The production of eight core sectors had contracted 5.1 percent in September 2019, data released by the Commerce and Industry Ministry showed on Thursday.
Contracting for the seventh consecutive month, the output of eight core infrastructure sectors dropped by 0.8 percent in September, mainly due to a decline in production of crude oil, natural gas, refinery products and cement.
The production of eight core sectors had contracted 5.1 percent in September 2019, data released by the Commerce and Industry Ministry showed on Thursday.
The decline in output during the month under review was the lowest since March.
Barring coal, electricity and steel, all sectors — crude oil, natural gas, refinery products, fertiliser and cement — recorded negative growth in September 2020.
During April-September, the sectors’ output dropped by 14.9 per cent as compared to a growth of 1.3 per cent in the same period of the previous year.
SOURCE: The Financial Express
Non-food bank credit growth decelerated to 5.8 per cent in September 2020 from 8.1 per cent in the same month of the previous year, according to the RBI data. "Credit to industry recorded 'nil' growth in September 2020 as compared with 2.7 per cent growth in September 2019," the data on Sectoral Deployment of Bank Credit - September 2020, released by the Reserve Bank of India showed.
Within industry, credit to food processing, petroleum, coal products & nuclear fuels, leather & leather products, wood & wood products, and paper & paper products registered accelerated growth in September 2020 as compared with the growth in the corresponding month of the previous year.
However, credit growth to beverage & tobacco, construction, infrastructure, rubber plastic & their products, chemical & chemical products, glass & glassware and all engineering decelerated or contracted, RBI data said.
Credit to agriculture and allied activities rose by 5.9 per cent during the reporting month as compared with a growth of 7 per cent in the same month of the last year.
"Bucking the downtrend, credit growth to the services sector accelerated to 9.1 per cent in September 2020 from 7.3 per cent in September 2019," it said.
Within this sector, credit to computer software, trade and tourism, hotels & restaurants registered accelerated growth in September 2020 vis-a-vis the growth in the corresponding month of the previous year.
Personal loans registered a growth of 9.2 per cent in the month as compared with 16.6 per cent growth in September 2019. Within this sector, vehicle loans continued to perform well, registering accelerated growth in September 2020 vis-a-vis the growth in the corresponding month of the previous year, the data showed.
SOURCE: The Economic Times
Union Minister Nitin Gadkari on Thursday said micro, small and medium enterprises (MSMEs) are the backbone of the economy and can help in boosting exports.
"We are giving highest priority for how we can reduce our import and increase our exports. The global economy is an open platform where the quality, cost and scale of marketing of products are very important factors. Presently, MSMEs are the backbone of the country," the MSME minister said.
He was addressing the virtual inaugural ceremony of the 10-day 'Namaste Bharat' exhibition.
The government wants to create more employment in the backward and tribal areas, Gadkari said.
"We want to recognise, respect, support and facilitate women entrepreneurs and at the same time we want to incentivise them," he added.
He said through the Khadi Gram Udyog, the government is now concentrating on village industries and areas which are socially, economically and educationally backward.
"We want to focus on these areas where we need more concentration for gaining and creating employment potential and growth. And that is exactly the way of eradication of poverty, which is our mission. They need guidance, innovation and technology and that is where we need to help them," the minister added.
The 10-day Namaste Bharat is the first of its kind exhibition for promoting 'Made in India' products globally.
It has been conceptualized and curated by Singapore's leading events and marketing company De Ideaz. The exhibition will see over 300-plus local Indian exhibitors showcasing over 1,00,000 Made in India products.
Namaste Bharat is backed by the Federation of Indian Export Organisations (FIEO) and the High Commission of Singapore.
SOURCE: The Business Standard
The Shipping Ministry on Thursday said it has issued draft 'Coastal Shipping Bill, 2020' for public consultation, in accordance with Prime Minister Narendra Modi's vision for augmenting people's participation and transparency in the governance.
As the shipping sector grows and evolves in the country, a need was felt to have a separate legislation on coastal shipping, which is an integral part of transport chain, and recognize the policy priorities of the sector to meet the demands of the Indian shipping industry, the ministry said in a statement.
"The Ministry of Shipping has drafted a Coastal Shipping Bill, 2020 in lieu of part XIV of the Merchant Shipping Act, 1958," it added.
The Bill proposes to do away with the requirement of trading licence for Indian flag vessels for coastal trade, besides creating a competitive environment to reduce transportation costs.
The Bill also proposes integration of coastal maritime transport with inland waterways.
Citizens can submit their suggestions and opinions regarding the draft bill to coastalshipping2020@gmail.com latest by November 6, the statement said.
SOURCE: The Business Standard
There is a high risk the resurgence in coronavirus cases halts the global economic recovery by year-end, according to Reuters polls of around 500 economists, a majority of whom expected the rebound next year to be weaker than previously thought.
Governments and central banks around the world have pledged trillions of dollars of stimulus, helping most economies out of deep recessions. But a second wave of infections in places that eased lockdowns is now underway, leading to more restrictions.
That was a top risk repeatedly highlighted by Reuters surveys of economists, FX analysts, bond and equity strategists, as well as global fund managers since the start of the pandemic.
Lower GDP
The Oct. 6-27 Reuters polls of economists across Asia, Europe and the Americas covering 46 economies showed scant sign of activity recovering to pre-COVID-19 levels anytime soon.
Nearly three-quarters of 150 analysts who responded to an additional question said the resurgence in coronavirus cases posed a high risk of halting the current global economic recovery as early as this year.
“Even before the renewed lockdowns there was already a broad acceptance that many countries will see a permanently lower level of GDP than they would have done in the absence of the pandemic,” noted Janet Henry, global chief economist at HSBC.
“Higher unemployment and higher debt appear inevitable but there are also implications for equality, long-term growth potential and financial stability.”
Median growth forecasts for over 65% of those 46 economies were downgraded or left unchanged for 2020 and nearly 60% of those for 2021. The range of forecasts also reveals mostly lower lows and lower highs.
In the meantime, there is no sign of the pandemic letting up anytime soon. The United States, Russia, France and many other countries have registered record numbers of cases in recent days, and European governments introduced new curbs.
The global economy was expected to grow 5.3% next year after shrinking 4.0% this year, a touch higher than the International Monetary Fund's projection of 5.2% for 2021.
But nearly 80% of economists, or 119 of 150, said a weaker global recovery than previously thought was the greater risk in 2021, rather than a vigorous rebound or a renewed downturn.
For many major economies, it's been whiplash: plunging into the deepest contraction on record, then growing at the fastest pace ever, only to face trouble once again during the current quarter.
“For economies it has literally been a roller coaster, from the blissful ignorance and denial in Q1, to the lockdowns and economic implosion in Q2 and the reversal of restrictions fuelling a rebound in economic activity in Q3,” said Stefan Koopman, senior market economist at Rabobank.
“Unfortunately Q4 also comes with renewed virus challenges. Economically speaking, we might have to bridge another 6 months or more before a vaccine can offer substantial relief and should weigh heavily on activity in the near term. Particularly as we may face some fatigue in terms of offsetting stimulus measures.”
Despite expectations for further monetary stimulus in the euro zone and Britain, and another round of US fiscal support, the economic outlook was subdued in the latest polls, with the fresh rise in coronavirus cases the biggest risk to their recoveries.
For Japan, economists said the government needs to pledge a third stimulus package to shore up an economy hammered by the pandemic, while the Australian and Canadian economies were predicted to grow at a much weaker pace than previously thought.
China, the world's second-largest economy, was projected to grow 8.4% in 2021, in stark contrast to much weaker recoveries everywhere else. But some economists outside China expected a much lower figure and said many forecasts do not capture the real extent of the economic hit.
Most other emerging market economies were expected to struggle this year and next.
“Emerging market economies are leaving behind the worst of their COVID-19-related economic contractions, even if infection cases continue to increase in a number of countries, notably India,” noted Ajay Rajadhyaksha, head of macro research at Barclays.
“In aggregate, EM economies no longer have a growth advantage over the advanced economies.”
SOURCE: The Hindu Business Line
External Affairs Minister S Jaishankar on Thursday held talks with his Greek counterpart Nikos Dendias, covering the entire expanse of bilateral ties including ways to boost ties in areas of trade and technology.
In a tweet, Jaishankar said the agenda of talks included respective regional situations.
"A very warm virtual meeting with FM Nikos Dendias of Greece. Discussed building on our historical friendship through enhanced cooperation in commerce, technology and culture. The agenda covered our respective regional situations. Will work closely in the multilateral domain," he said.
The Ministry of External Affairs (MEA) said Jaishankar and Dendias also discussed a wide range of regional and multilateral issues especially in the context of India's upcoming membership of the UN Security Council.
"Both leaders undertook a detailed review of bilateral ties, underpinned by long-standing historical and friendly relations as well as commonality of views on major international issues of the day," it said.
"The two Ministers welcomed the recent high level exchanges and agreed to strengthen cooperation in all areas, especially in commerce, technology and culture," the MEA said.
SOURCE: The Business Standard
Nearly two-thirds of the UK businesses surveyed in India believe it is getting easier to do business in the country, owing to progressive reforms and improvements in the availability of support and service providers, skilled labour, and supply chain, according to a report unveiled on Thursday.
However, findings from the UK India Business Council's Doing Business in India Report 2020 reveal that regulatory uncertainty remains a significant challenge.
Legal and regulatory barriers were the most frequently cited obstacle to business, as outlined by 51 per cent of respondents. Foreign exchange regulations, GST process issues, high import tariffs, lack of alignment with international standards remain the top four regulatory irritants, the UK-India Business Council (UKIBC) said.
The survey suggests that improving bureaucratic processes with greater accountability, increasing regulatory certainty, simplification of the GST processes, improving the quality of infrastructure and making single window clearance effective were the most sought-after reforms by UK businesses, in that order, UKIBC said.
Moreover, India's Aatmanirbhar Bharat mission is seen by the UK firms as an opportunity to do more business in the country, leveraging UK's innovation for manufacturing in India, the report found.
66 per cent of the surveyed businesses said that they believe it is getting easier to do business in India, thanks to progressive reforms and improvements in components of India's business environment such as the availability of support and service providers, skilled labour, and supply chain, UKIBC said on the report's findings.
UKIBC Chair Richard Heald OBE said this report comes at a time when the UK and India have committed to an Enhanced Trade Partnership, as agreed by UK Secretary of State for International Trade, Liz Truss, and Indian Minister of Commerce and Industry, Piyush Goyal, in July 2020.
Although a Free Trade Agreement (FTA) is an eventual goal, the immediate priority is to remove market access barriers and make it easier for companies to operate in and enter the Indian market, he added.
UK Minister for Investment, Lord Gerry Grimstone, released the Council's 'Doing Business in India Report 2020' at a virtual roundtable with Indian industry captains on Thursday.
The report is UKIBC's sixth of an annual series dating back to 2015. This year's report is based on an in-depth survey of 106 UK organisations operating in India spanning manufacturing, services, and higher education sectors.
In spite of new challenges to business such as Brexit, COVID-19, and the global economic slowdown, UK companies not only remain deeply committed to India, but many are optimistic of expanding their business footprint in India, UKIBC Group CEO, Jayant Krishna, said.
For the third year running, Maharashtra emerged as the state with the maximum incremental improvement, followed by Karnataka, Delhi, Gujarat, and Tamil Nadu, in that order.
Next in sequence were Uttar Pradesh, Telangana, Andhra Pradesh, Chandigarh and Haryana to complete the top ten, found the report.
SOURCE: The Business Standard
The US economy grew by 33.1 per cent in the third-quarter of this year, indicating a revival of the economy from affects of the coronavirus pandemic. President Donald Trump, who is seeking re-election for a second four-year term, has welcomed the latest GDP estimates released by the US Department of Commerce on Thursday.
Real Gross Domestic Product (GDP) increased at an annual rate of 33.1 per cent in the third quarter of 2020, according to the "advance" estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP decreased 31.4 per cent, an official release from the Department of Commerce read.
SOURCE: https://www.devdiscourse.com/
The European Central Bank held off from strengthening its stimulus programs despite growing concern that a renewed surge in COVID-19 cases could stall the economy's recovery from the deep downturn in the first part of the year. But the ECB signaled that more stimulus could be coming at its December meeting, given that risks are “clearly tilted to the downside” and new staff projections would make possible “a thorough reassessment.” The bank on Thursday made no change to its 1.35 trillion (USD 1.58 trillion) pandemic emergency bond purchase program, which pumps newly created money into the economy to keep credit flowing to businesses and promote economic activity.
Those regular purchases are set to run through the middle of next year, and some 750 billion remains unused. Analysts say that is one reason the bank is holding off increasing the amount, since there is plenty of stimulus still in the pipeline. Demand from China has helped keep some European businesses afloat but rising infections have raised concert that the last three months of the year could see far slower growth. Germany is implementing a “lockdown light” under which theaters, bars and restaurants must close for almost a month.
The ECB's key goal is to raise inflation toward its target of below but close to 2 per cent, the level considered best for the economy. Inflation was minus 0.3 per cent in September, partly a result of temporary measures such as a value-added tax cut in Germany but also a sign of weaker than optimal demand.
SOURCE: https://www.devdiscourse.com/
Representatives of the Uzbekistan Textile and Garment Industry Association recently held a videoconference with Indonesia’s PT. Pan Brothers Tbk and discussed trade and investment potential of the Uzbek textile sector and establishing cooperation between Uzbek companies and the Southeast Asian firm in trade, investment and technology transfer.
The Indonesian company was offered to organise joint production, create a textile cluster and conclude a franchise agreement with Uzbekistan manufacturers for production of goods of well-known brands with subsequent export of finished products to the countries in the region, a news agency reported.
Both sides agreed to create a working group for implementation of joint projects on trade-investment cooperation in the textile industry.
SOURCE: Fibre2Fashion
According to textile machinery manufacturer Oerlikon, one of its typical manmade fibre system produces well over 600 tons of yarn per day. This, the company says, equals around 700 winders in filament yarn production or 3 systems in staple fibre production, and the figures show just how important smooth production processes are.
If an error creeps into the process at any point, the daily waste increases dramatically, the company points out. It is obvious that all yarn manufacturers want to prevent this happening to ensure their production facilities operate efficiently, it adds. Here, Oerlikon says, digitalization provides invaluable support. A Smart Factory that networks all steps within the production chain – including all auxiliary processes – identifies and reports quality deviations at an early stage and yarn manufacturers can quickly intervene in the production process and hence avoid generating waste, the company explains.
Digital solutions ensure process reliability
And the Smart Factory is also the focus of Oerlikon Manmade Fibers. Here, it comprises considerably more than the Plant Operation Center, a system that has been well-established within the market for many years now. “This is about absolute transparency and traceability. At the end of the process, yarn manufacturers are able to track at which position its finished textured yarn packages were spun and even have information on the processed granulate and the specific production conditions,” comments Ivan Gallo, responsible for digital products at Oerlikon Manmade Fiber. In this way, the Smart Factory ensures process reliability, above all, Oerlikon says. Data is automatically entered into the system and the product assessed at each stage of yarn production at which values and data is recorded – such as during visual inspection and when weighing. In the event of anomalies in the intermediate laboratory and quality checks, this allows yarn producers to intervene in the production process and correct these anomalies.
Information on the chip feeding, on the drying and on the masterbatch are available, as are data on the climate control, on the compressed air supply and on further auxiliary systems. With this, yarn manufacturers have at all times a complete overview of the ongoing production process, including comprehensive information on quality and production costs, Oerlikon explains.
As a total solution provider, Oerlikon Manmade Fibers rounds off its Smart Factory concept with the associated services: operation, updates, further development of the software and services are part of the scope of services.
“Digitalization has long been part of our everyday lives. Here, COVID-19 has merely acted as an accelerator. Particularly over the last few months, we have tried out so many things, learned a lot from our mistakes and have taken a giant step forward. The intelligent factory is no longer a vision, it has long become reality. Digital solutions have become fixed elements of our products and services – and everything is inextricably linked. But we have not reached the end of this exciting development by a long way yet: new technologies and solutions require new methods and new knowledge. In other words, we have to remain ‘agile’, constantly adapting to the changing situations and tasks at hand,” states Oerlikon Manmade Fibers Segment CTO Jochen Adler.
SOURCE: https://www.innovationintextiles.com/
