NATIONAL

• Govt considering interest subsidy for textiles sector
• India’s new textile policy aims at generating 35M jobs through foreign investments
• Archroma acquires global textile chemical business of BASF
• India to become world's 3rd largest economy in 2050: EIU Report
• Greece crisis fails to make a dent on rupee
• Daily Crude oil price of Indian Basket was US$ 60.43/bbl on 30.06.2015

INTERNATIONAL

• Vietnam Becomes World’s Fourth Largest Textile Exporter
• Greece crisis hits Turkish textile, apparel and footwear sectors
• Panama-Mexico FTA will boost regional integration, officials say
• French firms investing Euro 1-2 billion in India every year, says Francois Richier
• Australia wants legal services included in trade pact with India

Textile Raw Material Price 2015-07-01

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.16320 USD dtd.07/01/2015)

The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

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Govt considering interest subsidy for textiles sector

The commerce ministry is considering interest subsidy benefits for textile sector including garments to arrest falling exports, according to media reports. The interest subvention scheme of 3 per cent ended on March 31, last year. Under the interest subvention scheme exporters get loans at affordable rates. The Federation of Indian Export Organisations (FIEO) has been demanding the extension of the interest subvention scheme with retrospective effect from April 2014. "Cost of credit is important for textiles sector as the exporters are facing stiff competition from countries such as Bangladesh and Vietnam. Government should give the interest subsidy benefits to them," FIEO director general Ajay Sahai said. As textiles sector accounts for about six per cent of the country's total exports, there is a need to support this sector by providing credit to exporters at affordable rates, an official said. Commerce secretary Rajeev Kher has recently said that the ministry has completed discussions with the revenue department and soon they would take the decision on the issue. The proposal would also go to the Union cabinet for its approval. In 2014-15, textiles exports grew by 12.28 per cent year-on-year to about $17 billion. Loans at subsidised rates would help exporters to boost shipments as the country's overall exports were in the negative zone during the last six months. India's exports shrank by about 20.19 per cent in May to $22.34 billion, falling for the sixth straight month.

SOURCE: Fibre2fashion

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India’s new textile policy aims at generating 35M jobs through foreign investments

The government will unveil a new national textiles policy next month that seeks to create 35 million new jobs by attracting foreign investments, a senior ministry official said. “The new national textiles policy aims at creating 35 million new jobs by attracting foreign investments. The policy will be announced in July after the Cabinet approval,” Textiles Secretary S K Panda told reporters after inaugurating the 61st National Garment Fair in Mumbai. An expert panel had submitted the draft of the new policy, which aims at addressing concerns over lack of enough skilled workforce and labour reforms besides attracting investments and providing a roadmap for the textile and clothing industry. The panel was constituted last year.

According to PTI, the ministry has also sought Rs 12,000 crore for the Technology Upgradation Fund (TUF) scheme for the ongoing 12th Plan (2012-17), he said. The government is also considering setting up modern apparel garment manufacturing centres in each of the seven north-east states. “We have decided to establish one modern apparel garment manufacturing centre in every northeastern state. The Centre will spend Rs 20 crore for this new programme,” the Secretary added. Meanwhile, Clothing Manufacturers Association of India (CMAI) said it is hopeful of achieving exports target of USD 18 billion this fiscal, up from USD 16.8 billion in previous year. “We are hopeful of achieving an exports target of USD 18 billion in FY16 due to improving US economy. In view of the infrastructure issues and rising labour cost in Bangladesh and China, export growth looks brighter for us. Our garment exports increased 12.2 per cent to USD 16.8 billion in FY15,” CMAI president Rahul Mehta said. Better economic growth and good monsoons are also expected to boost domestic garments industry, which is estimated at Rs 2 lakh crore. After sluggish trend till April, the industry started showing signs of pick up from this May, Mehta said.

SOURCE: Yourstory

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Archroma acquires global textile chemical business of BASF

Archroma, a producer of speciality textile chemicals has acquired the global textile chemicals business of Germany based BASF. “The acquisition further solidifies Archroma’s position as a clear industry leader in supplying chemicals and dyes to the global textile industry,” Archroma said in a press release. This is the second strategic transaction by Archroma following its takeover of the textile business of Clariant in 2013 and also acquiring a stake in the textile dyes and chemicals manufacturer M. Dohmen. The BASF business delivers products and technologies across the entire textile chemicals spectrum, with particular strengths in printing, finishing and coating chemicals. The acquisition, according to Archroma, strategically complements its product portfolio and geographical presence that will now include BASF’s strong market positions in Asia and several other high-growth markets. “The combined textile chemicals businesses will continue their history of maintaining a strong commitment to innovation and sustainability,” it added. “The textile industry is undergoing transformational change resulting from macro supply and demand shifts as well as a growing customer demand for sustainably-oriented solutions” said Alexander Wessels, CEO of Archroma. He added, “The operational and intellectual synergies between BASF and Archroma will allow us to offer the full breadth and depth of innovation, quality, reliability, expertise and market coverage they need to prosper.” About 225 employees globally are in the scope of the transaction, of which approximately 175 are located in Asia. The combined textiles businesses will remain headquartered in Singapore, close to customers in Asia’s fast-growing textile markets. The closing of the transaction of BASF Pakistan (Private) Ltd in Pakistan is expected to take place in August 2015. Archroma is a portfolio company of US-based private investment firm SK Capital Partners.

SOURCE: Fibre2fashion

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India to become world's 3rd largest economy in 2050: EIU Report

China is expected to overtake the US in 2026 in nominal GDP in dollar terms and maintain its position as the largest economy to 2050. India is expected to move up the rankings to third place, with real growth averaging close to 5 per cent up to 2050, according to a report by the Economist Intelligence Unit (EIU). Indonesia and Mexico are expected to leap into the top ten world economies from 16th and 15th place in 2014 to fourth and ninth place respectively by 2050. The US, Germany, the UK and France will all move down the rankings, but only Italy will lose its place within the top ten. By 2030 the top three economies of the world will be the US, China and India. Such will be the growth of China and India, in particular, that by 2050 they will each be richer than the next five (Indonesia, Germany, Japan, Brazil, and the UK) put together. This will represent a scale of wealth relative to the rest of the top ten that is unique in recorded history. Given China’s and India’s economic might, they will take on a much bigger role in addressing global issues such as climate change, international security and global economic governance. In the medium term, this will require the world’s existing powers—notably the US—to let India, and especially China, play a greater role on the world stage and adapt international institutions to allow them to exert greater influence, the report said.

SOURCE: The Global Textiles

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Greece crisis fails to make a dent on rupee

Although Greece is debt crisis adversely impacted global currencies last month, India’s rupee has emerged as one of the best performers due to improved domestic fundamentals. In June, the rupee emerged as the fifth best performer against the dollar compared with a basket of other global currencies. The rupee appreciated by 0.27 per cent in June against the dollar and the appreciation continued even on Wednesday when it closed at 63.61, compared with Tuesday’s close of 63.65 per dollar. “The contributing factors towards it is a lower current account deficit (CAD), inflation under check, we have high foreign exchange reserves, there is constant intervention by the Reserve Bank of India (RBI) which shows they are willing to commit to the stability of the rupee, and there is no major panic in the market, through the Greece issue is a lingering concern,” said Anindya Banerjee, currency analyst, Kotak Securities.

Data released in March showed India's CAD rose to $8.2 billion (1.6 per cent of gross domestic product) for the financial year's third quarter, ended December 2014, from $4.2 billion (0.9 per cent of GDP) for October-December 2013. The CAD narrowed in the third quarter when compared to that in the second quarter (July-September 2014), at $10.1 billion (two per cent of GDP). Over the financial year's first nine months, ended December 2014, the CAD narrowed to $26.2 billion from $31.1 billion in April-December 2013. Though currency dealers continue to see the possibility of the rupee touching the 64-mark again, the Greece issue has so far not had a major impact on India. “Today, the rupee appreciated due to dollar sale by custodian banks. Some dollar buying was there by state-run banks, possibly on behalf of RBI. For the rest of the week, the rupee may trade in the range of 63.50 to 64 per dollar,” said Sandeep Gonsalves, forex consultant and dealer, Mecklai & Mecklai.

RBI has been intervening in the forex market in a bid to build reserves. The country’s foreign exchange reserves rose to yet another all-time high of $355.46 billion for the week ending June 19 recording a week-on-week rise of $ 1.17 billion, shows data released last Friday. Last week RBI Governor Raghuram Rajan said in Stockholm the Indian economy would see through any impact of the Greece crisis. According to Rajan, one factor helping India was its stronger forex reserves. Meanwhile, retail inflation edged up to 5.01 per cent in May compared with 4.87 per cent in April. RBI has set an inflation target of less than six per cent by January 2016 and four per cent (+/-2) by the end of the two years starting 2016-17.

SOURCE: The Business Standard

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Daily Crude oil price of Indian Basket was US$ 60.43/bbl on 30.06.2015

The daily international crude oil price of Indian Basket as published on 30/06/2015, the price was US$ 60.43 per barrel (bbl) on 30.06.2015 as against US$ 59.95 per bbl on 29.06.2015. In rupee terms, the price of Indian Basket increased to Rs 3852.41 per bbl on 30.06.2015 as compared to Rs 3832.00 per bbl on 29.06.2015. Rupee closed stronger at Rs 63.75 per US$ on 30.06.2015 as against Rs 63.92 per US$ on 29.06.2015. 

The table below gives details in this regard:                                                                                                  

SOURCE: PIB

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Vietnam Becomes World’s Fourth Largest Textile Exporter

According to the Vietnam National Textile and Garment Group (Vinatex), Vietnam has become the world’s fourth largest textile exporter. In the first half of this year, the country earned an estimated US$12.18 billion from these products – a year on year (YOY) increase of 10.26 percent. The industry is well on its way to meeting its 2015 export target of US$27-27.5 billion.

The three largest importers of Vietnamese products were:

United States – with a YOY growth rate of 11.01 percent

South Korea – with a YOY growth rate of 8.33 percent

European Union – with a YOY growth rate of 8.2 percent

Free trade agreements have been a key part of this impressive trade growth. In December of last year, Vietnam signed a bilateral trade deal with South Korea. The deal cuts tariffs on a range of products traded between the two countries and is predicted to almost triple bilateral trade to US$70 billion by 2020. Also in the same month, Vietnam signed an FTA with the Eurasian Customs Union. This FTA covers such areas as trade, customs facilitation, intellectual property, investment, rules of origin, and the lifting of legal and technical barriers to trade. Additionally, Vietnam is also currently in negotiations for two more trade agreements, one with the US, and one with the EU. Once finished, the EU-Vietnam FTA is expected to cover such areas as investment, environment, competition, and sustainable development, as well as reducing tariffs. Vietnam is also part of the US-led negotiations on the Trans-Pacific Partnership (TPP), a massive trade deal that will result in significantly reduced tariffs for all of the signatory countries. Upon completion, the TPP trade area would comprise a region with US$28 trillion in economic output, making up around 39 percent of the world’s total output.

Despite the country’s success in the textile industry, Vietnam is keen to expand other business areas and reduce its reliance on one main industry. The country is also eager to move away from simply assembling products to more value-added types of activities in order to keep income levels rising in the country. If the country fails to expand its economic focus, it risks falling into the dreaded “middle income trap”, an economic situation where a country is able to achieve a certain level of income but finds it impossible to move beyond that amount.  Economic growth in the country stagnates as a result. According to official government development plans, certain industries will be prioritized in the future, these include the processing and manufacturing industries, the electronics and telecommunications industries, as well as the new energy and renewable energy industries. In addition, Vietnam is also seeking to improve its general business environment in order to make the country more attractive to foreign investors. Chief among these changes, the government is removing over 3,000 legal requirements for businesses through amendments to the country’s Law on Business and Law on Investment. Other changes include the modernization of payment systems; for example, it is now possible to use e-payment for such things as import and export duties.

SOURCE: The Vietnam Briefing

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Greece crisis hits Turkish textile, apparel and footwear sectors

After the exports of the Turkish textile and apparel sector to Greece went up 9.1 percent to USD 116 million in 2014, the first five months of 2015 concluded with a 19 percent decline, according to İstanbul Textile and Apparel Exporters Association (İHKİB) President Hikmet Tanrıverdi. “Manufacturers in Turkey are not favoring long term installment offers due to the high risk. There is no trust in Greek banks left,” adds Footwear Industrialists Association of Turkey (TASD) President Hüseyin Çetin. The TASD president states that from 2014 Turkey was able to increase its exports by 50 percent to USD 10 million. While sales in the first six months of 2015 were at USD 5.1 million, seemingly heading towards the same trend as 2014, the future outlook is a major concern. The prospect of Greece leaving the Euro however would carry severe implications according to Şeref Faya Turkey Clothing Manufacturers' Association (TGSD). “The Euro would lose value ın the face of the dollar which would hinder our sales.”

SOURCE: The BGN News

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Panama-Mexico FTA will boost regional integration, officials say

The Panama-Mexico free trade agreement, which takes effect on Wednesday, will boost bilateral trade and investment, and promote regional integration, officials said. Panamanian government officials and Mexican Economy Secretariat representatives discussed the agreement at a conference held on Tuesday by the Panamanian Trade, Agriculture, Industry and Agriculture Association, or CCIAP. Participants discussed the FTA and said it provided a "window of opportunity" for merchants, industrialists and exporters in Panama and Mexico. Intellectual property, rules of origin, dispute resolution, access to markets, health regulations, e-commerce, financial services, travel rules, investment and crossborder trade were among the topics discussed. The FTA, which was signed by Panama and Mexico on April 3, 2014, has 21 chapters and covers about 4,000 tariffs. The Mexican Congress approved the trade deal on March 12, while the Panamanian National Assembly gave its approval on Oct. 8, 2014. Bilateral trade totaled $1 billion in 2014, with Mexico posting a surplus of $968.8 million, the Mexican Economy Secretariat said. Mexico imported Panamanian products worth $20.3 million last year.

SOURCE: The Fox News

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French firms investing Euro 1-2 billion in India every year, says Francois Richier

French Ambassador Francois Richier today said his country's current focus is to strengthen investments in India and that French companies have been investing Euro 1 to 2 billion in the country every year. Richier, who is on a two-day visit to Telangana along with a trade delegation, said the bilateral trade between the countries currently stood at $ 8 billion and did not grow due to variety of reasons. "The French investors have together invested Euro 20 billion in India. They employ roughly 3.5 lakh skilled people in major cities, covering all sectors. It grows by Euro 1 to 2 billion every year. It is not only new companies that are investing but also the existing companies," the French diplomat told reporters. He said there is not much investment by French companies in Defence sector. However, with the raised FDI ceiling in the sector, some of the companies from France are expected to show interest in investing in that sector, Richier said.

According to Richier, the bilateral trade with India is "not that important" for France as of now as the European country is currently focusing on strengthening investments in India and that the economic exchange in terms of skill development is more important. "What is more important is (to) invest in India and sell in India rather than export from France," the ambassador said, adding there is trade deficit with India at present. The delegation called on Telangana Industries Minister J Krishna Rao and senior government officials earlier in the morning.

SOURCE: The Economic Times

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Australia wants legal services included in trade pact with India

Australia is keen to include legal services in the free trade agreement (FTA) being negotiated with India despite the fact that the sector, at present, is closed to foreign players and New Delhi’s plans of partially opening it up are still tentative. There are two attorney generals in a team of about 24 Australian officials that is in India for the eighth round of negotiations on the FTA, formally known as the Comprehensive Economic Cooperation Agreement (CECA), a government official told BusinessLine . Negotiations began on Wednesday and will go on till Friday. “The Australians want the legal sector to be included in the pact, although there is no clarity yet on the commitments they want. We are hesitant as legal services are not open to foreigners at the moment and we cannot take on any commitments based on what might happen in the future,” the official said. Both sides are looking at signing the CECA, which would result in lower tariffs on trade in goods and more opening up of the services sector by the end of this year. While India does not want to allow foreign lawyers in litigation, the government is looking at the possibility of opening up non-litigious services and international arbitration. “A committee of secretaries, headed by the Cabinet Secretary, is giving finishing touches to a note on phased opening up of the sector and a Cabinet note is likely to be drafted by the legal services department based on that,” another official said. There is a possibility that the Australians might want an in-built mechanism that would ensure that once the sector is opened up, the provisions become part of CECA commitments. “India is likely to oppose such a mechanism. All that we may be ready for is an agreement to hold negotiations on the sector once it is opened up,” the official added. The CECA holds potential as annual bilateral trade between India and Australia is around $15 billion, while China-Australia trade is at $160 billion. New Delhi wants greater access for professionals, textiles, pharmaceuticals, engineering goods, leather and automobile parts, while Australia wants collaboration in the dairy sector and commitments in services sectors such as insurance, e-commerce and legal.

SOURCE: The Hindu Business Line

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