CITI-NEWS LETTER€¦ · Narendra Modi, has approved the Credit Linked Capital Subsidy and...
Transcript of CITI-NEWS LETTER€¦ · Narendra Modi, has approved the Credit Linked Capital Subsidy and...
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15th February
2019
Cabinet approves continuation of Credit Linked Capital Subsidy and
Technology Up-gradation Scheme (CLCS-TUS) beyond 12th Plan for three
years from 2017-18 to 2019-20
Cabinet to soon consider relaxing local sourcing norms for single brand
retailers
European Parliament endorses free trade agreement with Singapore
Indonesia, Australia to sign trade deal in March: trade minister
Cotton and Yarn Futures
ZCE - Daily Data (Change from previous day)
MCX (Change from previous day)
Feb 2019 20130 (-20)
Cotton 15735 (-90) Mar 2019 20430 (0)
Yarn 24855 (0) Apr 2019 20720 (0)
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2 CITI-NEWS LETTER
-------------------------------------------------------------------------------------- Cabinet approves continuation of Credit Linked Capital Subsidy and
Technology Up-gradation Scheme (CLCS-TUS) beyond 12th Plan for
three years from 2017-18 to 2019-20
Cabinet to soon consider relaxing local sourcing norms for single brand
retailers
Measures soon to boost textiles exports: Official
Indo-US talks: Jobs, tech transfer top agenda; ecommerce, tariffs
skipped
Scope for Indian companies to increase supplies to UN
Farmers hold on to stock but cotton rates dip
Institute of Directors’ MSME meet in Chennai tomorrow
WB govt calls for tripartite meet to resolve jute industry
WPI inflation for apparel up 1.3% in January 2019
Min of Textiles honours 12 weavers and artisans for their outstanding
work in handloom and handicrafts sector
Banks step up lending to corporates
Strata Celebrates Grand Opening of New Manufacturing Facility in
India
------------------------------------------------------------------------------------------------
European Parliament endorses free trade agreement with Singapore
Indonesia, Australia to sign trade deal in March: trade minister
Cambodia will not die if EU withdraws EBA trade preferences: PM
Egyptian Cotton pilots BCI cotton project
Collection, sorting imp for fibre2fibre market: WRAP
----------------------------------------------------------------------------------
NATIONAL
---------------------
GLOBAL
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3 CITI-NEWS LETTER
NATIONAL:
Cabinet approves continuation of Credit Linked Capital Subsidy and
Technology Up-gradation Scheme (CLCS-TUS) beyond 12th Plan for three
years from 2017-18 to 2019-20
(Source: PIB, February 13, 2019)
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri
Narendra Modi, has approved the Credit Linked Capital Subsidy and Technology Up-
gradation Scheme (CLCS-TUS) with a total outlay of Rs.2900 crore. This scheme aims at
improving the competitiveness of MSMEs by integrating various ongoing schematic
interventions aimed at up-grading technology through Credit Linked Capital Subsidy
(CLCS), hand holding for zero defect zero effect manufacturing (ZED), increasing
productivity through waste reduction (Lean), design intervention (Design), cloud
computing (Digital MSMEs), facilitation of intellectual property (IPR) and nurturing new
ideas (Incubation).
Special provisions have been made in this scheme to promote entrepreneurship for
SC/STs, women NER, Hill States (Jammu & Kashmir, Himachal Pradesh & Uttarakhand)
Island Territories (Andaman & Nicobar and Lakshadweep) and the Aspirational
Districts/ LWE Districts, as in these cases the subsidy shall be admissible also for
investment in acquisition /replacement of plant & machinery / equipment & technology
up-gradation of any kind. The scheme would be demand driven. But its coverage has been
made more inclusive.
In addition, the scheme through Zero Defect & Zero Effect, component will promote
reduction in emission level of green house gases and improve the competitiveness
through reduction in defect / wastage during the manufacturing process of the products.
It will also promote the innovation, digital empowerment of MSMEs, design interventions
and support the protection of intellectual property of MSMEs.
The scheme will facilitate technology up-gradation to MSEs, improvement in Quality of
products by MSMEs, enhancement in productivity, reduction in waste and shall promote
a culture of continuous improvement.
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4 CITI-NEWS LETTER
Cabinet to soon consider relaxing local sourcing norms for single brand
retailers
(Source: Economic Times, February 13, 2019)
The Cabinet is expected to soon consider a proposal of FDI-linked relaxation for
mandatory 30 per cent local sourcing norms for foreign single brand retailers by allowing
them more time to comply with regulations, sources said. The commerce and industry
ministry has already circulated a draft cabinet note seeking views of different ministries
including the department of economic affairs on the proposal, one of the sources said,
adding that "after receiving the comments, the ministry would soon approach the cabinet
for its consideration".
With a view to attract big players such as iPhone maker Apple, as per the proposal, single-
brand retail firms may be permitted to open online stores before setting up brickand-
mortar shops if they bring in over USD 200 million foreign direct investment (FDI).
But such firms would have to set up brick-and-mortar shops within two years of starting
online sales.
Currently, online sale by a single-brand retail player is allowed only after opening of
physical outlet.
Retail traders may also be allowed to adjust the incremental sourcing of goods from India
for global operations during the initial 6-10 years, from the current five years (beginning
April 1 of the year of the opening of first store), against the mandatory sourcing
requirement of 30 per cent of purchases from India. These relaxations too would be
subject to quantum of FDI one brings in India.
While six years' time would be given to a retailer that invests USD 100 million in the
sector, 8 years and 10 years time would be given to those who bring in USD 200 million
and USD 300 million foreign inflows in the sector, respectively. In January 2018, the
government allowed 100 per cent FDI in the sector, permitting foreign players in single-
brand retail trade to set up own shops in India without government approval.
That time, the government also relaxed mandatory local sourcing requirement of 30 per
cent by stating that a foreign retailer would be able to get credit from incremental rise in
sourcing for its global operations from India towards the mandatory 30 per cent local
sourcing requirement for its business in the country. In 2016, Apple India had sought
relaxation in the local sourcing norms to set up single brand retail stores in India.
During April-September 2018-19, FDI in India declined by 11 per cent to USD 22.66
billion.
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Measures soon to boost textiles exports: Official
(Source: The Hindu BusinessLine, February 13, 2019)
The Centre will soon announce measures to boost exports of apparels and textiles which
will be compliant with the World Trade Organization norms and help exporters meet
competition from countries such as Bangladesh and Vietnam.
“Our exporters of apparels and made-ups have been finding it difficult to compete with
countries such as Bangladesh and Vietnam, which get zero-duty access to markets such
as the EU. Over the last few months, we have held discussions with the Departments of
Commerce and Revenue and we will shortly come up with some measures for the sector
which would also be WTO-compliant,” Raghvendra Singh, Secretary, Ministry of Textiles,
said at a press conference on Wednesday.
Singh said ensuring that export schemes were WTO-compliant was an important issue
now and the Ministry was working on the recommendations of the committees set up to
examine WTO compatibility of schemes.
The Textiles Secretary, however, did not clarify on how long the popular Merchandise
Export from India Scheme (MEIS), which is one of the five schemes challenged by the US
at the WTO, will continue. The US wants India to do away with the scheme as the country
had crossed the average per capita income level of $1,000 some time back and was no
longer eligible to give export sops.
Singh also indicated that the Rebate of State Levies (RoSL) scheme could be expanded to
increase the level of benefits to exporters. The RoSL does not flout global trade rules as it
involves refund of taxes and levies paid by exporters and is not a subsidy.
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Indo-US talks: Jobs, tech transfer top agenda; ecommerce, tariffs skipped
(Source: Economic Times, February 14, 2019)
Both sides to set up groups on financial services, healthcare & defence to boost trade.
Job creation and technology transfer dominated the India-US talks on Thursday while the
contentious issues related to data localisation, ecommerce and US’ likely withdrawal of
benefits to Indian exports were not discussed.
The two sides will set up groups on financial services, healthcare and defence to accelerate
bilateral trade and investments.
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The three working groups will be in addition to four such groups which were established
to deal with issues concerning energy, water and environment; ICT, emerging
technologies and digital infrastructure; entrepreneurship, inclusive growth and
promoting small business; and infrastructure and manufacturing.
“Suresh Prabhu and Wilbur Ross had one to one bilateral telephone conversation and
discussed various aspects of India-US trade and commerce relations,” the commerce and
industry ministry said in a statement.
However, in the absence of US secretary of commerce Wilbur Ross, who cancelled his visit
due to inclement weather and technical problems, there was no joint statement. He
participated in most of the sessions remotely via teleconference.
Officials who attended the India-US Commercial Dialogue and the CEO Forum said there
was no discussion over the contentious trade issues.
India recently tightened foreign direct investment policy for ecommerce firms and the US
is likely to withdraw preferential benefits to Indian exports. “They could have come up if
Ross was here,” said one official.
Another official said the issue of trade deficit, that the US is concerned about, was also
not discussed but both sides emphasised on employment opportunities in their countries.
The two countries have been embroiled in a series of trade spats including the eligibility
of Indian products for preferential or duty-free access to its market under the Generalized
System of Preferences (GSP), US’ demand for unconditional approval to its dairy exports
and lower tariffs on ICT products.
These issues are being negotiated with the United States Trade Representative as part of
a trade package.
Separately, India also has put on hold its plan to impose retaliatory tariffs on certain
American imports in response to heavy duties on imported steel and aluminium items by
the US.
SME Focus
“India’s MSME ministry was made part of the process for the first time,” the second
official said.
Appreciating the pivotal role of small businesses, including small and medium enterprises
(SMEs) in the areas of manufacturing and services, the sides expressed interest in
facilitating partnerships among businesses and institutions with a view to encourage best
practices, conducive policies, and collaboration for SMEs in both countries.
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“The US Department of Commerce has taken the initiative to organise Trade Winds event,
which will bring in a lot of SMEs having interest in India in May, 2019,” the government
said in the statement. Both sides agreed to constitute a private sector-led SME initiative
on the sidelines of this event.
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Scope for Indian companies to increase supplies to UN
(Source: The Hindu Business Line, February 15, 2019)
India’s share as a supplier is over $900 million
Indian companies stood to benefit in more ways than one by becoming suppliers, of both
products and services, to the United Nations and its agencies.
The multi-million dollar annual business opportunity that existed apart, what would
benefit them eventually would be fine-tuning their operations to conform to the norms
mandated by the UN for the suppliers.
This was a message speakers sought to underscore at a seminar on ‘Business
opportunities with the United Nations’ here on Thursday while pointing out that India’s
share as a supplier was a little over $900 million of the over $18 billion total procurement
by the UN and the agencies in 2017.
Addressing the programme, organised by trade and industry body FTAPCCI, Senior
Procurement Officer of the UN Procurement Division Bruno Maboja said the $900
million is the value of the products and services provided by the Indian companies.
“Lot of Indian goods are supplied to the UN but not by companies from India. You have
middlemen who come all the way from Europe, China, they come to India -- get the goods
-- and supply to the UN,” he said. The reason we are here, he told the gathering comprising
representatives of various companies, “is because you are capable of supplying goods to
the UN directly for the benefit of the country. Why should somebody else come and get
them from India and pay you very little and supply to the UN at a higher price? We are
interested in getting them at a cheaper price from you directly… it is a fair deal to you also
if we come to you directly,” Mr. Maboja said. Of the over $18 billion total procurement,
the value of supplies made by UN Procurement Division was a little over $3 billion.
Industries and IT Secretary Jayesh Ranjan urged the companies to educate themselves
about the procedures involved in becoming suppliers to the UN and its agencies. “You
need to be very ethical in your dealings,” he added.
The Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry,
he said, should set up a help desk or a cell to keep track of the UN tenders and
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procurement requirements and inform the prospective exporters. He suggested that the
UN consider Hyderabad for setting up a regional procurement centre.
Regional Passport Officer and Head of MEA Branch Secretariat in Hyderabad E.Vishnu
Vardhan Reddy said India is the one the leading suppliers to UN and the major exports
from the country are pharmaceuticals, contraceptives and vaccines.
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Farmers hold on to stock but cotton rates dip
(Source: Shishir Arya, Times of India, February 14, 2019)
Prime Minister Narendra Modi’s visit to Pandharkawda, which is a major hub for cotton
trade, coincides with a steep fall in price of the commodity, the main crop of the region.
Hoping to get a higher rate, farmers were sitting on a major part of their produce even
though the harvest was over in November. The rates have come down to the level of
minimum support price (MSP) or even lower in some places.
The cultivators were banking on global trends hoping for a bumper price in the days to
come. Cotton growers of Vidarbha had hopes on the US-China trade war which was
expected to have a favourable tide for Indian farmers.
Both US and China had imposed tariff barriers on each other which led to the scope of
demand for cotton from India in both the countries. Aware of the developments, the
farmers hoped that the rates would ultimately cross over Rs 6,000 a quintal in local
markets.
However, the calculations have failed. An overall slump in the economy has hit the
demand for cotton too. There are signs of the conflict easing with a series of negotiations
taken up recently. In the last 20 days, the rates have slipped below the minimum support
price (MSP) level of Rs5450 a quintal or are just at par in some of the pockets.
“A major dip of Rs500 was seen in the last fortnight,” said sources. The MSP was Rs4,500
earlier and it was raised to Rs5,450 recently by the central government last year.
The season began on a bullish note, followed by a dip. Last month the rates had again
touched Rs5800-5900 a quintal and farmers were hoping for a further jump beyond
Rs6000 level. However, the trend reversed instead.
In Pandharkawda market cotton has touched Rs5450 to Rs5300, said Suresh Bolenwar a
farm activist and a cotton grower himself. A little ahead in Telangana the rates are further
down at Rs5115-5120 a quintal.
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9 CITI-NEWS LETTER
Sudhir Kothari, a member of agriculture produce marketing committee (APMC) at
Hinganghat in Wardha district, said a large number of farmers had been waiting for the
rates to improve. “Now as the rates have touched the MSP, government procurement
through cotton corporation of India (CCI) has also started,” he said.
Lorena Ruiz, an economist at International Cotton Advisory Committee (ICAC) in New
York, said other cotton-growing countries too are expecting to benefit from the US-China
trade war. “But there needs to be an overall situation which can create a demand for the
commodity,” she said.
The IMF has cut its growth forecast for China to 3.7% from 3.8%. The consumption
estimates for China, from where buying was expected, has also been lowered.
Brazil is also hoping to gain from the trade war and has increased its area under cotton.
It is expected to sell its carry forward stock to China, apart from the forthcoming harvest,
on getting a good rate.
Keshav Kranti, who heads the technical coordination section of ICAC, said that the rates
had touched 100 cents a pound in July — a 10-year high. “However, the rates have come
down to 80 cents now. At this level, experts see little chance of rates further going down.
Rather, the bearish trend can increase the demand eventually,” he said.
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Institute of Directors’ MSME meet in Chennai tomorrow
(Source: The Hindu Business Line, February 14, 2019)
Institute of Directors (IOD), the apex body of corporate directors in the country, will
organise the first edition of its Micro, Small and Medium Enterprises (MSME) Summit
2019 in the city on February 16.
The theme for the summit, ‘Roadmap towards Excellence’, will bring together trade
associations and delegates from the MSME sector to gain insights into emerging
opportunities and prospects for the segment.
Sectoral issues
The summit will deliberate on the key challenges faced by the sector, such as ease of doing
business, easy access to credit, impact of major policy reforms despite various initiatives
taken by the Central and State governments to promote the MSME sector.
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Currently, MSME sector contributes about 7 per cent of India’s Gross Domestic Product
(GDP), 45 per cent of total manufacturing output, and 40 per cent of Indian exports and
employs over 117 million people.
Growth prospects
“MSMEs are in a unique position to become global players attracting partners with
technology and funds. These enterprises impart the resilience to withstand economic
upheavals and maintain a reasonable growth rate since being indigenous is the key to
sustainability and self-sufficiency,” said MS Sundara Rajan, Chairman, IOD - Chennai
region, and former CMD of Indian Bank.
Event partners
The event is supported by MSME Development Institute and the Union Ministry of Micro,
Small and Medium Enterprises. BusinessLine is the media partner.
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WB govt calls for tripartite meet to resolve jute industry
(Source: Business Standard, February 14, 2019)
The West Bengal government has called for a tripartite meeting to resolve the impasse
between the jute mill owners and the workers' trade unions, which have threatened to go
on an indefinite strike from March 1 over their unfulfilled demands.
A notice issued by the state labour department earlier this week invited the jute unions
on February 18 to discuss their charter of demands with the mill owners.
Earlier the meeting was scheduled to be held Thursday.
All trade unions in the jute sector, barring Indian National Trinamool Trade
Union Congress, have agreed to join the strike from March 1 to press for their demands,
including wage revision and implementation of Minimum Wages Act.
The jute sector employs over two lakh workers in more than 60 mills in the state.
The strike, if not prevented, may have an impact on the vote bank of political parties
across the jute belts of Howrah, North 24 Parganas and Hooghly districts.
The general election is due this summer.
The jute industry has not seen any major wage revision after 2011. The state government,
in the last tripartite meeting held on January 17, had decided to give an interim relief of
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11 CITI-NEWS LETTER
Rs 70, raising the workers' wage to Rs 327 per day till the new wage agreement was
finalised.
The unions, however, contended that the interim benefit was a unilateral decision of
the state government.
A former chairman of Indian Jute Mills Association, a body of mill owners, said paying
anything more than Rs 327 would not be possible as "margins are already under pressure
in the jute business".
"The government should take steps to ensure that there are no disruptions. Strikes will
only help the central government to dilute mandatory packaging order in favour of the
plastic industry," he said.
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WPI inflation for apparel up 1.3% in January 2019
(Source: Fibre2Fashion, February 14, 2019)
India’s annual rate of inflation, based on monthly wholesale price index (WPI), eased to
ten-month low of 2.76 per cent for the month of January 2019. The index for apparel rose
by 1.3 per cent to 140.2 in January, according to the provisional data released by the Office
of the Economic Adviser, ministry of commerce and industry.
The official WPI for all commodities (Base: 2011-12 = 100) for the month of January 2019
declined by 0.7 per cent to 119.2 from the previous month’s level of 120.1, the data showed.
The index for manufactured products (weight 64.23 per cent) for January 2019 declined
by 0.3 per cent to 117.9 from the previous month’s level of 118.3. The index for
‘Manufacture of Wearing Apparel’ sub-group rose by 1.3 per cent to 140.2 from 138.4 for
the previous month due to higher price of woven apparel except fur apparel (2 per cent).
The index for ‘Manufacture of Textiles’ sub-group, on the other hand, declined by 0.3 per
cent to 118.8 from 119.2 for the previous month due to higher price of lower price of
synthetic yarn, knitted and crocheted fabrics, cordage, rope, twine and netting, other
textiles, texturised and twisted yarn, and weaving and finishing of textiles (1 per cent
each). However, the price of viscose yarn (2 per cent) and woollen yarn (1 per cent) moved
up.
The index for primary articles (weight 22.62 per cent) declined by 0.1 per cent to 134.5
from 134.7 for the previous month. The index for fuel and power (weight 13.15 per cent)
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12 CITI-NEWS LETTER
declined by 4.1 per cent to 99.3 from 103.5 for the previous month due to lower price
of ATF, furnace oil, bitumen, LPG, naphtha, kerosene, petrol and HSD.
Meanwhile, the all-India consumer price index (CPI) on base 2012=100 stood at 2.05
(provisional) in January 2019 compared to 2.11 (final) in December, 2018 and 5.07 in
December, 2018, according to the Central Statistics Office, ministry of statistics and
programme implementation.
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Min of Textiles honours 12 weavers and artisans for their outstanding work
in handloom and handicrafts sector
(Source: KNN India, February 14, 2019)
Ministry of Textiles honoured 12 weavers and artisans from different parts of the country
for their outstanding work in handloom and handicrafts sector at the event titled
‘National Conclave on Creating Synergy for MSMEs in Textiles Sector’.
An exhibition showcasing achievements of the MSMEs in textiles sector was also held
during the conclave. A booklet on Ease of Doing business was also released, which is
available in ten languages-Hindi, Manipuri, Assamese, Bengali, Odia, Gujarati, Marathi,
Tamil, Telugu and Kannada.
Fifteen MoUs were signed at the event to facilitate foreign trade of textiles and handicrafts
items and a short film on the outreach support programme of the textiles ministry was
also screened.
Under the Prime Minister’s support and outreach 100 days programme, 100 districts were
identified in various sectors, and among these, 39 districts were identified for the textiles
sector.
Out of these 39 districts, 12 were identified for handlooms, 19 for handicrafts, and eight
for powerloom.
Also, various activities were undertaken in identified districts for creating synergy for
MSMEs in textile sector like holding camps for Mudra loan in collaboration with local
bank, enrolment of beneficiaries on e-dhaga, distribution of tool kits to beneficiaries,
registration and distribution of Pehchan cards to artisans and weavers, popularization of
24x7 help line, quality certification and social security.
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13 CITI-NEWS LETTER
Speaking on the occasion, Minister of Textiles, Smriti Zubin Irani, said that during the
outreach programme the Government has ensured that the relevant information related
to the Central Government schemes reaches beneficiaries.
She said that Rs. 6500 crore Mudra loan was sanctioned to Textiles sector MSMEs.
She further stated that as many as 2.6 lakh weavers and craft persons were brought under
the social security network during the 100 days outreach programme.
Textiles Minister informed about the Pradhan Mantri Shram Yogi Mandhan Yojana for
providing pension of Rs. 3000 per month to people working in unorganized sector on
payment of small premium.
Addressing the gathering, Minister of Social Justice and Empowerment, Dr. Thawar
Chand Gehlot said that 70% of people working in MSMEs of Textile Ministry belong to
SC/ ST and OBC categories and urged the weavers and handicraft persons to avail the
benefit of the schemes of his Ministry.
Secretary Textiles, Raghvendra Singh said that in view of the crucial role played by
MSMEs in the creation of jobs and promoting inclusive economic growth, the textiles
Ministry is implementing various schemes and programmes for small business in textiles
and handicrafts sectors.
He said during the outreach programme Textiles Ministry officials worked in
coordination with state and district administration. Textiles Secretary said exhibitions
were held in targeted districts to promote sales of their products, MUDRA loans were
mobilized by involving public sector banks.
Twenty thousand new applications were received from craft persons for credit under
MUDRA scheme. Technology upgradation assistance was provided to 12,776 craft
persons in 31 districts, he added.
He stated “Over 1.30 lakh Pehchan ID cards have been issued to weavers and artisans to
facilitate them to claim the benefits and services they are entitled to. Other services such
as yarn passbooks marketing support, social security coverage were also extended to
the handloom weavers through outreach camps.”
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Banks step up lending to corporates
(Source: G Naga Sridhar, The Hindu Business Line, February 14, 2019)
Power, roads and ports, as well as services sectors get a fillip
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14 CITI-NEWS LETTER
India’s business environment appears to be turning positive with an increase in corporate
loans being extended by major banks.
The growth in corporate lending, which started from the beginning of the current
financial year and has been described as ‘green shoots’ by experts, now appears to have
gained ground, going by the third quarter numbers of major lenders.
State Bank of India reported a 20.67 per cent growth in total corporate lending at ₹7.74
lakh crore as of December 31, 2018, against ₹6.42 lakh crore in the same period last year.
In the third quarter of last fiscal, SBI’s corporate credit was muted compared to the
previous fiscal. But this year, the scenario has improved.
For the last couple of years, corporate loan growth has been almost flat for many banks.
“The drivers for corporate growth are power, roads and ports, as well as services,” said a
senior SBI executive. There was higher traction in government undertakings, he added.
Corporate slippages for banks continued to decline, and slippages from the watch list are
not significance any longer.
Other banks also witnessed a similar increase in various segments of corporate advances.
Punjab National Bank saw a 28 per cent growth in medium enterprise loans, while ICICI
Bank witnessed “continued growth” at 10 per cent in domestic corporate lending,
excluding restructured loans, among others. Canara Bank, too, posted over 7 per cent
increase in corporate portfolio.
The RBI’s data on sectoral deployment of bank credit, as of December 2018, also point to
an increase in credit to industry. Credit to industry rose by 4.4 per cent in December 2018,
compared to an increase of 2.1 per cent in December 2017.
“Credit growth to infrastructure, chemical and chemical products, all engineering,
vehicles and petroleum, coal products and nuclear fuels accelerated,” the RBI said in its
report. However, credit growth to basic metal and metal products, textiles, food
processing, and gem and jewellery saw deceleration.
Non-food credit
On a year-on-year basis, non-food bank credit increased by 12.8 per cent in December
2018, against an increase of 10.0 per cent in December 2017.
The stabilisation of Goods and Services Tax (GST), waning of adverse impact of
demonetisation, among others, have been positive for gross capital formation in the
economy, and there is more propensity to investments in some sectors, say experts.
Home
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Strata Celebrates Grand Opening of New Manufacturing Facility in India
(Source: Business Standard, February 14, 2019)
Strata Geosystems, a global leader in the soil reinforcement industry, opened doors to its
newest state-of-the-art manufacturing facility on February 11th, 2019 aimed at meeting
the growing demand for geotechnical products in India and around the globe.
"We are indeed a truly unique company," said Ashok Bhawnani, Founding Director of
Strata Geosystems, during the grand opening ceremony of the company's
new manufacturing facility located in Daheli, Gujarat. "As the largest reinforced soil wall
builder in India, we differentiate ourselves by using re-engineered yarn to build high-
performance structures for highways."
"Using geogrids to reinforce soil is analogous to using steel for concrete reinforcement,
and this technology is being used for a wide range of applications including ramp
construction, landfills, mining dykes, and other engineered structures," said Narendra
Dalmia, CEO & Director. Strata began as a manufacturer of geogrids in 2004 and has
evolved to become both a manufacturer and India's largest developer for reinforced soil
structures. Today, Strata has built over 400 bridge ramps on national highways across the
country and is a leader in the technical textiles industry. Reinforced soil technology has
been adapted across the country, which led the company to expand its capacity and more
effectively cater to the growing infrastructure needs in India.
Strata had the honour of hosting its joint-venture partners from Glen Raven, Inc. a global
performance-textile company headquartered in the USA. Among Glen Raven's attendees
were Leib Oehmig, CEO and Harold Hill, President of the Technical Fabrics
division. "This is a tremendous milestone for the entire Strata global organization,"
said Harold Hill. "It's an occasion that has been many years in the making, and it's only
been possible through the hard work and steadfast dedication of our team here
in India. We, at Glen Raven, could not be more proud of our partners in India - they are
top-notch professionals, and even better people. We couldn't ask for better partners,"
said Leib Oehmig.
The plant was constructed using Strata's own technical textiles for flooring, internal
roads, water-proofing, slopes and embankments, and loading aprons, providing a
testament to the products' benefits.
Further reiterating its commitment to India and Prime Minister Modi's ' Make in India'
vision, this new facility is the largest geogrid plant and will provide sufficient capacity to
cater to India's demand while continuing to strengthen existing export markets. The plant
enables the production of the widest geogrid, (made on 245" knitting machines), high-
strength uniaxial and biaxial geogrids, and improved technical parameters like enhanced
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stress strain values. Additionally, the facility, located over 10 acres, houses an exclusive,
custom-built coating machine, efficient material handling capabilities, and an advanced
laboratory which will be accredited with global standards.
The inauguration of this plant is a milestone for the country's technical textile sector and
a symbol of Strata's continued global expansion. This new facility also aligns with the
efforts of The Ministry of Textiles towards the promotion of technical textiles in
critical infrastructure applications.
About Strata Geosystems:
Strata Geosystems is a global leader in geotechnical product and engineering solutions.
With fully integrated design, supply and construction capabilities, Strata provides
solutions to complex soil reinforcement and stabilization challenges. Strata's line
of geosynthetic products are matched by world-class engineering support and
geotechnical expertise.
Strata's products, including the industry-leading StrataGrid (geogrid) and StrataWeb
(geocell) lines, are ISO certified, hold CE markings, and are tested in GAI-LAP accredited
labs across the US, UK, and India. As a member of the International Geotechnical
Society (IGS), Strata proudly promotes the advancement of geosynthetics.
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17 CITI-NEWS LETTER
GLOBAL:
European Parliament endorses free trade agreement with Singapore
(Source: Amanda Lee, Euractiv, February 14, 2019)
The European Parliament approved on Wednesday (13 February) the EU-Singapore Free
Trade Agreement (EUSTFA), the bloc’s first bilateral trade agreement with a southeast
Asian country.
The trade deal removes all existing tariffs on goods from the EU, removes trade barriers
by recognizing EU safety tests and will make the business environment more predictable,
according to the European Commission.
The trade agreement provides new opportunities for Europeans in sectors such as
telecommunications, environmental services, engineering, computing and maritime
transport. It will also make the business environment more predictable.
Singapore also agreed to remove obstacles to trade besides tariffs in key sectors, for
instance by recognising the EU’s safety tests for cars and many electronic appliances or
accepting labels that EU companies use for textiles.
In addition, the investment protection agreement will include an Investment Court
System for resolving investment disputes.
There are more than 10,000 European companies in Singapore with total bilateral trade
in goods of over €53 billion and €51 billion-worth of trade in services. Singapore is the
number one location for European investment in Asia, according to the Commission.
Besides the Free Trade agreement, there is the EU-Singapore Investment Protection
agreement, which replaces already standing treaties, and the EU-Singapore Partnership
and Cooperation agreement which is designed to reinforce the existing relationship
between the two governments.
The Investment treaties will be replaced by a modern common investment protection
framework and the Partnership agreement sets sustainability and trade standards.
“This is yet another win-win trade agreement negotiated by the European Union, an
agreement that will create new opportunities for European producers, workers, farmers
and consumers, while at the same time promoting cooperation and multilateralism,”
Commission President Jean-Claude Juncker said in a press release.
This new agreement was praised by EuroCommerce which noted the quick evolution and
development of Singapore resulting from free trade.
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18 CITI-NEWS LETTER
“The European Parliament’s approval today opens a further avenue for mutual benefit
through open and free markets, and confirms the EU as a promoter of the world trading
system where important partners seem to be turning away from it,” said Director-General
of EuroCommerce, ChristianVerschueren.
The Greens/EFA party was less enthusiastic, saying that the Commission was putting
profit over people.
“The EU is relying on old mistakes around investment protection and prioritising large
foreign investors, while small and medium-sized enterprises are left behind in
Singapore,” said Heidi Hautala, Vice-President of the Greens/EFA Group. “It’s very
regrettable that the European Commission has pushed through privileged investor
protection.”
After the vote today, the EU member states need to ratify the agreement and is also
waiting for Singapore’s procedures to conclude for the deal to go into force.
The Singapore Embassy in Brussels was not immediately available for comment.
The EU had signed trade agreements with South Korea, Canada, Mexico and Vietnam,
and is currently negotiating with Australia, New Zealand and Mercosur countries.
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Indonesia, Australia to sign trade deal in March: trade minister
(Source: Business Standard, February 14, 2019)
Indonesia is to sign a trade and investment partnership deal with Australia in March,
Indonesia's trade minister said on Thursday, three months later than expected and
following diplomatic friction between them over Middle East policy.
Trade Minister Enggartiasto Lukita told reporters that the Indonesia-
Australia Comprehensive Economic Partnership Agreement would be signed at an
Indonesia-Australia business conference.
Negotiations on the deal were concluded last August and it had been due to be signed by
the end of 2018.
But Australia's recognition of West Jerusalem as Israel's capital strained relations with
Indonesia, which is the world's biggest Muslim-majority country and supports a two-state
solution to the Middle East dispute.
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19 CITI-NEWS LETTER
Australia's trade minister, Simon Birmingham, had played down the issue and cited
translation glitches as cause of the delay in signing the deal.
The neighbours have been in talks on trade since early in the decade, with diplomatic
tension occasionally stalling the process.
Though neighbours, the two are not top trade partners.
Australia valued trade between them at A$11.2 billion ($7.96 billion) in 2017-2018,
with Indonesia being its eighth largest source of imports, while Australia is Indonesia's
14th largest export destination.
($1 = 1.4075 Australian dollars)
(Reporting by Bernadette Christina Munthe; Writing by Fransiska Nangoy; Editing by
Ed Davies and Robert Birsel)
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Cambodia will not die if EU withdraws EBA trade preferences: PM
(Source: Xinhua, February 14, 2019)
Cambodian Prime Minister Samdech Techo Hun Sen said on Thursday that the country
will not die if the European Union suspends the Everything But Arms (EBA) trade
preferences for the kingdom.
"No matter whether it is suspended or not, the suspension of the EBA trade preferences,
that will be known in 18 months, will not lead us to die," he said during the closing
ceremony of the Interior Ministry's annual conference.
"We must not exchange our sovereignty for any aid," the Cambodian prime minister said.
Meanwhile, Hun Sen unveiled a series of "sharp and deep" reforms to strengthen
economic independence and support businesses in case the EU withdrew the EBA from
the country.
He said the measures included cancellation of certificates of origin (CO), pullout of
Cambodia Import Export Inspection and Fraud Repression (CamControl) unit from all
border checkpoints, removal of the Kampuchea Shipping Agency and Brokers (Kamsab)
officers from all ports, reduction of fees on inspection of cargo containers by scanning
machines, and cut of the fees for getting customs papers stamped.
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20 CITI-NEWS LETTER
He added that the government will also provide fiscal incentives for small- and medium-
sized enterprises.
"With our ongoing sharp and deep reforms, we believe that investment environment in
Cambodia will be better and more attractive to local and foreign investors and business
people," Hun Sen said.
He added he will meet with business leaders in March during a government-private sector
forum to discuss these issues.
According to Hun Sen, Cambodia's economic growth was 7.5 percent in 2018, the highest
rate in the last decade.
His remarks came after the EU began on Tuesday the 18-month process that could lead
to the temporary suspension of Cambodia's duty-free trading access to the EU market
under the EBA scheme due to concerns over human rights and labor rights.
EU is a major trading partner for Cambodia, especially for textiles and footwear sector.
As a Least Developed Country, Cambodia has enjoyed exports of all products, except arms
and ammunition, to the EU market with zero percent tariff since 2001.
According to an EU data, the Southeast Asian nation exported products to the bloc worth
about 4.9 billion euros in 2018.
The Garment Manufacturers Association in Cambodia (GMAC) said on Monday that a
suspension of EBA would increase tariffs by 12 percent in the garment sector and by 8 to
17 percent for footwear.
Home
Egyptian Cotton pilots BCI cotton project
(Source: Home Textiles Today, February 14, 2019)
UNIDO partnership part of sustainability drive
The Cotton Egypt Association is partnering with the United Nations Industrial
Development Organisation (UNIDO) to boost sustainability.
Under a new pilot project called The Egyptian Cotton Project, the partners are launching
the country’s first Better Cotton Initiative (BCI) program. BCI connects people and
organizations across the cotton sector – from field to store – to make global cotton
production better for the people who produce it and the environment it grows in.
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21 CITI-NEWS LETTER
“The partnership with UNIDO to support the BCI pilot project is one of several initiatives
we will be exploring in 2019, as we continue to bring the brand and the values of the
world’s finest cotton to meet the expectations of a modern consumer,” said Khaled
Schuman, executive director of the Cotton Egypt Association.
The BCI is the largest cotton sustainability program in the world, educating farmers and
granting the BCI standard to those who meet rigorous levels of sustainable production
and employee welfare. Currently the organization licenses 1.3million farms in 21
countries and aims to bring 30% of global production up to BCI standard by 2020.
A UNIDO spokesman said: “The pilot project’s vision is to pilot the BCI standard system
in Egypt, through a multi stakeholder program jointly coordinated by UNIDO, relevant
governmental entities, farmers’ cooperatives, cotton-textile associations and
local/international private sector stakeholders.”
The sustainability drive is the latest move from Cotton Egypt Association to modernize
and cement the Egyptian Cotton brand. It follows initiatives such as the introduction of a
new accreditation process in partnership with Bureau Veritas, which uses DNA
technology to root out counterfeit goods.
Home
Collection, sorting imp for fibre2fibre market: WRAP
(Source: Fibre2Fashion, February 14, 2019)
Collection and sorting are important for developing a post-consumer fibre2fibre
marketplace. In addition, demand from brands and retailers is essential, as is positive
consumer perceptions of the use of post-consumer textiles, says a report by sustainability
experts WRAP which is the first to examine the economic factors influencing fibre2fibre
recycling.
WRAP examines the economics of closed loop (fibre2fibre) recycling using UK post-
consumer clothes and textiles. Using data from established and emerging business and
academic trials, WRAP’s report (Fibre to fibre recycling: An economic and financial
sustainability assessment) is the first detailed appraisal of the financial viability of using
post-consumer clothing and textiles as feedstock for chemical and mechanical fibre2fibre
recycling operations.
The focus on end-of-life clothing is an attempt to unlock alternative sources to virgin
fibres for manufacturing clothes and supports WRAP’s work to reduce the environmental
impact of clothing under the Sustainable Clothing Action Plan 2020. Peter Maddox,
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22 CITI-NEWS LETTER
WRAP director explains, “We know that only housing, transport and food have greater
environmental impacts than clothing, and with rising global demand we urgently need to
secure new sources of materials and find new markets for used clothing. Fibre2fibre
recycling offers a potential solution - but one that has not been properly investigated.
“Our report is the first to explain the economics of fibre2fibre recycling and will help
investors, business-developers and the recycling sector navigate this relatively young,
uncharted field. New processes and entrants onto the market should be monitored to
inform the business case for future investment, but we already see potential for post-
consumer textiles to become part of the UK’s fashion scene.”
The research was undertaken ahead of the anticipated global shortfall in virgin textiles.
This predicts limitations in future cotton supplies, the UK’s most used fibre, with
projections suggesting a five-million-tonnes global cotton deficit by 2020.
WRAP’s study models the finances for both chemical and mechanical fibre2fibre recycling
processes for recovering polycotton and cotton respectively. It highlights the pressure
points, and potential returns, and outlines the barriers to developing post-consumer
fibre2fibre recycling, with recommendations for overcoming these.
Modelling shows high sensitivities in both fibre2fibre recycling processes to the quality
and cost of sorted and prepared feedstocks, and to output prices. Feedstocks (in terms of
both quantity and quality) may not be economically met using manual sorting alone,
particularly for chemical fibre2fibre recycling. Automated sorting using near-infrared
spectroscopy may be critical to wider development, the study says.
Chemical recycling processes are commercially farther off than mechanical but may offer
higher economic potential in the long run, it says. The development of technical processes
and more supply chain integration need prioritising to enable scale-up to a commercial
size.
Collection and sorting are particularly important in the development of a post-consumer
fibre2fibre marketplace. Demand from brands and retailers is essential, as is positive
consumer perceptions of the use of post-consumer textiles, it says.
In terms of fibres providing the greatest potential for fibre2fibre recycling, cotton and
polyester (found in mono-fibre fabrics and polycotton blends) are the leading materials.
These are most commonly used in clothing and household textiles, with as much as three-
quarters of post-consumer recycling grades containing polycotton blends. Growing
demand for cotton and the potential for recycled cellulosic material to replace cotton
make this material likely to sustain viable income levels for recyclers. Limiting the use of
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23 CITI-NEWS LETTER
problematic dyes and trims would also help increase the potential for greater recyclability
of more clothes.
Further improvements in consumer messaging, and collection infrastructure, could
positively influence the proportion of discarded clothing available for recycling.
Consumer behaviour also affects the quality of garments received, with excessive washing
and tumble drying at high temperature causing damage to clothing and effecting the
quality of the fibres recovered in mechanical reprocessing.
The costs associated with feedstock are highly dependent on factors like transport and
distances travelled and, as a result, the location from which they are sourced has a major
impact on costs. Recent ECAP (European Clothing Action Plan) fibre2fibre recovery trials
including the Dutch companies Tricorp, Schijvens and Havep show how innovative
approaches to supply chain costs can overcome such barriers.
Alan Wheeler, director Textile Recycling Association, said, “The Textile Recycling
Association is very supportive of this important research by WRAP. The fragility of
existing fibre recycling markets is presenting a significant barrier to improving the overall
sustainability of the fashion industry, which as we know has a huge environmental
impact. “The current markets for mechanically recycled fibres are limited, and to be able
to collect more clothing that is currently being disposed of we must find new markets for
recycled fibres or risk flooding these markets and potentially having to dispose of low
value recycling grade textiles. Clearly this cannot happen. This research will help us to
obtain a greater understanding of the market sensitivities, particularly of the fledgling
chemical recycling processes, and how used textile collectors and processors may have to
adapt their practices going forward to maximise value and recyclability of used textiles.”
Currently, an estimated £140 million-worth of clothing is sent to landfill every year in the
UK and WRAP’s research will help inform SCAP 2020 re-use and recycling activities. As
more data becomes available, further work would help enlarge upon these findings and
WRAP believes this modelling exercise could be expanded to reflect a wider range of
techniques and systems.
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