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MARKET WATCH 17 JUNE, 2021

NATIONAL

INTERNATIONAL

 

Exports zoom 46.4% in 2 weeks; UAE, Italy top markets

Exports grew 52.39% to $7.71 billion during the first week of this month but the rate slowed to around 40% to $6.35 billion in the second week, a government source said. Nonpetroleum exports increased 43.8% in the same period. India’s outbound shipments rose 46.43% to $14.06 billion in the first fortnight of this month, led by healthy growth in the exports of engineering, gems and jewellery and petroleum products. Exports grew 52.39% to $7.71 billion during the first week of this month but the rate slowed to around 40% to $6.35 billion in the second week, a government source said. Non-petroleum exports increased 43.8% in the same period. Imports grew 98.33% to $19.59 billion during June 1-14, led by petroleum, pearls, precious stones and vegetable oil. Non-oil, non-gems and jewellery imports, an indicator of the strength of domestic demand, expanded almost 70%. The UAE, US and Italy were the markets which witnessed the steepest rise in exports at 184.7%, 40.4% and 171%, respectively. Imports rose the most from Iraq (342%), Saudi Arabia (356%) and China (47.6%). Driven by engineering, petroleum products and gems and jewellery, India’s merchandise exports rose 69.35% in May from a year earlier to $32.27 billion, resulting in an eightmonth low trade deficit of $6.3 billion. However, compared to May 2020, the trade deficit in goods widened from $3.15 billion, revised trade data released by the commerce and industry ministry on Tuesday showed. The government expects to post $400 billion of merchandise exports in the fiscal 2022. Goods exports in FY21 contracted 7.3% from the year before to $290.6 billion. The value of imports was $10.5 billion during the second week of June against $9.1 billion in the first week of the month. The Federation ofIndian Export Organisations has said the order booking position of exporters was healthy and the gradual opening up of global markets and improvement of the situation in the country were expected to push exports growth further.

Source: Economic Times

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MCA amends board meeting rules to permanently allow virtual resolutions on financial statements, restructuring

ET had first reported in January on the government’s intention to make certain pandemicinduced relaxations permanent such as allowing virtual annual general meetings (AGMs) and permitting virtual board meetings on such matters. The corporate affairs ministry has amended its board meeting rules to permanently allow resolutions on matters such as approval of financial statements and matters relating to mergers and acquisitions through videoconferencing or other audiovisual means. ET had first reported in January on the government’s intention to make certain pandemicinduced relaxations permanent such as allowing virtual annual general meetings (AGMs) and permitting virtual board meetings on such matters. In a notification on Wednesday, the ministry omitted a section of the rules that restricted company boards from conducting virtual meetings to approve board reports, restructuring, prospectuses or audit committee meetings for considerations of accounts via videoconferencing or other audiovisual means. A government official had earlier said that since working remotely was the new normal, the ministry would consider including such virtual meetings as part of normal procedure. Since March last year, the ministry has granted multiple relaxations regarding statutory compliances to companies in light of the disruptions caused by the pandemic, along with several extensions to various deadlines. In January, the ministry had permitted firms to hold AGMs via videoconferencing or other audio-visual means till December 31 this year, subject to existing deadlines.

Source: Economic Times

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Finance ministry relaxes ban on global tender enquiries of Rs 200 crore and below

The government has allowed global tenders to be floated for amounts under Rs 200 crore for supplies needed for health infrastructure or the manufacture of Covid-19-related materials. So far, only local suppliers could participate in such tenders. The government has allowed global tenders to be floated for amounts under Rs 200 crore for supplies needed for health infrastructure or the manufacture of Covid-19-related materials. So far, only local suppliers could participate in such tenders. The finance ministry said it would make this exception for projects involving health infrastructure or the manufacture of Covid-related materials. The relaxation would be valid till October 31, and would be subject to the approval of Secretary (coordination) at the cabinet secretariat, the expenditure department under the finance ministry said in a memorandum dated June 11. On Friday, the ministry extended till the end of October the exemption on Covid-related medical supplies from additional scrutiny on public procurement of goods and services from countries sharing a land border with India. “Apart from medical equipment, government agencies who are involved in strengthening the health infrastructure/making efforts to fight with Covid-19 may also require manufacturing Covid-19 items/equipment,” the memorandum on tenders said. In May last year, to spur business for micro, small and medium enterprises as part of the Atmanirbhar Bharat package, the government had banned public procurement of goods and services of up to Rs 200 crore from abroad.

Source: Economic Times

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Govt may tighten 'country of origin' norms for e-commerce players

E-commerce policy expected to be finalised by end of June The Centre may tighten the ‘country of origin’ norms for e-commerce players in a bid to push the sale of locally produced goods on their platforms. This could be done through amendments to the Consumer Protection Rules, and may find mention in the much-awaited e-commerce policy, officials in the know said. The Department for Promotion of Industry and Internal Trade (DPIIT) has been working for the past two years on formulating a comprehensive policy to not only promote a flourishing e-commerce space in the country, but also address regulatory challenges in the .....

Source: Business Standard

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Sellers not sharing local content amount will be unable to do business on GeM: Govt

 The commerce and industry ministry said that now it is mandatory for all sellers to upfront declare the Country of Origin without which they cannot upload products on GeM. The government on Wednesday said that sellers who do not declare the amount of local content while uploading product and creating catalogue on the Government eMarketplace (GeM) will lose out on business and not be able to participate in bids in which buyer has chosen to procure only Make in India (MII) compliant products………….

Source: Economic Times

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Govt to give 1 cr Bathukamma saris this yr

Despite revenues being severely hit due to the pandemic, the state government has decided to go ahead with its Bathukamma sari distribution scheme this year too. So far, TRS governments have spent around Rs 1,200 crore on the scheme since its launch in 2017. Continuing the scheme this year, the state has already placed orders for one crore saris worth around Rs 350 crore with power looms in Sircilla and other districts. However, production of saris has been affected due to the second wave of the pandemic as many workers went back to their villages and states fearing infection. Textiles department officials informed that workers have started coming back as the number of Covid-19 cases are receding. Currently, 11,000 of the 16,000 power looms are functioning while the remaining are expected to become functional by the end of the month. “We are expecting one crore saris to be ready by September 15... Transportation of saris to districts and villages would be done in time to reach the beneficiaries before the festival,” said a Telangana State Handloom Weavers Cooperative Society official.

Source:   Times Of India

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India signs $484 m loan pact with ADB for an industrial corridor project in TN

Project emphasises sustainability, climate change resilience, and road safety elements The Government of India has signed a $484 million loan agreement with the Asian Development Bank to improve transport connectivity and facilitate industrial development in the Chennai–Kanyakumari Industrial Corridor (CKIC) in Tamil Nadu. The CKIC is part of India’s East Coast Economic Corridor (ECEC), which stretches from West Bengal to Tamil Nadu and connects India to the production networks of South, South-east, and East Asia. ADB is the lead partner of the Government of India in developing ECEC, according to a statement. The agreement was signed by Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs for the Tamil Nadu Industrial Connectivity Project on behalf of the Government of India and Takeo Konishi, Country Director – India, ADB. “The project is key to providing seamless road connectivity across industrial clusters, transport gateways, and consumption centres, and help reduce logistics and production costs for CKIC’s targeted industries to boost their competitiveness,” said Mishra. Will upgrade 590km of highways The project will upgrade about 590 km of State highways in the CKIC influence areas, covering 23 of the 32 districts between Chennai and Kanyakumari in Tamil Nadu. “The overall objective is to spur industrial transformation through provisioning of essential transport, energy, and urban infrastructure for holistic development of industrial growth centres,” said Konishi. Enhanced connectivity of industrial hubs with hinterland and ports is expected to help increase the participation of Indian manufacturing in global production networks and global value chains, thereby creating jobs along the corridor. The project emphasises sustainability, climate change resilience, and road safety elements. Seven-year contracts are provided for long-term maintenance of road projects. Climate change adaptation measures will be incorporated in highway upgrades, including improved drainage, raised road embankments in critical sections, and resizing of bridges and culverts. The project will also strengthen road safety improvement programmes through advanced technologies for road monitoring and enforcement. In addition, the project will help improve the planning capacity of Tamil Nadu’s Highways and Minor Ports Department, it said.

Source: The Hindu Business Line

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China's industrial production jumps over 6% in May, shows data

The latest data released Wednesday by the statistics bureau showed a shift toward consumption-driven demand is underway, but at a gradual pace China’s main indicators steadied for a second month, a sign that the recovery is in a more stable phase and the economy is rebalancing slowly. The recovery from the pandemic has been led by a property-fuelled construction boom and surging industrial production for export, with consumer spending remaining the weak link — and the key to more sustainable growth. The latest data released Wednesday by the statistics bureau showed a shift toward consumption-driven demand is underway, but at a gradual pace. Industrial production rose 6.6 per cent in May on a two-year average basis — which strips out the impact of last year’s pandemic — while retail sales grew 4.5 per cent, about half of its pre-pandemic rate. Investment in fixed assets such as property and land was 4.2 per cent on that basis in the five months through May, according to the National Bureau of Statistics.

Source: Business Standard          

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China’s Guangdong COVID-19 restrictions to hit exports near-term

Pandemic-related restrictions imposed in Guangdong, China in May are expected to slow down exports in the near term, as the province account for nearly a quarter of the country’s total shipments abroad. The province is an industrial hub in southern China, producing various products from toys to textiles to cars – all major downstream industries of petrochemicals. “Shipping bottlenecks in Guangdong will affect near-term trade flows. We expect the disruptions will be short-lived, but they present additional risk to global supply chains,” said Tommy Wu, lead economist at the research firm Oxford Economics in a note. Guangdong accounts for 24% of China’s exports and 19% of its imports, according to Oxford Economics. Cargoes going in and out of Guangdong are facing logistics problems, with lockdowns in place in some of the province’s communities following a recent spike on COVID-19 cases in its capital Guangzhou. A severe power outage which could last into September is also gripping China’s southern region, affecting overall production. “Strict containment measures were reimposed in Guangdong in May to fight the rise in Covid [coronavirus disease] cases, causing some disruptions to production bases and severe delays in some of the busiest container ports in China, including the Yantian port in Shenzhen,” Wu said. “That said, we think the disruptions will likely be short-lived, though the interruptions could cause further delays to global supply chains and add pressures to shipping costs,” Wu said. China’s total exports in May posted a 27.9% year-on-year growth, representing a slowdown from the previous month’s 32.3% pace. In the first five months of 2021, China’s cumulative exports were up by 40.2% year on year. January-February shipments surged by more than 60%, coming from a deep slump in 2020. “We expect global demand for electronics and non-pandemic related products to support China’s export outlook, though the overall momentum will slow amid reduced demand for protective gear (part of textiles) and automated data processing machines (laptops and computers),” Oxford Economics’ Wu said. Exports of personal protective equipment (PPE) and some medical supplies and equipment, meanwhile, are expected to fall as global coronavirus cases decline and as the US and European economies re-open. “However, demand from emerging markets may hold up for longer considering the slow pace of vaccinations,” Wu said. Several countries in Asia, including India, fall under this category nearly 18 months since the coronavirus outbreak started in central China. China – which is the world’s second biggest economy – has staged a strong recovery, having exited a paralysing lockdown much earlier compared with the rest of the world. “China’s role in global supply chains hasn’t diminished,” Wu of Oxford Economics said. “While further decoupling with China by developed countries is concerning, we think the pressure to reduce China’s role in global supply chains is mainly focused on the most sensitive IT (information technology) sectors,” Wu said.

Source: Hellenic Shipping News

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New industry report ‘Circular Textiles for a Sustainable Future’ calls for radical change in the global textile industry

The textile industry is the second biggest polluter globally. A report from PCIAW and BITC aims to radically alter the way we make, use and dispose of textiles MILTON KEYNES, UK, June 16, 2021 /EINPresswire.com/ -- The ‘Circular Textiles For A Sustainable Future’, from PCIAW® and Business in the Community (BITC), serves as a guide for the government-backed Textiles 2030 initiative, which aims to massively cut textile waste and has been created as an overview of the current state of the sector. It reviews current principles and practices in the textile industry and focuses on the present facilities available for recycling technologies and renewable energy. Textiles account for 10% of global carbon emissions, 20% of global industrial wastewater pollution and less than 1% of material used in the production of clothing is recycled into new clothing at its end-of-life stage. The report looks at the environmental implications of current textile wastage, alongside ongoing research and cutting-edge practices that should lead to an increase in corporate environmental responsibility in future years. It aims to educate manufacturers, suppliers, buyers and designers in the principles and practices of circularity in textiles for workwear, including PPE and corporatewear. It details best practice in the disposal of textiles and looks at how circularity can be designed-in to the whole process of making, using and reusing textiles. The huge demand for cheap clothing and ‘fast-fashion’ has led to a ‘race to the bottom’ in terms of unethical and unsafe working practices globally. Moreover, most fast-fashion textiles are not fully recyclable, so a move from retailers for zero tolerance on poor practices would help avoid a lack of transparency in the global supply chain which masks the problem of forced labour, human rights abuses and lack of re-usability. The report says that the textile industry must foreground resource efficiency, end-of-life recyclability and sustainable development from renewable natural materials and it calls for immediate action to reduce further damage to the planet. Although there are short term costs involved in making these changes, the long-term gains would be invaluable and the report finds that there is a growing culture of demand for better quality, more durable clothing. In terms of achieving these aims, the report points to several practices and initiatives designed to further positive outcomes: Manufacturing locally would reduce waste and stimulate local economies that have been disrupted by Coronavirus. At present many textiles are made in one country and exported thousands of miles away, using valuable resources. Producers must engage in Extended Producer Responsibility (EPR). This means taking responsibility for the entire life cycle of a product, including collection, dismantling, recycling and reusing. It begins with the sourcing of raw materials and includes reducing the carbon impact of the supply chain and distribution network, plus the disposal of garments to prevent them from piling up in landfills. Design-in recyclability and end-of-life procedures are necessary to fulfil textile circularity. The report finds that designers of the future must incorporate strategies for this. There is a growing cultural shift towards these principles and PCIAW® is collaborating with several companies making eco-conscious professional wear. Many of these companies are also researching better ways to recycle and reuse textiles through new mechanical and chemical processes. Remove obstacles relating to recyclable textiles for buyers, suppliers, and manufacturers who are looking to implement these into their supply chain. This would aid with taking the industry a step closer to realising a circular economy. Yvette Ashby, CEO of PCIAW® comments: “We are proud to share this extensive, first of its kind report, which educates the industry on the current and emerging textile recycling technologies, complete with case studies from world leading professional clothing companies and universities. We hope that the textiles industry takes the necessary steps to accelerate a circular textile economy once and for all.” PCIAW® is committed to championing forward-thinking innovators, educating the industry and facilitating networking opportunities to steer the direction of the professional clothing industry towards a sustainable future. Along with BITC, PCIAW® is collaborating with Textiles 2030: Sustainable Textiles Action Plan, WRAP to implement an impactful and collaborative climate action plan for diverse textile companies in the UK. The ‘Circular Textiles For A Sustainable Future’ Report is free to download from the PCIAW® Website.

Source: EIN News

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US, China trade war costs global value chains 3-5 years of growth, says UN

 Report researching the post-pandemic future of global value chains found that trade within those supply lines shrank in absolute terms. Trade shocks fueled by unilateral tariffs between the U.S. and China have undone three to five years worth of growth among global value chains in affected countries, according to a UN policy brief. The report from the United Nations Development Programme looking at the postpandemic future of global value chains found that trade within those supply lines shrank in absolute terms along with other types of trade. Still, they’ll remain at the core of economic recovery in the Asia-Pacific region even as global manufacturers consider moving production closer to home. Tariffs are still being applied on billions of dollars of goods under a U.S.-China trade war that began under President Donald Trump. “The trade policy shock is therefore very large,” the UNDP report states. “However, while there is some unraveling of global value chain linkages, there is by no means a wholesale disintegration of the model.” While the effect of the shocks is “far from negligible,” it says, the absence of policies designed to disrupt production sharing — for example, those targeting use of foreign inputs rather than trade generally — makes it “extremely costly to radically alter the prevalence of global value chain trade.” The U.S. and China agreed on a partial trade deal in 2020, though China never met its purchase commitments. The U.S. trade representative has since stated that a “significant imbalance” remains in the trade relationship between the world’s two largest economies. Aside from the trade war, restrictive trade policies during the Covid-19 pandemic have also amplified shocks as producing countries restricted exports, the report states. The supply troubles come as the cost of shipping goods across the globe is skyrocketing, threatening to boost consumer prices and compounding concerns in global markets already bracing for accelerating inflation. “What we’ve seen both because of the pandemic and because of the trade war is that countries, including China and the U.S., have actually diversified risk,” said Kanni Wignaraja, UN assistant secretary-general and the UNDP’s Asia-Pacific director. “Previously there was a lot of talk saying ‘Let’s go for least cost,’ and the cheapest option started stretching that global value chain,” she said. “Now we’ve seen this double shock, showing the advantage of our global value chain system because you’re starting to see the diversified risk, and more reliance on multiple suppliers in multiple countries.” Trade Pacts The report finds “significant potential” for countries to boost trade through two mega agreements, the Regional Comprehensive Economic Partnership and the Comprehensive and Progressive Trans-Pacific Partnership, both of which involve a number of economies in Asia. Nations participating in the CPTPP may enjoy the equivalent of 12 years of additional global value chain integration based on the rate observed between 2000 and 2018, while RCEP countries may see a boost equal to around five years, according to the report. It also suggests Asian economies, which rely on the export of transport equipment, electronics, textiles and apparel among other goods, should focus on developing general redistribution policies and social-safety nets. Both are “more efficient and effective in the medium- to long-term in promoting human development objectives than is restricting trade and investment flows,” the report says.

Source: Bloomberg

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Urgent break with fast fashion needed in upcoming EU textile laws

25 NGOs rebuff voluntary agreements to clean up the fashion industry, calling for the EU’s upcoming textile legislation to hold brands accountable for their contribution to global pollution. Some of Europe’s largest networks of green groups are joining forces to demand an end to fast fashion in the textile industry, one of the world’s largest industrial polluters. As part of the Wardrobe Change campaign, NGOs are calling for new policies to stop runaway overproduction of textiles. Proposed measures include minimum standards for how long clothes should last, a ban on the destruction of unsold and returned goods, rules to verify and substantiate green claims, and ambitious targets for an absolute reduction in the amount of natural resources used across the supply chain. The group is also calling for urgent rules on hazardous chemicals in fashion and for moves to combat environmental harm to include action to end labour rights’ violations in supply chains. The call comes as clothing and textile production continues to soar despite an abundance of sustainability initiatives from major fashion brands and retailers. The European Commission is currently gathering feedback from industry and civil society organisations, with the aim of putting forward new measures by the end of the year. Emily Macintosh, Policy Officer for Textiles at the European Environmental Bureau (EEB), said: “We can’t ask people to do their part when it comes to sustainability if the multi-billion-dollar companies responsible for promoting such unsustainable consumption habits are not being held to account. EU laws should focus on reducing the amount of resources used across supply chains and on boosting the market for secondhand and repairable textiles. Fast fashion’s linear and exploitative business model must become a thing of the past.” Valeria Botta, Programme Manager at ECOS – Environmental Coalition on Standards, added: “The EU can transform the way textile products are designed, making them sustainable by default. Our clothes need to last longer, be easier to mend and reuse, and be made without harmful materials and substances. To make sure textiles and their production are truly circular, we need ambitious EU laws that set minimum requirements, push the market towards the best option, and include ambitious binding targets for material and consumption footprints. The EU should grasp this opportunity to finally regulate this industry and inspire others.” The NGOs’ position paper has four key demands: • Make sustainable textile products the norm through high minimum design standards, better production processes, traceability, transparency and information disclosure, and banning the destruction of unsold and returned goods. • Drive resource-sufficient textile consumption with rules on what reliable green claims can be made on products, harmonised labelling, and better information on the expected lifetime and repair ability of a product. • Leave the linear business model behind by taxing virgin resource use and making producers responsible for the products they put on the market from cradle to grave. • Hold the EU textile industry accountable for its role in the world through a trade reset and strong human rights and environmental due diligence rules.

Source: Recycling Magazine

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