Ninety-eight per cent of exporters, especially MSMEs will benefit under Merchandise Exports from India Scheme (MEIS) with reward cap of Rs. 2 crore/ Importer Exporter Code from September 1 to December 2020, said Piyush Goyal, Union Minister of Railways, Commerce and Industry. "98% of exporters esp MSMEs will benefit under Merchandise Exports from India Scheme (MEIS) with reward cap of Rs. 2 Cr/ Importer Exporter Code from 1st Sep to 31 Dec 2020. This will remove uncertainty and protect genuine exporters while ensuring Make in India-Make for the World," Goyal tweeted. A notification issued by the Ministry of Commerce and Industry stated, "In exercise of the powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with Para 1.02 of the Foreign Trade Policy, 2015-20 and the enabling para 3.13 of the FTP, the Central Government hereby makes the following amendments in the Foreign Trade Police 2015-20 with immediate effect: Two new paragraphs, 3.04A and 3.04B are inserted in the Foreign Trade Policy as below:
3.04 A: The total reward which may be granted to an IEC holder under the Merchandise Exports from India Scheme (MEIS) shall not exceed Rs 2 crore per IEC on exports made in the period September 1, 2020, to December 31, 2020. Any IEC holder who has not made any export with LEO date during the period September 1, 2019 to December August 31, 2020 or any new IEC obtained on or after September 1, 2020 would not be eligible for submitting any claim for benefits under MEIS for exports made with effect from September 1, 2020.The aforesaid ceiling may be subject to a further downward revision to ensure that the total claim under the Scheme for the period (September 1, 2020 to December 31, 2020) does not exceed the allocation prescribed by the Government, which is Rs 5,000 crore. 3.04 B: Benefits under MEIS shall not be available for exports made with effect from January 1, 2021.
Source: Business Standard
Senior central government officials held a meeting on Tuesday with finance secretaries of states to clarify the two borrowing options given to them to make up for the goods and services tax (GST) compensation shortfall, Business Standard has learnt. The states were informed that if they take the option of borrowing Rs 97,000 crore under a special window, they will still get Rs 2.35 trillion minus Rs 97,000 crore from the compensation cess. The states were also told that in case of the second option of borrowing Rs 2.35 trillion through state development loans, the states will be given an unconditional borrowing room of 0.5 per cent over and above the borrowing limit increase given to them earlier. The meeting, held through video conference, was not attended by the political leadership of the Centre or any of the states. “We are not telling them which option to take. That is a decision they will make. But we have given them a realistic picture. The second choice involves a higher general government debt,” a top government official said. The official admitted that there had been miscommunication between the Centre and states in the GST Council meeting last week. “When two people have an interest in any financial question, there can never be great bonhomie. That basic dispute is there. But there is also much more noise than reality,” the official said. Two days after the August 27 GST Council meeting, the finance ministry, in a letter to states, shared details of the two options, which states will examine over seven days. The Centre gave states two options at the GST Council meeting for compensation: They can either borrow up to Rs 97,000 crore, which is a shortfall arising out of GST implementation or the entire Rs 2.35 trillion, which accounts for the Covid-19 situation. States, if they take up the first option, will have to borrow Rs 97,000 crore through issue of debt under a special window coordinated by the ministry of finance. In case of the second option, the entire shortfall of Rs 2.35 trillion may be borrowed by states through issue of market debt. The official said there were a number of things that states had not understood. These were clarified during Tuesday’s meeting of bureaucrats. The official added, and it was also clarified in the letter to states earlier, that on the first option, the Centre will subsidise and make good the yield difference. “The yield will be subsidised, if necessary, because this paper will be backed by earmarked revenue collected through the central cess. We expect cost of borrowings to be reasonable. If they are higher than state development loan yields, we will subsidise them.” Central GST collections fell to Rs 34,122 crore in August, against Rs 39,467 crore in July. State GST collections stood at Rs 35,714 crore, lower than Rs 40,,256 crore during the previous month. Integrated GST mop-up was also lower at Rs 42,264 crore, compared to Rs 42,592 crore in the previous month. Among large states, a sharp decline in collections was seen in Maharashtra, Karnataka, and Tamil Nadu at 13 per cent, 11 per cent, and 12 per cent, respectively. Delhi saw an 18 per cent fall. However, a marginal rise was recorded in Rajasthan and UP, whereas a slight drop was reported by Haryana and Gujarat. Pratik Jain, partner and leader (indirect tax), PwC India, said it was relevant to note that the percentage drop was higher for smaller states. As things open up gradually, collections are likely to be rise progressively. Abhishek Jain, tax partner at EY, said a significant part of the dip was attributable to imports, which have declined owing to the impact of coronavirus on global trade.M S Mani, partner at Deloitte India, said that in the backdrop of disappointing GDP data for Q1, the GST figures indicate that collections are in recovery mode. “The fact that GST collections on domestic transactions were just 8 per cent lower YoY indicates a revival. The sharp drop of 23 per cent in import GST could be on account of various import-substitution measures. It is expected that collections in the coming months will enable it to reach last year’s levels in a month or two,” he added.
Source: Business Standard
The global economy faces challenging times ahead. Even before Covid-19 brought the world to an unexpected standstill, global economic prospects seemed in a precarious state as debt-fuelled growth of the past decade was reaching its limits in developed and developing countries alike. The coronavirus pandemic has accelerated and accentuated the inevitable crisis. In light of these trends, the need for export-led growth becomes more pertinent than ever. Even for a country as large as India that possesses an expansive domestic market, high growth can only be sustained with an export-oriented policy focus. The government has made huge strides in facilitating an enabling business ecosystem through liberalisation of Foreign Direct Investment, ratifying WTO's Trade Facilitation Agreement, and other such reforms since 2014, which has improved India’s integration into the global economy. To further enhance India’s export preparedness to meet the needs of the post-Covid global economy, the Export Preparedness Index (EPI) 2020 examines the export ecosystem of Indian states and union territories. The study recognises the important role of states in enhancing India’s share in the global economy. To elaborate, a better domestic capability would enable India to compete with other emerging economies to become a viable supplier in the global market, which requires shifting the focus to the states. The EPI 2020 therefore aims to understand export preparedness at the regional level. It recognises that policy measures at the national level are not enough to strengthen exports and that efforts should begin with improving competition in the domestic market. Further, improving the export competitiveness of states can also mitigate regional disparities through export-led growth and the consequent rise in standard of living. It is corroborated by the Economic Survey 2017-18, that shows that 70 per cent of India’s export has been dominated by five states — Maharashtra, Gujarat, Karnataka, Tamil Nadu and Telangana. The Economic Survey established that states which engage with the world markets as well as with the other states within the country are richer. Thus, the EPI 2020 sets out to assess the readiness of the states in terms of their export potential across four pillars, eleven sub-pillars, and fifty-five indicators. The four broad pillars are Policy, Business Ecosystem, Export Ecosystem and Export Performance. The central idea is to recognise the unique strengths and competitive advantages of each state, and to mould policies and practices accordingly. Further, a state may perform exceptionally well in one pillar and poorly in the other, which makes blanket initiatives insufficient in addressing the diverse issue. Efforts should be made at the grassroots as well to drive an export-led growth. India’s average score on the EPI is 39 out of 100, which shows the tremendous potential India holds towards transforming into an export-based super economy. In the state-wise assessment, Policy and Business Ecosystem are the highest-scoring pillars, with the Export Ecosystem being the least-scoring pillar. This implies India has a conducive business environment and favourable policies in place but they are not translating into a strong export ecosystem. Some of the drawbacks obstructing export preparedness in many states are poor trade support, gaps in export infrastructure, basic trade support, lack of access to nancial facility and low export credit. Delving further into the statewise analysis shows that no state has been able to score well on every pillar, barring exceptions like Gujarat and Maharashtra whose scores do not show much disparity across pillars. In this way, many states’ export potential and competitive advantages remain untapped. There is a lot of room for improvement R&D infrastructure across the country. The index shows that this is one of the biggest challenges faced by the country as the regional disparities in terms of R&D infrastructure are high. In the context of the evolving nature of globalization that is likely to reward high-quality products and innovation more than ever before, India’s cost competitiveness may not be suicient to establish itself in the global economy, and gradual improvement in R&D would be greatly rewarding in the long run. The rise in the use of digital technologies and Articial Intelligence (AI) in several industries, necessitated by the pandemic has come as a game-changer. The move has accelerated the adoption of disruptive business models and innovative solutions, thus rendering traditional business models and manufacturing processes obsolete sooner than expected. Therefore, in the post-Covid world, India needs to create its own niche in the global market. Thus, it is essential to tap into the capabilities of Indian states by plugging in the gaps in policy and infrastructure. At the same time, it is also necessary that the more developed states expand their focus towards improving R&D infrastructure, with the view to create that niche. It is because R&D plays a significant role in improving the quality of products to match up to the international standards, and enables greater innovation. As India begins on its journey of self-reliance and export expansion in these tumultuous times, the states need to take on the reins and adapt their eorts with the emerging trends in globalisation. The EPI 2020 can serve as a guide to the subnational governments in creating an enabling framework and removing the bottlenecks that alict their respective export sectors.
Source: Economic Times
Major rating agencies have raised their projections of the contraction of India’s economy in the current fiscal year, with some anticipating a double-digit fall after gross domestic product (GDP) declined 23.9 per cent in April-June. They suggested the government come up with fiscal stimuli to spur demand. However, some doubted if the government would do so, given the pressure on the fiscal deficit owing to declining tax collection and low GDP. Nomura revised its projection for GDP fall to 10.8 per cent against the 6.1 per cent it said earlier. “Looking ahead, high ...
Source: Business Standard
Goods and services tax (GST) collections slumped to a three-month low in August, and came in 12 per cent lower year-on-year (YoY), indicating slower recovery in economic activity. However, compensation cess collections rose for the first time in five months, and 6 per cent YoY, amid the tussle between the Centre and states. The overall mop-up remained well below the Rs 1-trillion mark for the sixth straight month owing to the pandemic, even as unlocking began in June. GST collections stood at Rs 86,449 crore in August, compared to Rs 87,422 crore in July, according to finance ministry data. It was at 88 per cent of August 2019 collections. A large portion of the fall could be attributed to imports, which were down 23 per cent YoY, while domestic transactions were down just 8 per cent YoY. “During the month, revenues from imports were at 77 per cent and revenues from domestic transactions (including import of services) at 92 per cent of revenues from these sources during the same month last year,” the ministry of finance said in an official release. However, in July, revenues from domestic transactions had touched 96 per cent of last year’s levels, with imports at 84 per cent of the same. “It may be noted that taxpayers with turnover below Rs 5 crore continue to enjoy relaxation in filing of returns till September,” the ministry explained in the release. In order to improve collections, the government is planning more anti-evasion measures, including e-invoicing for large firms with turnover of Rs 500 crore, from October 1. Compensation cess came in at Rs 7,215 crore in August — 5.7 per cent higher than the Rs 6,822 crore in August 2019. The GST Council is expected to meet in a week to discuss the two options on an alternative compensation mechanism proposed by the Centre. Central GST collections fell to Rs 34,122 crore in August, against Rs 39,467 crore in July. State GST collections stood at Rs 35,714 crore, lower than Rs 40,,256 crore during the previous month. Integrated GST mop-up was also lower at Rs 42,264 crore, compared to Rs 42,592 crore in the previous month. Among large states, a sharp decline in collections was seen in Maharashtra, Karnataka, and Tamil Nadu at 13 per cent, 11 per cent, and 12 per cent, respectively. Delhi saw an 18 per cent fall. However, a marginal rise was recorded in Rajasthan and UP, whereas a slight drop was reported by Haryana and Gujarat. Pratik Jain, partner and leader (indirect tax), PwC India, said it was relevant to note that the percentage drop was higher for smaller states. As things open up gradually, collections are likely to be rise progressively. Abhishek Jain, tax partner at EY, said a significant part of the dip was attributable to imports, which have declined owing to the impact of coronavirus on global trade. M S Mani, partner at Deloitte India, said that in the backdrop of disappointing GDP data for Q1, the GST figures indicate that collections are in recovery mode. “The fact that GST collections on domestic transactions were just 8 per cent lower YoY indicates a revival. The sharp drop of 23 per cent in import GST could be on account of various import-substitution measures. It is expected that collections in the coming months will enable it to reach last year’s levels in a month or two,” he added.
Source: Business Standard
New Delhi: Commerce and industry minister Piyush Goyal on Tuesday said India and the US have agreed to look at finalising an initial trade deal before the Presidential elections in November but otherwise soon after the election, and that it is upto the US to move ahead as India is ready to sign the initial limited trade package. “I just had a conversation with Lightizer that the entire trade package is ready and we can do it before elections…I’m open to signing it tomorrow. I have left it to Bob (US Trade Representative Robert Lighthizer),” Goyal said at a virtual event organised by US-India Strategic Partnership Forum (USISPF). The two sides, as per the minister, have sorted out most issues for the initial trade deal. India and the US have been trying to thrash out a trade package with limited scope since last year amid a plethora of unresolved trade issues. Washington is keen on a deal ahead of its presidential elections in November and had indicated that an initial deal could include restoration of the GSP benefits to India and market access for each other’s agricultural products. New Delhi has demanded exemption from high duties imposed by the US on certain steel and aluminium products and market access for its farm products, while the US has sought market access for its farm and manufacturing and products, medical devices, and lower duties for certain ICT products. “We are continuously in dialogue…Ideally, we could have announced the deal during President (Donald Trump’s) visit in February but then a few commas were being sorted out and then Covid-19 happened. That is when we lost valuable time,” Goyal said, adding that the immediate trade deal will open the doors to starting a dialogue on a large bilateral engagement where “we will have much more elbow room”. The two aim for a free trade agreement in the long run Trade barriers, IPR On the issue of standards, Goyal said that India would have its own quality standards and soon all procurement will be based on Indian standards, like the US does. “The US is the leader in creating non-tariff barriers through standards and Europe has impossible standards which create impediments to free flow of goods and services,” Goyal said. The minister said that India has not used even one-tenth of standards and quality control orders that the EU and the US have, and that has been detrimental to Indian industry as the country landed up with low quality production bases. He said the country is introducing quality control orders on several more products and this exercise will continue. “India will have its own quality standards…Soon all procurement will be based on Indian standards like you (the US) have. It has to be two-way traffic. If other countries have their standards then we will have ours,” Goyal said. On being asked about uniform standards globally, the minister said these have to be realistic because in many cases, there are overarching regulations which create non-tari barriers and gave the example of milk products and pharma, stating it is “impossible to engage with Europe and that hurts our SMEs”. India will have to look at affordability when we provide healthcare. The US and India can partner because we have a huge pharma supply base, provided we can close the chapter on IPRs and stop ever greening of patents. India doesn’t allow ‘evergreening’ of patents, especially in pharma. Section 3(d) of the Patents Act prohibits the grant of ‘evergreening’ patents, which are additional patents for a drug with no therapeutic benefit and serve only to increase the term of patent monopoly. The US has often objected to this regulation.
Source: Economic Times
The Central Board of Indirect taxes and Customs (CBIC) extended the validity of e-way bills till November 30, while extending the due date for certain compliances under customs, central excise and service tax laws till the same date. “Provided that where, any time limit for completion or compliance of any action, by any authority, has been specified in, or prescribed or notified under section 171 of the said Act, which falls during the period from the 20th day of March, 2020 to the 29th day of November, 2020, and where completion or compliance of such action has not been made within such time, then, the time-limit for completion or compliance of such action, shall be extended up to the 30th day of November, 2020,” the Board said in a notification on Tuesday. The extension is valid for e-way bills issued pre-lockdown, the validity of which was subsequently extended several times since the lockdown began in March-end and even after the lockdown was lifted towards the end of May. Easing the validity limit of e-way bills - document needed for transportation of goods of over Rs 50,000 in value - will help industry that is facing labour as well as transportation issues, as several states have imposed mini-lockdowns or weekend lockdowns to control the spread of Covid 19 pandemic. The extension also applies to completion of any proceeding or passing of any order or issuance of any notice, intimation, notification, sanction or approval or such other action, by any authority, commission or tribunal, under the provisions of the GST, IGST and UTGST Acts. The extension is also applied on ling of any appeal, reply or application or furnishing of any report, document, return, statement or such other record. The Board had issued similar guidelines in the past to ease compliance for industry and tax authorities.
Source: Economic Times
India’s record contraction last quarter sets back economic progress by several years and puts PM Narendra Modi’s ambitious targets of doubling the economy’s size to $5 trillion almost out of reach. The 23.9% decline in gross domestic product in the June quarter from a year ago -- the biggest of major economies tracked by Bloomberg -- prompted banks like Nomura Holdings Inc. to downgrade their full-year forecasts for this year to -10.8%. It also shifts the focus back to the government and central bank on what steps can be taken to spur growth. That’s the impact on India’s long-term growth? In the past, India has managed growth rates of more than 8%, but that’s steadily eased in recent years following a crisis among shadow banks that hit lending and consumption in the economy. The economic damage now caused by the Covid-19 pandemic will last well beyond the current outbreak. Banks are cautious about lending, fearing a jump in bad loans, while businesses have curbed borrowing and investments, dragging down demand. Falling Investments Pranjul Bhandari, chief India economist at HSBC Holdings Plc in Mumbai, sees the pandemic leaving behind an “economic scar,” with potential growth falling to 5% from 6% before the virus outbreak. Deutsche Bank AG’s chief India economist, Kaushik Das estimates the potential growth rate could drop to 5.5%-6% from about 6.5%-7% earlier, though foreign inflows could continue as nominal GDP growth recovers toward double-digits.
Source: Economic Times
Commerce Minister Piyush Goyal on Tuesday said India is ready to sign an initial trade agreement with the US and he has left it to his American counterpart to take the final call on its timing. He also said India is in continuous dialogue with the US on the agreement. Goyal said he and US Trade Representative (USTR) Robert Lighthizer have sorted out most of the issues around this initial trade pact. “I just had a conversation with Ambassador Lighthizer and we both agreed that we can look at doing it before the (US) elections also but otherwise soon after the election “the entire package is near ready and can be finalised at any time that the local political situation in the US permits them to. I am open to signing up tomorrow what we have agreed upon and I have left it to Bob to take a final call,” he said. The minister made the remarks during a conversation with Ajay Banga, US-India Strategic Partnership Forum (USISPF) board member and CEO, Mastercard. The minister said ideally the agreement could have been signed during the India visit of US President Donald Trump in late February, but “few dots and commas” still needed to be finalised and soon thereafter “we were all faced with COVID-19 pandemic.” He added that trade negotiations are complex deals and neither side can be careless about what it is agreeing to. “Personally, I believe that this will be a foundational trade deal which will only help us deepen our engagement going forward…We on India’s part believe that it has to be a win-win for both the countries,” Goyal said. The architecture of the initial deal is in the best interest of businesses of both the countries, he said. The deal would open doors for a dialogue on a larger bilateral engagement “where we have much more elbow room since it’s not on the MFN (most favoured nation) basis”, he said. “I do hope that we can quickly move to the next phase of a larger engagement for a free trade agreement,” the minister said. India and the US are negotiating a limited trade deal with a view to ironing out differences on trade issues to boost economic ties. India is seeking exemption from high duties imposed by the US on some steel and aluminium products, resumption of export benefits to certain domestic products under the Generalized System of Preferences (GSP), and greater market access for its products from sectors such as agriculture, automobile, automobile components and engineering. On the other hand, the US wants greater market access for its farm and manufacturing products, dairy items and medical devices, apart from cut in import duties on some information and communication technology products.
Source : Financial Express
GST collections on the month of August 2020 stood at Rs 86,449 crore, which is still much below the target. The revenues for the month are 88 per cent of the GST revenues in the same month last year, said the Ministry of Finance. During August, the revenues from the import of goods were 77 per cent and the revenues from the domestic transactions were 92 per cent of the revenues, compared on-year. The GST revenues in August have seen the second consecutive fall after the fall in July. It is also to be noted that the taxpayers with turnover less than Rs 5 crore continue to enjoy relaxation in the filing of returns till September. Out of the total GST collections, CGST is Rs 15,906 crore, SGST is Rs 21,064 crore, IGST is Rs 42,264 crore, and cess is Rs 7,215 crore. Also, the government has settled Rs 18,216 crore to CGST and Rs 14,650 crore to SGST from IGST as regular settlement. The total revenue earned by the central government and the state governments after the regular settlement in the month of August 2020 is Rs 34,122 crore for CGST and Rs 35,714 crore for the SGST. “The collections in August 2020, though at 88 per cent of collections in August 2019 are still pretty decent, especially when you compare the dip in collections from July to August in 2019,” said Rajat Bose, Partner, Shardul Amarchand Mangaldas & Co. The numbers seem to be stabilizing and are expected to be in this range at an average for the next six months at least, he added. Meanwhile, Delhi, West Bengal, Jharkhand, and Goa are among the states that faced the maximum contraction in the GST revenues, while the GST collections grew in Chattisgarh, Uttarakhand, Rajasthan, Uttar Pradesh, and Nagaland.
Source: Financial Express
New Delhi: States are set to take up the matter of compensation for the goods and service tax shortfall in the monsoon session of parliament scheduled to start on September 14, with the GST Council unlikely to meet before September 19. “Many states said that their members of parliament will raise the issue in the house,” said TS Singh Deo, commercial tax minister of Chhattisgarh. “It will be raised in both houses,” Kerala finance minister Thomas Isaac said. States are likely to hold another meeting once the Centre gets back with the additional information they have sought. Opposition-led and allied states were briefed by the finance secretary and the expenditure secretary about the options offered by the Centre via videoconference on Tuesday. “States have sought more information on state-wise allocation of funds, the level of funding that will be made available, the basis of calculating the Rs 97,000 crore figure and other numbers,” said a senior oicial, asking not to be identified. “The states will be given these clarifications in writing.” “The Centre has not given any response to states that have said that they’re not accepting either of the options,” said a senior state oicial on condition of anonymity. Punjab, Delhi, Kerala, Telangana and east Bengal have officially rejected both the Centre’s proposals. One of the options offered last week was for states to borrow Rs 97,000 crore from a special central bank facility to make up for the shortfall due to the transition to the GST regime, with repayment of the principal and interest to be serviced by the compensation cess.
Source: Economic Times
NEW DELHI: India, Japan and Australia on Tuesday said an initiative to build resilient supply chains in the Indo-Pacic region could be launched later this year, as they seek to reduce dependence on China following its hostile political and military conduct. The trio aims to create a free and transparent trade and investment environment. This was decided at a virtual meeting on Tuesday attended by Australia’s minister for trade, tourism and investment Simon Birmingham; India’s minister of commerce and industry Piyush Goyal; and Japan’s minister of economy, trade and industry Kajiyama Hiroshi. Last month, ET reported that India, Japan and Australia had begun discussions on launching a trilateral Supply Chain Resilience Initiative to reduce dependency on China. The initiative, rst proposed by Japan, is now taking shape. “The ministers reaffirmed their determination to take a lead in delivering a free, fair, inclusive, non-discriminatory, transparent, predictable and stable trade and investment environment and in keeping their markets open,” said the Australia-India-Japan Economic Ministers’ Joint Statement on Supply Chain Resilience, issued at the end of the meet. “In light of the Covid-19 crisis and the recent global-scale changes in the economic and technological landscape, the ministers underscored the necessity and potential to enhance the resiliency of supply chains in the Indo-Pacific region,” the statement said. The ministers instructed their officials to work out the details of the initiative for its launch later this year. They called for other countries in the region, which share similar views, to participate in the initiative.
Source: Economic Times
Shri Nitin Gadkari, Union Minister for Micro, Small and Medium Enterprises (MSMEs) and Road Transport & Highways inaugurated Technology Centre set up at Bhiwadi in Alwar District of Rajasthan today via video conferencing. He said that manufacturing sector contributes around 22 to 24% in the GDP of the Country and in wake of 'Atmanirbharat Bharat’ call of the Prime Minister, he informed that we are making 15 new Technology Centres (TCs) and upgrading 18 existing TCs to create skilled manforces, adding that killed man power is a must to make our country a manufacturing hub. Shri Gadkari further said TCs can work as a catalyst in the area and we are thinking of providing loans to TCs so that they may buy new machinery and new technology to caterto the needs of local industries. Work on Extension Centres is also going on for these TCs. He appealed to State Governments to provide land and other logistic support for these Extension Centres. These Extension Centre can fulfill the needs of new and existing industries of the area. He suggested that infrastructure of existing Polytechniques, ITI’s, Engineering Colleges should be utilized for skilling the youth and support of industries can also be taken. Shri Pratap Chandra Sarangi, Minister of State for MSME and Animal Husbandry, Dairying & Fisheries congratulated the people of Bhiwadi & Rajasthan for Technology Centre and expressed hope that it will prove to be a milestone for development of the area. He said that country is facing economic crisis these days due to COVID-19 Pandemic and these Centres are of utmost importance as they will help in increasing production, reducing unemployment and fulfill the dream of a self-reliant Country. He also appealed to youth of the country to improve their skills, make themselves industry ready and respond to the call of ‘Atmanirbhar Bharat’ given by the Prime Minister. Shri A.K. Sharma, Secretary, MSME said that the upcoming Technology Centres will provide assistance to industry predominantly MSMEs in General Engineering, Automotive, Fragrance & Flabour and ESDM sectors and are being equipped with multiple cutting manufacturing technologies, such as CNC Machines, 3D Manufacturing/Additive Manufacturing, Laser/ Ultrasonic machining, Robotics and Process Automation, Precision measurement/ Metrology equipment, state-of-the art Electronics Manufacturing Facilities, Calibration and Testing Facilities for Electronic System Design and Manufacturing. The Ministry of MSME, through the Development Commissioner (MSME), is implementing Technology Centre Systems Program (TCSP) to establish 15 new TCs and upgrade the 18 existing TCs. Shri Prasadi Lal Meena, Minister of Industries and State Enterprises, Government of Rajasthan, Shri Mahant Balaknath, Member of Parliament and Shri Sandeep Yadav, Member of Legislative Assembly were also present on the occasion.
Source : PIB
The petitions have been collaborated with similar petitions filed from different parts of the country and were heard on August 26. The SC has directed the union government to file an affidavit on the stand of the government and the next hearing of the case has been scheduled for September 1. Reeling under losses due to the lockdown, over a dozen industrial associations have filed three separate petitions in the Supreme Court (SC), seeking a waiver of bank loan interest for six months (March to August). The industry has also filed an application seeking extension in the period of moratorium. One of the petitions has been filed by five knitwear industry associations, the second has been filed by seven associations under the umbrella of Federation of Industrial and Commercial Organisation (FICO) and the third has been filed by Northern India Textiles and Mills Association. The petitions have been collaborated with similar petitions filed from different parts of the country and were heard on August 26. The SC has directed the union government to file an affidavit on the stand of the government and the next hearing of the case has been scheduled for September 1. As per information, the loans availed by members of the above said associations amounts to around Rs 21,000 crore and around Rs 160 crore is being paid by them as monthly interest. Bajwa Nagar knitwear club president Darshan Dawar said, “Small and micro enterprises have been hit badly due to the lockdown and we have suffered loss of crores due to the ongoing pandemic. The sector has also not been able to revive itself after the unlocking started as the demand has dipped and further there is a shortage of labour. No relief has been provided to the sector in terms of bank interest waiver and many units are on the brink of a shutdown. Due to this, we were forced to move the Supreme court.” FICO president Gurmeet Kular said, “The industry was forced to shut down due to lockdown imposed by the government. Why are we being asked to pay the bank interest for the period when all units were closed? The government should provide a bank interest waiver for at least six months and a moratorium should be announced.” Advocates Ashish Virmani and Himanshu Dhuper said, “Firstly the Supreme Court has slammed the union government for failing to file an affidavit regarding its stand. The government was directed to file an affidavit before the next hearing of the case which is scheduled for September 1. The moratorium period for payment of bank loan installments is ending on August 31.”
Source: Hindustan Times
Textiles and clothing major Arvind Ltd on Monday posted a consolidated loss of Rs 97 crore in the April to June quarter as compared to a profit of Rs 24 crore in Q1 FY20. extiles and clothing major Arvind Ltd on Monday posted a consolidated loss of Rs 97 crore in the April to June quarter as compared to a profit of Rs 24 crore in Q1 FY20. Revenue from operations came down to Rs 599 crore from Rs 1,896 crore in the same period. The company said it expects to attain pre-COVID levels of performance in the next six to nine months. Denim volumes recovered to about 70 per cent in July and export volumes have fully recovered while domestic markets are still lagging; Woven volumes recovered to 64 per cent in July and Arvind expects ramp-up in the third quarter. It said monthly garment volumes recovered to about 60 per cent by June. Advanced materials monthly revenues and margins have fully recovered to pre-COVID levels. The multi-pronged programme to meet the challenge resulted in long-term fixed cost reduction of 15 per cent while net borrowing is likely to return back to March-end levels by end of second quarter. Arvind Ltd is the country's largest textile company with revenues of one billion dollars (about Rs 7,430 crore). The company is an end-to-end supply chain partner to the world's leading fashion brands. Beginning 2011, it has brought in some of the biggest global fashion brands like Calvin Klein, Tommy Hilfiger, Gap, Ed Hardy, Hanes, Nautica and Elle to India.
Source: Dev Discourse
The Vedanta Group, Kiri Industries, the Welspun Group and the UNO Minda Group recently pledged investments worth ₹4500 crore (in the metal sector), ₹3,000 crore (in specialty chemicals), ₹2,000 crore (in textiles) and ₹1,000 crore (in engineering) respectively in Gujarat. The announcement came during a webinar on Gujarat Industrial Policy 2020 last week organised by the state government where industries pledged total investments worth ₹10,500 crore. State chief minister Vijay Rupani released a booklet containing the new industrial policy during the webinar that he had unveiled on August 7, according to media reports from the state. The webinar was organised by the industries and mines department in partnership with the Associated Chambers of Commerce and Industry of India (ASSOCHAM), the Confederation of Indian Industry (CII) and the Federation of Indian Chambers of Commerce and Industry (FICCI). BK Goenka, Chairman Welspun Group, Sunil Duggal, CEO Vedanta Group, and Anadi Sinha, President, UNO Minda Group were among the industrialists who participated in the event.
Source: Fibre2Fashion
Indonesia’s textile industry is yet to be fully prepared to produce personal protective equipment (PPE) for medical workers treating COVID-19 patients, according to Indonesian Chambers of Commerce and Industry’s deputy chairman for trade Benny Soetrisno, who recently said the domestic textile industry's focus remains increasingly unwavering on apparel products, while the potential for non-apparel textile products is immense. "For non-apparel textile products, it is still wide open. Up until now, amid the spread of COVID-19, we are still not prepared to respond to the (demand) of PPEs, as we do not have the main materials," he said during a virtual discussion in Jakarta. The lack of materials to produce PPE results in the need to import, for which Soetrisno sought the involvement of all relevant parties to boost the industry, as it can lead to job creation and contribute to the country's foreign exchange, an Indonesian news agency reported. To boost the sector, Soetrisno called to optimise the three pillars of funding, power and manpower, deemed crucial to boost global competitiveness of the industry's products. The cost of power in the Indonesian industry is still considerably high from that of other South East Asian countries, thereby making the retail price more expensive and hence reducing the products' competitiveness in the global market.
Source: Fibre2Fashion
The economic fallout from the Covid-19 pandemic has hit Indonesia hard, and the Southeast Asian largest economy urgently needs new growth engines. Exports fell 28.95 per cent year-on-year to US$10.53 billion ($14.3 bilion) in May 2020, the lowest levels since July 2016. The drop is largely due to reduced shipments of coal, coffee, and palm oil, as well as oil and gas. In June 2020, Bank Indonesia lowered its growth forecast for the year to 0.9-1.9 per cent, lower than the previous 2.3 per cent projection. Against the economic challenges posed by the pandemic, free trade agreements (FTAs) offer Indonesia's exporters a way to bounce back. Utilising FTAs offers local companies a compelling list of benefits, including access to new markets, tariff concessions, and the ability to clear goods more quickly and easily. With their focus on opportunities in overseas markets, FTAs can also promote supply chain diversification. Since 2012, Indonesia has been involved in the talks concerning mega trade deal, the Regional Comprehensive Economic Partnership (RCEP), along with the nine other Asean governments and their six FTA partners: Australia, China, India, Japan, New Zealand, and South Korea. Once this ambitious pact comes into effect, it will create the world's largest free-trade zone and have a significant impact on the post-pandemic economic recovery of the entire bloc. RCEP would minimise structural barriers by streamlining rules and procedures related to customs and trade-related infrastructure. In practical terms, Indonesian businesses would follow one set of procedures instead of navigating through different sets of rules when trading with their RCEP partners. This would inevitably lead to greater ease of doing business and increase Indonesia's attractiveness as a trade and investment destination. Jakarta is also working to conclude a major trade pact with the European Union (EU). The Indonesia-EU Comprehensive Economic Partnership Agreement is significant because the EU is the third-largest destination for Indonesian exports, with key exports including agricultural products, machinery and appliances, textiles and footwear, and plastic and rubber products. The EU mostly exports industrial products, including machinery and appliances, transport equipment, and chemical products to Indonesia. The trade negotiation has faced a challenge over palm oil following a decision by the EU to phase out the use of biofuel and biodiesel manufactured from palm oil by 2030. The European Commission, the EU's executive arm, has categorised palm oil as an unsustainable product. The plan has unsettled Indonesia, the world's largest palm oil producing country. Talks are continuing. Other new FTA negotiations are underway with India and Korea, among many others. At the same time, the government is seeking to renegotiate a major deal with Japan to further boost bilateral trade. Through the Indonesia-Japan Economic Partnership Agreement re-negotiations, Indonesia hopes to expand access to the Japanese market for some fresh and chilled fishery products, including salmon and trout, among others. Currently, these are excluded from tariff reduction commitments, alongside some canned tuna products. Japan is Indonesia's second-largest export destination and third-largest import source. The pandemic has exposed the vulnerabilities of global supply chains that rely extensively on one or two large powers for the supply of certain products. At the peak of the Covid-19 outbreak in February, garment supply chains in multiple Asean countries were severely disrupted when raw materials remained stuck in China, which was then placed under a months-long lockdown. Many exporters learned from that lesson and have been accelerating efforts to diversify their supply chains as part of a "derisking" strategy. FTAs have the potential to greatly aid companies' efforts in this regard as they seek to put diversification plans into action. That is already likely to be the case with the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), a major trade agreement between Indonesia and Australia that came into effect in July 2020. In the works since 2005, it eliminates tariffs from 94 per cent of the product lines traded between the two countries. For Indonesian businesses that source their raw materials or intermediate goods from Australia, the trade deal is also expected to lower costs. According to analysts, Jakarta is expecting to receive an immediate boost in the export of a wide range of products to Australia, including textiles, automotive products, electronics, fishery products, and communication tools. Companies looking to diversify and shift manufacturing operations away from China also have a viable, low-cost alternative in Indonesia. In 2019, DHL launched DHL ASIACONNECT+, a new small-freight multi-modal logistics service which connects the Indonesian archipelago to key Asean trading markets via its road freight network. Working to speed up FTA ratification makes sound economic sense as Indonesia seeks to shore up economic recovery efforts, even as it addresses the pandemic at home. However, FTAs are notoriously slow-moving affairs. The IA-CEPA, for example, was signed into law 15 years after negotiations first began.
Source: Strait Times
As global operations in the fashion, apparel and textile sector—badly hit by the COVID19 pandemic—slowly resume, 15 major companies, brands and organisations recently published an open letter stressing the need for the sector to build back better and more sustainably from this crisis and to ensure that the pandemic helps speed up the sector’s transformation. Launched during 2020’s virtual World Water Week, the letter’s signatories include multinationals like H&M, Tchibo, Burberry, PVH, Tommy Hilfiger, Calvin Klein and Primark as well as the Sustainable Apparel Coalition, the Zero Discharge of Hazardous Chemicals (ZDHC), a group of apparel and footwear brands and retailers, the Alliance for Water Stewardship, UK-based Carbon Disclosure Project (CDP) and the World Wildlife Fund for Nature (WWF). Other companies, brands and organisations can still sign up to the Open Letter to add their voices to the call for a more sustainable future for the industry, according to a WWF press release.
Source: Fibre2Fashion
Early this year, Smith College in Northampton was ready to present its glorious annual Spring Bulb Show. However, as we know, that show never opened. Like so many other events, the bulb show was shutdown because of the newly blossoming Covid-19 pandemic. I was fortunate enough to visit the Lyman Plant House just before the term ‘COVID’ was known everywhere. I got to visit the space used for the Bulb Show, although by then preparations had been called to a stop. Fortunately, I was still able to view a magical and colorful textile exhibit, “The Art and Science of Dyeing,” was in place in the school’s Church Exhibition Gallery. Michelle Parrish, who made those beautiful textile panels, worked with Sarah Loomis, the director of education at the college’s Botanic Garden, to put the exhibit together. Parrish told me that Loomis was the mastermind behind the design and installation. She also wrote all the interpretive information about plants and dyes on the wall panels. Theirs was a close collaboration, making Parrish responsible for choosing the dye plants that would be used and then cutting, washing, mordanting and dyeing all the cloth. Parrish has been dyeing textiles and growing dye plants in her garden for 20 years. She set up the nine-foot panels of linen, silk and wool in shades of blue, red, and yellow, orange and green that showed the reaction of dyes on different textiles. Parrish is a woman who has been playing with different crafts ever since she was a child. When she was 16 years old, she tried making a plant dye but failed and put the idea aside. She made pottery for several years and then learned to weave. In 1999, she became very serious about learning to weave and spin. At the same time, she began “to grow dye plants so that she could make textiles from garden to finish.” Because of the pandemic, Parrish, the creator of this exhibit, and I met over the telephone. Along with the textile panels, there were informational panels on the wall with information about the plants that dyers use. Centuries ago, weavers had to make their own dyes out of plants, or else all textiles would be the basic color of the cotton, wool or linen. In many cases, dyeing was its own specialized craft, separate from weaving. It is hard to think about a world where all textile dyes were derived from plants, minerals or insects. Before 1860, this was true. The wall panels explained that plant dyes were used centuries ago. It took me a while to understand that these names, madder and weld and woad are plants and that the plants date back to ancient Egypt and earlier. Madder alone makes red and orange dyes. Madder and weld are plants that make shades of red and yellow dyes. Weld and woad plants make shades of green dyes. The green leaves of the woad plant contain the same source of blue as other indigo-bearing plants. An essential process of dyeing textiles is to begin with a mordant, or a dye fixative. Without a mordant, dyed textiles will fade over time because of washings. However, Parrish explained that “woad and indigo do not require a mordant as the vat-making process involves unique chemical processes that allow physical bonding with the fibers.” As an example of the dyeing process, Parrish gave me the instructions for making a yellow dye from marigold petals. Unfortunately, the process is too long for my column. I will describe the process briefly and recommend a visit to her blog, localcolordyes.com, for more information. Equipment including a stainless steel two-gallon pot that will never be used for cooking, along with a thermometer, measuring spoons, a scale and a washtub is essential. Fiber must be washed or “scoured’ to prepare it for mordanting. It needs to be washed and dried. It can be put into the mordant while wet, or after it is dried. The mordant for wool fiber is aluminum sulfate (usually referred to as alum). The type of mordant depends on the fiber. The fiber needs to be weighed when dry. The mordanting process will begin with measuring the weight of fiber to determine the measurement of mordant in hot water. The fiber may soak overnight in the mordant. Then, it’s time to dye. The weight of fresh marigold flowers needs to be at least three-orfour times the weight of the fiber. For example, 2 ounces of fiber will need 6 or 8 ounces of marigolds. Dried marigolds will need a one-to-one ratio. Put the marigolds in a pot of water and bring to a temperature of 180 degrees Fahrenheit. Fiber should be completely wet when put in the dye. Bring the temperature back to 180 degrees Fahrenheit and maintain it for an hour. Then allow fiber to cool in a dyebath. Remove the fiber from the dyebath, hang it carefully out to dry. Once it’s dry, wash it with biodegradable detergent and rinse repeatedly until rinse water is clear. Hang the fiber out to dry. Parrish will be teaching a workshop at Snow Farm in Williamsburg on the weekend of Sept. 19 and 20 titled “Roots, Shoots, Leaves and Flowers: Local Plants to Dye For.” If you would like to learn more about growing and using dyeplants to dye woolen and linen yarns, registration is still open. Snow Farm has made careful arrangements that will enable students to maintain distance while they work. Much of the workshop will take place outdoors.
Source: Recorder.com
The Department of Finance (DOF) has withheld the release of the tax refund and credit claims by a Bulacan-based textile company owing to the investigation of the Commission on Audit (COA). The DOF, through its One-Stop Inter-agency Tax Credit and Duty Drawback Center (OSS), said yesterday that it held back a P57-million refund and another P262 million in tax credits claimed by Indo Phil Group of Companies (IPGC). According to the DOF, OSS stopped the release of funds due to the ongoing investigation of COA on alleged “irregular” tax credit certificates (TCCs) issued during the past administrations. The DOF already informed the Department of Labor and Employment (DOLE) of its the decision to put on hold the request of IPGC pending the final results of the COA special audit on TCCs issued from 2008 to 2014. OSS said in letter to DOLE that Indo Phil Acrylic Manufacturing Corp. (IPAMC), Indo Phil Cotton Mills Inc. (IPCMI), and Indo Phil Textile Mills Inc. (IPTMI) are covered by the COA special audits office report for 2018-06 “with findings of irregularities on the TCCs issued to each company.” The Indo-Phil Group, a Filipino-Indian joint venture based in Marilao, Bulacan, include IPTMI, IPAMC and IPCMI. Earlier, Labor Secretary Silvestre Bello III wrote the OSS requesting the agency process IPGC’s P57-million tax refund and TCCs amounting to P262 million. But Emee Macabeles, OSS Executive Director said in a response to Bello that they cannot process IPGC’s request pending the COA audits. Macabales explained the COA issued Notices of Disallowance to the companies for TCCs that were found to be “tainted with irregularities.” “Due to these developments and the enormity of the amount involved, the Department of Finance and OSS Center (are) taking precaution(s) before any request for TCCs, Tax Debit Memos (TDMs) or duty drawbacks are acted upon,” Macabales said in her letter to Bello. Macabales assured Bello that the OSS will update his office “on any developments in the circumstances of the OSS Center.” Created under Administrative Order (AO) No. 266 issued in 1992 to process TCCs and duty drawback applications, the OSS is a composite body managed by the DOF, Bureau of Internal Revenue, Bureau of Customs and the Board of Investments.
Source: Manila Bulletin
