As the campaign for the UK general election gathers momentum after British Prime Minister Rishi Sunak surprised many this week with a snap summer poll on July 4, exactly a month after India's election results on June 4, the prospect of an India-UK free trade agreement (FTA) has been kicked into the long grass. While political analysts and strategic experts have expressed confidence that very little should change on the bilateral relationship front whatever the outcome in either election, the very small window that was open for a deal being clinched by the Sunak-led Tory government has now been swept away in the election wave of both countries. The Opposition Labour Party, in the lead in most pre-election surveys, has committed itself to "finish the job" but the timelines will remain uncertain for some time. "Rishi Sunak's shock poll date announcement of July 4 has skewered any prospect of the finalisation of the long-awaited and much-anticipated FTA with India by a Conservative government," said Rahul Roy-Chaudhury, Senior Fellow for South and Central Asian Defence, Strategy and Diplomacy at the London-based think tank International Institute for Strategic Studies (IISS). "The Labour Party, widely expected to form the next government in the UK, has maintained steadfast support for such a deal, subject to an examination of the 'fine print' once it comes into office. The prospect for such a trade deal appears positive, providing an early boost to relations between the two new governments, the Labour and the widely expected third Modi government," he said. Dr Chietigj Bajpaee, Senior Research Fellow for South Asia, Asia-Pacific Programme at Chatham House, described the FTA as a 'key watchpoint' for its broader strategic significance in terms of deepening the bilateral relationship. "There should be a high degree of continuity in UK-India relations, irrespective of who wins the UK election. Under Keir Starmer'ss leadership, the Labour Party has tried to reset relations with India, which had deteriorated under [former leader] Jeremy Corbyn," said Bajpaee. "The UK's outreach to India also needs to be seen in the broader context of the UK's IndoPacific pivot. There are questions on the UK's ability to sustain this in the context of fiscal constraints and preoccupation with other foreign policy priorities, wars in Ukraine and Gaza, and reviving relations with the EU," he said. A key aspect of this UK election will be that the country's first Indian-origin Prime Minister, who took over in the wake of political turmoil within the governing Conservative Party in October 2022, will now be taking his record at Downing Street to the voters. The British Future think tank has already forecast that the next UK Parliament is set to be the most diverse yet based on candidate selections by the major political parties, with at least 10 more MPs of ethnic minority background being elected to the House of Commons. "While Labour is doing well overall in the polls, it's got more challenges with ethnic minority voters as it faces challenges with Muslim voters over Gaza and Palestine," said Sunder Katwala, Director of British Future. "For the Conservative Party, obviously, they have Rishi Sunak, a British Indian leader, for the first time. It's an unknown factor how much it will matter to British Indian voters that the leader of the party is from their background. The likelihood is it will be a source of some pride, especially among older voters, but it's unlikely to help with first time and younger voters who take diversity in politics more for granted and are in an age where the Conservatives are struggling badly," he reflected. The British Indian think tank, 1928 Institute, feels the British Indian vote is "very much to play for, with the Conservatives very marginally ahead of Labour". "Our opinion is that this earlier than anticipated election will slightly benefit the Conservatives as the Labour electoral machine is still to reach and resonate with parts of the Indian diaspora," it said. A summer rather than the expected autumn general election is viewed as a welcome move for ending a long period of uncertainty from a business and industry perspective. "The new government will have many challenges to face, so we hope for a clear and decisive outcome that will allow the administration to implement its strategy to put the UK on the path of economic growth and prosperity," said Hinduja Group Chairman GP Hinduja.
Source: Money Control
Faced with tough negotiators from the United Kingdom (UK) and the European Union (EU), the Commerce and Industry Ministry has started looking at ways to strengthen India’s negotiating capabilities. Among other things, this exercise is likely to focus on plugging loopholes that emanate due to the loss of institutional memory on account of the routine transfer of key civil servants steering extended trade negotiations. Among the multiple steps under consideration, the Ministry is working on preparing a set of fresh standard operating procedures (SOP) on streamlining trade talks. Earlier, the Ministry had a 60-page SOP with details of approaching trade negotiations. Multiple former and current negotiators, and trade experts who attended the two-day “Chintan Shivir” organised on May 16-17 underscored that India is facing a systemic problem when it comes to negotiations amid fast changing contours of trade talks that go beyond traditional areas such as tariffs concessions to labour and environment.
Source: Indian Express
The Confederation of Indian Textile Industry (CITI) has urged the government to ensure availability of cotton and manmade fibre (MMF) at internationally-competitive prices to propel the Indian textile industry towards the target of $350 billion by 2030. The government should remove import duty from all varieties of cotton, including cotton waste, and increase cotton productivity with a focus on specialised seed varieties. On the MMF front, it should exempt all fibres and yarns that are not available domestically from the scope of Quality Control Orders (QCOs). It should also exempt inputs imported by Advance Authorisation holders, EoU and SEZ units from the mandatory QCOs issued by the Department of Chemicals and Petrochemicals (for polyester fibre/filament/yarn) on the lines of exemption provided for QCOs by the Ministry of Textiles. “The Indian textile industry has the required capacities and skills to grow. Raw material availability at internationally competing prices can address the present stagnation in the industry and help growth of the industry,”said Rakesh Mehra, chairman CITI.
Source: The Hindu
Days after the United States (US) jacked up tariffs on multiple Chinese imports, including electric vehicle (EV) batteries, computer chips and medical products, Indian exporters said that the loss of a major market for China could trigger dumping of Chinese products into India. “China is sitting on overcapacity in many sectors and thus the threat of dumping, in any case, not ruled out and more so when an important market is closed for their exports. I am sure industry and the government will be keeping a close watch on imports,” Ashwani Kumar, President, Federation of Indian Export Organisations (FIEO) said at a press briefing. Notably, China accounts for over half of the global EV sales, largely driven by its near dominance in battery production – a critical element for EV manufacturing. In 2023, China’s production of lithium-ion batteries was equivalent to the global demand that stood at 2,600 GWh. Chinese battery giant China’s Contemporary Amperex Technology Co Limited (CATL) plays the most crucial role in China’s hold over global battery production and the company alone accounts for two-thirds of the global battery production. CATL is a supplier to major automakers such as Tesla, Volkswagen AG and Toyota Motor Corp. Indian exporters said that the recent US move will start a tariff war between two major economic powers as a retaliation is soon expected from China. However, the US-China tariff war could also open up opportunities for the Indian players. “This [tariff war] provides an opportunity for India and other competitors to chip in the supply gap. Of the products affected by additional duties on China, India has opportunities in facemasks, Personal Protective Equipment Kit (PPE), syringes & needles, medical gloves, aluminium and iron & steel. Opportunity may come in China also with retaliation on US exports, provided we have market access in products targeted by China,” Kumar said. Notably, only $18 billion out of $420 billion exports of China to the US is affected by the recent tariff hikes which is little over 4 per cent. But a threat of dumping also comes as the European Union is expected to announce similar barriers citing possible injury from Chinese imports. The European Commission (EC) in October last year launched an anti-subsidy investigation into the imports of battery electric vehicles (BEV) from China. As per the EC, the investigation will first determine whether BEV value chains in China benefit from illegal subsidisation and whether this subsidisation causes or threatens to cause economic injury to EV manufacturers in the EU. “Based on the investigation’s findings, the Commission will establish whether it is in the EU’s interest to remedy the effects of the unfair trade practices found by imposing anti-subsidy duties on imports of battery electric vehicles from China,” the EC said. The US on Tuesday said that it will increase tariffs from 25 per cent to 100 per cent on EVs, bringing total duties to 102.5 per cent, from 7.5 per cent to 25 per cent on lithium-ion EV batteries and other battery parts and from 25 per cent to 50 per cent on photovoltaic cells used to make solar panels. Some critical minerals will have their tariffs raised from nothing to 25 per cent. The tariffs imposed by the US on ship-to-shore cranes will rise to 25 per cent from zero, those on syringes and needles will rise to 50 per cent from nothing now and some personal protective equipment (PPE) used in medical facilities will rise to 25 per cent from as little as 0 per cent now. More tariffs will follow in 2025 and 2026 on semiconductors, as well as lithium-ion batteries that are not used in electric vehicles, graphite and permanent magnets as well as rubber medical and surgical gloves. The US cited “unacceptable risks” to US economic security posed by what it considers unfair Chinese practices that are flooding global markets with cheap goods.
Source: Indian Express
Synopsis Despite recent turbulence in bilateral relations, the Maldives is set to launch India's RuPay service, a move expected to strengthen the Maldivian Rufiyaa. Minister of Economic Development and Trade Mohamed Saeed highlighted the significance of the upcoming launch, emphasizing the administration's priority to address currency issues and reinforce the MVR. While no specific date has been announced for the launch, discussions are underway with India to facilitate payments in rupees within the Maldivian territory. Notwithstanding the turbulence in their bilateralties, the Maldives will soon launch India's RuPay service, which a senior minister has said "will bolster the Maldivian Rufiyaa." RuPay, a product of the National Payments Corporation of India (NPCI), is the first of its global card payment network in India, with wide acceptance at ATMs, POS devices, and e-commerce websites across India. Minister of Economic Development and Trade Mohamed Saeed while announcing how both India and China have agreed to use local currency in bilateral trade, spoke about the upcoming launch of India's RuPay. "The upcoming launch of India's RuPay service is anticipated to further bolster the Maldivian rufiyaa (MVR)," Saeed told state-run PSM News on Wednesday. He also emphasised that "addressing the dollar issue and reinforcing the MVR. However, there has been no announcement of any date for the launch. Last week, a news portal, CorporateMaldives.com, reported that Saeed conveyed that the card will be "formally utilised for transactions denominated in rupees within Maldivian territory." "We are currently engaged in discussions with India to explore avenues for facilitating payments in rupees," the minister said. An India-Maldives joint statement during the official visit of the then President of Maldives Ibrahim Mohamed Solih to India in August 2022 said: "The two leaders welcomed the ongoing work to operationalize the usage of Rupay Cards in Maldives and agreed to consider further measures to boost bilateral travel and tourism and economic inter-linkages." Over the last few years, multiple banks and payment companies from across various countries have partnered with NPCI International Payments Ltd (NIPL), the international arm of NPCI, to accept UPI and RuPay in one form or the other. Ever since the pro-China President Mohamed Muizzu assumed power last November, the relations between the Maldives and India have soured. The repatriation of 80 plus Indian military personnel manning three aviation platforms earlier this month from the archipelago nation at his insistence has left a bitter note on bilateral ties. Over the last few years, multiple banks and payment companies from across various countries have partnered with NPCI International Payments Ltd (NIPL), the international arm of NPCI, to accept UPI and RuPay in one form or the other. Ever since the pro-China President Mohamed Muizzu assumed power last November, the relations between the Maldives and India have soured. The repatriation of 80 plus Indian military personnel manning three aviation platforms earlier this month from the archipelago nation at his insistence has left a bitter note on bilateral ties.
Source: The Economic Times
Synopsis Maldives' Economic Development Minister Mohamed Saeed said he met with the Indian High Commissioner Munu Mahawar two weeks ago, who in turn, said that New Delhi would support and cooperate in arranging for the settlement of import payments in Indian Rupee. The Maldives on Wednesday said both India and China have agreed to cooperate in efforts to pay for imports in their respective countries' currency instead of the US dollar, which is likely to help Male save almost 50 per cent of the annual USD 1.5 million imports bill from the two countries. Maldives' Economic Development Minister Mohamed Saeed said he met with the Indian High Commissioner Munu Mahawar two weeks ago, who in turn, said that New Delhi would support and cooperate in arranging for the settlement of import payments in Indian Rupee. Similarly, Saeed said, he received a letter from China's Commerce Ministry, two days ago, in which Beijing provided assurance it will cooperate in allowing the option to settle import payments in Yuan, the Chinese currency, as requested by President Mohamed Muizzu. Annually, Maldives imports goods worth USD 780 million and USD 720 million from India and China respectively, the minister had said in April when he had first announced that the Maldives was discussing with India and China if the island nation can make payments for its imports from the country in Maldivian Rufiyaa. International trade between two countries in local currency is a mutually beneficial mechanism as it helps in saving each other's foreign exchange reserves. Moreover, the move will mark a significant shift away from the dominant use of the US dollar in international transactions. In July 2023, the Government of India declared that Maldives was among the 22 countries that were permitted by the Reserve Bank ofIndia to open Special Rupee Vostro Accounts (SRVAs) as part of efforts to promote bilateraltrade in local currencies. News portal Sun.mv on Wednesday quoted Saeed as speaking with state-run PSM Media: "Maldives imports between USD 600-700 million in commodities from both India and China, each year. Therefore, we import around USD 1.4 billion to USD 1.5 billion in commodities annually, from both markets combined." "We are negotiating with both sides to make arrangements for us so that, for example, for imports from China, the shipping company can bring the invoice and the payment can be settled by converting Maldivian Rufiyaa to their local currency through the banks, instead of US dollar," Saeed said, adding, it will save up to 50 per cent from the annual USD 1.5 million in imports from the two countries. "If we can arrange up to USD 300 million from each country, that means USD 700 million. This means we can eliminate the reliance on US dollars by that amount in the future. That will reduce the demand for dollars. And the future demand for dollars will continue to fall," Saeed was quoted as saying by Sun.mv. Saeed blamed the poor state of finances on the former administration and agreed that challenges persist as foreign countries are still skeptical about the Maldives but "it is slowly improving." The new Maldivian administration has said that the country's economic situation was "alarming", but that the government was implementing strong fiscal reforms to rectify the issue, including stopping printing money. Earlier in April, during campaigning ahead of the parliamentary polls, Saeed had said that if the ruling party was able to secure a majority in Parliament, they would be able to bring "the dollar rate back down to official market values within approximately two years." President Muizzu-led People's National Congress (PNC) secured a clear majority in the 87-member People's Majlis.
Source: The Economic Times
Even as lignite scarcity has choked textile units in Surat over the last few years, around 350 mills in Surat are unlikely to face hassles this monsoon season. The Gujarat Mineral Development Corporation (GMDC) has assured the South Gujarat Textile Processing Association (SGTPA) of ample stocks of the fuel used to fire boilers in textile mills. Amid concerns over the pattern prevailing in the port city, the SGTPA on Wednesday held a meeting with the GMDC. SGTPA chief Jitu Vakhariya and board members, including Vinod Agrawal, among others were in attendance at the meeting. Over 350 textile dyeing and processing units in Surat use lignite from Tadeshwar and imported coal from Indonesia as fuel for the boilers. Sharing more details about the meeting, SGTPA chief Jitu Vakhariya said, “During the monsoon season, the industry faces problems of supply of imported coal, which is too costly and lignite supply also remains an issue. The GMDC takes out lignite from the project at Tadeshwar in Surat. During the rainy season, the mining activity stops. At the meeting today, officials assured that there would not be an issue with lignite supply this year as they have made surplus stock of lignite coal from the mines.” He further added, “We have also demanded the rates of lignite coal should be reduced. The price of imported coal is Rs 6,000 to Rs 7,000 per tonne… and its calorific value is between 5,200 to 5,500 while the price of lignite coal of Tadkeshwar is between Rs 4,000 to Rs 4,500 per tonne, and the calorific value is between 4,000 to 4,200. Generally, the mill owners use a mixture of imported coal and lignite coal.” SGTPA member Vinod Agrawal highlighted, “A dyeing and printing mill requires around 30 to 40 tonnes of lignite coal daily. If the quality of lignite coal is good the quantity of usage goes down.”
Source: Indian Express
Synopsis Singapore and Kazakhstan strengthen economic ties, enhancing India's role as a link between Southeast Asia and Eurasia. Kazakhstan's transport initiatives and Singapore's expertise create new business opportunities. The countries sign agreements to boost trade and investment, with Singapore investing in Kazakhstan's economy. Cooperation focuses on innovation and digitalization for mutual benefit. India’s closest partner in SE Asia -- Singapore and Central Asia’s biggest state Kazakhstan are the leading transit hubs in their regions. This is one of the reasons why the two countries are establishing close economic ties that can stimulate growth and find new business opportunities. This will also boost India’s role as a link country between SE Asia and Eurasia as well as the Chabahar Port where India has gained management rights for 10 years.
Source: The Economic Times
During Türkiye’s Champion Exporters Award Ceremony Istanbul Textile and Apparel Exporter Associations (IHKIB) and Türkiye Exporters Assembly (TIM) chairman Mustafa Gültepe noted apparel exporters continue to face problems with accessing finance. He expects Export Import Bank (Eximbank) to return to its old daily limits so pointed out Türkiye urgently needs support to not completely fall out of the global competition race. He added: “We also need to focus more on efficiency and value-added production. We have experienced various hardships before and managed to come out stronger from all of them. I have no doubt that we will get through this period as well.” Gültepe cited two main reasons for the country’s difficulties in exports. Firstly, global markets have contracted, but, the main problem is high cost increases. He said: “We have become a more expensive country than Europe. Especially in labour-intensive sectors, we have significantly lost our competitiveness.”
Source: Just Style
BGMEA University of Fashion and Technology (BUFT) hosted a pivotal seminar titled “Need of Required Skills to Meet the Challenges of Textile Industry” on Thursday. The event attracted a diverse audience, including industry leaders, academics, and students. Prof Dr SM Mahfuzur Rahman, vice chancellor of BUFT, presided over the seminar, with Md Shafiqur Rahman, president, Institution of Textile Engineers and Technologists (ITET), serving as the chief guest. The keynote address was delivered by Engr Abdus Sobhan, CIP, managing director of Auko-Tex Group. The seminar also featured Engr Mohammad Ashad Hossain, chairman of the Textile Engineering Division at IEB, as the special guest. Prof Dr Engr Ayub Nabi Khan, pro vice chancellor of BUFT, welcomed attendees with an opening speech, while Dr Ranajit Kumar Nag concluded the event with a vote of thanks. The seminar provided a platform for stakeholders to collaboratively address the urgent need for skilled professionals capable of tackling challenges and seizing opportunities in the textile industry, thereby paving the way for a brighter future in this vital sector.
Source: Dhaka Tribune
Azeri-Uzbek textile cooperation will expand into Azerbaijan's liberated territories, the country’s minister of economy Mikayil Jabbarov recently announced. The ‘liberated territories’ are the areas that Azerbaijan regained control over during the 2020 Nagorno-Karabakh war. This conflict, which lasted from late September to November 2020, was between Azerbaijan and the ethnic Armenian forces in Nagorno-Karabakh backed by the Armenian military. These territories include parts of Nagorno-Karabakh itself as well as the surrounding seven districts—Lachin, Kalbajar, Aghdam, Fuzuli, Jabrayil, Zangilan, and Qubadli. Significant progress has been recorded between the two countries in traditional areas like cotton growing and sericulture, and work is under way in Azerbaijan's Imishli district to set up a joint cotton cluster, Jabbarov told the second Azerbaijani-Uzbek Interregional Forum in Guba. The Azerbaijani-Uzbek Investment Company, founded early last year, has a charter capital of $500 million. Its activities focus on promoting mutual investments, trade and overall economic partnership, thereby strengthening economic relations between Azerbaijan and Uzbekistan, Uzbek media outlets reported. Between January and March this year, the bilateral trade turnover between the two sides was worth $142 million.
Source: Fibre2fashion
