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

27-02-2019 80.10 (-1.00)

26-02-2018 95.10

27-02-2017 85.15

New York Cotton Futures (Cents/lb) As on 01.03.2019 (Change from

previous day)

Mar 2019 71.80 (-0.61)

May 2019 72.82 (+0.46)

July 2019 74.01 (+0.43)

01st March

2019

CITI hails "Comprehensive Scheme for the Development of Knitting & Knitwear

Sector” as Historical

Higher exports widen wage inequalities in India, say World Bank and ILO

RBI forms panel to keep rupee stable

MSME meet in Chennai on March 4-5

Growth of global manufacturing slowed in 2018 according to United Nations

Industrial Development Organization (UNIDO) Industrial Statistics Yearbook

Cotton and Yarn Futures

ZCE - Daily Data (Change from previous day)

MCX (Change from previous day)

Feb 2019 20050 (-120)

Cotton 16115 (0) Mar 2019 20450 (-30)

Yarn 24855 (0) Apr 2019 20740 (-20)

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2 CITI-NEWS LETTER

-------------------------------------------------------------------------------------- CITI hails "Comprehensive Scheme for the Development of Knitting & Knitwear

Sector” as Historical

Sops galore in new knitwear scheme; govt to provide assistance of Rs 2 crore

per centre

Development scheme for knitwear sector launched

Textiles Minister interacts with industry associations of knitting wear sector

NIFT administration urged to conceive projects to study Suraj Kund craft mela

India, Latin American nations have huge potential to boost trade ties:

Commerce Min India, LatAm nations see scope for ties

Higher exports widen wage inequalities in India, say World Bank and ILO

Indian economy is losing momentum, data shows

RBI forms panel to keep rupee stable

MSME meet in Chennai on March 4-5

Tamil Nadu CM lays foundation stone for 12 projects worth Rs 14,071 crore

ASSOCHAM Appoints Ajay Sharma As Assistant Secretary General

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

Growth of global manufacturing slowed in 2018 according to United Nations

Industrial Development Organization (UNIDO) Industrial Statistics Yearbook

Azerbaijan to export cotton yarn to another European country

Indonesia, Australia to sign trade deal, says ministry

'Make in India' and 'Made in China' not zero-sum game

CuRe technology makes polyester chain circular together

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

NATIONAL

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

GLOBAL

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3 CITI-NEWS LETTER

NATIONAL:

PRESS RELEASE

CITI hails "Comprehensive Scheme for the Development of Knitting &

Knitwear Sector” as Historical

New Delhi, Thursday, 28th February, 2019: Under the dynamic leadership of the

Hon’ble Prime Minister of India, the Hon’ble Union Minister of Textiles, Smt. Smriti

Zubin Irani today launched the much awaited “Comprehensive Scheme for the

Development of Knitting & Knitwear Sector with various components

under PowerTex India”.

Shri Sanjay K Jain, Chairman, CITI welcomed the Scheme and hailed it as a historic step

which would create value to the bottom of the pyramid. Since the Knitting and Knitwear

Industry is predominantly MSME in size and mainly located in decentralised sector, the

scheme will help to promote Knitting and Knitwear Sector and thereby achieve the

inclusive growth in the country and is a positive step to fulfil our Honourable Prime

Minister’s Make in India dream.

CITI Chairman further stated that the scheme will enhance the sector’s contribution to

the nation building as Knitting and Knitwear Sector is one of the major segments of the

entire textile value chain and contributes about 27% of the total cloth production and

about 15% of knitted fabric is being exported besides export of knitted apparel. He further

informed that the share of knitted garments in value terms is about 38% in overall export

of clothing.

Mr Jain also pointed out that despite knitwear sector growing at a much faster pace than

weaving, it had been neglected till date and all schemes were just targeted for handloom

and powerloom Sector despite this segment being of similar nature and character. Today

knitwear is in everyone’s wardrobe in the form of innerwear, socks, tshirts, leggings etc

and its clusters badly needed this support. He said the industry had no words to thank

Hon’ble Prime Minister and Hon’ble Union Minister of Textiles for this great initiative

which will change the structure of knitwear industry in the coming days. The main

clusters to benefit from this announcement are Tirupur, Kolkata, Ludhiana, Kanpur and

NCR.

The highlights of the schemes are as follows:

1. Creation of new service centres by providing financial assistance upto Rs 2 crores

per knitting and knitwear service centers for adequate facilities for testing, trading,

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4 CITI-NEWS LETTER

sample development, consultancy, trouble shooting, facilitation services to the knitting

and knitwear clusters on PPP model with participation from industry/ association.

2. Modernisation and upgradation of existing PSCs in the knitting and knitwear

clusters by equipping the existing powerloom centers run by the TRAs or EPCs or any

other textile association with requisite machinery for training/ testing purposes required

for knitting and knitwear industries, financial assistanceupto Rs 20 lakh/ centre will be

provided.

3. Group Workshed Scheme for Knitting and Knitwear units to facilitate the

establishment of group Workshed for modern knitting machines and/or Knitwear which

will provide required scale of economy for business operations and improved working

condition.

4.Yarn Bank Scheme for Knitting and Knitwear unit to interest free corpus fund

to SPVs or consortium of knitting units to enable them to purchase yarn at wholesale rate

and give the yarn to the small knitting units thereby avoiding middleman/ local suppliers

brokerage on sales of yarn. The Govt. is providing interest free corpus fund upto Rs. 2

crore per yarn bank.

5.Common facility Centre for knitting and knitwear units to establish CFC in

various knitting and knitwear clusters for providing common facilities like processing,

dyeing, printing, design development, testing facilities, ETP, etc. The Govt. is providing

the subsidy maximum upto Rs. 4 crores including the yarn depot per project.

6.Pradhan Mantri Credit Scheme to provide adequate and timely financial assistance

to meet their credit requirements for investment needs for new entrepreneurs belonging

to SC/ST and women category. The financial assistance is provided in the form of margin

money subsidy at 25% basic cost of the eligible new machinery at ceiling of Rs 25 lakhs.

7. Solar Energy Scheme to alleviate the problem of power cut/ shortage, by proving

financial assistance/ capital subsidy to small units for installation of solar photo voltaic

plant to improve utility, efficiency, productivity, etc. Financial assistance upto 50% is

provided for installation of on-grid solar photo voltaic (without battery) and off-grid solar

photo voltaic (with battery). Enhanced benefits of 75% and 90% for SC/ST entrepreneurs

in the cost of solar panels.

8. Facilitation/ IT awareness/ publicity & Market Development assistance

Mr. Jain stated that the above schemes will also help to achieve the objectives of “Make

in India” programme as it will facilitate investment, enhance skill development and build

infrastructure for the development of Knitting and Knitwear Sector. He also observed that

the scheme will help to promote innovation by bringing in latest designs, brands, skill

development and upgradation.

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5 CITI-NEWS LETTER

The Scheme will also help to achieve economic, social and environmental sustainability

in the textile sector.

Mr. Jain concluded by saying that the scheme was a long pending demand of the industry

and will catalyse more investment and employment in textile industry and will provide

base for export of knitted apparel’s from the country.

Home

Sops galore in new knitwear scheme; govt to provide assistance of Rs 2 crore

per centre

(Source: R Ravichandran, Financial Express, March 01, 2019)

The objective of creation of new service centres (NSCs) on the PPP model is aimed at

providing adequate facilities for testing, training, sample development, consultancy,

trouble shooting and facilitation services.

A comprehensive scheme for the development of the knitting and knitwear sector with

various components under PowerTex India scheme was launched on Thursday by the

Union textiles ministry, aimed at boosting major clusters in India, including Tirupur

(Tamil Nadu), Ludhiana and Kolkata.

There are 8 components under this comprehensive scheme which include creation of new

service centres through the public-private partnership (PPP) model by

industry/associations in the knitting and knitwear clusters; modernisation and

upgradation of existing powerloom service centres, institutions run by textile research

associations/export promotion councils associations; group workshed scheme; yarn bank

scheme; common facility centre scheme for the units; Pradhan Mantri Credit Scheme;

solar energy scheme and facilitation, IT, awareness, studies, surveys, market development

and publicity, according to a document.

The objective of creation of new service centres (NSCs) on the PPP model is aimed at

providing adequate facilities for testing, training, sample development, consultancy,

trouble shooting and facilitation services. An association will be formed by the units to

run the service centres. First-in-first-out rules will be followed in case of testing samples.

The recurring expenditure for running the KSCs will be borne by the

stakeholders/associations. A financial assistance of Rs 2 crore per centre will be provided

towards purchase of testing equipment and machineries for training.

Under the modernisation and upgradation of existing PSCs component, the Union

government will provide financial assistance towards incurring expenditure to the

exsiting powerloom centres run by the textile research associations or any other

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6 CITI-NEWS LETTER

associations. A financial assistance of Rs 20 lakh per centre will be provided by the textile

commissioner to modernise such centres.

The group workshed scheme component is aimed at establishing group worksheds for

installation of modern knitting and knitwear machines in an existing or new clusters.

There will be an additional subsidy for construction of dormitory for workers.

The yarn bank scheme is aimed at enabling small units to purchase the yarn at wholesale

rate and in large quantities by avoiding middle man/local suppliers’ charges by way of

providing interest-free coupons fund to a special purpose vehicle (SPV). The Union

government shall provide an interest-free corpus fund, maximum of up to Rs 2 crore, per

yarn bank to SPV.

The common facility centre (CFC) scheme will enable to establish centres in various

clusters and provide pre- and post-knitting infrastructure to the group. These centres will

house design centre, studio, testing facilities, training centre, trade centre, common raw

material/yarn/sales depot, water treatment plant, among others. An assistance of Rs 4

crore will be made available for for setting up CFCs, including yarn depot.

According to the document, the Pradhan Mantri Credit Scheme aims to provide adequate

and timely financial assitance to the units to meet their credit requirement, investment

needs in a flexible and cost effective manner. The scheme will be implemented in all

knitwear clusters across the country.

The Solar Energy Scheme’s prime objective is to provide financial assistance/capital

subsidy to small sector and allied industry units for installation of solar phto voltaic plant

to avoid power cut. Knitting units having upto 6 machines and knitwear units having upto

50 stitching machines are eligible for this scheme. The union government will provide

financial assistance varying from 50% to 90% to the applicants of general category, SC &

ST respectively. Under ongrid upto 45KW a maximum of Rs 63,000 will be provided and

under offgrid upto 45 KW, a maximum sum of Rs 81,000 will be provided.

The knitting is a major segment in the entire textile value chain and this sector contributes

27% of the total cloth production and about 15% of knitted fabric is being exported besides

export of knitted apparel.

Sanjay K Jain, chairman, Confederation of Indian Textile Industry (CITI) while

welcoming the scheme and hailed it as a historic step which would create value to the

bottom of the pyramid. Since the knitting and knitwear industry is predominantly MSME

in size and mainly located in decentralised sector, the scheme will help to promote this

sector and thereby achieve the inclusive growth in the country and is a positive step to

fulfil our Honourable Prime Minister’s Make in India’ dream.

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7 CITI-NEWS LETTER

According to him, the scheme will enhance the sector’s contribution to the nation building

as knitting and knitwear sector is one of the major segments of the entire textile value

chain and contributes about 27% of the total cloth production and about 15% of knitted

fabric is being exported besides export of knitted apparel. He further informed that the

share of knitted garments in value terms is about 38% in overall export of clothing.

Despite knitwear sector growing at a much faster pace than weaving, it had been neglected

till date and all schemes were just targeted for handloom and powerloom sector despite

this segment being of similar nature and character, he added.

Home

Development scheme for knitwear sector launched

(Source: M. Soundariya Preetha, The Hindu, February 28, 2019)

Total outlay for the knitwear scheme is ₹47.72 crore

Union Minister for Textiles Smriti Zubin Irani launched a comprehensive programme on

Thursday for the the development of knitting and knitwear sector in the country under

the PowerTex India scheme.

The programme, the outlay for which is ₹47.72 crore, would be in operation till the end

of March next year.

The total outlay for PowerTex India Scheme and the Knitwear Scheme is ₹487.07 crore.

Of this, ₹439.35 crore is for powerloom units for three years from April 1, 2017 to March

31, 2020 and ₹47.72 crore for the knitwear scheme, according to a statement from the

Textiles Ministry. Almost ₹170 crore were disbursed to the powerloom sector till January

31, 2019.

Knitting is a major segment in the textile value chain, constituting 27% of the total fabric

produced in the country.

Knitwear clusters

Of the knitted fabric produced, 15% is exported. Some of the major knitwear clusters in

the country are Tiruppur, Ludhiana, Kanpur, and Kolkata, said the Textiles Minister.

The programme for knitting and knitwear units, catering to domestic and exports

markets, has eight components where the industries would get support to install

machinery under group work shed scheme, buy yarn, go in for solar energy, have common

facilities and create new service centres under public private partnership mode.

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8 CITI-NEWS LETTER

“Since the scheme is for knitting and knitwear units, stitching machinery can also be

installed under the group work shed scheme,” said K. Selvaraju, secretary general,

Southern India Mills’ Association (SIMA).

Raja N. Shanmugam, president of Tiruppur Exporters’ Association, said the scheme will

develop the industry in clusters. Units just coming up will benefit as there is support for

joint investment. “We need to wait and watch how the schemes will be taken forward,” he

said.

According to Sanjay K. Jain, chairman of Confederation of Indian Textile Industry, since

the knitting and knitwear industry is pre-dominantly MSME in size and mainly located in

decentralised sector, the scheme will help develop this sector.

Home

Textiles Minister interacts with industry associations of knitting wear sector

(Source: DevDiscourse, February 28, 2019)

Smriti Zubin Irani said knitting and knitwear sector is predominantly MSME in size and

mainly located in the decentralized sector and is one of the major employment generator

sectors.

Union Minister of Textiles, Smriti Zubin Irani, launched a comprehensive scheme for

Development of Knitting and Knitwear Sector under PowerTex India in New Delhi today.

The Textiles Minister also interacted with industry associations related to knitting wear

sector in three clusters of Kolkata, Tirupur and Ludhiana through a video link.

Smriti Zubin Irani said knitting and knitwear sector is predominantly MSME in size and

mainly located in the decentralized sector and is one of the major employment generator

sectors. It also has a significant contribution to the exports of textiles. Knitting is a major

segment in the entire textile value chain. The Minister further said that knitted fabrics

contribute to 27% of the total fabric production in India and 15% of knitted fabric is being

exported.

Textiles Minister assured that to look into the demand for creation of knitwear mark to

give quality assurance to the customers. The main components of the scheme are:

Creation of new service centres on Public-Private Partnership (PPP) model

by industry and association in the knitting and knitwear clusters.

Modernization and upgradation of existing power loom service Centers (PSCs) and

institution run by Textile Research Associations (TRAs) and Export Promotion

Councils (EPCs) Association in knitting and knitwear clusters.

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9 CITI-NEWS LETTER

Group work shed scheme.

Yarn bank scheme.

Common facility centre scheme.

Pradhan mantra Credit Scheme.

Solar Energy Scheme.

Facilitation, IT, awareness, studies, surveys, market development and publicity for

knitting and knitwear units.

There is an installed capacity of nearly 12,000 knitting machines under SSI fold and

nearly 4600 knitting machines under the non-SSI fold, besides a number of household

knitting machines. Some of the major clusters in the knitted garment sector are Tirupur

in Tamil Nadu, Ludhiana in Punjab, Kanpur in Uttar Pradesh and Kolkata in West Bengal.

Tirupur is the most important export cluster, followed by Ludhiana. More than 90%mof

the garment is manufactured in Tirupur are exported.

The Ministry has approved combined SFC of PowerTex India Scheme and Knitwear

Scheme with an outlay of Rs. 487.07 crores. Out of this Rs. 439.35 crore is for

PowerTexfor 3 years from 1.4.2017 to 31.03.2020 and Rs. 47.72 crores for Knitwear for

the remaining period of 2018-19 and for 2019-20.

Home

NIFT administration urged to conceive projects to study Suraj Kund craft

mela

(Source: Development Discourse, February 28, 2019)

The permanent campus building is under construction and is expected to be completed

by June 2020.

Union Minister of Textiles, Smriti Zubin Irani, launched five short term courses

at NIFT Panchkula, Haryana, through a video link from New Delhi today.

The permanent campus building is under construction and is expected to be completed

by June 2020. Till the completion of the permanent campus, the Institute will be run from

a temporary campus in Polytechnic-cum-Multi Skill Training Centre in Sector 26

Panchkula. The campus is being set up with the support of Department of Technical

Education, Government of Haryana.

Speaking on the occasion Smriti Zubin Irani urged the NIFT administration to conceive

special projects to study the impact of Suraj Kund craft mela and made up industry in

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10 CITI-NEWS LETTER

Haryana. She expressed hope that the students joining the new campus will not only be

able to learn technology but also understand the process of entrepreneurship. The Textile

Minister thanked the Haryana Government for providing land and infrastructure

support. The Minister also released the brochure of the courses offered in

the NIFT Panchkula.

The proposed one-year Certificate Programmes are:

Fashion Clothing & Technology

Design Development for Indian Ethnic Wear

Fashion & Media Communication

Textile for Interiors & Fashion

Fashion Knitwear Production and Technology

Fashion Clothing & Technology

The programme is tailor-made for professionals from the areas of fashion, apparel design,

construction and technology. The curriculum is designed with a view to also help

aspirants who would like to join the fashion industry.

Design Development for Indian Ethnic Wear

The programme focuses on dressmaking, value addition, pattern making and surface

techniques for Indian ethnic wear. It aims to develop entrepreneurial skills for

fashion, bridal market and designer market.

Fashion & Media Communication

The course aims at providing knowledge of the fashion industry, fashion editing, styling,

fashion ethics and computer-aided designing and animation techniques and will benefit

the existing and upcoming business in the vicinity.

Textile for Interiors & Fashion

The programme aims to train professionals and young enthusiasts to pursue careers in

interiors and the apparel industry.

Fashion Knitwear Production and Technology

The programme aims to impart intensive training to prepare professionals for the

knitwear garment industry, especially in the area of knitwear fashion coordination,

merchandising and production.

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11 CITI-NEWS LETTER

The Continuing Education Programme will enrol students of any age group. A pre-

requisite of 10+2 years of schooling is mandatory. The students will be selected based on

their performance in the entrance examination and interview conducted by NIFT. The

total numbers of students proposed in each programme will be 30.

Students will be exposed to experiential learning through laboratory and

projects. Industry visits will be arranged to nearby industries which will make the

students more prepared to take up jobs locally.

Home

India, Latin American nations have huge potential to boost trade ties:

Commerce Min India, LatAm nations see scope for ties

(Source: The Hindu Business Line, February 28, 2019)

India and countries of the Latin American and the Caribbean region have huge potential

to boost economic ties in areas like agriculture, health, energy and information

technology, the Commerce Ministry said on Thursday.

Quoting Commerce and Industry Minister Suresh Prabhu who addressed diplomats of

the Latin America and Caribbean (LAC) Strategic Economic Cooperation here

Wednesday, it said there is a need for a multi-pronged strategy to enhance bilateral trade

in merchandise and services.

The Ministry said Indian companies could form joint venture projects for cultivation of

lentils, oil-seeds and food grains, which are crucial import items, besides conducting joint

research in dairy farming, seeds and pulses.

Home

Higher exports widen wage inequalities in India, say World Bank and ILO

(Source: The Hindu, February 28, 2019)

‘They won’t solve country’s problem of jobless growth without policy

changes’

An increase in exports can lead to higher wages, mostly for educated and urban workers,

and speed a move from casual to formal sector jobs. However, it would also lead to greater

wage inequalities and would not actually grow the total labour market, the World Bank

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12 CITI-NEWS LETTER

(WB) and the International Labour Organisation (ILO) said in a report released on

Thursday.

To ensure that the gains from higher exports benefit a wider population, policy changes

were needed, wrote the authors of the report titled ‘Exports to Jobs: Boosting the Gains

from Trade in South Asia’. The report assessed the efficacy of increased exports in dealing

with the phenomenon of jobless growth, whereby the labour market has not kept pace

with the region’s high GDP growth.

A fresh econometric analysis proved that higher exports went hand-in-hand with higher

wages.

“If the value of India’s exports increases by $100 per worker, average annual wages would

increase by ₹572 per worker,” they estimated. However, the wage improvement was

larger for college graduates and urban workers; men benefited slightly more than women;

and rural workers and less-educated workers did not benefit. Thus, higher exports also

led to higher wage inequalities.

The report’s authors observed that there were some benefits for lower-skilled workers, in

terms of the formalisation of jobs. “Increased exports can explain the conversion of about

8,00,000 jobs from informal to formal between 1999 and 2011, representing 0.8% of the

labour force,” they wrote.

However, higher exports did not correlate with higher aggregate employment of local

labour markets, they cautioned. While an increase in labour demand might change the

mix between formal and informal sector populations, it would not increase the actual size

of the local labour market, mostly because of the cost of moving and the lack of

unemployment insurance or any other form of income support.

To spread the gains from exports more widely, the authors suggested policy changes.

“An increase in labour-intensive (as opposed to capital-intensive) production is likely to

have a broader impact on the wages of workers across all educational backgrounds, even

those in rural areas,” they opined. Greater participation of women and youth in export

industries by providing targeted skilling opportunities could also help, they added.

Home

Indian economy is losing momentum, data shows

(Source: Live Mint, February 28, 2019)

With eight of the 16 high-frequency macroeconomic indicators in the red and only four in

green, the Indian economy continues to remain weak, Mint Macro Tracker shows

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13 CITI-NEWS LETTER

The Indian economy’s momentum continues to slow, shows the latest update of the Mint

Macro Tracker, launched in October last year to provide a state-of-the-economy report

each month based on trends across 16 high-frequency economic indicators.

The Mint Macro Tracker shows that out of the 16 macroeconomic indicators, only four

were in the green (above the five-year average trend) as of January 2019, while eight

indicators were in the red (below the five-year average trend). This reading is significantly

worse than what it was six months ago, the data shows.

January’s score is also a shade worse than that of December 2018—which itself marked a

downward slide compared to previous months—when five indicators were in the green,

and eight indicators were in the red.

The domestic consumer economy remains the weakest spot, with automobile sales

falling, air passenger traffic sluggish, and tractor sales anaemic.

Data from the consumer confidence surveys of the Reserve Bank of India (RBI) shows

that the gap between respondents who claim to have raised non-essential spending and

respondents who claim to have lowered non-essential spending has been shrinking in

recent months, with 14.3% net positive response in December 2018 compared with 22.3%

net positive response in September 2018.

Home

RBI forms panel to keep rupee stable

(Source: The Hindu, February 28, 2019)

The Reserve Bank of India (RBI) has formed a task force on the offshore rupee market. It

will be headed by former Deputy Governor Usha Thorat and will recommend steps for

ensuring the stability of the currency.

“The task force shall examine the issues relating to the offshore rupee markets in depth

and recommend appropriate policy measures that also factor in the requirement of

ensuring the stability of the external value of the rupee,” the central bank said.

The committee would submit its report by the end of June 2019.

The task force will assess the causes behind the development of the offshore rupee market,

and study the effects on exchange rate and market liquidity in the domestic market.

It would also recommend measures to address concerns arising out of offshore rupee

trading and propose measures to generate incentives for non-residents to access the

domestic market..

Home

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14 CITI-NEWS LETTER

MSME meet in Chennai on March 4-5

(Source: The Hindu Business Line, February 28, 2019)

MSME Development Institute, Chennai, a division of Union Micro Small and Medium

Enterprises (MSMEs) Ministry, will organise a two-day trade fair, ‘Udyam Samaagam’, at

the Institute’s campus here on March 4 and 5.

The trade fair, themed ‘General Engineering & Auto component manufacturing sector’

will focus on showcasing the strength of MSMEs in these sectors and will enhance their

marketing avenues.

The other objective of the two-day event is to bring MSMEs, Central and State public

sector undertakings (PSUs), original equipment manufacturers (OEMs) and other

stakeholders on a common platform.

The event will also create awareness about various State and Central government schemes

to the participating units, besides disseminating information on export/import (exim)

polices of the government.

Over 100 existing micro & small enterprises (MSEs) will exhibit their products and more

than 15 Central PSUs and research institutes will participate in the programme. The event

will also see a national workshop on exim policy and procedures of the government of

India.

Home

Tamil Nadu CM lays foundation stone for 12 projects worth Rs 14,071 crore

(Source: Times of India, February 28, 2019)

With model code of conduct for parliamentary polls just days away from coming into

effect, Tamil Nadu chief minister Edappadi K Palaniswami has gone on an inauguration

spree. He laid foundation stones on Wednesday for 12 projects costing 14,071 crore for

which memorandums of understanding were signed in the recently held global investors'

meet here, launched distribution of free laptop to students, unveiled MGR centenary arch

and residential quarters for police personnel and fire and rescue service stations.

The event took place via video conferencing from his chamber in Secretariat, with his

cabinet colleagues joining in. The industrial projects are estimated to provide

employment to 12,294 people, said an official release. Palaniswami inaugurated the

commercial production of prawn culture feed by Sheng Long Biotech India Private

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15 CITI-NEWS LETTER

Limited, the MoU for which was signed during the first edition of Global Investors Meet

in 2015.

Foundation stones were laid for South Korean auto major Hyundai's 7,000 crore electric

car unit and expansion of the company's existing facility in Irungattukottai and

3,100crore expansion project of tyre manufacturer MRF in Perambalur. MRF unit will

have a most advanced test track too.

The chief minister laid the foundation stone for Sundaram Clayton Group's 1,200 crore

two-wheeler and auto component expansion project in Hosur and Oragadam. The facility

is expected to provide job to 800 people. A new auto component unit of Wheels India

Limited will come up at 600 crore in SIPCOT industrial park in Thervoykandigai in

Tiruvallur. It will help generate employment for 1,800 people.

Another auto component manufacturing unit from Mando Automotive India Limited will

be set up in Pillaipakkam SIPCOT industrial park at 844 crore. The project was to take off

originally in Anantapur district in Andhra Pradesh and land was also allotted, sources

said.

Salcomp Manufacturing India Private Limited has planned expansion of mobile charger

unit in Nokia Telecom SEZ in Kancheepuram district. The 500 crore project, which will

provide employment to 5,600 people, was originally scheduled to take off in Noida.

Laskhmi Machine Works Limited in Coimbatore will expand its textile machinery

capacity and defence and aerospace component unit, besides solar power project and

construction of warehouse at 600 crore.

Home

ASSOCHAM Appoints Ajay Sharma As Assistant Secretary General

(Source: Everything Experiential, February 28, 2019)

His present responsibilities at the ASSOCHAM, include sectors like the Banking & Finance,

Insurance, Textiles, MSME, Private Equity, Capital Markets & Corporate Affairs, besides

domestic exhibitions.

Ajay Sharma, has been appointed as the new Assistant Secretary General of The

Associated Chambers of Commerce & Industry (ASSOCHAM) .

With post graduate degrees in Management (MBA) from Belgium and Law from the Delhi

University, Sharma brings rich experience of working with Public Sector Company and

the Business Chambers as he had a very long stint earlier and played a stellar role in

reviving the ASSOCHAM from 2005 onwards.

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16 CITI-NEWS LETTER

In between he also had a brief yet enriching experience working with the PHD Chamber

of Commerce & Industry.

Sharma has a very fine understanding of the Government functioning and is well

networked with industries including the Defence & Homeland Security, Telecom, e-

Commerce, Luxury & Lifestyle, Auto Auto Ancillaries & Electric Vehicles, Private Equity,

Cyber Security, Nuclear Energy, Civil Aviation, Electronics, Digital India & e-Governance,

Media & Entertainment and Sports.

His present responsibilities at the ASSOCHAM, include sectors like the Banking &

Financial Sectors, Insurance, Textiles, MSME, Private Equity, Capital Markets &

Corporate Affairs, besides the domestic Exhibitions.

Home

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

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17 CITI-NEWS LETTER

GLOBAL:

Growth of global manufacturing slowed in 2018 according to United

Nations Industrial Development Organization (UNIDO) Industrial Statistics

Yearbook

(Source: Africa News, March 01, 2019)

The rate of global manufacturing growth has slowed, mainly as a consequence of trade

and tariff barriers, according to the International Yearbook of Industrial Statistics

2019 published by the United Nations Industrial Development Organization (UNIDO).

World manufacturing value added rose by 3.6 per cent in 2018, slightly lower than the 3.8

per cent recorded in the previous year. The slowdown is mainly attributed to emerging

trade and tariff barriers involving the USA and China, as well as the USA and the

European Union (EU), which has exposed markets to a significant amount of uncertainty,

limiting investment and future growth. China, the EU and the USA account for over half

of global manufacturing production.

The slowdown in production in 2018 was observed in industrialized economies as well as

developing and emerging industrial economies. The manufacturing value added (MVA)

growth rate for industrialized countries rose by 2.3 per cent in 2018, compared to 2.6 per

cent in 2017. For the group of developing and emerging industrial economies, the MVA

growth rate in 2018 was 3.8 per cent, down from 4.1 per cent in 2017.

In North America, manufacturing production maintained relatively higher growth,

mainly thanks to the USA where manufacturing production rose at the higher pace of 3.1

per cent in 2018, compared to 1.8 in 2017. However, in the European Union and East

Asian countries, the annual manufacturing growth rate decreased, from 3.5 per cent to

2.6 per cent, and from 3.1 per cent to 1.9 per cent, respectively.

The International Yearbook of Industrial Statistics 2019 also presents data at

manufacturing sector level by country. For example, if China is excluded from a global

ranking of developing countries, Indonesia ranked top among food manufacturing and

rubber and plastic products, while India took first position in production of textiles,

pharmaceuticals and basic metals. Similarly, Bangladesh stood as the largest producer of

wearing apparel.

Overall structural change in manufacturing was characterized by the increasing share of

high-tech sectors in manufacturing output. For example, the medium-high and high-

technology sectors accounted for more than 75 per cent of manufacturing of Singapore.

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18 CITI-NEWS LETTER

Japan and the Republic of Korea were among other leading manufacturers in high-tech

sectors.

African countries continue to struggle in their efforts to catch up with the industrial

development of the rest of the world. The average share of manufacturing in GDP of

African least developed countries (LDCs) has further dropped to 8.3 per cent compared

to the 19.6 per cent average of the developing countries and emerging industrial

economies group. This represents a serious challenge to the Sustainable Development

Goal 9 target of doubling the MVA share in GDP in LDCs by 2030.

UNIDO’s Yearbook presents detailed, country-specific, business structure statistics,

which provide empirical evidence for formulating industrial policy and carrying out

comparative analysis of structural change and productivity. An analysis of global

manufacturing’s current growth trends is provided by quarterly reports.

UNIDO maintains an international industrial statistics database covering mining and

quarrying, manufacturing, electricity gas and water supply and the international trade of

manufactured goods. UNIDO data can be accessed online or obtained in CD products.

The International Yearbook of Industrial Statistics 2019 is a joint publication of UNIDO

and Edward Elgar Publishing Limited. ISBN 978-1-78897-788 3 (cased) 978-1-78897-

789 0 (e-book)

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Azerbaijan to export cotton yarn to another European country

(Source: Mirsaid Ibrahimzade, MENAFN, February 28, 2019)

In the coming days, the Gilan Textile Park company will begin to export its first batch of

yarn to Portugal, the company told Trend.

According to the source, the primary shipments there are expected to be in small

quantities.

"Currently, the company is negotiating with European partners on the export of finished

products. progress is also expected in this direction," the company said.

The company products are environmentally friendly and meet international quality

standards.

Based on its production potential, Gilan Textile Park is considered to be one of the largest

processing enterprises not only of Azerbaijan, but also of the whole region.

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19 CITI-NEWS LETTER

Gilan Textile Park uses cotton grown in Azerbaijan as a raw material for the manufacture

of various products, and provides great support for the development of industry and

agriculture in the country.

Weaving, dyeing and sewing factories operate in the base of the Gilan Textile Park,

commissioned in 2012 in Sumgayit.

Gilan Textile Park producesproducts of high quality cottonmeeting European standarts.

The base of the enterprise includes Weaving factory, Paint and Sewing factory. Currently,

in Textile Stock Gilan bedroom garments and also uniforms for different destination are

produced. No chemical products harming health of the human are used in production.

There is a rich tradition and great potential for the development of cotton growing in

Azerbaijan. Year 2016 was a turning point from the perspective of cotton-growing in the

country.

In early 2017, the State Program for 2017-2022 was approved with an aim of

strengthening measures directed at developing this sphere. The purpose of the State

Program is to develop cotton growing, increase export potential in this sphere, ensure

employment of the rural population and increase the production of cotton.

The new goal of the state is to bring the cotton production up to 500,000 tons by 2022

from the current 260,000 tons.

Statistics says that Azerbaijan exported cotton fiber worth $80.5 million (an increase of

49 percent) and cotton wool yarn worth $24 million in 2018. Compared to 2017, exports

of cotton yarn increased by 2.4 times.

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Indonesia, Australia to sign trade deal, says ministry

(Source: Global Times, February 28, 2019)

A long-awaited trade deal between Indonesia and Australia will be signed next week,

Jakarta said Thursday, after months of diplomatic tension over Canberra's contentious

plan to move its embassy to Jerusalem.

Indonesian trade minister Enggartiasto Lukita and his Australian counterpart Simon

Birmingham are set to sign the multibillion dollar agreement in Jakarta on Monday,

according to a trade ministry invitation sent to journalists.

The pact includes better access for Australian cattle and sheep farmers to Indonesia's 260

million people, while Australian universities, health providers and miners also benefit

from easier entry to Southeast Asia's biggest economy.

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20 CITI-NEWS LETTER

Bilateral trade was worth $11.7 billion in 2017. Greater access to the Australian market is

expected to spur Indonesia's automotive and textile industries, boosting exports of

timber, electronics and medicinal goods. The deal has been in negotiations since 2010

and was expected to be signed last year, but it stalled when Prime Minister Scott Morrison

proposed the relocation of Australia's Embassy to Jerusalem.

Morrison first floated the shift in October, ahead of a critical by-election in a Sydney

suburb with a sizeable Jewish population. Indonesia was angered by the proposal.

Most nations have avoided moving embassies to Jerusalem to prevent inflaming peace

talks on the city's final status - until Trump unilaterally moved the US Embassy early last

year.

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'Make in India' and 'Made in China' not zero-sum game

(Source: Li Tao / Qin Weina, Global Times, February 28, 2019)

India's first semi high-speed rail, the Vande Bharat, has become the focus of attention

over the past few days, as various "accidents" reported by the Indian media have once

again triggered discussion and even mockery of India's manufacturing initiatives. Some

people seem to be ballyhooing the idea of a "dragon-elephant rivalry" by claiming that

"Made in India" labels will replace those that say "Made in China," which is not consistent

with the actual situation.

In September 2014, Indian Prime Minister Narendra Modi launched the ambitious "Make

in India" initiative, aimed at turning the country into a global manufacturing hub and

raising manufacturing's proportion of the GDP to 25 percent within 10 years.

Based on the experience of countries that have undergone economic transition, a mature

manufacturing sector is the key to maintaining high economic growth. The 2008 global

financial crisis and the subsequent anti-globalization sentiments further highlighted the

importance of manufacturing in economic development. However, India's manufacturing

sector generally accounts for 15 to 17 percent of GDP, far below the 25 to 40 percent shares

reported by developed countries and other emerging economies.

The reason is mainly that India has chosen a different industrialization path from the

West and China, focusing on its technology-intensive, service-oriented industrial model.

As the country gave priority to the development of a technology-intensive sector, its IT

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21 CITI-NEWS LETTER

and software services have reached an advanced level globally, earning it the nickname

"the world's back-office."

Yet, as the Indian economy has developed, its imbalanced industrial structure and high

unemployment rate have become increasingly serious, as the services industry is limited

in creating jobs. Despite the rapid development and high output value, the software,

financial, telecommunications and other services industries contribute very little to

employment, while traditional services such as wholesale, retail and transportation may

create a large number of jobs, but contribute little to GDP. Therefore, to make use of its

demographic dividend, adjust industrial structure and increase jobs, the Modi

government has decided to promote the "Make in India" initiative.

While the "Make in India" initiative has indeed achieved certain progress over the years,

there is still a gap between the policy's effectiveness and the original intention of the Modi

government.

Some Chinese have mocked "Made in India," while others believe Indian manufacturing

could pose a threat to China's manufacturing sector. In our opinion, "Made in India" is

now facing a similar situation as "Made in China" in some respects, which is why we

should take an objective view toward it.

First of all, the export volume of China's manufacturing sector has been ranked first in

the world for years, while exports of India's manufacturing are still far behind China,

despite its rising trend.

Second, China has been moving up the global value chain to shift from input- and market-

driven industrialization to a technology-driven model. With the diminishing advantage of

labor-intensive manufacturing in China, it is essential for its manufacturing sector to

transform. Meanwhile, India's industrialization path is just the opposite of China, shifting

from a technology-driven model to a market- and input-driven one to create more jobs

and give play to its demographic dividend. The difference between China's and India's

manufacturing development stages indicates room for cooperation for the two countries

in matching their manufacturing strategies. By using India's labor cost advantage and

China's capital and technology advantages, both sides can jointly improve their

manufacturing levels to achieve mutual benefit and common development.

Third, industrial competition is weak, while there are many complementarities between

manufacturing industries in China and India. They mainly compete in industries like food

processing and manufacturing, beverages, textiles and other primary products, oil

processing, coking, and nonferrous metal, while they are complementary in medical

equipment manufacturing, transportation equipment manufacturing, special equipment

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22 CITI-NEWS LETTER

manufacturing and other capital- and technology-intensive industries. In terms of trade,

China has maintained a relatively high surplus against India. But if the two countries can

adjust their trade structure based on their own advantages and disadvantages, bilateral

trade may see greater improvement, releasing their trade potential accordingly.

In this sense, we are not against the idea of the smooth development of the "Make in

India" initiative, which could help form a large regional manufacturing cluster to cover

East Asia, Southeast Asia and South Asia. Its success will not only be conducive to the

development of China-India relations and facilitate the building of the "Asian Century,"

but will also help enhance the global industrial chain and push forward progress in

globalization.

Li Tao is executive director of the Institute of South Asian Studies at Sichuan University.

Qin Weina is a PhD student at the Center for Security and Development of Western

Frontier China of Sichuan University. bizopinion@globaltimes.com.cn

Home

CuRe technology makes polyester chain circular together

(Source: Fibre2Fashion, February 28, 2019)

CuRe Polyester Recycling Technology, a new investment in low energy polyester recycling

has been launched, treating any type of used polyester, removing colour and turning it

back into clear pellets with the same properties. The goal is to recycle used polyester waste

streams in polyester suitable for high demanding applications like carpets and textiles.

The recycling process is developed by Cumapol, DuFor and two Universities of Applied

Science (NHL Stenden and Windesheim). Other partners working together with CuRe are

Morssinkhof Plastics and DSM-Niaga. CuRe is a pilot plant that enables a continuous

polyester recycling process for various contaminated polyester waste streams - including

packaging materials and textile products - and cleans the original plastic material from

contaminants and colour. The CuRe project aims to test the technical financial and

sustainability of the new solution. This line is expected to be operational by summer 2019.

"Realising low energy recycling for different polyester product waste streams is a major

step towards a fully circular polyester chain. The partnership kicks-off with a pilot plant,

to prove the technical and financial sustainability of a new technology for thermoplastic

polyester recycling," Cumapols said on its website.

"Using this new CuRe Technology, we can use different sources of polyester waste

streams. Food safety regulations mean we have to use 95 per cent PET from food

packaging for mechanical recycling. However, with our CuRe Technology we can use

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23 CITI-NEWS LETTER

every kind of polyester starting material including colored polyester. And there is another

option: during this CuRe recycling process, bio based monomers could be incorporated

into the polymer chain to make it even more sustainable," Marco Brons, technical

director.

"The optimum utilisation of raw materials is an increasingly large challenge being faced

by today’s society," said Mark Ruesink, innovation director of Morssinkhof Plastics. "We

are proud to announce that additional to our already successful Mopet process we now

take our next step with CuRe. This will allow us to reduce the polyester waste mountain

even more than today possible."

"This partnership fits our strategy to take responsibility beyond the product design for

recyclability," said Kelly Hall, managing director of DSM-Niaga. "DSM-Niaga is dedicated

to contributing in key technology developments that further enhances the opportunities

of local polyester recycling on a global scale."

"We are very excited to have other companies invest in our expertise and co-develop the

future of polyester upcycling. Since the plant will be installed in the Cumapol premises in

Emmen, we will increase our capacity by another 25 kilotons. With that we also want to

prove to the world the possibilities of large scale production of our CuRe technology,"

Brons added.

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