional year-on-year, all the components of the IIP — mining, manufacturing, and electricity — saw contraction, albeit by a smaller magnitude, than in the previous month. Manufacturing, which accounts for 78 per cent of the IIP, saw output fall by 17.1 per cent in June, less than half of the 38.4 per cent contraction in May. Inherent stress in the sector had become visible since March, but came out at full blast in April, when output had fallen by 67.1 per cent. All but two of the 23 sub-sectors ithin manufacturing posted a year-on-year contraction. Buoyed by drug exports and orders for sanitizers and protective gear, pharmaceutical production rang up a 34 per cent rise, hugely bettering its 2.45 per cent growth in the previous month. Tobacco production, the other sub-sector in the positive zone, rose by 4.5 per cent. The capital goods segment, which denotes investment in industry, contracted by 36.9 per cent in June. It had been hit hard with declines of 64.3 per cent and over 90 per cent, respectively, in the previous months. With this, production in the category saw its 17th consecutive monthly decline. Policymakers fear that as the government has exhausted its options of opening up even more sectors by easing foreign direct investment flows, capital goods production might take time to recover. Consumer durables remained a drag among user-based industries, recording a 35.5 per cent fall, though recovering from May’s 68.5 per contraction. The data from the beginning of the year showed that the production of consumer durables was falling even before the Covid-19 crisis, with June being the 11th month of contraction. Consumer non-durables, which include many essential items, again entered the growth charts in June, rising 14 per cent. It had seen the narrowest contraction of 11.7 per cent in May.
Source: Business Standard
In the last few months, the government has announced production-linked incentives for manufacturing of electronics, medical devices and pharmaceutical products while putting restrictions on imports of Chinese products. India's government plans to promote the manufacturing of selected products, especially lines in which China enjoys a big share in the global market, as part of efforts to reduce imports and push exports, a cabinet minister said on Monday. The government aims to attract foreign investments in pre-identified areas, promote joint ventures and support local businesses to expand India's share of global markets, Nitin Gadkari, India's minister for MSME (micro, small and medium enterprises), told a virtual conference. "There is an opportunity for India in sectors where China enjoys a big share in the global market," he said. In the last few months, the government has announced production linked incentives for manufacturing of electronics, medical devices and pharmaceutical products while putting restrictions on imports of Chinese products.
Source: Economic Times
The government is considering increasing customs duty on close to 20 product segments including laptops, cameras, textiles and aluminum goods, while placing some steel items under import licensing, as part of its latest move to restrict imports from China. The issue is now before the finance ministry, which had earlier spurned the proposal from the commerce and industry ministry, sources told TOI. A senior officer said that the revenue department is expected to move ahead by notifying some tariff hikes. “It is not a China-specific duty action but an overall increase in customs duty, although the idea is to focus on products which are coming in large volumes from China,” another officer explained. In recent weeks, the government has been wary of duty hikes as it has noticed diversion of imports from countries with which India has free trade agreements, especially Asean members such as Vietnam or Thailand. In fact, the perceived inaction by the revenue department has prompted the commerce department to impose curbs such import licensing of tyres and TV sets, which many in the government believe is turning the clock back by a few decades. Some steel products are being considered for import restrictions by the Directorate General of Foreign Trade, which is the licensing agency. Apart from some of the import restrictions, the Narendra Modi administration has also banned 59 Chinese apps, while shifting foreign direct investment (FDI) from China-based entities to the approval route instead of the earlier system which only required companies to inform the Reserve Bank of India post-investment. Further, a registration system has been mandated for Chinese suppliers and contractors who wish to participate in government contracts. Government officials said that the moves are meant to clearly signal India’s displeasure at the recent intrusion in Ladakh, which has also resulted in the death of 20 Army personnel. “Even if it means higher costs, we can’t be doing business with them,” an officer said. Separately, the government is working on promoting domestic manufacturing by offering incentives to mobile manufacturers and pharma companies producing bulk drugs, with a few more sectors expected to be added in the coming weeks. India has a massive trade deficit with China, which was estimated at $48.7 billion in 2019- 20, the lowest in five years. The government has accused China of not responding to its requests to allow more exports from India, resulting in higher deficit.
Source: Times of India
The government on Tuesday tightened norms for import of certain chemicals, which have the potential to adversely affect the environment. The conditions have been tightened for about 18 chemicals, including carbon tetrachloride, chlorodifluoromethane and dichlorotetrafluoroethane, the policy conditions for imports of various chemicals," it said. The Directorate added that importers of the certain chemicals have to submit a copy of the bill of entry within 30 days to the ozone cell in the Ministry of Environment, Forest and Climate Change. It added that the import of hydrochlorofluorocarbon-141b is prohibited except for feedstock application. This chemical is used by foam manufacturing enterprises and it is one of the most potent ozone-depleting chemicals after chlorofluorocarbons. Carbon tetrachloride is used in some industries and dry-cleaning units.
Source: Business Standard
The pace of economic recovery improved during the previous week on account of divergent trends in indicators like mobility and employment, according to a Nomura note on Monday. The Nomura India Business Resumption Index (NIBRI) increased to 71.8 in the week ending August 9, after being stuck around the 70 mark for the past three weeks. NIBRI is a weekly tracker of the pace at which economic activity normalises. According to the note, while Google’s retail and recreation mobility index and Apple’s driving index picked up incrementally, Google’s workplace mobility worsened, the note said. Similarly, the labour participation rate inched up to 40.6% compared to 40.5% last week but the unemployment rate rose to 8.7% from 7.2% the week earlier, it said. Power demand also contracted by about 0.8%, which was an improvement for -2% recorded in the previous week. However, “Overall, the NIBRI remains largely stagnant at nearly ~30pp (percentage points) below pre-pandemic levels,” Nomura said. The data available for July so far suggested an uneven recovery which largely reflected pent up demand, it said, adding rural demand performed better comparatively. “However, a second wave of COVID-19 cases, combined with a ‘rolling wave’ in traditionally safer states (in the south and the east), increase risks of protracted quasi-lockdown measures and tempering of sequential improvement in activity once the post-lockdown momentum ebbs,” the note said. The weekly tracker has shown a rather bumpy recovery path as against the expected smooth upward curve. After hitting a lockdown low of about 45 at the end of April, the NIBRI made a sharp recovery by mid-June to 70.5. However, the recovery lost its momentum as multiple states imposed fresh lockdowns in July. This was reflected in the NIBRI dropping to 66.8 in the week ending July 12 before stagnating at the 70 mark. Nomura estimated a 5.2% contraction for India’s growth during the ongoing scale.
Source: Economic Times
The government plans to link GSTR 1, the form used to ll outward supplies, with GSTR 3B, used to ll returns summary, which will reduce mismatch of information through autopopulation. The linking would also lead to reduced cases of input tax credit mismatch, unintended errors and also prevent tax evasion. Smooth execution sans technical glitches is critical for the revamped and simplied goods and service ta (GST) return ling system, said experts. They batted for adequate testing of the new facility by GST Network before its proposed roll out in September. Rollout of GST in July, 2017 subsequently saw several glitches in return ling and multiple deferments of deadlines. “Businesses would expect that adequate sand box testing is done by GSTN and there are no perfunctory changes, which ultimately impact their current compliance set-up,” said Harpreet Singh, partner for indirect taxes at KPMG India The government plans to link GSTR 1, the form used to ll outward supplies, with GSTR 3B, used to ll returns summary, which will reduce mismatch of information through auto-population. The linking would also lead to reduced cases of input tax credit mismatch, unintended errors and also prevent tax evasion. A new form GSTR 2B will be introduced as a statement for taxpayers providing details on available input tax credit and ineligible credit. Quarterly ling facility of GSTR 3B for taxpayers will less than Rs 5 crore annual turnover, is also in the pipeline. "Linkages of the various pieces of information led by taxpayers in order to minimize manual data interventions by taxpayers would assist all businesses,” said MS Mani, partner at Deloitte India. “...issues related to downloading of returns led and re-credit in case of refund rejections should be looked into to improve the system further,” said Pratik Jain, partner at PwC India. Insiders said that the government decided to revamp the existing system, instead of developing a new one, to ensure stability for taxpayers that have been complaining of glitches and errors in the system. The GST Council has also cautioned GSTN of beeng up the system to reduce the number of complaints. Experts added that if a new system was to be set up, it could have lead to changes in ERP systems, which would mean additional cost of compliance for taxpayers.
Source: Economic Times
In a statement, the government said the new multi-faceted capability center to be set up in the state titled ‘YSR AP One’ will seek to offer support services to the new units on par with advanced countries. The specialized services include entrepreneurship facilitation, sales support and MSME (micro, small and medium enterprises) revitalization. Andhra Pradesh on Monday announced a new industrial development policy which seeks to other scale incentives and interventions across infrastructure, ease of doing business, skill development, and business enablement, apart from setting up a multi-faceted capability center to other support services to the units. In a statement, the government said the new multi-faceted capability center to be set up in the state titled ‘YSR AP One’ will seek to other support services to the new units on par with advanced countries. The specialized services include entrepreneurship facilitation, sales support and MSME (micro, small and medium enterprises) revitalization. The notable interventions under the new industrial development policy for 2020-23 include complete zoning and preclearance of industrial land in the state, setting up of MSME parks with plug and play facilities. In a bid to further enhance ease of doing business, the AP government proposes to provide deemed approval with a grace period of three years for all green category MSMEs. The government also proposed to establish 30 skill centers and 2 skilling universities, where global immersion programs will be bothered to provide global exposure to top talent in the state. The key scale incentives proposed under the new policy for micro and small scale enterprises include 100% reimbursement of stamp duty, power subsidy of Re 1/unit, reimbursement of 100% of net SGST, 15% investment subsidy, and interest subsidy up to 3%. For medium, large and mega industries, net SGST reimbursement linked to employment generation was proposed. The government said the new industrial policy also lays down additional incentives for units owned by special category and women entrepreneurs. Andhra’s industries minister Mekapati Gowtham Reddy said the new policy was aimed at ensuring that relationship between the state government and industries should be that of partnership and not transactional. “We are committed to not just welcome units to state with a red carpet, but handhold and support them in every aspect of the business so that they can realize their full potential,” said Reddy. The new policy emphasizes putting equal focus on supporting existing units along with facilitating new units, ensuring balanced growth across regions and communities, and reducing the upfront cost and risk of doing business, said the government in its statement. The new policy has identified 10 thrust sectors including food processing, textiles, pharma and biotechnology, electronics, defence and aerospace, leather and footwear, toys and furniture, petrochemical and allied, automobiles, machinery, precision equipment, and mineral-based industries.
Source: Economic Times
Kenya and the United States recently resumed trade pact talks after it was stalled for several weeks. The talks formally kicked off on July 8 but were stalled due to COVID-19 concerns among the team. The first round of the talks is expected to be concluded by August 14. It may take up to two years for a full free trade agreement (FTA) with the United States, said a top Kenyan official. Industrialisation, trade and enterprise development cabinet secretary Betty Maina said Kenya is keen to tap at least 5 per cent of the US market, which has the potential to earn the country more than Sh2 trillion in annual export revenues. Last year, the country sold about $600 million (Sh64.7billion) worth of goods to the United States, mainly textile and apparel, tea, coffee, fish products and nuts. The FTA seeks to ensure fair, balanced, and reciprocal trade between the two countries, increase transparency in import and export licensing procedures, and secure comprehensive duty-free market access for each country's products, according to a Kenyan newspaper report. The Kenyan government is pushing to secure a free trade pact ahead of the lapse of the African Growth and Opportunity Act (AGOA) in 2025, which eliminates import tariffs on goods from eligible African nations. More than 70 percent of Kenya's exports are dutyfree under AGOA. The two countries also seek to develop rules of origin that ensure that the benefits of the agreement go to products genuinely made in the United States and Kenya. The Kenyan government has set up a technical support team of 90 experts to help with the negotiation process. The Kenya-US deal has however been critisised by a section of African countries and the East African Community (EAC) bloc, arguing that it undermines the ongoing implementation of the African Continental Free Trade Area (AfCFTA). The continental deal is aimed at accelerating intra-African trade and boosting Africa's trading position in the global market, by strengthening Africa's common voice and policy space in global trade negotiations. Maina, however, affirmed that the talks between Kenya and US will not undermine the country's previous agreements with regional and continental trading blocks.
Source: Fibre2Fashion
Shipments of listed products in fiscal 2019-20 plunged 18.65 percent year-on-year, according to official data. Nepal lost nearly Rs7 billion in exports of high value products in the last fiscal year as trade restrictions triggered by the pandemic strangled international commerce. Shipments of listed or high value products in fiscal 2019-20 that ended mid-July plunged 18.65 percent year-on-year to Rs30.11 billion, according to the statistics of the Trade and Export Promotion Centre. “Orders from buyers in major international markets like India, the US and Europe fell sharply due to global trade and transport restrictions,” said Sharad Bikram Rana, executive director of the centre. The world is still occupied with controlling the virus outbreak, and Nepal’s trade could suffer further, he said. Trade analysts say that it may take some time for exports to bounce back as domestic production has also declined. Rana said they were working to diversify from traditional markets. The government has brought an 'export house' policy targeting micro, small and medium entrepreneurs to promote local products, he said. Under this policy, the centre will build the capacity of micro, small and medium entrepreneurs, and offer a 5 percent cash incentive to encourage production of exportable goods, he told the Post. The export house will link micro, small and medium entrepreneurs to the international market by creating a pool of entrepreneurs engaged in producing exportable goods. “But before the scheme can be implemented, the pandemic needs to subside here and in the potential export destinations,” he said. Agro-based production is likely to increase with migrant workers returning from abroad, and the government has arranged to provide subsidised loans to small businesses through the monetary policy, said Rana. Besides medicine and aromatic plants, exports of products listed in the Nepal Trade Integration Strategy like large cardamom, pashmina, tea, ginger, fabric, textile, yarn and rope, carpet and footwear dropped during the last fiscal year. Large cardamom shipments declined by 6.19 percent to Rs4 billion from Rs4.28 billion. Nirmal Bhattarai, immediate past president of the Large Cardamom Entrepreneurs Association of Nepal, said that the lockdown occurred during the main export season which lasts from mid-March to mid-April, resulting in a steep fall in shipments. Bhattarai said that with the easing of the lockdown, exports to India had gradually picked up. Pashmina shipments decreased by 9.79 percent to Rs2.26 billion from Rs2.51 billion. Dhana Prasad Lamichhane, secretary of the Nepal Pashmina Industries Association, said that lack of new designs, training and marketing, and the high cost of imported raw materials were major challenges. “Lack of skilled manpower at home forces manufacturers to hire workers from India and Bangladesh which pushes up the cost of production,” he said. "Nepali pashmina cannot compete in the international market as products from other countries have better designs," he said, adding bank interest was also high. Tea exports saw a 13.14 percent decline to Rs2.78 billion from Rs3.20 billion. Deepak Khanal, director and spokesperson for the National Tea and Coffee Development Board, said exports dropped mainly due to an increase in domestic consumption of orthodox tea in recent years, inability to meet the latest tea standards set by the international market, and lack of branding. In the past, buyers had trust in the products, but now they have started accepting verified production as per the latest standards, he said. Textile, fabrics, yarn and rope shipments saw a steep drop of 25 percent to Rs12 billion in the last fiscal year from Rs16.20 billion in the previous fiscal year. Shailendra Lal Pradhan, president of the Nepal Textile Industries Association, said the government removed the VAT waiver provided to textiles by the budget statement for fiscal 2018-19, and a cabinet meeting in mid-November decided to provide a 5 percent waiver on bank interest, but this has not been implemented. Pradhan said that the government's unfavourable policy has discouraged the domestic textile industry. According to him, only 25-30 percent of the textile factories are running currently, and production has declined as there is no demand from the international market. Carpet shipments fell by 17.32 percent to Rs6.16 billion in the last fiscal from Rs7.45 billion in the previous fiscal year. Hari Bahadur Thakuri, senior vice-president of the Nepal Carpet Manufacturers and Exporters Association, said that the cost of production in Nepal is higher by 25-30 percent compared to India and China, due to which Nepali products are being priced out of the international market. Ginger exports declined by 14.94 percent to Rs435 million. The export of footwear saw a drop of 16.72 percent to Rs753 million from Rs905 million. Krishna Prasad Phuyal, president of the Footwear Manufacturers of Nepal, said that the Indian government’s decision to enforce policies to promote its own footwear brands led to a drop in imported products. Leather shipments saw a sharp decline of 66.65 percent to Rs164 million from Rs494 million. The export of medicinal and aromatic plants increased by 5.31 percent to Rs1.51 billion in the last fiscal year from Rs1.43 billion in the previous fiscal. Krishana Prasain is a business reporter for The Kathmandu Post covering markets. Before joining The Kathmandu Post in 2018, she spent 3 years in New Business Age magazine covering business.
Source: Kathmandu Post
N9’s special offerings provide antiviral performance against the coronavirus bringing proven hygiene function and material protection to the textile industry N9 World Technologies, India signed an agreement with Consolidated Pathways Inc., USA to incorporate unique Swiss antiviral and antimicrobial technologies into sustainable, cost-effective custom blends for the textile industry. N9’s special offerings provide antiviral performance against the coronavirus bringing proven hygiene function and material protection to the textile industry, says a press release. Based in Midland, Michigan, USA, Consolidated Pathways is a brand and technical representative for Sanitized products and supports the advancement of the trusted Sanitized quality seal. This partnership will now allow both companies to offer unique performance benefit platforms to the global textile industry. This new antiviral technology will be marketed under the umbrella brand VIROBAN and is very effective against the enveloped and capsid viruses. It is proven to reduce infective viruses by 99.99% when tested under ISO 18184, and the polymers are designed to have high compatibility with textiles and be safe on human skin. VIROBAN N9 XTS-18 creates a highly cationic charge density on the textile surface, deactivating the spread of the virus and bacteria on contact. The technology is designed to act quickly to prevent the transmission of the virus. 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. Vikram Rao, managing director of N9 World Technologies said, “With the onslaught of the pandemic, consumers are increasingly seeking protection and safety in almost everything they breathe, touch or wear. With this partnership, N9 World Technologies is now a ‘One Stop Shop’ for global brands and retailers who are seeking innovative and sustainable specialty finishes for their textile products.” James Krueger, CEO of Consolidated Pathways added, “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.”
Source: Dhaka Tribune
Cotton Council International (CCI) promoted US cotton at ‘Colombiamoda Digital 2020’, the first digital trade show in Latin America, from July 27-August 2. The fair had 455 exhibitors & 3,200 buyers of which 78 per cent were domestic buyers. Textile industry buyers visited the online COTTON USA stand which emphasised importance of US Cotton Trust Protocol. ‘Colombiamoda Digital 2020’was the 31st version of Colombiamoda and to reinforce awareness among brands and retailers, CCI also held a webinar on the US Cotton Trust Protocol which attracted 73 guests. CCI also had an online fashion show of US cotton-rich garments made by COTTON USA licensees from Latin America. The show was set in a digital cotton field using real models. Some 1,900 people watched the show on the Colombiamoda website and on COTTON USA’s social media. The regional TV channel Teleantioquia also broadcasted the show.
Source: Fibre2Fashion
