The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 15 April, 2015

NATIONAL

 

INTERNATIONAL

 

Textile Raw Material Price 2015-04-14

Item

Price

Unit

Fluctuation

PSF

1154.36

USD/Ton

0%

VSF

1925.29

USD/Ton

0.43%

ASF

2447.40

USD/Ton

0%

Polyester POY

1248.17

USD/Ton

0%

Nylon FDY

3051.09

USD/Ton

0%

40D Spandex

6607.98

USD/Ton

0%

Nylon DTY

3344.78

USD/Ton

0%

Viscose Long Filament

5808.50

USD/Ton

0%

Polyester DTY

1509.23

USD/Ton

0%

Nylon POY

2855.30

USD/Ton

0%

Acrylic Top 3D

2594.24

USD/Ton

0%

Polyester FDY

1460.28

USD/Ton

0%

30S Spun Rayon Yarn

2618.72

USD/Ton

0%

32S Polyester Yarn

1892.66

USD/Ton

0%

45S T/C Yarn

2887.93

USD/Ton

0%

45S Polyester Yarn

2023.18

USD/Ton

0%

T/C Yarn 65/35 32S

2480.03

USD/Ton

0%

40S Rayon Yarn

2773.72

USD/Ton

0%

T/R Yarn 65/35 32S

2610.56

USD/Ton

0%

10S Denim Fabric

1.14

USD/Meter

0%

32S Twill Fabric

1.00

USD/Meter

0%

40S Combed Poplin

1.35

USD/Meter

0%

30S Rayon Fabric

0.77

USD/Meter

0%

45S T/C Fabric

0.79

USD/Meter

0%

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.16316 USD dtd. 15/04/2015)

The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

 

Taiwan keen to penetrate their technical textile products in India

Taiwan Textile Federation (TTF) and the Bureau of Foreign Trade (BOFT) formed Taiwan Pavilion jointly with Taiwan Composites Association (TCA) to display Taiwan’s latest textiles and composites at Technotex 2015 that took place last weekend in Mumbai at Bombay Convention Exhibition Centre, Goregaon. Taiwan participated with 18 companies producing high-end composites, innovative technical textiles, raw materials, accessories and nonwoven machinery. Sean Tsai, Taiwan Textile Federation said that the Indian industry – functional, technical and composite – is growing at a great pace. The Indian composite industry is pegged at Rs. 15,000 crore with an expected growth of 15% per annum over the next four years.

The need of the hour for Indian manufacturing is quality, reliability and consistency. Taiwan is one of the very few suppliers in the world who can fulfil the above criteria and help the industry grow exponentially.  The Indian technical textile industry is around Rs. 24,000 crores (10% of global market) and expected annual growth rate is 10%.India is a very dynamic market with a lot of potential and scope for Taiwanese companies to expand their export market. Taiwanese composite and technical textile companies are keen to penetrate their products in India with the growing demand and consumption of technical textiles, continued Sean Tsai.

The multiple industries and sectors Taiwan is focusing on are automotive, defence, police, fire departments, sports gear and apparel, rainwear, outdoor tents and canopies, protective and safety products, architecture and construction, logistics and warehousing, public sector units (PSU), home textiles, composite textiles (FRP, fibreglass and carbon fibre), nonwoven machinery, public transportation, luggage and footwear, electronics and appliance, etc.

Taiwan’s functional textiles market has invested a lot of resources in textile technology innovation, the federation reports. Today, they produce fabrics, which are anti-bacteria, water repellent, and moisture transferring amongst others. This is why most of the largest sportswear and outerwear manufacturers and retailers usually source active wear fabric from Taiwan, the organisation believes. Taiwan has an international reputation for technical textile development. Companies are exhibiting a wide range of application fields like protective, performance functional, eco-friendly, mobile, non-woven and new materials for architectural and geotechnical construction.

The composites industry is one of the key industries in Taiwan and has been in development in Taiwan for the past sixty years. Taiwan stands fourth in the world in the carbon fibre capacity and 30% of electronic grade glass fibres are manufactured in Taiwan. Products exhibited at Taiwan’s pavilion included nylon 6/66 chip and performance filament, high tenacity yarn, multi-functional fabric / 2-4 laminated fabric, protective fabric, rainwear fabric and synthetic leather, TPU, performance zipper and apparel accessory, nonwoven machinery, and reinforced fabrics / FRP.

SOURCE: Yarns&Fibres

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India 19th in the list of top 30 merchandise exporters

India's rank remained unchanged at 19th in 2014 among the top 30 merchandise exporters of the world, while China continues to hold the top slot, according to the WTO report.  Similarly, New Delhi's rank as a leading importer too has not changed in 2014 at 12th position. In imports, the US topped the list.  In 2014, India's exports stood at $ 317 billion while imports were $ 460 billion. In 2013, the country's outbound and inbound shipments aggregated at $ 312 billion and $ 466 billion respectively.  "India suffered a bit of a slowdown in 2013 but recovered in 2014. So its import demand has picked up and its exports are holding up," Economic Affairs Officer Coleman Nee told PTI.

India's exports by volume fell from 8.5 per cent in 2013 to 3.5 per cent in 2014 while 2013 had been a bad year for India in terms of imports by volume rebounded from - 0.3 per cent in 2013 to 2.9 per cent in 2014. Further India has slipped to 8th and 10th rank last year amongst the top 30 leading exporters and importers of commercial services respectively. Its position was 6th and 7th in 2013. This list was topped by the US in both exports and imports.  In 2014, India's commercial services exports aggregated at $ 154 billion while imports were $ 124 billion.

Indian government has recently announced incentives and new institutional mechanisms as part of the new Foreign Trade Policy to nearly double country's goods and services exports to $ 900 billion by 2019-2020.  India figured fifth for exports and sixth for imports for commercial services excluding intra-EU trade for 2014.  The report said that China registered the highest merchandise trade by value in 2014 with $ 2,343 billion worth of exports but the US sustained the world imports at $ 2,409 billion.  The total world merchandise exports was $ 18,427 billion whereas imports were $ 18, 574 billion.  "South-South trade represented 52 per cent of developing countries' exports in 2014 which mean developing countries today trade on average more with other developing countries than rich, industrialized countries...It shows a shift in the economic but also the political governance of the world economy," said chief statistician of WTO, Hubert Escaith.

SOURCE: The Economic Times

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Narendra Modi seeks Angela Merkel's help in early conclusion of FTA with EU

Prime Minister Narendra Modi today announced that a mechanism will be established to facilitate investment and business from Germany as the two countries agreed to broaden bilateral economic cooperation.  Modi made the announcement after talks here with German Chancellor Angela Merkel who both had interactions in the last two days after the inauguration of Hannover Fair and the India Pavillion there.  "I feel deeply encouraged by the enthusiasm and interest that I have seen in Chancellor Merkel and Germany. Equally, the feedback that I have got will be of great benefit to me in framing our policies.  "I have also decided that we will establish a mechanism for German companies to facilitate their investment and business in India," he said in a joint media interaction along with Merkel.

Modi said the objective of his visit to Germany was not only to invite the German industry to India, but to assure them that "they would find an open and stable environment, which would be easy to do business in; and that they will have my full support to invest and work in India."  In her remarks Merkel said the two countries have decided to develop a broad-based relationship.  She said the two sides have agreed that bilateral economic cooperation will be developed further when she visits India in October.  "I will bring a number of cabinet members along with me and take stalk of our relationship at political level," she said.

A joint statement issued at the end of his three-day visit said the two countries have established a robust roadmap for expanding their multi-faceted and mutually-beneficial ties and to further strengthen strategic partnership.  Earlier, Modi, who is in Berlin on the second leg of his three-nation tour, was accorded a ceremonial welcome.  "Yesterday in Hannover, she (Merkel) accepted the invitation of India's Lion to raise the level of Germany's engagement in India and assured me of a strong response by Germany's Eagle. I believe that there will be a strong partnership between the King of the Earth, Lion and the King of the Skies, the Eagle," he told reporters after his talks with Merkel.  "We look forward to our 3rd Inter-Governmental Consultations (IGC) in India in October 2015. Our Strategic Partnership is entering a new and more intensive phase," the two leaders said in the joint statement.  "We view each other's development as mutually reinforcing and offering significant opportunities for expanding cooperation between the two countries.  "Our common objective is to encourage greater synergies between German engineering, experience in sustainable development, innovation and skills, and the new opportunities available in India and through 'Make in India', 'Clean India', 'Digital India' and other initiatives towards achieving economic growth and sustainable development," they said.

The two leaders said they were exploring ways of expanding bilateral dialogue on foreign policy and security issues."Taking our partnership into the future, we will also work together on meeting global challenges such as climate change, energy and food security," the two leaders said.  The two sides also agreed to take proactive steps to advance their collaboration in manufacturing, skill development, urban development, environment, railways, cleaning of rivers, renewable energy, education, language and science and technology. "Germany is a strong partner in the development of clean energy. We would also like your cooperation on manufacturing of equipment for clean and renewable energy in India; and enhance our shared efforts to address the challenge of climate change," Modi said.  "We would also like to enhance our cooperation in the area of advanced technology and defence manufacturing. I hope that the German companies would participate enthusiastically in this and that your government would support them fully." He said he also discussed international developments with Merkel.

"We in India believe that economic momentum in Europe is important for the global economy and European stability for global peace. The world looks to Germany for leadership in addressing both challenges. I also congratulate her on the successful outcome of talks with Iran. This will be beneficial for the entire region. Instability and violence in West Asia affects the security of our citizens at home. "Peaceful and democratic development of Afghanistan is important for both of us. The direction that Asia-Pacific region will take in this century will be of great significance to the entire world," he said. Responding to a question, Modi said during his discussion with German business leaders he could feel that they are ready to work with India in sectors like skill development, vocational education, technology upgradation and defence manufacturing. Earlier in the day, PM Modi met the CEO of Allianz, Oliver Baete in the German capital. Modi also then met the Foreign Minister of Germany Frank-Walter Steinmeier. The leaders were accompanied by a high-level delegation and held bilateral talks.

SOURCE: The Economic Times

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India-EU FTA would require compromises by all sides: Angela Merkel

A Free Trade Agreement between India and the EU would require "compromises" by all sides, German Chancellor Angela Merkel said today as Prime Minister Narendra Modi sought her help for an early conclusion of a "balanced and mutually beneficial" deal, stalled for two years.  "I have requested Chancellor Merkel that India and European Union should resume the negotiations quickly and conclude a balanced and mutually beneficial agreement at the earliest," Modi said during a joint press conference with German Chancellor after a meeting with her.  "Development of India as a manufacturing hub and expansion of infrastructure of India would also be beneficial for trade. Our imports would also grow. And, it is natural that German companies would benefit a lot from it.  "In this context, I would also like to state that negotiations between India and European Union on a Broad-based Trade and Investment Agreement have remained stalled for two years," he said.

Speaking alongside Modi, Merkel said, "We have decided that talks should continue between India and the EU. We have come a long way and it would be desirable if we crossed the hurdle. It will require compromises by all sides. India's concerns will also require to be addressed," Merkel said.  Launched in June 2007, negotiations for the proposed Broad-based Trade and Investment Agreement (BTIA) between India and the 28-member European bloc have witnessed many hurdles as both the sides have major differences on crucial issues.  The two sides are yet to iron out issues related to tariffs and movement of professionals but the EU has shown an inclination to restart talks.

In May, 2013, both sides failed to bridge substantial gaps on crucial issues, including data security status for IT sector.  Besides demanding significant duty cuts in automobiles, the EU wants tax reduction in wines, spirits and dairy products, and a strong intellectual property regime.  On the other hand, India is asking for granting 'data secure nation' status to it by the EU. The country is among nations not considered data secure by the EU.  The matter is crucial as it will have a bearing on Indian IT companies wanting market access.  The EU law mandates that European countries doing outsourcing business with countries that are not certified as data secure have to follow stringent contractual obligations which increases operating costs and affects competitiveness. India also wants liberalised visa norms for its professionals and market access in services and pharmaceuticals sector.  The two-way commerce stood at USD 101.5 billion in 2013-14. It was USD 57.25 billion during April-October last fiscal.

SOURCE: The Economic Times

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India, Australia discuss steps to boost investment

India and Australia today discussed ways to step up bilateral investment and trade at a meeting between Finance Minister Arun Jaitley and Australian Foreign Minister Julie Bishop.  The issues that came up for discussion include India's measures in the past 10 months to attract foreign investments, various reforms like opening up the insurance sector.  Jaitley also briefed Bishop on various steps taken to ease doing business in India, including by making taxation system non-adversarial.  "India has global advantage vis-a vis-other countries in terms of faster growth and high investment opportunities," Jaitley said.

He also highlighted that domestic consumption demand is high in India and there is a scope for foreign companies to set up businesses in the country.  India is at present the 10th largest trading partner of Australia with a two-way trade of $15 billion.  Jaitley also said that India is in the process of implementing the indirect tax reforms Goods and Services Tax ( GST), and will spend more in irrigation, rural infrastructure and agriculture sector in the coming years. During her four-day visit, the Australian foreign minister will travel to Chennai to inaugurate the Consulate General and participate in an India-Australia business event on Wednesday.

SOURCE: The Economic Times

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India's growth to exceed China's in FY16, says IMF

The International Monetary Fund (IMF) on Tuesday projected the Indian economy to grow 7.5 per cent in 2015-16, more than China, owing to a rise in disposable income and a pick-up in investment due to recent policy reforms. However, it also projected the same growth for India in 2016-17 and said growth wouldn’t exceed 7.8 per cent till 2020-21. This seems a far cry from the expectation of Arvind Panagariya, vice-chairman of the National Institution for Transforming India (NITI) Aayog, who has said the economy could clock annual growth of 8-10 per cent through the next 15 years.

For 2016, economic growth in China is estimated at 6.8 per cent. It is estimated to fall to 6.3 per cent in 2017 and continue at that level till 2020. The World Bank, meanwhile, said India’s economic growth could touch eight per cent in 2017-18 from 7.5 per cent in 2015-16, owing to an estimated investment growth of 12 per cent during FY16-FY18. The IMF and the World Bank projections come ahead of the scheduled spring meetings of the two entities in Washington on April 17-19. According to official advance estimates, the Indian economy is projected to have grown 7.4 per cent in 2014-15, the same pace seen by China in 2014. For 2015-16, the Economic Survey projects India to grow 8.1-8.5 per cent, higher than the IMF forecast.

For 2015 and 2016, global growth was pegged at 3.5 per cent (unchanged from an earlier projection) and 3.8 per cent (against a 3.7 per cent forecast in January), respectively. The global economy grew 3.4 per cent in 2014. IMF also projected retail inflation in India at 6.1 per cent in 2015-16 and 5.7 per cent in 2016-17. If this is actually the case, inflation would be in line with the Reserve Bank of India’s target of six per cent by January 2016. The IMF said India’s current account deficit would narrow to 1.3 per cent of gross domestic product this financial year from 1.4 per cent in 2014-15. However, it might widen to 1.6 per cent in 2016-17.

The IMF attributed a pick-up in growth to low oil prices and a boost in investment, following recent policy reforms by the government. “Lower oil prices will raise real disposable incomes, particularly among poorer households, and help drive down inflation,” it said. It added early evidence suggested in oil importing regions — from the US and the Euro zone to China and India — the increase in real income was leading to a rise in spending. “Oil exporters have cut spending but to a smaller extent…many have substantial financial reserves and are in a position to reduce spending slowly,” Olivier Blanchard of the IMF said at a conference in Washington.

In its South Asia Economic Focus report, the World Bank said, “The country (India) is attempting to shift from consumption- to investment-led growth, at a time when China is undergoing the opposite transition.” The IMF advised India to strive to remove infrastructure bottlenecks in the power sector and implement education, labour and product market reforms to raise competitiveness and productivity. “In India, the post-election recovery of confidence and lower oil prices offer an opportunity to pursue such structural reforms,” it said.

The World Bank report noted India had already taken encouraging steps to decouple international oil prices from fiscal deficits and introduce carbon taxation to address the adverse impact of the use of fossil fuels. The challenge, it said, would be to stay on course in the event of oil price increases, which were possible in the medium term. On Monday, Panagariya had said he expected the economy to grow 8-10 per cent annually through the next 15 years. “If the economy actually grows 8-10 per cent in rupee terms, in dollar terms, it will be 11-12 per cent. That kind of growth will turn India into an $8-trillion economy from the current $2 trillion,” he had said.

SOURCE: The Business Standard

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Jayant Sinha discusses opportunities for future trade ties with UAE

India has told the UAE that it welcomes any feedback from it on the hurdles Emirati investors face in the country. Minister of State for Finance Jayant Sinha assured this to UAE Minister of State for Financial Affairs Obaid Humaid Al Tayer during a meeting yesterday.  During the meeting, they discussed the political, trade and economic opportunities for future cooperation between the two countries.  Sinha said he welcomes any feedback on any hurdles that may face Emirati investment in India.

Tayer who welcomed the visiting delegation yesterday stressed the importance of the historical ties enjoyed by the UAE and India, especially with regard to investments.  The two sides stressed the importance of the historical ties between the UAE and India in the domain of investments in particular, according to an official statement.  The volume of trade between the two countries reached $ 75 billion for 2012-2013, the statement said.  "The UAE embraces a large number of Indian projects and companies, whereby Emirati investments entities work on consolidating their presence in the Indian market as it is considered as one of the most markets expanding globally," Tayer said in the statement.  The UAE is home to a large number of Indian projects and companies, whereby Emirati investments entities work on consolidating their presence in India, considered as one of the world's biggest expanding markets.

SOURCE: The Economic Times

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Global crude oil price of Indian Basket was US$ 57.44 per bbl on 14.04.2015

The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 57.44 per barrel (bbl) on 14.04.2015. This was lower than the price of US$ 57.56 per bbl on previous publishing day of 13.04.2015.

In rupee terms, the price of Indian Basket decreased to Rs 3583.68 per bbl on 14.04.2015 as compared to Rs 3591.17 per bbl on 13.04.2015. Rupee closed at Rs 62.39 per US$ on 13.04.2015

Particulars

Unit

Price on April 14, 2015 (Previous trading day i.e. 13.04.2015)

Pricing Fortnight for 01.04.2015

(Mar 12 to Mar 27, 2015)

Crude Oil (Indian Basket)

($/bbl)

57.44   (57.56)

53.61

(Rs/bbl

3583.68   (3591.17)

3352.77

Exchange Rate

  (Rs/$)

62.39

62.54

RBI reference rate for 14.04.2015 is not available, therefore rate as of 13.04.2015 has been considered.

SOURCE: PIB

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China’s textile & apparel exports growth slides in Q1

 The growth rate of China’s textile and apparel exports slowed down in the first quarter of 2015. In January-March 2015 quarter, China’s total textile and apparel exports were valued at US$ 59.78 billion, registering an increase of 2.9 per cent year-on-year, according to the latest Customs data. Category-wise, textile exports fetched $23.99 billion, growing at 4.2 per cent year-on-year, while apparel exports earned $35.79 billion, rising at 2 per cent.

China’s textile and garment exports were affected by the Spring Festival in January, and showed a sharp rebound in February. Although no longer affected by seasonal factors, March exports declined sharply notching $12.57 billion, down 32.6 per cent year-on-year. Of this, textile exports dropped 29 per cent to $5.88 billion, whereas garment exports declined 35.4 per cent to $6.69 billion. Industry analysts, however, foresee an improvement in China’s textile and clothing exports in the second half of 2015. (RKS)

SOURCE: Fibre2fashion

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World trade to expand by 3.3% in 2015, 4% next year: WTO

Global trade is set to expand by 3.3 per cent this year and 4 per cent next year on account of cut in protectionist measures and improving market access, according to the World Trade Organisation's forecast.  The forecast is a good news for India which is aiming to increase its share in the global trade to 3.5 per cent from the current 2 per cent by 2020. It is aiming to nearly double its goods and services exports to $ 900 billion by 2019-2020. "Growth in the volume of world merchandise trade will pick up only slightly over the next two years, rising from 2.8 per cent in 2014 to 3.3 per cent in 2015 and eventually to 4 per cent in 2016," it said in a statement.  However, it said that the trade expansion will remain well below the annual average of 5.1 per cent posted since 1990.

Director-General Roberto Azevedo said that trade growth has been disappointing in recent years, largely due to prolonged sluggish growth in the global GDP following the financial crisis.  "Looking forward we expect trade to continue its slow recovery but with economic growth still fragile and continued geopolitical tensions, this trend could easily be undermined.  "By withdrawing protectionist measures, improving market access, avoiding policies which distort competition and striving to agree reforms to global trade rules, governments can boost trade and seize the opportunities that it offers for everyone," he said.

Citing reasons for slow growth in 2014, it said slowing GDP growth in emerging economies, an uneven recovery in developed countries, and rising geopolitical tensions, among others are the main factors.  Strong exchange rate fluctuations, including a 14 per cent appreciation of the US dollar against other currencies between July and March, have further complicated the trade situation and outlook, it added.  It said that exports of developing and emerging economies are forecast to grow 3.6 per cent in 2015, while their imports are expected to increase by 3.7 per cent.  "Asia should have the strongest export performance of any region this year (5 per cent), followed closely by North America (4.5 per cent).  "Europe's exports will also improve, with shipments rising 3 per cent in 2015, up from 1.9 per cent last year. The weakest export growth in 2015 will be in South America (0.2 per cent) and other regions (-0.6 per cent, comprising Africa, Middle East and CIS), although small changes in export volumes from year to year are normal for resource-rich regions," it added.  About imports, it said North America and Asia may see increase by around 5 per cent in 2015, while Europe records import growth of less than 3 per cent.

SOURCE: The Economic Times

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IMF says currency shifts support global economic growth

Recent shifts in exchange rates should help the global economy, boosting Japan and Europe in particular, amid increasing divergence in the growth paths of the world’s major economies, the International Monetary Fund said on Tuesday. The Washington-based institution kept its global growth forecasts unchanged, with faster economic expansion in the euro zone and India expected to be offset by diminished prospects in other key emerging markets such as Russia and Brazil. But it cautioned that the economic recovery remains “moderate and uneven,” beset by greater uncertainty and a host of risks, including geopolitical tensions and financial volatility.

In its flagship World Economic Outlook, the IMF kept its forecast for global growth this year at 3.5 per cent. For 2016, the IMF expects global gross domestic product to expand 3.8 per cent, up from the 3.7 per cent it forecast in January. The headline figures mask a growing split among major economies, in part due to the varying impacts of currency fluctuations and lower oil prices. The sharp rise of the dollar against the euro and yen is expected to be a major theme at the meeting of the world’s top economic policymakers in Washington later this week. The currency moves have exposed some emerging economies as well.

The IMF said monetary policies are driving most of the currency movements, as the US Federal Reserve prepares to raise rates while the European Central Bank and Bank of Japan maintain their monetary stimulus. The currency effects should boost global GDP, supporting demand in the still-troubled economies of the euro zone and Japan, the IMF said, raising its forecasts for both regions. The IMF also cut its outlook for the United States, as a 10 percent appreciation in the dollar over the last six months dragged down net exports. But it said both the United States and China, whose yuan is linked to the dollar, have some policy space to offset the appreciation of their currencies.

The IMF said China, however, could still face a greater economic slowdown as its rebalances away from investment toward consumption-led growth. The Fund also reiterated that many of the risks it highlighted in October, including geopolitical tensions and disruptive shifts in financial markets, could still derail the sluggish recovery. “A world in which you have large movements in exchange rates ... is a more risky world, from a financial point of view,” the IMF’s chief economist, Olivier Blanchard, told reporters.

The Fund also highlighted the potential for shocks around the first U.S. interest rate hike in nearly nine years, which could prompt capital outflows from emerging markets. The IMF said lower oil prices should add more than 0.5 percentage point to global economic growth by next year, but warned they could rise more quickly than expected and hurt global demand. The IMF’s managing director, Christine Lagarde, last week called the current level of growth “just not good enough” to help millions of people stuck without jobs, and again urged policymakers to pursue deeper reforms to boost economies’ growth potential.

SOURCE: The Business Standard

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Ethiopia envisions USD 1bn revenue from textile export in GTP II

The Ethiopian government extends attractive incentive packages to boost production of the manufacturing industry subsector in an attempt to make the nation a major exporter of textile products. The government's incentive is provided for private sectors so as to attract more investment in the sector with 100 percent duty free importation of machineries and equipment. Similarly, duty free importation of spare parts of 15 percent of capital goods for the first five years of operation, the possibility to hire expatriates free from income tax provided they stay for no more than two years, and reconciliation of VAT for materials purchased locally during the project period is possible if declared in six months time are included among the incentives provided by the government.

During the second phase of the growth and transformation plan, Textile Industry Development Institute (TIDI) said that they have targeted USD one billion in annual revenue from textile and garment export.  Silesh Lemma, Director-General of the institute, at a workshop held at Intercontinental Hotel last week organized to sensitize manufacturers over Ethiopia's plans for the sector said that they are working to be a leading country in light manufacturing in Africa which will lay the foundation for heavy and high tech industries by 2025.

According to the director, more than 152 new investments are expected during GTP II while at least USD one billion is anticipated from the sector's export coupled with more than 170,000 job opportunities. The Director-General also indicated that the Development Bank of Ethiopia (DBE) extends a 70 percent loan against 30 percent equity contribution in-cash by the investor (in-kind contribution policy revision is underway) for green field investment. In addition, DBE further extends a 60 percent loan against 40 percent equity contribution in cash or in kind. In order to realize the ambitious plan, the country is building over ten industrial zones all of them are state developed.

Textile Industry is considered as a number one priority by the Government's Industrial Development Strategy even during the current GTP which ends in June 2015.  However, the sector's performance has not been to the satisfaction of the government during the GTP period with annual earnings from export not exceeding USD 100 million with shortage of raw materials, inefficiency, and lack of technological applications, among others affecting the sector. But the government insists that the future for the sector is bright.

SOURCE: Yarns&Fibres

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