Synopsis India aims to clock $2 trillion goods and services exports by 2030 amid the Red Sea crisis and two ongoing wars. India aims to clock $2 trillion goods and services exports by 2030 amid the Red Sea crisis and two ongoing wars. Ecommerce exports are growing rapidly and those done through the postal and courier routes are pegged at $1.5 billion. ET looks at the export sector’s budget wishlist and the challenges it faces.
Source: Economic Times
Even as the country marked the seventh anniversary of the implementation of the Goods & Services Tax (GST) on 1 July, eyebrows are being raised over the discontinuation of the release of monthly tax collection data by the Centre. The union Ministry of Finance has been issuing a formal statement on the first day of every month providing a comprehensive overview of GST collections. The most recent data release hosted on the Press Information Bureau website for GST collections in the month of May was released on June 1. For June, GST collections stand at Rs 1.74 lakh crore. This data was not shared in a formal press release but provided to reporters informally. Henceforth, only the gross total collections amount will be released, sources said. No reasons have been formally given for the move that comes just weeks ahead of the first budget of the third term of Prime Minister Narendra Modi led NDA government. Rising prices and slowing consumption have led to demands for tax relief including the high levies of GST on many services including health insurance among others. Gross collections of GST have risen significantly over the years. As per the last release on June 1, gross GST collections in the first two months of the current financial year stood at Rs 3.83 lakh crore. “This represents an impressive 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 till May 2024 stood at Rs 3.36 lakh crore, reflecting a growth of 11.6 per cent compared to the same period last year”, the release said. Earlier, the detailed data release provided a breakdown of monthly collections for central Goods and Services Tax, state Goods and Services Tax, integrated Goods and Services Tax, as well as cess collection data. Until May, the ministry had also shared key highlights of the monthly inter-governmental settlement, highlighting the total central and state revenue. Also shared were two charts explaining the trends in gross GST revenues with state-wise figures and a comparison to the collections from the year earlier. Discontinuing the monthly GST data release means that now if the state-wise GST data breakup is to be released, it will only happen if the states are willing to disclose it. Not too long ago, former Chief Economic Adviser Arvind Subramanian raised concerns regarding India’s GST numbers on social media platform X. He said the focus should be on revenues, net of refunds, and not on headline collections Unless revisited, from now on, the data is likely to mostly have headline figures such as gross GST collections per month and annual. Details of monthly IGST settlement between the centre and states may also be disseminated, the sources added.
Source: Business Today
The expiration of Gujarat’s textile policy has left the industry in a state of uncertainty, with no new policy announcement in sight. The state govt was expected to unveil a new policy before the Vibrant Gujarat Global Summit in Jan this year, but the announcement was delayed. Sources indicate that there has been no significant progress since the draft policy was prepared last year. The last VGGS saw MoUs worth Rs 11,900 crore, with an employment projection of 2.43 lakh, all of which are now on hold pending the new policy. The prolonged delay has stalled approximately Rs 2,000 crore worth of projects planned even before the VGGS. This policy vacuum has prompted several companies to consider investing in other states with more attractive benefits. Top sources in the govt revealed that the chief minister recently held a meeting to address the issue ahead of the Lok Sabha election. The industries and finance departments were asked to resolve issues related to attracting new investments and the potential financial burden of policy incentives. Despite this, no concrete progress has been made, and the policy announcement may take another two to six months. Rahul Shah, co-chairman of the textile task force at the Gujarat Chamber of Commerce and Industry (GCCI), expressed deep concern over the delay. “Gujarat has long been the textile hub of the country, drawing substantial investments due to favourable policies, especially between 2012 and 2017. The unprecedented delay in announcing a new policy since the last one expired in Dec 2023 has left the industry in a state of limbo. We estimate that around Rs 2,000 crore in investments are on hold, awaiting the new policy,” said Shah. Meanwhile, states like Telangana, Maharashtra, and Madhya Pradesh are offering significant incentives, leading some major Gujarat-based companies to invest elsewhere, Shah added. “We urgently need the govt to act swiftly to maintain Gujarat’s competitive edge in the textile sector. A robust policy framework is essential to attract investments and ensure sustainable growth,” he further added. Shah stressed that a competitive policy is crucial for Gujarat-based manufacturers to remain viable against companies in other states, given the tight margins in the textile industry. Saurav Jalan, a textile manufacturer, echoed Shah’s concerns. “The delay in policy announcement has severely impacted our ability to operate and expand. Without a clear policy framework, investor confidence is dwindling, leading to job losses and stalled economic growth,” Jalan said.
Source: Economic Times
Synopsis Sanjay Malhotra's panel progresses GSTAT selection with an advanced appeals portal. Mishra heads GSTAT amid delays, critiqued by Mathews. GST Council sets time and monetary limits for cases, enhancing tribunal functionality. New Delhi: A panel headed by revenue secretary Sanjay Malhotra will initiate the process of selection and appointment of judicial and technical members for the Goods and Services Tax Appellate Tribunal (GSTAT) after the presentation of the budget, officials said. The central government is aiming to make the tribunal functional by the end of November and has already initiated the process of shifting anti-profiteering cases to the GSTAT principal bench from the Competition Commission of India (CCI). "We are putting all efforts to make the principal bench operational by the end of November and the process of selection and appointment will start immediately after the budget," a senior government official told ET. Separately, a technical team is working on a dedicated online portal for electronic filing of appeals, officials said, adding that the portal will be ready by September. The Centre had notified the 31-bench GSTAT with one principal bench in Delhi last September. However, the process of selection was delayed. In May, the Centre appointed retired Justice Sanjaya Kumar Mishra as president of GSTAT. The finance ministry has issued vacancy circulars for 63 judicial members and 33 technical members for the Centre and states together and has invited applications for the appointment of group B and group C employees. The GST Council in its 53rd meeting on June 22 decided to provide three-months time for filing appeals before the GST Appellate Tribunal beyond the earlier deadline of August 5 and also approved to fix a monetary limit of ₹20 lakh for cases to be handled by the GSTAT. Experts say a fully functional tribunal will be a big reform. "The tribunal has been quite delayed and it is hurting both government revenues and businesses," said Shashi Mathews, partner, IndusLaw.
Source: Economic Times
Synopsis The UNCTAD nowcast predicts a stronger positive trend for the second quarter of 2024, projecting an approximate 2% increase for the first half of 2024. This increase is expected to add around $250 billion to goods trade and about $100 billion to services trade in the first half of 2024 compared to the second half of 2023. India’s trade dependence on China and the EU increased in the first quarter of 2024 while it reduced on Saudi Arabia, the United Nations Trade and Development (UNCTAD) said Tuesday. In its Global Trade Update, it said that the global trade trends have turned positive and global trade growth was driven by increased exports from China, India, and the US, while Europe and Africa disappointed. As per the report, India’s trade dependence on the EU and China increased 1% and 1.2%, respectively while that on Saudi Arabia fell 0.5% in the quarter.
Source: Economic Times
Synopsis India has launched an anti-dumping probe into Chinese lift guide rails. The move comes after a complaint from a domestic company, and aims to safeguard local industry from low-cost imports. The investigation, led by the Directorate General of Trade Remedies, targets 'T-Shaped Elevator/Lift Guide Rails and Counterweight Guide Rails.' If proven, anti-dumping duties may be imposed by the finance ministry to protect domestic players in accordance with WTO regulations. India has initiated an anti-dumping probe into the import of Chinese lift guide rails following a complaint by a domestic player. The duty is aimed at protecting the domestic industry from cheap imports. The commerce ministry's investigation arm Directorate General of Trade Remedies (DGTR) is probing the alleged dumping of 'T-Shaped Elevator/Lift Guide Rails and Counterweight Guide Rails' from China. Savera India Riding Systems Company has filed an application for the initiation of an anti-dumping investigation on the imports of this product from China The applicant has alleged that material injury is being caused to the domestic industry due to the alleged dumped imports and has requested for the imposition of anti-dumping duties. "On the basis of the duly substantiated written application submitted by the domestic industry and having reached satisfaction based on the prima facie evidence submitted by the industry concerning the dumping of the product. The Authority, hereby, initiates an anti-dumping investigation," the DGTR has said in a notification. If it is established that the dumping has caused material injury to domestic players, the DGTR would recommend the imposition of anti-dumping duty on these imports. The finance ministry takes the final decision to impose duties. Anti-dumping probes are conducted by countries to determine whether domestic industries have been hurt because of a surge in cheap imports. As a countermeasure, they impose these duties under the multilateral regime of the Geneva-based World Trade Organization (WTO). The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producer’s vis-a-vis foreign producers and exporters. India has already imposed anti-dumping duty on several products to tackle cheap imports from various countries, including China.
Source: Economic Times
ITAMMA organized Seminar on “Road map for manufacturing machines and components for technical textiles - with b2b interactions - an initiative of ITAMMA Technology Cell ” and enrolled good number of new members during “Texfair 2024” from 21-24 th June 24 at Coimbatore. Mr Bhavesh Patel in his felicitation speech said that “The market for Indian textiles and apparel is projected to grow to reach US$ 350 billion by 2030 and exports expected to reach US$ 100 billion. In 2022-23, the production of fibre in India stood at 2.15 million tones, yarn stood at 5,185 million kgs, whereby Natural fibres being backbone of the Indian textile industry, expected to grow from US$ 138 billion to US$ 195 billion by 2025. Considering the above huge potential for Indian Textile Industry which is a good sign, thus increasing the demand for relevant textile machines and components whereby such exhibition is a good platform, connecting Supply and User Industry to understand their problems and demands for future business growth.” 14th edition of SIMA Texfair 2024 had an overwhelming response, with 240 Exhibitors and over 60,000 visitors and understood that the business recorded was around Rs.1000 crores. ITAMMA, being closely associated with SIMA, supporting its each Texfair series since decades was offered a stall no. D 112-A to execute our services and activities to the visitors. Considering ease of doing business, environment during Texfair’24, we interacted with more than 75 exhibitors and invited them to be our member. Mr Bhavesh Patel, President, ITAMMA delivered his felicitation speech and joined Lamp lighting and Souvenir release celebrations during inaugural ceremony of Texfair 24. Mr Ganapathi Rajkumar, Member of Parliament was the Chief Guest. Mr Bhavesh Patel in his welcome speech said that “Today, Technical textiles is considered as the sunrise industry whereby India is the 5th largest market in the world, as the Exports for 247 technical textile items stood at Rs. 5,946 crore (US$ 715.48 million) between AprilJune (2023-24); and so Govt. of India has also extended its support through various dynamic schemes. Accordingly we have taken initiatives by forming a Technology Cell of Industry Experts & Textile Research Institutes and Associations to help our member companies to transform into Technical Textile field. A Seminar on “Road map for manufacturing machines and components for technical textiles - with b2b interactions - an initiative of ITAMMA Technology Cell ” was organized inviting the stalwart as guest speaker Mr Sudarsan Rajagopalan, A Textile Engineer (B.Text Engr) from MS University, Baroda (1991), Post Graduation in Management studies (MBA) from Bharathiar University (1998) and a drop out of PhD (2014) with a specialization on Strategic Management. in the field of medical textiles for his technical presentations on the subject. Mr Sudarsan Rajagopalan, presented as below: They say that the sale is made in the first seconds of any conversation. To the topic “Road for manufacturing machines and components for Technical Textiles” the direct answer on its potency was a “Definite Yes”. The evening was only to discuss beyond the known and rhetoric about Technical Textiles. The meeting was intended to build confidence, motivation and clarity while taking a step forward. He tried to look beyond the known and rhetoric stratification viz. Autotex, Meditex, Agritex etc. He forecasted the concept of high-value and high-volume and the criticality associated with it. He also conservatively computed the quantum of its value while orienting the thinking to that abundance. Sudarsan Rajagopalan presentation was a slice of his experiments in Technical Textiles. He tried to keep his presentation deliberately away from what was available on the internet. He has been an advocate of Technical Textiles for decades. His oration only scoped that the potential was immense. However, one has to set his own plate from the buffet service. Traditionally, the supplies of textile machines, the investors of those machines, the producer of yarn or fabric, the finishing, garment or Made-up converters or even the retailers; all are hail from the same “Textile” Industry. However, in Technical Textiles the customers will be from a totally different industry. Their language, their terminology, would have to be adopted. One has to self-equip with the knowledge, alternatively heir personnel or team up with competent resources and communicate with the end user to understand their needs. A JV with companies within the Indian union states could be a new order of collaboration. International association beyond just advance countries can be a new dimension to look at while sourcing elements or technology. Getting out of the cosy space can make exponential earning. The liability one’s produce does not end at the gate of the manufacturer but will have to be extended to the domain of its usage. Communicating with the ultimate customeris a new talent to be acquired. Channel partners and the team has to be secured with good MOU and NCNDA (non-circumventing, nondisclosures) agreements. Patents make countries powerful. Textile needs to patent its own innovations when it is relatively easy now. We must inspire ourselves from our own Vaccine Story as we are challenged to fly where eagles dare. Technical Textiles is a performance-oriented execution and it will have some Empirical Values (EV) to be attained with dexterity. Benchmarking quality, compliance to standards and patenting has to be a collateral objective while making a sustainable business model. Textiles has accrued great & deep vocabulary over eons and it has to draft a sensible sentence for the customer (across the domain) in a simple act of Transduction.(Like DC to AC current conversion, translating the Textile Terminology to the domain of usage and vice versa). The speaker pronounced that “Testing may be Expensive but No-Testing is even more Expensive in Technical Textiles”. Rolled goods need converter. Converters spread the products, get market access and provides for the last mile reach of the services. More rolled goods investment will arrive with more converters and market access. The converter and a trader has to be a parallel path. They should not be confused. Converters are capable of customizing to the customers’ needs; which may not be possible by the roll goods manufacture at all times with the volume or customization specifics. Converters` can involve into MASSCUSTOMISATION. The synergy of convertor, rolled goods manufacturer, customer, research agencies, and government could be a big-bang theory. Entrepreneurs provide the opportunity to reduce cost, introduce innovation and provide value. He seeks a good sustainable investment. Technical Textiles offers the objective strategically. For tactically benefits his access to technology, knowledge and machines should be a simple possibility. His present machines or tools are sometimes cross-industry supply borrowed from leather or traditional garments (Sewing machine); which are just make shift. He desires more innovations by the machine & equipment suppliers that suites his needs. If Gaganyan is to put the man in space, who is making the composite fabric and stitching the space suite? The speaker suggested that ITAMMA needs to synergise the opportunity with the machine manufacturers to create SPVs and look up the NTTM (National Technical Textile Mission) scheme to develop local machines and tools/ equipment for opportunities that opens with Technical Textiles as a whole. It would take the supplies to the domestic and the world too. The Technical Textiles uses synthetic in excess. The synthetics are hydrocarbons and a source of energy. Textiles industry has many systems for reuse or recycle of its wastage coming out of the production process. However, textiles disposed after usage has challenged environments. Flexible textiles are an enigma to the recycling operator and most of them land in sea beds. Machines to segregate shred and process are not-well accomplished in the disposal process. Besides the mechanical shredding and processing, the elementary configuration of the product has to be understood as they can become a rogue during the thermodynamic disposal cycle. It would mean either avoid those elements that pollute or take care of them in the process of disposal so that they avert a pollution. These Waste to energy needs a proper machine for flexible textile machine. The speaker also explained the pollution process and also highlighted that disposal cycle also needs machines for processing flexible textile. About 4 ITAMMA Members registered for b2b sessions and interacted across the table with the guest speaker for the road –map for exploring Technology and Business CITI-NEWS LETTER 19 19 opportunities for them in Technical Textiles either starting a new Start-up OR modifying their present business set-up for the manufacturing of Technical Textiles Taking forward the above initiatives under ‘ITAMMA Technology Cell’ we will be forming “Member-Group for Technical Textile Project” under different fields/applications of Technical Textiles. Accordingly inviting related Industry Experts of that field for rendering guidance /consultancy/handling turnkey projects for the members of these groups.
Source: Fibre2fashion
Texworld Evolution Paris kicked off at the Paris Porte de Versailles on July 2 and welcoming huge number professional buyers from the fashion industry which are coming to meet the international textile and finished products manufactures. The comprehensive textile and apparel lineup is being showcased over three days in Paris, including Texworld, Apparel Sourcing, Avantex for innovative fashion solutions, and Leatherworld covering the entire leather industry, and hosting nearly 1,200 exhibitors from 26 countries. Ambassador Asim Iftikhar Ahmad inaugurated the Pakistan Pavilion at Texworld Evolution in Paris, France, showcasing attractive textile products from 12 Pakistani exhibitors enthusiastic to work with international customers. The Texworld Evolution Paris will continue till July 03, 2024, said a press release issued on Monday. Trade Development Authority of Pakistan and Embassy’s Trade & Investment Section aim to project country’s prowess in textile world & open new vistas of growth and development by facilitating B2B contacts with potential clientèle.
Source: Ary News
Business leaders have responded differently to the Government’s decision to reduce export incentives in almost all industries for the current fiscal year. The administration supports the action, claiming that the export subsidies will be completely removed after the country passes the least developed country (LDC) classification in 2026.
The measure is also intended to reduce pressure on state spending following IMF guidelines, as well as to encourage exporters to increase their capacity to compete globally. Mohammad Hatem, the executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), was reportedly upset.According to him, the move will have an impact on the country’s clothing industry, which is a major source of export revenue.“The garment sector is now in ICU. If proper treatment is not given, it will soon be put on life support,” said Hatem in opposing the step. He believes that eliminating export incentives right now is strangling the sector.However, Mahbubul Alam, president of the FBCCI, has a slightly different viewpoint. Speaking to local media, he said the Government had reduced export subsidies to encourage exporters to compete with global competition. However, to increase capacity, the domestic industry requires both regulatory and incentive support from the state.This judgment will have an impact on certain sectors, he said, but the Government may address it in other ways. He did, however, note that many local industries are dealing with increasing mortgage rates and power bills, which are driving up production costs. From 1st July 2024, the maximum rate of export incentive has been set at 10 per cent and the minimum at 0.3 per cent, said the Bangladesh Bank in a notice on 30th June. The cash assistance on the export earnings of apparel makers in all markets has been halved to 0.30 per cent from 0.50 per cent. The cash subsidy for venturing into new markets has been reduced to 2.0 per cent from 3.0 per cent. The lower export incentive will apply to a variety of sectors, including jute and jute items, leather and leather products, frozen fish, and agricultural products. Until June 30, it was 15 per cent. Before February of this year, they received 20 per cent incentives. However, the Government has offered a 6.0 per cent tariff on crust leather exports. Currently, 43 sectors are eligible for funding, with the Government investing approximately Taka 90.25 billion yearly over the last three years.
Source: Apparel Resource
ISLAMABAD: The exports from the country witnessed an increase of 10.54 percent during the fiscal year 2023-24 as compared to the corresponding period of last year 2022-23, the Pakistan Bureau of Statistics (PBS) reported. The exports during July-June (2023-24) were recorded at $30.645 billion against the exports of $27.724 billion, according to latest PBS data. On the other hand, imports into the country declined by 0.84 percent to $54.734 billion this year against the imports of $55.198 billion last year. Based on the figures, the trade deficit during the current fiscal year under review was recorded at $24.089 billion against the deficit of $27.474 billion last year, showing a decline of 12.32 percent. Meanwhile, on a year-on-year basis, the exports from the country increased by 7.34 percent in June 2024 compared to the exports of the same month of last year. The exports during the month were recorded at $2.529 billion as against the exports of $2.356 billion in June 2023. On the other hand, the imports during June 2024 were recorded at $4.919 billion compared to the imports of $4.189 billion in June 2023, showing an increase of 17.43 percent, according to the data. On a month-on-month basis, the exports from the country decreased by 10.92 percent when compared to the exports of $2.839 billion during May 2024.The imports into the witnessed a nominal increase of 0.08 percent when compared to the imports of $4.915 billion in May 2024, PBS reported.
Source: Ary News
ISLAMABAD: The All Pakistan Textile Mills Association (APTMA) has urged the federal government to renegotiate existing power purchase agreements (PPAs) with Independent Power Producers (IPPs) installed under the 2015 power policy and shift towards more economical electricity sources free of capacity charges. Talking to media here on Wednesday, the APTMA chairman emphasized that the prevailing exorbitant electricity tariffs severely impacted industrial operations, resulting in numerous closures and widespread job losses, thus hampering the economic growth. He highlighted that Pakistan’s installed generation capacity exceeded 40,000 MW, while the peak demand and transmission capacity stood at only 25,000 MW. This discrepancy has led to significant excess and underutilized generation capacity. Despite this, the government is obligated to make Rs 2 trillion in capacity payments to 40 IPP companies annually, a burden that stifles economic activities as these payments are made even when no electricity is generated or supplied.
He said it was evident that the capacity charges constituted two-thirds of the total cost, with the remaining one-third attributed to fuel costs. Investigations have shown that IPPs have been enjoying returns exceeding 73% in dollar terms, a figure unusually high compared to international standards. These problematic contractual arrangements, stemming from the 1994 Power Policy, have led to an escalating circular debt, which reached Rs 2.64 trillion in February 2024. Furthermore, he pointed out that the guarantees indexed to the US dollar meant that any depreciation of the Pakistani rupee increased returns for IPPs, adding further financial strain on the government and public. He noted that the initial return on equity for IPPs was set at 18% and later reduced to 12% in the 2002 Power Policy, which remained high compared to global norms. Comparisons with similar projects in other countries suggest that many IPPs were funded through inflated invoicing on capital goods, leading to perpetual returns on ghost equity. He remarked that the tariff for coal-based plants in Pakistan was 9 cents, significantly higher than the 5.6 cents for similar plants in Bangladesh. In the FY25 power purchase price, imported coal-based plants have the highest capacity charge of Rs 60.48/kWh compared to Rs 26.01/kWh for the second-highest capacity charge among all thermal generation. He mentioned that misreporting and overbilling by IPPs were common as tariffs were guaranteed under take-or-pay contracts protected by the international law. He asserted that the actual oil consumption of several oil-based plants was less than billed and attempts to audit discrepancies were often obstructed through legal means. Operation and maintenance costs are also overstated, with actual expenses billed at significantly higher rates. He warned that the recent surge in electricity rates threatened to trigger civil unrest and discontent among the business community and a comprehensive review of IPP agreements, price re-evaluation within legal bounds, and improved oversight to prevent over-invoicing are essential to prevent a complete economic collapse and social chaos. Examining the energy infrastructure for clauses related to misinformation and fraud is crucial. The federal government must devise a strategy to address IPP issues and ensure affordable electricity prices for the industry in the national interest.
Source: International News
