The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 11 May, 2015

NATIONAL

 

INTERNATIONAL

 

Textile Raw Material Price 2015-05-10

Item

Price

Unit

Fluctuation

PSF

1319.04

USD/Ton

0%

VSF

2041.49

USD/Ton

0.08%

ASF

2480.35

USD/Ton

0%

Polyester POY

1409.76

USD/Ton

-0.58%

Nylon FDY

3138.24

USD/Ton

0.52%

40D Spandex

6538.00

USD/Ton

0%

Nylon DTY

5916.89

USD/Ton

0%

Viscose Long Filament

1659.02

USD/Ton

0%

Polyester DTY

2925.76

USD/Ton

0%

Nylon POY

2675.68

USD/Ton

0%

Acrylic Top 3D

1609.98

USD/Ton

0%

Polyester FDY

3383.42

USD/Ton

0%

30S Spun Rayon Yarn

2713.27

USD/Ton

0%

32S Polyester Yarn

2059.47

USD/Ton

0%

45S T/C Yarn

2991.14

USD/Ton

0%

45S Polyester Yarn

2876.72

USD/Ton

0%

T/C Yarn 65/35 32S

2745.96

USD/Ton

0%

40S Rayon Yarn

2206.58

USD/Ton

0%

T/R Yarn 65/35 32S

2566.17

USD/Ton

0%

10S Denim Fabric

1.14

USD/Meter

0%

32S Twill Fabric

1.00

USD/Meter

0%

40S Combed Poplin

1.36

USD/Meter

0%

30S Rayon Fabric

0.78

USD/Meter

0%

45S T/C Fabric

0.79

USD/Meter

0%

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.16345 USD dtd. 10/05/2015)

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

 

New textiles policy on the anvil: Govt

The government has said that it is finalising a new national textiles policy aimed to boost the sector’s exports. The new policy aims to achieve $300 billion textiles exports by 2024-25 and predicts the creation of additional 35 million jobs, according to an agency report. The textiles ministry has set up an expert committee headed by Ajay Shankar, member secretary, national manufacturing competitiveness council for review and revamp the textile policy 2000. "The expert committee has since submitted a draft vision, strategy and action plan. The new national textiles policy, is currently under finalisation," textiles minister Santosh Gangwar said in a written reply to the Rajya Sabha.

Acknowledging the changes in the textile industry on the domestic and international fronts and the need for a road map for the textile and apparel industry, the textiles ministry had initiated the process of reviewing the national textile policy, 2000. The new policy also aims to address concerns of adequate skilled work force, labour reforms, attract investments in the textile sector, and to provide a future road map for the textile and clothing industry.

SOURCE: Fibre2fashion

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India’s overall textile exports to miss official growth target of 15%

India’s overall textile and garment exports that also include those of jute, coir, handicrafts and handloom items to not only miss the initial official growth target of 15% for 2014-15 but fall short of the 5% expansion rate expected until recently. The government had initially set the export target at $45 billion for 2014-15, compared with the actual exports of $39.3 billion in the previous fiscal.  According to the latest official data, the overall textile and garment exports has grown by just 1.7% touching $35.29 billion during the April-February period, compared with 34.72 billion a year before, while imports have risen by 14.2% during the period.

Exports of fibres crashed over 36% up to February last fiscal, while some other textile items witnessed just a 0.4% rise, primarily to a slowdown in top buyer China, according to industry executives. The communist neighbour usually accounts for over 70% of India’s cotton and 40% of yarn supplies. Consequently, exports of raw cotton, including waste, dropped almost 47% during the April-February period from a year before (See table). The only major growth driver has been the garment segment, with a 13.4% rise between April and February from a year earlier.

Countries such as Bangladesh, Vietnam and Cambodia import textile items in large volumes for converting them into finished products such as garments for subsequent exports. Indian textile industry can capture these markets more effectively for which the industry needs some help for government in form of some incentives to export products, said DK Nair, the secretary-general of the Confederation of the Indian Textile Industry. He added that currently domestic textile exporters are given a 2% export incentive for outbound shipments only to the US, the EU, Canada and Japan — the markets where the appetite is far more for garments than for textiles.Imports of textiles, however, went up to $5.57 billion between April and February, compared with $4.87 billion a year before. However, Nair said that as most of the items imported are used as inputs for finished goods, the situation isn’t alarming yet.

However, despite the recognition of the textile sector’s role in the Make in India concept as well as in jobs creation, with the Ajay Shankar-led panel envisaging annual outbound shipments worth $300 billion by 2024-25, a lack of adequate focus and proper planning in boosting exports have also taken a toll, textile industry executives had said earlier. The government is yet to come up with the textile vision document, which was to be based on the recommendations of the Ajay Shankar panel, even ten months after the report was first submitted with the textile ministry.

Subdued textile export demand has reflected in the industrial production data as well. According to the index of industrial production data, the textile segment grew just 2.4% from the April-February period from a year before. The country’s textile and apparel exports have expanded at an average of 11% over 10 years through 2013-14, still lagging the growth rates achieved by some much smaller nations. Even Vietnam could achieve a peak export growth rate of 30% while Bangladesh could achieve a growth rate of 18% during this period. Higher textile exports augur well for the economy as they accounted for 12.6% of the overall exports last fiscal and the sector employs 35 million people, having become the largest employer after agriculture.

SOURCE: Yarns&Fibers

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Global slowdown, steep fall in oil prices impacted exports: Commerce minister Nirmala Sitharaman

Slowdown in global demand, appreciation of the rupee against the euro and steep fall in oil prices led to a decline in India's exports in 2014-15, Parliament was informed today.  The country's exports dipped by 1.2 per cent to $310.5 billion in 2014-15 as against $314.4 billion in the previous fiscal (2013-14).  Exports started declining since October 2014 and contracted to 21.1 per cent in March, the biggest fall in last six years.  Commerce and Industry Minister Nirmala Sitharaman attributed the decline in exports to fall in global demand during the period to slowing down of world trade, appreciation of the rupee against the euro, making exports to Europe, which is a major market for India, less competitive for Indian exporters.  "Steep fall in the prices of petroleum crude resulting in consequent decline in prices as well as export realisation for petroleum products that are major product items for exports for India," she said in a written reply to the Lok Sabha.

India's major exporting goods in the last fiscal include petroleum products, pearls, precious and semi-precious stones, jewellery, iron and steel, cars, aircraft, spacecraft and marine products, Sitharaman said.  She added that incentives announced in the foreign trade policy will diversify India's export markets and products and give a boost to India's exports.  In a separate reply, she said in April-February 2014-15, India's exports to South Asian countries stood at $18.55 billion as against $17.50 billion in 2013-14.  Total trade between India and the seven South Asian countries - Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka - grew to $21.16 billion in April-February 2014-15 as against $19.97 billion in 2013-14.

The share of these seven countries in India's total trade has increased to 3.04 per cent in April-February 2014-15 as against 2.61 per cent in 2013-14. However, trade with Pakistan has dipped to $2.17 billion in April-February 2014-15 as against $2.7 billion in 2013-14. "Government has taken steps to improve the trade infrastructure with South Asian countries. South Asian Foreign Trade Agreement (SAFTA) provisions have also been liberalised by India/SAARC countries to encourage greater trade," the Minister said.

SOURCE: The Economic Times

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India to seek end to non-tariff barriers during Narendra Modi's China visit

India will seek abolition of non-tariff barriers during Prime Minister Narendra Modi's visit to China next week, officials said, as part of efforts to reduce a widening trade deficit and boost local industry.  New Delhi wants greater market access in sectors such as pharmaceuticals, IT services and farm products including bovine meat, Trade Minister Nirmala Sitharaman said on Friday.  India buys more than 60 percent of its bulk drugs from China mainly to produce generic drugs, but Beijing has not taken enough steps to ease rules to allow access to Indian generics - exported to more than 150 countries.  "India has also sought simplification and greater transparency in China's procedures relating to ... imports," the minister said in a written statement to the Lower House of parliament, ahead of Modi's three-nation visit to China, Mongolia and South Korea from May 14-19.  Modi will meet Chinese leaders to advance bilateral trade and attract Chinese companies to set up plants in India.

India's exports to China, its biggest trading partner, fell one-fifth to $12 billion in the 2014/15 fiscal year ending in March, while imports grew to $60.4 billion, widening the trade deficit to over $48 billion, near one-third of the total trade shortfall.  Worried over a widening trade deficit with China, the government has imposed quality standards on nearly 100 items, mainly electronic and IT products, but industry experts said it would not have much impact on imports.  The Confederation of Indian Industry has asked the government to take up market access with China to promote exports of drugs, IT and auto components.  Modi is likely to push for greater services trade when he meets Chinese President Xi Jinping, said an industry official.  "India has the potential to generate more than $10 billion through export of these products to China in next 4-5 years," said a CII report submitted to the government.  India expects an easing of Chinese rules for market access during Modi's visit as it would benefit the world's second-largest economy when it is facing its worst slowdown in decades.  Officials said both countries could also agree for more cooperation in railways and in resolving a decades-old border dispute.  "India could offer a train track to China to run a bullet train besides easy terms to set up industrial parks," said a senior government official, with direct knowledge of the matter.  He said there has not been much progress on the development of two industrial parks that China had announced earlier.

SOURCE: The Economic Times

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We brought the economy back on rails, says Nirmala Sitharaman

There can be arguments over whether the pace of growth in industry and exports can be better but there is little doubt that the Modi government has put the economy back on rails, according to Minister of State for Commerce and Industry Nirmala Sitharaman. “The paralysis of the last five years is so deep-seated that efforts have been made at various levels to get things moving,” she told BusinessLine in an interview on Sunday. These efforts were, according to her, not palpable outside, thus giving rise to the impression that things are not moving fast enough. Refusing to agree that the original optimism that prevailed a year ago when Narendra Modi assumed office as Prime Minister has waned, Sitharaman said that there were expectations of rapid, quick change. “We are going for the long haul keeping in mind that changes have to be made at various levels and ensuring that deep-seated lethargy and some deadwood at various levels have to be thrown out,” she said.

The Minister also found fault with Congress Vice-President Rahul Gandhi’s comments on the Amethi food park not getting clearance. “The food park got six extensions during the UPA government, after which it was found unfit and had to be rejected by the UPA government itself. So, clearly, Gandhi is misguided and not speaking with facts,” Sitharaman said. She is of the view that the Land Bill is more farmer-friendly than the legislation framed by the UPA. The Act, as it now exists, has out of its purview 13 pieces of legislation under which land can be acquired for public purpose. Farmers would not get any compensation for land acquired under these legislation. However, the NDA’s Land Bill has included these 13 laws and farmers would be entitled to compensation when land is acquired for public purpose, Sitharaman said.

SOURCE: The Economic Times

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India, Japan to set up Logistics Data Bank to expedite bilateral trade

In a first of its kind with any country, India and Japan are going to soon set up a logistics data bank (LDB) service that will ensure speedy movement of two-way merchandise trade by way of real-time tracking of container and cargo movement in the Delhi-Mumbai Industrial Corridor (DMIC) region. The LDB will be operated by a special purpose vehicle (SPV), which will be jointly run by DMIC Trust from Indian side and Japan's NEC.Once in operation, the LDB is expected to save $3.2 billion annually by 2017 on the basis of real time tracking of container movement. The shareholders agreement (SHA) for the project is under discussion presently. The concept was basically developed to address the issue of tracking and viewing container movement across all ports to the ICDs and end-users. “This is a smart community project in partnership with the Japanese government for introducing a paradigm shift in logistics and container movement in the DMIC by generating and analysing near real time data across all regulatory interface for diverse stakeholders,” Talleen Kumar, joint secretary, department of industrial policy and promotion (DIPP), ministry of commerce and industry told Business Standard. The LDB will consist of shipping line, port terminal operator, owner of rail infrastructure, container train operator, customs agent, truck operator and shipper or consignee.

The government plans to replicate the model for other industrial corridors as well if the service becomes successful in the DMIC region. The data bank, which will also be known as DMIC Logistics Data Bank, is aimed at improving competition, reducing transportation lead time and cost by sharing container movement information among all agencies in the supply chain using an IT-based platform. This was also discussed during a meeting between Minister of State (Independent Charge) for Commerce and Industry Nirmala Sitharaman and Japan’s Minister of Economy, Trade and Industry Yoichi Miyazawa held here last month, when both sides signed an ‘Action Agenda for the India-Japan Investment and Trade Promotion’. In terms of revenue earning for the government, the data will be collected from all stakeholders for a fee with user charges collected from shippers based on mandatory user charge, which will be 0.2 per cent of the total transportation cost, Kumar said. Presently, almost 60 per cent of the container traffic is concentrated in the western corridor. Besides, several stakeholders such as the railways, ports, customs and transporters operate their own IT-enabled systems without sharing the data with each other.

SMART PROJECT

The service will ensure speedy movement of two-way merchandise trade by way of real-time tracking of container and cargo movement. Once in operation, the LDB is expected to save $3.2 billion annually by 2017. The LDB will consist of shipping line, port terminal operator, owner of rail infrastructure, container train operator, customs agent, truck operator and shipper or consignee.

SOURCE: The Business Standard

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GST rollout: there are gaps to be filled, say logistics players

Even as logistics players are looking forward to the execution of goods and services tax (GST) at the earliest, they feel some gaps need to be filled before it is rolled out nationwide. If the government wants to implement GST in its current form (as passed in the Lok Sabha) from April 1, 2016, then, it is important to have the back-end IT infrastructure in place throughout the network, according to Vineet Agarwal, Managing Director of logistics major Transport Corporation of India (TCI). The Bill is pending in the Rajya Sabha. “Check-posts should have prior information about the cargo coming in. Trucks that reach shouldn’t be kept waiting for approval,” he told BusinessLine.

From the current system of having at least one warehouse in each State, TCI is looking at companies having 12-15 warehouses across India. As cargo gets consolidated, there will be a spurt in demand not just for bigger warehouses but also for bigger trucks, said Agarwal. “We are looking at four to 10 warehouses across the country that will be automated, reducing the per-unit cost,” Vivek Arya, Managing Director, Rhenus Logistics India, said. There will be more demand for 20-25 tonne commercial vehicles, instead of 9-10 tonne trucks, he added. 

Cargo consolidation

In fact, as cargo consolidation happens, there is likely to be an inter-modal shift to rail and ships, said TCI’s Agarwal. There can be other challenges in the transition to GST, which could take about two-three years, before the lower costs trickle down to customers. “As we wait for clarity about the time frame and exact nature of GST, companies might face issues in the short run, when they transition their IT and ERP (enterprise resource planning) systems as per the new format,” said Agarwal. For those looking at improving the ease of doing business, there is struggle in the current form of GST, he added. Rhenus’ Arya said most companies do not have as-is-where-is processes. “They will have to change their sourcing patterns. We need clarity on what forms to fill and how GST will be rolled out,” he said. Nevertheless, he added, logistics costs as a whole will decline by 3-4 per cent. Raaja Kanwar, Vice-Chairman and MD, Apollo Logisolutions Ltd, said there are two schools of thought. “Wait for six to 12 months post GST rollout to learn from the issues faced by the early adopters. However, this may lead to missing the bus and facing severe competition later on. Or, join the rollout as early as possible. But, (in such a case) ‘unknown’ operational issues can bring down the benefits which GST should have provided. Hence, this could lead to sunk investment costs,” he said.

Common carriers

Since goods are moved by road inter- and intra-State, a large number of transporters are common carriers or service providers. “These will have to be registered as common carriers under the Carriage by Road Act, 2007, similar to the TIN number for traders,” said SP Singh, Senior Fellow, Indian Foundation of Transport Research and Training. There will be consolidation in the sector, which is long overdue, he added.

SOURCE: The Hindu Business Line

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GST will lead to economic integration of India: FM

The Goods and Service Tax (GST) will lead to the economic integration of the country, said Finance Minister Arun Jaitley. "We started the process to end the multitude of indirect taxes across the country and took the states along in this, as it would involve a change in Constitution. The entire country will be a single market, it will be the economic integration of India. There will be a seamless transfer of goods and services," he said at the launch of the three social security schemes - Pradahan Mantri, Suraksha Bima Yojana, Atal Pension Yojana and Pradhan Mantri Jeevan Jyoti Bima Yojana-- in Mumbai.

The GST Constitution Amendment Bill has been approved by the Lok Sabha and is now pending in the Rajya Sabha. He emphasised that apart from the passage of GST Bill, ironing out the complexity of doing business in India has been another top priority for the government. With this in focus, the corporate tax will gradually be brought down to 25 per cent. Apart from this, the various exemptions from companies will also be removed in order to bring down corruption in the system, said Jaitley.

With unseasonal rain taking a toll, the growth in the agriculture sector is likely to become a major challenge. He further added that India has a potential to grow at a higher rate. "Today is an opportunity for India to improve growth after the setbacks from global slowdown and the policy paralysis…We have the ability to grow at double digit." While the service sector has been on the course of growth, the growth in agriculture continues to be a challenge. With unseasonal rain taking a toll, the growth in the agriculture sector is likely to become a major challenge. "Agriculture is the biggest challenge and the unseasonal rains have resulted in an agrarian crisis. Once the resources with the government grow, the biggest component of this will be diverted to agriculture and irrigation for meeting the challenge," he said.

SOURCE: The Business Standard

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Rupee strengthens to 63.81 on continued dollar selling

The rupee strengthened 13 paise at 63.81 against the US dollar in early trade at the Interbank Foreign Exchange market today on continued selling of the American currency by exporters. Forex dealers said besides sustained selling of the American currency by banks as well, a higher opening in the domestic equity market supported the rupee, but the dollar’s gains against the euro restricted the upside. The rupee had gained 29 paise to 63.94 on Friday, recovering from a 20-month low against the American currency, on fresh selling of dollar amid a rebound in equities. Meanwhile, the benchmark BSE Sensex rose 218.20 points, or 0.80 per cent, at 27,323.59 in early trade.

SOURCE: The Hindu Business Line

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Global crude oil price of Indian Basket was US$ 64.05 per bbl on 08.05.2015

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$ 64.05 per barrel (bbl) on 08.05.2015. This was lower than the price of US$ 65.81 per bbl on previous publishing day of 07.05.2015.

In rupee terms, the price of Indian Basket decreased to Rs 4102.40 per bbl on 08.05.2015 as compared to Rs 4203.94 per bbl on 07.05.2015. Rupee closed weaker at Rs 64.05 per US$ on 08.05.2015 as against Rs 63.88 per US$ on 07.05.2015. The table below gives details in this regard:

Particulars    

Unit

Price on May 08, 2015 (Previous trading day i.e. 07.05.2015)                                                                  

Pricing Fortnight for 01.05.2015

(April 11 to April 28, 2015)

Crude Oil (Indian Basket)

($/bbl)

64.05              (65.81)

60.30

(Rs/bbl

4102.40          (4203.94)

3789.86

Exchange Rate

(Rs/$)

64.05              (63.88)

62.85

SOURCE: PIB

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Vietnam to showcase investment prospects in textile sector

Vietnam’s textile industry is hoping that some of the world’s biggest garment and textile groups such as Puma, Levi Strauss, Li & Fung, Tal Group and the United States Fashion Industry Association (USFIA) will participate in the 2015 edition of Vietnam Garment and Textile Forum, the Vietnamese media has reported. The event begins in Hanoi on June 25 and will end on June 27. During the event, foreign groups and leading economists are expected share information on the international garment and textile market, the size of Vietnam’s garment and textile industry and its market, the world trend, and global supply chain of leading trademarks. Participants in the event will be taken on a fact-finding tour of Rang Dong industrial park in the northern province of Nam Dinh to assess the favourable investment climate for investors in Vietnam.

Vietnam’s garment and textile industry has rapidly developed recently. The country has become a leading garment and textile exporter alongside China, India, Turkey and Bangladesh. Last year, the industry’s export turnover surged nearly 17 per cent to $24.5 billion and its products have been exported to 180 countries. With more than 4,000 businesses operational, the country’s garment and textile industry has generated 4.5 million jobs. The industry is expected to enjoy preferential tariffs from the signing of Free Trade Agreements (FTAs). Le Tien Truong, vice president of the Vietnam textile and apparel association (Vitas) said local businesses have seized opportunities to expand market and attract foreign investment. Nine years after joining the WTO, Vietnam’s share in the US garment and textile market has increased constantly from 3 per cent to 10 per cent , second only to China. Last year, Vietnam’s garment and textile export revenue achieved an impressive growth in major markets with 17 per cent in Europe, 12.5 per cent in the US, 9 per cent in Japan and 27 per cent in South Korea. This year, Vietnam is targeting $28.5 million from garment and textile exports.

SOURCE: Fibre2fashion

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Indonesian textile sector to invest $230 mn this year

Indonesia expects to receive 3 trillion rupiah ($230.15 million) in investment that will go to the textile and garment industry this year despite rising challenges by way of new electricity prices and increase in labor costs, one of the country’s leading newspapers has reported. A sizeable portion of one trillion rupiah ($77 million approx) will derive from a local firm, while the majority will come from foreign investors, particularly from China, South Korea and Taiwan, according to Indonesian textile association (API) chairman Ade Sudrajat. “Most of the investment will be poured to Central Java,” The Jakarta Post quoted Ade as saying on the sidelines of a recent seminar hosted by the investment coordinating board.

The manufacturing facilities to be financed by the planned investment were to produce apparel as investors anticipated greater market access that Indonesia was targeting through potential trade agreements with key buyers, such as the EU, he said. Without free trade deals, Indonesian textile and garment producers are currently being charged duties ranging from 11 to 30 per cent to main export destinations, including the EU and US. The trade arrangement may push down levies to as low as zero per cent, resulting in an enhanced edge of traded goods in terms of price.

Indonesia is preparing for talks on a long-delayed comprehensive economic partnership agreement with the EU, which is expected to boost the competitiveness of its products to the 28-member bloc. Indonesia has seen its shares decline in textile trading with major partners from 2007 to 2013, excluding Japan, with which it has inked an economic partnership agreement, according to data from the business group.

SOURCE: Fibre2fashion

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Pakistan textile exporters demand friendly budget

The Pakistan Textile Exporters Association (PTEA) has urged the government to announce a business-friendly budget besides resolving the energy crisis in the country, the Pakistani media has reported. “The government should bring in reforms and give special status to the export-oriented textile industry to boost investment and revive growth,” said PTEA chairman Sohail Pasha. The budget for 2015-16 is to be announced in June. He said the textile sector is the only hope for the country’s economic revival, but it is plagued with high production costs. “The government should provide a level playing field and we can witness textile exports almost doubling,” he added. “The budget should facilitate the export-oriented sector.”

Many incentives under the textile package including complete settlement of all outstanding refund claims and rationalisation of the refund regime was announced in the previous budget, but it could not be implemented, he added. “Around 30 per cent to 40 per cent of the working capital is still stuck.” The whole textile export chain should be zero rated from spinning to finished goods in order to get rid of the financial crunch, PTEA demanded. “Sales tax refund should be processed in less time and in a transparent manner to streamline the entire refund verification and sanctioning process,” said Pasha.

The PTEA also expressed concern about the supply of gas and pointed out that the textile sector is getting just one third of allocated gas supply though domestic demand has dipped significantly on rising temperature. Pakistan is unlikely to fully utilise its installed capacity due to severe energy shortage and textile exports could not get the momentum unless the government takes serious measures to pull textile sector out of crisis that holds back the textile industry, PETA said.

SOURCE: Fibre2fashion

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China April exports unexpectedly contract, imports slide

China’s exports unexpectedly fell 6.4 per cent in April from a year earlier, while imports tumbled by a deeper-than-forecast 16.2 per cent, fuelling expectations that Beijing will quickly roll out more stimulus to avert a sharper economic slowdown. The dismal trade performance raises the risk that second-quarter economic growth may dip below 7 per cent for the first time since the depths of the global financial crisis, adding to official fears of job losses and growing levels of bad debt. “This is bad. I expect an interest rate cut this weekend,” said economist Tim Condon at ING in Singapore. “This is going to make 7 per cent (GDP) growth hard to attain. It looks like the weakness in the first quarter wasn’t transitory. It’s persistent.”

The central bank has lowered interest rates and banks’ reserve requirement ratio thrice in three months since November to stoke the economy, and most analysts had expected it to loosen policy again on both fronts in coming months. Policy insiders told Reuters this week that China’s leaders have been caught off guard by the sharpness of the downturn, and are likely to resort to fiscal stimulus to revive growth after a flurry of monetary policy easing has proved less effective than hoped.

Imports have been weaker than exports, falling 16.2 per cent in April from a year earlier, according to data released by the General Administration of Customs on Friday, highlighting tepid domestic demand as the world’s second-largest economy slows. Analysts polled by Reuters had expected exports would rise 2.4 per cent in April after a 15 per cent plunge in March, and predicted imports would fall 12 per cent after a 12.7 per cent drop the previous month. In April, exports to the United States, China’s top export market, rose 3.1 per cent from a year earlier, while shipments to the European Union, the second largest market, dipped 10.4 per cent, according to customs data.

SOURCE: The Business Standard

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EU sees post-FTA bilateral trade doubling to 200 billion euros

Indo-EU bilateral trade can double to 200 billion euros on increasing mutual cooperation and success of FTA talks, European Union Ambassador Joao Cravinho has said.  New Delhi and Brussels are likely to resume dialogue on the free trade agreement FTA next month.  "The bilateral trade between EU and India currently stands at 100 billion euros. I am quite hopeful that with the increasing mutual cooperation and the success of the FTA talks we will be able to double it to 200 billion euros over a period of four years from now," Cravinho told PTI.  The envoy noted that bilateral trade volume has trebled to 100 billion euros during past one decade and could reach 200 billion euros if the forthcoming talks become successful.

Cravinho was talking on the sidelines of an annual day celebration of the Council of EU Chambers of Commerce in India here over the weekend.  When sought his views on the 'Make in India' campaign and its impact on the European exports to the country, Cravinho said the EU sees the 'Make in India' campaign as an opportunity.  "We see the 'Make in India' campaign as an opportunity as it provides us an opportunity to provide new technologies and equipment to the Indian manufacturers. Make in India is not just meant for the Indian manufacturers, rather it also means EU manufacturers to provide support to their counterparts here with machineries and technical knowhow," the envoy said.

Expressing optimism on the outcome of the forthcoming FTA talks likely to begin next month, he said, "We are quite enthusiastic about the resumption of our FTA talks with India, beginning next month. I do see hope in liberalisation of rules by the Indian government and the forthcoming talks will pave the way for strengthening the bilateral trade between India and EU countries."

Source: The Economic Times

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