India can strengthen economic ties with the Asean region by joining the Regional Comprehensive Economic Partnership (RCEP).
Despite India’s concerns about its trade deficits with Asean countries and China, it would be missing out on a key economic opportunity to establish a presence in the fast-growing Asean region if it did not join the RCEP.

If negotiations succeed, RCEP will be the largest multilateral trade pact in history – encompassing China, India, Japan, South Korea, Australia, New Zealand and the ten Asean nations.

The Asean region, and the Cambodia, Laos, Myanmar, Vietnam and Thailand subregion, in particular, is the geopolitical centre of Asia. The region connects east Asia with south Asia, a link between the two economic powers of China and India.

India’s trade strategy complements that of the Asean region, both championing multilateralism over unilateralism in trade negotiation processes. Further RCEP represents the notion of Asean Centrality, and with India’s Act East policy, it is important for India to not lose out on this opportunity to further integrate with the Asean region to reap the economic benefits of multilateral trade.

The conversation surrounding India-Asean relations through the RCEP talks may reinvigorate initiatives to increase regional cooperation in the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). This is a multinational organisation comprising Thailand, Myanmar, India, Sri Lanka, Nepal, Bhutan and Bangladesh.

More than 50 per cent of the total raw cotton imported into Pakistan was sourced from India in 2014 and 2015.
In 2017, the share of Indian raw cotton fell below 27 per cent. The United States replaced India as the largest source of raw cotton. This is primarily due to the resurgence of the US as a significant exporter of raw cotton globally.

Furthermore, Saudi Arabia has been a major source of polymers of propylene. In essence, Pakistan has shifted away from Indian imports, replacing them with other sources.

In 2017 India supplied mainly raw material and intermediate goods to Pakistan.

Out of 1.7 billion dollars of goods imported by Pakistan from India in 2017, 555 million dollars was paid for chemicals or allied products, 203 million dollars for raw cotton, 141 million dollars for cotton yarn and 68 million dollars for polymers of propylene in primary form.

Pakistan is by far the largest source of Portland cement and fresh or dried dates into India. Pakistan is also one of the leading exporters of Portland cement and dried dates around the world. In essence, exports from Pakistan to India are limited to a few products.

Cement and dates contributed 1.4 per cent of total exports from Pakistan to all its trading partners in 2017.

Myanmar’s trade deficit for the first four months of the fiscal year has declined.
Imports have increased at a slower pace compared to the same period of the last fiscal year.

Myanmar exports items from seven major commodity groups. These include manufactured goods consisting mainly of garments as well as agriculture produce, minerals, cattle, fisheries and forestry products. Myanmar’s major import items are divided into four groups — capital goods, intermediate goods, consumer goods and cut-make-pack garment products.

The higher volume of exports reflects the government’s efforts to reduce the trade deficit by screening luxury imports, encouraging import substitutes and boosting exports. They also come at a time when foreign direct investments into the country have eased over the past year.

Myanmar’s current account deficit, which includes the trade deficit, is financed mainly by foreign direct investments into the country. On the other hand, the fall in imports of capital goods also reflects less demand and activity in the industrial and construction sectors, implying a slowdown in the broader economy.

The trade volume for the period up to the second week of February reached 12.65 billion dollars, a gain of 634 million dollars compared to the same period of the last fiscal year.

According to the sources of Global Economist Forum (GEF), the Bangladesh government may permit overseas investment proposals to set up industries by recruiting 50 percent of skilled manpower from Bangladesh and safe return of the investment.

Many stakeholders in the field of RMG and pharmaceuticals have the immense potential to invest the overseas investment for contributing more to boost country’s economy

Currently, Ethiopia is permitted for convenient access to USA and EU market as the country is availing ‘zero tariffs’ to enter such potential traditional markets. On the contrary, Bangladesh needs to pay 15 to 16 percent tariff to enter USA market which is hampering the RMG exports.

The government has to allow investment opportunity in apparel, leather, plastic, light engineering, ship building and IT sector to invest the black money under special scrutiny.

Currently, USA and China are receiving highest FDI, simultaneously, they are investing huge money in overseas market which is helping to expand their business in the international market.

Indonesia is going all out to strike trade pacts with about a dozen countries and blocs.
The US-China trade war has hurt its shipments and threatens to worsen a current account deficit.

The country has signed a free trade pact with Australia and is close to clinching deals with Iran, Turkey and the European Union.

Indonesia’s current trade policy is very proactive in looking for market access in various parts of the world, whether the traditional markets or the non-traditional ones such as in Africa and Latin America. The urgency to seal as many trade pacts as possible stems from the need to reverse a slump in exports. Notably, in the past three months, exports pushed the nation’s trade deficit, to a record last year.

Besides simplifying export procedures and ensuring efficient logistics, Indonesia is leaning on diplomacy to secure preferential tariffs, access to non-traditional markets and cheaper export financing.

Indonesia’s current account deficit swelled to the highest in four years in 2018 after the trade gap reached a record amid the US-China trade war. The aim is to narrow the deficit to around 2.5 per cent of the GDP in order to address market sentiments. Risks loom from a prolonged US-China trade war.

India’s economy is likely to grow at 7.3 per cent in 2019 and 2020, according to Moody’s Investor Service.

India is less exposed to a global manufacturing trade growth slowdown than many other Asian nations and is poised to grow at a relatively stable pace in two years.

The announcement in the interim budget 2019-20 on direct cash transfers for farmers and the middle-class tax relief measures are expected to contribute a financial year stimulus of about 0.45 per cent of the gross domestic product.

The Reserve Bank of India is likely to be able to maintain its current monetary policy stance after some tightening last year. Though the overall strength of the banking system is improving, it remains a constraint on the economy.

However, a complete turnaround of the banking system requires more time amid slower-than-expected resolution of legacy problem loans.

With range-bound oil prices, export growth has outpaced import growth for the last two years. Fiscal spending on infrastructure and the rural economy should continue to support domestic activity, recommends Moody’s.

Moody’s growth estimates are based on the calendar year. India, however, measures its economic growth on the basis of the April-March financial year.

Government spending announced this year is expected to support near-term growth.

Himatsingka Seide, under the brand Royal Velvet ,will make fashion bedding, sheets, core bedding, utility bedding, bath and bath accessories for the US market.

Royal Velvet is a heritage luxury brand belonging to the US-based Iconix Brand. Royal Velvet is one of the 30 brands in Iconix Brand’s portfolio of consumer brands. The company owns, licenses and markets its brands through a network of leading retailers and manufacturers in both the United States and worldwide.

Himatsingka Seide is a home textile manufacturer. The collaboration is consistent with Himatsingka’s strategy to expand its global brand portfolio in the home textile space. Founded in 1985, the Himatsingka group has operations across Asia, Europe and North America and is one among the leading manufacturers of bedding and bath products, drapery and upholstery fabrics and fine count cotton yarn.

Himatsingka’s retail and distribution network caters to over 7000 points of sale at the global level. Armed with a strong portfolio of brands (both licensed and owned), the group is focused on strengthening its intellectual property portfolio across key global markets. The portfolio consists of the most respected fashion labels as well as technology-driven brands that have led the industry. The group has been the leader in the branded cotton, track and trace space.

The Royal Velvet collections from Himatsingka are expected to launch for spring 2020 at various department and specialty stores.

Galeries Lafayette in Dubai will host a pop-up store of Brazilian casual wear, beachwear and resort wear. This will begin from March 6 and go on for two months.

Among the Brazilian brands to be exhibited are Amir Slama, Karla Vivian, Skazi, Guria beach wear, Salinas, Agua de Coco por Liana Thomaz, Cecilia Prado and Sinesia Karol. These brands want to be on the wish lists of Arab women, with their identity, colors and prints.

The event is a collaboration between Texbrasil (Brazilian Textile and Fashion Industry Internationalization Program), Apex-Brasil (Brazilian Trade and Investment Promotion Agency), Abit (Brazilian Textile and Apparel Industry Association) and the Fashion Jardim showroom.

Brazilian evening wear is very well known in the Arab world, thanks to major brands in the segment that have exported to the region for years. The choice of Dubai as a starting point is strategic for the organizers to reach the Arab audience, since the city is in a unique position in the region and has a heavy flow of tourists.

The launch event will feature a cocktail party, with 150 people expected to attend, including major Arab media channels, digital influencers and special guests.

The largest department store in Dubai, Galeries Lafayette is a unique shopping destination with a French heritage.

Garment manufacturers recently urged the US and Bangladesh to sign cotton purchase agreement so that they could get duty privileges on export of apparel items to American markets and ship more products.

If the US agrees to the proposal, local millers will import cotton from the US under a special arrangement for Bangladeshi apparel manufacturers to make garment items from the yarn and fabrics for American customers. Under the agreement the US can allow the duty benefit on condition that all the garment items would be made from the yarn and fabrics using American cotton.

Two local spinning mills have already proposed that the government allow them to set up mills in the US to produce yarn there and make garment items in Bangladesh. But, the proposals were not approved.

Earlier, US cotton exporters also raised the issue and the BGMEA agreed to the proposal. Such trading arrangement in garment business had been incorporated in the now-scrapped Trans Pacific Partnership Agreement keeping Vietnam in mind.

H&M has unveiled a children’s wear print collection made in collaboration with a French artist Nathalie Lété.

The capsule comprises an assortment of colorful and poetic artworks by Lété, juxtaposed as prints over children’s clothing and accessories. The pieces in the recent collection include vibrant T-shirts, jackets, jeans, dresses, jumpsuits, shorts and swimsuits for toddlers and children. The motifs comprise animals and floral patterns starting from Lété’s acrylic paintings, where the designs are artfully arranged together to create an imaginative and fun story. This enfolds to a tropical jungle with chameleons and tigers, along with the artist’s signature depiction of flowers with cats, birds and rabbits.

Nathalie Lété is famed for her illustrations, textiles, ceramics and paintings. In her work, she creates a fantasy land for herself, a land that she wants to share with other people to make them dream. Through flowers, animals, birds, naivety and colors, she aims at creating a cocoon that brings happiness and harmony all around. The relationships between the different elements tell stories, stories that create a nice atmosphere.

The Swedish multinational fast fashion brand has been involved in such print-based collaborations in recent seasons. It collaborated with British heritage interiors brand GP&J Baker for a women’s line last summer, endorsing archive prints.