Textile Raw Material Price 2015-06-17
|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1224.1 |
USD/Ton |
0.00% |
|
VSF |
2040.1 |
USD/Ton |
0.00% |
|
ASF |
2493 |
USD/Ton |
0.00% |
|
Polyester POY |
1186.5 |
USD/Ton |
0.00% |
|
Nylon FDY |
3076.5 |
USD/Ton |
-0.26% |
|
40D Spandex |
6283.6 |
USD/Ton |
0.00% |
|
Nylon DTY |
2888.8 |
USD/Ton |
-0.56% |
|
Viscose Long Filament |
2688.1 |
USD/Ton |
0.00% |
|
Polyester DTY |
1411.8 |
USD/Ton |
0.00% |
|
Nylon POY |
3329.5 |
USD/Ton |
-0.49% |
|
Acrylic Top 3D |
5989.8 |
USD/Ton |
0.00% |
|
Polyester FDY |
1477.1 |
USD/Ton |
0.00% |
|
30S Spun Rayon Yarn |
2725.6 |
USD/Ton |
0.00% |
|
32S Polyester Yarn |
1974.8 |
USD/Ton |
0.00% |
|
45S T/C Yarn |
2986.7 |
USD/Ton |
0.00% |
|
45S Polyester Yarn |
2888.8 |
USD/Ton |
0.00% |
|
T/C Yarn 65/35 32S |
2741.9 |
USD/Ton |
0.00% |
|
40S Rayon Yarn |
2154.4 |
USD/Ton |
-0.75% |
|
T/R Yarn 65/35 32S |
2497.1 |
USD/Ton |
0.00% |
|
10S Denim Fabric |
1.14 |
USD/Meter |
0.00% |
|
32S Twill Fabric |
0.96 |
USD/Meter |
0.00% |
|
40S Combed Poplin |
1.35 |
USD/Meter |
0.00% |
|
30S Rayon Fabric |
0.78 |
USD/Meter |
0.00% |
|
45S T/C Fabric |
0.78 |
USD/Meter |
0.00% |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.16321 USD dtd. 24/06/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Uttarakhand Chief Minister Harish Rawat, during his meeting with Union Minister of State for Ministry of Textiles Santosh Gangwar in New Delhi on Tuesday, raised several issues such as need for a textile policy, aid to woollen weavers, boost to the handloom sector and promotion of silk and tussar silk in the hill region. The Chief Minister said they had submitted a proposal for mulberry plantations in 2014-15, but the Centre released only Rs 46.30 lakh against it. Similarly, as desired by the Central Silk Board Government of India, Bangalore, the state government had submitted a proposal for Rs 5 crore but the Centre had released Rs 3.11 crore so far and Rs 1.89 crore was pending. The Chief Minister requested that the group approach scheme for handloom weavers should not be closed. He said their population was scattered in the state and called for their uplift through these welfare schemes. He said this is a source of livelihood for the population of Uttarakhand and in order to ensure that the beneficiaries are not affected, this scheme should be continued. He added that a revised proposal in relation to textile policy for setting up of Textile Park in the state was sent by Uttarakhand, but a decision on it was pending. The CM spoke about the Chhipi community that includes Hindu and Muslim weavers. He said they were facing hardships in continuing their traditional profession due to lack of finances. The tribes engaged in weaving profession in the tribal areas of the state are also on verge of fading out due to lack of proper marketing of their produce. He emphasised that they need to be provided with financial assistance for establishing looms. He emphasised on importance of establishing a wool bank to meet the purpose of subsidy. Rawat also called for proper mechanisation of dying units.
SOURCE: The Tribune India
The BSE’s list of indices has expanded to include the S&P BSE India Manufacturing Index, a measure to track trends in domestic production and manufacturing activity. Constituents of the index include M&M, L&T, Tata Motors, Reliance Industries, Tata Steel, Hindalco, Cipla, ITC, BHEL, Maruti Suzuki and Hero MotoCorp. Launched on Wednesday by Asia Index Pvt Ltd, a joint venture between S&P Dow Jones Indices and the BSE, the index is designed to provide liquid investment exposure to India’s top 30 manufacturing and production companies, according to a press release from Asia Index. The constituents are selected from the S&P BSE Large MidCap Index, a sub-index of the S&P BSE AllCap Index. The stock must have a listing history of at least six months, according to BSE. The index is calculated real-time. Ashishkumar Chauhan, MD & CEO, BSE, said in the statement, “We are excited to launch the index at a time when the manufacturing sector in India has renewed interest among investors locally as well as globally. With the government’s renewed focus on increasing manufacturing in the country, the new index will aid investors with a better tool to gauge the manufacturing and production activities.”
SOURCE: The Business Line
Private port operators have approached the Centre, seeking a level playing field by ushering in a market-based pricing mechanism at all the major ports. The private operators at Major Ports and the Ministry of Shipping have been discussing the issue of migration to 2013 tariff guidelines that pave the way for a market pricing mechanism model for many months, but nothing has moved in terms of a final policy direction. A recent move by the Ministry to ‘retender’ existing facilities being run by private cargo operators, as a condition to migrate players to the 2013 tariffs guidelines, was unanimously rejected. Sources close to the development say the Ministry may eventually not consider retendering but other options for migrating these operators, though nothing has been finalised yet.
Economic viability
Private port operators operating on the 2005 tariff Guidelines for major ports have been arguing that they are economically unviable and have been engaged with the Shipping Ministry for a resolution. While three subsequent Guidelines have been formulated – 2008, 2013 and now 2015, each being a progression, none apply to operators on the 2005 Guidelines. This has further disrupted the playing field with different operators operating on different guidelines. Non-major ports, on the other hand, are free to operate on market pricing mechanism. As a result they have grown rapidly and account for 42 per cent of India EXIM trade up from 8 per cent a decade ago, a fact acknowledged by the Ministry in its preamble to the official notification of the 2015 tariff Guidelines. A private operator said on the condition of anonymity, “We have been in dialogue with the Ministry for years and have addressed all concerns raised, including treatment of surplus. Despite several assurances of migration, nothing has happened. If anything, the several subsequent Guidelines have only made it a non-level playing field, complicating matters further.”
The Maritime Agenda 2010-2020, envisages an investment of ₹2,96,000 crores for expanding the national port capacity to 3130 MT, up from 800.5 MT at major ports and 599.5 MT at non major ports at the end of FY 2014. Additionally, under the ambitious Sagarmala Project as per the Shipping Minister, atleast a dozen smart cities and several coastal economic zones are planned to lift the country’s GDP growth by 2 per cent. India’s Ports sector has huge potential but is losing out to its more aggressive and competitive neighbours like Sri Lanka, China and Dubai. “Private port operators believe the Centre has the right idea and vision to transform the Ports and inland logistics network, but what’s equally important and missing is a stable policy regime. That is critical to reassure global investors, attract FDI for the long term in port infrastructure, and most importantly, facilitate effective utilisation of this infrastructure for the benefit of the country,” said an MNC port operator.
SOURCE: The Hindu Business Line
The government today approved the signing of an agreement with Japan to increase cooperation in the field of industrial property (IP). The decision regarding this was taken by the Union Cabinet chaired by Prime Minister Narendra Modi. The Memorandum of Cooperation will be signed between the Department of Industrial Policy and Promotion (DIPP) and the Japan Patent Office (JPO). "The purpose of MoC is to establish a framework for bilateral cooperation in the field of IP, with emphasis on capacity building, human resource development and awareness generation," an official statement said. The pact also aims at increasing efforts to support innovation in both the countries. To be renewed automatically every four years, the MoC will be implemented through biennial Action Plans. The first plan is ready for implementation. Areas on which both the sides will work include information sharing on IP protection systems and practices; and cooperation in the area of examination, including utilisation of the examiner-exchange programme. They will also enhance cooperation in the scheme of the Patent Cooperation Treaty; assistance in developing IP infrastructure; capacity building in the use of IT infrastructure; and awareness building for the general public. The key feature of the pact will be building awareness among the general public about the most important property rights for the 21st century. To this end, the JPO will impart training at its own cost to individuals, people in educational institutions, lawyers, corporate employees and judges, besides examiners and other IPO officials. The exchange of best practices between the two countries is expected to improve protection and awareness about India's range of intellectual creations which are as diverse as its people, including patents, trademarks, designs and geographical indications.
SOURCE: The Business Standard
India leads regional inflow of Foreign Direct Investment (FDI) in South Asia accounting for USD 34 billion investments during 2014 and the upward trend is likely to continue this year also, according to a UN report which placed China as the world’s largest FDI recipient. “FDI inflows to the country (India) surged by 22 per cent to about USD 34 billion” improving its position to 9th top host country for FDI in 2014, over its rank of 15th in 2013, the UNCTAD’s World Investment Report 2015 says. India is likely to maintain an upward trend in 2015 as economy recovery gains ground, the report adds. FDI inflows to South Asia rose to USD 41 billion in 2014, primarily owing to good performance by India, it says. “In terms of the sectoral composition of FDI flows, manufacturing is likely to gain strength, as policy efforts to revitalize the industrial sector are sustained, including, for instance, the ‘Make in India’ initiative launched in mid-2014,” the report says. The top five recipients in South Asia of FDI inflows were India, followed by Iran, Pakistan and Bangladesh (USD 2 billion each) and Sri Lanka (USD 1 billion).
In the UN report, Asia is divided into three sub-regions: East and South East Asia, West Asia and South Asia. According to the report, China became the world’s largest recipient of FDI (USD 129 billion) toppling the US (USD 92 billion). However, “global FDI inflows fell by 16 per cent to USD 1.23 trillion in 2014, mostly because of the fragility of the global economy, policy uncertainty for investors and elevated geopolitical risks and new investments were also offset by some large divestments,” it says. The groups of countries negotiating the Transatlantic Trade and Investment Partnership and Trans-Pacific Partnership saw their combined share of global FDI inflows decline. Asia overall bucked the global trend with historically high levels of inward FDI to developing economies at USD 681 billion marking a 2 per cent rise.
Among the top 10 FDI recipients in the world, five are developing economies. India was also the biggest investor in outward FDI in South Asia with USD 9.8 billion marking an increase of 486 per cent over 2013. However, India does not figure in the first top 20 countries for FDI outflows. “There was an abnormal decrease (in outward FDI investment in India) in 2013 because of macroeconomic uncertainties when some of the Indian MNCs divested. The figures are now back on track but still lower than figures (of outward FDI investment) in 2009, 2010 and 2011,” said Guoyong Liang, UNCTAD Asia head of the Investment Division. The US had the largest outward flow of FDI (USD 337 billion) followed by Hong Kong-China (USD 142 billion) and China (USD 116 billion).
SOURCE: The Financial Express
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$ 62.48 per barrel (bbl) on 24.06.2015. This was higher than the price of US$ 61.40 per bbl on previous publishing day of 23.06.2015.
In rupee terms, the price of Indian Basket increased to Rs 3977.48 per bbl on 24.06.2015 as compared to Rs 3907.50 per bbl on 23.06.2015. Rupee closed weaker at Rs 63.66 per US$ on 24.06.2015 as against Rs 63.64 per US$ on 23.06.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on June 24, 2015(Previous trading day i.e. 23.06.2015) |
Pricing Fortnight for 16.06.2015 (May 28 to June 11, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
62.48 (61.40) |
62.08 |
|
(Rs/bbl |
3977.48 (3907.50) |
3966.91 |
|
|
Exchange Rate |
(Rs/$) |
63.66 (63.64) |
63.90 |
SOURCE: PIB
India has been ranked 70th among 145 countries in terms of its citizens thriving in three or more elements of well being – purpose, social, financial, community and physical – says a global survey released on Wednesday.
Methodology
The report, titled ‘Gallup – Healthways State of Global Well-Being: 2014’, captures how people feel about and experience their daily lives. The index measures well-being across the five elements and individual responses are categorised as – ‘thriving’ (strong and consistent well-being), ‘struggling’ (moderate or inconsistent) or ‘suffering’ (low and inconsistent). Countries are ranked on the basis of the percentage of population that is thriving in three or more of these elements.
Panama on top
The survey shows that in India, only 17.1 per cent adults thrive in three or more, which is almost one-third of top ranked Panama, where the percentage is 53. The data is based on an estimated 1,46,000 interviews with adults across 145 countries and areas, between January and December last year. Overall, one in six adults worldwide is considered ‘thriving’, or strong and consistent, in at least three of the five elements, as measured by the Gallup Index, in 2014. Residents of the Americas are most likely to be ‘thriving’ in three or more elements (31.3 per cent), while those in sub-Saharan Africa are the least likely (10. 2 per cent). Latin American countries dominate in overall well-being, comprising seven of the top 10 countries in high well-being. Globally, 17 per cent adults were ‘thriving’ in three or more elements of well-being in 2014, the same as in 2013. Europe led the world in financial well-being, with 40 per cent Europeans ‘thriving’ in that element in 2014.
Europe financially happy
Norway, Sweden, Switzerland, the Netherlands, Austria, Germany, Luxembourg, Denmark and Finland took nine of the top 10 spots for financial well-being. Singapore is the only non-European country to make it to the top 10 in financial well-being. Afghanistan is ranked the lowest in all the categories. The report said people with higher well-being have higher productivity, lower healthcare costs, are more resilient in the face of challenges and are more likely to contribute to the success of their organisations and communities.
SOURCE: The Hindu Business line
The Nigerian government has lifted the embargo on the import of textile materials into the country, according to media reports. The Comptroller-General of the Nigeria Customs Service, (NCS), Alhaji Abdullahi Dikko said in Lagos that Nigerians can now import textile materials subject to payment of specified duty. At the official launching of the implementation of Economic Community of West Africa States (ECOWAS), Common External Tariff (CET), Dikko, who was represented by Victor Gbemudu, Assistant Comptroller General, Zone ‘A’, said that the items were removed from the prohibition list in line with the laws guiding the CET regime. “Textile, furniture and others have become dutiable as both commodities have been removed from the Import Prohibition Lists and it is going to be implemented.” Gbemudu said that importers of these goods are now expected to pay 35 per cent duty as agreed by ECOWAS member countries as well as the levy as contained in the Import Adjustment Tax (IAT). CET also comes with some adjustments for member countries. There are 97 chapters with the 5,899 tariff headings but every member country is entitled to 3 per cent adjustment. “This 3 per cent adjustment translates into 177 tariff headings to enable member countries to protect their local industries.” Gbemudu said these items were banned because the government wanted to protect the local industries involved in the manufacturing of these goods. He also promised that by 2020, there would no longer be any item on the import prohibition list as everything would have been harmonized. He said that the CET is subject to review every five years.
SOURCE: Fibre2fashion
Vietnam is now the fourth largest textile exporter in the world with 12.18 billion USD earned from these products in the first six months of this year, according to the Vietnam National Textile and Garment Group (Vinatex).The figure represented a 10.26 percent increase from the same period last year.The US, the Republic of Korea (RoK) and the European Union were the biggest importers of Vietnamese products, posting growth rates of 11.01 percent, 8.33 percent, and 8.2 percent, respectively, against the same period last year. Vinatex General Director Le Tien Truong said the results are a positive sign which will enable Vietnam’s garment industry to achieve its set target of 27-27.5 billion USD in export value this year. With favourable movements in the global economy and the recent signing of free trade agreements (FTA) between Vietnam and the Eurasian Economic Union (EAEU), and the RoK, 2015 is forecast to be a bright year for Vietnam’s garment industry.
Mentioning opportunities brought about by the Vietnam-EAEU FTA, Truong said Vietnam is likely to earn over 1 billion USD from shipping textiles to the market if the country takes full advantage of benefits from the agreement. The sector will need to make additional efforts to seek new markets and opportunities, and establish partnerships with major groups to be able to sign high-value orders in the remaining month of this year, Truong said. The export value of Vinatex, which has the largest production scale in the textile and garment industry in the country, hit 1.7 billion USD in the two first quarters of this year, up 10.7 percent over the Jan-June period last year. The group plans to invest 9.4 trillion VND (441.3 million USD) by 2017 in 59 textile, dye, garment and infrastructure projects.
SOURCE: The Vietnam Net
US President Barack Obama's bid to boost US economic ties with Asia was poised for a win on Wednesday, when a six-week congressional battle will culminate in a decisive Senate vote on legislation needed to seal his hallmark Pacific Rim trade deal. After two brushes with failure, some fancy legislative footwork and myriad backroom deals to keep the legislation alive, lawmakers are expected to grant Obama the power to negotiate trade deals and send them on a fast track through Congress. Approval could push negotiations on the 12-nation Trans-Pacific Partnership (TPP) over the finish line in time to get it through Congress before year-end. TPP is a central part of Obama's foreign policy pivot to Asia to counter the rising diplomatic and economic influence of China. The deal, potentially a legacy-defining achievement for Obama, would create a free-trade zone stretching from Japan to Chile, comprising 40 per cent of the world economy and raising annual global economic output by nearly $300 billion.
The Senate voted 60-37 on Tuesday to clear a procedural path for a final vote on passage of fast-track authority, which would let lawmakers set negotiating goals for trade deals, including TPP, but restrict them to yes-or-no votes on final agreements. The fast-track legislation itself now only needs a majority of votes to pass, a hurdle it cleared easily more than a month ago on its first run through the Senate. It was forced back to the Senate floor after a revolt by House of Representatives Democrats resulted in fast-track being split from a companion measure extending a programme to help workers hurt by trade. That bill now faces a separate vote in the Senate, as early as Wednesday, and another in the House. Republicans hope to pass that programme this week and send both measures to Obama for approval, before going on a week-long break. The bruising congressional battle has pitted Obama against many in his own party, including House Democratic Leader Nancy Pelosi, and prompted blood-letting among Republicans after party leaders lashed out at conservatives who refused to back the trade agenda.
Although opinion polls show a majority of Americans support trade deals, congressional approval has been a tough slog because labour unions and liberal activists have campaigned against fast-track, warning of job losses and vowing to retaliate against Democrats who break ranks to support trade. The front runner for the party's presidential nomination in the 2016, Hillary Clinton, said Democratic critics had legitimate concerns but has so far reserved judgment on the TPP, which could become an issue in 2016 election campaigns. The TPP would be the biggest trade deal since the North American Free Trade Agreement 20 years ago between the United States, Canada and Mexico.
SOURCE: The Business Standard
The Pakistan Textile Exporters Association (PTEA) on Wednesday urged the federal government to save textile exports from consistent decline, both in terms of value and quantity. PTEA Chairman Sohail Pasha and Vice-Chairman Rizwan Riaz Saigal, in a joint statement said that achieving targets to double textile exports appeared to be a herculean task in the perspective of 5.91 per cent drop in textile exports in May over the same month of previous fiscal year. Giving details, they said that Pakistan exported textile goods worth $1.12 billion in May against exports of $1.19bn in the same month of last year which showed decline of 5.88pc. Textile exports were also down by 1.70pc in comparison with July-May period of previous year, they added. Export of value-added items witnessed negative growth, cotton cloth down by 15.70pc, knitwear 11.32pc, bedwear 9.80pc and towels 9.23pc.
SOURCE: The Dawn
The U.S., aiming to bolster American exporters, is stipulating that countries joining its new Pacific trade zone cut back on imports from China—a proposal that is meeting resistance from businesses and officials who say it will disrupt global supply chains. The Senate is expected to pass on Wednesday legislation to expand President Barack Obama’s trade-negotiating powers after a bruising battle that has put pressure on proponents to show that the 12-nation Trans-Pacific Partnership will create jobs in the U.S. To that end, American trade negotiators are demanding that Vietnam, a major garments exporter, reduce its reliance on textiles made in China, which isn’t part of the trade pact, to get preferential market access to the U.S. The goal is to create new markets in Vietnam for the U.S. textile industry, which employs a quarter of a million Americans and exported $20 billion last year. “The U.S. and Mexico are especially large textile producers,” said Eliza Levy, a spokeswoman for the National Council of Textile Organizations. “Vietnam would simply have to shift its sourcing of yarns and fabrics from China to the U.S. and Mexico.”
ENLARGE
U.S. fashion brands oppose this approach, which they say ignores the complexities of global supply chains. Vietnam is the second-largest exporter of apparel and footwear to the U.S., behind China, with $13.1 billion in sales last year. But the country only produces enough fabric to meet a fifth of its needs and buys about $4.7 billion worth from China, or about half its total annual imports. Clothing brands want duty-free entry to the U.S. for all goods made in the new free-trade zone, no matter where the fabric is produced. The trade negotiations could slash U.S. duties on many of Vietnam’s exports of garments and shoes to zero from between 7% and 32%. Julia Hughes, president of the U.S. Fashion Industry Association, a trade group representing American brands, said U.S. textile exporters won’t be able to feed Vietnam’s appetite in sufficient quantities, forcing garment producers there to continue to rely on Chinese fabrics. “Vietnam isn’t going to get much duty-free access” to the U.S. under current rules, Ms. Hughes said. The U.S. garment industry argues that free trade will help the sector, which employs three million people, including designers and retail workers. In Congress, though, the debate over whether free trade imperils manufacturing employment has made the Pacific trade pact a contentious issue. U.S. negotiators defend their position. Trevor Kincaid, a deputy assistant U.S. trade representative, said the deal “will deliver new opportunities for American-based businesses, including opportunities related to textiles and apparel in Vietnam.” The administration, he said, has “a single-minded focus on getting [the] best possible deal for American workers and exports.”
Vietnam has its own ideas. The country is working quickly to develop a homegrown textile industry, which would help get around the restrictions. “Vietnam is seeking to reduce its reliance on imports from China for its garment industry to better benefit from TPP,” said Phan Chi Dung, a senior official with Vietnam’s Ministry of Industry and Trade. However, he sees little chance of U.S. producers filling the void. Companies from Hong Kong, South Korea and Taiwan recently have poured hundreds of millions of dollars into textile factories in Vietnam, hoping to later obtain tariff-free entry to the U.S. market. TAL Apparel Ltd., a Hong Kong-based company which says it makes one in six dress shirts sold in the U.S., is building a $240 million textile plant in Vietnam, which it hopes to complete by 2017, to feed its two garment factories there. Roger Lee, chief executive of TAL Apparel, thinks it will take five years for Vietnam’s textile industry to be self-sufficient. U.S. textile suppliers, he said, are too costly and far away from Asia to be competitive. Chinese companies, too, are moving factories to Vietnam as wages rise at home and in anticipation of the Pacific trade zone. Youngor Group, a Chinese apparel maker that runs a factory in Vietnam’s northern Nam Dinh province, is looking to source more textiles from Vietnam, rather than from its own factories in China, with an eye on exporting duty-free to the U.S. “Our major competitor moved to Vietnam. Many companies are moving,” said Yu Jian, deputy general manager of Youngor’s Vietnam operations. Ou Kui, manager of Yanian Garment Co., a Chinese apparel company based in Hanoi, is looking at producing zippers, buttons and other accessories to help investors from China meet local-content requirements.
A recent congressional report noted that Vietnam’s textile industry, if it expands rapidly enough, could even compete with U.S. textile exports to Mexico, which is also part of the Pacific trade discussions. Under pressure from U.S. brands, the trade agreement would allow Vietnam to continue to source from any country textiles and yarns on a “short-supply list”—inputs that aren’t produced in sufficient quantities inside the proposed trade zone. Ms. Hughes, of the fashion industry association, said the list is too restrictive, and can’t be changed in the future, which will hamper U.S. brands’ operations.
SOURCE: The Wall Street Journal
In a bid to strengthen economic relations with India, an Australian business delegation led by a lawmaker will visit Hyderabad and Mumbai for three days to explore avenues for greater commercial engagement. "The economic relationship between Australia and India has vast potential and negotiating a strong, high quality Comprehensive Economic Cooperation Agreement by the end of 2015 to unlock this potential is our number one economic priority," said Steven Ciobo, Australian lawmaker who will lead the delegation. In Hyderabad, Ciobo will meet with the Chief Ministers of Andhra Pradesh and Telangana, as well as business leaders, to explore avenues for greater commercial engagement. He will also address a Confederation of Indian Industry regional business event. "I am visiting Hyderabad to showcase Australia's capabilities in infrastructure, health and tropical medical services to meet the economic development priorities of this dynamic, progressive and business-friendly region of South India," he said ahead of the visit from today.
In Mumbai, he will advance our economic diplomacy objectives in India and consolidate Australia's linkages with Maharashtra, which remains one of the economic powerhouses of India, with a population of over 100 million. "Australia has a strong relationship with Maharashtra state, particularly in the insurance, financial and education sectors. "Deepening our linkages and creating further opportunities for Australian investment and business there is a key priority," he said. India is Australia's 12th largest trading partner. In 2014, Indian foreign investment into Australia reached $11 billion, with $9.8 billion in Australian investment in India.
SOURCE: The Economic Times
The government is likely to reduce tax at source on export of all products by 0.20 percentage points to 0.80 per cent in the budget for the next fiscal year from the proposed 1 per cent, officials of the finance ministry said. Bowing down to pressure from the exporters, particularly from the readymade garment sector, the government has decided to reduce the export tax, they said. In the budget proposal before the parliament on June 4, finance minister AMA Muhith proposed an increase of export tax to 1 per cent for apparel and other products from the current 0.30 per cent and 0.60 per cent on export proceeds respectively. According to the proposal, the tax will be considered as final settlement for all export sectors and the exporters will not need to pay any other tax on their export earnings. Currently, export tax on some items including knitwear, woven garments, terry towel, carton and accessories of garment industry, jute goods, frozen food, vegetables, leather goods and packed foods are considered as final settlement. And the tax at source on export of other products is considered as advance tax which can be adjusted with the income tax returns.
The National Board of Revenue estimated that additional Tk 2,000 crore would come in the next year from the sector if the export tax was raised to 1 per cent. The revenue board may get around Tk 600 crore less from the sector if the tax is reduced at 0.80 per cent, officials said. Exporters, however, have been demanding for not increasing the tax and keep the current rate unchanged. RMG products exporters demanded that any increase in the tax would severely hamper the growth of the sector as they managed to make profit only of 2 per cent to 3 per cent on their total export proceeds while the cost of doing business has increased significantly over the last few years because of compliance cost, implementation of new wages and devaluation of the Euro in Eurozone. The revenue board on Tuesday sent a summery proposing reduction of tax at source on export to the finance minister for his approval, officials said. Muhith has already approved the proposal which will be placed before the parliament for its approval. The budget for the next fiscal year will be passed in parliament by the end of this month.
SOURCE: The Global Textiles
The US economy contracted in the first quarter but less than previously estimated as it struggled with bad weather, a strong dollar, spending cuts in the energy sector and disruptions at West Coast ports. However, growth has since rebounded in the second quarter as the temporary drag from unusually heavy snowfalls and the ports dispute faded. Retailers reported strong sales in May and employers stepped up hiring. Housing is also strengthening. The Commerce Department said on Wednesday gross domestic product fell at a 0.2 per cent annual rate in the January-March quarter instead of the 0.7 per cent pace of contraction it reported last month. A fairly stronger pace of consumer spending than previously estimated accounted for much of the upward revision to GDP. Consumer spending, which accounts for more than two thirds of US economic activity, was raised to a 2.1 per cent growth pace from the 1.8 per cent rate reported last month. With personal savings increasing at a robust $720.2 billion pace as more Americans get a paycheck, consumer spending could accelerate in the second quarter. Spending could also get a boost from rising household wealth as home prices accelerate. While export growth was revised higher, that was offset by an upward revision to imports, leaving a still-large deficit that subtracted almost 2 percentage points from GDP. The GDP revision was in line with economists’ expectations. US Treasury debt prices rose on data, while the dollar was little changed. US stock index futures were unchanged.
Underlying strength
The economy expanded at a 2.2 per cent rate in the fourth quarter. But the first-quarter slump in output likely is not a true reflection of the economy’s health. Economists, including those at the San Francisco Federal Reserve Bank, say a problem with the model the government uses to smooth the data for seasonal fluctuations also contributed to depressing the GDP number. The government said last month it was aware of the potential problem and was working to address it when in publishes annual GDP revisions in July. When measured from the income side, the economy expanded at a 1.9 per cent rate in the first quarter instead of the previously reported 1.4 per cent pace. A measure of domestic demand growth was revised up four-tenths of a percentage point to a 1.2 percent rate. Economists estimate unusually heavy snowfalls in February sliced off at least one percentage point from growth. Estimates for spending on equipment were little changed. Business investment spending has been hurt by dollar strength and lower energy prices. Businesses accumulated slightly more inventories than previously estimated in the first quarter, which could mean they have little incentive to keep on adding to stock in the current quarter. The value of inventory accumulated in the first quarter was revised up to an increase of $99.5 billion from the $95 billion rise reported last month. As a result, inventories contributed 0.45 percentage point to GDP instead of the previously reported 0.33 percentage point. Inventories could be a drag on second-quarter GDP. After-tax corporate profits were a bit weaker in the first quarter than previously thought as the buoyant dollar undercut the profits of multinational corporations. Profits after tax with inventory valuation and capital consumption adjustments were revised to show a 8.8 percent decline instead of the 8.7 percent drop reported last month.
SOURCE: The Business Standard
