Textile Raw Material Price 2015-06-10
|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1259.72 |
USD/Ton |
0% |
|
VSF |
2031.85 |
USD/Ton |
0% |
|
ASF |
2490.89 |
USD/Ton |
0% |
|
Polyester POY |
1214.87 |
USD/Ton |
0% |
|
Nylon FDY |
3098.33 |
USD/Ton |
0% |
|
40D Spandex |
6392.34 |
USD/Ton |
0% |
|
Nylon DTY |
2685.76 |
USD/Ton |
0% |
|
Viscose Long Filament |
1443.17 |
USD/Ton |
0% |
|
Polyester DTY |
3359.24 |
USD/Ton |
0% |
|
Nylon POY |
5960.21 |
USD/Ton |
0% |
|
Acrylic Top 3D |
1492.09 |
USD/Ton |
0% |
|
Polyester FDY |
2918.95 |
USD/Ton |
0% |
|
30S Spun Rayon Yarn |
2723.27 |
USD/Ton |
0% |
|
32S Polyester Yarn |
1989.45 |
USD/Ton |
0% |
|
45S T/C Yarn |
2984.18 |
USD/Ton |
0% |
|
45S Polyester Yarn |
2185.14 |
USD/Ton |
0% |
|
T/C Yarn 65/35 32S |
2494.97 |
USD/Ton |
-0.65% |
|
40S Rayon Yarn |
2886.34 |
USD/Ton |
0% |
|
T/R Yarn 65/35 32S |
2739.58 |
USD/Ton |
0% |
|
10S Denim Fabric |
1.14149 |
USD/Meter |
0% |
|
32S Twill Fabric |
0.96211 |
USD/Meter |
0% |
|
40S Combed Poplin |
1.35348 |
USD/Meter |
0% |
|
30S Rayon Fabric |
0.77458 |
USD/Meter |
0% |
|
45S T/C Fabric |
0.78274 |
USD/Meter |
0% |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.16307 USD dtd. 10/06/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Southern India Mills’ Association (SIMA) will facilitate and assist textile associations and textile units to organise skill development programme under the Pradhan Mantri Kaushal Vikas Yojana Scheme. Association chairman T. Rajkumar has said in a press release that the Textile Sector Skill Council has given its approval to the association to train the trainers, validate the documents of individual textile units, and recommend the units to the council for affiliation as training providers. The association organised workshops in Coimbatore and Madurai on June 9 and 10 and will conduct one in Salem on June 11 to create awareness about the scheme. SIMA would be a knowledge partner to enable the entire textile value chain (spinning to garment making) in the southern States to avail of the benefits under the scheme, affiliate with the council and train the workers. Unemployed youth can get trained.and placed in the textile units.
SOURCE: The Hindu
Designer-turned-BJP politician Shaina NC came up with an innovative concept of organizing an event where reputed Indian designers will converge in a bid to revive core Banarasi handloom products, including the fabled saris. Union textile minister Santosh Gangwar and development commissioner (handloom) of Union ministry of textile Alok Kumar will be part of this event. She said that creating design sensibility among local manufacturers is the basic objective behind this endeavour. They will display their designs woven by Banarasi artisans under Make in India campaign. This will help in boosting the wages of handloom weavers and compel those who had migrated to other textile hubs like Surat, to return to their old form of weaving in the long run. The ministry of textile and Banarasi Vastra Udyog Association (BVUA), will interact with stakeholders of Banarasi handloom industry to chart a common course of action for the industry
According to Ashok Dhawan of BVUA, direct interaction between designers and manufacturers will help in evolving a synergy in their working. It will also help both these groups in knowing what they expect from each other. This could be the best way to revive the industry by focusing on improving its creativity and demand of products. Vaibhav Kapoor from BVUA said that so far designers Tarun Tahiliani, Vikram Phadnis, Neeta Lulla, J J Valaya, Anamika Khanna, Lina Tipnis, Nachiket Barve, Kumar Vikas Saxena, Mark Robinson, Alka Nishar, Wendell Rodricks, Rakesh Thakore, David Abraham, Rohit Bal, Gaurva Gupta, Anju Modi, Sonika Agarwal, Rahul Mishra and Rajesh Pratap Singh have been confirmed for the event.
SOURCE: Yarns&Fibers
The ‘Mafatlal brand’ of Mafatlal Industries Limited (MIL), the flagship company of the Arvind Mafatlal Group, was awarded India’s No.1 Brand in 2014 under India’s Best Textile Company Category. The award was presented by No.1 Brand Awards Council recently in a glittering ceremony held at Hyatt Hotel, Mumbai. Mr. Rajiv Dayal, Managing Director of MIL stated “we are delighted to receive this award”. Mafatlal Industries Limited is a pioneer for quality textiles in India since 1905.The Company’s product portfolio consists of yarn dyed and piece dyed Shirting’s, fiber dyed Suiting’s in various polyester, viscose, cotton and woollen blends, Voiles, Prints, Linens, Bleached White Fabrics, Rubbia, poplins, Cambric, value added and fashion Denims, School Uniform fabrics, Corporate/ Institutional Uniforms, Bed & Bath Linen and Readymades. The sales volume of Mafatlal Industries Ltd. is over 80 million meters per annum..The Company has two vertically integrated composite manufacturing facilities at Nadiad and Navsari in Gujarat.
SOURCE: The Financial Express
India’s current account deficit (CAD) narrowed to $1.3 billion or 0.2% of gross domestic product (GDP) in January-March compared with $8.3 billion the previous quarter, as lower oil prices shrank the import bill by 13.4%. The country’s balance of payments recorded a quarterly surplus of $30.1 billion, helped by robust capital inflows and the narrow CAD, data from the Reserve Bank of India showed. This was the sixth consecutive quarter of surplus. The CAD for the full year too reduced to $27.52 billion or 1.3%of GDP, from $32.36 billion or 1.7% of GDP the previous year. The CAD has narrowed for the second straight quarter now. While the trend of decline in imports and consequent narrowing of the merchandise trade deficit seemed to continue into the current quarter and augured well for the current account, as far the capital side is considered, there is some reason for worry as net portfolio inflows (FPI) have been in the negative in May and up to now in June. While net FPI/FII inflows were R78,975 crore in January-March, these have been minus R2,500 crore so far in the current quarter. The sharp fall in imports owing to an 2.3% fall in international oil prices during January-March and a muted growth in gold imports helped the country’s external position.
Merchandise trade deficit for the January-March period stood at $27 billion, much lower than around $40 billion in the previous three-month period. However, a fall in exports is worrisome. The decline in exports has been attributed to low demand in trade partners owing to a slowdown in most advanced economies. A stronger rupee in comparison to other currencies has also dampened exports by eroding competitiveness. The rupee has weakened by just 1.2% so far in 2015 even as competitive emerging market currencies have fallen by as much as 8%. The currency is overvalued by around 11% in real effective exchange rate terms, which measures competitiveness of the rupee. Nevertheless, given the high returns of Indian equities and bonds, foreign portfolio investment flows were $12.4 billion during the quarter, the biggest contributor to the BoP (balance of payments) surplus.
Inflows from foreign direct investment (FDI) were $9.6. A massive 48% fall in crude oil prices during 2014-15 led to a 19% fall in the oil import bill to $164.8 billion for the year. But this was offset by a 19% rise in gold imports to $34.44 billion in 2014-15, indicating that investment into the yellow metal is still strong. Gold imports had been declining from their peak of $16.3 billion in Q1of FY14 but have bounced back over the last two quarters. In order to dampen gold demand, the government proposed a monetisation scheme last month and invited suggestions on the same. The country’s CAD of had been an unsustainable 4.7% in FY13, prompting the government and the RBI to crack down on gold imports. Measures had included several hikes in import duty on the metal along with restrictions on the quantum of imports as well.
SOURCE: The Financial Express
India with an expected growth rate of 7.5 per cent this year is set to surpass China and for the first time is leading the World Bank’s growth chart of major economies. “With an expected growth of 7.5 per cent this year, India is, for the first time, leading the World Bank’s growth chart of major economies,” said Kaushik Basu, World Bank Chief Economist and Senior Vice President after the release of the latest Global Economic Prospects (GEP) report. China is projected to grow at 7.1 per cent this year. Developing countries are now projected to grow by 4.4 per cent this year, with a likely rise to 5.2 per cent in 2016, and 5.4 per cent in 2017, the report said. In China, the carefully managed slowdown continues, with growth likely to moderate to a still robust 7.1 per cent this year. In India, which is an oil importer, reforms have buoyed confidence and falling oil prices have reduced vulnerabilities, paving the way for the economy to grow by a robust 7.5 per cent rate in 2015, the report said. Basu said “slowly but surely” the ground beneath the global economy is shifting. “China has avoided the potholes skillfully for now and is easing to a growth rate of 7.1 per cent; Brazil, with its corruption scandal making news, has been less lucky, dipping into negative growth,” he said. The main shadow over this moving landscape is of the eventual US liftoff, he noted. Growth in South Asia is expected to continue firming to 7.1 per cent this year, led by a cyclical recovery in India and supported by a gradual strengthening of demand in high-income countries.
The decline in global oil prices has been a major benefit for the region, driving improvements in fiscal and current accounts, enabling subsidy reforms in some countries, and the easing of monetary policy, the report said. In India, new reforms are improving business and investor confidence and attracting new capital inflows, and should help raise growth to 7.5 per cent this year, the report said. In Pakistan, remittances are expected to remain solid, and manufacturing and service sectors should continue to recover. However, growth is expected to remain moderate, reflecting ongoing energy constraints, the report said. According to the report, developing countries face a series of tough challenges this year, including the looming prospect of higher borrowing costs as they adapt to a new era of low prices for oil and other key commodities, resulting in a fourth consecutive year of disappointing economic growth this year. “Developing countries were an engine of global growth following the financial crisis, but now they face a more difficult economic environment,” said World Bank Group President Jim Yong Kim. US economic recovery is continuing and interest rates remain low in other major global economies. However, there are considerable risks around this expectation, the report argues.
SOURCE: The Financial Express
Despite a drop in investment commitments of $6.2 billion last year, India has figured in top five emerging economies for highest investment commitments in private sector, infrastructure sectors — energy, transport and water, according to a World Bank report. “Our update reveals the top five countries with the highest investment commitments in 2014 are Brazil, Turkey, Peru, Colombia and India,” said Clive Harris, Practice Manager, Public-Private Partnerships, World Bank Group. “These five countries together attracted $78 billion, representing 73 per cent of the investment commitments in the developing world in 2014”.
According to the World Bank, total infrastructure investments in 139 emerging economies - for projects with private participation in the energy, transport and water sectors — rose to $107.5 billion in 2014. This was largely by increasing activity in Brazil, according to an update released to the World Bank Group’s “Private Participation in Infrastructure” database, which also said investment commitments declines in China and India. Investment commitments in China in 2014 were $2.5 billion, the lowest since 2010. Investment commitments in India also waned in 2014, dropping to $6.2 billion. Sub-Saharan Africa saw an especially steep fall from $9.3 billion in 2013 to $2.6 billion in 2014 because of a drop in activity in the energy sector. However, 2014's figure was closer to levels seen before 2012, and the emergence of activities in countries such as Ghana, Kenya, and Senegal is particularly encouraging, the bank said. The increase in the global investment commitments total is mainly due to increasing activity in the Latin America and the Caribbean (LAC) region, which captured $69.1 billion - much of which is attributable to investment commitments in Brazil, Colombia and Peru, which together accounted for 55% of the global total.
Brazil's large stake is a continuation of a recent trend: Brazil captured 24% of global investment in 2013 and 42% in 2012. In 2014, Peru saw the completion of 11 deals totaling $8.1 billion. Eight of the 11 deals were in energy, while the largest project - the Lima Metro Line 2, at $5.3 billion - was in the transport sector. The metro line will stretch 35 kilometres and eventually connect Lima with Callao, including the international airport. According to the Bank, the energy sector had the largest number of new projects, but the sector with the greatest total of investment commitments was the transport sector, receiving $55.3 billion, or 51% of total global investment commitments. Consistent with the trend in previous years, roads attracted the most investment commitments with $28.5 billion in 33 projects, about the same number as in 2013. Four out of the top five road projects were in Brazil, with the fifth-largest project in Turkey.
SOURCE: The Business Standard
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 64.00 per barrel (bbl) on 10.06.2015. This was higher than the price of US$ 61.66 per bbl on previous publishing day of 09.06.2015.
In rupee terms, the price of Indian Basket increased to Rs 4088.32 per bbl on 10.06.2015 as compared to Rs 3942.54 per bbl on 09.06.2015. Rupee closed stronger at Rs 63.88 per US$ on 10.06.2015 as against Rs 63.94 per US$ on 09.06.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on June 10, 2015 |
Pricing Fortnight for 01.06.2015 (May 14 to May 27, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
64.00 (61.66) |
63.49 |
|
(Rs/bbl |
4088.32 (3942.54) |
4045.58 |
|
|
Exchange Rate |
(Rs/$) |
63.88 (63.94) |
63.72 |
SOURCE: PIB
The trade programme known as the African Growth and Opportunities Act (Agoa), currently before American lawmakers, provides eligible sub-Saharan countries duty-free access to the world’s top apparel market, giving Africa a competitive edge over suppliers such as Bangladesh and Vietnam. The US administration has already called for Congress to renew the programme well ahead of its expiry date of September 30, 2015. The programme, in which about 40 African countries are eligible to take part, could be extended another 10 years. “Ten years is a game-changer,” said Gail Strickler, assistant US trade representative for textiles and apparel, adding the extension could be passed “imminently”. Lack of skills “Africa should be able to quadruple its exports, literally without a lot of trouble, creating another 500,000 new jobs.” Established in 2000, Agoa has already been renewed past its original 2008 expiry date. Last year, US clothing imports from sub-Saharan countries reached $986 million, up nearly six per cent from 2013, as countries such as Lesotho, Kenya, Ethiopia and Tanzania participated in the programme. Analysts said Africa had lower labour costs and abundant raw materials, such as top-quality cotton from Uganda, but congested ports, a poor road network, lack of skills and old technology were a hindrance. “While the costs may be rising in Asia, they are still way more competitive than Africa, especially on productivity, quality and product range,” said Joseph Nyagari, an official at the Nairobi-based African Cotton and Textile Industries Federation. African officials and Asian firms with factories in Africa welcomed AGOA’s extension, saying investment would follow. Taiwanese firm New Wide Garment, which has six factories in Kenya and one each in Lesotho and Ethiopia, also aims to expand. “Now with a ten-year extension it means most of the investors will jump into Africa. We intend expanding more in Africa,” Heman Boodia, its Africa vice president told Reuters.
SOURCE: The Standard Media
Bangladeshi RMG producers are now facing stiff competition to penetrate into the market of the United States in the wake of the production cost hike and losing competiveness. Yet, export of Bangladeshi RMG products to the US market has grown by 7% in April 2015, to US$1.8bn, a good rise from 2.3% decline in 2014, according to data recently released by OTEXA. Besides, overall export to the US market also seen a 7.24% gain to $1.9bn. RMG manufacturers attributed production, political unrest and safety inspection launched by the global retailers’ platforms the Accord on Fire and Building Safety in Bangladesh and Alliance for Bangladesh Worker Safety.
Myanmar, the emerging exporter of the RMG products to US market has posted a 123% growth to more than $8m in the first four months of this year. RMG export to the US market from Vietnam also increased by 16.5% to $799m while India’s export growth grew by 9.82% to $1.4bn. Meanwhile, China, the global leader of apparel manufacturing, lost its share in the US market, which was captured by Vietnam, Bangladesh and India in recent times. China’s export to the US market rose by over 1%, which is a positive sign for Bangladesh as it was expected that this share would be shifted to Bangladesh from China. “As the fate of Bangladesh RMG industry is hanging in the balance, our competitors are taking the advantage of it,” BGMEA President MdAtiqulIslam told the Dhaka Tribune.
Islam noted that productivity of Bangladeshi workers was lower than that of the competitors and devaluation of euros against dollars and political unrest also worked as catalysts to lower the growth. “On the other hand, compliance has increased production cost, which lead us to lose competitiveness in the global market,” said Islam. For gaining competitiveness and to overcome the existing hurdles, the BGMEA chief urged the government to provide policy support including lowering tax at source. “Apart from political unrest, compliance issue including installation of fire safety equipment and carry out the remediation cast shadow on the production cost leading challenging in competitiveness and the most challenge for the sector is to lose competitiveness,’’Abdus Salam Murshedy, president of Bangladesh Exporters Association (EAB), told the Dhaka Tribune. Though production cost has risen but the product price has not increased, which also makes the sector less competitive and lose market share, he said. “We are introducing production engineering and automation to reduce production cost and enhance productivity to tackle the situation.” He also urged the government to provide policy support to reduce production cost.
SOURCE: The Global Textiles
Clothing and apparel is expected to remain the country's top export item in the foreseeable future, contributing almost 20 percent of the projected growth in total merchandise exports in the decade to 2030, according to an HSBC report. Global Trade Connection, released on June 4, said Vietnam has also built up a strong presence in the global market for telecommunications in recent years and this should put it in a good position to meet rising demand for consumer goods in emerging Asia. Indeed, behind clothing and apparel, ICT equipment will make the second largest contribution to Vietnam's export growth in 2015-30. Vietnam's geographical location in Asia, with good access to India, China and Southeast Asia, leaves it well placed to trade with fast-growing neighbours. It is anticipated that the country's fastest-growing export destinations in the decade to 2030 will be China, India and Malaysia, with exports to all these growing by at least 14 percent a year.
Within emerging Asia, trade liberalisation has risen in recent years and free-trade negotiations between ASEAN members are well under way. Though the US remained Vietnam's largest export market, China is forecast to become Vietnam's largest export destination by 2030. The report forecast China's economy to grow by 5.5 percent a year in the decade to 2030, slower than in the decade to 2014 but still a healthy pace. Vietnam's location and strong foothold in both clothing and telecoms means it is well-placed to access this buoyant consumer market. The US and Vietnam enjoy historically strong commercial linkages, and by 2030 the US will still account for 15 percent of Vietnam's exports. The two are among the 12 countries currently negotiating the Trans-Pacific Partnership (TPP). Once the agreement is finalised, Vietnam's exports will become even more competitive in the US, probably boosting trade between the two countries.
According to the annual World Economic Forum Global Competitiveness report, Vietnam's score for infrastructure has improved over the last decade, supported by higher FDI inflows and reflecting strong growth. However, it still ranks only 81st in infrastructure out of 144 countries in the latest report, well behind Thailand (48th) and Indonesia (56th). Substantial infrastructure development means industrial machinery will continue to be Vietnam's largest import sector through 2030, contributing around a quarter of import growth over the forecast period. The next two most important import sectors will be textiles and ICT equipment, supporting Vietnam's export base in these sectors.
China and the Republic of Korea, emerging Asia's two leading export nations over the last decade, will continue to be Vietnam's largest import partners through 2030. As well as having strong footholds in the global market for industrial machinery, the two countries also present relatively easy transport logistics, with China sharing a border with Vietnam and the RoK just a short journey by sea. By late 2015, the Regional Comprehensive Economic Partnership, a free-trade agreement being negotiated among ASEAN countries and the six states with which ASEAN has existing trade agreements, is due to be finalised and this should give a further boost to regional trade.
SOURCE: The Global Textiles
"Pakistan's share in world textile trade of US 1.8 trillion dollars is only one percent despite of the fact that it is the fourth largest cotton producing country in the world and we have to make all-out efforts to increase our share to a reasonable level which should be proportionate to our potential." President of Faisalabad Chamber of Commerce and Industry (FCCI) Engr Rizwan Ashraf stated this while talking to Dr Arshad Ali, new Rector of the National Textile University (NTU) and other ffaculty members who visited FCCI hereon Wednesday. He said that Federal Minister for Planning Professor Ahsan Iqbal has fixed target of enhancing textile exports within 5 years to US 25 billion dollars from existing exports of US 13 billion dollars and then to US 150 billion dollars by 2025. He said that these targets will be achieved if core issues of textile sector are resolved in addition to creating a business friendly environment in the country. In this connection, President FCCI also stressed a close liaison between government, academia and industry to suggest plans to achieve these targets.
Phenomenal growth is imperative for the survival of textile industry and Engr Rizwan Ashraf warned that we could not achieve these targets and our survival will also be at stake if we fail to maintain minimum growth rate. He said that government has its own priorities but industry and NTU must sit together and deliberate on survival of this sector which is actually the backbone of the national economy. He said that growth in textile sector can not only help us to give a quantum jump to our exports but also provide jobs to millions of youth. He also extended unconditional co-operation on behalf of FCCI with NTU in this regard. Rector NTU Dr Arshad Ali underlined the importance of Vision 2025 and told that he has written a letter to Professor Ahsan Iqbal to improve existing infrastructure in addition to infusing a new spirit with a positive change in our mindset. E said it is imperative to achieve the set targets for the textile sector. Instead of depending on government we must collaborate to resolve our issues, he added.
SOURCE: The Business Recorder
Pakistan Yarn Merchants Association (PYMA) rejected budgetary increase in sales tax on yarn and cloth as anti-trade and industry and termed it a drone attack on yarn and cloth business. Central Chairman PYMA Qaisar Shamas Guccha, Zonal Chairman Muhammad Akram Pasha and Zonal Vice Chairman Adnan Zahid talking to newsmen stated that recent Budget has increased sales tax on Yarn and Cloth to 3% and 5% respectively from 2 and 3% previously. Demanding withdrawal of yearly incremental sales tax they said that textile sector was already heavily burdened and imposition of additional sales tax on yarn and cloth would crush this sector. They said, "We are already facing cheap yarn import from India and cheap cloth export from Russia which were damaging the local markets and we were unable to compete". They said that sales tax on yarn and cloth is being increased every year which has made the inputs very costly and our textile products are not able to compete with regional countries and further our textile export was continuously sliding for the last 11 months by 7 percent. They said that with increase in sales tax this sector would face destruction because the yarn and cloth are the base of textile industry and these constitute the basic raw material for sizing, power looms, printing, processing, made ups and garments sectors and millions of people and ancillary sectors were directly influenced by yarn and cloth sectors. They further alleged that the government was consistently ignoring the textile sector and despite persistent decline in export no incentives have been provided in the budget. They said that textile sector was the back bone of the industry and was earning more than 50 percent of foreign exchange for the country and was providing 40 percent employment to the people. They said the textile sector was already confronted with energy crisis which had resulted in closure of 40 percent units and huge fall in productivity of the industry. Resultantly, millions of people attacked with this yarn and cloth as well as textile industry and ancillary sectors were facing crisis and unemployment. They said the government was paying more attention to compliance of the IMF and neglecting the local industry and trade.
SOURCE: The Business Recorder
Textile producers are urging the government to take swift action to help the industry survive amid weak sales and rising production costs, otherwise they may have to close their businesses or see more layoffs. With an economic slowdown pressing people’s purchasing power, the textile industry is facing flat growth with a number of companies already forced to dismiss workers, according to Indonesian Textile Association (API) chairman Ade Sudrajat. Ade said his business group had filed a report with the Industry Ministry regarding the recent dismissal of tens of thousands of workers at textile factories across Java due to economic pressure. “Based on our report given to the Industry Ministry, there are at least 6,000 textile factory workers who have been dismissed in four districts in Bandung regency between January and May,” Ade said on the sidelines of a textile exhibition in Jakarta on Wednesday. The business group reported previously that 120 textile producers in Bandung regency, West Java, had laid off at least 6,300 workers and trimmed working time from seven days to just three days as a result of weak sales. Sales slumped by more than 40 percent in the January-April period from the past year. Ade said rising costs, especially in electricity, had impacted the local textile industry, which also faced pressures from rupiah depreciation as half of its raw materials were imported.
Indonesia’s economy decelerated to 4.71 percent year-on-year (yoy) in the first quarter, its slowest pace in nearly six years, partly due to lower domestic consumption, while recently the rupiah and stock prices weakened amid growing concern that the surge in inflation last month would further damage the country’s economic outlook. As the quickest solution to help the industry, Ade said the business group had requested that related ministries and state firms absorb production, pointing out that “many textile companies in West Java produced sarongs, which are often in high demand during Ramadhan and Idul Fitri festivities”. The association was convinced that the Social Affairs Ministry would be able to absorb the products for various purposes, such as charities, Ade said. According to Ade, West Java is the largest contributor to national textile production with 49 percent, while Jakarta and Banten contribute 16 percent, Central and East Java 14 percent each and the remaining 3 percent comes from other regions. “In the medium term, the government should find a solution for how to decrease electricity costs, or else we cannot compete with imported products. We also hope that government spending, especially for infrastructure and villages, can be accelerated for disbursement,” Ade said. Also on Wednesday, Industry Ministry director general for base manufacturing industries Harjanto said the ministry had requested a special coordination meeting with the Coordinating Economic Ministry and law enforcers to address problems suffered by the textile industry, including illegal clothing imports.
SOURCE: The Jakarta Post
As Pakistan has expressed reservations, the Cabinet on Wednesday cleared the signing of a motor vehicles pact with three other nations of the South Asian Association for Regional Cooperation (Saarc) grouping — Bhutan, Bangladesh and Nepal. The pact, to be signed on Monday, will enable seamless transit of passenger and cargo vehicles among these nations. Road transport and highways minister Nitin Gadkari now goes to Bhutan, where the pact is scheduled to be signed with his three counterparts. A meeting of secretaries of transport of the four countries was organised by Gadkari’s ministry in February to finalise the draft, similar to the Saarc Motor Vehicle Agreement (MVA) draft.
OTHER DECISIONS
Convention on seafarer identity: Nod to ratify the International Labour Organization Convention on a biometric-based Seafarers Identity Document, to ensure foolproof security system to ward off security breach and possible terror attacks
Road projects for Rs 4,721 cr: Nod for highway projects in Madhya Pradesh and Telangana
Earlier, the Cabinet had approved a proposal to sign the Saarc MVA during the seven-nation summit at Kathmandu in November 2014. “Unfortunately, it could not be signed due to reservations of Pakistan. The Saarc declaration at the Kathmandu Summit also encouraged member states to initiate regional and sub-regional measures to enhance connectivity,” went an official statement issued on Wednesday.
Cheque bouncing
The Cabinet also approved an ordinance to amend the Negotiable Instruments Act, to enable filing of cases relating to bouncing of cheques only in a jurisdiction where the cheque is presented for clearance. This would be the 14th ordinance since Narendra Modi government took charge in May last year. The move has been necessitated by a Supreme Court order and the Bill in this regard was passed by the Lok Sabha in the recent session. It could not be cleared in the Rajya Sabha.
Oil pollution damage
The Cabinet also cleared the shipping ministry’s proposal for India's accession to the international convention of 2001 on civil liability for bunker oil pollution damage of the International Maritime Organization, and to amend the Merchant Shipping Act, 1958, to give effect to this ‘bunker convention’, the associated Salvage Convention and the Nairobi convention on wreck removal.
The bunker convention aims to ensure adequate, prompt, and effective compensation for damage caused by spills of oil, when carried as fuel in ships' bunkers. The territorial jurisdiction for damage compensation extends to territorial sea and exclusive economic zones. It would now apply to an Indian vessel wherever situated and to a foreign flag vessel while within Indian jurisdiction. The registered owner of every vessel has to maintain a compulsory insurance cover which allows for a claim for compensation on pollution damage to be brought directly against an insurer. Every ship above a certain tonnage must have a certificate on board to this effect, and may not enter or leave Indian jurisdiction without one. The liability cover for pollution damage shall be equal to the limits of liability under the applicable national or international limitation regime but in all cases, not exceeding an amount calculated in accordance with the 1976 convention on limitation of liability for maritime claims. India is a party to this and its provisions already exist in the Merchant Shipping Act and rules.
The bunker convention has been in force internationally since November 21, 2008, and maritime nations accounting for 91 per cent of world shipping tonnage are parties to this. If India does not become a party, too, Indian flag ships visiting foreign ports will have to continue with the present dispensation of approaching foreign countries for bunker insurance compliance certificates, while foreign ships visiting Indian ports are not subject to compulsory insurance.
As for the conventions on salvage and wreck removal, to which India is already a party, it will facilitate a more purposeful approach in this regard, introducing globally recognised and approved rules. The Bill provides for duties of the salvor, owner and master of a vessel, plus rights and duties of the central government in cases of maritime casualty, in protecting the environment and coastline, and to pass directions on salvage.
SOURCE: The Business Standard
When Prime Minister Narendra Modi launched the ‘Make In India’ campaign asking international investors to manufacture from India, little did he know his idea would resonate with the Chinese. China recently rolled out a similar campaign — Made in China 2015 — featuring innovation and high-end manufacturing, among others, which according to China’s Ambassador to India Le Yucheng is ‘compatible, complementary’ with the Make in India campaign. Speaking at the Federation of Indian Chambers of Commerce and Industry here on Wednesday, Le said the Modi-led government had taken several significant steps to bring in Chinese businesses into India. He lauded Modi’s initiative to grant electronic visas to Chinese nationals and appointment of a joint secretary in the Prime Minister’s Office to look into the facilitation of Chinese investments in terms of relaxing restrictions and security checks for them.
The Chinese envoy’s statement got accentuated when Department of Industrial Policy and Promotion secretary Amitabh Kant said: “India is a far more open economy than China. We will open it more for the Chinese… We will make it easier to do business here not only for the World Bank but for ourselves.” He also addressed the seminar on ‘China-India Industrial Cooperation.’ Kant, however, said the economic relationship between India and China “will not survive” in the long run unless the issue of ballooning trade deficit between both countries is addressed. “There is a huge trade deficit and it is not sustainable because a lot of this is non-essential imports… To address this, Chinese companies need to look at India and the vast market it provides and they have to look at manufacturing here,” he added.
According to Le, China will provide a ready market to Indian high-end pharmaceuticals and information technology. Last month, during the visit of Prime Minister Modi to China, India and China signed 26 business deals worth $22 billion. Several large-scale Chinese firms are planning to invest heavily in the country’s infrastructure, power and telecom sectors. “With China’s reliable technology and advanced facilities offered at an affordable price, infrastructure can be a highlight in our cooperation,” said the envoy, adding cooperation in the railway sector was a case in point. India and China are jointly setting up a railway university. The ramping up of speed of the Chennai-Bengaluru-Mysuru railway and redevelopment of railways stations have already begun. The feasibility study of the 1,754-km high-speed rail from Delhi to Chennai has also been initiated by both sides, Le said. “We are also working together in smart city projects. GIFT (Gujarat International Finance Tec-City) and Shenzen of China have chosen as the first batch of pilot cities in our smart city cooperation. In addition, our cooperation in power generation, real estate development and other infrastructure sectors is in full swing,” he said. At present, there are eight sister cities and two sister states between India and China, the envoy said. He noted Tamil Nadu and Andhra Pradesh had become focal points to Chinese firms. He said Chinese manufacturers are also planning to invest in Kakinada special economic zone. Le added the construction of Chinese industrial parks in Pune and Vadodara were in full swing. We are witnessing a new wave of business cooperation between our two countries with many success stories, headed.
SOURCE: The Business Standard
