Friday, 29 July 2016

Rupee Trades Marginally Lower At 67.06 Against Us Dolla

The Indian rupee on Friday was trading marginally lower against the US dollar, tracking the losses in local equity markets.

At 2pm, the home currency was trading at 67.06 a dollar, down 0.04% from its previous close of 67.04. The rupee opened at 67.04 a dollar and touched a high of 66.98, a level last seen on 15 July.

India’s benchmark Sensex index fell 0.35% or 98.93 points to 28,109.69. So far this year, it gained 7.8%.

Asian currencies were mixed. The yen surged Friday after the Bank of Japan made minor tweaks to its stimulus programme that disappointed dealers who had expected a big announcement to kickstart growth in the world’s number three economy. The central bank said it would boost its exposure to riskier investments, but left a massive ¥80 trillion ($772 billion) annual bond-buying programme unchanged.

Japanese yen was up 1.41%, South Korean won 0.38%, Singapore dollar 0.18% and China renminbi 0.15%. However, Malaysian ringgit was down 0.76%, Philippines peso 0.14% and Indonesian rupiah 0.12%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.42, down 0.32% from its previous close of 96.739.

So far this year, the rupee is down 1.35%, while foreign institutional investors have bought $4.31 billion in equity and sold $834 million in debt markets.

Meanwhile, India’s 10-year bond yield was at 7.19% as compared with its Thursday’s close of 7.191%.

 

Source:livemint.com



India Mulling Import Of Pulses From Africa

India is looking to import pulses from Myanmar and African nations to counter a domestic shortfall of 7.6 million tonnes that has driven local prices of key pulses like chickpea to a record high, Food Minister Ram Vilas Paswan said.

More purchases by India, the world's top consumer of pulses, could help the country rein in its headline inflation, which hit a near two-year high in June on double-digit annual increases in prices of sugar, vegetables and pulses. “The challenge of demand-supply gap of about 7.6 million tonnes (in pulses) is being addressed via public and private imports,” Paswan tweeted. India had said it would help Mozambique cultivate pulses and then import them through government-to-government deals.

India consumes nearly 22 million tonnes of pulses annually, but relies heavily on imports to meet demand as output has been hit by uncertain monsoons.

 

 

Source:thehindu.com



Jsw Steel Gains Edge Owing To Lower Debt, Import Price Curbs

While most steel manufacturers are staring at high debt and finding it difficult to negotiate with banks for additional funding requirements, JSW Steel's relatively better debt position seems to be giving it an edge. In addition, since it never undertook backward integration of operation by owning iron ore mines, it has an advantage amid subdued ore prices, a major raw material for steel. These factors make JSW SteelBSE -0.67 % better placed to benefit from the government's policy to impose minimum import price (MIP) on steel.

With a good share of high-value products such as coated steel products in its offering, the company surprised the Street with much higher realisation per tonne for the June 2016 quarter, a parameter that gives a sense of the demand and operating strength of the business. Realisation per tonne for the quarter was at $124, nearly 20 per cent higher than the estimates. Sales volume was higher by 1.8 per cent sequentially.

Higher realisations and lower costs helped it post 100 basis points sequential jump in operating margin before depreciation (Ebitda margin) at 28 per cent. Net profit rose to Rs 1,085 crore against Rs 300 crore in the preceding quarter.
JSW steel gains edge owing to lower debt, import price curbs
Despite a rise in the company's debt to Rs 45,355 crore — around 10 per cent rise after adjust for new accounting standards — the debt situation has not worsened. While debt-to-equity is at 2.3 times, debt-to-Ebitda improved to 5.7 from 6.4 at the end of the March quarter. While it is still high, it is expected to improve in the coming quarters.

Also, If MIP is extended beyond August, it will benefit the company. The company's peers are under pressure. Tata SteelBSE 1.27 % is struggling with its European operations, which is hit by low demand and high debt. The government-owned SAILBSE -0.95 % continues to remain least cost effective with high employee expense, whereas Essar SteelBSE 0.41 %, Jindal SteelBSE -1.82 % and Bhushan SteelBSE -0.92 % are expected to face working capital constraint given their high debt.

    
JSW Steel has been cautious over the past few years by not buying riskier assets. Its stock has risen by over 55 per cent in the past six months. Shares of Tata Steel, SAIL and Jindal Steel & Power are 65-88 per cent below their all-time highs. Some analysts have given a buy rating on the stock post results with price targets around Rs 1,738-2,108. On Thursday, the stock closed at Rs 1,685, down 3 per cent.

 

Source:economictimes.indiatimes.com



Nissan's Micra Tops Car Exports Chart In June With 6,800 Units

Japanese carmaker Nissan today said its flagship model Micra has topped the exports chart in June with the company shipping 6,807 units of the car that was developed at its Chennai plant.

The milestone confirms Nissan's position as a major contributor to Make in India, the company said.

Since the beginning operations of its operations in 2010, Nissan has exported over 6,20,000 cars, contributing over Rs 30,000 crore in foreign exchange, it added.

The Micra, rolled out from the Renault-Nissan's Alliance plant at Oragadam near Chennai, is being exported to more than 100 countries with Britain, Germany, Switzerland and Italy being the biggest markets.

The made-in-India Micra has helped Nissan achieve record sales in 2015, making it the top-selling Asian car brand in Europe.

Nissan India Operations President Guillaume Sicard said, "Nissan is proud our made in India Micra is the most exported car in June.
"Our strategy has been to use exports to build a significant presence here with our plant, the largest and most advanced in the Alliance, and our R&D centre which employs 5,000 engineers."

Nissan Motor India is a 100 per cent subsidiary of Nissan Motor Co of Japan and was incorporated in 2005. It offers products across the hatchback (Micra), MUV (Lodgy), SUV (Terrano) and sedan (Sunny) segments.

Nissan, together with its global alliance partner Renault, has set up a manufacturing plant and an R&D centre in Chennai and has two brands.

 

Source:economictimes.indiatimes.com



India Cautions Traders About Fraud In Import-Export From China

 Indian diplomatic missions in China have cautioned traders from India that they may end up getting sand, stones, salt, bricks, mud etc in place of items ordered and issued detailed guidelines to avoid incidents of cheating.

The Indian Embassy and the Consulates have issued trade advisories to various trade bodies and associations cautioning traders and small and medium enterprises (SMEs) planning to do business with China after receiving several complaints.

"It is to enhance the commercial cooperation between India and China by drawing attention to some of the risks faced by Indian traders/SMEs to take preventive and/or mitigating action," said the advisory.

"The information contained in this advisory is based on trade-related problems that are periodically brought to the Consulate's attention for information, facilitation and assistance," according to the advisory circulated among the members of he Indian Association of Shanghai.

However, the advisory was not put on the website of the Indian missions in China to avoid misunderstanding considering the strain in ties due to differences on issues relating to listing of Pakistan-based militants and groups as terrorists by UN and Beijing's reluctance to support India's application to join the Nuclear Suppliers Group, informed sources said.

Listing some of the complaints brought to the notice of missions, the advisory said importers should be careful about supply of sub-standard goods, inferior quality.

   
The items to dupe Indian importers included supply of sand, stones, salt, bricks, mud etc in place of chemicals, Silicon Carbide, Aluminium and Zinc ingots, shellac, plastics, polymers etc, it said.

Other complaints included refusal to send consignments on receipt of payment, quantity dispute, stopping of communications on receipt of advance payment, dispatch of defective machinery, diversion of payment into unassociated bank accounts by third fraudulent parties by hacking into email IDs.

Other methods included taking money for sample dispatch and then stopping all correspondences.

The Indian exporters should be careful about refusal to make payment after taking control of consignment exported from India on some pretext and refusal to take delivery of the consignment when the market value of the imported item has gone down from the value fixed in agreement, it said.

 

Source:economictimes.indiatimes.com



Tuesday, 19 July 2016

India Mulls Importing Pulses From Afghanistan

NEW DELHI: India is exploring the possibility of importing pulses from Afghanistan to boost domestic supply and control retail prices that have soared up to Rs 200 per kg.

India recently signed an MoU with Mozambique to double import of tur and other pulses from the African nation to 2 lakh tonnes per annum in next five years.

"India is also looking at Afghanistan as a possible supplier for pulses. We are exploring the possibility of importing pulses from Afghanistan," External Affairs Ministry Secretary (Economic Relations) Amar Sinha told reporters here. on the sidelines of 'Made in Afghanistan' conference.

"Farmers from Afghanistan will grow pulses if they have an assured market, while importing pulses will ensure our food security," Sinha said, adding the imports could start with small quantity of about 1 lakh tonnes.

When asked about India's interest in contract farming for pulses, Afghanistan's Deputy Minister of Agriculture, Irrigation and Livestock Abdul Qadeer Jawad said that the country has the potential to grow pulses.

"We grow kidney beans. We do not have big domestic market for pulses. But we have the potential to cultivate pulses," Jawad said.

The bilateral trade between the two countries stood at USD 684 million in 2014-15, he added.

India is facing a shortage of 6-7 million tonnes of pulses to meet its domestic demand.

Pulses production fell to 17.06 million tonnes in the 2015-16 crop year (July-June) from 17.15 million tonnes in the previous year. In 2013-14, output was over 19 million tonnes.

The country imported nearly 6 million tonnes of pulses last fiscal, largely through private traders.

The government recently decided to enhance the buffer stock limit of pulses to 2 million tonnes for making market intervention when prices firm up in retail markets. It is also importing pulses to boost domestic supply.

Earlier this month, the Cabinet approved a long-term contract by signing an MoU with Mozambique for import of pulses either through the private channels or government-to -government (G2G) sales through state agencies nominated by the two countries.

The MoU aims to promote production of tur and other pulses in Mozambique by encouraging progressive increase in the trading of these pulses.

 

source :economictimes.indiatimes.com



Monday, 18 July 2016

Rupee Slips 11 Paise Against Dollar

Rupee was trading lower by 11 paise at 67.18 against the US dollar in early trade at the Interbank Foreign Exchange today on increased demand for the American currency from importers and banks.

Dealers attributed the rupee's fall to increased demand for the US currency, but dollar's weakness against some currencies overseas and a higher opening in domestic equity market restricted the fall.

On Friday, the rupee had dropped 16 paise to 67.07 a dollar on fresh demand for the US currency from banks and importers amid fall in domestic equities.

Meanwhile, the BSE Sensex recovered by 146.93 points or 0.52 per cent to 27,983.43 in early deals.

 

Source:economictimes.indiatimes.com



Gold Import Nearly Halves To $3.90 Billion In April-June

NEW DELHI: Gold imports fell by about 48 per cent to $3.90 billion in the first quarter of the current fiscal, which is expected to keep a lid on the current account deficit.

The sliding prices of the precious metal in both global and domestic markets are seen as a contributory factor for the plunge.

Gold imports stood at $7.51 billion in April-June 2015.

The inbound shipments contracted for a fifth consecutive month in June by 38.5 per cent to $1.20 billion, according to the data by the Commerce Ministry.

The contraction in imports helped narrow trade deficit to $8.11 billion last month as against $10.82 billion in June 2015.

India is one of the largest gold importers in the world and imports mainly take care of demand of jewellery industry.

India's CAD narrowed to 1.3 per cent of GDP in the third quarter of 2015-16 as against 1.5 per cent in the same period of the previous year, mainly on account of a lower trade deficit.

Meanwhile, the government has announced launch of fourth tranche of sovereign gold bond scheme from today in a bid to check the demand for physical gold.

It had netted 3.1 tonnes of idle household and temple gold under the monetisation scheme since its launch in November.

As per the data, silver imports too dipped to $249.39 million in June as against $342.37 million in the same month last year.

Also, shipments of pearls, precious and semi-precious stones showed a decline of 13.52 per cent in June.

 

 

Source:economictimes.indiatimes.com



Coal Imports Likely To Decline To 160 Mt In Fy'17

NEW DELHI: Country's coal imports have declined 5 per cent in the first two months of 2016-17 and the number is expected to reach 160.16 million tonnes in the ongoing fiscal, Parliament was informed today.

"The trend of fall in import of coal has continued in 2016-17 wherein for the period April-May 2016-17, coal imports have reduced by around 5 per cent as compared to the corresponding period of the previous year.

"Import of coal is projected for the year 2016-17 by Niti Aayog is 160.16 million tonnes," Power and Coal Minister Piyush Goyal informed Rajya Sabha.

On account of increased production by Coal IndiaBSE 0.59 % Ltd (CIL), which produces around 80 per cent of coal in the country, the import of fossil fuel has fallen from 217.78 million tonnes in 2014-15 to 199.88 million tonnes in 2015-16.

CIL has undertaken a mix of strategies for narrowing the domestic demand-supply gap that address short to medium-term imperatives and also technological and human resource related issues, the minister said.

Coal India has envisaged to produce one billion tonne of coal in 2019-20 from the level of production of 538.75 million tonnes in 2015-16.

For evacuation of such huge coal to destination, CIL has planned for construction of three major railway infrastructure projects to be executed by Indian Railways in growing coalfields of Jharkhand, Odisha and Chhattisgarh. Positivity of such steps have already manifested themselves in decline in imports in 2015-16 (since 2014-15), Goyal said.

In a separate reply, the minister said that up to June, the supply of coal to the power plants was at 142 million tonnes.

 

Source:economictimes.indiatimes.com



Make In Mozambique: Pulses The Real Reason Behind Pm Narendra Modi's Visit

It has as many people as Punjab, and its people are three times poorer. But Narendra Modi became the first prime minister to visit Mozambique in 34 years because the impoverished South African country has something every Indian wants.


India - the world's leading producer of pulses, with 22 per cent of global output - signed a contract to import 100,000 tonnes of pulses from Mozambique in 2016-17, doubling to two lakh tonnes by 2020-21. That would still be no more than two per cent of 2015-16 imports and 0.5 per cent of what Indian farms grow.

But every tonne counts, as imports pouring from 60 countries indicate, from some as little as 1,000 kg, the amount your neighbourhood grocery store might sell in a week.

An important staple food and source of nutrition, pulses available for every Indian have fallen by three kg over half a century. With two years of failed monsoons, insufficient irrigation and flawed, over-regulated marketing - prices rise 50 per cent between the farmer and consumer - India's pulses output is at a six-year low, sparking shortages and spiraling prices.

    


For the first time, imports of pulses in 2015-16 touched $4 billion, a quarter of demand and more than one per cent of India's import bill.

India imported a record 5.8 million tonnes of pulses in 2015-16, 80 per cent more than two years before.

But why have imports risen over the last two years, when they were fairly constant (between 2.5 to 3 million tonnes ever year) over the last decade ending in 2010?

The answer: The output of pulses for the decade ending 2010 rose, stabilising imports, but two years of drought (2014 and 2015) changed all that.

As Indians eat more pulses and production drops, prices keep rising.

Indians want more pulses, but yield is among world's lowest

Pulses are also known as grain legumes, a set of 12 crops - from lentils to chickpeas - high in nutrition, particularly important to developing countries like India with rising incomes.

But the prices of pulses are rising in concert with growing demand and falling production. Imports fill the gap.

By the end of 2015, the retail price of tur dal (pigeon pea) touched Rs 230 per kg, up 150 per cent from Rs 90/kg; it remains between Rs 160 to Rs 180 per kg today.

A perfect storm of colluding reasons is responsible, IndiaSpend reported in October 2016.

Ten months on, nothing has changed, the most important reason being that India's pulses productivity is among the emerging world's lowest. Even poorer Myanmar produces twice as much per hectare, Egypt more than four times as much. Regardless of yield, production is dropping.

The bottom line is a 250 per cent rise (over five years to 2015 in Maharashtra) in the prices of the dal you eat, benefitting the farmer and importer.

Why Sukesh Kode got double the price set by the government?

In the arid southeastern Maharashtra district of Latur, Sukesh Kode, 35, is unconcerned that tur output on four acres of his 17-acre unirrigated farm has fallen to 38 quintals (100 kg = 1 quintal) this year from 42 quintals in 2015.

After all, he earned twice as much for those 38 quintals, with his return jumping 125 per cent over a year in March 2016, a situation mirrored nationwide.

Kode got Rs 45 per kg of tur over the last three years (2013 to 2015). In March 2016, he sold his tur for Rs 102 per kg in the Latur Agricultural Produce Market.

Ashok Badiya, a wholesale trader of pulses for 50 years in the Vashi Agriculture Produce Market in New Mumbai, said that a record pulses output in 2013 mitigated the effect of a drought in 2014, when most farmers were paid between Rs 32 and Rs 35 per kg, below the government-set minimum support price of Rs 40 per kg.

"In 2016, the tide has turned," said Badiya. Supply dropped.

Thus, Kode got Rs 102 per kg for tur he sold in March 2016, more than double the minimum price set by the government.

From the farmer to you: A 50 per cent rise in price

This year, in April, Badiya said he paid Rs 102 per kg for pulses from farmers in March 2016. From Badiya, the pulses travelled to retailers like Piyush Vora, who owns a 250-sq-ft grocery shop in central Mumbai's Lalbaug neighbourhood.

Vora bought pulses this year at Rs 130 per kg and is selling them at Rs 150 per kg (April 2016). He bought tur dal at Rs 205 per kg, and sold it for Rs 230 per kg at the peak in November 2015.

When prices rose last year, the "immediate reaction" of consumers was to buy less dal, said Vora, who explained that such knee-jerk reactions never last.

"In a couple of weeks, they got used to it," he said. "Neither was there a dip in the sales of dal nor in our profit margins." Pulses are so central to the Indian diet that middle-class consumers will buy them and cut back on other things. The poor have no option but to eat fewer pulses, as an editorial in The Hindu explained.

A good monsoon, in general, keeps prices steady, and a bad monsoon increases imports and prices.

To encourage farmers to grow more pulses and keep prices in check, the government has increased the minimum support price for pulses to more than Rs 50 per kg for the summer crop of 2016-17, eight per cent more than last year.

The Maharashtra government on July 5, 2016 decided to sell a kg of tur dal per month to poor families at a subsidised rate of Rs 120 per kg (against a retail price around Rs 180 per kg).

But these are temporary measures. With irrigation uncertain and farmers reluctant to grow more pulses, Mozambique will continue to remain of interest to India.

 

Source:economictimes.indiatimes.com



Textile Sector To Grow At 6% To $40 Billion In Fy2017

After witnessing a degrowth of 2 per cent in FY2016, textile exports is expected to grow at 6 per cent to $40 billion in FY2017, driven by the expectations of growth in the apparel segment and higher fibre prices, says ICRABSE -1.65 % in its research update on the Indian textile industry.

According to Anil Gupta, VP, Corporate Sector Ratings, ICRA Ltd: "Despite volume growth in most of the segments, degrowth in the value of textile exports during FY2016 was driven by lower fibre prices (cotton as well as polyester). For FY2017, while raw-cotton export is expected to decline, however, other segments, especially apparels, shall see positive volume growth, especially due to improved export competitiveness supported by the recent financial package for the textile industry."

As per ICRA estimates, apart from the apparel segment, volume growth in textile exports is also expected in other segments like textile made-ups and home furnishings. The average prices for fibre are also likely to stay higher in FY2017 as compared to the previous year, which will support the growth in value of textile exports.

"While the outlook on volume growth is positive in all the segments except raw-cotton; however, yarn export volumes may also come under pressure due to the recent spurt in domestic cotton prices. This spurt can also partially offset the benefits of the recent financial package for the textile industry," Mr Gupta adds.

Polyester and cotton prices stood lower by 10 per cent and 4 per cent respectively (in US$ terms) till May 2016, which is reflected in the decline in value of exports. However, with the recent spurt in domestic as well as international cotton prices, the growth in value terms is expected to turn positive in the coming months as the higher input costs will partially be required to be passed on to the buyers.

 

Source:economictimes.indiatimes.com



Wednesday, 13 July 2016

Rupee Closes At 1-Month High Against Us Dollar; Bond Yield At Fresh 3-Year Low

The Indian rupee closed at one-month high against the US dollar, while 10-year bond yield fell to a fresh three-year low, on Wednesday.

The global turn in sentiment towards emerging market economies helped the currency. Hopes that the new governor of the Reserve Bank of India may be more inclined to cut rates also helped sentiment.

The rupee closed higher in 11 out of 15 trading sessions while the 10-year bond yield closed lower in 15 out of 21 trading sessions.

The home currency closed at 67.06—a level last seen on 10 June, up 0.20% from its previous close of 67.18. The local currency opened at 67.11 a dollar and touched a high of 67.02—a level last seen on 13 June.

India’s 10-year bond yield closed at 7.284%—a level last seen on 19 June 2013— compared with Tuesday’s close of 7.337%. It opened at 7.337% and touched a low of 7.282%, a level last seen on 19 June 2013.

India’s benchmark Sensex index rose 0.03%, or 7.04 points, to close at 27,814.12. In the last 11 trading sessions, Sensex gained 5.34% and so far this year, it has gained 6.5%.

According to a Bloomberg report, Narendra Modi and Arun Jaitley may meet to take call on next governor in next few days. Former deputy governors Rakesh Mohan, Subir Gokarn, the chairman of the NITI Ayog Arvind Panagariya and current deputy governor of RBI Urjit Patel have been touted as contenders.

Most Asian currencies closed higher after Malaysia cut rates and China’s trade data beat analysts’ estimates. Malaysia overnight policy rate was cut to 3% from 3.25%, while China’s exports grew 1.3% year-on-year in yuan terms in June, beating +0.3% estimates, Bloomberg reported.

Philippines peso was up 0.4%, Malaysian ringgit 0.38%, Indonesian rupiah 0.26%, South Korean won 0.15%, Thai baht 0.14%, Taiwan dollar 0.06%, Singapore dollar and China offshore gained 0.05% each. However, Japanese yen fell 0.1%.

The government will issue Wholesale Price Index (WPI)-based inflation data for June on 14 July. According to Bloomberg analyst estimates, WPI will be at 1.3% in June compared with 0.79% in May.

India’s factory output rose unexpectedly in May and retail inflation quickened for the fourth straight month in June, reducing the chances of a rate cut by RBI in its monetary policy review in August, the last under governor Raghuram Rajan.

Consumer price index (CPI)-based inflation accelerated marginally to 5.77% in June from 5.76% a month ago on higher food prices, while the Index of Industrial Production (IIP) rose 1.2% in May, against Bloomberg’s estimate of a 0.3% contraction, on the back of a pick-up in manufacturing activity.

So far this year, the rupee is down 1.34%, while foreign institutional investors have bought $3.17 billion in equity and sold $1.73 billion in debt markets.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.328, down 0.11% from its previous close of 96.441

 

source:www.livemint.com



India Seeks Market Access For Sesame Seeds In Japan

India will seek greater market access in the Japanese market for its farm products such as sesame seeds as well as for its services professionals including nurses, when senior officials of both the countries meet on July 28 in New Delhi.

India’s Commerce Ministry will be pushing a proposal asking Japan to bring its big ‘general trading companies’ such as Itochu, Mitsui and Mitsubishi to India for bulk purchase of sesame seeds (locally known as ‘till’), official sources told The Hindu.
July 28 meeting

The July 28 meeting will be that of the (India-Japan) Joint Committee — a panel set up following the signing of the bilateral Comprehensive Economic Partnership Agreement (CEPA) in 2011. The committee’s functions include reviewing the CEPA and suggesting amendments to the pact to boost bilateral trade and investment.

The focus on sesame seeds is because Japan is the world's second largest importer of the item (after China) with annual imports of around 1.6 lakh tonnes. Sesame seeds are used in Japanese cuisine in salads, soups, snacks, candies, and for flavouring and baking. Sesame oil is used in cooking, and in manufacture of soaps, perfumes and pharmaceuticals, while sesame meal (a by-product of the oil) is used as poultry feed.

However, following the detection of pesticides and insecticides such as DDT and malathion in some sesame seeds consignments from India over two decades ago, Japan has been reluctant to import the commodity from India, according to Sanjiv Sawla, chairman, Indian Oilseeds and Produce Export Promotion Council (IOPEC). However, he said, there is no official ban in Japan on import of sesame seeds from India.

“The issue is yet to be resolved as Japan is insisting that the seeds should be pesticide and insecticide-free. We have been having regular dialogues and have even taken them to the fields where the item is grown. Now we are encouraging our farmers to use pesticides/insecticides permitted as per global norms, besides asking the farmers to shift to organic farming,” Mr. Sawla said. To convince Japan that India can be a reliable sesame seeds supplier, IOPEC has held meetings with several leading Japanese general trading companies regarding bulk purchase of sesame seeds from India, Sawla said, adding that these companies are also in touch with some of the leading Indian sesame seed exporters.

India is the world’s largest sesame seed producer with an annual production of around 7 lakh tonnes. India is also the world's largest exporter of the item. India’s sesame seeds exports in FY'15 was 3.76 lakh tonnes valued at Rs.4717.77 crore but it slipped in FY’16 to 3.28 lakh tonnes worth Rs.3011.52 crore.
Learning Japanese

On the services side, India – with a large resource pool of professional nurses — is keen to expedite the signing of a Mutual Recognition Agreement (MRA) between the Indian Nursing Council and its Japanese counterpart to ensure that Japan accepts Indian qualified nurses and certified care-workers.

As per the CEPA, it was decided that Japan will conclude negotiations with India in this regard by 2013-end, but sources said there has been a delay. Japan is learnt to be reluctant to allow Indian nurses.

 

source :thehindu.com



Government Allows Sez Units To Import Solid Plastic Waste

 Government has allowed companies located in special economic zones (SEZs) to import solid plastic waste.

The Environment Ministry has permitted the import by amending the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016.

"The import of solid plastic waste at column (2) against Basel Number B3010 in Schedule VI, excluding post consumer wastes, is permitted to units in SEZs notified by the central government," the ministry said in a notification.

SEZ units can import plastic or mixed plastic waste prepared to a specification, it added.

The government had notified 'Hazardous and Other Wastes Rules, 2016' in April for better management, handling and trans-boundary movement of hazardous and other wastes.

As per the rules specified, the government will not permit imports of hazardous and other wastes from any country to India for disposal but will be allowed only for recycling, recovery, reuse and utilisation, including co-processing.

 Import of listed hazardous waste would be allowed to actual users with prior informed consent of the exporting country and that will require the permission of the Environment Ministry.

 

Source:economictimes.indiatimes.com



Indian Car Exports Alone Is Four Times More Than Pakistan's Total Car Production

Data accessed from the Pakistan Automotive Manufacturers Association reveals an embarrassing statistic for the automotive industry in Pakistan.

Latest numbers from Pakistan, when compared with those of India, show that exports of cars produced in India are four times that of total vehicles produced and sold in Pakistan. Such is the disparity between the two economies of South Asia.

India sold nearly 23.56 Lakh passenger cars in its domestic market in 2014-2015 as compared to a meagre 1.52 lakhs by Pakistan in the same year. However, the statistics get more interesting when we compare Indian exports. At 5.74 lakh passenger vehicle units exported by India in 2014-2015, the number is 4 times that of total vehicles produced and sold in Pakistan.

"The data has left us red faced, we are nowhere in the picture. No comparison with India," said a member of the Pakistan Automotive Manufacturers Association (PAMA), who wished to remain unnamed in this report.

Pakistan, which some consider to be the gateway to Central Asia, has no indigenous car manufacturer, whereas Indian car manufacturers have embarked on an aggressive overseas expansion. TATA, Mahindra, Ashok LeylandBSE -2.78 %, Hero Group are some examples of Indian car manufacturers who have made a mark on the international stage. Overseas acquisitions have gathered steam too with TATA's acquisition of Jaguar and Land Rover and Mahindra & Mahindra buying up SSyangYong Motors.

With lax automotive safety and quality standards enforced in Pakistan, a significant number of Pakistanis are turning to Japanese cars which give better value for money and safety standards that outstrip those of their Pakistani counterparts.

   

The member of the Pakistani Automotive Manufacturers Association who is quoted in this article, further went on to say that Pakistan has become a dumping ground for second hand cars from Suzukis to Humvees to Toyotas...Pakistanis will have to wait a long time for a viable indigenous, affordable car.

"How can we say 'Make in Pakistan' when no Pakistani has 'Made in Pakistan' before," said the Pakistani Automotive Manufacturers Association member when asked if they will replicate the success of the 'Make In India' campaign.

 

Source:economictimes.indiatimes.com



Indian Hybrid Seeds Makers See A Fifth Of Cotton Seed Returns

: Delayed and inadequate monsoon across several cotton growing Indian states has dented sowing and hit hybrid seeds sales hard and producers have seen nearly a fifth of seed returns from their distributors, double that of last year.

Normal returns from seed dealers hover at around 10% a year, adding to the woes of Indian hybrid seed firms that are currently in a prolonged wrangle with the global seed giant MonsantoBSE -1.93 % on royalties. Hybrid seed manufacturers could see 300-400 basis points fall in profitability this time, say analysts.

India, which did not see much fall in cotton cultivation over the last three years despite consecutive draughts, could see over acreage fall by a sixth this year owing to delayed monsoon, coupled with fall in cotton prices, analysts said.

Seed manufacturers say delayed arrival of rains in key cotton producing regions has forced farmers to shift to other crops like pulses and corn, resulting in higher return of unsold cotton seeds.

"The industry is expecting the sales returns to be on the higher side this year, approximately around 20% as against 10% in 2015, largely on account of delayed arrival of monsoon in key regions and fear in the mind of farmers who suffered excessively from pest attacks," said MG Shembeker, vice-president of the National Seed Association of India and Managing Director of Nagpur-based Ankur Seeds.

Hybrid seeds, channelled through the distributors, are returned to the manufacturers who stock it for the next season. Seed producers claim that the BT cotton seeds have a higher shelf life and can be used even after a year.

"Stocking of seeds also entails additional expenditure for us. However, it would be too early to conclude that it'll impact our businesses and we should wait for the sowing season to get over," said Niranjan Kumar of Seedsmen Association and chief executive officer of Garc Seeds.

Sabyasachi Majumdar, Senior Vice-President at rating agency ICRABSE -0.18 %, says that "while the cotton acreage was largely intact in the last three years at about 12-12.5 million hectares despite consecutive draughts, it is likely to fall by about 10-15% this year by the end of sowing season on account of delayed monsoon and fall in cotton prices, resulting in higher sales returns."

The y-o-y fall in cotton acreage was about 50% as of June 2016 as per the figures published by the ministry of agriculture. In Punjab and Haryana, cotton acreage fell by 27% to 7.56 lakh hectares as against 10.3 lakh hectares last season due to the fear of whitefly pest attack. However, ICRA's Majumdar said some lost ground could be covered in the remaining sowing period.

Indian hybrid seed firms are already burdened with unsold inventories over the past two years and writing off the stock would impact their profitability, say analysts. "As against 18-20% EBIDTA (earnings before interest, depreciation, taxation and amortisation) till last year, the earnings are likely to fall by 3-4% this fiscal," said Majumdar.

The Indian seeds industry, which is currently valued at $3.2 billion (approximately Rs 19,200 crore), has grown at a compounded annual growth rate of 8.4% in volume terms over FY09 to FY15 to reach 3.5 million tonnes (consumption), said a 2015 report by ICRA India.

At present, the Indian seed industry is the sixth largest globally in value terms, accounting for about 4.5% of global industry preceded by US (27%), China (22%), France (6%), Brazil (6%) and Canada (4.8%).
 

 

Source:economictimes.indiatimes.com



Monday, 11 July 2016

Rupee Closes At 3-Week High Of 67.14 Against Us Dollar

The Indian rupee on Monday closed at over three-week high against the US dollar, after local equity markets gained nearly 500 points. Gains in the global equity and currency markets also helped the rupee. This was the tenth out of 13 trading sessions when the rupee closed higher.

The home currency closed at 67.14—a level last seen on 17 June, up 0.35% from its previous close of 67.37. The local currency opened at 67.13 a dollar and touched a high of 67.06, a level last seen on 17 June.

India’s benchmark Sensex index rose 1.84%, or 499.79 points, to close at 27,626.69. So far this year, Sensex has gained 5.78%.

Most of the Asian currencies closed higher, bolstered by election results in Japan and Australia and shrugging off concerns that a strong US jobs report might push the US Federal Reserve closer to hiking rates.

South Korean won rose 1.29%, Malaysian ringgit 1.01%, Indonesian rupiah 0.56%, Taiwan dollar 0.28%, and Thai baht 0.17%. However, Japanese yen was down 1.84%, Philippines peso 0.26% and Singapore dollar fell 0.21%.

The government will issue the Index of Industrial Production (IIP) and Consumer Price Index (CPI) based inflation data for May and June, respectively, on 12 July, while Wholesale Price Index (WPI) based inflation data for June on 14 July.

According to Bloomberg analyst estimates, IIP for May will be -0.4% compared with -0.8% a month ago, while CPI will be at 5.79% versus 5.76% last month. WPI will be at 1.3% in June against 0.79% in May.

So far this year, the rupee is down 1.46%, while foreign institutional investors (FIIs) have bought $3.01 billion in equity and sold $1.80 billion in debt markets.

Meanwhile, India’s 10-year bond yield closed unchanged from Friday’s close of 7.385%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.562, up 0.27% from its previous close of 96.302.

 

Source:.livemint.com



India Backs African Countries’ Demand For Curbs On Cotton Subsidies At Wto



India is backing major cotton growing African countries in their demand for immediate elimination of cotton export subsidies and a timeline for reduction of domestic support by heavily subsidising members such as the US.

This was agreed to at the World Trade Organisation’s Ministerial meet in Nairobi last December.

“While the four cotton growing African countries (C4) are leading the demand for reduction and elimination of cotton subsidies, India, too, is supporting the cause as its cotton farmers are adversely affected by cheap subsidised cotton from the West both in the domestic and export market,” an official keeping track of the on-going negotiations on agriculture at the WTO told BusinessLine.

At a meeting in Geneva earlier this month, New Delhi, which supports its cotton farmers through a minimum support price (MSP), had underscored the importance of focussing on how much support individual farmers get.

“India said that countries should give information on support per farmer, the average earnings of farmers and the average size farm holding to ensure that all are not painted by the same brush,” the official added.

In the last nine years, of the $47 billion handed out as cotton subsidies by major players, over $24 billion has been given by the US, $15 billion by China, $7 billion by the EU and less than $1 billion by India, according to figures compiled by international think-tank Africa Europe Faith and Justice Network.

Interestingly, Nobel laureate economist Joseph E Stiglitz, at an event in Bengaluru last week, said that the Modi government, like Brazil, should drag the US to the WTO for subsidising its cotton farmers as it was one of the countries worst affected by it.

While India may not have any immediate intention of taking on the US individually on the matter, it is adding its voice to that of the C4 (Burkina Faso, Benin, Chad and Mali) which have pleaded that domestic support programmes of major producers need to be slashed as these were forcing thousands of young cotton farmers in their countries to turn to migration in order to earn a living.

The countries asked members to explain how they intend to implement the Nairobi decision on cotton under the three pillars of export competition, market access and domestic support.

The US is not just one of the biggest subsidy providers but is also the largest exporter of cotton. According to the National Cotton Council of America, the US is expected to export 10.2 million bales in 2016 capturing almost 30 per cent of world trade in cotton of 35.8 million bales, while India would export half of that at 5.4 million bales.

 

Source:.thehindubusinessline.com



Gold Import Falls By 50% In First Half Of 2016



High gold prices have helped the Indian government to keep gold import bill under check. In first six months of 2016, India's gold import bill had been estimated at $9.4-9.6 billion with imports estimated at around 210 tonnes. Compared to the first half of last year, import bill is down over 40%, while import in tonnage is down almost by half.

January was the last month which saw high gold import at 75 tonnes, post which imports have been averaging 27-30 tonnes per month. Even in the month of May, despite Akshaya Tritiya — a festival during which buying gold is considered auspicious — demand was muted.

Analysts, however, say that in the import bill, nearly 15-20 tonnes per month is for exports and only a small portion is imported by gold refineries. March was the worst month for gold jewellery business due to the jewelers strike, following the imposition of excise duty.

However, during the period, especially from March onwards, every month 15-20 tonnes of gold is arriving in the country via the unofficial route. Much lower demand, due to rising prices and high unofficial import flows have resulted in discount on gold in the spot market, quoting between $40-50 per ounce or Rs 800-1,100 per 10 gram to the cost of imports. This is keeping banks away from importing gold.

According to GFMS TR data, imports in 2015 was the lowest in the last many years.

Gold price fell below Rs 25,000 per 10 gram by December end and now in Mumbai it is quoting at Rs 31,260 per 10 gram. Most traders and analysts believe last year's draught and sharp increase in price have kept buyers away.

In the cash market last week, on Friday, gold was available at $100 per ounce discount in the Ahmedabad market, which was never seen before. A spokesperson for newly-created The Bullion Federation said: "There is an urgent need to identify those dealing in gold with cash. All gold trades have to be through banking channels."

However, high discount in spot and even higher discount in cash market has created a situation where four prices for gold are quoted. Today afternoon when gold price was around $1360, cost of import for banks including duty was Rs 32,240 per 10 gram. On MCX, August futures was quoting at Rs 31,630 per 10 gram, which means around $30 per ounce discount to cost of import. In the Ahmedabad market, gold, if purchased through banking channel and with accounted money was quoted at Rs 31,050 (VAT not included) which is at a further discount to MCX price and around $52 discount to cost of imports. However, smuggled gold or in the cash market in Ahmedabad, gold was available at Rs 30,500 per 10 gram, widening the discount further to cost of official imports.

 

Source:http://ift.tt/15HW3lL

  
 



India To Import 5 Lakh Tonnes Of Maize To Check Prices

NEW DELHI: Government will import 5 lakh tonnes of maize to check price rise and hoarding in the wake of fall in domestic production of the crop.

To check prices and prevent hoarding, Commerce and Industry Minister Nirmala Sitharaman has approved importing 5,00,000 MT of maize under Tariff Rate Quota by a state trading enterprise, her ministry said in a tweet.

Under Tariff Rate Quota Scheme, government allows imports of four products, including maize (corn), at concessional rates of customs duty.

At present, maize attracts 50 per cent import duty. However, under the Tariff Rate Quota Scheme, the import duty is zero.

Eligible entities for allocation of quota under the scheme in case of corn include STC, MMTCBSE 0.11 % and PEC.

In June, state-owned trading firm PEC had invited bids for import of 50,000 tonnes of maize (non-genetically modified) to boost domestic supplies in view of fall in production.

As per Agriculture Ministry's third advance estimate, maize production in the country is estimated to have declined to 21.02 million tonnes in 2015-16 from 23.67 million tonnes in the previous year.

India has been traditionally a major corn exporter to southeast Asia but drought and rising domestic demand has cut export supplies.

Poultry sector and starch manufacturers are the major consumer of maize.

The government is also importing pulses to boost domestic availability and check price rise. As of now 46,000 tonnes of pulses have been contracted for supply.

 

Source:economictimes.indiatimes.com



Kenya Glut Forces India To Export Cheaper Tea To Pakistan

KOLKATA: Indian tea exporters are under pressure to lower prices for clients in Pakistan in face of cheaper imports from Kenya, its largest supplier which has seen a 68 per cent increase in production this year.

Pakistan is one of the top three tea importers, with annual consumption of 220 million kg.

In 2015, it had imported 19.45 million kg of tea from India at an average price of $1.47 per kg. A year earlier, it had imported 15.8 million kg but at a higher average price of $1.50 per kg.

Indian tea exporters said Pakistani buyers are not keen to pay a higher price for Indian tea even though it has produced better quality teas this year in comparison with 2015, when a long dry spell had damaged the crop.

According to traders, in the first four months of 2016, Pakistan imported 5.12 million kg of tea, down from the 5.63 million kg it had imported in the year-ago period. Pakistan imports most of its requirement between August and October.

"Kenya has produced 177 million kg of tea this year, which is 72 million kg more than last year. With this huge production, Kenya is in a position to offer much competitive price to Pakistan than India," a senior tea planter told ET.



A merchant exporter said, "Last year, quality of Indian tea had suffered due to erratic weather conditions. That is why Pakistan had offered less price for Indian teas. But this year, quality is much better. Despite that, Pakistan is offering an average price of $1.70 per kg for Indian tea, as availability from Kenya is on the higher side."

However, fall in exports to Pakistan could be offset by demand from another neighbour, Bangladesh, which is showing keen interest. India's tea export to Bangladesh grew by 58.57 per cent in 2015 from a year ago even though the country produces 80-85 million kg annually.

"Bangladesh is ready to buy Indian teas at a price of $1.90 $2.05 per kg. It is a good market for Indian teas and is growing," said another merchant exporter.

A senior official of the Indian Tea Association said that apart from the traditional EU market, Russia, the US, Pakistan, Iran, Egypt and Bangladesh continue to be focus markets for Indian tea exporters. In 2015, Indian exported 232.92 million kg of tea compared with 199.08 million kg in 2014.

 

Source:economictimes.indiatimes.com



Wednesday, 6 July 2016

Cotton Spinning Mills Face Decline In Domestic Cotton Output

Rise in cotton prices this year has caught off guard Cotton Spinning industry with low cotton stocks as domestic output is set to decline double digit in season 2015-16.

The industry is suspecting heavy squeeze in margins as demand-supply imbalance is stoking cotton imports and new crop arrival is delayed due to late sowing of cotton.

"High off-mark cotton crop estimates has put industry in a precarious situation as most spinners are likely to run dry of raw material before the new crop arrival," says Sanjay Jain, Northern India Textile Mills' Association (NITMA), VP, Senior Vice president.

"The cotton demand supply imbalance is likely to prolong till beginning of November due to late sowing owing to delayed rain this year," he said.

He sought a reliable mechanism to provide estimates on output, crop arrival and expected yield to evade such a situation in future.

"Prices are up 30% up in spot markets and likely to further increase due to demand and supply imbalance," he said. The spinning industry is in dire need of fiscal incentives, he said.

 

India exported over two-million bales in the last year to Pakistan in October, November and December due to low prices prevailing at the time.

Now, shoe is on the other foot. As the demand supply imbalance has fuelled cotton contracts for imports from Australia, Brazil, Pakistan, West Africa and the US, he said.

"Most firms are not in a position to enter import contracts as shipments will be delayed and prices are on rise," he said.

"The country could end up importing over 2-million bales to bail over the situation," says Rakesh Rathi, president Indian Cotton Association Limited.

"Imports will bailout industry along coastal areas but land locked industry in North will be dependent on supply from central states," he said. The Association has sought incentives to bailout the industry.

The cotton output in domestic market is expected to fall by 15% for season 2015-16 after preliminary estimates pegged it at 38.4 million bales.

"It is unlikely that output will cross 325 lakh bales this year," says Jain blaming initial cotton output estimates for the situation.

"Cash rich firms that have adequate stock are in advantage while most of the industry is caught in a muddle," he said.

In last few years Cotton processing industry largely maintains stocks for three months while small players rely on weekly for fortnight purchase to evade brunt of volatility in prices of cotton.

"The yarn manufacturers are likely to worst affected as moderate demand has left little scope for rise in price of products," he said.

"Contracts for cotton imports are on rise as stock situation is set to tighten in coming months," he said.

"Now, it is entirely a traders market as most are likely to hold cotton stocks to allow further price rise," Jain said.

 

Source:economictimes.indiatimes.com



India To Import Pulses From Mozambique Through Government Channels

 India, the world's biggest consumer of pulses, will help Mozambique in cultivation of pulses and import them through government-to-government deals in the coming years, Telecom Minister Ravi Shankar Prasad said on Tuesday.

Prices of pulses are ruling near record highs in the south Asian country as output trails supplies. The government-to-government deals will help India secure supplies of pulses, Prasad told reporters after a cabinet meeting.

India is likely to import 100,000 tonnes pulses from Mozambique in the 2016/17 financial year ending on March 31 and aims to double it in four years, he added.

India, which consumes nearly 22 million tonnes of pulses annually, sources yellow peas and lentils mainly from Canada and the United States, chickpeas from Australia and Russia, and green gram and pigeon peas from Myanmar and Mozambique.

Pulses production of India stood at 17 million tonnes in 2015-16, while imports were 5.79 million tonnes.

 

Source:economictimes.indiatimes.com



India's June Oilmeal Exports Down By 48%

 Oilmeal exports fell by 48 per cent to 88,514 tonnes last month due to tight local supply of oilseeds and continuous price disparity in the global market, industry body SEA said today.

The country had shipped 1,69,699 tonnes of oilmeal, used as an animal feed, in June last year.

Even during the April-June quarter of current fiscal, the overall export of oilmeals declined by 61 per cent to 1,86,293 tonnes compared to 4,73,676 tonnes in the year-ago period, the Mumbai-based SEA said in a statement.

According to the Solvent Extractors Association of India, the fall in exports was mainly "due to lesser availability of oilseeds for crushing and continuous disparity in exporting oilmeals in international market".

As per the SEA data, export of ricebran extraction fell significantly to 1,500 tonnes in June this year from 34,328 tonnes in the year-ago period.

Similarly, castorseed meal shipments declined to 40,591 tonnes from 77,134 tonnes, while rapeseed meal exports dropped to 43,636 tonnes from 56,139 tonnes in the said period.

   


However, the export of soyabean meal rose marginally to 2,672 tonnes in June from 2,098 tonnes in the year-ago.

Out of the total exports, a maximum of 76,775 tonnes of oilmeal was shipped to South Korea in June, followed by Vietnam at 4,158 tonnes, Indonesia at 2,070 tonnes and Thailand at 1,595 tonnes.

South Korea and Vietnam are the top two destinations for export of oilmeal for India.

 

Source:economictimes.indiatimes.com



Power Cost May Drop After Coal Import Probe

A probe into the Rs 29,000-crore coal import scam, where the value of coal from Indonesia for power plants was allegedly inflated by companies, seems set to lower electricity tariff in several states, including Maharashtra.

At least four state electricity regulatory commissions — Maharashtra, West Bengal, Andhra Pradesh and Tamil Nadu — have written to the Directorate of Revenue Intelligence (DRI) seeking details of the probe. "We have had discussions with the DRI and have requested for a detailed report on the over-invoicing of power plant equipment, besides inflating the value of coal. This will have an impact on the tariff pertaining to power plants under our jurisdiction in Maharashtra," said a senior MERC official.

The DRI estimates that tariff could come down by 50 paise to Rs 1.50 per unit. It has referred the case to the "Forum of Regulators" comprising chairpersons of the Central Electricity Regulatory Commission (CERC) and all the state monitors.

The DRI has alleged that power-generating companies, including public sector undertakings like Tamil Nadu Electricity Board, NTPC, Mahagenco, and others have indulged in over-invoicing of the imported coal. TOI was the first to report the scam in December 2014. All the companies have denied any manipulation.

The DRI findings have also reached the Supreme Court as part of an appeal. Energy Watchdog, represented by senior lawyer Prashant Bhushan, has challenged an order of the Appellate Tribunal for Electricity that directed the CERC to award compensatory tariffs to Adani Power and Coastal Gujarat Power (Tata Group) based on the power purchase agreements for their power plants in Mundra.

The compensatory tariff is linked to the increase in coal prices owing to a change in Indonesian laws, thereby leading to hike in the import prices. DRI has alleged that it is not true. At least 20-odd applications seeking compensatory tariff are pending before CERC and the various SERCs.

 

Source:timesofindia.indiatimes.com



India Explores Iran Market For Textiles Exports

 In an attempt to reduce dependence on the European Union and United States for growth, Indian garment exporters are exploring opportunities in Iran.
 
A delegation led by the Ministry of Commerce and accompanied by over half a dozen industry officials recently met with their counterparts there. The Indian delegation discussed a host of issues including prevailing taxes and relaxation in policy support for hassle-free export of textiles to Iran.

 
 
“Although the United States and the European Union are important markets for us, we are exploring new markets for textiles exports to reduce our dependence on these two regions,” said Rashmi Verma, Secretary, Ministry of Textiles, on the sidelines of an event in Mumbai.
 
India has remained absent from Iran’s markets not because of preferential treatment like European Union, but on account of extremely high import tax levied by the Iranian government. An import tax of 200% was levied on apparels and textiles until two years ago which has been gradually slashed to 55% and 32%, respectively.
 
Following the Indian delegation’s visit, however, tax authorities in Iran have agreed to reduce import duty on textiles and apparels to a 20-25% level or even lower over the next two years.
 
Exploring new markets has become critical for Indian textiles exporters due to falling shipments to traditional markets such as the United States and the European Union, which account for over 60% of India’s textiles and apparel exports.  
 
Owing to preferential treatment given to the countries like Pakistan, Vietnam and Bangladesh, textiles shipped to such buyers works out to be uncompetitive for Indian exporters. Consequently, India’s exports have declined over the last few years.
 
After setting a target of $47.5 billion at the start of the fiscal year ending March 2016, India’s textiles exports managed only $38 billion, a marginal decline from $40 billion in the previous year. With a host of incentives and a Rs 6,000 crore package announced in the last few months to boost textiles and apparel exports, the government has set a target of $50 billion for FY2017.
 
“The targets look achievable,” said Rahul Mehta, President, Clothing Manufacturers Association of India (CMAI).
 
Confirming India’s outreach, Mehta said Iran’s market size stands at $16 billion, of which only 40% comes from domestic sources. The rest is met through imports, largely illegal, he added.
 
“Interestingly, China’s market share in the world’s textiles and apparel segment has declined to 38% from 40% from a couple of years ago due to rising cost of production on higher labour cost. So, China is creating a vacuum which India can exploit to increase its market share from the existing 5%,” said Verma.
 
“Iran offers immense of opportunities for textiles and apparels exports for India being the Islamic country a gateway for European markets with a combination of western and traditional taste,” said Mehta.
 
Referring to an Ernst and Young report, Texprocil chairman R K Dalmia forecasts India’s textiles exports to rise by 9% CAGR (compounded annual growth rate) to $62 billion in five years from $40 billion in 2016. The domestic textiles market is set to grow 5.2% annually to $80 billion by 2021 from $62 billion in 2016.

 

Source:business-standard.com