Textile shares soar after US tariffs weaken Bangladesh's edge
Gini Silk Mills (up 20%), Alok Industries (up 15%), Siyaram Silk Mills (up 10.17%), Donear Industries (up 7%), Shiva Texyarn (up 7%), Raymond Lifestyle (up 6.2%), Vardhman Textiles (up 5.4%), Trident (up 3.8%), Gokaldas Exports (up 2.6%), Welspun Living (up 1.6%), KPR Mill (up 1.57%) surged.
While the new rate is slightly lower than April's 37%, it is still well above the 10% baseline and opens a window of opportunity for Indian exporters.
Vietnam, too, faces steep duties, with 20% tariffs on direct exports and 40% on transshipped goods under a new US trade deal. Currently, India faces up to 26% tariffs due to varied product categories, but a pending US-India trade deal could bring this down.
With Bangladesh and Vietnam holding a major share in the US garment market, Indias share has room to grow, especially if the upcoming trade deal secures more favorable terms.
For now, sentiment remains upbeat for Indian textile manufacturers, who stand to gain from shifting global trade dynamics.
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Hindustan Times
14 minutes ago
- Hindustan Times
Exclusive-Indian firm shipped explosives to Russia despite US warnings
By Gram Slattery, Tom Balmforth and Shivam Patel Exclusive-Indian firm shipped explosives to Russia despite US warnings WASHINGTON/KYIV/NEW DELHI -An Indian company shipped $1.4 million worth of an explosive compound with military uses to Russia in December, according to Indian customs data seen by Reuters, despite U.S. threats to impose sanctions on any entity supporting Russia's Ukraine war effort. One of the Russian companies listed as receiving the compound, known as HMX or octogen, is the explosives manufacturer Promsintez, which an official at Ukraine's SBU security service said has ties to Moscow's military. The official said that Ukraine launched a drone attack in April against a Promsintez-owned factory. The other Russian company is a subsidiary of Spanish explosives manufacturer Maxam, which is itself controlled by New York-based private equity firm Rhone Capital. The U.S. government has identified HMX as "critical for Russia's war effort" and has warned financial institutions against facilitating any sales of the substance to Moscow. According to the Pentagon's Defense Technical Information Center and related defense research programs, HMX is widely used in missile and torpedo warheads, rocket motors, exploding projectiles and plastic-bonded explosives for advanced military systems. The HMX sale to Russian firms has not been previously reported. Russian defense manufacturers have been working around the clock for the past several years to sustain President Vladimir Putin's war in Ukraine, which intensified with Russia's full-scale invasion of its neighbor in 2022. India, which has recently forged closer ties with the United States in an effort to counterbalance China's growing influence, has not abandoned its longstanding military and economic ties with Moscow. India's trade with Russia - especially its purchases of Russian oil - has remained robust, even as Western nations have tried to cripple Russia's war economy with sanctions. U.S. President Donald Trump threatened earlier in July to hit nations with a 100% tariff if they continued purchasing Russian crude. The U.S. Treasury Department has the authority to sanction those who sell HMX and similar substances to Russia, according to three sanctions lawyers. HMX is known as a "high explosive," meaning it detonates rapidly and is designed for maximum destruction. Reuters has no indication that the HMX shipments violated Indian government policy. One Indian official with knowledge of the shipments said that the compound has some limited civilian applications, in addition to its better-known military uses. India's foreign ministry said in a statement: "India has been carrying out exports of dual-use items taking into account its international obligations on non-proliferation, and based on its robust legal and regulatory framework that includes a holistic assessment of relevant criteria on such exports." The U.S. State Department did not comment on the specific shipments identified by Reuters but said it had repeatedly communicated to India that companies doing military-related business are at risk of sanctions. "India is a strategic partner with whom we engage in full and frank dialogue, including on India's relationship with Russia," a spokesperson said. "We have repeatedly made clear to all our partners, including India, that any foreign company or financial institution that does business with Russia's military industrial base are at risk of U.S. sanctions." The State Department did not respond to a follow-up question regarding the financial stakes held by U.S. and Spanish firms in one of the Russian recipient companies. Russia's defense ministry did not respond to a request for comment. "While India has not typically been among the primary jurisdictions used for circumventing sanctions, we are aware that isolated cases can occur," Ukrainian presidential adviser Vladyslav Vlasiuk told Reuters. "We can confirm that the Russian company Promsintez has appeared on our radar in the past, including in connection with cooperation involving Indian counterparts," added Vlasiuk, President Volodymyr Zelenskiy's top sanctions official. WASHINGTON WOOS NEW DELHI Reuters identified two HMX shipments sent in December by Indian firm Ideal Detonators Private Limited, both of which were unloaded in St. Petersburg, according to the Indian customs data. An Indian government official with direct knowledge of the shipments confirmed them. One shipment, worth $405,200, was purchased by a Russian company called High Technology Initiation Systems, or HTIS, the data showed. The other shipment, worth more than $1 million was purchased by Promsintez. Both purchasers are based in Samara Oblast, near the border of Kazakhstan in southern Russia, according to the data. HTIS says on its website it produces explosives for surface and underground mining and engineering projects. It describes itself there as a subsidiary of Madrid-based Maxam, which in turn is majority-controlled by Rhone Capital, a New York-headquartered private equity firm set up by former Goldman Sachs and Lazard bankers. A source familiar with Maxam's operations said the company is in the process of divesting its Russian subsidiaries and that HTIS operates independently. Ideal Detonators Private Limited, based in the Indian state of Telangana, did not respond to a request for comment, nor did Promsintez, HTIS and Maxam. Rhone Capital declined to comment. While several Indian entities were sanctioned during the administration of former U.S. President Joe Biden for supporting Russia's war effort, sanctions were applied sparingly due to geopolitical considerations, according to two U.S. officials who worked on sanctions under Biden. Under Trump, Russia-related sanctions work has slowed to a trickle, and it is not clear if the United States will take further action against Indian companies doing business with Russia's defense industry. Washington has long sought closer relations with India to pull the South Asian country away from China. Jason Prince, a partner at Washington-based law firm Akin, said the U.S. government often prefers to communicate its concerns privately to allies and only take punitive actions as a last resort. This article was generated from an automated news agency feed without modifications to text.
Time of India
15 minutes ago
- Time of India
Duty cuts on UK goods may aid firms more than buyers
Union commerce minister Piyush Goyal and his British counterpart Jonathan Reynold during the signing of the Comprehensive Economic and Trade Agreement (CETA), in the UK. NEW DELHI: Government has agreed to cut tariffs on thousands of products imported from UK - from chocolates and cosmetics to cars, silver and Scotch - but reduction and elimination of customs duties will not translate into the entire benefit being passed on to consumers. To begin with, customs duty is only the basic cost of the landed price for an Indian seller. On top of that are local levies - GST or excise - which even an Indian manufacturer has to pay. And, this can be a significant portion of the final price. Take the case of alcohol, for instance, where the landed price of a bottle of the popular Johnnie Walker Black Label is estimated at around Rs 350, which at 150% customs duty sees a levy of Rs 525. On top of that, there is a 200% margin for the importer, the company, in most cases - which means an addition of around Rs 750 - taking the landed price to Rs 1,275. Then comes excise of 85% or Rs 1,084 and VAT of 25% (Rs 590), taking the wholesale price to Rs 2,950. Then comes the retail margin, pushing the cost in a market like Delhi to over Rs 3,000 a bottle. The actual price reduction for a customer will only be Rs 200-300 a bottle, a top industry executive told TOI while predicting a higher margin for companies. That's especially true for Made-in-India whisky, which blend anywhere between 1% and 25-30% Scotch imported in bulk form. "Going forward, for several MNCs operating in India, bottling in India may not be a great idea and they will simply import bottles of blended whisky," the source said. A similar situation is likely to play out in other sectors such as cosmetics too, where companies will see improved margins, said marketing executives. There is no mechanism for govt to ensure the full benefit is passed on. Although it tried to ensure the window is no longer available under GST and in any case, companies dragged authorities to court, questioning the calculations. In segments such as automobiles, competition from players will drive pricing behaviour, as will other trade agreements. For instance, with the EU deal in the pipeline, a German carmaker or Tesla may just lower domestic prices significantly to grab a bigger pie of the market. With duty reduction in several segments staggered over 10 years, price cuts are not on the immediate horizon. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
16 minutes ago
- Time of India
Pharma, medical device sectors receive right prescription
This is a representative AI image The India-UK FTA is expected to strengthen supply chains for pharma and medical devices sectors, improve access to affordable medicines, and pave the way for collaboration in bulk drugs and joint research. The domestic pharma industry is hopeful exports of generic drugs to UK - currently valued at around $1 billion - will see a boost. Sudarshan Jain, secretary general, Indian Pharmaceutical Alliance, said the pact offers opportunities to supply affordable and quality-assured medicines, contributing to better patient care in the UK. Namit Joshi, chairman of Pharmexcil, added the agreement paves the way for partnerships in bulk drug imports, CDMO, and joint research, strengthening India's competitive edge. The medical devices industry also expects bilateral trade to accelerate. "Earlier, devices imported into UK were duty-free, so tariffs weren't a concern. But regulatory approval costs & timelines were. We had sought UK recognition of Indian CDSCO or QCI certifications to fast-track approvals," said Rajiv Nath, forum coordinator, AiMeD. He highlighted need for stricter Rules of Origin checks to prevent misuse of FTA. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
