Union Minister of Commerce and Industry (/topic/union-minister-of-commerce-and-industry), Piyush Goyal, has spoken out against India's previous involvement in the Regional Comprehensive Economic Partnership (/topic/e-regional comprehensive-economic-partnership) (RCEP) negotiations, stating that the country was "forced" to join the grouping by 'then government' (Congress). The minister stated this during a press address on the side lines of his 4-day US visit, which concluded on Thursday. "RCEP is a grouping of 15 countries. India already had an FTA with the ten ASEAN countries. So with 12 out of those 15 countries, we already had an FTA ... We were at an advanced stage of negotiation, but we aborted it," the commerce minister said. "India was forced to join that group, RCEP, by executive action of the then government," he added. He emphasised that joining RCEP would have essentially been a free trade agreement (/topic/free-trade-agreement) (FTA) with China, allowing China to "dump goods into India" and exacerbate the trade deficit (/topic/trade-deficit). "Basically, it was getting India to do an FTA with China and imagine what that would have cost India," he noted. Goyal highlighted the significant growth in India's trade deficit (/topic/trade-deficit) with China between 2004 and 2014. "The import duties were reduced from 2004-2014, which helped China dump goods into India. Our trade deficit (/topic/trade-deficit) increased from 2004 to 2014 at a compounded annual growth rate (CAGR) of 42.85 per cent. If that did not kill manufacturing, then what did?" In contrast, Goyal pointed out that from 2014 to 2024, India's trade deficit (/topic/trade-deficit) with China grew at a much slower rate. "Whereas from 2014 to 2024, our trade deficit (/topic/trade-deficit) with China grew only by 6.45 per cent CAGR," he said. Goyal criticised the previous government for not recognising the harm caused to India's growth story. "It's extremely sad that certain governments, who are responsible for this problem in the first place, don't even recognise and understand how they have hurt and damaged the India growth story," he said. ASEAN is one of the major trade partners of India, with a share of 11 per cent in India's global trade. The bilateral trade stood at USD 122.67 Bn during 2023-24. The upgrade of AITIGA will further boost bilateral trade. Both sides would next meet for the 5th Joint Committee meeting from 29-31 July 2024 in Jakarta, Indonesia.
Source: Ani News
Synopsis Experts highlight that stable policies and enhanced ease of doing business at the state level are crucial for growing India's manufacturing sector. Sectors like renewable energy and electronics present substantial opportunities for job creation and domestic production. The government has introduced measures like the production-linked incentive scheme and quality control orders to bolster domestic manufacturing and support local businesses, said Sujoy Ghosh, VP at First Solar. Stable policies and further improvement in the ease of doing business in states will help significantly boost the country's manufacturing sector's growth, according to experts. They also said that sectors like renewable energy, particularly in the solar segment and electronics, hold huge potential to promote domestic manufacturing and create thousands of jobs The government has already taken a series of steps like rolling out the production-linked incentive scheme (PLI) for 14 sectors, tweaking tariffs and issuance of mandatory quality control orders for different products to support domestic players and increase manufacturing activities, they added. "Stable policies and further promotion of ease of doing business at the state level will help significantly boost the country's manufacturing sector growth," Sujoy Ghosh, vice president and country managing director, First Solar, said.
Source: Economic Times
Synopsis Finance minister Nirmala Sitharaman has urged expenditure secretary Manoj Govil to work with states to speed up capital investment project approvals. Only ₹50,069 crore out of ₹1.5 lakh crore allocated for 2024-25 has been approved so far, highlighting the need for timely execution. Finance minister Nirmala Sitharaman on Friday asked expenditure secretary Manoj Govil to coordinate with states to expedite the submission and approval of project proposals and ensure that they undertake capital investments in a timely and efficient manner. Under the scheme for special assistance to states for capital investment, their projects worth only ₹50,069 crore have been approved in the first half of 2024-25, against the budgetary allocation of ₹1.5 lakh crore for the entire year, the finance ministry said in a post on X (formerly Twitter). Under this scheme, the Centre extends 50-year loans to states at zero interest to boost their durable assets creation. States are required to undertake stipulated reform measures to obtain a part of the capex loans that are conditional in nature, although a large part remains untied In a meeting to review the scheme's progress, Sitharaman also directed senior finance ministry officials to nudge states to carry out the required reforms and use up the entire capex allocation. This was a part of her series of meetings lined up to review the capital spending and resultant asset creation across ministries. Economic affairs secretary Ajay Seth and other senior finance ministry officials also attended the meeting.
Source: Economic Times
Under the space sector, over 200 start-ups have emerged, and in total defence production, 20% contribution has come from the private companies. Written by FE Bureau October 5, 2024 05:00 IST On growth, Modi said that all multilateral organisations have upgraded their projections. (Image/Reuters) Prime Minister Narendra Modi on Friday said that India clearly is in a “sweet spot” today, giving ample and unique opportunities for the global investors. Speaking at the Kautilya Economic Conclave, Modi said: “Amid global uncertainties, we’re discussing ‘the Indian era’. This shows the confidence the world has on India today is different.” “We work on the principles of ‘reform’, ‘perform’, and ‘transform’…and have been consistently taking decisions to speed up the country’s progress,” he said. Modi noted that in the past three months “decisions worth of Rs 15 trillion” have been taken. The prime minister highlighted that today India holds the “number 1” spot in global fintech adoption rate, smart data consumption, manufacturing of twowheelers and tractors, and youth workforce. We’re the world’s third biggest startup economy, and fourth in renewable capacity addition, said the PM. Today, the Indian economy is going through a big transformational change. “On the basis of strong fundamentals, the country’s economy is on its way to sustained growth,” stated Modi. “India is working to not only reach top spot (economically), but stay there. Today, there are a lot of opportunities for the world in all sectors…Investors have a big opportunity to make gains over their investments in India,” said the PM. On growth, Modi said that all multilateral organisations have upgraded their projections. “In this fiscal, they are saying India is going to grow at over 7% despite global uncertainties. However, we are confident we’ll perform better.” Additionally, the PM said that one notable aspect of India’s growth story is “inclusive spirit”. In the past ten years, 250 million people escaped poverty, the PM noted. He said that the reforms undertaken in the past 10 years have transformed the country’s macroeconomic fundamentals. They include banking reforms, which strengthened the banks financial conditions and increased their lending capacity; GST, which integrated central-state indirect taxes; and IBC that developed a new credit culture of responsibility, recovery, and resolution. On the production linked incentive scheme, the PM said that Rs 1.25 trillion worth investments have been made in the country due to it. Under the space sector, over 200 startups have emerged, and in total defence production, 20% contribution has come from the private companies. “10 years ago, India was an importer of mobile phones. Today 330 million mobiles are being manufactured in India,” said the PM. On the semiconductor mission, Modi said that very soon five semiconductor plants will export made-in-India chips to all corners of the world. The Prime Minister also highlighted that the central government is supporting families to install solar infrastructure in their houses. So far, under PM Surya Ghar Yojana, over 130 million families have been registered, which will on average help them save Rs 25,000 on electricity expenses. “In Every 3KW solar electricity production…50-60 tonne of carbon dioxide emission will reduce” Modi said.
Source: Financial Express
Synopsis India and the EU are set to hold the next round of FTA negotiations in early next year. Limited progress was achieved on rules of origin and government procurement. Positive discussions took place on market access for goods, sectoral annexes, and professional qualifications recognition. New Delhi: The next round of India European Union free trade agreement (FTA) negotiations is likely to be held in the first quarter of next year even as the two sides made limited progress on issues such as rules of origin and government procurement in the just concluded ninth round from September 23-27. In government procurement, issues related to state owned enterprises, Make in India and its application to EU bidders and goods remain unresolved. "Only issues related to sanitary and phyto-sanitary measures l, dispute settlement and good regulatory practices have made progress," said an official. India and the EU re-launched negotiations for an FTA after a nine-year hiatus and started separate negotiations for an Investment Protection Agreement and an Agreement on Geographical Indications in June 2022. Negotiators said that EU wanted India to give explanation on the foreign direct investment proposals it rejects, something that New Delhi is apprehensive about. The positions of the two sides on the negotiations on origin rules, which are key to check FTA circumvention and cheap imports, and technical regulations and conformity assessment were different on some products. They discussed rules of origin for textile products, wood and paper products, chemicals, precious metals and related products, machinery and electronics. On the other hand, discussions on market access in goods, sectoral annexes on cars, pharmaceuticals and disciplines relating to financial services, and recognition of professional qualifications were positive, they said. "This was a restricted round and the aim was to make progress on the substance of the central issues and get the exact picture of the positions of the two sides," the official added. The two sides continued discussions on investment liberalisation except services on the basis of a joint text.
Source: Economic Times
The economy is on a “sustained high growth” path with robust economic fundamentals as the government makes earnest efforts not only to achieve the top position but also to remain there, Prime Minister Narendra Modi said on Friday, reaffirming his committed to make India a developed nation by 2047. Addressing the third edition of the Kautilya Economic Conclave, he said that the three-day deliberations would provide valuable suggestions to boost India’s economic growth. “Friends, the conclave this year is happening at a time when two major regions of the world are into war situations. Both the regions are very important for the global economy, particularly from the point of energy security,” he said. “Amid such a major global uncertainty we all are here discussing ‘the Indian Era’, means the epoch of Bharat. This demonstrates a different level of confidence in Bharat. This exhibits the distinctive self-confidence of Bharat,” he said. Emphasising the policy focus on inclusive growth, he said, “It was once believed that with growth comes inequality. But the opposite is happening in Bharat. Along with growth, inclusion is also taking place. As a result, 25 crore (250 million) people have been lifted out of poverty in the last 10 years.” The two-and-a-half-day Kautilya Economic Conclave, organised jointly by the Union finance ministry and the Institute of Economic Growth (IEG), is attended by over 50delegates from 16 countries and an equal numbers of domain experts from India, IEG president and former chairman of the 15th Finance Commission NK Singh informed the Prime Minister. While introducing the theme -- The Indian Era -- for the 3rd edition of the conclave that started from October 4, Singh elaborated the five key reasons for selecting the theme: Spectacular growth for four successive years despite global headwinds, economic development along with democracy, using cutting-edge technology to improve ease of living, adoption of climate responsibility, and becoming voice for the Global South in an “increasingly fragmented” world. PM assured the participants of the conclave that valuable insights emerging from deliberations at the forum will be used for making policy decisions. “I assure you that this is not merely a debating forum for us. The discussions that take place here, the points raised, the do’s and don’ts — those that prove beneficial — are diligently integrated into our governmental system,” he said. Today India is the fastest growing major economy of the world and the fifth-largest economy in terms of gross domestic product (GDP), the PM said. India is at the top in terms of global fintech adoption and smart phone data consumption and at number two in the use of internet, almost half of the global digital transactions happen in India, and it has the third largest startup ecosystem of the world, he said, adding that today’s India is a “sweet spot” of the world. By following the mantra of “reform, perform, and transform”, the government is continuously making decisions to drive the nation forward at a fast pace, which is the reason why the people have elected the same government for the third consecutive terns after a gap of six decades. “When people’s lives change, they gain confidence that the country is moving on the right track. This sentiment is reflected in the mandate of the Indian public. The trust of 140 crore citizens is a great asset for this government,” he said The PM reiterated the government’s resolve to continue structural reforms. “You can see this commitment in the work we have done in the first three months of our third term. Bold policy changes, a strong commitment to jobs and skills, a focus on sustainable growth and innovation, modern infrastructure, quality of life, and the continuity of rapid growth are reflected in the policies of our first three months,” he said. In three months, the government took decisions to implement projects worth over ₹15 lakh crore. Numerous mega infrastructure projects have been launched including the 12 new industrial nodes (smart cities) across the country and the construction of 30 million new houses for the poor, he said. PM Surya Ghar Yojana, the large-scale rooftop solar scheme, has seen registration of over 1.3 crore (13 million) families who have also become solar power producers as it will save an average of ₹25,000 per family. For every three kilowatts of solar power generated, 50-60 tonnes of carbon dioxide emissions will also be prevented. Besides, the scheme will create 17 lakh (1.7 million) jobs, he said.
Source: Hindustan Times
One of India’s biggest industries has come back into the limelight recently. The vast textiles and apparel sector which is the second largest employer in the country is proposed to be expanded rapidly. Textiles Minister Giriraj Singh has just unveiled a roadmap to virtually double the size of the industry from the existing 164 billion dollars to 350 billion dollars by 2030. The plan envisages an investment of Rs. 70000 crore in the seven mega integrated textile and apparel parks that have already been approved to be set up. As many as 21 lakh jobs are expected to be generated by these parks.
Indian Economy
The focus on textiles is much needed, given the importance of this sector. It contributes 2.3 percent to the country’s gross domestic product (GDP) and accounts for 13 percent of industrial production as well as 12 percent of exports. India is the fourth-largest textiles and apparel exporter in the world and the second-largest producer of jute, cotton, and silk. It also accounts for an amazing 95 percent of the world’s hand-woven fabric. Despite its dominating role in the economy, the textiles sector is not highlighted nowadays owing to the avid curiosity about sunrise industries like information technology and artificial intelligence. Yet centuries ago, it was this industry that put India on the world map.
The difference now is that priority is increasingly being given to man-made fibres including in the new expansion plan. This was mentioned by the Textiles Minister while announcing the new roadmap. He said it was essential to produce more such fabrics including synthetic and viscose to achieve the target market size. In this context, he commented that over 350 global brands source their clothing from this country. But he assured that natural fibers will also be given their due needs.
The new policy comes in the backdrop of stagnation in textile and apparel exports in recent years. These had dipped slightly in 2023-24 compared to the previous year. The apparel sector also has stiff competition from countries like Vietnam, Bangladesh, and China which are now much bigger exporters than India. Some studies place the blame on reliance on imported raw materials along with excess red tape. In other words, Indian exports would have been competitive but bureaucratic procedures are holding them back.
The challenging geopolitical scenario has also had an impact on the export scenario. With nearly 27 percent of apparel exports destined for the European Union and U.S. markets, the attacks by Yemen-based Houthis on merchant shipping going through the Red Sea have affected shipments. Cargoes are moving through the longer and more expensive route via the Cape of Good Hope, making Indian goods more expensive in key markets. The latest flashpoint in the conflict between Iran and Israel could also create further hurdles in the way of efforts to increase exports.
In addition, exporters now have to face rising tariffs in the EU. In this region, countries like Bangladesh have an edge as they benefit from the least developed country tag. This is an issue sought to be raised by the textile industry in the ongoing free trade agreement negotiations with the EU as well as with the U.K. The fact that textiles and apparel remain highly labour-intensive industries is an element that should be taken into account in the final agreement. This is in addition to the non-tariff barriers being imposed on environmental grounds by the EU.
Besides, a large segment of the apparel sector especially in the micro, small, and medium enterprises (MSME) sector. This needs considerable support for upgrading technology which is essential for growth. Hand-holding will be needed if enterprises are to meet the EU’s environmental social and governance (ESG) goals. At the same time, exporters need to shift perspectives and try to diversify markets instead of relying heavily on Western countries.
The political crisis in Bangladesh has also had implications for the Indian apparel industry. It was initially expected that it might have a beneficial impact as supply disruptions could provide an opportunity for Indian manufacturers. This has not happened so far. On the other hand, it has affected the operations of units set up by textile manufacturers from this country in Bangladesh. These had been established to avail of the EU’s concessional duties for LDCs. Cotton yarn supplies to the neighbouring country are also reported to have slowed down.
Within the country, there are also growing concerns over the dumping of Chinese man-made fibers. This is despite tariffs being pushed as high as 24 percent on such imports. The new textiles roadmap will have to devise a way to protect indigenous industries from the impact of this development.
The outlook is not all bleak, according to financial services agency B and K Securities which expects a recovery in exports by next year though domestic demand may continue to be moderate for the time being. A study on the sector has forecast that over the medium to long term, India could see more substantial gains as global buyers diversify supply chains away from China and Bangladesh.Against this backdrop, it is clear that the plans for expansion of the textile and apparel sector are timely as the industry increasingly needs greater support to meet global competition. The handloom segment especially needs more attention as raw material costs are rising while demand is not going up sufficiently. The industry is also concerned over higher rates of Goods and Services Tax and this issue needs to be reviewed so that it does not affect the sector’s health in the long run. As for cutting red tape, it should be high on the policy agenda as the country is losing ground to others in export markets. The new policy which envisages higher investment and expansion of this critical sector must resolve these multifarious problems.
Source: awz
It’s impossible for any visitor to the war museum in Ho Chi Minh City to not be thrilled by the experience. The Vietnamese have aesthetically preserved the memories of their civil war and the drubbing they gave France and the United States (US). They not only share these immortal stories of human dignity and the spirit of freedom with others but have internalised them as their code of honour. This is the surest way to ensure permanent freedom from slavery.
Four days spent in Vietnam reminded me of Howard Fast’s My Glorious Brothers. We were slaves of the Egyptians a thousand years ago—that was on the lips of every Jew who lived in the Jewish nation established before the advent of Christ. Being aware of your subjugation is the surest way to never be in that position ever again. Israel follows the dictum till today. Vietnam has embraced it in a more sophisticated way. It’s not fighting wars with its neighbours like Israel. Its relations with China have improved, too. This is the reason, the nation, smaller than the Indian state of Rajasthan has dazzled everyone by its economic progress. After a long spell of wars and the civil war, Vietnam finally managed to come into its own in 1976. But the next 25 years were spent nursing the deep wounds left by decades of violence.
Source: Hindustan Times
TEHRAN (ANA)- A knowledge-based company in Iran has succeeded in producing 100% viscose napkins (made of natural fibers and silk) which has no equivalent in the Middle East and can clean sensitive surfaces without leaving any scratches. “We are the only company in the Middle East that produces 100% viscose napkins, and we have conducted many researches to achieve these products,” Nasser Zera’ati Khosroshahi, the managing director of the knowledge-based company, told ANA. “We have produced different textile products like roll napkins. The manufactured products are 100% viscose, including 100% viscose leather handkerchiefs and air and body fresheners with high quality imported essential oils,” he added. “The textile industry depends on viscose, so different types of viscose are produced and marketed, the most famous of which are 100% viscose, polyester viscose, cotton viscose, and acrylic viscose,” Zera’ati Khosroshahi said. Rayon, also called viscose and commercialised in some countries as sabra silk or cactus silk, is a semi-synthetic fiber, made from natural sources of regenerated cellulose, such as wood and related agricultural products. It has the same molecular structure as cellulose. Viscose is the most used manmade cellulosic fiber. Viscose is smooth, absorbent, strong, and breathable, commonly used for a wide range of applications.
Source: Azad News Agency
Vietnam’s Jan-Sept index of industrial production (IIP) grew 8.6% year-on-year, extending the recovery of the sector, but the September index fell 0.2% from August. In its monthly report released on Sunday, the General Statistics Office (GSO) said the year-on-year growth was driven by the manufacturing sector (up 9.9%), electricity production and distribution (up 11.1%), and water supply and waste-wastewater treatment (up 9.9%). Only the mining sector fell in the nine-month period, down 6.4%. The 8.6% IIP growth in Jan-Sept was better than a 0.3% growth in the same period of 2023. The 8.6% rate is the same as that in Jan-Aug. In terms of monthly change, the latest time that the IIP went down was in Jan and Feb 2024. Jan, Feb, and Sept are the months impacted by national holidays. For the manufacturing-processing sector, in the first nine months of this year, some sub-sectors with strong growth were plastics and plastic products with 28.8%, furniture with 24.7%, and chemicals and chemical products with 16.9%. Some sub-sectors with below-average performances were beverage going up 0.4% only, beer going down 2.3%, tobacco growing 6.2%. Three localities recorded worse year-on-year performances in Jan-Sept, namely the central province of Quang Ngai with negative 2.4% growth, the central province of Ha Tinh with negative 0.6%, and the Central Highlands province of Gia Lai with negative 0.2%.
Source: Vietnam.net
