The Union commerce and industry ministry is finalizing the terms of reference (ToR) for a free trade deal with Chile, before the two nations start talks aimed at boosting bilateral economic ties, two people aware of the matter said. The two sides aim to expand trading relations beyond agriculture and goods, to include digital services and investment under the deal, a Comprehensive Economic Partnership Agreement (CEPA), they said. This comes in the backdrop of India trying to secure lithium mines in Chile. Both countries signed a preferential trade agreement (PTA) in 2005, which is a limited trade pact. Given that India is aiming to explore new markets to diversify its exports, the finalization of the ToR will help in moving ahead with negotiations with Chile, thereby allowing India to gain greater access to the South American region, one of the persons cited above said. Terms of reference refer to the purpose and structures of a negotiation agreed to work together to accomplish a shared goal. The talks are likely to start in a few months after the new government is formed at the Centre. Queries sent to spokespersons of the commerce ministry and Chilean Embassy remained unanswered till press time. According to the commerce ministry's Niryat portal, exports to Chile stood at $1.10 billion till February 2024, which represents a marginal increase from $1.06 billion in the corresponding months of the previous fiscal year (2022-23). Total imports from the South American nation amounted to $1.27 billion till April-January 2024. Major commodities exported to Chile include engineering goods, drugs and pharmaceuticals, textiles, ceramic products, glassware, spices, fruits, vegetables, and petroleum products. In return, India receives copper ore, halogens, sulfate, chemical wood pulp, walnuts, etc. India is aiming to boost exports of maize, fresh or dried bananas, groundnuts, oil cakes, and other agricultural items to Chile, which shares borders with Peru, Bolivia and Argentina. According to ITC Trade Map data, Chile's exports to India have increased at an annualized rate of 10.1% over the last 27 years, rising from $93.1 million in 1995 to $1.26 billion in 2022. “The comprehensive trade agreement with Chile will allow India to access lithium, which is an important component for transitioning from conventional sources of energy", the second person said. The government has also signed a non-disclosure agreement with the Chilean state-run company ENAMI to secure supplies of lithium. Chile, Argentina and Bolivia make up the 'Lithium Triangle,' which holds some of the largest deposits of lithium worldwide. Lithium is crucial to India's transition to sustainable energy sources and reducing its carbon footprint. The mineral plays a vital role in electric vehicles, battery manufacturing, mobile phones, and other energy storage solutions
Source: Live Mint
Textile and apparel exports, which were under stress for more than a year, grew 6.91 % year-on year in March. However, for the financial year 2023-2024, the exports contracted 3.24% from the year-earlier period. Cotton yarn, fabrics and made-up exports increased 6.78 % in March from the year-earlier period. For FY 24, these saw a 6.71 % increase year-on-year. Apparel exports, which went up 1.7 % in last month compared with March 2023, suffered a 10.25% decline in fiscal 2023-2024 from 2022-2023. According to Sunil Patwari, chairman of the Cotton Textiles Export Promotion Council, the growth of cotton textiles last financial year despite geo-strategic challenges showed the resilience of the Indian textile industry. The new government to be formed at the Centre should address issues such as cotton prices and preferential access in key markets to sustain the growth, he said.
Source: The Hindu
Synopsis The Central Board of Direct Taxes (CBDT) has entered into a record 125 Advance Pricing Agreements (APAs) with Indian taxpayers in 2023-24. This includes 86 Unilateral APAs (UAPAs) and 39 Bilateral APAs (BAPAs), the finance ministry said in a statement on Tuesday. The Central Board of Direct Taxes (CBDT) has entered into a record 125 Advance Pricing Agreements (APAs) with Indian taxpayers in 2023-24. This includes 86 Unilateral APAs (UAPAs) and 39 Bilateral APAs (BAPAs), the finance ministry said in a statement on Tuesday. This marks the highest ever APA signings in any financial year since the launch of the APA programme, it said. The number of APAs signed in 2023-24 also represents a 31 per cent increase compared to the 95 APAs signed during the preceding financial year. With this, the total number of APAs since inception of the APA programme has gone up to 641, comprising 506 UAPAs and 135 BAPAs, it said. During 2023-24 CBDT also signed the maximum number of BAPAs in any financial year till date, it said, adding, the BAPAs were signed as a consequence of entering into mutual agreements with India's treaty partners namely Australia, Canada, Denmark, Japan, Singapore, the UK and the US. The APA Scheme endeavours to provide certainty to taxpayers in the domain of transfer pricing by specifying the methods of pricing and determining the arm's length price of international transactions in advance for a maximum of five future years. Further, the taxpayer has the option to rollback the APA for four preceding years, as a result of which, tax certainty is provided for nine years. The signing of bilateral APAs additionally provides the taxpayers with protection from any anticipated or actual double taxation. The APA programme has contributed significantly to the government of India's mission of promoting ease of doing business, especially for multinational enterprises which have a large number of cross-border transactions within their group entities, it said.
Source: Business Standard
Synopsis India is considering expanding its capital goods promotion scheme to include sectors like pharmaceuticals and textiles. The current scheme primarily supports electrical component and automobile manufacturing, but the government is now considering extending support to other sectors. Plans are also being considered to introduce newage technologies beyond electric vehicles, batteries, and automobile manufacturing. India is proposing to expand the ambit of a key capital goods promotion scheme to include more sectors such as pharmaceuticals and textiles. The current capital goods promotion scheme focuses heavily on electrical component and automobile manufacturing, and the government is now keen to extend support to others. Plans are afoot to also bring new-age technologies besides those used for electric vehicles, batteries and automobile manufacturing. "Proposals to expand the ambit of the scheme are being considered. The aim is to better cover capital goods manufacturing across sectors," a senior official aware of the development told ET. Work is also underway to better India's Industry 4.0 plans by including more robotics and semiconductor-related applications. The first phase of the capital goods scheme started in November 2014 with an outlay of ₹995.96 crore. Its second phase began in January 2022 with ₹975 crore budgetary support and industry contribution of ₹232 crore. The scheme is aimed at bridging the skill gap and addressing infrastructure development as well as technology needs of the capital goods sector. The capital goods sector contributes around 12% of India's GDP and provides 5.5 million jobs, according to official estimates. India's capital goods industry is segmented across electrical equipment, process plant equipment, earth moving, construction & mining machinery, machine tools and textiles machinery. "There have been several representations from other sectors about inclusion in the capital goods scheme of the ministry of heavy industries," the official said, adding that, at present, sectors such as mining, textiles and pharmaceuticals approach their nodal ministries for support. According to the National Capital Goods Policy 2016, plastic machinery; process plant equipment; dies, moulds & press tools; printing machinery; metallurgical machinery and food processing machinery also command a significant share in India's capital goods output. The government could also consider tweaking this policy in line with the new scheme.
Source: Economic Times
India and the United Kingdom will resume talks for the proposed free trade agreement (FTA) this week when an official Indian delegation visits London. “A team is going to the UK this week. There are very few pending issues left in the negotiation,” said commerce secretary Sunil Barthwal on Monday, while declining to identify the issues. “A couple of key priority issues to seal the deal are being ironed out to have a balanced outcome,” said a commerce ministry presentation, adding that majority of difficult issues are towards resolution. The talks will be part of the 14th round of negotiations between India and the UK, the first leg of which was started in March this year. India and UK launched negotiations for a free trade agreement in January 2022 but the talks have gained momentum in recent months and were seen to be almost close to the finish line. However, with the General Elections in India, they are now in the slow lane but it is expected that a deal may be signed soon after the new government is elected. Pending issues between the two countries include the UK’s ask for greater market access and lower tariffs for items such as whiskeys and automobiles. India is looking for more visas for its professionals and social security payments by Indian professionals working temporarily in the UK though they do not qualify for pensions in the country. Meanwhile, India and the European Union are likely to start the eighth round of negotiations for the FTA, which is likely in May or June this year in Brussels. Both sides have decided to meet virtually to discuss some chapters before the commencement of the next round. The seventh round of talks between the two was held in February.
Source: Business Today
India is "one of the strong performers", the International Monetary Fund, which in a report projected a 6.5 percent growth rate for the country for the year 2024, said. With this, India continues to be the fastest growing economies of the world and ahead of China's growth projection of 4.6 per cent during the same period, it said. "Indeed, India is one of the strong performers. We had a fairly sharp revision in the Fiscal Year 2023 to 2024, the one that is ending, and that has just ended. Then we have 0.3 percentage point upgrade for Fiscal Year 2024 to 2025. So India is doing quite well," Pierre-Olivier Gourinchas, chief economist of the IMF, told reporters at a news conference here. Growth in India is projected to remain strong at 6.8 per cent in 2024 and 6.5 per cent in 2025, with the robustness reflecting continuing strength in domestic demand and a rising working-age population, according to the latest edition of the World Economic Outlook released by the IMF ahead of the annual spring meetings of the IMF and the World Bank. At the same time, growth in emerging and developing Asia is expected to fall from an estimated 5.6 per cent in 2023 to 5.2 per cent in 2024 and 4.9 per cent in 2025, a slight upward revision compared with the January 2024 WEO Update. "Growth in China is projected to slow from 5.2 per cent in 2023 to 4.6 per cent in 2024 and 4.1 per cent in 2025 as the positive effects of one-off factors including the post pandemic boost to consumption and fiscal stimulus ease and weakness in the property sector persists," the IMF said. Global growth, estimated at 3.2 per cent in 2023, is projected to continue at the same pace in 2024 and 2025. The forecast for 2024 is revised up by 0.1 percentage point from the January 2024 WEO Update, and by 0.3 percentage point from the October 2023 WEO, the IMF said. Responding to a question, Daniel Leigh, Division Chief, IMF Research Department moderation partly reflects the tightening in monetary policy and the tightening in fiscal policy, which is necessary to bring inflation down. "We see inflation coming down is in the target range 4.6 this year, 4.2 next year. There are upside risks to this forecast. They could be further strengthened in private demand. Also, an upside comes from the potential for reforms that would liberalise foreign investment and really boost exports and boost jobs and labour force participation. So it's a very strong outlook, and there's a balanced risk outlook," Leigh said.
Source: Money Control
In SC Indian government recently passed Section 43B(H) of the Income Tax Act in the Finance Bill 2023 to protect micro and small enterprises (MSEs) from delayed payments by buyers. However, MSEs do not see it in their interest, as evidenced by a recent petition made in the Supreme Court to challenge the provision. An Ahmedabad-based trade body, The Federation of All Indian Vyapar Mandal, has challenged the constitutionality of this provision, arguing that it unfairly discriminates and is detrimental to MSEs in the country. The provision places an undue burden on MSEs, compelling them to strictly adhere to a 45-day credit limit, the petition said. The section creates a classification among manufacturers regarding the credit facility offered to buyers. Micro and small enterprises cannot extend credit to buyers beyond 45 days, whereas medium and large enterprises face no such restrictions and can offer any credit line as they wish. The petition claims that this provision unfairly disadvantages MSEs by favouring medium and large-scale industries. Such discrimination may lead small-scale industries to lose market share to their larger competitors. The petitioner argued that Section 43B(H) infringes upon the fundamental rights of MSEs to conduct business on their own terms and grant credit as they wish. The trade organisation has challenged the constitutionality of the section, stating it has a detrimental impact on the entire business community. The Federation, which represents industries including textiles and chemicals based in Gujarat, has therefore raised issues related to MSEs from the state in its petition. It is important to note that although the provision was added to protect the interests of MSEs in the country, trade and industry organisations representing MSEs did not support the payment rule. They feel that such a provision may harm MSEs as buyers might turn to larger suppliers who can offer a more extensive credit limit.
Source: Fibre2fashion
The UK government on Tuesday said that it continues to work towards striking an ambitious trade deal with India as a negotiating team from Delhi resumed talks with their British counterparts in London this week. The Department for Business and Trade (DBT) reiterated its stance of only signing a free trade agreement (FTA) that was in the best interests of the British people and economy. Last month, DBT officials had indicated that formal trade negotiations were being paused for the course of India's phased general election, though some talks were expected to carry on until the poll results are declared on June 4. On Tuesday, UK officials said discussions resume in London this week to "continue talks under Round 14" of the negotiations, which opened in January. The UK and India continue to work towards an ambitious trade deal that work for both countries, a DBT spokesperson said. While we do not comment on the details of negotiations, we are clear that we will only sign a deal that is fair, balanced, and ultimately in the best interests of the British people and the economy, the spokesperson said. It came as reports from New Delhi suggested a resumption of talks as the Indian team arrived in London to review the very few pending issues remaining in the path towards an agreement. Senior Indian officials familiar with the discussions have indicated working towards a window for an FTA to be signed off after the Indian elections and before Prime Minister Rishi Sunak confirms the date for the UK general election, expected in the second half of the year. The India-UK FTA negotiations, which opened in January 2022, are aimed at significantly enhancing bilateral trade currently worth around GBP 38.1 billion a year as per official statistics from earlier this year. Last month, UK Secretary of State for Business and Trade Kemi Badenoch said the bigger the country, the more complex the trade agreement". "And also, the more different the economy is, the harder it is to negotiate...India is still very protectionist, where we are very, very liberalised, she said. The UK wants India to significantly reduce tariffs on UK exports and India in turn is concerned about the fairness of rules applied to Indian professionals.
Source : Business Standard
The rupee plunged to a fresh low of 83.54 against the US dollar on Tuesday amid continuous foreign fund outflows in the equity market and strengthening of the greenback. The resurgent dollar weighed on global emerging-market currencies amid heightened tensions in West Asia after Iran launched a drone and missile attack on Israel over the weekend. Investors exhibited a tepid appetite for riskier assets, according to market participants, who also said that the Reserve Bank of India (RBI) intervened in the foreign exchange market and sold dollars to state-owned banks, stemming the rupee’s depreciation. The Indian currency touched an intraday low of 83.55 per dollar, breaching the previous record intraday low of 83.48 — a level hit on November 10, 2023. The rupee had settled at a closing low of 83.45 per dollar on Monday. Indian government bonds, too, weakened and the benchmark 10-year bond yield touched a near three-month peak on worries over the heightened conflict in West Asia and receding bets of an early rate cut by the Federal Reserve. In the US, too, the benchmark bond yield climbed further. he yield on the benchmark Indian 10-year note ended at 7.187 per cent, its highest since January 25, after closing at 7.178 per cent in the previous session.
Source: Business Standard
London-based asset manager Ashmore Group PLC is reducing its exposure to Indian equities and has made China the #1 pick in its emerging-markets fund, arguing that India’s stock market is overhyped and overcrowded while China’s is set for a rebound. With $6.5 billion invested in emerging equities, the fund has allocated 26% of its EM equity fund to China, while reducing India to less than half that, according to Edward Evans, a London-based EM equities portfolio manager. He cites a divergence in valuations as the main reason for the decision. “The risk-reward balance is arguably stronger for China and less so for India,” Evans said. “India demonstrates fantastic economic growth with great policy stability and it’s often quite a fertile ground for stock selection. But that said, one cannot be agnostic to price, not least in fast-growing emerging markets, since you do not want to pay up front for those future returns.” Ashmore’s bet goes against market consensus. Almost half of 390 Bloomberg MLIV Pulse survey respondents between April 8-12 selected India as the best investment compared to Japan and China, which was least favored among the three. Indian equities currently trade at a whopping 23 times next year’s expected earnings, exceeding even US multiples, and compared with nine for China, according to data compiled by Bloomberg based on MSCI Inc.’s indexes. Ashmore has also previously been overweight India, but has booked profits as many companies reached valuations at “extremes” that “ultimately don’t look sustainable,” Evans said. “We are a quality-growth investor, but we are not agnostic to valuation, or to price, and that led us to take profits.” He also cited a risk in India that authorities could look to dampen more speculative investing behavior, especially in the domestic market, making the policy narrative less supportive. In China, the risks are well known, ranging from geopolitical tensions and a trade showdown with the US, to a property sector crisis and growth that’s cooling from the world-beating levels the economy enjoyed over past decades. The main gauge of Chinese equities has tumbled about 40% from its peak three years ago, and is down 19% in the past year, compared with a 33% gain for the benchmark MSCI India index.
Source : Business Standard
İSTANBUL, Turkey HIGHTEX 2024 Exhibition, which will bring together the world’s leading technical textile and nonwoven manufacturers and technology leaders with global buyers, will open its doors to visitors on 4-8 June 2024. HIGHTEX 2024, which attracts great interest from domestic and foreign companies, will host thousands of industry representatives and visitors from all over the world. International Technical Textiles and Nonwovens Exhibition-HIGHTEX 2024, the first and only exhibition of its field in Turkey, will be held at Tüyap Fair and Congress Centrebetween 4-8 June next year. Preparations are underway for the HIGHTEX 2024, where nonwoven products, raw materials used in production and the latest technologies will be exhibited. HIGHTEX 2024, which has become more important as technical textiles take up more space in all areas of our lives, attracts great interest from companies. HIGHTEX 2024 Exhibition, which is expected to reach a record occupancy rate as a result of the demand from the leading manufacturers of the sector and new entrepreneurs, will accelerate the technical textile and nonwoven sector.
Global Technical Textiles Market Expected to Reach USD 272 Billion by 2030
Although the use of technical and textile words together is surprising to most people, ‘technical textile’ products are used extensively in various areas of our daily lives, from home to automobile, from clothing to agriculture, from highways to hospitals. So much so that the share of technical textiles in the traditional textile sector has reached 45-50%. Unlike the traditional textile and ready-to-wear sectors, technical textiles are seen as a sector that is constantly growing strongly and promising for the future. This is also reflected in the research results. According to a new report prepared by Grand View Research Inc.; the global technical textile market size is expected to reach 272.33 billion dollars by 2030, recording a compound annual growth rate of 4.7%.
The Latest Technologies in Technical Textiles to be Exhibited at HIGHTEX 2024
The high demand for HIGHTEX 2024 shows the strong growth of the sector, the future of the technical textile industry and the importance given to innovation. As a matter of fact; technical textiles and nonwovens will be integrated into more industries and living spaces in the future. HIGHTEX 2024 Exhibition will be an important platform for those who want to accelerate this integration process and shape the future of the industry. At HIGHTEX 2024, which will bring together the leading manufacturers and suppliers of the sector with professional visitors; the latest products in many fields such as medical, automotive, aerospace, hygiene, agriculture, food, construction, smart textiles and geotextiles will be exhibited. HIGHTEX 2024 will not only provide exhibitors with opportunities for collaboration and networking, but also the opportunity to learn the latest trends, develop innovative products and strategies for the future.
Source: Textile World
MANILA, Philippines — The government is working on an industry roadmap for the local fashion and textile sectors that will identify current-day challenges and opportunities, as well as set the policy direction for these industries. The Department of Trade and Industry (DTI) on Wednesday said it conducted a validation session last Tuesday where it gathered inputs from industry leaders, experts, and stakeholders. “The roadmap aims to evaluate the past performance and present conditions of the Philippine and global fashion and textile industries and pinpoint the impediments and obstacles hindering its advancement,” the DTI said in a statement. The government agency added that the draft of the planned road map also highlights key strategies under its strategic pillars dubbed as D.R.E.A.M. These include the development of the capacity of artisans and designers, raw material investments, the establishment of enabling policies and infrastructure support, archiving and documentation, and market stimulus and expansion Trade Undersecretary Rafaelita M. Aldaba, who leads the DTI’s Competitiveness and Innovation Group, highlighted that globalization and trade liberalization have presented new challenges and opportunities for these industries. High-value, eco-friendly textile products “The prospects for the growth and development in the Philippines are promising because of our diverse cultural heritage, skilled labor force, and the support of government initiatives that assist local designers, develop sustainable practices, and enhance the competitiveness of Philippine textiles in the local market,” Aldaba said. friendly textiles, adding that the government policies and strategies are enhancing industry competitiveness, promoting innovation, and strengthening the local supply chain. Sought for comment, Foreign Buyers Association of the Philippines (FOBAP) president Robert M. Young told the Inquirer that the roadmap seems to be focusing more on the indigenous textile business. Young, whose trade group had exported as much as $1 billion worth of garments goods a year in the past, said there should be more attention to the mainstream commercial fast fashion given its higher revenue generation potential. “(The) Philippine government must revive and re-develop the commercial type of fabric and textile for local commercial and export manufacturing,” he said, adding that the government can begin by establishing pilot textile mills so that the Philippines can produce its own fabrics instead of importing these goods.
Source: Business.inquirer.net
ISLAMABAD: As the country heads towards negotiating another International Monetary Fund (IMF) loan programme, textile millers have called on the government to formulate export-oriented policies by reducing energy tariffs and tax rates to make the industry competitive in the global market. In a letter to Finance Minister Muhammad Aurangzeb, the All Pakistan Textile Mills Association (Aptma) stressed that as the country was going to negotiate a new IMF programme, a fundamental reform required was to foster an export-centric culture across all sectors of the economy. It was of the view that the new programme should accommodate the peculiar circumstances where the essential need was to develop and expand exports. “This will go a long way in alleviating one of Pakistan’s most pressing issues: a chronic shortage of foreign exchange.” According to the IMF’s estimates, Pakistan’s gross external financing requirement stands above $25 billion annually for the next five years. Three sources of fetching foreign exchange to meet this requirement are foreign borrowing, remittances and exports – “the latter being the most sustainable and inclusive”. However, exports could not thrive under the prohibitive anti-export policies that had been implemented over the past year and beyond, the millers said, adding that high taxes and persistent delays in tax refunds had squeezed out all liquidity from the manufacturing sectors, which represented only about 20% of GDP but contributed over 60% of tax revenue. They are paying 20 different federal and provincial taxes. In addition, power tariffs for industrial consumers have been increased to over 17.5 cents/kWh, which is more than twice the regional average, while gas prices have been raised by 223% since January 2023. There was “no financially viable source of energy for manufacturing activities in Pakistan,” the textile millers lamented, adding that having learnt lessons from the past IMF programmes, jacking up power tariffs beyond affordability had proved counterproductive and did not yield the desired results as the circular debt continued to grow.
Source: Tribune
After Bangladesh’s anticipated graduation from least developed country (LDC) status in 2026, the government pledged to extend incentives to exporters, ensuring their sustained competitiveness in the global markets even as state minister for commerce, Ahsanul Islam Titu, emphasised the necessity of the incentives. He however underlined that direct cash subsidies on export receipts would not be possible once the country transitions to a developing nation and highlighted adherence to the World Trade Organization’s guidelines in deciding the framework for these subsidies, indicating a commitment to international trade standards. The minister also noted that even developed and developing nations offer similar support to exporters.The Commerce Ministry is also proactively identifying sector-specific challenges post-graduation, ensuring targeted interventions. The minister further disclosed the formation of a high-powered committee under the cabinet division tasked with identifying challenges while also recommending solutions. This proactive approach underscores the government’s commitment to mitigating adverse effects on exporters post-graduation.
Source: Fibre2fashion
LONDON – A commercial-scale, post-consumer polyester recycling plant, billed as the first of its kind, has begun operations in the UK in a joint venture between textile recycler Project Plan B and the Salvation Army Trading Company (SATCoL). Known as Project Re:claim, the plant is based at SATCoL's textile processing centre for post-consumer garments that would otherwise go to landfill in Kettering, Northamptonshire.
Source: Eco Textile News
University of Alberta research is turning straw into economic gold, in the form of Canadian-made, environmentally friendly fibres that can be used for everything from dental floss to workwear. The new project explores the most efficient way to process and manufacture specialized fibres from cellulose, a compound comprising linked sugar molecules found in all plants, says lead researcher Patricia Dolez, a textile scientist in the Faculty of Agricultural, Life & Environmental Sciences. The work, when fully developed, can benefit the environment, the economy and Canada’s textile manufacturing sector, she says. “There’s a lot of overarching potential for this work to strengthen Canada’s bioeconomy by creating made-in-Canada fibres using local sources of cellulose in an environmentally friendly process.”Experimenting with cellulose from Canadian-grown hemp, Dolez and her team plan to determine the best parameters for producing lyocell, a man-made fibre that can then be turned into textiles for a wide range of products. The solvent used in producing lyocell is almost 100 per cent recoverable, making it a sustainable way to manufacture textile fibres. The regenerated cellulose fibres also provide a use for agricultural straw that would otherwise be left in the field, notes Lelia Lawson, a PhD student in human ecology working on the project. Hemp, in particular, offers “great opportunities as a local source of cellulose for the lyocell process,” she says. While traditional sources like eucalyptus trees and bamboo plants don’t grow in Canada, the country’s long daylight hours are good for growing hemp. “It can grow up to 20 feet tall, which means more feedstock to work with. There’s a lot of biomass from this crop.”
Source: University of Alberta
