The Government of India has made suitable amendments in the Foreign Trade Policy and Handbook of Procedures to allow for International Trade Settlement in Indian Rupees (INR) i.e., invoicing, payment, and settlement of exports / imports in Indian Rupees. Accordingly, the Directorate General of Foreign Trade (DGFT) had earlier introduced Para 2.52(d) vide Notification No. 33/2015-20 dated 16.09.2022 to permit invoicing, payment and settlements exports and imports in INR in sync with RBI’s A.P. (DIR Series) Circular No.10 dated 11th July 2022.
In continuation to the above notification, changes have been introduced under Para 2.53 of the Foreign Trade Policy, for grant of exports benefits / fulfilment of Export Obligation under the Foreign Trade Policy, for export realisations in Indian Rupees as per the RBI guidelines dated 11th July 2022.
The updated provisions for Export Realisation in Indian rupees been notified for, imports for exports (Para 2.46 of FTP), export performance for recognition as Status Holders (Para 3.20 of FTP), Realisation of export proceeds under Advance Authorisation (AA) and Duty Free Import Authorisation (DFIA) schemes (Para 4.21 of FTP) and Realisation of Export Proceeds under Export Promotion Capital Goods (EPCG) Scheme (Para 5.11 of HBP).
Accordingly, benefits / fulfilment of Export Obligation under the Foreign Trade Policy has been extended for realisations in Indian Rupees as per the RBI guidelines dated 11th July 2022. Given the rise in interest in internationalisation of Indian Rupee, the given Policy amendments have been undertaken to facilitate and to bring ease in international trade transactions in Indian Rupees.
Union Minister of Commerce & Industry Shri Piyush Goyal in a virtual meeting with H.E. Don Farrell, Minister of Trade and Tourism, Government of Australia noted that the early implementation of IndAus ECTA is in the best interest of both the countries. Meeting was held to discuss the status of ratification of IndAus ECTA (India-Australia Economic Cooperation and Trade Agreement), its early implementation and to deliberate upon way forward for a comprehensive IndAus ECTA.
During the meeting both the delegations reviewed and appreciated the progress made in ratification of the IndAus ECTA, which was signed on 22nd April, 2022.
The Australian Minister informed that the IndAus ECTA as well as the amendments to the domestic regulation of Australia for resolving the issues related to Double Taxation Avoidance Agreement (DTAA) had been introduced in the Australia Parliament and likely to be ratified shortly after the Joint Standing Committee on Treaty submits its report to the Australian Parliament. He further mentioned that the processes related to the ratification of the agreement will be completed in the following weeks.
Both the parties acknowledged the importance of initiating discussions for the comprehensive IndAus ECTA, as agreed under IndAus ECTA signed on 2nd April, 2022.
They agreed to hold the annual Joint Ministerial Commission (JMC) meeting sometime early next year. In the meantime, experts from both the sides will have their first round of discussions, which will lay a roadmap for the Joint Ministerial Commission meeting.
Delegations noted that both nations share a special partnership based on mutual values of pluralistic parliamentary democracies, expanding economic strategic engagement and long-standing people to people ties.
Meeting concluded with both the parties acknowledging the need to redefine their economic relations exploring the opportunities offered in trade and investment.
Union Minister of Textiles, Commerce & Industry, Consumer Affairs and Food & Public Distribution, Shri Piyush Goyal said that Textile Industry has a big role to play in making Free Trade Agreements a success. Delivering the Keynote address at the 10th Asian Textiles Conference TEXCON on the theme- ‘Reimagining the Textile and Apparel Industry for the next Decade’, he said that FTAs with Developed Countries is high on the agenda of Modi Government.
Shri Goyal said that innovation is going to be the defining feature in India’s march towards becoming a Developed Nation. He highlighted the role of innovation across all value chains in the Textile sector and also urged the Textile sector to focus on recycling and digitization. He said if the industry focuses on innovation, sustainability, digitisation, newer products and utilisation of Free Trade Agreements (FTAs), it can grow fast and compete with the best in the world.
Speaking on sustainability, Shri Goyal said that textiles sector can reduce the pressure on the environment by using reusable resources as well as reduce its own production costs.
Shri Piyush Goyal said that digitisation is another area which can help optimise the entire value chain in the sector. He expressed satisfaction at the fact that the industry captains are talking about digitisation. In current era of information technology, every industry is benefitting from new technologies like blockchain and more. He suggested that the industry should think about high quality products and elementary products like zip and embellishments, which the Indian textile industry imports at present.
The Minister said that the industry is now benefitting greatly from the vision of Prime Minister Narendra Modi. Shri Goyal said that as we complete 75 years of independence, we can take pride in achievements of Textiles sector over 75 years.
Referring to PM’s independence speech where he referred to Panch Pran of Goal of Developed India; Remove Colonial Mindset, Take Pride in Roots; Unity and Sense of Duty, the Minister said, “Every citizen has a role to play with collective energy and collective commitment and the resolve of 1.3 billion people will help us achieve the five commiments articulated by the Prime Minister.
Complementing Confederation of Indian Textile Industry, CITI, for bringing together all stakeholders of the Textiles value chain on one platform , the Minister said that the theme, ‘Reimagining the Textile and Apparel Industry for the Next Decade’ is very appropriate, specially with Indian textile exports aiming to reach the target of $100 billion by 2030. He appreciated the forward looking approach of the 10th edition of the Asian Textile Conference.
CITI and Egyptian Cotton also signed a Memorandum of Understanding (MOU) in the presence of the Minister, Shri Piyush Goyal. Both the industry bodies will work together for mutual benefits.
Minister of State for Textiles, Smt. Darshana Vikram Jardosh in her address, urged the captains of the Indian textile and apparel industry to prepare themselves to face the challenges of structural shift in the global textile market.
In his address, Secretary, Ministry of Textiles, Shri Upendra Prasad Singh, said that every industry and sector in India must play a role in achieving the target of becoming a developed nation in the next 25 years as per the vision of the Prime Minister. He said that the Indian textile industry has the strength to expand in the global market as it has a complete value chain. The government is working proactively to address the current problems of the industry, he added.
T. Rajkumar, chairman of the Confederation of Indian Textile Industry (CITI) in his welcome address said that the global textile industry is witnessing a reshuffle of the entire supply chain including the countries from which apparel is sourced. Terms like ‘China Plus One’, re-shoring, onshoring, etc are being commonly heard in interactions across the textile value chain. He said that the value of global textile and apparel exports stood at $828 billion in 2021, registering a growth of 8 per cent over $770 billion in the previous year.
The share of textile, apparel and handicrafts in India’s total exports was 10.62 per cent in 2021-22. In addition to being the largest producer of cotton and jute, India is the second largest producer of silk. The technical textiles segment too has an estimated 9-11 per cent share in the global market.
As the effects of the pandemic continue to be felt by economies across the globe, Hong Kong looks to strengthen economic relations with its key trade partners. Today, the Hong Kong Trade Development Council (HKTDC) and the Aomori Prefectural Government of Japan signed a Memorandum of Understanding (MoU) on mutual cooperation in promoting economic exchange. The signing occurred during the Food Expo 2022, a flagship event organised by the HKTDC.
HKTDC, represented by Executive Director Margaret Fong (L), and Aomori Prefecture, Japan, represented by Governor Shingo Mimura (R), signed a MoU at the HKTDC Food Expo, Hong Kong’s flagship event organised by the HKTDC.
Japan was Hong Kong’s 6th largest trading partner in 2021, with total merchandise trade amounting to about HK$390 billion. In 2021, Hong Kong’s domestic export of goods to Japan totalled HK$666 million, while Hong Kong imported about HK$271 billion worth of goods from Japan. Commanding a vast coastline with an abundance of marine life, Aomori Prefecture in Japan’s Tohoku region boasts a flourishing aquaculture industry. It is also known for its well-developed forestry and agricultural industries thanks to its rich natural environment.
The HKTDC and Aomori Prefectural Government will engage in a variety of exchange programs, including business meetings, seminars and trade fairs, to extend economic cooperation. The MoU will not only facilitate economic exchange, but also create opportunities for businesses in Hong Kong and Aomori Prefecture. With businesses looking to recover from the pandemic, the MoU enables them to capture these opportunities, tap into new markets and expand operations.
HKTDC Executive Director Margaret Fong said, “The HKTDC today signs into effect a Memorandum of Understanding on economic collaboration with the Aomori Prefectural Government of Japan. I hope that through carrying out economic exchange programs, including business missions, seminars and trade fairs, we can expand trade and investment, cement our business ties and drive economic growth in Hong Kong and Aomori Prefecture. Strong bilateral economic relationships are critical to the stability of today’s global economy, and the HKTDC is pleased to engage with the Aomori Prefecture Government to further economic exchange.”
Shingo Mimura, Governor of the Aomori Prefectural Government, added, “While Hong Kong is the main export destination for the world-renowned Aomori apple, its people also enjoy our beautiful landscapes created by the four seasons, our festivals, fresh food and hot springs. Over the years, they have built a close relationship with Aomori. The Aomori Prefecture Government is committed to promoting agriculture, forestry, and aquatic products for export and attracting tourists. We will continue to devote our efforts to strengthening the trade relations between the two places. With HKTDC’s platform, we hope to promote our hidden gems and gourmet cuisine to those in Hong Kong who love Japanese food and culture.”
The HKTDC Food Expo (11-15 August) is being held concurrently with the HKTDC Hong Kong International Tea Fair, HKTDC Home Delights Expo and HKTDC Beauty & Wellness Expo at the Hong Kong Convention and Exhibition Centre (HKCEC), featuring more than 1,000 exhibitors. A regional pavilion for the Aomori Prefecture showcases its local specialities.
Photo download: https://bit.ly/3Qj2h7t
The Hong Kong Trade Development Council (HKTDC) is a statutory body established in 1966 to promote, assist and develop Hong Kong’s trade. With 50 offices globally, including 13 in Mainland China, the HKTDC promotes Hong Kong as a two-way global investment and business hub. The HKTDC organises international exhibitions, conferences and business missions to create business opportunities for companies, particularly small and medium-sized enterprises (SMEs), in the mainland and international markets. The HKTDC also provides up-to-date market insights and product information via research reports and digital news channels. For more information, please visit: www.hktdc.com/aboutus. Follow us on Twitter @hktdc and LinkedIn
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