Commerce and Industry Minister Piyush Goyal is set to travel to Switzerland on Sunday to meet investors, in line with the $100-billion investment commitment under the IndiaEuropean Free Trade Association (EFTA) trade deal signed earlier this year. The minister’s visit will also see discussions on ratification of the trade deal by both sides. EFTA nations comprise Iceland, Switzerland, Norway, and Liechtenstein. The trade agreement between EFTA and India was signed in March after 16 years of negotiations, involving 21 rounds. Under the trade agreement, EFTA nations have made an investment commitment of $50 billion within 10 years and an additional $50 billion in the next five years. For the foreign direct investment (FDI) to materialise, India’s nominal gross domestic product (GDP) needs to grow around 9.5 per cent in dollar terms over the next 15 years. “Sunday’s agenda will involve industry interaction…to see what we can do to kick-start investments. This is because $100 billion can't happen overnight,” Goyal said at an industry event organised by the Federation of Indian Chambers of Commerce & Industry (Ficci) on Wednesday. The meeting is likely to see the presence of the industry, mostly from Switzerland. Though investment will flow from private players, the governments of EFTA countries will only nudge them to invest.
Source: Business Standard
Union Minister of Commerce and Industry, Shri Piyush Goyal during his address at the FICCI’s National Executive Committee Meeting in New Delhi today praised Prime Minister, Shri Narendra Modi’s achievement on being conferred the ‘Order of St Andrew the Apostle’, the highest civilian award in Russia. Shri Goyal said that this clearly demonstrates how India has been able to navigate international relations with dexterity. The Minister asked the industry to work with the government to take India-Russia bilateral trade to $100 bn by 2030. Shri Goyal said that he will be visiting Switzerland to work towards US$100 billion foreign direct investment (FDI) goal under the recently signed India-EFTA Trade & Economic Partnership Agreement. Shri Goyal stressed that this commitment is a purely FDI commitment and does not cover foreign portfolio investment. He expressed his hope to see that the EFTA agreement on the FDI commitment can be exceeded with a collective effort from the Indian industry in building partnerships. Shri Piyush Goyal said that alongside rapid growth of the industry the Government is deeply committed to a $2 trillion export target by 2030. “It's doable, it’s achievable. We have the right building blocks in place, we have the strong macroeconomics to support us. The country’s currency is stable and outperformed most other emerging markets”, said Shri Goyal. He said that with a stable government, stable markets, a stable economy and a resurgence in the collective energy, the country is being valued as a bright spot in the global economy at most global fora. The Minister stated that more than 1 lakh patents have been registered in the last one year, exhibiting a significant growth in patents registration since 2014. He also pointed out that the Government is committed to invest in innovation and R&D in its third term. He further said that linked with Indian competitive standards are quality standards and quality control orders that will enable India to be cost competitive and help the Government stop inferior products from entering the Indian market. The Minister said that the government under Prime Minister, Shri Narendra Modi, in its third term is committed to bring three times more speed, three times more work and thrice the more results to make India the third largest economy in the world. Shri Goyal asserted that the government is deeply committed to persevere on the task of calibrated reforms that will help grow the Indian economy alongside increasing the income levels of the citizens. The Minister further elaborated that a massive infrastructure push is on the anvil to provide citizens with basic amenities such as improved road and railway connectivity, electricity, piped gas connection, water connectivity for each home through Jal Jeevan Mission for the next five years. Shri Goyal emphasised that faster rollout of infrastructure deeply resonates with the needs of the industry as it has a multiplier impact on employment, economy and the consumption of various goods and services. Elaborating further, he said that the infrastructure push has a long-term impact on the India economy in terms of nimbleness in manufacturing and logistics but moreover it will help the Government bring a delicate balance in the society by enhancing the quality of life to the lesser-privileged sections, a vision PM Modi has been working for the last ten years. The Minister said that expansion of healthcare of senior citizens above 70 years, success of Jal Jeevan Mission, three crore free homes under the Pradhan Mantri Awas Yojana coupled with the efforts of in-situ rehabilitation of slums in the urban areas are a part of the Government’s agenda during this term. Shri Goyal asserted that these basic amenities coupled with job opportunities or entrepreneurship coming out of the rapidly growing Startup India Initiative and investments in manufacturing will make India the third largest economy of the world soon. He stated that the government is trying to make the Indian investment journey easier through reduction of compliance burden, decriminalisation of laws through Jan Vishwas Act and other such measures to enhance ease of doing business. Shri Goyal urged the industry to be more proactive and engage with the government to bring the hurdles being faced by the stakeholders to the forefront and combat corruption. Citing PM Modi’s ‘Ek Ped Maa Ke Naam’ campaign, Shri Goyal said that the Government is committed to promote sustainability and urged attendees to plant trees. The Minister further spoke on how bamboo has a tremendous impact on sustainability as it can produce oxygen and is also a carbon sink. He encouraged the participants to look into practical initiatives that will help reduce plastic usage and urged the industry to partner in the effort to take this movement to the last man in the country.
Source: PIB
The Odisha government on Wednesday approved 26 investment projects worth Rs 5,992.92 crore, which are expected to create employment for more than 19,000 persons, an official statement said. The State Level Single Window Clearance Authority (SLSWCA) led by Chief Secretary Manoj Ahuja has approved a series of projects across diverse sectors including steel, chemicals, renewable energy, textiles, manufacturing, packaging, food processing, IT, infrastructure, and tourism, it said. These projects will be implemented in 14 districts including Mayurbhanj, Sundargarh, Sambalpur, Kendujhar, Ganjam, Jagatsinghpur, Khurda, Jharsuguda, Boudh, Koraput, Balasore, Cuttack, Bhadrak, and Puri. According to the statement, the state government has approved the proposal of GM Iron and Steel Company Limited to establish a 0.23 million tonne per annum (MTPA) integrated steel plant along with downstream and upstream facilities and a 45 MW captive power plant in Mayurbhanj district with an investment of Rs 745 crore. The proposal of Shyamshakti Metals Pvt Ltd to establish a structural and pipe manufacturing unit in Rengali, Sambalpur, with an investment of Rs 650 crore also got the approval of the government. Similarly, Shree Ganesh Metaliks Limited has proposed to expand its integrated steel plant in Sundargarh with a projected cost of Rs 604.99 crore, which was also approved by the SLSWCA. Among other steel projects, the government has approved the proposal of Bhaskar Steel and Ferro Alloy Pvt Ltd (Rs 530 crore), Times Steel And Power Pvt Ltd (Rs 432.50 crore), Aryan Ispat and Power Pvt Ltd (Rs 323 crore), and SSAB Energy and Minerals Ltd (Rs 212 crore). In the chemical sector, the government has approved the investment projects of Eternis Fine Chemicals Ltd (Rs 300 crore), Odisha Chemtech Pvt Ltd (Rs 149.45 crore), and Indian Explosives Pvt Ltd (Rs 54.60 crore). In the renewable energy sector, Envirocare Infrasolution Private Limited has promised to up a 100 MW ground-mounted solar photovoltaic captive power plant in Boudh, with an investment of Rs 351.00 crore while Solisys Solar Pvt Ltd will invest Rs 59.50 crore to establish a manufacturing facility for solar modules in Khurda, the statement said.
Source: Business Standard
As per official data on Niryat Portal, the export of readymade garments, cotton yarn and fabrics for the period between October 2023 to May 2024 stood at $17.9 billion compared to $ 17.5 billion for the same period in the previous year, bucking a declining trend. A rapid increase in the export of cotton yarn due to comparatively lower domestic prices of raw cotton, and a marginal increase in textile demand from the US and European markets have led to a moderate revival of the country’s labour-intensive textile industry, which has remained at a low ebb since the pandemic.As per official data on Niryat Portal, the export of readymade garments, cotton yarn and fabrics for the period between October 2023 to May 2024 stood at $17.9 billion compared to $ 17.5 billion for the same period in the previous year, bucking a declining trend. Yarn exports between during witnessed a growth of 51% in volume terms. However, industry observers and experts caution that the green shoots of recovery would not be sustainable if not backed by policy support. “The demand is still below the pre-Covid level. Also, cotton prices have spurted in recent weeks, neutralising the price benefit for textile manufacturers,” said an industry observer. Bharat Boghra, Chairman, Spinners Association (Gujarat) (SAG), told FE, “India’s cotton production for this year is better compared to that in the US and Brazil. This combined with lower prices of Indian cotton compared to the international prices, have resulted in a strong demand for Indian cotton.” He however struck a cautionary note. “With no end to the geo-political crises in the near future, consumers are getting used to the prevailing situation which is reflected in the slight increase in international demand. But this is the short-term trend and the importers in Europe and US are still not maintaining inventories. This trend has reduced the order book cycle for the manufacturers to three months against that of a six-month order book cycle previously.” Ramakrishnan M, Managing Director, Primus Partners, said, “The textile industry is showing some signs of recovery now. Domestic demand has been steady and is expected to remain so. E-commerce penetration is expanding in tier 2 and tier 3 areas, and the quick or impulse purchases are driving higher sales”. “But the international unrest, increased cost of production (majorly due to 40% to 50% increase in freight charges) combined with global inflationary trends and muted consumer confidence in the economic growth are also impacting the industry. This is why we expect the global demand to remain flat at best or go down slightly”, added Ramakrishnan. Bhavin Parikh, MD & CEO, Globe Textiles India, a Gujarat based textile firm catering to global and domestic markets, said, “China+1 policy along with behavioural changes in consumption are helping the textile industry to revive. But stagnant order book cycle of around three months reflects industry’s lack of confidence in global economic growth prospects.”
It may be recalled that newly appointed Textile Minister Giriraj Singh had recently announced that the government is considering the inclusion of garments in the PLI Scheme for the Textile sector and the revival of SITP (Scheme for Integrated Textile Parks). He also set the target of $ 50 billion worth of shipments from the textile industry for this year.
Source: Financial Express
Textile Stocks: The story of India’s textile industry is often overshadowed by flashier sectors. But have you ever wondered how this industry quietly leaves a lasting impact on every stitch of its progress? Their impact goes far beyond aesthetics. They provide a rich cultural heritage and act as a backbone for millions of people. The textile industry empowers rural communities and provides employment opportunities for countless individuals. They also act as a potential driver for economic growth by powering exports to attract foreign investments and significantly contributing to the nation’s GDP. As the world moves towards innovation this industry also embraces it and focuses on sustainability for a brighter future.
Textile Industry Overview
India’s textile industry is one of the most diverse and oldest sectors in the country’s economy, with a rich history spanning centuries. It encompasses a wide range of activities, from traditional hand-spun and hand-woven textiles to modern, capital-intensive mill operations The industry’s strength lies in its robust production base, which includes both natural fibres like cotton, jute, silk, and wool, as well as synthetic and man-made fibres such as polyester, viscose, nylon, and acrylic. The textile sector plays a crucial role in India’s economy, contributing 2.3% to the country’s GDP, 12% to exports and13% to industrial production. During the period of 2018 to 2023 the Indian textile industry saw a decline of 11.69% from $16.24 billion to $14.34 billion. In order to revive, the government has planned to adjust its Production Linked Incentive (PLI) scheme to include product lines like Innerwear and t-shirts. The industry also wants to make the scheme more accessible by concentrating on the labor intensive apparel sector. Many companies are also advocating for lower initial capital requirements and focusing on creating demand for large mills through apparel factories. It is projected to double its GDP contribution to 5% by the end of this decade. The market for Indian textiles and apparel is expected to grow at a 10% CAGR, reaching US$ 350 billion by 2030. India ranks as the world’s third-largest exporter of textiles and clothing, with exports anticipated to hit US$ 100 billion. The industry employs around 4.5 crore workers, including 35.22 lakh handloom workers, making it a significant source of employment. The government has introduced various schemes to attract private equity and boost employment, such as the Scheme for Integrated Textile Parks (SITP), Technology Upgradation Fund Scheme (TUFS), and Mega Integrated Textile Region and Apparel (MITRA) Park scheme. India’s position in the global textile market is strong, with the country being the world’s largest producer of cotton. The technical textile sector, including medical textiles and composites, shows promising growth potential. The government has also taken steps to promote the industry through initiatives like the National Technical Textiles Mission and allowing 100% FDI under the automatic route. List Of Textile Stocks Raymond Raymond was incorporated in 1925, it acts as a predominant player in the textile and apparel industry by manufacturing a wide range of readymade garments and fabrics. They sell their products through their extensive retail network and also export to international markets. Raymond’s plans Raymond plans to expand its Ethnix retail brand to over 200 stores by 2025. With a mix of 25% company-owned stores and 75% being operated under franchises. The company wants to invest Rs 200 crores in garmenting capex with plans of becoming the 3rd largest suit maker in the world. For the next two years, Raymond targets to achieve 18-20% annual growth in presales for their lifestyle business
Conclusion : The future of the Textile industry in India shimmers with promise. Backed by Government initiatives and embracing innovation, the industry can weave a path towards robust growth. Collaborations between textile leaders, research institutions and artisans may lead to creating a unique identity for Indian textiles in the global market. Addressing the challenges like infrastructure bottlenecks, environmental concerns and skill gaps ensures the Indian industry to scale up and position it as a global powerhouse. What would you say about the revival of the textile industry in India will it become a Global leader as it was before? Do let us know in the comments below.
Source: Trade Brains
As micro, small and medium enterprises (MSMEs) contribute around 45 per cent of India’s exports and nearly 40 per cent of manufacturing gross value added (GVA), the State Bank of India (SBI) has suggested the government to introduce a separate production-linked incentive (PLI) scheme for MSMEs to further boost the sector’s contribution and generate more jobs. Though MSMEs play a pivotal role in India's economy, contributing significantly to economic development, growth, innovation and employment, four years after the scheme was launched, the large-scale manufacturing sector has emerged as its major beneficiary, the bank’s research wing, in its ‘Prelude to Union Budget 2024-25’ report, noted. PLI scheme has been a game-changer towards augmenting incremental manufacturing capacity, drawing fresh investments to the tune of nearly ₹1 lakh crore (~$12 billion), with incremental sales of ₹8.61 lakh crore (with exports share being close to 40 per cent) and facilitating employment generation of close to 8.78 lakh. Till January this year, 746 PLI applications had been approved in 14 sectors with an expected investment of over ₹3 lakh crore (~$35.93 billion). Out of those 746 applications, 176, or around 24 per cent, were MSMEs, the report said. Sectors like textile, garments, handicraft and leather can be considered for separate PLIs for MSMEs, it added.
Source: Fibre2fashion
Synopsis India and Russia aim to boost their bilateral trade to over USD 100 billion by 2030. The focus is on using national currencies, expanding trade routes, and increasing cooperation in sectors like energy, agriculture, infrastructure, and the digital economy. The agreement, announced at the 22nd Annual Bilateral Summit in Moscow, includes eliminating trade barriers, optimizing customs procedures, and promoting investments and joint projects, with a strong emphasis on humanitarian and cultural collaboration. India and Russia have agreed to enhance bilateral trade to over USD 100 billion by 2030, with a focus on investments, national currency usage for trade, and cooperation across various sectors such as energy, agriculture, and infrastructure. This decision emerged from the 22nd Annual Bilateral Summit in Moscow, where Russian President Vladimir Putin and Indian Prime Minister Narendra Modi reiterated their commitment to a "special and privileged strategic partnership." The two sides agreed on nine key areas of cooperations that spanned trade, trade settlement using national currencies, increased cargo turnover through new routes such as the North-South Transport Corridor, raising volume of trade in agri products, food and fertiliser, deepening cooperation in the energy sector, including nuclear energy, strengthening interaction for infrastructure development promotion of investments and joint projects across digital economy, collaborating on supply of medicines and development of humanitarian cooperation.
The leaders agreed to aspire "for elimination of non-tariff trade barriers related to bilateral trade between India and Russia" and continue "dialogue in the field of liberalisation of bilateral trade, including the possibility of the establishment of the EAEU-India Free Trade Area".
Key Points of Agreement Elimination of Trade Barriers:
Focus on reducing non-tariff barriers and exploring an EAEU-India Free Trade Area.
Currency Settlement System: Implementing national currencies for trade to simplify transactions. New Trade Routes: Enhancing cargo turnover with new routes like the North-South Corridor and Chennai-Vladivostok Sea Line.
Agricultural and Energy Cooperation: Increasing trade in agricultural products and collaborating in nuclear energy and oil refining.
Infrastructure Development: Strengthening ties in transport engineering, shipbuilding, and space sectors.
Digital Economy and Medical Advancements: Promoting joint projects in the digital economy and enhancing medical cooperation.
Humanitarian Collaboration: Expanding ties in education, culture, tourism, and health
Expanding Trade and Economic Cooperation In the joint statement following the summit, both leaders expressed their intention to eliminate non-tariff trade barriers and continue discussions on trade liberalization, including the possibility of establishing an EAEU-India Free Trade Area. They also committed to achieving a mutually agreed trade volume of more than USD 100 billion by 2030. This includes increased supplies of goods from India to balance bilateral trade and invigorating investment activities within special investment regimes. Utilizing National Currencies A major aspect of the agreement is developing a bilateral settlement system using national currencies. This arrangement allows India to pay for Russian imports, such as crude oil, in Indian rupees. Russia can then use these rupees to pay for Indian exports. The same system applies vice versa with Russian rubles. "Development of a bilateral settlement system using national currencies" is a key part of the joint statement.
Enhancing Trade Routes and Customs Procedures The leaders agreed to increase cargo turnover by launching new routes like the North-South International Transport Corridor, the Northern Sea Route, and the Chennai-Vladivostok Sea Line. They also discussed optimizing customs procedures through intelligent digital systems to facilitate barrier-free movement of goods. "Increase of cargo turnover with India through the launch of new routes... and optimization of customs procedures" was emphasized in their statement. Boosting Agricultural and Energy Trade The agreement includes plans to raise the volume of bilateral trade in agricultural products, food, and fertilizers. Both sides aim to maintain an intensive dialogue to remove veterinary, sanitary, and phytosanitary restrictions and prohibitions. In the energy sector, they agreed to cooperate in nuclear energy, oil refining, and petrochemicals, and to expand forms of cooperation and partnership in energy infrastructure, technologies, and equipment. "Development of cooperation in key energy sectors, including nuclear energy... and expanded forms of cooperation and partnership in the field of energy infrastructure" was highlighted. Infrastructure and Industrial Collaboration Both countries will strengthen interactions in infrastructure development, transport engineering, automobile production, shipbuilding, space, and other industrial sectors. They plan to facilitate the entry of Indian and Russian companies into each other's markets by creating subsidiaries and industrial clusters. "Strengthening of interaction in the fields of infrastructure development... and facilitation of entry of Indian and Russian companies in each other's markets" were key points. Advancing Digital Economy and Medical Cooperation The leaders committed to promoting investments and joint projects across various sectors of the digital economy, science, and research, including educational exchanges and internships for employees of high-tech companies. They also agreed to promote systematic cooperation in the development and supply of medicines and advanced medical equipment, and to explore opening branches of Indian medical institutions in Russia. "Promotion of investments and joint projects across various sectors of digital economy" and "promotion of systematic cooperation in the development and supply of medicines" were notable aspects.
Humanitarian and Cultural Collaboration The summit also emphasized expanding humanitarian cooperation in education, science and technology, culture, tourism, sports, healthcare, and other areas. Both sides instructed the Russian-Indian Intergovernmental Commission on Trade, Economic, Scientific, Technical, and Cultural Cooperation to study these priority areas and assess progress at its next meeting. "Development of humanitarian cooperation, consistent expansion of interaction in the fields of education, science and technology, culture, tourism, and healthcare.
Source: Economic Times
Synopsis PM Modi's Russia visit includes meeting Putin to discuss India-China border issues, Kazakhstan summit, arms deals (Su-30MKI, licensed production), trade balance, and energy ties. Talks will also cover Russia’s nuclear threats, US-India relations, murder plot probe, Indian community meetings, and the Ukrainian conflict. Indian Prime Minister Narendra Modi will visit Russia on Monday for the first time in five years at a time when Moscow is deepening its embrace of New Delhi’s rival, China. Modi is set to meet with Russian President Vladimir Putin during the visit, which will stretch into Tuesday. India’s Foreign Secretary Vinay Kwatra told reporters in New Delhi that given the lack of recent summits, several issues on the bilateral agenda “have piled up, which need to be addressed.” Senior Indian diplomats, speaking on condition of anonymity, said that while major announcements are unlikely, Modi’s visit is intended to send a signal that the two sides remain close. Russia’s ties to India stretch back to the Cold War, and the country is India’s biggest supplier of weapons and oil. That relationship has remained “resilient,” Kwatra said However, India is watching carefully as Russia draws closer to China, which has served as an economic and diplomatic lifeline amid sanctions over the Kremlin’s grueling war on Ukraine. During a security summit in Kazakhstan last week, Putin described relations with China as the “best in history.” Relations between India and China have been stuck at a low point since a border dispute erupted into violence in 2020, though the two sides have agreed to talks to resolve the disagreement. “India, situated between Russia, China, and the West, seeks more predictability from Russia and is willing to play a bigger role in promoting peace” in Ukraine, said Petr Topychkanov, associate senior researcher at the Stockholm International Peace Research Institute. “Nevertheless, behind closed doors, Putin may face questions from Modi about the increasingly close ties between Russia and China,” he said. Moscow will be Modi’s first bilateral visit since he won a third term in office last month. His decision to travel to Russia instead of neighboring countries like Bhutan, Maldives and Sri Lanka marks a break in convention for Indian leaders. For Moscow, the trip helps rebuff Western efforts to cast Putin as a pariah over his February 2022 invasion of Ukraine, while also shoring up relations with an important trading partner and key buyer of its oil. Measures to reduce a trade imbalance between the two countries are likely to figure prominently in the talks, Kwatra said. India currently imports about $60 billion a year in goods from Russia, which is buying less than $5 billion from India. China’s actions in the Indo-Pacific could also come up, India’s top diplomat said While in previous years the Indian and Russian leaders met annually, Modi began skipping those summits after Putin threatened to use nuclear weapons in Ukraine in 2022. The two last met that year on the sidelines of a Shanghai Cooperation Organization meeting in Uzbekistan. Future arms deals could also be on the agenda, according to Ruslan Pukhov, director of the Centre for Analysis of Strategies and Technologies, a Moscowbased defense think tank. He said Russia could supply India with new air defense systems and Su-30MKI fighter jets, as well as the licensed production of Ka-226T multipurpose helicopters. India is facing a severe crunch of fighter jets and is considering buying a dozen more from Russia to replace those lost in accidents. Modi’s trip comes just weeks after a team of senior US officials traveled to India to discuss cooperation in technology, security and investment. Modi has sought a deeper partnership with the US and is pushing Washington to boost technology transfers and foreign investment. The US for its part sees India as a partner in its rivalry with China, but the relationship has at times frustrated Washington. Modi has declined to condemn Russia’s invasion of Ukraine even as it has pushed for diplomacy. US prosecutors also are investigating an alleged murder-for-hire plot on American soil that they say involved senior Indian officials. US Deputy Secretary of State Kurt Campbell in late June said US officials have raised concerns about India-Russia ties with New Delhi, but that Washington retained confidence in India and wants to expand relations. In addition to talks with Putin, Modi is expected to meet with members of the Indian community in Russia. About 14,000 Indians, including 4,500 students, reside there, according to the Indian embassy.
Source: Economic Times
Rating agency Moody's on Tuesday kept India's economic growth forecast for calendar year 2024 unchanged at 6.8%, while predicting a 6.5% growth for 2025. Moody's Rating said increasing domestic and overseas demand supports GDP growth in emerging markets (EM), with wide variation by country. "We have revised our aggregate EM forecast to 3.9% for 2024 and 2025, up slightly from our previous forecast, to reflect faster-than-expected growth in some of the largest EM economies in the first half of this year," it added. In its Global Macro Outlook 2024-25 published in March, Moody's raised its forecast for India's GDP growth in 2024 from 6.1% to 6.8%, reflecting both global and domestic optimism in the country's economy on the back of robust manufacturing activity and infrastructure spending. "India is likely to remain the fastest-growing among G-20 economies over our forecast horizon," it said. Gross domestic product (GDP) for fiscal year 2024 expanded at 8.2%, ably supported by January-March 2024 quarter growth of 7.8%, according to data released by the Ministry of Statistics and Programme Implementation in May. Both figures were significantly higher than the 6.2% (revised) recorded in Q4 of FY23 and 7% registered in the previous fiscal. The push for GDP growth came from key sectors including manufacturing, construction, mining and services. Moody's said headline inflation has slowed mainly because of lower food prices in India, but price volatility remains an issue. "Headline inflation is decreasing in EM Asia and is near or below central bank targets in most countries in that region alongside generally tepid wage trends, although India and Vietnam are reporting stronger wage gains of over 5% year on year," it added. Inflation to ease Moody's expects inflation in India to ease to 5.2% in 2024 and 4.8% in 2025 from 5.7% in 2023. According to the latest data from the statistics ministry, retail inflation based on the consumer price index (CPI) eased to 4.75% in May from 4.83% in April, the slowest pace in a year, aided by a more moderate rise in prices of food items such as meat, fish, milk products, vegetables, and spices. Inflation has stayed below 5% since March. However, food inflation, which accounts for almost 40% of the overall consumer price basket, rose 8.69% year-on-year in May, compared with 8.70% in April. Food prices have remained elevated for over a year due to the uneven and below-normal monsoon rains last year. Food inflation has consistently stayed above 8% since November. The Reserve Bank of India could 'hold for longer' on interest rate cuts, Moody's said in its latest report. During its second bi-monthly policy meeting for FY25 in June, the Indian central bank maintained the benchmark interest rate (repo rate) at 6.5%. RBI governor Shaktikanta Das noted the "last mile journey towards a 4% inflation target remains sticky," indicating that the central bank would wait for inflation to stabilise at about 4% before taking policy action. Interest rates are an instrument for the central bank to control inflation. A higher interest rate regime makes borrowing costs more expensive, reducing demand among banks, financial institutions, and the general public, which can, in turn, bring down consumer spending and inflation.
Source: Live Mint
India, China and the US drove the global trade growth, which turned positive in the first quarter of 2024 with the value of trade in goods increasing by around 1 per cent quarterover-quarter and services by about 1.5 per cent, finds the UN's trade body. Global trade trends turned positive in the first quarter of 2024, with the value of trade in goods increasing by around 1 per cent quarter-over-quarter and services by about 1.5 per cent. Also Read - Informal Sector Loses Rs 11.5 Trillion, 16M Jobs Post Shocks According to UNCTAD, the trade growth was primarily driven by increased exports from China 9 per cent, India 7 per cent and the US 3 per cent. Europe’s exports showed no growth and Africa’s exports decreased by 5 per cent. In the first quarter of 2024, global trade continued its modest and gradual increase that began in the second half of 2023. Both merchandise and services showed positive quarter-over-quarter global trade growth in Q1 2024, with expectations of further increases in Q2 2024. This points towards a return to growth in global trade of goods in 2024, while also indicating the conclusion of the robust upward trend in trade in services. Overall, moderating global inflation and improving economic growth forecasts suggest a reversal of the downward macroeconomic trends that have characterized most of 2023. Also Read - ONGC's ₹ 2 Lakh Crore Push for NetZero by 2038 Merchandise exports from India were up 7 per cent and imports into India were down 1 per cent. Similarly, services exports from India were up 3 per cent and imports were down 2 per cent. UNCTAD also found that geo-economic issues continued to play a significant role in shaping key bilateral trade trends. Among dynamic bilateral trade between countries, India’s dependence on China increased 1.2 per cent and was up 1 per cent on Europe. Its dependence on Saudi Arabia was down 0.5 per cent. Also Read - 7 proposals on table for Sebi expert group for short-term measures to tame F&O frenzy UNCTAD also predicted a stronger positive trend for Q2 2024, projecting an approximate 2 per cent 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. If positive trends persist, global trade in 2024 could reach almost $32 trillion, yet it is unlikely to surpass its record level seen in 2022. Also Read - Finance minister wraps up consultations, FY25 budget to be presented on Jul 23 Despite these positive trends, the outlook for 2024 is tempered by potential geopolitical issues and industrial policy impacts. Geopolitical tensions, rising shipping costs, and emerging industrial policies could reshape global trade patterns. The report warns that an increasing focus on domestic industries and trade restrictions could hinder international trade growth.
Source: Deccan
Prime Minister Narendra Modi and President Vladimir Putin on Tuesday set an ambitious India-Russia trade target of $100 billion by 2030 even as the New Delhi focused on measures aimed at ensuring predictable and assured supplies of Russian crude, fertilisers and nuclear fuel for the Kudankulam power plant. The new goal for trade aims to build on a recent surge in two-way commerce, already worth more than double the earlier target of $30 billion set for 2025. Bilateral trade ballooned to $65.7 billion in 2023-24, largely because of India’s uptake of discounted Russian crude after the imposition of Western sanctions, but concerns have grown in New Delhi about the trade being skewed as Indian exports are worth less than $5 billion. In his opening remarks at the annual bilateral summit, Modi said Indian citizens faced no difficulties with the supply of petrol and diesel amid a global fuel crisis because of Putin’s cooperation. Putin noted in his remarks that two-way trade had grown 66% in 2023 and by another 20% in the first quarter of 2024. “The world will have to acknowledge that the agreement between India and Russia on fuel played an indirect role in giving market stability...to the world,” Modi said, speaking in Hindi and referring to India’s increased purchases of Russian energy after the start of the Ukraine conflict. Russia has emerged as an important partner in meeting India’s energy needs, supplying more than 80 million metric tons of crude last year. Indian officials said securing affordable energy supplies to keep inflation and price rise under check was an important part of the discussions in Moscow. Modi also said that at a time when the world was passing through a crisis of food, fuel and fertilisers, he was able to address the concerns of Indian farmers over the supply of fertilisers because of Russia’s cooperation. “We are committed to protect the interests of farmers in the coming times too, and we want our cooperation with Russia to increase even more for the interests of the farmers,” he said. Russia remains a key supplier of fertilisers, providing more than 4.8 million tonnes of the commodity last year. This supply is crucial, especially during the ongoing Kharif season and the Ravi season starting in October, officials said. The two sides agreed to continue cooperation on the sustainable supply of fertilisers to India through company-to-company long-term contracts. The two sides discussed a range of measures aimed at both growing bilateral trade and making it more balanced, especially in view of trade being currently skewed in Russia’s favour. Foreign secretary Vinay Kwatra told a media briefing after the summit that the economic agenda had dominated the discussions between the two leaders, who discussed in detail the challenges to the trade and investment partnership. Modi raised the need to broaden India’s trade basket and sought greater market access for Indian agricultural and industrial goods. The discussions also centred round making India’s trade basket more sustainable, Kwatra said. Modi also noted Putin’s public support for the “Make in India” initiative and for manufacturing in India, saying these steps had created many new employment opportunities for the country’s youth. A joint statement on developing strategic areas of Russia-India economic cooperation up to 2030 outline nine key areas for cooperation, including elimination of non-tariff trade barriers and dialogue for liberalisation of bilateral trade, including the establishment of a Eurasian Economic Union-India free trade area. As part of the trade target of $100 billion by 2030, the two sides will cooperate to increase the supplies of Indian goods to achieve balanced trade and reinvigorate investment activities within the framework of special investment regimes. They will also develop a bilateral settlement system using national currencies and introduce digital financial instruments into mutual settlements, the joint statement said. Russia will work to increase cargo turnover with India through the launch of new routes of the North-South International Transport Corridor, Northern Sea Route and ChennaiVladivostok sea line. Customs procedures will be optimised by using intelligent digital systems for barrier-free movement of goods, the joint statement added. In an apparent move to overcome the impact of Western sanctions, a separate joint statement issued after the 22nd India-Russia Summit said the two sides will continue consultations for “interoperability of their financial messaging systems”. The two sides also “noted the importance of finding mutually acceptable solutions for issues of insurance and reinsurance” to further enhance bilateral trade. In the field of civil nuclear cooperation, the two sides agreed to adhere to the schedule, including the timelines for delivery of supplies, for building the four remaining reactors at the Kudankulam nuclear power plant. Kwatra said cooperation on fuel supplies for these four reactors was part of the discussions. “We hope to move forward on fuel supplies quickly,” he said. “Both sides noted the importance of further discussion on the second site in India [for a nuclear power plant] in accordance with earlier signed agreements. The sides agreed to continue technical discussions on the VVER 1200 of the Russian design, localisation of equipment and joint manufacturing of NPP components as well as on cooperation in third countries,” the joint statement said. The two sides also confirmed their intention to broaden cooperation in nuclear power, including fuel cycle, life cycle support for operating the Kudankulum nuclear power plant.
Source: Hindustan Times
Bangladeshi and Chinese companies signed 16 memoranda of understanding (MoUs) on Tuesday in Beijing to boost collaboration in textiles, electric vehicles, solar power, financial technology, and technology at a summit focused on trade and investment opportunities between the two countries.
Four of these 16 MoUs will bring nearly $500 million in investments to Bangladesh, including one involving $400 million for establishing the largest PSF, PET bottle, and textile-grade factory in the Mongla Economic Zone.
Prime Minister Sheikh Hasina is now on a three-day official visit to China which was originally for four days, and attended the summit as the chief guest.
PM invites Chinese cos to explore Bangladesh
During her speech as the chief guest at the summit, Prime Minister Sheikh Hasina invited Chinese companies to visit Bangladesh and explore business opportunities.
"Bangladesh is the most favourable investment destination in the world. Bangladesh is committed to ensuring your business is profitable," she told the Chinese investors.
The Embassy of Bangladesh in Beijing, Bangladesh Investment Development Authority (Bida), Bangladesh Securities and Exchange Commission (BSEC) and China Council for the Promotion of International Trade organised the summit at China World Summit Wing, Shangri-La Circle, Beijing.
In her speech, the prime minister said that China is Bangladesh's largest partner, with trade volumes increasing yearly. However, she said immense potential remains to expand the trade ties further.
"We are committed to addressing trade imbalances and creating a more equitable trade relationship," she said.
"Our shared vision for economic growth, technological advancement, and sustainable development forms the cornerstone of our bilateral relations," said the premier.
"You will find in us all the support and assistance you need. Let us work together to build a stronger, more prosperous, and more connected world. It is time to invest in Bangladesh, and I am confident that with our hands joined together, we can achieve great things," she added.
PM invites joint ventures
To enhance business cooperation, Sheikh Hasina encouraged Chinese companies to form joint ventures with Bangladeshi firms.
"This collaboration will facilitate technology transfer, skill development, and market access for both parties. Investment in research and development is crucial for fostering innovation and competitiveness," she said.
She invited Chinese companies to establish R&D centres in Bangladesh, leveraging Bangladesh's skilled workforce and academic ingenuity.
"We believe there is significant potential for Chinese investment, particularly in the energy sector, including renewable energy," Sheikh Hasina said.
She mentioned that Climate-resilient smart farming opens opportunities for collaboration in agro-processing industries, with buy-back arrangements with China.
The prime minister also urged Chinese investors to explore portfolio investments in Bangladesh as the Bangladesh Securities and Exchange Commission (BSEC) is actively working to further develop our capital markets.
"We believe there is significant potential for Chinese investment, particularly in the energy sector, including renewable energy," Sheikh Hasina said.
She mentioned that Climate-resilient smart farming opens opportunities for collaboration in agro-processing industries, with buy-back arrangements with China.
The prime minister also urged Chinese investors to explore portfolio investments in Bangladesh as the Bangladesh Securities and Exchange Commission (BSEC) is actively working to further develop our capital markets.
"The aim is to make them more attractive to foreign investors. We have made significant progress in developing a robust bond market. We are on the brink of introducing derivative products, which will further diversify and widen our financial markets," she said.
Sheikh Hasina mentioned that Bangladesh offers one of the most liberal investment regimes in the world, and the Bangladesh Investment Development Authority (Bida) provides a number of services to foreign investors under one roof.
"In line with our commitment to economic development, we are establishing 100 Special Economic Zones (SEZs), each equipped with state-of-the-art facilities," she said.
"We plan to establish three special tourism zones where China can invest in the real estate and hospitality sectors," the premier said.
She said as Bangladesh is embracing the digital age with open arms, the government is actively promoting the growth of the ICT sector, offering incentives for startups, investing in tech parks, and fostering an ecosystem that encourages innovation and entrepreneurship.
"Our young entrepreneurs are making their mark on the global stage, and we invite you to be a part of this exciting journey," she added.
Chinese investment may cross $5b
Shibli Rubayat-Ul-Islam, chairman of the BSEC told The Business Standard, "In addition to the Chinese companies signing the 16 MoUs, officials from other companies also met with Prime Minister Sheikh Hasina and expressed their interest in investing in Bangladesh's private sector."
He said the companies that signed the MoUs are having one-on-one discussions to determine the size of their investments. The overall investment figure might cross $5 billion if the companies that showed interest eventually decide to invest in Bangladesh.
"We hope through this summit, more Chinese investment will come to Bangladesh," said the BSEC chairman.
Government ministers and private sector leaders attended the investment summit and delivered speeches.
Private sector leaders are optimistic
Ahsan Khan, chairman of the Pran-RFL Group, in his speech, said it is a good day for Bangladesh to organise such a successful summit with Chinese investors.
"Chinese investors are very much interested in investing in Bangladesh. I have seen this earnestness in investing more in Bangladesh and China," he said.
"Pran-RFL exports its product to China and imports raw materials. If the Belt Road initiative succeeds, connecting by road and train will be possible. Then we will get a chance to export and import by rail and road, which will be cheaper. It will make us more competitive in the global market," Ahsan Khan added.
Al Mamun Mridha, secretary general of Bangladesh China Chamber of Commerce and Industry, said, "We expect more Chinese investment in Bangladesh's potential sector. More than 1,000 Chinese investors wanted to invest in Bangladesh in the last two years and we invited all of them to today's summit."
"We expect our bilateral trade gaps to narrow if Chinese investors invest in Bangladesh export sectors," he said.
"Chinese investment in Bangladesh has been boosted in the last two years. Our chamber is always ready to serve all the quarries of the investor without any cost. We are planning to arrange a Chinese trade and investment summit in Dhaka this year," Mridha added.
What are the 16 MoUs signed?
The signed MoUs between Bangladeshi and Chinese companies are:
While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.
Source: TBS News
China-Vietnam container cargo trains departing from Guangxi transported 4,928 containers in the first half this year, a year-on-year (YoY) increase of 1,565 per cent—accounting for 74 per cent of total containers from China to Vietnam, according to statistics from the Nanning railway bureau of Guangxi. The travel time from China’s Nanning station to Vietnam’s Yen Vien station is 14 hours, meeting the needs for dispatch, customs clearance and cargo delivery on the same day. At the beginning of this year, the Nanning railway bureau expanded the gathering-transportation routes, utilised the role of the Nanning International Railway Port as a cargo transportation hub and formulated suitable logistics plans for each enterprise to attract cargo to gather at the port for exports to Vietnam. It has also gradually shifted from single transport services to comprehensive cross-border transport services and extended the free container storage time to 48 hours to reduce transportation costs for businesses, state-controlled Chinese media reported. Over 20 cities within and outside the Guangxi Zhuang Autonomous Region have become cargo gathering points for trains exporting goods to members of the Association of Southeast Asian Nations. The Nanning International Railway Port has initially become a gathering-distribution-transport centre for Chinese goods exported to Vietnam by train.
Source: Fibre2fashion
The European Union (EU) and Turkiye recently discussed key cooperation areas like green transition and digital trade that have a bearing on the Customs Union, and ways to resolve additional priority trade barriers after the latter removed 11 trade barriers out of 26 in early 2021. At the first EU-Turkiye High-Level Dialogue on Trade in Brussels, delegations led by EU executive vice president and commissioner for trade Valdis Dombrovskis and Turkish minister for trade Omer Bolat discussed business mobility and the road transport quotas applied by EU member states to Turkish hauliers. They discussed further areas of cooperation, notably ways to prevent the circumvention of EU sanctions via the Customs Union. The dialogue gave political steer to the work on addressing the remaining bilateral trade irritants and allowed for a discussion on several areas of cooperation that would strengthen the functioning of the Customs Union, an official EU release said. EU-Turkiye bilateral trade was worth €206 billion in 2023. The dialogue was preceded by the EU-Turkiye Business Roundtable where representatives of major Turkish and EU business associations discussed current state of play in implementing the Customs Union and perspectives for enhancing bilateral trade and economic relations.
Source: Fibre2fashion
