The Indian Government has officially kicked off the preferential credit package of $300 million to promote India-Vietnam garment cooperation, the Vietnamese media has reported. India will invest in building an industrial park specializing in garment and textile material production near Ho Chi Min City. The credit package will help Indian businesses develop factories in Vietnam, and promote Vietnamese businesses concerned to expand cooperation with Indian partners. It will support Vietnam’s garment and textile businesses to develop material sources and implement weaving and dyeing projects. Truong Van Cam, representative from the Vietnam Textile and Apparel Association (Vitas) said the Vietnam Export Import Commercial Joint-Stock Bank (Vietnam Exim bank) was selected to disburse the credit package. The credit package also aims to fully tap opportunities after the Trans Pacific Partnership (TPP) agreement which is expected to be signed in the near future.
SOURCE: Fibre2fashion
Textile and steel are two important sectors in Iran’s Isfahan province where India and Iran can cooperate for mutual economic development, Indian ambassador to Iran DP Srivastava said. The ambassador’s remarks came in a meeting with head of Isfahan Chamber of Commerce. He expressed India's readiness to develop trade with the province. Referring to investment opportunities in tourism industry in Isfahan, the ambassador said that Tata Company, as one of Indian multipurpose investment companies can be active in the sector of hotel building in Isfahan. He said that India purchased $30 billion of crude oil from Iran last year and that New Delhi is willing to augment trade volume with Tehran. Head of Isfahan Chamber of Commerce Seyed Abdol-Vahhab Sahlabadi said that Isfahan accounts for 70 per cent of country's steel production and the existence of 2000 textile units in the province provides a good ground for cooperation with India. Sahlabadi said that India's textile and steel machinery prices are higher than those of the Chinese and Europeans and suggested that Indian manufacturers should price their products suitably to attract Iranian buyers.
SOURCE: Fibre2fashion
The Maharashtra government has taken steps to approve industrial projects faster. It has simplified the process for environmental clearances, reduced the number for getting an electricity connection to 21 from 67 and cut the number of approvals for commercial construction to 11 from 27. The government had, in the information technology policy released last week, proposed a pro-industry premium?? policy to get extra floor space index and provided exemption on stamp duty, electricity duty, octroi, entry tax and local body tax. State industries minister Subhash Desai told Business Standard: “Maharashtra is well-placed to face competition from other states to attract investments and thereby retain its pre-eminence as the favoured destination in the era of competitive federalism. The government’s emphasis is to improve the state’s position in ease of doing business and consolidate its industry and investment-friendly status.” He said the administration had proposed reduction of approvals to 37 from 76 but the government had decided to bring it down to 25 for investors. A revised list would be released by the end of June.
Desai said the government had taken a decision to attract more investments in defence, manufacturing, engineering, electronics, agriculture, food processing and textiles. It has received several proposals, especially in the defence sector, after the Centre’s decision to increase foreign direct investment limit to 49 per cent from 26 per cent. The government was also promoting investments in the textiles sector, especially in the Amravati textile park in Vidarbha. The manufacturing and engineering sectors would get a boost in the upcoming industrial areas of Shendre-Bidkin and Dighi, being developed under the Delhi-Mumbai Industrial Corridor. Desai said the government had invited Foxconn, a component supplier to Apple, to set up a manufacturing facility in Maharashtra. Desai said the government recently introduced a location policy and put in place a simplified procedure for various nods. Industrial units would have to fill just one form, instead of three, for sales tax, shops and establishment cess and professional tax. On giving a much needed push to the micro, small and medium enterprises (MSMEs), Desai said the government would provide more land in the Maharashtra Industrial Development Corporation-run estates and give constructed units with modern infrastructure to the units. The government would soon set up a Maharashtra MSME Development Institute to help start-ups. “The institute will help resolve issues with regard to raising funds, preparation of technical feasibility and project reports, bring in partners especially foreign partners, skill development and incubation,” Desai added.
SOURCE: The Business Standard
India and three-member Eurasian Economic Union have set up a joint study group to explore the feasibility of a free-trade agreement for promoting bilateral trade and investments. The study group will submit its report within a year regarding the feasibility of an FTA between India and the Eurasian Economic Union - Russia, Kazakhstan and Belarus, Commerce and Industry Ministry said in a statement today. A joint statement for establishment of a joint study group between India and the Eurasian Economic Union (EEU) was signed during the recent visit of Commerce and Industry Minister Nirmala Sitharaman to Russia. India is already negotiating the International North-South Transport Corridor Project (INSTC) with Russia to promote bilateral trade. The project proposes greater movement across Nhava Sheva (Mumbai) through Bandar Abbas (Iran) to Astrakhan (Russia) and Baku ( Azerbaijan). It also said the issue of renewal of Bilateral Investment Promotion and Protection Agreement (BIPPA) between India and Russia also came up for discussion during Sitharaman's bilateral interactions with her counterpart in Russia. During her visit, both sides also agreed that the present level of investment and trade between the two countries is "very low" .
In 2014-15, two-way commerce stood at USD 6.34 billion. India has received USD one billion during April 2000 and March 2015 from Russia. "It was agreed to take all necessary steps to ensure that the target of bilateral investment of USD 15 billion each way by the year 2025 signed during the last Annual Summit is achieved," it added. Sitharaman during her meeting with Russian Minister of Industry and Trade Denis Manturov also sought Russian investments into India. Further, it said India has accepted the Russian invitation to participate as the partner country in an industrial fair - INNOPROM 2016- to be held at Yekaterinburg, Russia in July next year.
SOURCE: The Economic Times
Foreign direct investment (FDI) in India increased to USD 3.60 billion in April, says Department of Industrial Policy and Promotion's data. In April 2014, it stood at USD 1.70 billion, while in March, the foreign direct investment dipped by 40 per cent, according to DIPP data. Amongst the top 10 sectors, computer software and hardware received the maximum FDI of USD 709 million in April, followed by automobile (USD 655 million), trading (USD 441 million), services (USD 217 million) and power (USD 109 million). During the month, India received the maximum FDI from Singapore (USD 1.13 billion) followed by Mauritius (USD 907 million), the US (USD 392 million) and the Netherlands (USD 374 million). During financial year 2014-15, foreign fund inflows grew at 27 per cent, year-on-year, to USD 30.93 billion as against USD 24.29 billion in 2013-14. India is estimated to require around USD 1 trillion investment over five years to overhaul its infrastructure sector, including ports, airports and highways, to boost growth. The government has relaxed FDI norms in various sectors, including insurance, railways and medical devices, to boost FDI in the country.
SOURCE: The Business Standard
World trade is in the throes of a transition as two mega deals are being negotiated with a remarkable sense of urgency — the US-led Trans-Pacific Partnership comprising 10 core Asia-Pacific countries accounting for a GDP of about $20 trillion and the China-led Regional Comprehensive Economic Partnership comprising ‘Asean plus six’ countries, including India, accounting for a similar magnitude of world output. That the two formations are competing with each other to set the rules of world trade — if not create geo-political equations — is obvious, with the WTO regrettably fading into irrelevance. But this rivalry, as well as the fact that countries such as Japan, Singapore and New Zealand belong to both groups, could also lead to a certain convergence of agendas. Therefore, it is not surprising that Japan and Korea (an RCEP member and potentially a TPP one) are pushing for the inclusion of ‘WTO plus’ items such as services trade and intellectual property in RCEP talks, which have so far broadly adopted the Doha round approach. India’s discomfiture over Japan seeking to bring e-commerce to the RCEP table should be viewed in this context. The issue here is not whether e-commerce per se should be opened up or discussed, but whether a concession here can potentially alter the very nature of talks, putting India on a slippery slope. That could put at risk hard-fought gains at the WTO in other areas, such as intellectual property (IP) and agriculture subsidies.
While the RCEP seems open to considering the development needs of member countries, the TPP is more focused on market access — standardising rules on investment, IP, trade facilitation, government procurement, labour and environment. It is important that India plays a bigger role in setting the RCEP agenda — without, however, closing the door on the TPP camp. It is over agriculture, IP and ‘Mode 4’ (free movement of professionals) that India is likely to run into a roadblock with TPP actors. The US is keen to stitch a deal this year to prove a point to China. India should press for a ‘development’ agenda — going beyond a mega-FTA to creating an Asian community that allows for the respective countries to liberalise at different speeds — while also being flexible on matters such as trade facilitation and the opening up of services. If e-commerce is arguably not ready for competition, surely the legal services and entertainment sectors are, as the Prime Minister has pointed out.
While Chinese goods and ill-conceived FTAs have harmed sections of Indian industry, there is no getting away from our infirmities. Our exports are unable to compete on price and quality. We must create an ecosystem that encourages innovation, investment, quality and technology transfer. ‘Make in India’ entails improving infrastructure, easing procedures and ensuring contract enforcement, areas where we are notorious laggards. We must improve our physical and virtual connectivity with Asean countries as part of the so-called ‘Act East’ policy. A technologically confident India can negotiate without fear with any trade bloc that knocks on its door.
SOURCE: The Hindu Business Line
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$ 60.86 per barrel (bbl) on 22.06.2015. This was lower than the price of US$ 61.58 per bbl on previous publishing day of 19.06.2015.
In rupee terms, the price of Indian Basket decreased to Rs 3865.22 per bbl on 22.06.2015 as compared to Rs 3930.04 per bbl on 19.06.2015. Rupee closed stronger at Rs 63.51 per US$ on 22.06.2015 as against Rs 63.82 per US$ on 19.06.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on June 22, 2015(Previous trading day i.e. 19.06.2015) |
Pricing Fortnight for 16.06.2015 (May 28 to June 11, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
60.86 (61.58) |
62.08 |
|
(Rs/bbl |
3865.22 (3930.04) |
3966.91 |
|
|
Exchange Rate |
(Rs/$) |
63.51 (63.82) |
63.90 |
SOURCE: PIB
The domestic production of crude oil rose marginally in May 2015, while production of natural gas continued to fall on a year-on-year basis, according to data released by the Ministry for Petroleum and Natural Gas. Crude oil production rose 0.8 per cent to 3.184 million tonne during the month as compared to 3.160 million tonne in the same month last year. Production from Cairn India’s Rajasthan fields rose marginally by 0.2 per cent during month, putting an end to months of falling production. ONGC’s offshore fields also saw a year-on-year increase of 6.2 per cent in production even though its onshore production fell 9 per cent.
Gas woes
Natural gas production declined during the month. For May, domestic natural gas production fell 3.1 per cent to 2.852 billion cubic metre as compared to 2.942 billion cubic metre in the same month last year. Meanwhile, refinery throughput in the country increased 7.9 per cent year-on-year in May. Total crude throughput at refineries in the month was at 19.706 million tonne as against 18.271 million tonne in the same month last year.
SOURCE: The Hindu Business Line
All Pakistan Textile Mills Association (APTMA) has expressed worries over declining trend in textiles exports, saying that the industry is on its way to becoming ‘history’ since the government has turned its back, Pakistani newspapers have reported. “The Association has been blowing the whistle constantly over decline in textile industry exports but the government has done little to arrest the trend,” APTMA chairman SM Tanveer said. He said latest export data has revealed that textile exports have registered a decline of six per cent in value terms in May 2015 against the corresponding period a year ago. In quantity terms, he added, exports of cotton cloth, towel and art, silk and synthetic textile have also lost their positions against the corresponding period. He said while Pakistan’s textile and clothing exports were stagnant since 2006, regional competitors have doubled their exports.
Tanveer said high cost of doing business and absence of conducive environment has impaired 30 per cent production capacity resulting into loss of textile exports worth $3325 million. “Issues like gas and electricity supply cuts, energy affordability, incidentals of taxation and over-valued Pakistani rupee have has hampered growth and textile industry has been left behind technologically in the region,” he said. He urged the government to ensure zero rating of export oriented textile industry for all incidentals including taxes, duties, surcharges, levies and cess by extending drawbacks receipts realized by the State Bank of Pakistan at 5 per cent on yarn, 10 per cent on fabrics and 15 per cent on made ups/garments.
SOURCE: Fibre2fashion
The Vietnam-Eurasian Economic Union Free Trade Agreement signed last month is expected to offer ample opportunities and tough challenges to Vietnamese businesses, according to the Vietnamese News Agency. The agreement will give Vietnam great opportunities to sell strong products to the Eurasian Economic Union (EEU) comprising Russia, Belarus, Kazakhstan, Armenia, and Kyrgyzstan. Aquatic products, garments, and leather will be the key beneficiaries of the deal as they enjoy zero per cent tariff. Dang Phuong Dung, vice president and secretary general of the Vietnam Textile Association (VITAS), said that Vietnam had an average export value of about $17 million in garment products to each member countries of the EEU prior to the signing the free trade pact with the Union. That figure accounted for 2 per cent of the total national export value of textile and garment, partly due to high tax rates for imported garments to the countries. She is upbeat about Vietnamese textile and garments' market share in the union after the pact, predicting that the two-way garment trade will grow by 50 per cent in the first year of the agreement's implementation and 20 per cent over the next five years, the VNA report said.
Vietnam would become the union's fourth biggest provider of apparel from the current eighth place, Dung said. She said that following the signing of free trade deals between Vietnam and South Korea, the EEU and the EU, a wave of foreign capital had entered the garment and textile sector from the start of this year, broadening opportunities for Vietnamese products. Dung remarked that the agreements would create favourable conditions for Vietnamese enterprises and products to approach foreign markets and enhance trade promotion activities, and enterprises could gain good results right now. They would need time to approach markets and reach agreements with their foreign partners
SOURCE: Fibre2fashion
Increasing per capita textile consumption coupled with growing textile production in developing countries are expected to drive global textile chemicals market through 2020, global market research and consulting company TechSci Research has said in a report. According to the report titled, "Global Textile Chemicals Market Forecast & Opportunities, 2020", global textile chemicals market is projected to grow at a CAGR of over 3 per cent during 2015-20. Growth in the market is anticipated on account of increasing per capita textile consumption coupled with rising demand for high quality textile products. Moreover, increasing industrialization, surging consumption of textile in engineered products, and rapidly rising awareness about the benefits of using technical textile in workplace, are anticipated to propel the global textile industry, thereby driving global textile chemicals market over the next five years.
Textile chemicals are used during the processing of textiles, and are broadly classified as auxiliaries and colorants. Auxiliaries are chemicals used during each and every step of textile manufacturing process to provide specific characteristics to the fabric, while colorants are used to impart color to the textile product. During manufacturing, a fibre undergoes various chemical intensive processes, in which more than 100 textile chemicals are used. Consequently, textile chemicals market is strongly dependent on textile manufacturing and processing activities taking place globally. "Initially, textile manufacturing was largely concentrated in the Americas and Europe, however, over the last decade textile manufacturing base has shifted to Asia-Pacific. Currently, around 60 per cent of global textile manufacturing capacity is concentrated in Asia-Pacific, on account of which the region dominated global textile chemicals market in 2014. The report anticipates Asia-Pacific to maintain its dominance over the next five years, on account of growth in countries like India and Vietnam, wherein textile manufacturing is increasing due to easy availability of raw materials and cheap labor.", said Karan Chechi, Research Director, with TechSci Research.
SOURCE: Fibre2fashion
Indonesia’s yarn producers have urged the government to impose a temporary safeguard duty on imported yarn products, which they say have severely damaged the market for locally made products. Local yarn products, especially some major types of polyester, were mostly unable to compete with the cheaper imported yarns due to their higher production costs, the Indonesian Synthetic Fiber Association (APSyFI) secretary-general Redma G. Wirawasta said in Jakarta on Monday. He claimed that many overseas yarn producers dumped their products on the Indonesian market and sold them at lower prices amid weak global demand. “We have seen a rising demand for textile and garment products in recent years as our middle-class population has grown. But most of the garments use large amounts of imported yarns. We hope that the government helps the yarn producers until there is a stable supply and demand in the global market,” Redma told reporters after a meeting with Industry Minister Saleh Husin on Monday. Redma said with the temporary safeguard duty, local downstream textile companies would use locally made yarn products. The business group predicted that the local textile industry’s total consumption of polyester would surge to around 650,000 tons this year, up from 620,000 tons last year, according to Redma. The amount of imported polyester reached 135,000 tons last year, a significant increase from 72,000 tons in 2010. Polyester contributed the largest portion, 1.76 million tons or 39 percent, to local textile fiber consumption last year according to the group’s data.
Local yarn makers had asked for anti-dumping duties in 2014, but Redma said even though the measure was imposed it was insufficient to reduce imported products. Redma said the business group had formally filed its request for temporary safeguard duties to Coordinating Economic Minister Sofyan Djalil, who had asked the Trade Ministry’s Indonesian Trade Safeguard Committee (KPPI) to provide assistance regarding the plan. “We have talked to downstream companies and they understand our plan. However, we expect the government to bridge both of us, because it is they who will protect the local textile industry at the upstream to the downstream end,” Redma added. Global pressures and weak domestic demand have prompted Indonesia’s economic growth to fall to 4.7 percent in the first quarter this year, which is the lowest since 2009. Rising operating costs and huge losses have forced many local labor-intensive industries, including textile companies, to lay off thousands of their workers.
As of last year, the local textile industry booked total exports of US$12.7 billion, up slightly from $12.5 billion in 2013. Meanwhile, the industry’s imports amounted to $8.39 billion, a decrease from $8.47 billion a year earlier. Meanwhile, the Industry Ministry’s director general of manufacture-based industry Harjanto acknowledged that the previous anti-dumping import duty was not effective, so the ministry would control supply and demand in the local yarn market. “We will support the industry regarding the safeguard policy, but we also see that there are is lot of illegal trading, which should also be curbed together with other stakeholders,” Harjanto said
SOURCE: The Jakarta Post
