New Delhi: Commerce and industry minister Piyush Goyal said that India’s exports and imports are doing well, and the capping of export incentives under the Merchandise Exports from India Scheme (MEIS) at Rs 2 crore will not affect 98% of the exporters who claim benefit under the scheme. In a meeting with export promotion councils, he also said that the ministry is taking up issues related to Special Economic Zones (SEZ) with the finance ministry and while certain sectors- which depend on discretionary spending- are under “severe stress”, India’s overall exports and imports are showing positive trends especially exports which are approaching last year’s levels. “The exports are approaching the last year’s levels, after making a sharp dip in April this year due to pandemic. Regarding imports, the positive thing is that the capital goods imports have not declined, and the reduction in imports has been seen mainly in crude, gold and fertilizers,” the ministry quoted Goyal in a statement. As per the statement, Goyal added that the trade deficit is reducing drastically and India’s share in the global trade is improving, and that the government is trying to generate more reliable and better trade data for improved planning and policy making. The government has identified 24 focus manufacturing sectors which have the potential to expand, scale-up operations, improve quality, and lead enhancement of Indian share in global trade and value chain. “These sectors have capacity to do import substitution and push exports,” he said, and called upon exporters to engage with the Steering Committee set up to promote Indian manufacturing. separately, the government has already announced Remission of Duties or Taxes on Export Products (RoDTEP) scheme for exporters to replace MEIS, and a committee has also been set upto determine the ceiling rates under the RoDTEP scheme. This new scheme would reimburse the embedded taxes and duties already incurred by exporters.
Source: Economic Timer
The meeting comes ahead of the expected announcement of the KV Kamath-led panel’s recommendations on eligibility parameters for the restructuring of loans to soften the blow to both borrowers and the lenders dealt by the pandemic. Finance minister Nirmala Sitharaman on Thursday asked lenders to swiftly put in place board-approved policy for a one-time restructuring of loans in sync with the central bank’s recent stipulation, identify eligible borrowers and roll out resolution schemes latest by September 15. In a virtual meeting with top executives of banks and non-banking financial companies, Sitharaman reviewed their preparedness and stressed that borrowers must be given support after the expiry of the loan repayment moratorium. However, Covid-19-related distress “must not impact the lenders’ assessment of borrowers’ creditworthiness”, according to a statement by the finance ministry. Efforts must be made to revive every viable business, she said. The meeting comes ahead of the expected announcement of the KV Kamath-led panel’s recommendations on eligibility parameters for the restructuring of loans to soften the blow to both borrowers and the lenders dealt by the pandemic. Earlier this month, the Reserve Bank of India (RBI) extended a special window for lenders to recast stressed retail and corporate loans without classifying them as non-performing, provided that they set aside 10% provisions on such advances. RBI governor Shaktikanta Das has said a resolution framework for Covid-19-related stressed accounts will be finalised by September 6. In its Financial Stability Report, RBI has forecast that gross non-performing assets (NPAs) may jump from 8.5% at the end of March 2020 to 12.5%, a 20-year peak, by March 2021. However, the NPA level may shoot to 14.7% by March 2021 in case of a severity of economic stress. For their part, the lenders stated that they have already started the process of identifying and reaching out to eligible borrowers. Punjab National Bank (PNB) managing director SS Mallikarjuna Rao said last week said he expected about 5-6% of the lender’s loan book, or between Rs 36,000 crore and Rs 43,000 crore, getting recast in FY21. Sitharaman also reviewed the progress made by various lenders under the Rs 3-lakh-crore credit guarantee scheme, which was rolled out on June 1 mainly for MSMEs, and asked the lenders to “try and extend the maximum possible relief to borrowers before the festive season”. As of August 31, banks’ loan disbursement under the scheme stood at Rs 1.58 lakh crore, of which more than Rs 1.11 lakh crore has been disbursed. The scope of the so-called Emergency Credit Line Guarantee Scheme (ECLGS) was recently expanded to include individuals, along with a wider pool of businesses. Under this, the Centre has pledged full guarantee for up to 20% extra, collateral-free working capital loans. Another credit guarantee scheme for subordinate debt of Rs 20,000 crore, meant for MSMEs, was also deliberated on in the meeting. Similarly, the minister also reviewed the progress of two schemes meant to facilitate Rs 75,000-crore liquidity for NBFCs. Under these, the government has approved the partial credit guarantee scheme (PCGS) 2.0 worth Rs 45,000 crore to improve liquidity for low-rated shadow lenders. Under this scheme, bonds/commercial papers of Rs 25,055.5 crore have been approved for the purchase by state-run banks so far, of which Rs 13,318.5 crore (53% of the portfolio) comprises such papers that are rated below AA-. These schemes for MSMEs and NBFCs were part of the Rs 21-lakh-crore package announced by Sitharaman in May to soften the blow of the pandemic.
Source: Financial Express
Finance Secretary Ajay Bhushan Pandey on Friday said that when the world was turning faceless and digital, it was time for tax administration to also go faceless and eliminate the physical interface between the taxpayer and the Income Tax department. Speaking at a webinar on ‘Transparent Taxation: India's Tax system becomes fearless, painless and seamless’, the finance secretary said that the tax system was going to be entirely data-driven and seamless tax reforms would change the way taxes are paid in the country. The objective of this reform is to remove the harassment and corruption that people used to criticise earlier, he said. The coronavirus (Covid-19) pandemic led to better digital adoption and speeded up the implementation of a faceless system in tax administration and the new system removes the territorial system from tax administration and the structure that was inherited from the British, he said. Pandey said major cases of withdrawal, transactions, stock transaction, foreign travel etc, would be fed into the system. "While they will form the basis for tax assessment -- the selection of cases for assessment will be done electronically," he said. He further mentioned that out of 70 million I-T return filings as of now, only about 200,000 assesses were being selected for further scrutiny, which clearly showed the government's trust on taxpayers. "We are obtaining data from not only national transactions but also from 98 countries with which we have tax treaties," said Pandey.
Source: Business Standard
Union Minister of Commerce and Industry & Railways Shri Piyush Goyal has said that New age ideas will help us to prepare India to contribute in a much bigger way to global supply chains. Addressing CII's event on ‘Launch of India's Future Business Group’ today, he said that New-age entrepreneurs are going to change the fortune of India. He said “We need to build a platform with like-minded countries and trusted partners to promote newage businesses in India.” India can engage with other countries and build up a platform with trusted partners to promote new-age businesses, he added. The minister said that it is the youngsters, who are going to change the fortune of India, create jobs & bring prosperity to the people. “We have a huge start-up ecosystem in India. It's more about recognizing our capabilities, uplifting our entrepreneurs. Some of the ideas that youngsters have come up with are truly revolutionary.” He suggested that Colleges should look at entrepreneurship or other courses around new-age businesses. We can also look at more vocational training & assessment process to see what is in the young person's mind, he added. Talking about the improvement in India’s rank from 52 to 48 in the Global Innovation Index, Shri Goyal said “Let us all work together to truly make India the innovation hub. We have a huge startup ecosystem. I have no doubt that the spirit of the industry will even encourage even Government to proactively go forward with new ideas & processes to make it easier & simpler to do business in India. No power on earth can stop us from succeeding” Speaking about the innovation in Railways, Shri Goyal said that in the last six years, our Indian coach making factories have not only stopped making old coaches, we are now making better LHB coaches. As a result of this, in the last 17 months, not even a single Railway passenger has died because of Railway accident: Shri Goyal said that the real startup entrepreneur with ideas is the Prime Minister. Narrating an anecdote, Shri Goyal said that while discussing the need of fencing the railway tracks for the high-speed trains, Shri Narendra Modi suggested bidding solar projects along Railway tracks, which will bring in Low-cost power, Private investment, make the track secure and also Railways eco-friendly. Shri Goyal called upon the senior business leaders to become mentors, not only to their own family or businesses but also to the new age & young entrepreneurs. He said “I would appeal to them to allocate quality time for this. It will really encourage the youngsters”. The Minister referred to the Aatmanirbhar Bharat as only the beginning of India's selfrealization of its own potential to grow which will contribute to the global economy from a position of strength and trusted partner in resilient global supply chains. He said that India has tremendous potential for new businesses. He said “The objective is to get growth back in India. We will all have to work collectively to achieve that. Prime Minister had nce said, "We have a million problems but at the same time, we have a billion minds." Our industry has truly demonstrated the capabilities of the intelligent Indian entrepreneur and the ability to surpass traditional businesses to promote new age businesses. India has immense capability & strength to grab the future. We will overcome the pandemic faster than anybody imagines.”
Source: PIB
NEW DELHI: The Export Promotion Council for EOUs and SEZs (EPCES) on Friday said that the manufacturing exports from Special Economic Zones (SEZs) have decreased around 45% on-year till June even as software and service exports grew 5%. Manufacturing exports from the units were Rs 41,699 crore till June compared to Rs 75,346 crore in the same period last year. Software and services exports rose to Rs 1.11 lakh crore till June 2020 from Rs 1.05 lakh crore last year. India’s exports contracted 10.2% in July at $23.64 billion while imports dipped 28.4% to $28.47 billion. The council suggested that as part of Atmanirbhar Bharat mission, SEZs and export-oriented units (EOU) should be allowed to manufacture goods and supply them to domestic market without any import duties. At present import duties are imposed on all supplies from SEZ units to domestic market. It also said that these goods manufactured in SEZ and EOUs and supplied to domestic market should be treated as exports as import substitution. “These imported goods may include defense products, health products and other non-essential goods, which can be identified,” the council said in a statement on Friday. It sought permission for job work by SEZ units for units in domestic area for better capacity utilisation especially during the ongoing pandemic, exemption for manufacturing units from payment of lease rentals and integration of SEZ online with ICEGATE system of Customs. Export incentives Citing uncertainty about incentives under Merchandise Exports from India Scheme (MEIS), the council said that benefits under the MEIS and Rebate of State and Central Taxes and Levies (RoSCTL) schemes should be extended to apparel/ garment sector for exporters in SEZ and EOUs. “It will be difficult for the exporters to properly price their products now which would be exported post December 31, 2020,” EPCES said. The government has capped the benefits under the MEIS at Rs 2 crore per exporter on exports made between September 1-December 31, 2020 without changing the coverage of the scheme and the applicable rates. It also said that the new Import Export Code (IEC) obtained on or after September 1 will be ineligible to submit any MEIS claim for exports, and the ceiling would be subject to a downward revision to ensure that the total claim doesn’t exceed the allocated Rs 5,000 crore for the period.
Source: Economic Times
NEW DELHI: The government has banned creation of any new posts under all ministries and departments while restricting hiring of consultants on higher wages as part of its fresh expenditure rationalisation measures. “In the context of the present fiscal situation and the consequent pressure on government resources there is a need for further rationalisation of non-priority expenditure, while protecting priority expenditure,” the finance ministry said in a memorandum to ministries and departments on Friday. As per the latest directive, creation of new posts will remain banned, except with the approval of the department of expenditure. “This ban will cover creation of all posts under powers which have been delegated to any organisation regardless of the source of such authority or power,” it said, adding that any posts created after July 2020 and not filled yet shall not be filled unless deemed absolutely essential. Besides, it has asked all ministries to undertake a review of individual consultants appointed and reduce their number to the minimum. The department of expenditure has also asked the ministries to ensure that the fee paid to consultants is not disproportionate to their quality and quantity of work. It has also banned printing and publishing of books and other documents on imported paper, except where printing is done abroad by Indian Missions. It has asked ministries to discourage expenditure on functions such as Foundation Day.
Source: Economic Times
The Goods and Services Tax (GST) compensation to the states has been in the news lately, with most people confused about what the issue is, what the amounts in question are, how they are calculated, and what the Centre’s duty is. Here’s a quick breakdown of the relevant details. What is GST compensation? One of the main reasons the states agreed to get on board with a nationwide GST was because the Centre promised to fully compensate them for any losses that might arise from the implementation of GST for the first five years. This compensation is to be paid from a ...
Source: Business Standard
New Delhi: Eternal Affairs Minister S Jaishankar on Friday said India is engaged in an exercise of comprehensive change and reform which ranges from healthcare, housing, infrastructure and water to education, skills and social benefits. Addressing the Ambrosetti forum, Jaishankar highlighted the growth of Indian medical and pharmaceutical capacities, and said these have created an effective response to COVID-19 domestically while contributing to global requirements. "A country where personal protection equipment was not being made today has 109 manufacturers. N-95 masks were being made earlier by two companies; now by 10. Twenty-ve enterprises are currently producing ventilators, there were none before," the minister said. "We are not only taking care of our own; medical supplies were sent to 150 nations, many of them as grants to the developing world. This is the report card for one-sixth of humanity," he added. Analysing the impact of COVID-19 on global politics, Jaishankar made a case for reformed multilateralism and brought out the importance of India-EU partnership to the economic recovery process. "The expectations from an India-EU partnership have always been high; the post-COVID world only makes its case even more compelling," he said. Jaishankar said India is engaged in an exercise of comprehensive change and reform “India is today engaged in what can only be described as an exercise of comprehensive change and reform. This ranges from healthcare, housing, infrastructure and water to education, skills and social benefits," he said "This is supported by a series of initiatives that promote ease of living, digital capabilities and making it easier to do business. In this quest for progress and modernity, we naturally look for global cooperation that is based on similar values and principles," the external affairs minister said. Speaking on how the post-COVID world will be different, Jaishankar said some of it will obviously be in the lifestyle and mindset. "Almost universally, we all will be very much more digitalized than before. Whether the more affluent who are working and shopping more digitally or the more vulnerable for whom this has been literally a lifeline, none of us are unaffected," he said. Jaishankar said a second big change will be the different expectations that people will have of their governance systems. "This pandemic has highlighted the need for health security in the most dramatic way. It has also brought out the importance of resilient and reliable supply chains that can be depended on, even in times of crisis," he said. Noting that strategic autonomy has come to have a new meaning, Jaishankar said where collective economic prospects are concerned, each society will obviously respond in line with its national strategy. "As for India, that means a focus on an employment-centric economic recovery. Indeed, the combination of these factors has contributed to the call for an Atmanirbhar Bharat, a more self-reliant India," the external affairs minister said.
Source: Economic Times
Leading container port JNPT on Friday reported 16.61 per cent drop in total traffic handled to 4.74 million tonnes in August, as against 5.68 million tonnes in the same month last year. "JN Port registered a throughput of 3,52,735 TEUs in container handling in August as against 3,44,316 TEUs handled in July 2020. The overall traffic handled during the month was 4.74 million tonnes as against 5.68 million tonnes in August 2019," JNPT said in a release. After facing a drop of over 35 per cent in cargo handling during the initial lockdown period, gradually the decline has now come down to 16.61 per cent in August as compared to August 2019. Due to host of measures taken by Jawaharlal Nehru Port Trust (JNPT), it has improved the numbers month-on-month, the port operator said in the release. Despite various challenges faced, the port handled as much as 1,643,784 TEUs (twenty-foot equivalent unit) and 694 vessels till August 31, it added. "After facing steep contraction, the JNPT is now on the road to recovery. At JNPT, we have taken various steps to keep the port ecosystem functional and for the smooth working of the logistic supply chain during COVID-19 pandemic crisis, which has helped our cause," JNPT Chairman Sanjay Sethi said. It continued steady surge in cargo handling with the easing of lockdown restrictions and pick up in the domestic economic activity, it said, adding that this progress indicates early signs of recovery, which is very significant during the ongoing pandemic that has affected business across India, the release said.
Source: Business Standard
Committee suggests solutions for 29 out of 307 sectors assessed. The panel has suggested that the two year cutoff for the restructuring will begin after implementation of the resolution plan. The KV Kamath committee, set to submit its report on loan restructuring to the Reserve Bank of India (RBI) on Friday, is said to have identified six problem sectors, among them aviation, real estate, automobiles……
Source: Economic Times
Though Digital India has been a focus of the government for a few years now, evidence suggests that India lags still lags developed countries in this area. The pandemic has not spared India, and its effects on our economy have been catastrophic. To bounce back, we need to reinvigorate industrial production, business activity, and consumer confidence. One step that must be considered is the pursuit of trade modernisation through digitisation. Though Digital India has been a focus of the government for a few years now, evidence suggests that India lags still lags developed countries in this area. In fact, a report by Research and Information System for Developing Countries, from 2019, found that India’s digital transformation has neglected trade infrastructure and that the lack of value-adding digital services is hampering India’s international competitiveness. Covid-19 and the ensuing closures laid bare the problems that this lack of digitisation has caused in maintaining supply-chains. Far too many of the processes involved in trade, including customs clearance, must be conducted in person, including the need to sign documents, obtain postage, and hand over paper pouches to customs officials. Examples of documents that have been traditionally requiring paper-based transactions to process include commercial invoices, packing lists, bills of lading, freight manifests, arrival notices and insurance policies, and many more. In short, when India works from home, trade cannot continue, to the detriment of countless jobs, livelihoods, and economic revival. Fortunately, there are signs of movement on this issue with several steps taken by Customs to digitise the processes. In late April, the government also fast-tracked its approval process for digitised Bills of Lading. By accepting digital versions of these documents, India will take a major step forward in terms of its trade sector’s digital competitiveness. If we take the Bill of Lading as an example—it is a document that must travel from carrier to shipper to consignee and back to the carrier at the destination and, on the way, potentially go through several other stakeholders. By digitising this document, it is possible to transfer it in the right sequence from one stakeholder to the next with just a click of a button. And, on certain platforms, this document can go through blockchain that ensures there is an immutable audit trail and “permissioned” transparency. A study from the consultancy QBIS shed some light on just how costly this lack of competitiveness is, using the specific example of imports and exports through Nhava Sheva, India’s largest port. The consultants estimate that trade digitisation could save Nhava Sheva importers up to Rs 17 billion each year. Nationwide, the estimate of savings from trade digitisation could be as much as Rs 65 billion. While the pandemic has been devastating, it has also presented the opportunity for transformational change. Manufacturers are looking to diversify their sourcing operations; initially, most were evaluating Vietnam, Taiwan, and Thailand, but India is now gaining traction as a strong alternative. Research suggests that fuller participation in global value chains would lead to the creation of an estimated 40 million new jobs by 2025 and 80 million by 2030. These numbers come from pre-pandemic research, but point to the potential if better, more modern trade practices continue to be embraced. For rebuilding India’s economy, modernising our trade infrastructure so that India’s importers and exporters are not further strapped by long customs waits is key. The government should move more quickly on the digitisation of trade infrastructure. This will not only help India’s economy weather future supply-chain disruptions but also help bring about more production, jobs and prosperity.
Source: Financial Express
The rise in the use of digital technologies and Artificial Intelligence 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. 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 eorts 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 ve 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 fity-ve 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. Eorts 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 financial 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 sufficient 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 Artificial 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 afflict their respective export sectors.
Source: Economic Times
The Chairman Shri N K Singh and the Members of Fifteenth Finance Commission will hold a day long meeting with the Economic Advisory Council of the Commission tomorrow. The meeting is for a “Final discussion on GDP growth, tax buoyancy of the Centre and the States, GST compensation, revenue deficit grant and fiscal consolidation." The following members of the Economic Advisory Council are likely to attend tomorrow’s meeting: Pinaki Chakraborty, Dr. Prachi Mishra, Dr. Omkar Goswami, Dr. Sajjid Z Chenoy, Shri Neelkanth Mishra, Dr. Rathin Roy, Dr. D. K. Srivastava, Dr. Arvind Virmani, Dr. M. Govinda Rao, Dr. Sudipto Mundle, Dr. Shankar Acharya, Dr. Pronab Sen, Dr. Krishnamurthy Subramanian.
Source: PIB
The US-Taiwan relationship remains stirred in the wake of Taiwan’s demonstrated health leadership to combat Covid-19. India has always been cautious in engaging Taiwan since New Delhi established relations with Taipei in 1995. Indeed, this growing relationship between Delhi and Taipei have been held quietly, and India has been hesitant to acknowledge the warming relationship. Will PM Narendra Modi end India’s historic hesitation and redefine India-Taiwan relations when Delhi and Taipei are celebrating 25 years of their partnership? With ‘India-Taipei Association’ and ‘Taipei Economic and Cultural Center’ in Taipei and New Delhi, respectively, both sides have facilitated scalable business, tourism, culture, science and technology and people-to-people exchanges. Mutual efforts have by far resulted into a range of bilateral agreements covering agriculture, investment, customs cooperation, civil aviation, industrial cooperation, among others. Notably, with $7bn bilateral trade and over $350mn worth of investments in India, Taiwan’s Foxconn is reported to consider $1bn worth of investments to expand Apple iPhones assembling from India. Above all, New Delhi and Taipei have increasingly deepened mutual respect underpinned by openness, democracy and diversity as key principles for growth. The shared faith in freedom, human rights, justice and the rule of law continues to embolden their partnership. Moreover, Taiwan’s New Southbound Policy and India’s Act East Policy could steer a resilient and sustainable future, within and beyond their boundaries. In the stint to steer people and economies through the pandemic, New Delhi and Taipei could shape and strengthen digital healthcare, economic and security linkages. Furthermore, the two sides need to explore greater production and supply chains complementarities in cybersecurity, electric mobility, defence, biotech and medical technology, capital goods, chemicals, textiles and apparels, telecommunications and technology infrastructure, semiconductor industries and gems and jewellery. There is also a huge scope of accelerating two-way partnerships in construction and related engineering services, financial services, education and related services, smart city, transport and logistics infrastructure and related services as well as green and renewable energy. New Delhi and Taipei can also collaborate and undertake joint research and development initiatives in the field of organic farming. In fact, shared interest and combined wisdom, knowledge and expertise could potentially be turned into a mutual vision for developing sustainable agriculture systems within and beyond their boundaries. For example, New Delhi and Taipei could partner together with eastern South Asian countries including Bangladesh, Bhutan and Nepal, for such efforts. This way, the two sides can help a larger chunk of the world population in getting access to safer and nutritious food while fostering eco-friendly and organic food habits and practices. Cultivating and nurturing educational and cultural relations are other important avenues for deepening ties. Taiwan awards nearly 100 scholarships for Indian university students annually, and currently, about 2,400 Indian students are pursuing higher education in Taiwan across various streams. Similarly, more than 6,000 students have benefitted at various Indian universities from language training programme provided by Taiwan. Indian universities also host several Taiwan Education Centres where Indians can get a sense of Taiwan’s food and culture, learn Mandarin Chinese as well as get exposure to exciting higher education landscape in Taiwan. The US-Taiwan relationship remains stirred in the wake of Taiwan’s demonstrated health leadership to combat Covid-19. Furthermore, with 5G networks as a new front in the USChina trade war, the US has even expanded the Clean Network Program for enhanced data privacy, reliable and secured data flows, based upon internationally accepted digital trust standards, among others. Taiwanese telecoms and India’s Reliance Jio have been regarded as Clean 5G networks. The time is, therefore, ripe for breaking the barriers and creating a political framework between New Delhi and Taipei to reap the benefits of huge potential. Dialogue between political players will help better understand each other and will provide the necessary catalyst to the growing strategic and economic relationships in the emerging geo-economics landscape.
Source: Financial Express
The rupee witnessed high volatility in opening session on Friday amid heavy selling in domestic equities and a rebound in the American currency. At the interbank forex market, the domestic unit opened on a strong note at 73.38 against the US dollar, then gained further to quote at 73.35. The local unit, however, pared the initial gains and was trading at 73.46, up by just 1 paisa over its previous close. On Thursday, the rupee slumped 44 paise to close at 73.47 against the US dollar as rise in demand for the American currency from oil importers weighed on currency market sentiment. Forex traders said heavy selling in domestic equity markets and a rebound in American currency weighed on the rupee. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.04 per cent to 92.77. On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 464.61 points lower at 38,526.33, and the broader NSE Nifty fell 130.30 points to 11,397.15. Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 7.72 crore on Thursday, according to exchange data. Brent crude futures, the global oil benchmark, fell 0.93 per cent to USD 43.66 per barrel.
Source: Business Standard
The Deputy Minister of Trade, Industry and Competition, Fikile Majola, made the undertaking at a briefing of Parliament’s Select Committee on Trade and Industry, Economic Development, Small Business Development, Tourism, Employment and Labour. Government is committed to minimising the impact of COVID-19 on the clothing and textile industry. The Deputy Minister of Trade, Industry and Competition, Fikile Majola, made the undertaking at a briefing of Parliament's Select Committee on Trade and Industry, Economic Development, Small Business Development, Tourism, Employment and Labour. Briefing the committee on Tuesday, Majola said greater effort has been directed to the localisation of personal protective equipment (PPE) to boost the retail clothing, textile, footwear and leather (R-CTFL) industry, in light of the devastating effects of the pandemic. "Government is committed to reviving the sector, as it focuses on rebuilding manufacturing and to enable it to expand its capacity. We are working towards significantly reducing illegal imports to eliminate unfair competition against local retailers and manufacturers," said Majola in his briefing on progress made in the implementation of the industry's Master Plan. Majola said the sector is one of the key industries identified as critical in driving the economy of the country. The R-CTFL value chain is a major contributor to the South African economy, with CTFL retail playing a largr role in the manufacturing portion of the value chain. The value chain's total gross domestic product contribution is R74 billion. The R-CTFL Master Plan was signed in November 2019 with seven commitments. These included growing the local market, driving local sourcing, ending illegal imports and value chain transformation. During this period of the pandemic, specific focus has been placed on intensifying support for products such as surgical and consumer masks, respirators, medical textiles, leather and footwear products, and gloves. The support given includes ensuring adherence to procurement regulations and issuing of timely orders, matching of demand and supply, sourcing and ensuring availability of raw material in South Africa. National Treasury, in support of the Department of Trade, Industry and Competition, has called on all compliant, particularly local suppliers providing PPE commodities, to direct their offers to the Project Management Office (PMO), which has been set up for this purpose.
Source: Devdiscourse
Lenzing Group (Lenzing), a leader in sustainably produced wood-based specialty fibres, has announced the findings from its Global Consumer Perception Survey on Sustainable Raw Materials in Fashion and Home Textiles. The survey, which was conducted in early 2020, assessed the perceptions and behaviour of conscious consumers* towards sustainable clothing and home textile products**, as well as their views towards sustainable raw materials and product features. To understand consumer interest in sustainable materials and their current knowledge, a total of 9000 respondents across nine countries aged between 18 and 64 were surveyed using online questionnaires. The key findings of the survey provided a glimpse into consumer habits towards pursuing a sustainable lifestyle, their knowledge of the raw materials used in clothing and home textile products, their perception towards brands, and preferred product descriptions. Lenzing says the findings also reflected the imminent need for closer collaboration within the clothing and home textile industries to provide consumers with more transparent information about the products they purchase, in order to enhance consumer trust and maximize business potential. Three key findings of the survey are outlined below: Conscious Consumers actively engage in pursuing a sustainable lifestyle and are constantly educating themselves about raw materials Almost all (86%) of respondents believe purchasing clothes made from sustainable raw materials is a key component of living a more sustainable lifestyle, and they frequently purchase products from brands that are committed to using sustainable raw materials (80%) or recycled materials (77%) in their products. The survey also revealed that the majority of respondents actively learn about sustainability through researching the production process of products before purchasing (76% in clothing and 74% in bedding and home textiles). They also tend to read label hangtags (88% in clothing and 86% in bedding and home textiles), and most respondents are willing to pay an average of 40% more for clothing or home textile products with descriptions that reflect sustainability. When shopping for clothing and home textile products, respondents consider the material type to be their most important consideration (ranked in the top three factors for consideration by 44% of respondents), which is above price, design, brand reputation and function. Products described as ‘Eco-friendly’ or ‘Natural’ with a ‘Biodegradable’ or ‘Recyclable’ afterlife appeal to consumers When asked about definition of sustainable clothing, respondents considered products being processed or manufactured using humane, eco-responsible production processes and products made from natural, organic or botanic materials as top considerations. Over 80% of respondents expressed that they are “extremely interested” or “very interested” in sustainable fashion and purchasing clothing made from sustainable raw materials. When asked about their preference for clothing and home textile products, half of the respondents said they would be more likely to purchase a product described as “ecofriendly” or “natural”, whereas over 60% of respondents are more likely to purchase products with a “recyclable” or “biodegradable” afterlife. Given the popularity of such terms, there are opportunities for brands to provide more descriptions and greater clarity to the materials, production processes and product afterlife information to their products as consumer education. Brands with greater transparency on raw materials and ingredients can gain consumer trust Most respondents considered brands that are transparent with their ingredients (83%) and the origin of their raw materials (82%) as trustworthy. At the same time, respondents also consider brands that are transparent about their production processes (82%), sustainable practices (81%) and where their raw materials come from (82%) as trusted brands. While respondents believed that knowing what raw materials were used in their clothing and home textile products is important to build confidence in a brand (87%), they also believed that knowing the brand’s environmental impact when deciding to purchase (87%) is very important. “The findings of this survey prove the value of Lenzing’s ongoing efforts in driving the sustainability dialogue across the textile supply chain, from yarn makers to consumer brands. Based on the survey, we gained a more comprehensive understanding of consumer perceptions globally. The rating of material type being the top consideration factor when shopping for clothing and home textile products has also echoed our belief that consumers value and actively look out for sustainable products. This survey provided us, our partners and brands with insights to curate more targeted strategies and programs to drive sustainability, not only on raw materials, but also product afterlife. In the long run, we hope to bring optimal value for the clothing and home textiles industry supply chain and help brands achieve new heights, drive sustainability and safeguard our planet.” said Florian Heubrandner, Vice President of Global Business Management Textiles at Lenzing. Collaboration in the fashion and textiles industry is essential for driving greater transparency Though sustainability has been a hot topic among brands, to enhance transparency, there is still room for the supply chain to evolve communications on raw materials, production process and product afterlife, Lenzing says. Given consumers are already actively searching for sustainable products, it is important for the industry and brands to revolutionize how technical knowledge is translated into consumer language on websites, product tags and labels, the company adds. To drive change, Lenzing says it has been taking the lead with a three-pillar approach to increase industry collaboration and shift towards sustainability by ensuring a higher degree of transparency and enabling verification of raw material origin from production process to final garment. The three-pillar approach covers special fibre identification technology, a blockchain-based tracking system, and proactive supply chain collaboration and planning. Such approach is also complemented by Lenzing’s bespoke e-branding platform for manufacturers and brands, providing one-stop support for fabric certification, including fabric testing, identification numbers and hangtags to offer reassurance that sustainability is in every step of the supply chain. “We are thrilled to see more consumers embrace a sustainable fashion lifestyle by making informed purchases based on research and reading product labels. With rising consumer expectations towards sustainability, over the past few years, we have been transforming and upgrading the Tencel brand experience through proactive engagement programs on sustainable cellulosic fibres,” said Harold Weghorst, Vice President of Global Brand Management at Lenzing. “Consumer interest in eco-friendly and biodegradable products aligns with our ongoing commitment to bring brands and consumers more sustainable and biodegradable options to the clothing and home textile industries. Derived from sustainably sourced wood, Tencel branded fibres offer breathability, quality and biodegradability to clothing and home textile fabrics that are used in our everyday lives. While we continue to advocate for innovation in sustainable raw materials, we will continue to go beyond fibres and look for new ways to engage brands and consumers, enabling them to embrace sustainability anytime, anywhere,” added Weghorst. The survey which was commissioned by Lenzing in partnership with Wakefield Research, a market research firm, surveyed online a total of 9000 respondents aged between 18 and 64 from nine countries including China, Japan, Korea, India, Indonesia, Turkey, Germany, U.K. and the U.S. in early 2020. *Refers to consumers who: 1) Are image-conscious and value eco-friendly products; 2) Believe that brands play an important role by acting ethically, producing sustainable products and giving back to their communities; 3) Are influenced by deals, others' opinions and environmentally friendly practices of companies and 4) Have purchased clothes and home textiles within the past 2 years. **Home textile products include bedding, draperies, carpets, towels, etc.
Source: Innovation in Textiles
Consumers are becoming increasingly picky about sustainable clothing and home textiles, narrowing down to raw materials used. Team Viva interprets a survey of post-pandemic choices To understand consumer interest in sustainable materials and their current knowledge, Lenzing Group (Lenzing), a global leader in sustainably produced wood-based specialty fibers, announced findings from its global consumer perception survey. It assessed the perception and behaviour of the conscious consumer towards sustainable clothing, home textiles and raw materials. A total of 9,000 respondents across nine countries aged between 18 and 64 were surveyed using online questionnaires. The report provided a glimpse into consumer habits towards pursuing a sustainable lifestyle, their knowledge of the raw materials and home textiles, their perception towards the brands and preferred product descriptions. The survey also reflected the need for closer collaboration within the clothing and home textile industries to provide consumers with more transparent information about the products that they purchase. Here are the key findings of the survey: Conscious consumers actively engage in pursuing a sustainable lifestyle and are constantly educating themselves about raw materials. Almost all (86 per cent) respondents believed in purchasing clothes made from sustainable raw materials. It was a key component of living a more sustainable lifestyle. They frequently purchased products from the brands that are committed to using sustainable raw materials (80 per cent) or recycled products (77 per cent). The survey revealed that the majority of respondents actively learned about sustainability through researching the production process of the products (76 per cent in clothing and 74 per cent in bedding and home textiles). They also tend to read label hang tags (88 per cent in clothing and 86 per cent in bedding and home textiles). Most of the respondents were willing to pay an average of 40 per cent more for clothing or home textile products with descriptions that reflect sustainability. When shopping for clothes and home textile products, around 44 per cent of the respondents considered the material type to be their most important choice, which was above price, design, brand reputation and function. Products described as eco-friendly or natural with a biodegradable or recyclable afterlife appeal to consumers. When asked about the definition of sustainable clothing, respondents considered products being processed or manufactured using eco-responsible techniques. They preferred products made from natural, organic or botanic materials. Over 80 per cent of the respondents expressed that they were “extremely interested” or “very interested” in slow fashion and purchasing clothes made from sustainable raw materials. When asked about their preference for clothing and home textiles, half of them said that they would be more likely to purchase a product described as “eco-friendly” or “natural”. Whereas over 60 per cent of respondents were more likely to purchase products with a “recyclable” or “biodegradable” afterlife. Given the popularity of such terms, brands should provide greater clarity and detailed information to the customers about the materials that they have used, production process and afterlife of the product. Brands with greater transparency on raw materials and ingredients can gain consumer trust. Most of the respondents considered brands that were transparent with their ingredients (83 per cent) and the origin of their raw materials (82 per cent) as trustworthy. At the same time, they also considered brands that were transparent about their production process (82 per cent), sustainable practices (81 per cent) and where their raw material comes from (82 per cent) as trusted ones. Approximately 87 per cent of the respondents believed that knowing what raw materials were used in their clothing and home textile products was important to build confidence in a brand. “The findings of this survey prove the value of the group’s ongoing efforts in driving the sustainability dialogue across the textile supply chain, from yarn makers to consumer brands. Based on the survey, we gained a more comprehensive understanding of consumer perceptions globally. The rating of material type being the top consideration factor when shopping for clothing and home textile products has also echoed our belief that consumers value and actively look out for sustainable products. This survey provided us, our partners and brands with insights to curate more targeted strategies and programmes to drive sustainability, not only on raw materials, but also product afterlife. In the long run, we hope to bring optimal value for the clothing and home textiles industry supply chain and help brands achieve new heights, drive sustainability and safeguard our planet,” said Florian Heubrandner, Vice President of Global Business Management Textiles at Lenzing. Collaboration in the fashion and textile industry is essential for driving greater transparency. Though sustainability has been a hot topic among brands to enhance transparency, there is still room for the supply chain to evolve communications on raw materials, production process and product afterlife. Given consumers are already actively searching for sustainable products, it is important for the industry and brands to revolutionise how technical knowledge is translated into consumer language on websites, product tags and labels. To drive this change, the company has been taking the lead with a three-pillar approach to increase industry collaboration and shift towards sustainability by ensuring a higher degree of transparency and enabling verification of raw material origin from production process to final garment. The three-pillar approach covers special fiber identification technology, a blockchain-based tracking system and proactive supply chain collaboration and planning. “We are thrilled to see more consumers embrace a sustainable fashion lifestyle by making informed purchases based on research and reading product labels. With rising consumer expectations towards sustainability, over the past few years, we have been transforming and upgrading the Tencel brand experience through proactive engagement programmes on sustainable cellulosic fibers,” said Harold Weghorst, Vice President of Global Brand Management at Lenzing. “Consumer interest in eco-friendly and biodegradable products aligns with our ongoing commitment to bring brands and consumers more sustainable and biodegradable options to the clothing and home textile industries. Derived from sustainably sourced wood, Tencel branded fibers offer breathability, quality and biodegradability to clothing and home textile fabrics that are used in our everyday lives. While we continue to advocate for innovation in sustainable raw materials, we will continue to go beyond fibers and look for new ways to engage brands and consumers, enabling them to embrace sustainability anytime, anywhere,” added Weghorst.
Source: Daily Pioneer
The government must formulate long-term, durable, and consistent policies to bring up textile manufacturing and exports that have been stuck in a downward spiral for a longtime, an industry official said on Thursday. “Since 1950s, the textile sector has been the main driving force of our economy, with more than 60 percent share in our total exports and offers employment to almost 40 percent of our work force,” said Sheikh Sultan Rehman, Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in a webinar. The online interactive session titled “Textile Industry of Pakistan: Challenges & Way Forward” was organised by FPCCI Karachi via video link. “However, there has been a decline in our manufacturing as well as exports of textile products in recent years.” Rehman said the government must take immediate measures for the timely refunds of sales and income tax, issuance of income tax exemptions on utility bills, and resolve issues faced by this export-oriented sector. During the discussion, Naqi Bari, CEO Bari Textile Mills, said, “The decline in the production of cotton has increased the cost of manufacturing textile products which have ultimately affected our exports Pakistan”. “We must increase our cotton production along with value addition to increase our exports,” Bari added. Danish Javed, Convener FPCCI Standing Committee on Bedwear, said, “Bangladesh learned from our success in the textile sector and implemented effective policies, which helped their textile sector and economy to grow a lot”. Javed said the government should exempt import of spare parts for textile machinery from duties and restore zero-rating to get the exporters out of the ongoing liquidity crunch. Chaudhry Muhammad Nawaz, Chairman All Pakistan Cotton Power Looms Association, said, “This sub-sector mainly comprises SMEs that are severely affected in present times and need special support from government to revive again”. Nawaz highlighted that commercial banks were reluctant to extend financing to SMEs particularly in Faisalabad. A representative from All Pakistan Textile Mills Association (APTMA) said, “Issues of regionally uncompetitive industrial tariffs as well as high turnover taxes are one of the few major reasons of continuous decline in the manufacturing of textile in the economy”. “We should learn from the examples of Bangladesh and Vietnam that timely addressed these issues and now their textile sectors are playing an important role in their economic development,” the APTMA official said. Qaisra Sheikh, Coordinator Women Entrepreneurs FPCCI, said, “The FPCCI is the most relevant platform for the business communities to address these issues”. Shagufta Rehman, Senior Vice President Women CCI Lahore stated the government must extend support to women entrepreneurs particularly belonging to textile sector. Taking the opportunity, she also identified the issue of commercial banks’ reluctance to release the loans to women entrepreneurs.
Source: The News
Washington, DC — The following letter was sent by the Agoa Action Coalition to the chairman of the U.S. House Ways and Means Subcommittee on Trade Earl Blumenauer (Democrat-Oregon), as well as the chairman of the full committee, Richard Neal (Democrat-Massachusetts) and ranking Committee member Kevin Brady (RepublicanTexas), and ranking Trade Subcommittee member Vern Buchanan (RepublicanFlorida). Dear Honorable Chairman Blumenauer & Honorable Members: We write to convey our deep concern regarding proposed changes to the US Generalized System of Preferences program (GSP) which threaten to vitiate key provisions of the African Growth and Opportunity Act (Agoa), the genuinely bipartisan measure that for the past 20 years has been the cornerstone of US economic engagement with the nations of Africa. If adopted when GSP is renewed, as it needs to be by the end of the year, these changes would cause gratuitous hardship in a region already reeling from the impact of COVID19. They would, furthermore, severely damage our nation’s standing in the continent as a strategic development and trade partner and would hand global competitors, China in particular, a massive free win. In the name of GSP “modernization”, lobbyists for US apparel importers want Congress to extend to all GSP beneficiary countries duty-free tariff treatment that have, heretofore, been designated for eligible Agoa countries and a few of our neighbors in the Western Hemisphere such as Haiti in order to boost garment sectors in critical need of preferential trade concessions. From its inception, GSP has specifically excluded preferential treatment for textiles and apparel. This has given US policy makers a powerful tool to advance US goals and interests by granting exceptions designed to help selected trading partners to attract investment in their textile and clothing sectors in order to fight destabilizing poverty and grow as markets for US goods and services. Successive administrations, working with Congress, have used these exceptions to bolster the economies not just of Africa through Agoa but also of our neighbors in the Western Hemisphere through free trade agreements and unilaterally-extended preferences including the Caribbean Basin Trade Partnership Act, the Dominican Republic-Central American Free Trade Agreement, and the Haiti HOPE/Help Act. All these programs and agreements would be gutted by the so-called GSP “modernization” now being pushed by certain special interests. Put simply, preferences for all mean preferences for none. If investors and margin-hungry sourcing managers see that GSP countries like Pakistan, Cambodia, Indonesia and the Philippines which already have a substantial share of the US clothing market at normal tariff rates are now to be eligible to access the US market duty-free, investment in and orders for African production will promptly be diverted to these countries. Even without duty-free treatment, each of these countries is already a supra-competitive apparel exporter. The biggest benefit resulting from GSP treatment for them would simply be a tax cut for the US apparel importers. For example, Indonesia apparel exports to the U.S. in 2019 totaled $4.9 billion[1] – triple the apparel exports of all 46 Sub-Saharan African countries combined valued at $1.4 billion[2]. African apparel is competitive only with the Agoa duty-free preference. If the same duty-free preference is extended to these super-competitive mega-producers, African apparel producers will be driven out of business. The encouraging Agoa-stimulated trends we have seen in African supply capacity and exports to the US will be reversed, threatening to push millions back into poverty, the majority of them women, as the continent grapples with the human and economic toll of the novel coronavirus. And the damage will not be restricted to Africa. The pain will be felt by our hemispheric neighbors as well. As members of the uniquely broad coalition that successfully championed Agoa and the historic paradigm shift it represented in US-Africa relations, we urgently request that any move that might extend Agoa’s apparel preferences to beneficiaries beyond those originally intended be strenuously resisted.
Source: All Africa
