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The Dollar Business Bureau Apparel exports from India has dropped by 17.78% in the month of March this year to $1.49 billion as compared to $1.81 billion in the same month last year, according to the industry body Apparel Export Promotion Council (AEPC). “India’s apparel exports has shown a decline of 17.78% for the month of March 2018 against the corresponding month of March 2017 as per the latest trade data,” AEPC said in a statement. “The Indian readymade garments (RMG) exports were to the tune of $1.49 billion in March this year against the $1.81 billion, in the corresponding month last year,” the statement said. In rupee terms, exports were Rs.9694.68 crore in the given month as against Rs.11946.37 crore in March 2017, ...

The Dollar Business Bureau India’s apparel production has shown a decline of 10.4%, during the period April-January 2017-18, according to the India Industrial Production (IIP) data released by the Ministry of Statistics and Program Implementation. The production of apparels is witnessing a continuous decline since May 2017, on month-on-month basis. From a positive growth of 1.3% in April last year, the production declined by 5% in the month of May. In June, the decline was 3.2% while in July, it recorded a dip of 5.1%. In the months of August, September, October, November and December, the apparel output recorded a drop of 6.4%, 7.2%, 11%, 13.1% and 13.5%, respectively, as per the IIP figures. Commenting on the decline, HKL Magu, Chairman, Apparel Export Promotion Council (AEPC) ...

By Abin Daya It’s more than a month after the implementation of GST and the wrinkles are slowly being ironed out. A tax reform on such a massive scale will definitely have teething troubles. As the experiences grow, and as pain points emerge, these will need to be met with and resolved on priority. One such issue that exporters have had is on exporting under Letter of Undertaking, LUT/Bond. While exporters were permitted to submit LUT or Bond to avoid payment of IGST and thereby reduce their working capital burden, there was no uniformity in understanding and implementation of the said requirement by the Field Officers. This led to significant confusion and difficulties for exporters. The Policy wing of GST has now issued ...

By Abin Daya The Government is working to improve the ‘ease of doing business’ ranking of the country, and one of the areas of focus is the time it takes for manufacturers to get their imported raw materials and components, out of the port and into their factories. The numbers are not very encouraging, and it currently takes about 9-10 days to get a container out of the port and on its way to the manufacturer. With a view to improving this, the Direct Port Delivery arrangement was started in 2016. How is it faring? Please read on in this week’s update. The most important story of this week, definitely, is the 25 bps cut that the Monetary Policy Committee permitted on ...

By Abin Daya The LIBOR is dead! Well, not quite. But in the next 4 years, it could be. The The Financial Conduct Authority (FCA) announced this week that it intended to phase out the LIBOR by 2021. Post that, banks would no longer be compelled to provide interest quotes to the Inter-Continental Exchange, and in the absence of these, the benchmark would die a natural death. What comes after that? We don’t know yet. But the first item this week is something closer home – India’s foreign trade numbers for the month of June. Apart from what is included in the update, I also tried to explore if there was some sort of correlation between industrial production growth and export performance. ...

By Abin Daya Thanks to many exporter conferences that I have been involved in, I have had the opportunity to meet and interact with quite a few businesses recently. A very common theme that is emerging in my discussions with them is a sense of frustration and exhaustion with the sheer number of ‘disruptive changes’ that have been coming through one after the other. Starting with the demonetisation in Nov 2016, they have had to handle the fall-out of the exporters’ caution list, and now are preparing to be compliant for GST, all of which have negatively impacted business in the short-term. Businesses do not have time to do business as they are busy with complying with the changing requirements, the cost of ...

The Dollar Business Bureau As growth of country’s industrial production slipped to 3.1% in the month of April, India Inc reiterated its demand for a cut in interest rate by the Reserve Bank of India (RBI), stating that it was imperative to bolster growth as well as consumer demand. Industry body ASSOCHAM said on Monday that the industry has been disappointed by the RBI’s status quo on the interest rates as there was a possibility for a cut in the key policy rate. “It is unfortunate for the industry that while the government has taken steps to revive the demand by implementing reforms, RBI's stance to maintain the status quo has hit the expectations of the industry though there was a room for ...

By Abin Daya The oil situation is more fluid than the fuel itself, despite all the efforts of OPEC and non-OPEC producers. While the extending of the supply cut was to have provided some stability to prices, this does not seem to be the case. Prices of India’s basket of crude have dropped to their lowest levels in 28 weeks. And with the strengthening of rupee, this seems to have given RBI ample opportunities to shore up its FX reserves, which are currently at $381Bn, more than a year’s import worth. The only thing missing here is the drop-in retail fuel prices. Hopefully, it will happen soon. The Provisional Estimates of full year and Q4 GDP and GVA numbers were released on ...