Samsara Newsletter

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Week 7, 2019 (Feb 9 - Feb 15)

Policy & Economy News

Growth likely to reach 7.5 per cent next fiscal: Chief Economic Adviser

Exports from MSMEs show significant rise in value

Business News - The India Boom Factor

India's exports to China expected to reach all-time high this fiscal

Two-wheeler exports from India rise 19.5 pc in Apr-Jan

Govt. soon to announce measures to boost textiles exports

MSME exports cross $1.4 lakh mn in 2017-18: MSME Minister

Shipping News

In a first, Maersk Line to move boxes on the Ganga from Varanasi to Kolkata today

Logistics News

Cargo capacity to be doubled at Hyderabad

Kern ICD in Madurai notified as Inland Container Port by Customs

Indian Port News

Nhava Sheva (India) Gateway Terminal handles highest parcel size at JN Port

Smart Industrial Port Cities coming up at Paradip Port & Deendayal Port

KoPT in plans for 40 pc capacity increase

Nepal also seeks to use Mundra & Dhamra for its trade

Major Ports register over 3 pc growth in volume during 10 months of fiscal

Policy & Economy News

Growth likely to reach 7.5 per cent next fiscal: Chief Economic Adviser
Press Trust of India - New Delhi, February 15 Top
The economic growth is likely to accelerate to 7.5 per cent in 2019-20, from 7.2 per cent projected for the current fiscal, Chief Economic Adviser K V Subramanian has said.

"We have done the projections. All the external agencies and internally our estimates are also 7.5 per cent (2019-20). The nominal rate we are expecting is 11.5 per cent and inflation of about 4 per cent," he told PTI.

The Reserve Bank of India, in its latest monetary policy review released last week, too projected an economic growth rate of 7.4 per cent for the next fiscal.

Talking about average growth in the last four years, he said the GDP growth rate has been 7.3 per cent, highest across all government since liberalisation. This growth rate has been achieved amidst very low inflation.

Prior to 2014, the average inflation was in excess of 10 per cent, he said, adding the significant reduction in inflation can be attributed to setting up of Monetary Policy framework that mandates the RBI to keep it within a particular band.

Monetary Policy Committee, the interest rate setting body headed by the RBI Governor, has been given objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth.

Earlier this month, Finance Minister Piyush Goyal in the Budget Speech had said that India is solidly back on track and marching towards growth and prosperity.

The past five years have seen India being universally recognised as a bright spot of the global economy, he said, adding that the country witnessed its best phase of macro-economic stability during this period.

"We are the fastest growing major economy in the world with an annual average GDP growth during last five years higher than the growth achieved by any government since economic reforms began in 1991," he had said.

On fiscal deficit, Subramanian said, it has been secularly coming down and India is on the glide path to achieving the target set under the FRBM (Fiscal Responsibility and Budget Management) Act.

"This fiscal prudence has been achieved despite greater devolution to states. So as part to 14th Finance Commission, 42 per cent is devolved to states from earlier 32 per cent," he said.

The Budget pegs fiscal deficit to be at 3.4 per cent of the GDP for 2019-20

Exports from MSMEs show significant rise in value
Exim News Service - New Delhi, February 11 Top
The Minister of State (Independent Charge) for Micro, Small and Medium Enterprises, Mr Giriraj Singh, has said that the value of MSME-related products exported during 2017-18 has reached $147,390.08 million, as per the information received from the Directorate-General of Commercial Intelligence and Statistics (DGCI&S). The Minister was replying to a question in the Lok Sabha on Monday.

MSME exports were valued at Rs 137,068.80 million in 2016-17.

Mr Singh further informed that the government has taken several measures to enhance exports by MSMEs. These include efforts made under the Make in India programme, promotion of Ease of Doing Business, improved availability of credit through MUDRA, Stand up India, the Merchandise Exports from India Scheme (MEIS) for incentivising export of specified goods to specified markets, Service Exports from India Scheme (SEIS) for increasing exports of notified services from India, 2 per cent interest subvention for all GST registered MSMEs on fresh or incremental loans, and increase in interest rebate from 3 per cent to 5 per cent for exporters who receive pre-shipment and post-shipment loans, said a release.

Business News - The India Boom Factor

India's exports to China expected to reach all-time high this fiscal
Exim News Service - Beijing, February 10 Top
According to an official communique, India's exports to China are expected to reach an all-time high this fiscal given that the US-China trade spat is creating new opportunities for exporters. Besides, Beijing is removing some trade barriers in its effort to check the growing bilateral trade imbalance.

Between April and December 2018, exports were $12.7 billion, which is closer to the previous fiscal's total exports of $13.33 billion.

The growth is driven primarily by marine products, organic chemicals, plastics, petroleum products, grapes and rice, reports said.

Two-wheeler exports from India rise 19.5 pc in Apr-Jan
Press Trust of India - New Delhi, February 11
Top
At a time when two-wheeler manufacturers are finding sales moving at a slow pace in the domestic market, their exports have risen by 19.49 per cent in the April-January period this fiscal, according to the latest data from auto industry body SIAM.

Total two-wheeler exports during the period stood at 27,59,935 units as compared with 23,09,805 units a year ago, showed the Society of Indian Automobile Manufacturers (SIAM) data.

The growth in exports of two-wheelers from the country is driven mainly by motorcycles and scooters.

Motorcycle shipments to foreign markets during the period stood at 24,12,800 units as against 20,34,250 units in the corresponding period last fiscal, up 18.61 per cent.

Likewise, scooter exports zoomed by 26.67 per cent to 3,32,197 units as compared to 2,62,253 units in the year-ago period, SIAM said.

Exports of mopeds grew by 12.3 per cent to 14,938 units, against 13,302 units a year ago.

Recovery in markets such as Africa and Latin America has helped two-wheeler manufacturers crank up their exports from India, industry observers said.

Leading the two-wheeler export bandwagon is Bajaj Auto, which shipped a total of 14,50,766 units in the April-January period, a jump of 24.87 per cent.

Chennai-based TVS Motor Co's exports also zoomed by 29.18 per cent to 5,04,799 units during the period, as per the SIAM data.

Honda Motorcycle and Scooter India also posted a 10.3 per cent increase in its two-wheeler exports to 3,25,759 units during the period.

India Yamaha Motor posted a 2.39 per cent increase in its exports to 2,09,352 units, while Hero MotoCorp's shipments stood at 1,63,480 units, up 5.74 per cent.

The rise in exports comes at a time when two-wheeler sales in India have slowed down to single-digit growth.

According to SIAM, two-wheeler sales in the domestic market stood at 1,81,25,656 units in the April-January period this fiscal as against 1,67,71,630 units in the corresponding period last fiscal, a growth of 8.07 per cent.

Govt. soon to announce measures to boost textiles exports
Daily Shipping Times - New Delhi, February 15 Top
The Centre will soon announce measures to boost exports of apparels and textiles which will be compliant with the World Trade Organization norms and help exporters meet competition from countries such as Bangladesh and Vietnam.

"Our exporters of apparels and made-ups have been finding it difficult to compete with countries such as Bangladesh and Vietnam, which get zero-duty access to markets such as the EU. Over the last few months, we have held discussions with the Departments of Commerce and Revenue and we will shortly come up with some measures for the sector which would also be WTO-compliant," Raghvendra Singh, Secretary, Ministry of Textiles, said at a press conference recently.

Singh said ensuring that export schemes were WTO-compliant was an important issue now and the Ministry was working on the recommendations of the committees set up to examine WTO compatibility of schemes.

The Textiles Secretary, however, did not clarify on how long the popular Merchandise Export from India Scheme (MEIS), which is one of the five schemes challenged by the US at the WTO, will continue. The US wants India to do away with the scheme as the Country had crossed the average per capita income level of $1,000 some time back and was no longer eligible to give export sops.

Singh also indicated that the Rebate of State Levies (RoSL) scheme could be expanded to increase the level of benefits to exporters. The RoSL does not flout global trade rules as it involves refund of taxes and levies paid by exporters and is not a subsidy.

MSME exports cross $1.4 lakh mn in 2017-18: MSME Minister
Daily Shipping Times - New Delhi, February 14 Top
Minister of State for Micro, Small and Medium Enterprises, Giriraj Singh, said that value of MSME related products' exported during 2017-18 has reached USD 147,390.08 million.

As per the information received from Directorate General of Commercial Intelligence and Statistics (DGCIS), exports of MSME products has reached USD 147,390.08 million during 2017-18, Singh said in Lok Sabha.

Singh further informed that the Government has taken several measures to enhance exports by MSMEs.

These include efforts made under Make in India Programme, Promotion of Ease of Doing Business, improved availability of credit through MUDRA, Stand up India, schemes such as 'Merchandise Exports from India Scheme' (MEIS) for incentivising export of specified goods to specified markets and 'Service Exports from India Scheme' (SEIS), etc.

He also mentioned about 2 percent interest subvention for all GST registered MSMEs on fresh or incremental loans and increase in interest rebate from 3 percent to 5 percent for exporters who receivepre-shipment and post-shipment loans.

Shipping News

In a first, Maersk Line to move boxes on the Ganga from Varanasi to Kolkata today
Exim News Service - New Delhi, February 11
Top
The world's largest container shipping company Maersk Line will move 16 containers on river Ganga (National Waterway-1) from Varanasi to Kolkata on Tuesday. Maersk moves 12 million containers yearly across the globe. The firm is onboard India's inland waterways for the first time, as per a Ministry of Shipping release.

Maersk moving containers on river Ganga follows similar movements already done by firms like PepsiCo, Emami Agrotech, IFFCO Fertilizers and Dabur India. With Maersk on board, the cargo from the hinterland will move directly to and from Bangladesh and rest of the world through Bay of Bengal.

On November 12, 2018, Prime Minister, Mr Narendra Modi, dedicated India's first riverine multimodal terminal on river Ganga (National Waterway-1) at Varanasi to the nation. On the same day, he also received country's first container cargo that travelled on river Ganga (National Waterway-1) from Kolkata to Varanasi. The twin events marked watershed moments in the development of Inland Water Transport (IWT) in India and also broke grounds for a spurt in business activities on National Waterway-1.

Container cargo transport comes with several inherent advantages. Even as it reduces the handling cost, allows easier modal shift, reduces pilferages and damage, it also enables cargo owners to reduce their carbon footprints.

The government is developing NW-1 (River Ganga) under JMVP from Haldia to Varanasi (1,390 Km) with the technical and financial assistance of the World Bank at an estimated cost of Rs 5,369 crore (Rs.53.6 billion). The project would enable commercial navigation of vessels with capacity of 1,500-2,000 DWT.

The Union Minister for Shipping, Mr Nitin Gadkari, had flagged off a consignment of Maruti cars from Varanasi to Haldia in August 2016. Since then pilot movements on National Waterways are currently being done on various stretches. More than 15 of them have already been successfully completed, including integrated movements through NW-1 (Ganga), Indo-Bangladesh Protocol Route and NW-2 (Brahmaputra), the release added.

Logistics News

Cargo capacity to be doubled at Hyderabad
Exim News Service - Hyderabad, February 11 Top
GMR Hyderabad International Airport Ltd (GHIAL) plans to double its cargo handling capacity at Hyderabad.

Its operational efficiency currently enables it to handle 150,000 tonnes of cargo annually, on a design capacity of 100,000 tonnes, reports said.

A senior official of GHIAL has been quoted as saying that with the new expansion, cargo capacity will double from 150,000 tonnes to 300,000 tonnes. New facilities are to be built on a 100-acre parcel adjacent to the GMR Aerospace and Industrial Park, reports added.

Kern ICD in Madurai notified as Inland Container Port by Customs
Exim News Service - Madurai, February 14 Top
The Kern Inland Container Depot (ICD), Madurai, Port Code INMDU6, has been notified as an Inland Container Port by the Commissionerate of Customs. Customs officials are now present here to clear export and import cargo. The ICD is located at Valayankulam, Madurai adjacent to the Madurai Airport. A venture of Kern Enterprises Pvt. Ltd, the state-of-art ICD is one of the largest in India, with its infrastructure spread over a total area of about 70 acres, of which 27.78 acres have been notified as Customs area.

Kern ICD is 142 km from Tuticorin Port, 288 km from Cochin Port and 456 km from Chennai Port.

Air cargo can also be handled at the facility through the Madurai Airport, with connections to other airports such as Chennai and Bangalore.

The ICD was inaugurated recently in the presence of Mr Ranjan Kumar Routray, IRS, Chief Commissioner of Customs (Preventive), Thiruchirapalli; Mr Md Navfal, IRS, Joint Commissioner of Customs (Preventive), Thiruchirapalli; Mr Thirupathi Rajan, Managing Director, Raj Exim, Madurai; Mr Karumuthu Kannan, Managing Director, Thiyagaraya Mills P. Ltd, Madurai; Mr Anbukani, Managing Director, Penguin Apparels, Madurai, and Mr Amjad Ali, Managing Director, JAS Exports, Madurai.

Customs officials are present at the ICD for import and export cargo clearance. The facility enables customers to either bring export cargo stuffed in containers with RFID e-seal from their factory, or bring the cargo to Kern ICD and complete Customs formalities, have the cargo stuffed into containers or consolidate the cargo at the ICD area and move the containers direct from the ICD to the vessel at the gateway ports of Tuticorin, Chennai, Cochin or any airport.

Similarly, import consignments can either be cleared immediately at the ICD or bonded at the vast warehouse space available in the ICD premises.

Kern ICD can serve as a major infrastructural hub for South India. It is hugely advantageous for the trade as it provides all the facilities needed for international trade in one location.

The trade can plan for 3PL, 4PL, 5PL solutions as Kern ICD is ready to serve with all possible support, including ultra-modern infrastructure facilities, warehousing and logistics necessities.

The major infrastructure offerings at Kern ICD include 24x7 operations, ample storage including bonded, ample handling equipment, fully secure, quick Customs clearance, etc., said a release.

Indian Port News

Nhava Sheva (India) Gateway Terminal handles highest parcel size at JN Port
Exim News Service - Navi Mumbai, February 10 Top
The DP World-operated Nhava Sheva (India) Gateway Terminal (NSIGT) achieved yet another milestone by handling the highest moves parcel size of 4,568 moves (6,017 TEUs) on MV MSC Perle of the Himalaya Express with an exceptional Gross Crane Rate of 34.5 moves per hour at Jawaharlal Nehru Port.

NSIGT thus broke its own record of loading and discharging large-size parcels at the port on move count basis, the previous record being 4,433 moves (5,025 TEUs) handled on MV Bernadette in 2017. This achievement is a testament to the cutting-edge technology and state-of-the-art infrastructure that enables the terminal to deliver higher productivity and ensure better safety standards, emphasised a release.

Mr Jibu K. Itty, Chief Executive Officer, DP World Nhava Sheva, said, "At DP World, we believe in providing efficient and reliable flow of goods and services through high productivity. Our terminal, NSIGT, is equipped with advanced technology, which provides safe, quick and efficient operations in cargo handling.

We also appreciate the dedicated efforts of the Port Trust directed towards improving marine infrastructure at the port, which further enables us to handle large-sized vessels and increase utilisation."

Nhava Sheva (India) Gateway Terminal is built to a futuristic design, and the wharf is equipped with the world's largest and most technologically advanced remote-operated quay cranes, automated gates-powered by Optical Character Recognition (OCR) technology, an advanced Reefer Monitoring System and revolutionary Electrical Rubber-Tyred Gantry cranes (E-RTGs), amongst others, the release highlighted.

Smart Industrial Port Cities coming up at Paradip Port & Deendayal Port
Exim News Service - New Delhi, February 11 Top
The Minister of State for Road Transport, Shipping and Chemicals & Fertilisers, Mr Mansukh Mandaviya, told Parliament on Monday that the government is developing two Smart Industrial Port Cities, one on the east coast (Paradip Port) and another on the west coast (Deendayal Port, Kandla), to promote port-led industrial development by providing the necessary infrastructure and allied services at one place for the ex-im trade to boost the economy of the country.

Development activities for various project components like setting up of multimodal logistics park, industrial park, development of road network and truck terminals are in full swing at both locations, he added, as per a release.

KoPT in plans for 40 pc capacity increase
Exim News Service - Kolkata, February 11 Top
Kolkata Port Trust (KoPT) is in plans for a 40 per cent capacity augmentation to handle 90 million tonnes (mt) of cargo annually across both Haldia and Kolkata docks. The increase is expected over the next four to five years.

While Haldia port will see a near 45 per cent increase in capacity to 65 mt from the existing 45 mt it handles annually, the Kolkata dock will see a 47 per cent capacity rise to 25 mt from 17 mt of cargo annually.

Reports quoted KoPT Chairman, Mr Vinit Kumar, as saying that the Port Trust has roped in L&T Consultancy to develop a master plan, determine which sectors will drive demand and finalise augmentation plans.

Nepal also seeks to use Mundra & Dhamra for its trade
Exim News Service - Kathmandu, February 12 Top
Nepal has reportedly sought access to two additional Indian ports, Mundra in Gujarat and Dhamra in Odisha, to facilitate trade with other nations, during the recent two-day Joint Secretary-level meeting between the two countries.

It currently uses Visakhapatnam in Andhra Pradesh and Haldia in Kolkata for its international trade. India has given a positive reaction to the proposal but a concrete agreement is yet to be made, reports quoted an official of Nepal's Ministry of Industry, Commerce and Supplies as saying.

Major Ports register over 3 pc growth in volume during 10 months of fiscal
Exim News Service - New Delhi, February 13 Top
The 12 Major Ports registered a growth of 3.11 per cent and together handled 578.86 million tonnes of cargo during the period April 2018 to January 2019 as against 561.39 million tonnes during the corresponding period of the previous fiscal

For the period from April 2018-January 2019, nine ports, i.e. Kolkata (incl. Haldia), Paradip, Visakhapatnam, Kamarajar, Chennai, Cochin, New Mangalore, JNPT and Deendayal registered positive growth in traffic.

The highest growth was registered by Kamarajar Port (15.56 per cent), followed by Kolkata [inc. Haldia] (9.86 per cent), Cochin (8 per cent), JNPT (7.46 per cent) and Paradip (6.4 per cent).

Kamarajar Port's growth was mainly due to increase in container traffic (21.7 per cent), other misc. cargo (41.23 per cent), other liquids (11.63 per cent), POL (9.14 per cent), and thermal and steam coal (5.18 per cent).

At Kolkata Port, the overall growth was 9.86 per cent. Kolkata Dock System (KDS) registered traffic growth of 4.68 per cent, whereas Haldia Dock Complex (HDC) had a growth of 12.11 per cent.

During the period under review, Deendayal (Kandla) Port handled the highest volume of traffic at 94.55 million tonnes (16.33 per cent share), followed by Paradip with 89.98 million tonnes (15.54 per cent share), JNPT with 58.6 million tonnes (10.12 per cent share), Visakhapatnam with 54.73 million tonnes (9.45 per cent share) and Kolkata (inc. Haldia) with 52.18 million tonnes (9.01 per cent share). Together, these ports handled around 60 per cent of the Major Port traffic.

Commodity-wise, the percentage share of POL was maximum at 33.35 per cent, followed by container (20.8 per cent), thermal and steam coal (14.95 per cent), other misc. cargo (10.51 per cent), coking and other coal (8.26 per cent), iron ore and pellets (5.71 per cent), other liquid (4.20 per cent), finished fertiliser (1.21 per cent) and FRM (1.01 per cent), informed an official release.

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