INTERNATIONAL
Showing signs of improvement, the country’s exports grew 22.47% year-on-year to USD 6.75 billion in the first week of November, mainly driven by healthy growth in pharmaceuticals, gems and jewellery and engineering sectors, an official said on Tuesday.
The exports during the first week of November last year was $5.51 billion. Imports in November (1-7) this year, too, increased 13.64% y-o-y to $9.30 billion against $8.19 billion, the official said. Imports, excluding petroleum, jumped 23.37% during the week, the official added. Trade deficit during the week stood at $2.55 billion.
Exports of pharmaceuticals, and gems and jewellery grew 32% to $139.12 million and 88.8% to $3,360.71 million, respectively. Similarly, exports of engineering goods rose 16.7% to $215.13 million in the week. Sectors which recorded negative growth include petroleum, marine products and leather goods.
SOURCE: The Financial Express
Taxes on petroleum products comprise about 65% of the petroleum sector’s contribution to the central exchequer. Cess and royalty on domestic crude production, customs duty on crude imports, dividends, etc, make up for the rest.
Thanks primarily to the sharp hikes in excise duty rates on auto fuels three times since October last year, the Centre’s collections from excise duties grew a robust 34% on year in April-September this fiscal to Rs 1.28 lakh crore. The big rise in excise collections is an outlier as the Centre’s gross tax receipts declined by 22% during the period, due to the lockdown’s adverse effect on the economy, that had been on a downturn even earlier.
Given that auto fuel sales have picked up substantially in recent months – Crisil sees annual sales down by just 11% –, the overall excise collections this year could be up Rs 60,000 crore over the FY20 mop-up of Rs 2.4 lakh crore, official sources reckon. That represents an annual increase of 25%. According to the Budget Estimate for FY21, the collections of excise duties – which includes basic excise, special additional excise on auto fuels, road/infra cess and cess on crude oil – in the year are to be Rs 2.67 lakh crore.
The government believes that rise in excise mop-up could help boost the gross tax revenue to close to last year’s level, despite the big shortfall in the first half. Finance secretary Ajay Bhushan Pandey last month expressed confidence that the potentially robust economic recovery in the second half of the fiscal might help the government reach the same level of gross tax collections as achieved last year.
With the gradual lifting of the lockdown, petrol sales were up 2% annually in September, the first month in the current fiscal to post a positive growth. Diesel sales, which remained down 7% annually even in September, saw a pick-up in October. Diesel sales rose 24.5% in the first half of October compared with the same period of September.
The Centre’s tax on diesel (basic excise, special additional excise and road/infra cess) is currently Rs 31.83/litre, compared with just Rs 15.83/litre in early October 2019. Corresponding figures for petrol are Rs 32.98 and Rs 19.98.
The divisible portion of the tax pool, however, remained the same at Rs 4.83 (diesel) and Rs 2.98 (petrol), which explains the big jump projected for the Centre’s revenue from taxes on petroleum products in FY21, while states’ (post-devolution) revenue is seen to rise only modestly. The Centre hiked special additional excise/cess levied on petrol and diesel sharply in October 2019, March 2020 and then in May. These taxes are not part of divisible pool, only the basic excise is.
Taxes on petroleum products comprise about 65% of the petroleum sector’s contribution to the central exchequer. Cess and royalty on domestic crude production, customs duty on crude imports, dividends, etc, make up for the rest.
Among other taxes, income and corporate taxes were down by 40% and 22%, respectively, on year in the first half of this year. Similarly, central GST and customs collection were down 34% and 44%, respectively.
The budget estimate for gross tax revenue collection is pegged at Rs 24.2 lakh crore but given budget numbers were announced before pandemic struck, the government officials say an informal target is to get close to last year collections of Rs 20.09 lakh crore. The collection last year had itself seen a 3.5% decline from FY19.
Increased central government duties will raise the taxable value of petrol and diesel for the levy of state sales tax/VAT. Many states such as Gujarat, Haryana, Delhi, Rajasthan, Maharashtra and Karnataka have increased the sales tax/VAT on the two transportation fuels. States earned around Rs 1.8 lakh crore from sales tax and VAT on petrol and diesel in FY20; Crisil expects this figure to rise to Rs 1.96 lakh crore in the current fiscal.
SOURCE: The Financial Express
INTERNATIONAL
Commerce minister Piyush Goyal and Minister of State H S Puri have held a virtual dialogue with their UK counterparts to review the progress towards post-Brexit Enhanced Trade Partnership with Britain
Commerce and Industry Minister Piyush Goyal and Minister of State Hardeep Singh Puri have held a virtual dialogue with their UK counterparts to review the progress towards a post-Brexit Enhanced Trade Partnership with Britain, which could lead to a free trade agreement in the future.
UK Secretary of State for International Trade Liz Truss was joined by her Minister for International Trade Ranil Jayawardena for the talks on Monday.
During the talks, both sides agreed to accelerate the "deepening" of trade ties, which involved a discussion on a range of UK products, including Scotch Whisky, and steps taken so far to unlock market access barriers to open up further opportunities for businesses on both sides.
The November Ministerial demonstrated the strength of the long-standing UK-India relationship, with both parties agreeing to continue to drive forward progress through the Enhanced Trade Partnership, which could lead to a free trade agreement in the future, a Department for International Trade (DIT) spokesperson said.
The meeting had been agreed as a follow up to the India-UK Joint Economic and Trade Committee (JETCO) in July, when the ministers had agreed to prioritise five key areas of life sciences, information communications technology (ICT), food and drink, chemicals, and services to address non-tariff barriers to trade towards first an enhanced and eventually a free trade agreement.
According to officials, both delegations committed to continue working together closely on areas of mutual interest and benefit and to accelerate the already deepening India-UK trade and investment partnership.
The ministers also reaffirmed the importance of "resilient supply chains" and ongoing cooperation in response to the COVID-19 pandemic. The meeting follows a series of high-profile interactions on both sides in recent weeks and months, most recently with the visit of Foreign Secretary Harsh Vardhan Shringla to the UK last week.
We are looking at early harvest deals, which would bring benefits to both our countries, followed by a more detailed, either preferential trade agreement or a free trade agreement," the Foreign Secretary had confirmed during his visit to London.
"Obviously, a limited deal means we work on those areas on which both sides can immediately agree to. We need more time to conclude a more comprehensive trade agreement but our ministers are in touch and will work on trying to close such a deal, he said.
The latest round of talks come as Prime Minister Boris Johnson announced a major addition to the UK government's ability to attract foreign investment, in the form of a newly established Office for Investment this week.
The new office will support the landing of high-value investment opportunities into the UK which align with key government priorities, such as reaching net zero, investment in infrastructure and advancing research and development.
The DIT said the new office will also ensure the UK is well-positioned to maximise the benefits that flow from free trade agreements with international partners, including India.
Now is the time to be bold and ambitious in how we trade with partners around the world. Our more strategic approach to inward investment will help level up the UK, creating more jobs and prosperity across the country, said International Trade Secretary Liz Truss.
The office will build our reputation as a world leader in industries of the future such as tech, services, advanced manufacturing and clean growth, she said.
Staffed by highly experienced individuals with both private sector and cross-government experience, the office will be based at the DIT, with Minister for Investment Gerry Grimstone leading its work in close partnership with No. 10 Downing Street, under the sponsorship of UK PM Johnson and Chancellor Rishi Sunak.
If we are to build back better from this pandemic, we need to refocus and re-double our efforts to attract foreign investment, which will increase productivity, economic growth across the country, boost our exports and better our research and development environment, said Lord Grimstone.
We must sharpen our priorities and transform our investment offer accordingly to meet the demands of a changing global economic outlook whether that be in greener or increased digitally-led opportunities. The office for Investment will make it easier for international investors by bringing the very best of the UK directly to them, he said.
The DIT said that most strategic investments are often the most complex and require a joined-up approach across government and the private sector.
The Office for Investment will look to resolve potential barriers to landing these top tier' investments, including regulatory constraints and planning issues, the DIT said.
Driving inward investment into all corners of the UK through a single front door' and boosting economic recovery across the country, this major operational transformation is designed to ensure the UK is the most attractive destination in the world to invest, it added.
SOURCE: The Business Standard
118-year-old retailer, J.C. Penney is on the way to emerge from bankruptcy after a US bankruptcy court approved the sale of an asset purchase agreement.
In September, the retail giant reached a deal to sell its retail business and mall operators to Simon Property Group and Brookfield Property Partners, two major U.S. mall operators, after filing for Chapter 11 in May due to sudden changes instigated by the COVID-19.
Jill Soltau, CEO, JCPenney said, “Our goal from the beginning of this process has been to ensure J.C. Penney will continue to serve customers for decades to come and this court approval accomplishes that objective.”
“With the 2020 holiday season in full swing, we are excited to operate under the new ownership of Brookfield and Simon outside of Chapter 11 and under the JCPenney banner,” Jill added.
Though the apparel brand faces a difficult battle to appeal to consumers this holiday season as they stay away from the malls and stores for safety reasons and shop online more.
In the meantime, Amazon and big discounters like Walmart and Target are only becoming stronger as they offer low prices and one-stop shopping.
JCPenney will shut nearly a third of its stores in the next two years as it reforms, leaving just 600 locations open.
SOURCE: The Textile Today
Bangladesh’s economy is growing fast with its local backward linkage sector supplying locally produced accessories. But according to a recent report in a local daily, small and cottage industries say that big government plants and manufacturing units are unwilling to acquire such spare parts from the small manufacturing enterprises.
The govt. is procuring such components from big corporations who are importing these parts from abroad.
Small manufacturing enterprises say they have obtained their registration from the Bangladesh Small and Cottage Industries Corporation (BSCIC) to meet the standard and specification on demand.
It is worth mentioning that there is no complaint about the product’s quality or any other related issues. Those are reported to meet the standard and specifications on demand.
On the other hand, the govt. is procuring such components from big companies under a policy instrument that was adopted by the ministry of industry in 2010.In the last 35 years, Tk 6.0 billion worth of orders were placed by these big manufacturing units, which were imported.
Small entrepreneurs of the backward linkage industry say this is directly hurting them and the country’s capability in achieving self-reliance. Not to mention, decreasing the country’s gross domestic product (GDP), says the report. Small and cottage industries, including light engineering, cannot prosper with facing such obstacles.
They also urge BSCIC to increase its monitoring of the large government manufacturing units’ inventories for procurement.
Other complaints comprise fragile justifications of lack of quality of their products for rejection of their bids as well as engagement of local agents who irritate or obtain their international bids through conspiracies.
The backward linkage sector is paramount for the country to thrive and acquiring self-capability. At the same time, employing Bangladesh’s large population is one of the biggest achievements of this industry. Ensuring sustainable development of backward linkage through such small manufacturing units has a huge prospect.
SOURCE: The Textile Today
Canada was down in its apparel imports both Y-o-Y basis and M-o-M basis in September ’20, owing to uncertain market conditions as analysed and reported by Apparel Resources recently.
There were only two countries – India and USA – in top 10 importing destinations of Canada which marked growth in September over August this year; every other major shipper fell in its shipment to Canada.
India surged by 2.09 per cent in Sep. ’20 over Aug. ’20 to ship US $ 17.86 million worth of garments to Canada. However, the country could tap yearly growth and fell by 17.64 per cent as compared to Sep. ’19, making a recovery of business by just 82.36 per cent on the yearly note.
As far as USA is concerned, the benefit of revised NAFTA (now USMCA), which came into light in August, can be seen! USA shipped 2.57 per cent more garments in value terms to Canada worth US $ 20.56 million in Sep. ’20 as compared to Aug. ’20.
China, the largest apparel shipper to Canada, fell by 28.91 per cent on monthly note to US $ 344.88 million in Sep. ’20 as compared to Aug. ’20 and also declined by 6.56 per cent from Sep. ’19 figures.
The drastic fall in monthly value has also caused a sharp decline in the Chinese share to the Canadian market which has come down to 38 per cent in Sep. ’20 from 45 per cent in Aug. ’20.
Bangladesh too plummeted by 7.61 per cent in Sep. ’20 on M-o-M basis to ship US $ 104.91 million worth of garments to Canada. The country was also down on Y-o-Y basis by 3.10 per cent in Sep. ’20.
SOURCE: The Apparel Resources
Dutch fibre solutions company The Movement has signed a deal with textiles recycler Giotex to embed its Aware tracer particles in the latter's recycled cotton blended yarn.
It means that The Movement's Aware integrity solution is now available in North and South America via Giotex which claims to be the largest spinner of recycled cotton and polyester pre-dyed fibres and blends in the Americas.
The two companies say that the agreement means that US brands and retailers, which manufacture locally, will now have access to 100 per cent traceable recycled cotton yarn.
Source:Eco Textile
Duvaltex, a leader in contract textiles, and Steelcase, the leader in office furniture, have launched Intersection, an exclusive Steelcase screen and panel fabric. Created in partnership with Seaqual initiative, which turns marine plastic waste into recycled products with full traceability, Intersection is the first Ocean Waste Clean Impact Textiles.
Offered in 17 colours, Intersection is available throughout the Steelcase surface materials distribution network and applicable on over 50 Steelcase screen and panel product lines.
Every year, several million metric tons of plastics enter our oceans. By partnering with Seaqual initiative, Ocean Waste Clean Impact Textiles transform ocean waste into amazing textiles, contributing to the collective effort to clean our oceans and reduce plastic pollution worldwide, according to a press release by Duvaltex.
All Ocean Waste Clean Impact Textiles are made with post-consumer recycled polyester that include Seaqual Yarn made from plastic ocean waste. Seaqual initiative collaborates with fishermen, NGO’s, and several other stakeholders to collect waste and clean our oceans. The waste collected is subsequently categorised, separated, and cleaned. Plastics are processed and upcycled into polymer to be used as yarn, which is then transformed to create the industry-leading sustainable Ocean Waste Clean Impact Textiles. For every pound of textile produced, up to half a pound of waste is removed from our oceans.
Ocean Waste Clean Impact Textiles is the second advanced technology released under Duvaltex’s Clean Impact Textiles sustainability brand umbrella, following the ground-breaking NeoCon Award-winning 100 per cent fully biodegradable textile in 2019.
“Our aim with Clean Impact Textiles is to reduce the environmental impact of textile manufacturing as much as possible by innovating the way products are sourced, manufactured and disposed of at the end of their useful life. Every action with Clean Impact Textiles is designed with sustainability in mind.” Alain Duval, CEO of Duvaltex said.
“When Duvaltex came to us, they had this incredibly beautiful fabric that not only met all of our technical needs as it relates to application and screen design, but also had this incredibly important environmental story,” Kari Miller, product manager for global surface materials at Steelcase said.
Source:Fibre2Fashion News Desk
The third China textile Material Exhibition,Keqiao Shaoxing will be held in keqiao, shaoxing from December 3rd to 5th. The main products of this exhibition are fiber, yarn, grey cloth and dyes&additives.This textile exhibition is held in order to adapt to the development pattern of economic circulation between domestic and international enterprises. It is reported that the exhibition will devote to improving its quality and professional level, advertising itself in many directions, and delivering information to the whole industry. This exhibition will help exhibitors explore market in Keqiao textile city and increase their competition ability.
SOURCE: Global Textiles
Spanish fashion brand Mango has joined the United Nations’ Fashion Charter for Climate Action committing the company to achieve net-zero greenhouse gas (GHG) emissions by 2050 and a 30 per cent reduction by 2030.
The company joins a growing number of industry stakeholders to align with the Charter, as it looks to turn the tide on fashion’s vast environmental impact.
Having been one of many firms to have signed the Fashion Pact upon its inception last year, Mango is now signalling its growing appetite to transform its operational impact and mitigate both unsustainable levels of resource consumption and CO2 emissions.
Source:Eco Textile
More than 60 retailers, including Burberry, Missguided, ASOS and Primark have pledged to support the British Retail Consortium's Climate Action Roadmap which sets a target of net-zero emissions by 2040.
The BRC's roadmap applies to the sector's direct operations and its entire global supply chain, and includes decarbonising stores by 2030, deliveries by 2035 and products by 2040.
Outlined at the UNFCCC Race to Zero Dialogues online event today (10 November), the Climate Action Roadmap includes plans to reduce emissions from shops and distribution centres, create net-zero logistics operations, increase sustainable sourcing for products, and help customers and employees reduce emissions.
Source: Eco Textile
