India’s rich tradition of textiles is poised for a quantum leap that will make it a global investment, manufacturing and export hub. Prime Minister Narendra Modi has announced seven PM MITRA (Mega Integrated Textile Region and Apparel) parks in Tamil Nadu, Telangana, Karnataka, Maharashtra, Gujarat, Madhya Pradesh and Uttar Pradesh that will be set up with an outlay of ₹4,445 crore. This would be the biggest-ever initiative for infrastructure in this sector.

Inspired by the PM’s 5F vision — Farm to Fibre to Factory to Fashion to Foreign — the PM MITRA scheme is a major step forward to achieve Aatmanirbhar Bharat and ‘Vocal for Local’. The mega parks will help the sector achieve its target of a turnover of $250 billion and exports of $100 billion by 2030.

It should create global champions with the help of world-class facilities, state-of-the-art infrastructure and an integrated value chain at each location. Amaster developer will be selected who will be responsible for designing, planning, building, financing, operating and maintaining a PM MITRA park. This is a big jump for the industry as the value chain is now scattered across the country, which adds costs and delays in each link of the chain.

Indian industry will become globally competitive as the parks will help scale up operations, cut costs, improve efficiency and supply high-quality textiles and apparels.

These parks will create about 20 lakh jobs and attract an estimated ₹70,000 crore of domestic and foreign investment. They will be shining examples of sustainability, with zero liquid discharge, common effluent treatment, use of emission-free renewable energy and adoption of global best practices. This is in line with the PM’s callfor ‘zero defect zero effect (on environment)’ manufacturing.

There were 18 proposals from 13 states to set up PM MITRA parks. The seven mega parks were selected through a transparent process validated by the PM Gati Shakti National Infrastructure Masterplan. It is another example of collaborative federalism as both the Centre and the concerned states will be partners in the special purpose vehicles (SPV) that will set up and manage these parks. State governments will provide land parcels of at least 1,000 acres and will facilitate provision of reliable power and water supply, waste disposal, an effective single-window clearance system, along with a conducive and stable policy regime to ensure smooth operations and ease of doing business.

The parks will offer excellent infrastructure, plug-and-play facilities, as well as training and research support for the industry. Central and state governments will work together to increase investment, promote innovation and create jobs to make India the world leader in textiles.

The textiles industry has responded enthusiastically to this initiative, which was taken after extensive consultations with all stakeholders. Leading industry associations of the textiles sector along with top industry bodies such as CII and Ficci have expressed optimism that lower logistics cost, modern infrastructure, global scale of operations and supportive policies from the Centre and thestates will take Indian textiles to new heights and provide top-quality products at competitive prices to Indian and foreign consumers.

The textiles ministry will oversee the execution of these projects and provide financial support of ₹500 crore for greenfield parks and ₹200 crore for brownfield parks as development capital support to the SPV of each park. It will also provide up to ₹300 crore to units in each park to incentivise speedy implementation. It will also facilitate convergence with other government schemes to give additional incentives.

PM MITRA dovetails with GoI’s initiatives to sign free trade agreements (FTAs), which open up developed markets for Indian textiles, apparels and several other sectors. India has already signed trade deals with the UAE and Australia, and is negotiating with Canada, Britain and the EU. These efforts will help Indian textiles get deeper access to profitable developed markets and help the country significantly increase its share in the global textiles and apparel trade.

India is already one of the largest exporters of textiles and apparels in the world. But its aspiration in Amrit Kaal, as the country marches to become a developed nation by 2047, is to be the largest exporter in the world. With PM MITRA, we are on the right track.

A silent revolution is sweeping the country, providing nearly 80 crore Indians the unprecedented empowerment of food security – the freedom to buy heavily subsidised grains from any fair price shop (FPS) in the country. This takes welfare and the pro poor approach of the Modi government to a new high and sets in motion processes that will have a bigger transformational impact than what many people imagine.

The One-Nation-One Ration Card (ONORC) scheme is not just a high-impact welfare scheme that supports and nourishes the underprivileged. It exposes FPSS to fierce competition and is an economic catalyst, because migrants are now able to buy heavily subsidised grain in cities and can purchase other products with the money saved.

In India, about 6 crore people migrate to another state and 8 crore migrate within their state seasonally. ONORC is a game changer for migrant workers across many states including Odisha, Bihar, West Bengal, Uttarakhand, Uttar Pradesh and Madhya Pradesh. Earlier, when such workers went to cities to work, they lost their entitlement for subsidised grain as they were tied to the FPS back home. If they were registered at an FPS in a city, their families would have bought grain at much higher market rates.

With ONORC, the worker and the family can both get the benefits easily. Their savings are huge because apart from the heavily subsidised grains under the National Food Security Act (NFSA), they are also given free supplies under the Prime Minister Garib Kalyan Anna Yojana (PM-GKAY).

As this is making Indian workers self-reliant, this plan has now also become a part of the PM’s technology – driven system reforms under the Atmanirbhar Bharat Abhiyan.

There are other far-reaching implications strong of the scheme.

For decades, the neighbourhood ration shop was a monopoly. Beneficiaries had no choice but to go to a particular FPS. Shop owners commanded a captive market and had no incentive to maintain quality.

ONORC has already made a very strong beginning.

Crores of workers, daily wagers, including urban poor such as rag pickers, street dwellers, temporary workers in the organised and unorganised sectors, and domestic workers are taking advantage of this path-breaking scheme.

Since its launch in August 2019, about 80 crore portability transactions have been recorded. This includes both intra- and inter-state transactions delivering both regular NFSA and PMGKAY foodgrains to beneficiaries.

Among these transactions, 69 crore were reported during the Covid period since April 2020.

The PM’s push for digital India has been a big enabler for the country. Not only did the country succeed in making a smooth shift to work-from-home norms during the peak of the pandemic, it also helped feed the poor and the needy. Currently, 100% of ration cards are digitised. Further, electronic point of sale devices have been installed in more than 5.3 lakh (99%) of FPSs.

This government has also run the extra mile to make sure that all the potential beneficiaries take advantage of the scheme. To facilitate this, the Department of Food and Public Distribution has launched a ‘Common Registration Facility’ on pilot basis. for 11 states/UTs to help them include more beneficiaries under NFSA.

Further, various ministries and departments have coordinated their efforts for strategic outreach and communication to make people aware about this scheme.

The government undertook a radio based campaign in Hindi and 10 other regional languages using 167 FM and 91 community radio stations.

Announcements and displays were arranged in 2,400 railway stations, to give the PM’s message to migrant workers who travel in trains. Public buses were also used to display messages.

The scheme reflects the core approach of the Modi government. Public policy is formulated in a manner that benefits the poorest of the poor and the most marginalised sections. This philosophy has been at the core of all policies and achievements in the eight transformative years of this government.

It is this philosophy and approach to governance that has given poor people bank accounts, direct cash transfers, health insurance, electricity in every village, good quality rural roads even in remote areas and cooking gas supply, among other benefits.

On the 75th anniversary of Independence, India is rapidly moving towards greater freedom to chose for all. Let us celebrate and enable this choice.

Left Wing Violence, Security Vacuum Areas at All-time Low

A multi-pronged strategy by the Narendra Modi government which includes increasing the reach of security forces, targeting the roots of financing and tasking the National Investigation Agency (NIA) to go after top leadership, has resulted in an all-time low in Left Wing violence, with a final push now on the cards to clear out the last remaining Maoist strongholds.

According to government data, Left Wing Extremism (LWE) linked violence is down to half in the past eight years and surrenders by hardened cadres have more than doubled. The data indicates that the geographic spread of LWE influence has been curtailed, with two pockets of concerns now left that are being addressed with the creation of new security camps, infrastructure and social outreach.

At the heart of the crackdown has been an offensive strategy of the forces operating under Home Minister Amit Shah to reduce the number of ‘security vacuum’ areas where there was earlier little or no government presence. People involved in the planning of operations assess that of the over 4,000 sq km of LWE infested areas of South Bastar and Sukma where forces could not operate in the past, over three fourths have been cleared. Officials said that 108 new camps have been set up in LWE affected states since 2019.

“The security vacuum has been removed in Bihar with the opening of five camps last year. In Jharkhand, 22 new camps have been opened. In South Bastar, there is a small area where the vacuum will soon the filled,” government official sources said.

In Odisha, isolated areas have been reduced with the setting up of new camps, bridges and roads. A couple of small pockets left in Malkangiri will be cleared by the year-end.

People aware of the government’s strategy say that there has been a reversal from an earlier ‘defensive policy’ with clear instructions passed on to security forces to clear out hotbeds. “For example, in February, for the first time, a massive 13-day joint operation was launched from the newly-established security camps in Jharkhand’s Lohdarga district.

The engagement took place with Maoists on ten separate occasions and 12 cadres were arrested and one killed,” the official sources said, adding that large quantities of arms and ammunition were recovered.

The MHA Air wing has been strengthened with the appointment of pilots and engineers in the past year and special funds have been granted to the Central Reserve Police Force (CRPF) to construct helipads with night landing facilities. Official sources say emphasis is being given to use technical intelligence to crack down on cadres, including phone interception, social media monitoring and analysis of mobile data.

Official sources said that under the Security Related Expenditure (SRE) scheme, ₹978 crore has been released to the impacted states in the past three years and there has been an overall doubling of funds disbursal under the scheme since 2014.

“Projects worth Rs 371 crore have been sanctioned to strengthen security forces and intelligence agencies. Over 250 police stations have been fortified at a cost of Rs 620 crore,” official sources said.

With the government identifying financial choking as key to the LWE fight, assets worth Rs 22 crore have been seized by various agencies, including Rs 3 crore by the Enforcement Directorate.

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Boost to farm income as cane arrears plunge to lowest level in years

A majority of dues sugarcane millers owe to millions of farmers have been paid on time for three straight years, official data show, a rare turnaround on the back of a mix of policy measures, which have allowed millers to make payments on time.

India is the largest producer of sugar and the second-biggest exporter, next to Brazil. A rally in international prices, robust exports and the government’s ethanol-blending programme have kept business profitable despite surplus output, enabling timely payouts.

Mounting arrears payable to cane growers tend to stoke angst among farmers and is often a hot-button political issue, especially in cane-growing belts of Uttar Pradesh, the country’s political bellwether state.

Delayed payments also affect cropping patterns, prompting growers to shift to other crops. This has in the past created alternate cycles of glut and scarcity of the sweetener.

According to official data, millers have paid a majority of cane arrears for 2019-20, 2020-21 and 2021-22 (as on May 24). For the 2019-20 season, millers have paid 99.9% or ₹75,765 crore of their cane dues.

For 2020-21, farmers have been paid 99.6% of the total amount due of ₹92938 crore, while for 2021-22, millers have so far paid 84.6% of the payable cane dues of ₹109282 crore.

Cane arrears in India rose to a record ₹25000 crore in 2017-18, following a drop in prices to their lowest level in 28 months, which made it difficult for mills to pay farmers statutory cane prices.

Last month, India restricted sugar exports for the first time in six years to prevent a spike in domestic prices, capping this season’s exports at 10 million tonnes, despite surplus output.

The Indian Sugar Mills Association, a millers’ body, has forecast an output of 35.5 million tonne, up from its previous estimate of 31 million tonnes. Of this, 3.5 million tonne has been diverted for ethanol making, boosting diversion of excess sugar. Domestic consumption is pegged at 27 million tonne.

Mixing petrol with ethanol, which is made from molasses, a byproduct of sugar, will help lessen the amount of oil India imports. “In order to find a permanent solution to address the problem of excess sugar, government is encouraging sugar mills to divert excess sugarcane to ethanol,” an official statement on May 19 said.

The Union Cabinet last month approved amendments to the National Policy on Biofuels 2018, approving the advancing of the target of blending 20% ethanol in petrol by five years to 2025-26 from 2030.

“Robust exports and good domestic prices because of the government’s ethanol policy have enabled timely payouts to farmers,” said Abhishek Agrawal of Comtrade, a trading firm.

Indian mills have so far signed contracts to export 8.5 million tonnes of sugar in the current 2021-22 marketing year without government subsidies for overseas sales, suggesting profitability. Out of this, nearly 7.1 million tonnes of the sweetener has been shipped out.

A smaller cane crop in Brazil and high global oil prices have increased overseas demand for Indian sugar, as millers globally seek to pump more sugarcane into ethanol products.

https://www.hindustantimes.com/india-news/boost-to-farm-income-as-cane-arrears-plunge-to-lowest-level-in-years-101654196419364.html

Services activity up fastest in 11 years

NEW DELHI: Activity in the country’s crucial services sector expanded at its strongest rate in over 11 years in May on the back of sharp growth in new business as demand recovered after the lifting of curbs. But input cost inflation jumped to a record high, a survey showed on Friday. Posting a reading of 58. 9 in May, up from 57. 9 in April, the S&P Global India Services PMI business activity Index indicated the fastest rate of expansion in over 11 years.
Anecdotal evidence suggested that the upturn in output reflected better underlying demand and strong inflows of new work. The S&P Global India Services PMI is compiled from responses to questionnaires and serves as an advance indicator of demand conditions in the sector. The latest data revealed an acceleration in growth of new business. The increase was sharp and the quickest since July 2011.
But inflation showed no signs of abating as price gauges showed an unprecedented increase in input costs and the second-fastest upturn in selling charges in just under five years.

https://timesofindia.indiatimes.com/business/india-business/services-activity-up-fastest-in-11-years/articleshow/91995445.cms?utm_source=twitter.com&utm_medium=social&utm_campaign=TOIBusinessNews&from=mdr

https://www.hindustantimes.com/opinion/a-quantum-jump-in-international-trade-101648389697468.html

India’s achievement of a record $400 billion of goods exports is a shining example of the way this country is being governed, reformed, and transformed since 2014 with a mission to decisively improve the lives of citizens. The surge in exports is helping farmers, artisans, weavers and factory workers, and enabling businesses, small and large, create jobs, scale up operations, become more competitive, and make a mark in the global business arena.

The export target of $400 billion seemed impossible to many in a Covid-ravaged world, where demand was weak, containers were scarce and priced exorbitantly, and the world was facing job losses and conflicts. But this did not deter Prime Minister (PM) Narendra Modi’s government from acting decisively and swiftly with a bottom-up approach in assessing the situation, identifying products and regions where exports could be increased, and adopting a partnership approach with exporters and industry bodies to deliver results.

The exports mission was revved up when the PM gave a clarion call to industry to focus on exports and inspired them to aspire for a quantum jump in India’s international trade in goods and services. The PM himself held consultations with ministries, states, Indian missions abroad, commodity boards, industry associations and experts to motivate and inspire all. He monitored the progress of exports continuously.

It was indeed an ambitious mission because the best India achieved in merchandise exports in the past was $330 billion in the pre-Covid days of 2018-19, after which the pandemic battered all global trade.

But India bounced back rapidly as policy measures, reforms, export-promotion schemes, major initiatives such as the Production Linked Incentive Scheme, and bold decisions in the face of adversity propelled India to become the fastest growing major economy in the world. Exports boomed, setting a series of monthly records that have added up to historic achievement in 2021-22.

Exports are contributing to economic growth, creating jobs and helping small businesses and workers. The world is now looking up to India as a trustworthy and reliable partner which can provide quality goods and services on time even at the peak of the pandemic.

The results are spectacular. India achieved the target nine days ahead of schedule. We adopted the whole-of-government approach and worked as partners with exporters. The government proactively helped them overcome any hurdle and encouraged them to grab every opportunity for every product in every country to help achieve the stiff target. Targets were fixed for 200 countries/territories, and special emphasis was laid on new and existing markets, lost market share, and the role of small enterprises and startups as a vehicle for exports.

But it’s not just a story of numbers. There are exciting new developments such as the export of new products, penetration of new markets, rising exports of manufactured products, an impressive 50% growth in engineering exports, and laudable contribution of small businesses and farmers, whose hard work has strengthened global food security.

Agricultural exports have risen nearly 25% to a record of nearly $50 billion. India’s farmers provide almost half of the globally traded rice. Farmers have helped wheat exports jump to a record seven million tonnes, which is softening the impact of the disruption in the global wheat trade caused by the crisis in Ukraine, a major supplier.

Similarly, coffee exports have risen to a record of nearly $1 billion, an impressive achievement for the sector where 95% of the output is from small growers. Marine exports are also booming, helping many small businesses and fishermen.

India now needs to maintain the momentum. Our manufacturers, exporters and policymakers cannot afford to be complacent in a fiercely competitive world. Indian industry needs to step up investment in research and development and focus on quality. There was a time when there was a big gap between products sold to Indian citizens and the export quality goods that were shipped out. There should be no such gap.

The government will scale up efforts to help exporters. Many recent policies will bear fruits for years to come and give the country new global champions in manufacturing and exports. There will be many success stories like the mobile phone sector, which was once heavily import-dependent, but where, now exports have multiplied and imports are drying up. Exporters will also gain from the PM Gati Shakt scheme, the National Master Plan for multimodal connectivity which the PM launched last October.

We now have to make a bigger impact in international trade. This will be challenging, but exciting and achievable. Our government has a track record of achieving very ambitious targets, be it electrification of every village in the country, the dramatic rise in renewable energy capacity along with the equally dramatic fall in its cost, the LED revolution that drastically reduced the cost of energy-efficient bulbs, as well as game-changing welfare schemes to provide ordinary citizens with the convenience of toilets, cooking gas, bank accounts, health insurance, water supply, homes, rural roads, internet connectivity and the world’s largest vaccination programme against Covid-19 with the help of vaccines made in India.

India is on track to reclaim its status as the major trading power that it once was. That is an ambitious mission, but the story of Indian exports — like many game-changing initiatives in New India — can be summed up with what Nelson Mandela famously said: “It always seems impossible until it’s done.”

India’s agricultural and processed food products exports are set to exceed the target of $23 billion in FY22 thanks to a sharp spike in shipments of rice, wheat, fresh & processed fruits and vegetables, and livestock products.

Exports of commodities under the Agricultural and Processed Food Products Export Development Authority (Apeda) basket have crossed $21.45 billion during April-February (FY22). In FY21, agricultural and processed food products were valued at $20.39 billion.

According to the DGCIS data, rice exports crossed $8.67 billion in the first 11 months of FY22. India has been the world’s largest rice exporter in the last decade — export earnings stood at a record $8.7 billion in FY21 and could cross $9 billion this fiscal. India exports rice to more than 90 countries.

The country is likely to continue holding a major share of global rice trade in the current fiscal, with an estimated shipment of 21 million tonne, an increase of more than 24% from the previous financial year. The country’s rice exports in the current financial year is likely more than the combined exports of the next three largest exporters — Thailand, Vietnam and Pakistan.

Wheat exports in FY22 so far have witnessed the sharpest spike of 380% to $1.74 billion compared to the year-ago period. The country had been a relatively marginal player in global wheat trade until FY21, but the prospects now looks very bright given the elevated global prices and ample domestic stocks and production. The government is targeting increasing wheat exports in FY23 on the rising global demand due to the Russia and Ukraine conflict.

“During Covid-19 pandemic, while many countries were stockpiling their rice and wheat output, we took a proactive role in organising logistics and developing value chains which has given a boost to cereal exports,” M Angamuthu, chairman, APEDA, told FE.

During April-January (FY22), exports of meat, dairy and poultry products rose by 13% to $3.4 billion compared to $3 billion a year ago.

Fresh fruits and vegetables exports in the first 10 months of FY22 rose by 16% to $1.2 billion, while the processed fruits and vegetables shipment rose by around 11% to $1.2 billion compared to same period in FY21.

Apeda is giving a thrust to exports of cereals as well as those unique and Geographical Identification (GI) certified agri produce from various states. Darjeeling Tea and Basmati Rice are the two most popular GI-tagged agricultural products of India, which have already created a niche global market. However, officials said, there are many more GI-tagged products from various states whose exports potential could be harnessed.

Angamuthu said Apeda has initiated registration of pack-houses for horticulture products to meet the quality requirements of the international market. Registration of export units for peanut shelling and grading and processing units, for instance, is to ensure quality adherence for the European Union and non-EU countries.

Apeda basket of products exclude marine products, tobacco, coffee and spices.

The export promotion body has taken several initiatives to promote GI-registered agricultural and processed food products in India by organising virtual buyer-seller meets with the major importing countries across the world.

In order to ensure seamless quality certification of products to be exported, the export promotion body has recognised 220 labs across India to provide services of testing a wide range of products and exporters.

The country’s total smartphone exports are set to be upwards of Rs 42,000 crore ($5. 6 billion) in the justending fiscal, a growth of nearly 83% against Rs 23,000 crore achieved in 2020-21. The growth has been meteoric if one considers that till just four years ago, smartphone exports were only at around Rs 1,300 crore (in 2017-18), which then moved up sharply to Rs 11,200 crore in 2018-19, and thereafter to Rs 27,200 crore in 2019-20.
The numbers were subdued in 2020-21 at Rs 23,000 crore due to production and supply disruptions because of the Covid outbreak in the year. The surge in exports is being seen as exemplary as it also came at a time when the broader electronics market was suffering from severe component shortages due to the semiconductor crunch, apart from the disruptions because of the Covid-related lockdowns and restrictions. India’s stressed relations with China, a key supplier of critical components, had also resulted in certain parts being held up, or coming in slower than usual. But the industry seems to have overcome this challenge as well.

“The impressive performance comes in the backdrop of three devastating Covid waves, loss of workforce, lockdowns and the worst-ever crisis on the supply chain, including acute scarcity of chips and semiconductors,” Pankaj Mohindroo, chairman of industry body Indian Cellular and Electronics Association (ICEA) which worked on the data, said.

ICEA said that against earlier export destinations in South Asia, Africa and parts of Middle East/Eastern Europe, the India-made smart- phones are now going to some of the world’s most-advanced markets. “Companies now target some of the most competitive and advanced markets in Europe and developed Asia. These markets demand the highest levels of quality, and manufacturing units located in India are up to the task,” Mohindroo said. Apple and Samsung have the lion’s share in the exports tally. While Apple is understood to have exports upwards of Rs 12,000 crore (from models such as iPhone SE, iPhone 11, and iPhone 12), for Samsung this figure is estimated at around Rs 20,000 crore.

NEW DELHI: The production linked incentive (PLI) scheme for automobile and auto component sectors has attracted investment proposals of Rs 74,850 crore for the next five years, 76.11 per cent higher than the planned target of Rs 42,500 crore, the government data showed on Tuesday.
The proposed investment of Rs 45,016 crore is from approved applicants under Champion OEM Incentive scheme and Rs 29,834 crore from approved applicants under Component Champion Incentive scheme, according to data released by the ministry of heavy industries.
A total of 115 companies had filed their application under the PLI scheme for automobile and auto component industry in India which was notified on September 23, 2021.
Out of which, five Auto OEM companies had applied for both the parts of the scheme. The scheme was open for receiving applications till January 9, 2022.

Incentives are applicable under the scheme for Determined Sales of Advanced Automotive Technology (AAT) products (vehicles and components) manufactured in India from April 1, 2022 onwards for a period of 5 consecutive years.
“The overwhelming response shows that Industry has reposed its faith in India’s stellar progress as a world-class manufacturing destination which resonates strongly with Prime Minister’s clarion call of AtmaNirbharBharat – a self-reliant India. India will surely take a huge leap towards cleaner, sustainable, advanced and more efficient Electric Vehicles (EV) based system,” Union heavy industries minister Mahendra Nath Pandey said in a statement.
The government has introduced the PLI scheme for automobile and auto component industry for enhancing India’s manufacturing capabilities for Advanced Automotive Products (AAT) with a budgetary outlay of Rs 25,938 crore.
The PLI scheme for automobile and auto component industry proposes financial incentives to boost domestic manufacturing of Advanced Automotive Technology (AAT) products and attract investments in the automotive manufacturing value chain.
Its prime objectives include overcoming cost disabilities, creating economies of scale and building a robust supply chain in areas of AAT products. It will also generate employment. This scheme will facilitate the automobile industry to move up the value chain into higher value-added products.