The DGFT has sought information from various export bodies on the trade finance eco system in India and related challenges to assess if the government’s interest equalisation scheme for exporters is yielding results and how trade finance can be improved. “The DGFT has been asked by the Finance Ministry to show that the interest equalisation scheme is yielding results. It has asked us for certain details for a study on trade finance it is carrying out. We have already provided those details to the DGFT. Once all export bodies give their submission, a report would be put together,” a representative of a Delhi based export body told business line. The interest equalisation scheme, first implemented in April 2015 for five years, allows exporters of 410 identified products and all exporters from the MSME sector, to get bank credit at a subsidised interest rate determined by the government. The banks are reimbursed by the government for their lower interest earnings. The last extension given to the scheme is set to lapse on June 30 2024. The objective “The objective of the study being carried out by DGFT is to identify the current challenges faced by the institutions across the entire trade finance supply chain. The study is to help the department to assess the key gaps and make necessary recommendations to ensure seamless facilitation of Trade Finance in India,” per an internal document circulated to its members by an export body. According to exporters body FIEO, the interest equalisation scheme has served an important purpose as it has provided much-needed competitiveness to Indian exports, particularly to MSMEs, as the interest costs in India is much above that in competitors’ countries. “We not only want the interest equalisation scheme to continue, we want the rates to be increased to the previous levels and have communicated as much to the DGFT. The rates were reduced when repo rate was brought down to 4.4 per cent. Again, it has increased to 6.5 per cent. That’s why 2 per cent enhancement in subvention should happen,” said Ajay Sahai, DG, FIEO. At present, MSMEs are provided a subvention of 3 per cent and the other eligible sectors 2 per cent. As the interest equalisation scheme is valid till June 30, a decision on its extension is likely to be taken by the new government at the Centre.
Source: The Hindu Business Line
India’s Ministry of Finance has changed the process for disbursing duty drawback to eligible exporters. The new process, which will come into effect on June 5, 2024, will discontinue the present system under which duty drawback claims are processed through the Customs Automated System (CAS), enumerated in a scroll/Computerised Customs Drawback Advice (CCDA), and sent to the authorised bank branch along with a supporting single cheque of the consolidated amount. It is considered that the new process of payment of duty drawback will expedite disbursement. According to a letter issued by the Ministry’s Department of Revenue, the payment of drawback amounts into exporters' accounts post-scroll out will be facilitated through the Public Finance Management System (PFMS). Consequently, the practice of printing the Drawback scroll and issuing a cheque to the authorised banks for the total amount to be disbursed will be discontinued. Now, the authorised officer at each customs location shall process the duty drawback scroll queue. The scrolls generated at different locations will be automatically processed by the CAS for onward transmission to the Central Nodal eDDO. The nominated central nodal eDDO shall forward the consolidated All India Duty Drawback scroll to the nodal ePAO. After approval from the nodal ePAO, duty drawback amounts shall be credited into the exporters' bank accounts linked with PFMS. The jurisdictional principal chief commissioners/chief commissioners shall ensure that the drawback sections functioning under their charge complete the following actions before June 5, 2024. All drawback scrolls generated prior to the said date should be processed, duly sent to the agency banks, and cheques issued for the same.
Source: Fibre2fashion
The Gujarat Chamber of Commerce & Industry (GCCI) is organising the Textile Leadership Conclave 2024, which will take place on June 15, 2024, at Golden Glory Hall, Karnavati Club, Ahmedabad, India. Textile leaders from various companies will share their success journey at the 1-day conclave. Fibre2Fashion is the media partner of the event. The Textile Leadership Conclave aims at providing a platform for in depth discussion and deliberation upon needs and issues of the textile industry. The event highlights include an inauguration ceremony, networking, inspiring talks, startup presentations, and global insights. Additionally, the Start-Up Forum will feature ideas and pitches, fundraising, challenges, opportunities, and mentorship. The event will be followed by a gala dinner. The third edition of the Conclave is supported by The Southern Gujarat Chamber of Commerce and Industry (SGCCI), ASSOCHAM, Maskati Cloth Mahajan, Spinners Association Gujarat and Indian Technical Textile Association. The second edition of the Conclave was held in April last year in Ahmedabad. Bhupendra Patel, the chief minister of Gujarat, was the chief guest at the event, while Darshana Jardosh, Indian minister of state for textiles and railways, was the guest of honour. The speakers at the last year’s Conclave included Kulin Lalbhai, executive director of Arvind Ltd; Santosh Banthia, director of Citizen Umbrella Manufacturers Ltd; Dr. Sharad Saraf, chairman of Technocraft Industries; Sanjay Jain, managing director of TT Ltd, Kushal Shah, a trader from Louis Dreyfus Company (LDC); and Prashant Agrawal, joint managing director, Wazir Advisors Pvt Ltd.
Source: Fibre2fashion
India received the highest foreign direct investment (FDI) from Singapore in 2023-24 even as overseas capital inflows into the country contracted by about 3.5% due to global economic uncertainties, according to the latest government data. Though FDI from Singapore has dipped by 31.55% to $11.77 billion in 2023-24, India has attracted the maximum inflows from that country, the data showed. During the last fiscal, FDI equity inflows decreased from major countries, including Mauritius, Singapore, the U.S., the U.K., UAE, Cayman Islands, Germany, and Cyprus. However, investments increased from the Netherlands and Japan. Since 2018-19, Singapore has been the largest source of such investments for India. In 2017-18, India attracted the maximum FDI from Mauritius. According to experts, after the India-Mauritius tax treaty amendment, Singapore has emerged as the preferred jurisdiction for investment in India. Rumki Majumdar, Economist, Deloitte India, said that as one of the world's prominent financial hubs, Singapore attracts global investors who want to invest in Asia. "Recently, India's initiatives such as amendments by the SEBI to the REIT Regulations 2014 have created new opportunities for Singapore-based investors, which is why India is likely seeing high FDI from Singapore," Ms. Majumdar said. She also hoped that FDI into India would pick up in the latter half of 2024-25. Sanjiv Malhotra, Senior Advisor, Shardul Amarchand Mangaldas & Co, said that Singapore and Mauritius are jurisdictions used by global investors to route their money into developing economies such as India. "While there are many geo-economic and political factors why Singapore has gained more prominence in the recent past, the primary reason for it topping the FDI charts for India is tax," Mr. Malhotra said, adding Singapore has a very competitive domestic tax regime and efficient regulatory set-up. Historically, the double tax avoidance agreement between India and Singapore provided for many beneficial provisions including capital gains exemption in India for investments made from Singapore and even though this provision has been amended, Singapore still is a credible place to create operations with substance to invest further in South-East Asia (including India), he added. Mr. Malhotra added that in 2023-24, India witnessed a drop in FDI primarily due to the global uncertainty on account of the disturbances in the Middle-East and Europe. “Hopefully FDI inflows to India may improve in 2024-25 (from 2023-24) but they may still remain below 2022-23 levels. A stable government post-election surely will help the cause of more FDI into India, but I see the global headwinds to be too strong as of now," he said. Anindya Ghosh, Partner, INDUSLAW, too said that prior to 2016, Mauritius was a preferred jurisdiction for foreign investment in India due to the significant tax advantage it offered as a low-tax jurisdiction for routing investments. However, in 2016, India amended its tax treaty with Mauritius to introduce a source-based taxation regime for capital gains, eliminating the tax advantage and reducing the attractiveness of Mauritius as an investment hub for India. After the India-Mauritius tax treaty amendment, Singapore has emerged as the preferred jurisdiction for foreign investment in India due to various factors, Ms. Ghosh said. She added that many multinational companies have their regional headquarters or holding companies based in Singapore, making it a convenient location for channelling investments into India. She added that global economic conditions, geopolitical tensions, and domestic policy developments may influence the overall FDI inflows in 2024-25. FDI equity inflows in India declined 3.49% to $44.42 billion in 2023-24 as against $46.03 billion in 2022-23. The total FDI — which includes equity inflows, reinvested earnings and other capital — declined marginally by one per cent to $70.95 billion during 2023-24 from $71.35 billion in 2022-23. In 2021-22, the country received the highest ever FDI inflows of $84.83 billion. Sectorally, inflows contracted in services, computer software and hardware, trading, telecommunication, automobile, pharma and chemicals. In contrast, construction (infrastructure) activities, development and power sectors registered a healthy growth in inflows during the period under review. FDI from Mauritius dipped to $7.97 billion in the last fiscal from $6.13 billion in 2022-23. The U.S. is the third largest investor in India in 2023-24 with $4.99 billion foreign investments, though it is down from $6 billion in 2022-23. It was followed by the Netherlands ($4.93 billion), Japan ($3.17 billion), the UAE ($2.9 billion), U.K. ($1.2 billion), Cyprus ($806 million), Germany ($505 million), and Cayman Islands ($342 million). As per the data, Mauritius accounts for 25% of the total FDI which India has received during April 2000 to March 2024 ($171.84 billion), while Singapore's share is 24% ($159.94 billion). The U.S. accounted for 10% of total overseas investments with $65.19 billion during the period. Foreign investments are crucial for India to overhaul its infrastructure such as ports, airports and highways to push growth. FDI also helps improve the country's balance of payments situation and strengthen the rupee value against other global currencies, especially the U.S. dollar.
Source: The Hindu
Ludhiana: Union minister for textiles, commerce and industry, consumer affairs, food and distribution Piyush Goyal on Wednesday said it seemed the governments of and were in a race of who would perform the worst, as he cited the example of a textile park project being scrapped in the state. “There was a proposal for setting up a textile park in Ludhiana, but CM Bhagwant Mann wrote a letter and refused it due to some local issues. In West Bengal, there is a legal dispute over a freight corridor,” he said. The textile park Goyal was talking about is the same project which had been planned in Mattewara. In West Bengal, there is a legal dispute over a freight corridor,” he said. The textile park Goyal was talking about is the same project which had been planned in Mattewara. The project had been shelved due to widespread opposition over concerns of the project causing extensive damage to surrounding forest areas. Though the Punjab govt was supposed to suggest another piece of land, it never did. In an interaction with Ludhiana-based industrialists on Wednesday, which came a day after Union finance minister Nirmala Sitharaman met them, Goyal made a veiled appeal for BJP Ludhiana candidate Ravneet Bittu too, saying that industrialists should come to him in Delhi or send an elected representative to Delhi who can fight for their rights. “I am taking 25 crucial points based on demands of industrialists from here. Hopefully, these will be resolved once Modi 3.0 starts functioning after June 4,” he said.
Source: Times of India
The country's gross GST collections rose to Rs 1.73 trillion in May, growing 10 per cent year on year driven by increased revenues from domestic transactions, the finance ministry said on Saturday. GST collections had touched a record high of Rs 2.10 trillion last month. "The gross Goods and Services Tax (GST) revenue for the month of May 2024 stood at Rs 1.73 trillion," the ministry said in a statement. The 10 per cent year-on-year growth in May collection is driven by a strong increase in revenues from domestic transactions (up 15.3 per cent) amid slowing of imports (down 4.3 per cent). After accounting for refunds, the net GST revenue for May 2024 stood at Rs 1.44 trillion, reflecting a growth of 6.9 per cent compared to the same period last year. The gross GST collections in FY25 till May 2024 stood at Rs 3.83 trillion, which is a 11.3 per cent year-on-year growth, driven by a strong increase in domestic transactions (up 14.2 per cent) and marginal increase in imports (up 1.4 per cent). After accounting for refunds, the net GST revenue in the FY 2024-25 till May 2024 stood at Rs 3.36 trillion, reflecting a growth of 11.6 per cent compared to the same period last year.
Source: Business Standard
SANA'A - The caretaker Minister of Industry and Trade, Mohamed Sharaf Al-Mutahar, was briefed today, Sunday, on the conditions of the textile factory. During the visit, Minister Al-Mutahar supervised the trial operation process after completing maintenance. work. During their visit to the factory’s sections, Minister Al-Mutahar, along with Deputy Minister of Industry Ahmed Al-Shoutari, heard from the Chairman of the Board of Directors of the General Corporation for Textile Industry, Ahmed Al-Mukhathi, an explanation about the maintenance , rehabilitation work of the equipment and the experimental workflow in the sections of receiving local cotton, filtering, spinning, weaving, dyeing, printing and sewing. Minister Al-Mutahar stated that the Ministry of Industry and Trade, and within the framework of implementing the directives of the Revolution Leader , Sayyed Abdul-Malik Badr Al-Din Al-Houthi, and the directives of His Excellency Field Marshal Mahdi Al-Mashat, Head of the Supreme Political Council, pays attention to local industries based on local raw materials in terms of supporting the production process and protecting the local product. He pointed out that this comes within the framework of a gradual strategic plan to shift local industries towards using local raw materials because of this economic importance that contributes to the creation of multiple activities contribute to providing job opportunities that benefit society and the national economy. For his part, the Deputy Minister of Industry stressed the importance of preserving the factory and its equipment and the successes achieved in moving towards a process of regular production and continuous development by benefiting from local technical personnel. He stressed the importance of stimulating local industries so that their products replace imported products.
Source: Saba.ye
To bring systemic, positive change to the textile value chain in Bangladesh, IFC’s Partnership for Cleaner Textile (PaCT) program has catalyzed transformative change over the last 10 years, contributing to the sector’s competitiveness and environmental sustainability. Since the inception of the PaCT program in 2013, IFC has worked with over 450 textile factories in Bangladesh, helping them embrace climate-smart practices. The initiative has substantially reduced fresh-water consumption by 35 billion liters, enough to meet the annual water needs of over 1.9 million people. It has also curbed 723,617 tonnes of carbon emissions per year, equal to removing nearly 160,000 cars from the road annually. An IFC advisory program—supported by the supported by the Government of Denmark and the Kingdom of Netherlands, — PaCT is spearheaded by IFC and implemented in collaboration with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). Over the years, PaCT has been working with leading partners, including VF Corp, PUMA, Levi Strauss & Co, and Tesco. “Let me stress how pleased we are to see that PaCT has become a market leader in both its scale and comprehensiveness of its activities, especially on advisory support for energy efficiency and renewable energy”, said Christian Brix Moller, ambassador of Royal Danish Embassy. “We appreciate the contribution of the PaCT program by IFC over the past decade. We hope that its impact will continue in the coming decades and our industry will grow at a rapid rate while remaining sustainable and safe,” said Miran Ali, vice president, BGMEA. The governments of Denmark and Netherlands have been a long-standing partner of Bangladesh in its journey of making the textile and apparel sector more sustainable. The PaCT program has directly contributed to enabling a positive mindset shift in the Bangladeshi textile industry over the past decade. One of the key achievements has been the launch of Textile Technology Business Centre, all set to become the country’s leading knowledge hub for the textile industry. The next phase of the PaCT program will pivot towards advancing circular practices and decarbonization initiatives to address the industry’s carbon footprint. While sustaining industry competitiveness, this strategic shift aims to foster high-value product manufacturing, facilitate market diversification, and mitigate environmental, social, and corporate governance risks. “As IFC commemorates a decade of impactful collaboration through our PaCT program, we are committed to fostering sustainable growth within Bangladesh’s textile industry. IFC will continue to help the country’s RMG sector ascend the global supply chain and meet the demands of a more modern and greener market. The sector’s resilience is key to increasing exports and supporting market diversification in Bangladesh,” said Martin Holtmann, country manager for Bangladesh, Nepal, and Bhutan, IFC. “As Bangladesh advances to Middle Income status, leveraging economic complexity becomes crucial for sustainable development. The industry's global ties and diverse operations underscore its importance in driving innovation and job creation, powering the country's economy,” said Henri Rachid Sfeir, manager, MAS Asia Upstream & Advisory, IFC.
Source: Dhaka Tribune
Brussels – Through the Global Gateway, the European Union (EU) and its member states seek to contain the impact of sargassum in the Dominican Republic and other Caribbean countries by importing macroalgae as a raw material for the textile industry. The European Commissioner for International Partnerships, Jutta Urpilainen, pointed out that it is a great initiative to turn sargassum “into an economic opportunity” and added that they are talking to governments and private companies to support innovative ideas that take advantage of sargassum, as she considers that its use in the textile industry is only one of its applications. In mid-2023, the European Union, Latin America, and Caribbean Summit were held in Brussels, where an additional financing package of 45 billion euros (USD 48.6 billion) was approved to invest in the entire Caribbean area, particularly in the energy, environmental, and digital sectors, as reported by Summa Magazine.
Source: Dominican Today
China's international trade in goods and services reached a total value of 4.11 trillion yuan (approximately $578.27 billion) in April 2024, marking a 13 per cent year-on-year increase, according to the State Administration of Foreign Exchange. In US dollar terms, China’s export and import values for goods and services stood at $297.4 billion and $281.6 billion, respectively, resulting in a trade surplus of $15.9 billion. Breaking down the figures, the export value of goods was 1.9 trillion yuan, while imports totalled 1.62 trillion yuan, leading to a surplus of 281.5 billion yuan, as per Chinese media reports.
Source: Fibre2fashion
