Cotlook A Index - Cents/lb (Change from previous day)

15-11-2018 86.30 (+0.75)

14-11-2017 79.60

15-11-2016 77.85

New York Cotton Futures (Cents/lb) As on 17.11.2018 (Change from

previous day)

December 2018 76.25 (0)

March 2019 78.31 (+0.03)

May 2019 79.62 (+0.08)

17th November

2018

Vibrant Gujarat 2019: First roadshow begins in Delhi today; CM

Vijay Rupani meets corporate honchos, diplomats

India’s Textile and Apparel Exports & IIP Registers Staggering

Growth in the Month of October- CITI

Government to soon unveil new industrial policy: DIPP Secretary

Indonesia launches new economic stimulus measures

Cotton and Yarn Futures

ZCE - Daily Data (Change from previous day)

MCX (Change from previous day)

Nov 2018 22400 (-20)

Cotton 14990 (+55) Dec 2018 22450 (-40)

Yarn 23175 (+25) Jan 2019 22600 (-80)

www.citiindia.com

2 CITI-NEWS LETTER

-------------------------------------------------------------------------------------- India’s Textile and Apparel Exports & IIP Registers Staggering Growth in the

Month of October- CITI

Vibrant Gujarat 2019: First roadshow begins in Delhi today; CM Vijay Rupani

meets corporate honchos, diplomats

Textile & apparel exports soar 38% in October: CITI

Government to soon unveil new industrial policy: DIPP Secretary

Arun Jaitley calls for quality debates on economic policies

Smriti Irani bats for rise in women entrepreneurs

Contract limit for jobless engineers raised in Maharashtra

NALSAR together with 300 weavers to write a new law to protect Handlooms

Minor reshuffle in Bengal ministry

SMEs floundering even as Gujarat prepares for global investor summit

9th Session of India-Kyrgyz IGC held in New Delhi, concludes with signing of

Protocol

Arunachal skill dev centre gets Central Silk Board recognition

Minister Giriraj Singh inaugurates MSME Pavilion at India International Trade

Fair

------------------------------------------------------------------------------------------------- US, China rivalry to dominate APEC summit

Indonesia launches new economic stimulus measures

Supply chain shift to Asean countries is accelerating

El Salvador invites Indian IT, energy companies

NCTO Testifies At U.S. International Trade Committee Hearing On U.S.-Mexico-

Canada Agreement (USMCA)

------------------------------------------------------------------------------------------------

NATIONAL

----------------------

GLOBAL

www.citiindia.com

3 CITI-NEWS LETTER

NATIONAL:

Press Release

India’s Textile and Apparel Exports & IIP Registers Staggering Growth in

the Month of October- CITI

Friday, November 16, 2018, New Delhi: Ministry of Commerce & Industry,

DGCI&S, released the Quick Estimates for the month October 2018. Shri Sanjay K Jain,

Chairman, CITI stated that the exports of textile and apparel stood at Rs.20,353 crore

during October 2018 as compared to Rs.14,779 crore during October 2017, showing an

impressive growth of 38%. It is noteworthy that over the same period apparel exports

have grown at a whopping rate of 54%.

CITI Analysis of Exports of T&A for October 2018

Values in INR crores

Particulars Oct-17 Oct-18 %

Change

Cotton Yarn/Fabs./made-ups, Handloom

Products etc. 5,376 6,704 25%

Man-made Yarn/Fabs./made-ups etc. 2,312 3,037 31%

Jute Mfg. including Floor Covering 151 192 28%

Carpet 668 1,013 52%

Handicrafts excl. handmade carpet 870 1,078 24%

Textiles 9,377 12,025 28%

Apparel 5,402 8,327 54%

Textile and Apparel 14,779 20,353 38%

All Commodities 1,48,963 1,98,635 33%

Data Source: DGCI&S

Chairman observed that the positive trend in exports for the entire textile value chain has

been the result of CITI’s continuous persuasion with the Government and pragmatic

approach shown by the Hon’ble Union Minister of Finance, Hon’ble Union Minister of

Commerce & Industry and Hon’ble Union Minister of Textiles, on the issues of T&C

www.citiindia.com

4 CITI-NEWS LETTER

Industry especially post GST implementation. Chairman expressed his deep gratitude to

Hon’ble Ministers for their timely policy support and intervention to boost the industry

which was under severe stress especially after the implementation of GST.

Mr. Jain is delighted to see the positive IIP data also. It is pertinent to mention here that

the IIP production data for T&C also witnessed robust year on year growth during

September 2018 as compared September 2017. Textiles and Apparel has registered a

growth of 5.4% and 20.9%, respectively during September 2018.

Quick Estimates of IIP for Textile and Clothing Sector (T&C): September

2018

Description Weights Index

Sep'17 Sep'18 % Change

Manufacture of textiles 3.29 115.2 121.4 5.4

Manufacture of wearing apparel 1.32 118.8 143.6 20.9

Source: Ministry of Statistics Planning & Implementation

Chairman asserted that the growing positive trend shows visible signs of recovery after a

difficult period. Industry is hopeful that Government would take suggested measures to

boost exports and limit imports. Gauging the current scenario, Mr. Jain is confident that

in the coming months, with Government support, the industry would be in a much more

comfortable position. Continuous growth in exports and IIP index would result in

boosting employment, scaling up production and most importantly making “Make in

India” initiative a reality for T&C Industry.

Home Vibrant Gujarat 2019: First roadshow begins in Delhi today; CM Vijay

Rupani meets corporate honchos, diplomats

(Source: Financial Express, November 16, 2018)

As a part of the series of events leading to the 9th

Vibrant Gujarat Global Summit 2019 to be organised

early next year, the Gujarat government held the first

roadshow in Delhi on Friday. Earlier today, the state

Chief Minister Vijay Rupani met foreign envoys and

corporate honchos in the morning as part of the

curtain-raiser to the Vibrant Gujarat Global Investors

Summit-2019.

www.citiindia.com

5 CITI-NEWS LETTER

He held a one-to-one meeting with the Dutch Ambassador to India Marten van den Berg

in which the latter expressed desire to strengthen cooperation in port-led development in

the state. Rupani also met Chairman of Airports Authority of India Guruprasad

Mahapatra who promised support for developing new airports including one at Rajpipla

near Statue of Unity and second a Dholera international Airport as an extension of

Ahmedabad Airport.

The state government also signed MoU with two textile and apparel associations namely,

Apparel Export Promotion Council (AEPC) and Confederation of Indian

Textile Industry (CITI).

“I am happy to say that vibrant Gujarat is being held at a time when India is the fastest

growing major economy in the world and Gujarat is the fastest growing state in the

country,” MK Das, IAS (PS-GoG) said.

The roadshow in Delhi will be followed by similar events in Mumbai, Pune, Hyderabad,

Bangalore and Kolkata. Already, 24 such events have been held in different nations of the

world. The Summit will be held from January 18-20 next year.

Vibrant Gujarat Summit

Vibrant Gujarat Summit was conceptualised by present Prime Minister Narendra Modiin

2003, the then Chief Minister of Gujarat, with an aim establish the state as a preferred

investment destination within India.

“..the Summit has evolved into a platform for brainstorming on agendas of global socio-

economic development, in addition to being a facilitator for knowledge sharing and

forging effective partnerships,” Vibrant Gujarat website says.

Home

Textile & apparel exports soar 38% in October: CITI

(Source: Financial Express, November 15, 2018)

It is interesting to note that during the month, the apparel exports have grown at a

whopping 54%, said Confederation of Indian Textile Industry (CITI) on Friday.

The exports of textile and apparel for October grew 38% to Rs 20,353 crore as against Rs

14,779 crore reported in the same month of 2017. It is interesting to note that during the

month, the apparel exports have grown at a whopping 54%, said Confederation of

Indian Textile Industry (CITI) on Friday.

www.citiindia.com

6 CITI-NEWS LETTER

Quoting the union ministry of commerce & industry, Sanjay K Jain, chairman, CITI, said

the positive trend in exports for the entire textile value chain has been the result of CITI’s

continuous persuasion with the government and pragmatic approach shown by the union

minister of finance, union minister of commerce & industry and union minister of textiles

on T&C industry issues especially post GST implementation.

The concerned ministries have also came forward with timely policy support and

intervention to boost the industry which was under major stress, especially after the

implementation of GST, he added.

According to the data, CITI said that the exports of cotton yarn/fabs/made-ups and

handloom products during the period grew 25% to Rs 6,704 crore as compared to Rs

5,376 crore in October 2017.

The export of man-made fabs/yarn and made-ups during the month grew 31% to Rs

3,037 crore as compared to Rs 2,312 crore in October 2017.

Similarly, carpet and handicrafts export grew 52% and 24%, respectively to Rs 1,013

crore (Rs 668 crore) and Rs 1,078 crore (Rs 870 crore), respectively during the month,

Jain said quoting the data.

While the whole of textiles saw 28% growth to R12,025 crore as compared to Rs 9,377

crore in October 2017, that of apparel exports stood higher at Rs 8,327 crore (Rs 5,402

crore), reporting a growth of 54%.

According to Jain, the confederation is delighted to see the positive IIP data.

“It is pertinent to mention here that the IIP production data for T&C also witnessed

robust year on year growth during September 2018 as compared September 2017,” he

said. Textiles and apparel industry saw a growth of 5.4% and 20.9%, respectively during

September 2018.

He further said that the growing positive trend shows visible signs of recovery after a

difficult period.

Industry is hopeful that government would take suggested measures to boost exports

and limit imports.

“Gauging the current scenario, CITI is confident that in the coming months, with the

government support, the industry would be in a much more comfortable position.

www.citiindia.com

7 CITI-NEWS LETTER

Continuous growth in exports and IIP index would result in boosting employment,

scaling up production and most importantly making ‘Make in India’ initiative a reality

for T&C industry,” he added.

Home

Government to soon unveil new industrial policy: DIPP Secretary

(Source: PTI, Economic Times, November 16, 2018)

The government will soon unveil a new industrial policy which may include a dedicated

chapter on the importance of design, a top official said Friday. Highlighting the

significance of design and innovation in India's economic progress, Secretary of the

Department of Industrial Policy and Promotion (DIPP) Ramesh Abhishek also extended

his "full support" to the setting up of a National Design Centre as early as possible.

"We are also bringing out a new industrial policy soon and we are proposing to include a

substantial chapter and paragraphs on the importance of design, and how it should be

taken forward," he said at a CII event here.

DIPP, in August last year, floated a draft industrial policy with the aim to create jobs for

the next two decades, promote foreign technology transfer and attract USD 100 billion

foreign direct investment (FDI) annually.

The proposed policy will completely revamp the Industrial Policy of 1991.

Among other things, the policy would endeavour to reduce regulations and bring new

industries in focus.

The DIPP Secretary also said that enforcement of intellectual property rights was being

improved through better training of police officers and judiciary.

"In principle the department (DIPP) would like to fully support the setting up of a

National Design Centre. We can see how it can be done, it can be done through the

mechanism of the India Design Council," Abhishek said

Home Arun Jaitley calls for quality debates on economic policies

(Source: Financial Express, November 16, 2018)

Slogans and populism cannot guide economic policymaking, finance minister Arun Jaitley

said Friday, underlining the need for policy debates based on hard facts and data

crunching.

www.citiindia.com

8 CITI-NEWS LETTER

Slogans and populism cannot guide economic policymaking, finance minister Arun

Jaitley said Friday, underlining the need for policy debates based on hard facts and data

crunching. “Debate and policy in economic areas can’t be guided by just slogans or

populism, it has to be based on hard facts (and) analysis which are supported by data

analysis itself,” the minister said.

Jaitley was addressing a wealth awards conference organised by the news portal

Moneycontrol through a vide link. The remarks come two days ahead of the crucial central

board meeting of the RBI, amid a public spat between central bank and government on

certain policies. While government and its nominees on the board want RBI to pay heed

to the troubles of small businesses to create additional financing for them, liberalise the

prompt corrective action (PCA) framework for public sector lenders and give a breather

to the troubled non-bank lenders, the conservative central bank seems to be opposed to

the proposals.

Admitting that the country has suffered due to poor quality of debates, Jaitley said “it has

to be a national endeavour to improve the quality of debates, particularly in economic

areas.” He also said wealth creation is a “challenge” in these times as also in the future.

He regretted that there was a time when we were focused only on slogans and pitched for

the alternative of increasing productivity instead.

The focus on increasing productivity can lead to “equity and a more prosperous

environment”. “The future is not going to be redistribution of poverty, but distribution of

wealth, which, of course, is determined by who is able to generate wealth itself,” he said.

Home

Smriti Irani bats for rise in women entrepreneurs

(Source: Business Standard, November 17, 2018)

Union Minister Smriti Irani has pitched for the need to further empower and encourage

women to come forward and work as entrepreneurs, adding that the total number of

women entrepreneurs in the country is still less.

Attending a women awareness programme organised by FICCI here, Irani said, "As per

the sixth economic census, the total number of women entrepreneurs was pegged at 13

per cent, of which only five per cent of women were engaged in non-farm enterprises with

the remaining working in the agricultural sector."

The Union Textiles Minister observed that there was a time when a nation's success was

measured in terms of Gross Domestic Product (GDP). However, when a woman is

www.citiindia.com

9 CITI-NEWS LETTER

empowered financially, measurement of success of the society go up in terms of human

development index (HDI), she added.

"When you empower a woman financially you actually, in terms of measurement of

success of your society, go up in the human development index. Why is this important

today? There was a time when we were measuring the success of a nation on basis of only

the GDP."

She continued, "Today, we measure the success of a nation on the basis of the human

development index. If that is the measure of a nation's success, then it is imperative that

we invest in women as entrepreneurs, invest in women as leaders."

Irani noted that difficulty in not understanding English was becoming a hurdle in the

growth of rural entrepreneurs, and urged the removal of such barriers "As they do not

speak and understand English, it becomes a hurdle in their growth. The women of the

country have to face defeat when it comes to language. They have talent. For their success,

we have to remove their language barrier and make them more comfortable," she added.

Citing an example of the Indian entertainment industry, Irani, who is also a former TV

actress, said that women should engage in more technical roles beyond just acting on

screen.

"One would notice there is a shortage of women in the technical aspects of films such as

editing, cinematography, animation etc. The need is to position our girls to groom for

such technical roles as well beyond acting and creative direction," she said.

Home Contract limit for jobless engineers raised in Maharashtra

(Source: The Hindu, November 17, 2018)

State also announces interest on loan subsidy for struggling power looms

With an eye on next year’s elections, the Maharashtra government has announced fresh

sops and financial assistance for jobless engineers and defunct power looms across the

State. The government on Friday increased contract limits for jobless engineers from the

existing ₹75 lakh to ₹1.50 crore, increasing empanelment limits to 20 years from the

existing 10 and five in various categories, officials confirmed.

“Some departments have been individually giving works worth up to ₹75 lakh to

unemployed engineers. This has been extended to all departments, with an increased

limit of ₹1.5 crore in several categories. For these departments, too, we have set up an

empanelment limit of five and ten years which has now been increased to 20 years,” said

Sachin Chivate, under secretary, Maharashtra Government.

www.citiindia.com

10 CITI-NEWS LETTER

Earlier this year, at a convocation ceremony at IIT- Bombay, Prime Minister Narendra

Modi had urged engineering institutions to focus more on quality rather than quantity of

students for research in cutting-edge science and technology, with focus on national

priorities. Mr. Modi had said the country is producing over seven lakh engineers every

year but not all of them are graduating with the right set of skills.

For the small scale industries and cooperatives working in the textile sector, the State has

announced an interest on loan subsidy for struggling power looms. The scheme was

formally announced by Chief Minister Devendra Fadnavis and Union Minister Smriti

Irani while inaugurating the PowerTex India Schemes in 43 cities earlier this year. “We

have opened a new budget head for providing funds for the scheme this year,” said a

textile department official.

Home NALSAR together with 300 weavers to write a new law to protect

Handlooms

(Source: APN News, November 16, 2018)

First in the world Handloom Weavers of Telugu states shared the same platform with

academia at Global Meet on “Rethinking Indian Industrialisation of Crafts” her at Chirala

in Andhra Pradesh

According to a press note issued in Hyderabad by Ravi Kumar Reddy of REEDS, a

Hyderabad based NGO which is organizing the global meet, it was also the first time in

the world that 300 weavers from both Telugu states and more so from Chirala got together

to discuss their problems, share their achievements, uniqueness and also network, self

help through mutual cooperation and learn.

A khadi products exhibition was organized by Registry of Saree, who have shown various

Khadi products of the last 200years. The Registry of Sarees(TRS) is an innovative idea of

two saree loves to share knowledge on the sarees. TRS carries on knowledge sharing

hrough seminars and experiential textile trails to facilitate knowledge-sharing among

sareelovers. Sarees will be discussed with respect to trade, culture, art and fashion

revival. The Registry of Sarees celebrates the many weaves of India.

A Global Meet “Knowledge in Handloom Weaving in India” featuring many eminent

speakers and experts from Oxford University, NALSAR, Columbia University, IIT Delhi,

Netherlands, Germany and Italy is underway there for the past six days.

Weavers from Thailand, Thaiwan, China and Lavos shared their weaving technologies

and how their industry is sustainable.

www.citiindia.com

11 CITI-NEWS LETTER

A group professionals from NALSAR(National Academy of Legal Studies and Research),

a Hyderabad based reputed legal studies institute addressed weavers on Intellectual

Property, Design and involved 300 weavers And offered to write a new law to protect

Handlooms designed by the weavers disclosed the organizers.

The conference is also featured special exhibition by Mayank and his team from Delhi

who brought 24 types of exclusive and exquisite fabrics from across India

Weavers from Kutch explained about their specialized embroidery skills. Weavers fronm

Tripura, Manipur, Nagaland and Sikkim shared their weaving techniques. Couple of

Weavers from Jammu Kashmir gave insights into Carpet Weaving. Weavers who are

sheep herders gave live demonstration of their weaving technology and also discussed

how changing technologies are changing their lives as well.

The participants, experts, academia, weavers by the end of the event will produce a paper

on how innovations are sweeping Handloom industry in India for common knowledge.

It is organsied by Hyderabad based, NGO, REEDS–Rural Economic and Educational

Development Society. It is a Not-for-Profit organization involved in formulating and

implementing programs relating to various spheres of rural life. REEDS is a registered

Society under the Societies Registration Act XXI of 1860.

The theme of the meet is “Rethinking Indian Industrialisation of Crafts”. It is organised

in collaboration with Mr Mohan Rao of National Federation of Handlooms and

Handicrafts, Prof Bijker of Maastricht University and Ineke Sluiter of Universiteit Leiden

The handlooms provide livelihoods for 4.3 million families, making it the 2nd largest

employer sector after Agriculture.

The meet will provide a roadmap to transform the future of handloom weavers through

innovations and network building.

The industry has the potential to create over one million jobs with the lowest per capita

investment for creation of such jobs, through building on existing skills and social capital.

The handloom industry employs thousands of people across the state. However, due to

certain perceptions regarding handloom cloth, and the necessity of competing with power

loom imitations, growth in the sector is severely hindered.

For example, power loom designers can easily copy popular handloom designs and

produce them in a cheaper fashion, as designs are not protected by copyright, eating into

the demand for handloom cloth.

In order to improve the situation of handloom weavers, it is crucial to improve market

and production infrastructure, capacitate weavers and designers to innovate deep craft

www.citiindia.com

12 CITI-NEWS LETTER

skills, and provide access to credit and financial support. Designs have to be protected

under the intellectual property regime. The system of production can be re-engineered

such that the creativity of the weaver can co-exist with the demands of production to the

designers taste. Handloom currently services many growing market niches; luxury,

ethnic, semi-urban markets for sarees as well as green markets for sustainable goods. The

meet is organised against this backdrop.

Many Scholars, artisans and other professionals involved in the textile industry are

participating in order to better understand and promote futures and livelihoods in

handloom weaving informed Ravi.

The organisers have lined up an impressive line of speakers who include: Uzramma of

Malkha, Jaya Jaitly; Jagada Rajagopalan, Consultant; Amita Dhanda, NALSAR; Anique

Hamelin, Classics and Ancient History, University of Amsterdam; Ashoke Chatterjee,

Prabhat Education Foundation, Ahmedabad; BuYun Chen, Professor, Swarthmore

College; Dorothy Ko, Professor of History and Women’s Studies, Barnard College,

Columbia University; Ellen Harlizius-Kluck, Research Institute for the History of

Technology and Science Deutches Museum, Munich; Rajeev Sethi, Asian Heritage

Foundation; Sampat Mukhopadhyay, IIT Delhi; Subir Kumar Saha, IIT Delhi; Ulinka

Rublack, Facujty of History, Cambridge University and others

The meet will go on till 19th November.

Home

Minor reshuffle in Bengal ministry

(Source: PTI, Business Standard, November 16, 2018)

West Bengal Finance Minister Amit Mitra has been entrusted with additional charge of e-

governance department, a notification issued by the state government said.

A minor reshuffle in the ministry took place late last night.

Mitra, who was looking after industry, commerce and enterprises, micro, small and

medium enterprises and textiles as well as information technology.

Asima Patra, backward classes welfare department along with departments of agriculture

and fisheries, was given additional charge of the department of programme monitoring

(independent charge), it said.

Chandrima Bhattacharya, minister of state departments of health and family welfare, land

and land reforms and refugee relief and rehabilitation and department of tribal

www.citiindia.com

13 CITI-NEWS LETTER

development, was given additional responsibilities of planning and statistics

(independent charges), the motification said.

Home

SMEs floundering even as Gujarat prepares for global investor summit

(Source: The Hindu Business Line, November 16, 2018)

Apex industry body fears mass shutdown of units and massive job losses in State

Even as Gujarat Chief Minister Vijay Rupani is set to conduct a roadshow in New Delhi

on Friday for the upcoming investment extravaganza Vibrant Gujarat Global Summit

(VGGS), industries in the State are reeling under cost escalations and improper policy

implementation.

Raising concern over the deteriorating business atmosphere in the State, the Gujarat

Chamber of Commerce and Industry (GCCI) has claimed that industrial production in the

State has fallen by about 40 per cent in the past 1.5 years and more units may shut down

amid the dismal economic scenario.

Uncertain economy

“This has come as a fallout of multiple factors, including uncertainty on the economic

front, improper implementation of GST and the demonetisation. We don’t want such a

situation to cloud the Vibrant Gujarat Summit. So we are raising the issue with the

government for remedial measures,” said Jaimin Vasa, President, GCCI.

The VGS is scheduled to take place in Gandhinagar in later part of January 2019.

A representation will be made to the State government with suggestions for resolving the

issues hurting the businesses — mainly the micro, small and medium enterprises

(MSMEs).

Shutdowns feared

Vasa said the industrial crisis worsened in the State over the past four to five years. Urgent

measures are required for MSME units, which are at the incipient sickness level. “There

is a need to make timely resolutions to avoid the closure of units,” Vasa added.

The overall economic slackness is visible in the elongated payment cycles by about 45-60

days. “All sectors, including textiles, plastics, engineering, chemicals and dyes, are facing

tough times. The domestic business is badly hurt, while due to escalation in overall costs,

they are losing competitiveness in the international market also. This way they are unable

to take advantage of a weak rupee in the exports,” he said, expressing concern large-scale

www.citiindia.com

14 CITI-NEWS LETTER

job losses in the State. The textile industry, which is the backbone of multiple sectors,

including yarn and dyes, is awaiting announcement of new textile policy in sync with the

GST.

Delay in funds disbursal

GCCI also expressed displeasure over the State’s indifferent approach to disbursal of

funds to MSMEs under various schemes since April 2017.

“There is inordinate delay even in the release of refunds under GST also. The red-tapism

continues despite GST being an online system. Sectors such as textiles are left with no

incentive under GST,” said Nayan Sheth, Chairman of the GST Committee of GCCI.

For the plastics industry in the State, environmental restrictions are posing a threat on

over 2,000 units, which may result in unemployment for about 50,000 workers, they said.

Home

9th Session of India-Kyrgyz IGC held in New Delhi, concludes with signing

of Protocol

(Source: PIB, Devdiscourse, November 16, 2018)

India and Kyrgyzstan have identified potential sectors where both sides may engage in

areas like healthcare and pharmaceutical, environmental and technical safety,

agriculture, information, tourism and culture, textiles and clothing.

The 9th Session of the India-Kyrgyz Inter-Governmental Commission on Trade,

Economic, Scientific and Technological Cooperation (IK-IGC) was held on 15-16

November 2018 in New Delhi and concluded today with the signing of Protocol. The IK-

IGC was co-chaired by The Union Minister for Commerce & Industry and Civil Aviation,

Suresh Prabhu, and Mr Kosmosbek Cholponbaev, Minister of Health, Government of the

Kyrgyz Republic.

India and Kyrgyzstan have identified potential sectors where both sides may engage in

areas like healthcare and pharmaceutical, environmental and technical safety,

agriculture, information, tourism and culture, textiles and clothing, banking, labour and

social development, mines and standards, metrology and certification sector.

Both sides agreed to hold business to business forums between Kyrgyz and Indian

companies as well as the exchange of business and commercial information and search

for partners.

Kyrgyz side proposed to consider the creation of joint food and food processing ventures

for agriculture and meat production for export to the Eurasian Economic Union (EAEU)

www.citiindia.com

15 CITI-NEWS LETTER

markets. It requested India to assist in incubation methods and breeding of freshwater

fish, fish disease prophylactic treatment, primary processing and storage of fish and fish

products, the creation of an electronic database for the pastures, monitoring, assessment

and conducting of remote sensing of mountainous pastures including geo-information

system.

The parties agreed to hold the tenth meeting of the Kyrgyz-Indian inter-governmental

Commission on Trade-Economic and Scientific-Technical Cooperation in Bishkek,

Kyrgyz Republic.

Home Arunachal skill dev centre gets Central Silk Board recognition

(Source: Prafulla Kaman, North East Now, November 17, 2018)

The central government agency, which controls quality of silk products, has allowed using

‘Silk Mark’ on 100 percent natural cloths produced by the skill development centre

The MG Community Skill Development & Training Centre at Oyan village in East Siang

district of Arunachal Pradesh has been recognized by the Silk Mark Organization of India

sponsored by Central Silk Board (CSB) run under Ministry of Textiles, Government of

India.

The central government agency, which controls quality of silk products, has allowed using

‘Silk Mark’ on 100 percent natural cloths produced by the skill development centre.

The training centre set up in July 2014 has been conducting skill development training

for creating self-employment avenues in rural areas. As such, it is implementing central-

sponsored projects for economic enhancement of the rural entrepreneurs through

handloom and handicraft activities.

The Skill Development & Training Centre is an initiative of Siang Tea Industries Ltd of

Arunachal, which is working for promotion of organic farming in the state.

The centre is competent to produce quality silk clothes and finishing products of the

handloom garments, which are exported to different places within the country and

abroad.

Launching the use of ‘silk mark’ on the 100 percent natural silk products, the skill

development centre on Friday conducted day-long exhibition cum sale at Oyan village

bordering to Jonai of Assam, wherein rural weavers and entrepreneurs from different

corners of Siang belt took part.

Thus, exhibition of silk cloths, organic tea and vegetables and fast food preparation using

locally available organic food staffs enthralled the visitors.

www.citiindia.com

16 CITI-NEWS LETTER

Among other dignitaries, renowned artist of Japan, Masami Yamada with his family,

former Union Minister and Siang Tea Industries Managing Director Omak Apang, plastic

engineer Tangir Perme and other graced the occasion.

Yamada, who is working for promotion of silk farming and development of silk industry

in Himalayan region, also launched a ‘signature campaign’ on the occasion.

Addressing the occasion, in-charge of MG Skill Development & Training Centre Aitoki

Doley said her team working to develop Siang valley as ‘Silk Zone’ in the coming days.

“We have accumulated the commercial silk growers and women Self Help Groups having

sericulture and weaving activities, who are imparting regular training and technical

feedback from Indian Institute of Entrepreneurship Indian Institute (IIE) on silk culture

and quality thread production”, Aitoki said while exuding her hope that silk industries in

the region would attract the customers and generate commercial value of silk products in

the years to come.

Home

Minister Giriraj Singh inaugurates MSME Pavilion at India International

Trade Fair

(Source: Durgesh, Clipper28, November 16, 2018)

The Theme Pavilion of the Fair is on Rural

Enterprises in India and it focuses on two

flagship programmes of the Ministry of

MSME: Cluster Development Programme

with special focus on fragrance & flavour

development and Solar Charkha Mission

Union Minister of State (I/C) for MSME,

Giriraj Singh, inaugurated the MSME

pavilion at the 38th India International

Trade Fair (IITF) in New Delhi today.

Speaking on the occasion the Minister said that quality manufacturing and inclusive

growth of village industries plays a key role in the development of the country.

The Ministry of MSME has set up its stall under the banner of MSME Expo 2018. Over 50

MSME entrepreneurs are showcasing their products at the stall. The theme of this

year’s Expo is “Rural enterprises in India”. The MSME Expo exhibits are on Solar Charkha

Scheme Products, Process Development Centres, Skill Development and Procurement

Marketing Assistance Schemes.

www.citiindia.com

17 CITI-NEWS LETTER

The Theme Pavilion of the Fair is on Rural Enterprises in India and it focuses on two

flagship programmes of the Ministry of MSME: Cluster Development Programme with

special focus on fragrance & flavour development and Solar Charkha Mission. Other

schemes of the Ministry are also exhibited in the pavilion.

Women entrepreneurs, SC and ST entrepreneurs from North-Eastern States and

minorities are participating in the Fair.

A wide range of products which includes engineering goods, food, handicrafts, leather,

textiles and hosiery, electrical and electronic appliances, auto components, readymade

garments, gems & jewellery, cosmetics and herbal products are being displayed in the

MSME Expo, 2018. The Union Minister of State also inaugurated the Khadi Pavilion set

up by the Khadi and Village Industries Commission (KVIC).

During the inauguration, Additional Secretary & Development Commissioner MSME,

Ram Mohan Mishra, and Chairman KVIC, Vinai Kumar Saxena, were also present.

Home

--------------------------

www.citiindia.com

18 CITI-NEWS LETTER

GLOBAL:

US, China rivalry to dominate APEC summit

(Source: AFP, Economic Times, November 16, 2018)

Asian Pacific leaders fly into the unlikely venue of Port Moresby Saturday for a summit

developing into a tug-of-war for regional influence between an assertive China and an

increasingly withdrawn United States.

Donald Trump is skipping the two-day APEC meeting, sending Vice President Mike Pence

in his place, who is leaving after one day and staying in Australia rather than the dusty

and notoriously crime-ridden Papua New Guinea capital.

The contrast with China could hardly be more stark. President Xi Jinping arrived two days

before the summit for a state visit, and will open a road and school -- both funded by

Beijing.

Papua New Guinea has rolled out the red carpet for its visitor with Chinese flags fluttering

down the length of the new road and images of the Chinese leader beaming down from

massive billboards around Port Moresby

In an opinion piece published ahead of the visit, Xi vowed to "lend fresh impetus to our

common development" and "expand practical co-operation with Pacific Island countries

in trade and investment."

Ben Rhodes, former president Barack Obama's top foreign policy advisor, said Trump's

absence had "opened up an enormous opportunity for China to expand its influence."

Beijing has a "historic opportunity to make inroads across the region during Trump's

presidency," Rhodes told AFP.

Setting the scene for a potential clash in Port Moresby, a senior US official speaking ahead

of the summit accused Beijing in engaging in "dangerous debt diplomacy throughout the

region."

Several countries in the Asian Pacific region have accepted loans from Beijing for

infrastructure financing that are "not transparent," added this official, who declined to be

named.

The high-profile trade war between the world's two largest economies -- as well as tit-

fortat tariff measures -- will also serve as a backdrop to what could be a tense gathering.

www.citiindia.com

19 CITI-NEWS LETTER

Last-minute wrangling over WTO reform was understood to have delayed efforts to put

together a joint foreign ministers' statement, laying bare the divisions between the main

players.

"We are living in difficult times with rising trade tensions, rising protectionism and that

needless to say is reflected in the discussion we're having here in Port Moresby," Donald

Campbell, co-chairman of the Pacific Economic Co-operation Council think tank told AFP

It's going to be very difficult to get a ministerial statement for leaders that has consensus

in it as a result of that."

The official agenda for the talks resolves around greater economic integration for the

region and improving digital infrastructure.

But the hosting of the summit in Port Moresby, ranked as one of the world's least liveable

cities -- has gathered as much attention as the topics under discussion.

Violence and petty crime is rife -- including frequent carjackings by street gangs known

as "raskols" -- and delegates have been advised against travelling around the city,

especially after dark.

For safety and to avoid building new hotels that will later lie empty, officials and

journalists are staying on three gleaming white cruise ships moored in Port Moresby

harbour, with round-the-clock security.

Indeed, security throughout the city is tight, with Australia deploying 1,500 military

personnel including special forces, F/A-18 Super Hornet fighters patrolling the skies and

warships stationed a stone's throw away from the cruise ships.

And the run-up to the summit became embroiled in scandal when it emerged the Papua

New Guinea government had bought 40 Maseratis to ferry leaders around.

Prime Minister Peter O'Neill came under fire after splurging USD 6.4 million on the fleet

of luxury cars when half the population of Port Moresby live in squatter settlements.

O'Neill bristled when asked about this ahead of the summit, snapping at journalists: "Did

you ask the same question in Vietnam when they had the 400 plus Audis?"

I think it is just an overrated discussion. I'm not going to give it the credibility or credit it

deserves," he said.

"This is an opportunity for business leaders to see what Papua New Guinea's potential is."

But while ordinary residents may benefit from the shiny new Chinese-funding roads,

there was some doubt on the streets over how the average citizen would gain from the

APEC circus.

www.citiindia.com

20 CITI-NEWS LETTER

Will APEC make us rich like other nations?" asked Harriette Jack, 68. "Comparing to

other nations, we are not close."

Home

Indonesia launches new economic stimulus measures

(Source: Linda Yulisman, The Strait Times, November 16, 2018)

Indonesia announced on Friday (Nov 16) a new economic stimulus package to support

the rupiah and spur growth, in the lead-up to the presidential election in April 2019.

The country's ailing economy has emerged as a critical issue for President Joko Widodo's

administration two months into campaigning.

On Thursday, challenger Prabowo Subianto announced he will slash corporate and

personal income taxes if he comes to power, part of a plan to lure more investment to

South-east Asia's biggest economy.

The stimulus package announced by the government include, among other things, tax

cuts from next year for exporters of commodities in the mining, plantation, forestry and

fishery sectors who keep their export revenues in the domestic banking system.

Finance Minister Sri Mulyani Indrawati, one of several ministers fronting a press

conference at the presidential palace on Friday, said that a reduction of income tax will

apply to the interest of time-deposits both in local and foreign currencies deriving from

export revenues.

However, exporters who do not keep their export earnings domestically may be barred

from moving their goods overseas.

"Regarding the export revenues, we will impose an administrative sanction by way of

banning exports," she added.

Experts say it is a move to stem capital outflows which has seen the embattled rupiah

plunge to its lowest levels since the 1998 Asian Financial Crisis. Mr Joko had in July met

executives from about 40 exporters in Indonesia to also make the case for earnings

currently kept offshore to be brought home to help the rupiah.

Mr Satria Sambijantoro, an economist at Bahana Securities, said by keeping export

revenues in the country, the foreign exchange reserves can grow, which will help mitigate

capital outflows from Indonesia in the future.

www.citiindia.com

21 CITI-NEWS LETTER

"In the end, foreign exchange liquidity in domestic banks will remain ample at times of

external shocks," he told The Straits Times.

To attract foreign investments, the stimulus package will provide for a tax holiday for two

industrial sectors - agriculture-based manufacturing and digital industry - as well as allow

for a relaxation of the country's Negative Investment List for some priority sectors, such

as textile printing and weaving, said Industry Minister Airlangga Hartarto at the same

press conference.

The list specifies sectors which are either entirely closed or conditionally open to foreign

investment, including oil and gas, trading, pharmaceuticals and transportation.

With the change, foreign ownership in 54 business sectors, including the steel, chemical

and petrochemical industries can now be 100 per cent, up from the present 30 per cent to

67 per cent.

Coordinating Economic Minister Darmin Nasution said: "We cannot address current

account (deficit) issue only. That's important, but not enough. We must formulate policies

to give investors confidence and allow capital inflows."

The economic stimulus package follows similar moves made since 2015 to make it easier

for investors to do business in the country and spur growth.

It also complements the last stimulus package introduced in August last year with a goal

to encourage more foreign investment.

Among other things, the measures introduced in 2017 provided for an integrated business

permit system that enables investors to submit online all necessary documents for an

investment licence, instead of having to do it through multiple government departments.

All this against the backdrop of a worsening external economic situation that has seen

Indonesia struggle to meet Mr Joko's 7 per cent growth target.

The central bank anticipates the economy will expand by 5.1 per cent this year, compared

to last year's 5.07 per cent. The government said in August economic growth will be 5.18

per cent this year.

Indonesia has been struggling to manage its fluctuating currency as investors lose

confidence in the emerging economy amid developments in the global economy.

Centre of Reform on Economics Indonesia executive director Mohammad Faisal said that

with United States intensifying efforts to boost its economy, including adopting a hawkish

monetary stance, capital has been sucked out of emerging economies like Indonesia.

www.citiindia.com

22 CITI-NEWS LETTER

"All emerging markets are affected by shocks from the US, but our currency depreciation

is among the deepest," he said, pointing out that the country's current account deficit has

been a major trigger.

The rupiah has been on an upward trend since early November on the back of faster-than-

expected growth in the third quarter and better external outlook.

It traded at 14,611 rupiah per US dollar at the foreign exchange spot market on Friday's

closing session versus 14,665 a day earlier, according to data compiled by Bloomberg.

However, analysts warn that risks remain on the horizon, particularly with imports

traditionally spiking during the year-end holidays, which might contribute to a higher

current account deficit.

Indonesia posted a much-higher-than expected trade deficit of US$1.82 billion (S$2.5

billion) in October, as imports picked up much faster than exports, Statistics Indonesia

announced on Thursday.

The figure is the second-highest deficit this year after the US$2.03 billion deficit recorded

in July. The trade deficit has also contributed to a weakening of the rupiah.

Bank of Indonesia (BI) on Thursday raised its benchmark rate by 25 basis points for the

sixth time this year, to 6 per cent, in a further move to support the rupiah in anticipation

of a potential fourth hike this year in US rate, likely in December.

BI Governor Perry Warjiyo argued that the interest rate increases, along with instruments

to control imports, will help narrow the current account deficit to 2.5 per cent of GDP next

year.

This year, the central bank estimates the gap will stay below 3 per cent.

Home

Supply chain shift to Asean countries is accelerating

(Source: Phnom Penh Post, November 16, 2018)

GLOBAL trade tensions continue to dominate this year’s headlines and the shift of

production to efficient Asean countries is accelerating.

Asean businesses are clearly paying attention and are making incremental changes to

their supply chains, but is the pace of change fast enough?

HSBC’s global Navigator survey – which was launched this week and included the views

of more than 8,500 corporates (1,000 in Asean) – finds Southeast Asia as the most trade-

positive region in the world.

www.citiindia.com

23 CITI-NEWS LETTER

Moreover, Navigator reveals that business decision-makers in Asean view the global shift

towards protectionism as increasing the value of their business.

Being positive towards both trade and protectionism seems a little counter-intuitive at

first glance.

But dig a little deeper and it is clear that businesses are shrewdly seeing and capitalising

on the opportunity amid the emerging trade disruption.

Shifts in production to Asean can – and are – happening quickly.

Thailand and Malaysia already have existing production networks in electronics,

especially in hard disk drive (HDD) assembly.

Thailand exports about the same amount of finished storage units to the US as does China.

Given Asean’s existing capacity, it makes increasing sense to shift assembly to Southeast

Asia, especially now that Chinese shipment of HDDs from the US are subject to at least a

10 per cent tariff, making the move to Asean markets all the more compelling.

Singapore, the Philippines and Vietnam also produce a variety of electronic components,

while Vietnam and Indonesia have become increasingly competitive in light

manufacturing and textile exports.

Investment data already show an increased shift to Asean. Vietnam’s inbound

manufacturing investment has grown by 18 per cent this year, while Thailand and the

Philippines have both experienced a significant increase in net FDI.

Meanwhile Harley Davidson, Panasonic and Steve Madden said they will relocate

production to the region.

But while there are immediate opportunities, supply chain networks aren’t linear, rather

they are an ecosystem. So, it’s not as straightforward as a multinational corporation

shifting production to an idle factory.

Businesses first need to take a view on the overall impact of tariffs on Chinese goods.

Factors including labour costs, shipping costs, and regulations need to be weighed to

determine whether additional capacity will be built.

This has implications for Asean as a region and for individual suppliers.

For Asean, an increase in HDD exports is definitely welcome. But countries like Thailand

and Malaysia need to move further up the electronics supply chain into higher value-add

semiconductor fabrication, particularly of more advanced memory chips, to stay

competitive.

www.citiindia.com

24 CITI-NEWS LETTER

This will require nations and businesses to invest in infrastructure, new facilities and the

training of skilled workers. Economies that can improve the quality of their exports, and

have more room for reallocation and further upgrading, stand a higher chance in

capturing supply chain opportunities.

At an individual business level, suppliers across Asean need to accelerate the adoption of

new technologies such as automation and robotics, perhaps even running smart

warehouses. This can help enable an uptick in production capacity to meet global

demands, increasing production efficiency and in-time delivery.

Home

El Salvador invites Indian IT, energy companies

(Source: The Hindu Business Line, November 16, 2018)

El Salvador has invited Indian companies to forge alliances in technology and business

collaborations and exchange of ideas in Information Technology (IT) and energy sectors.

Ariel Andrade Galindo, Ambassador of El Salvador, in an interactive session organised by

the Bangalore Chamber of Industry and Commerce (BCIC) told industry leaders that since

Bengaluru is the IT Hub, El Salvador is very keen on having business tie-ups in the IT

sector.

El Salvador is also opening its doors to sectors such as agro-industry, light manufacturing,

textile and apparels and tourism among others.

Advantages

Galindo said, “We have developed a legal framework that facilitates and guarantees

protection of investments because we are interested in developing a long-term

relationship with investors. El Salvador is a cost-competitive country to set up and

operate a business in the region. It has free zones and service parks that stand out for their

strategic location and easy access to competitive infrastructure.”

“As part of our commitment to attract investment, we have implemented attractive tax

incentives. El Salvador is the most competitive country in Central America in terms of

benefits paid by employer. In addition, one of our main advantages is our labour force,

world famous for its industriousness, efficiency and work ethic,” he added.

Quoting the Index of Economic Freedom published by The Wall Street Journaland the

Heritage Foundation in 2018, Galindo said El Salvador’s economy is among the freest in

the region.

www.citiindia.com

25 CITI-NEWS LETTER

It is ranked the third in Central America and ninth in Latin America. El Salvador also

stands out in investment freedom, which indicates the country’s strength to maintain free

trade politics that promote investments. Kishore Alva, President, BCIC, and Joint

President and Executive Director, Adani-Udupi Power Corporation, talked on the IT

prowess of India.

Home

NCTO Testifies At U.S. International Trade Committee Hearing On U.S.-

Mexico-Canada Agreement (USMCA)

(Source: Textile World, November 16, 2018)

The U.S. International Trade Commission (ITC) held a public hearing on November 15-

16 in Washington, D.C. as part of its investigation of the likely impact of the U.S.-Mexico-

Canada Agreement (USMCA) on the U.S. economy. National Council of Textile

Organizations (NCTO) President & CEO Auggie Tantillo testified on Panel 4, General

Manufacturing, on Friday, November 16, the hearing’s second day.

Tantillo’s testimony as prepared for delivery is below:

Testimony of Auggie Tantillo, President and CEO National Council of Textile

Organizations

U.S. International Trade Commission Hearing on the United States-Mexico-

Canada Agreement

On behalf of the National Council of Textile Organizations (NCTO), thank you for the

opportunity to provide input regarding the recently negotiated United States-Mexico-

Canada Agreement (USMCA). NCTO represents the full spectrum of the U.S. textile

sector, from fibers to yarns to fabrics to finished products, as well as suppliers of

machinery, chemicals, and other products and services with a stake in the prosperity of

our industry. The entire U.S textile manufacturing chain, from fiber through finished

sewn products, employs 550,000 workers nationwide. In 2018, the industry

manufactured nearly $78 billion in output, while exporting more than $28 billion of our

production. I want to preface my remarks by stating that NCTO has not yet adopted a

formal position on USMCA. We have produced a detailed internal analysis on the

agreement for our members and have solicited their feedback. Once we have reviewed

input from our membership, the NCTO Board will come to final position that we will then

make public.

With that said, it is important to note that the United States, Canada, and Mexico have

built a vibrant and prosperous textile production chain over the 24-year life of the North

www.citiindia.com

26 CITI-NEWS LETTER

American Free Trade Agreement (NAFTA). In 2017, total textile and apparel trade

between the three countries was approximately $20 billion. U.S. exports accounted for

more than $11 billion of this trade, with Canada and Mexico serving as our two largest

export markets worldwide.

These figures compare to just $7 billion in textile trade between the three countries in

1993, the year prior to NAFTA’s implementation. An understanding of this data validates

that the current, yarn-forward structure embedded in NAFTA has been highly successful,

providing significant benefit to North American manufacturers throughout the entire

textile production chain.

It is for this reason that NCTO is very pleased that the basic textile origin rules adopted

originally in NAFTA were essentially reaffirmed in USMCA. Further, we commend the

three governments for creating a separate textile chapter in the new agreement as

opposed to relegating textiles to an annex of the broader market access provisions. A

stand-alone chapter recognizes the sensitivities associated with trade in this sector and

allows for unique provisions, such as separate and enhanced customs enforcement

language over the original NAFTA. Enforcement is critical in the textile sector as the

lucrative duty-free benefits create enormous incentives for fraud.

In terms of changes to the original text, NCTO is very supportive of revisions that will

require the use of USMCA-origin sewing thread, pocketing, narrow elastics, and coated

fabrics in certain end items. While there are transition periods associated with these new

requirements, their ultimate inclusion should offer a boost for U.S. producers formerly

left out of the origin rules in the original NAFTA. We estimate the USMCA market to be

$250 million annually for sewing thread for apparel applications and $70 million

annually for pocketing.

We are also appreciative of a key change made in the Government Procurement Chapter

of USMCA regarding the Kissell Amendment, which is a Buy American statute for textiles

that applies to the Department of Homeland Security (DHS). Kissell requires 100% U.S.

content, with very limited exceptions, for purchases by the Coast Guard and

Transportation Security Administration (TSA).

Regarding TSA procurement, Kissell has a problematic loophole tied to NAFTA that has

allowed Mexico to supply these contracts. As a result, under the terms of NAFTA, Mexico

can supply TSA uniforms made from Mexican fiber, yarn, and/or fabric. The TSA Mexico

loophole translates to a significant weakening of U.S. Buy American statutes. Noting that

DHS spent $34 million on clothing and textiles for TSA in FY2017, closing the Kissell

loophole was a substantive change from NCTO’s perspective.

While all the items mentioned to this point are clear improvements to the original NAFTA,

there was one key area of disappointment, from our perspective, with USMCA. NAFTA

www.citiindia.com

27 CITI-NEWS LETTER

incorporated a major exemption to the yarn-forward origin requirement through a system

of Tariff Preference Levels (TPLs). TPLs allow products to be shipped duty free among

free trade partner countries even though the components within the product are sourced

from countries that are not signatories to the agreement. While NAFTA TPLs have annual

limits that cap their impact to a degree, more than $641 million in textile and apparel TPL

shipments entered the U.S. last year. As such, eliminating the TPLs was a primary focus

of NCTO’s in the NAFTA renegotiation. While USMCA did reduce the size of some specific

TPLs, the reductions will not cut into existing trade levels. This outcome is frustrating

given the President’s stated goals of increasing benefits for U.S. manufacturers and

eliminating provisions that have helped non-signatory countries, such as China, take

advantage of tariff preferences intended for North American producers.

Conclusion

As stated earlier, NCTO is not yet in a position to communicate a formal position on

USMCA. We hope to have a decision finalized soon, which will be shared with both the

Administration and Congress as soon as we complete our review process.

Nonetheless, it is accurate to state that in an overarching fashion, the new agreement is

an improvement over the original NAFTA in many areas. This is certainly the case for

U.S. manufacturers of component parts such as thread, pocketing, narrow elastics, and

coated fabrics. There is also a clear victory on the Kissell amendment and a strong

upgrade in customs enforcement. With our strong disappointment in the TPL outcome

noted, we are also grateful for the Administration’s willingness to work with domestic

manufacturers in an effort to improve this important agreement. Thank you for this

opportunity to provide input, and I would be pleased to answer any questions that you

may have at this time.

NCTO is a Washington, DC-based trade association that represents domestic textile

manufacturers, including artificial and synthetic filament and fiber producers.

U.S. employment in the textile supply chain was 550,500 in 2017.

The value of shipments for U.S. textiles and apparel was $77.9 billion in 2017.

U.S. exports of fiber, textiles and apparel were $28.6 billion in 2017.

Capital expenditures for textile and apparel production totaled $2.4 billion in

2016, the last year for which data is available.

Home

--------------------------

www.citiindia.com

28 CITI-NEWS LETTER

www.citiindia.com

29 CITI-NEWS LETTER

www.citiindia.com

30 CITI-NEWS LETTER