New Delhi, in a significant move to enhance India's technical textiles capabilities, the government approved 12 new research projects worth Rs 13.3 crore under the National Technical Textiles Mission on Tuesday. The approval came during the 10th Mission Steering Group meeting chaired by Union Textiles Minister Giriraj Singh. The newly approved projects focus on strategic areas including geotextiles, sustainable textiles, smart textiles, and composites. Leading research institutions, including IITs, NITs, and the Central Road Research Institute (CRRI), will spearhead these initiatives. With this addition, the Mission now oversees 168 research projects with a cumulative value of approximately Rs 509 crore. The National Technical Textiles Mission, a flagship program of the Ministry of Textiles, aims to strengthen domestic research and development capabilities, particularly in high-performance fibre development. Industry projections suggest the Indian textiles sector could reach USD 350 billion by 2030, potentially creating 4.5-6 crore jobs. Minister Singh has outlined ambitious targets for the sector, including achieving 50,000 metric tonnes of silk production and generating 1 crore jobs by 2030. He emphasised the crucial link between silk cultivation and farmer employment, highlighting the sector's socioeconomic importance. The technical textiles segment shows particular promise, with the global market valued at approximately USD 300 billion. While India's current domestic market stands at USD 25 billion with exports of USD 2.6 billion, the government has set an ambitious export target of USD 10 billion by 2030. In a parallel development, the ministry has approved 11 start-up proposals under the Grant for Research and Entrepreneurship across Aspiring Innovators in Technical Textiles (GREAT) initiative. This program offers support of up to Rs 50 lakh per start-up, demonstrating the government's commitment to fostering innovation in the technical textiles sector.
Source: KNN India
India’s trade deficit with Asean widened from $ 4.98 billion in 2010-11, the first full year of operation of AITIGA to $ 38.4 billion in 2023-24. As negotiations on the review of the Asean-India Trade in Goods Agreement (AITIGA) continue, in the coming round of talks the Indian side may seek an interim mechanism that provides protection to the sectors that are most impacted by the surge in imports from the 10-nation bloc, a senior official said. “We may seek some flexibility in the tariff concessions that have been given in the agreement and explore some mechanism whereby some protection can be offered to sectors that have seen maximum import surge following FTA,” the official said without offering details. As negotiations on the review of the Asean-India Trade in Goods Agreement (AITIGA) continue, in the coming round of talks the Indian side may seek an interim mechanism that provides protection to the sectors that are most impacted by the surge in imports from the 10-nation bloc, a senior official said.
“We may seek some flexibility in the tariff concessions that have been given in the agreement and explore some mechanism whereby some protection can be offered to sectors that have seen maximum import surge following FTA,” the official said without offering details. The negotiating team from Association of Southeast Asian Nations (ASEAN) will be in New Delhi from November 19-22 for the next round of negotiations on the review of AITIGA as both try to complete the process by 2025. “We are expecting substantial progress during the coming round of talks. We have some expectations.” In between physical meetings both sides are also engaging in virtual discussions. Apart from essentials like palm oil and coal, the biggest imports from Asean are computers, telecom equipment, integrated circuits, machinery, plastics, and iron and steel.
The review of AITGA which was agreed to in 2019 on the demand by India after imports from Asean surged and trade balance became huge is focussing on getting the balance back and checking likely use of the agreement by third countries.
The review covers eight areas and for each of these separate sun-committees have been set up. Apart from national treatment and market access and rules of origin the other areas covered by the ongoing review are standards, technical regulations and conformity assessment procedures; sanitary and phytosanitary; legal and institutional issues; customs procedures and trade facilitation; trade remedies and technical cooperation.
India’s trade deficit with Asean widened from $ 4.98 billion in 2010-11, the first full year of operation of AITIGA to $ 38.4 billion in 2023-24. The deficit has fallen from $ 43.5 billion in the previous year. The deficit was $ 25.7 billion in FY 22. While rules of origin as such is not such a big issue, the concerns of India stem from the fact that supply chains of Asean countries and China have become deeply integrated in the past 15 years. China during this period increased its share of imports by Asean to 30% from 10% during that period while India’s share stagnated at 10%. Other countries’ share of Asean imports contracted.
Apart from trade, Chinese investments in Asean have boomed as it seeks to use these countries to export to geographies like US and Europe where it is increasingly facing difficulties in direct exports.
China using the Asean route to misuse this FTA is a risk. The issue is also a challenge for the grouping as Chinese investments in these countries have increased so addressing this would not be easy.
Source: Financial Express
Chennai: Apparels and home textiles are hopeful about robust demand in the international market, especially the US. However, the industry is worried about its competitiveness as cotton and man-made fibre are priced higher than international rates and further correction is unlikely due to the import duty and minimum support price. The global demand scenario for apparels and home textiles is looking up. In September the exports of readymade garments rose 17.3 per cent to $ 1.1 billion. According to Chandrima Chatterjee, secretary general of Confederation of Indian Textile Industry, the exports in October too are strong as the demand in markets like the US and EU is promising. “Further, we have increased our market share in these countries,” she said.
Similarly, home textiles segment is set to grow by 6-8 per cent this fiscal, riding on resilient demand from the US and expansion in the domestic market, finds Crisil. Home textiles derive 70-75 per cent of its revenue from exports and the US alone accounts for 60 per cent. However, the industry is worried about cotton and man-made fibre prices. Indian spot cotton prices dropped from 87 to 83 cents per pound over the past month as the new cotton arrivals started. However, ICE December cotton futures are still priced in the range of 67-75 cents per pound, finds Kedia Commodities. The industry does not expect further correction as the MSP rate of cotton is higher than the market rate and MSP will limit the pressure on prices. “Apart from higher MSP, the add-on of 11 per cent import duty will restrict prices from further softening. This will make our cotton and cotton products less competitive in the international market,” said K Selvaraju, secretary general of Southern India Mills Association. Currently, on shorter staple cotton below the length of 32 mm carries 11 per cent duty and the trade sells cotton to the yarn mills after adding the duty.
Polyester and viscose prices too are making Indian products less competitive. “Indian polyester prices are 25 per cent higher than Chinese and viscose too is 12-15 per cent higher. Moreover, the Quality Control Orders issued by the Bureau of Indian Standards is making import of polyester and viscose difficult for the manufacturers,” he said. “Despite the growth in apparels, total exports of textiles have been stagnant for the past few years. Exempting the import duty during the off-season and easing QCO requirements can help the exports grow,” said Selvaraju.
Source: Deccanchronicle.com
FTA investment chapters may be limited to promotion, facilitation
The Finance Ministry does not want Bilateral Investment Treaties (BITs) to be negotiated as part of Free Trade Agreements (FTAs) that India is working on with partner countries and has suggested to the Commerce & Industry Ministry that the two be kept separate, sources have said. “The Commerce & Industry Ministry has been in talks with the Department of Economic Affairs on the issue of investments. The DEA does not want BIT to be part of FTAs. It wants that investment chapters in FTAs should only include general issues related to investment promotion and facilitation and not issues related to protection or arbitration,” a source tracking the matter told business line. BITs are agreements between two countries for the protection of investments in each other’s territories and assures a minimum standard of treatment and non discrimination. MODEL BIT The Finance Ministry formulated a model BIT in 2016 mostly to guard against multinational companies filing cases against India based on past BITs signed with their respective countries at international arbitration courts. These resulted in several unfavourable rulings for the country and led to payments of substantial amounts as damages to the companies. After termination of a host of BITs in 2017, the Finance Ministry wants all new BITs signed with partner countries to be modelled on the model BIT of 2016. BITs are pacts between two countries for the protection of investments in each other’s territories While many countries have been finding it difficult to negotiate on the basis of the model treaty which they found too stringent, India has managed to sign a few pacts recently with countries such as Belarus, Taiwan, Kyrgyzstan, Brazil and most recently, the UAE. The biggest problem that has been cited by many countries is related to provisions on Investor State Dispute Settlement (ISDS) in the model BIT that requires investors to attempt to resolve disputes through India’s legal system for at least five years before seeking international arbitration. “There is a realisation that the FinMin may have to make some concessions in the model BIT provisions while finalising the pacts with various countries. It has already been doing so in case of countries such as the UAE. But it wants decisions on BITs to happen independently of the giveand take of FTAs,” the source added. PORTFOLIO COVERAGE The conditions eased by India for UAE in the BIT includes the coverage of portfolio investments, such as stocks and bonds, and reduction in the local remedies’ exhaustion period from five years (in the model BIT) to three years in the actual pact. At present, India is negotiating FTAs with a number of partners, including the UK and the EU. Interestingly, the investment chapter in the IndiaEFTA FTA, signed recently, deals only with investment promotion and facilitation and does not contain investment protection features and ISDS. The EFTA includes Iceland, Liechtenstein, Norway, and Switzerland.
Source: Business Line
Synopsis Indian and Kazakh business leaders convened at the India-Kazakhstan Business Conference in Astana to explore partnerships in electronics and engineering. Ambassador Prasad highlighted India's potential in these sectors, emphasizing opportunities in digital transformation, infrastructure development, and manufacturing. The conference aimed to boost bilateral trade and foster joint ventures between companies from both nations. The India-Kazakhstan Business Conference on Electronics Equipment and Engineering Goods was held on November 11 in Astana, at the Astana International Financial Centre (AIFC). The event brought together prominent business leaders, government officials, and industry experts to discuss opportunities for increased trade, joint ventures, and collaboration in the electronics and engineering sectors.
Source: Economic Times
India’s factory output, measured by the Index of Industrial Production (IIP), grew 3.1% on year in September, as against (-)0.1% in August, mainly due to an uptick in manufacturing activity, data released by the statistics ministry showed on Tuesday. The uptick came amidst a series of high-frequency data indicating a slowdown in economic activities, especially a sulp in urban consumption. Manufacturing growth in September stood at 3.9% as against 1.1% in August, and mining growth stood at 0.2% as compared to (-)4.3%. Electricity growth in September came in at 0.5% as against (-)3.7% a month ago. On a sequential basis, the IIP grew 0.7% in September, marking the first month-on-month acceleration in activity since May. The uptick in manufacturing activity was driven by acceleration in output of capital-intensive sectors, such as electrical machinery and equipment, transport equipment, and petroleum. But export-oriented sectors of apparel, textiles and leather slowed further in September, indicating sluggish external demand. Electricity output during September, also higher on year, grew at a modest pace, due to above-normal rains which curtailed power demand. In October and November, the power supply has picked up at a faster rate.
On the use-based level, meanwhile, all six sub-sectors in September saw a rise in growth levels from August. Consumer durables output’s growth rose to 6.5% from 5.3%, and consumer durables to 2% from (-)4.5%. “The improvement in growth of consumer goods output is a positive for consumption demand in the economy,” said India Ratings and Research (Ind-Ra) economists. According to DK Joshi, chief economist, Crisil, infrastructure and construction related goods picked up as well once rains ebbed. “Industrial activity may rise further in coming months as the festive season boosts consumption demand,” he said. In the first half of FY25, IIP growth has averaged 4%, lower than 6.2% from the corresponding period of last year, mainly due to unfavourable base effects, and weather-related disruptions. The second quarter particularly witnessed a growth of 2.6%, which is the lowest in seven quarters. In October, an unfavourable base effect is likely to dent the industrial activity print (economists estimate: 2%), but in the remaining months, the overall IIP growth is likely to be higher, as the impact of a healthy monsoon on rural demand will kick in, supporting consumption, say economists. “Looking forward, we anticipate a notable boost in industrial output from Oct’24 onward, spurred by increased government spending on infrastructure project,” Suman Chowdhury, Chief Economist, Acuite Ratings & Research. “However, we expect IIP growth to expand at a more tempered pace of around 4.5-5.0% in FY25, down from 5.9% in FY24. This may weigh on overall economic performance,” he said.
Source: Financial Express
Synopsis President-elect Donald Trump selected seasoned politicians Marco Rubio as Secretary of State and Mike Waltz as National Security Advisor. Both are considered hawkish on China and Iran, aligning with Trump's stance, but have differed with him on issues like Russia and NATO. US President-elect Donald Trump is famously unconventional, but he made conventional picks for his two top foreign policy positions. That could be reassuring to American allies, while China and Iran have reasons to be wary. Trump on Wednesday announced his choice of Sen. Marco Rubio for secretary of state. Two days earlier, he picked Rep. Mike Waltz for national security adviser. Both men share Trump's hard-line stance on China and Iran. They have shown themselves willing to adapt their foreign-policy positions to echo aspects of Trump's more isolationist "America First" approach - a requirement for anyone serving under a president who demands absolute loyalty. But both are fairly mainstream conservatives with foreign policy experience who have previously differed with Trump on Russia, NATO and other issues. They've also been open to working with Democrats - a point underscored when Sen. Mark Warner, the Democratic chairman of the Senate Intelligence Committee, said Rubio would be a "strong voice for American interests" abroad. Rubio and Waltz stand in contrast to some other national security selections. Trump named Pete Hegseth, a Fox News host untested on the global stage, as defense secretary. He picked a congresswoman with little foreign policy experience, Rep. Elise Stefanik, as ambassador to the United Nations. His choice for ambassador to Israel, former Arkansas Gov. Mike Huckabee, rejects the two-state solution to the conflict with Palestinians. And U.S. allies may be relieved that Rubio was selected over Richard Grenell for secretary of state. Grenell is an ardent and combative Trump advocate and former diplomat and intelligence official, with a reputation for favoring autocratic strongmen abroad. Rubio, a 14-year veteran of the Senate, is a senior member of the Senate Intelligence Committee and Foreign Relations Committee. His roots as the son of Cuban immigrants who worked as a bartender and a hotel maid after coming to the United States helped shape his tough positions on the leftist governments of Cuba and Venezuela. While Trump has alarmed U.S. allies in Europe with his criticism of the NATO military alliance and praise of Russian President Vladimir Putin, whose war on Ukraine has galvanized European fears of Russian expansionism, Rubio was instrumental in the Senate in securing the U.S. position in NATO. He and Democratic Sen. Tim Kaine spearheaded legislation to bar any president from pulling the U.S. out of NATO without Senate approval or an act of Congress. But Rubio, like Waltz in the House, has altered his public statements and legislative votes to more closely align with Trump's criticism of the Biden administration's backing of Ukraine as it battles invading Russian forces. After early votes and supportive statements for Ukraine after Russia's 2022 attack, Rubio and Waltz more recently voted against additional military aid to Ukraine. Rubio, like Trump, has increasingly stressed the need to end the war. That's in contrast to Ukraine supporters in both parties who say the U.S. must support Ukraine's fight so it gets the best possible terms in any eventual cease-fire. "I don't think he (Trump) puts people in positions that are going to disagree with him. He wants people to be loyal, and I don't think he's looking for people that are going to challenge his beliefs," said Kelly Grieco, a senior fellow at the Stimson Center, a Washington-based research institute. "So I think this is actually quite revealing, probably, of what the direction of U.S. policy will be, that it will be really hawkish on China in particular. And I think also on Iran." In China, analysts consider Rubio and Waltz to be "ultra-hawkish" toward Beijing and have taken to calling them part of the "Florida faction" in foreign policy, since both are from the state. Trump piled tariffs on China in his first term and promises more tariffs in his next one. Rubio has argued for a more confrontational approach toward China, and he has been a vocal supporter of Taiwan, which Beijing sees as Chinese territory. Rubio is known in China as the "anti-China vanguard" for his ideologically driven, anti-communism stance. He landed on Beijing's blacklist in 2020 over his support for the minority Uyghurs in China's far western region of Xinjiang and for Hong Kong activists. He co-chaired the bipartisan Congressional Executive Commission on China, which focuses on human rights, and introduced and supported numerous bills on China's rights issues. The sanctions Beijing imposed on Rubio bar him from visiting the country. It's unclear if China's foreign minister will meet with him given the ban, or how the ban will otherwise affect his dealings with Chinese officials. For his part, Waltz is a former Green Beret with combat tours in Afghanistan and the Middle East, a former defense policy director in the Pentagon, and a senior member of the House committees for armed services, intelligence and oversight. He's supported Western backing for Ukraine, saying doing nothing would invite further Russian aggression in Europe and draw in U.S. troops. But Waltz increasingly emphasizes the importance of Ukraine's neighbors stepping up, saying Europeans should be spending as much on Ukraine's defense as the United States does. In a Nov. 2 article he co-wrote for The Economist, Waltz argued that China has benefited from the Biden administration's failures to deter conflicts in Europe and in the Middle East. In 2021, Waltz introduced a resolution calling on the U.S. Olympic Committee to withdraw from the 2022 Winter Games in Beijing. "The world cannot legitimize the CCP's acts of genocide in Xinjiang, destruction of the democratic rights of Hong Kong, and dangerous suppression of the coronavirus outbreak in Wuhan that cost lives by sending delegations to Beijing," Waltz said then, referring to the Chinese Communist Party. At a daily briefing in Beijing, Lin Jian, a spokesman for the Chinese foreign ministry, said China would not comment on Trump's appointments. Shen Dingli, a Shanghai-based international relations expert, noted the gap between Trump and his nominees on China. "Trump didn't say China was an enemy during his first term and the presidential elections, but the hawkish officials he has appointed may believe China is an enemy to some extent,"
Source: Economic Times
Turkiye’s overall export unit value index increased by 3.6 per cent year on year (YoY) in September this year, according to the Turkish Statistical Institute (Turkstat).
The index increased by 3.2 per cent YoY for manufactured goods (except food, beverages and tobacco) and decreased by 12.1 per cent YoY for fuels.
The overall export volume index dropped by 5.2 per cent YoY in the month. This index increased by 1.3 per cent YoY for manufactured goods (except food, beverages and tobacco).The country’s overall import unit value index increased by 4.7 per cent YoY in September. This index increased by 4.3 per cent YoY for manufactured goods (except food, beverages and tobacco). The overall import volume index decreased by 5.8 per cent YoY in the month. This increased by 2.1 per cent for manufactured goods (except food, beverages and tobacco).The calendar- and seasonally adjusted export volume index, which was 155.5 in August this year, decreased by 4.6 per cent to 148.4 in September. The calendar-adjusted export volume index decreased by 5.2 per cent YoY from 160.3 in September last year to 151.9 in the same month this year.
The calendar- and seasonally adjusted import volume index decreased by 0.7 per cent from 117.9 in August this year to 117 in September. The calendar-adjusted import volume index decreased by 5.8 per cent from 122 in September last year to 114.9 in the same month this year. Turkish trade sales volume rose by 12.7 per cent year on year (YoY) and by 3.2 per cent month on month (MoM) in September this year, a Turkstat release said.In the same month, wholesale trade sales volume increased by 13 per cent YoY and 4.1 per cent MoM, while retail trade sales volume increased by 15.9 per cent YoY and 2.3 per cent MoM.
Source: IFA
China’s latest fiscal announcements seem aimed at addressing medium-term structural impediments to economic growth from strained local government finances, but are unlikely to offer an immediate boost or offset deflationary risk, according to Fitch Ratings. Even without new explicit fiscal stimulus, China retains room to accelerate public spending in the fourth quarter (Q4) this year under the March 2024 budget and downside risks to Fitch’s 4.8-per cent growth forecast for 2024 are limited, the rating agency said in a release. China’s fiscal stance turned expansionary in Q3 2024, after remaining neutral for most of the year amid slow spending. Fitch still expects a budget deficit of 7.1 per cent of gross domestic product (GDP) this year—up from 5.8 per cent last year. Fitch Ratings believes fiscal stimulus will remain incremental and responsive to downside risks, including the likelihood of rising trade tensions following the US election, providing a floor to growth, which it still forecasts to moderate to 4.5 per cent in 2025. The rating agency expects the fiscal deficit to remain elevated over the medium term, potentially exceeding the levels it anticipated during its April 2024 review, when it revised the outlook on China’s ‘A+’ rating to negative. This will keep government debt on a rising trend and could further pressure China’s sovereign rating, depending on how much fiscal and monetary policy stimulus accelerates underlying demand and eases deflationary pressure.
Source: Fitch ratings
Drewry data shows there have now been four or five years of huge ocean freight rate volatility and the UK-based maritime research consultancy has cautioned its shipper, forwarder and carrier customers to expect little change in 2025, likely the fifth consecutive year of high volatility. Drewry, which tracks both ocean contract rates and spot rates, found that average freight rates on the major East-West routes decreased by about 60 per cent in 2023 and are expected to have risen by about 20 per cent in 2024 year on year (YoY). “Our forecast model for the main scenario of expected US port strikes in Q1 2025 shows that ocean contract rates on routes to the US will rise in 2025, despite the addition of substantial new ship capacity. We also anticipate that spot rates on East-West routes will decline in the second half of 2025,” an article on the company’s website noted. This year, rates in the spot market appeared to have peaked in July and saw three months of rapid decline but started rising again in late October. In the contract market, according to shipper/members of Drewry Benchmarking Club, exporters and importers have had to battle with carriers about requests to accept Red Sea and peak season surcharges. Shippers need to be aware that the shipping industry will continue to be disrupted and that there are risks and a need for contingency plans and active vendor management, cautions Drewry. Resilience will require a different way of vetting, selecting and working with ocean carriers or third-party logistics providers and greater attention to assessing and responding to geopolitical risks, it noted.
Source: Hellenic Shipping News
