DIGITALIZATION The Only Way Forward is - AEPC
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YR 21 ISSUE 05
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE I MAY 2021 100
TEXTILES MINISTER CALLS FOR
VACCINATION OF APPAREL WORKERS
AIM FOR $400 BILLION
MERCHANDISE EXPORTS:
COMMERCE MINISTER
The Only Way Forward is
DIGITALIZATION
COMPLETELY TRANSFORMING THE GLOBAL APPAREL SECTOR FOCUS C
OUNTRY
TES
TED STA
UNI
APPAREL | CHAIRMAN’S MESSAGE
Dear Friends,
W
e have come a long way through these trou-
bled times and with God’s blessings and our
positive attitude we are sure to come out of the
pandemic protecting both lives and livelihoods.
RMG exports of $1,294 million in April 2021 is back to
pre-Covid levels with an increase of 920% year-on-year.
Last fiscal saw an overall decline of about 21% yoy, which
shows a tremendous resilience and enterprise of our
apparel exporting sector.
As we found different ways of coping with the emerging
scenario while firefighting at many fronts in the pandemic
year, one the most strategic moves that the Council took Continuous Process Industries with full compliance to
for a lasting solution is the way we engage with buyers. pandemic safety norms.
We embraced digitalization in all our activities from As yarn prices have shot up, we have requested urgent
showcasing our apparels to engaging in B2B talks. Our intervention of the Hon’ble Textiles Minister to increase
cover story is aptly on this subject – how digitalization is the supply of cotton yarn to domestic manufacturers.
transforming the apparel sector. We have suggested quantitative restrictions and duty
Continuing with our focus on the MMF segment, we on exports of cotton yarn. Besides, we have urged the
organized a webinar last month with MMF fabric suppliers Hon’ble Ministers of Commerce and Textiles, in different
from China and Taiwan to help fill the domestic shortage. online meetings, for early announcement of RoDTEP
I have requested Hon’ble Textiles Minister Smt Smriti rates and continuation of RoSCTL rates till then. The
Zubin Irani to include 20 MMF HS codes in focus products Hon’ble Textiles Minister has assured of taking it up with
under Production Linked Incentive (PLI) scheme. other ministries.
Magic Authorities, USA, organized an online We were successful in requesting the RBI Governor for
matchmaking business meeting attended by 40 buyers for extension of Interest Equalisation Scheme (IES) for pre
opportunities in the US market, including MMF garments and post shipment rupee export credit till 30 June 2021.
and organic cotton products. Meanwhile, International We have now requested for its extension up to 31 March
Apparel Federation (IAF), Netherlands, has welcomed 2022. We have also requested that the 5% IES available
our request to join them and is finalizing the modalities to only to MSMEs may be extended to all apparel exporters.
work together for setting common standards for sourcing I have also written to Hon’ble Ministers of Finance and
terms and procurement practices. Commerce on this.
Considering the second wave of Covid-19 pandemic and Hope all member exporters are vaccinating their
proposed lockdowns, I have requested Hon’ble Ministers of workers and staff as requested. You can use your CSR
Home, Finance, Health, Textiles, Commerce and Industry, funds towards Covid care facilities. Do write in your
their secretaries and several state governments for suggestions at chairman@aepcindia.com.
keeping factories free from lockdowns, and urged them to
consider apparel export industry as an essential services With a little extra effort, a lot can be achieved!
sector. Based on our request, Tamil Nadu, Uttar Pradesh
and Haryana have allowed all apparel manufacturing
units with export commitments and their vendor units to
Dr A Sakthivel
continue functioning under Essential Commodities and Chairman, AEPC
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021 /1
APPAREL | EVENTS CALENDAR
EVENTS
CALENDAR
28-30 8-11 23-25
June 2021 August 2021 August 2021
INDIA TEX SOURCING AT APPAREL TEXTILE
TREND FAIR (ITTF) MAGIC FAIR, SOURCING,
TOKYO, JAPAN USA CANADA
9-10
September 2021 September 2021 November 2021
PURE LONDON WHO’S NEXT, AUSTRALIA
(PURE ORIGIN) PARIS, FRANCE INTERNATIONAL
SOURCING FAIR
February 2021
SOURCING AT MAGIC
FAIR, USA
2 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021
APPAREL | CONTENTS
YR 21 | ISSUE 05 | MAY 2021 | Pages 60
YR 21 ISSUE 05
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE I MAY 2021 100
TEXTILES MINISTER CALLS FOR 01|CHAIRMAN’S MESSAGE
VACCINATION OF APPAREL WORKERS 34 | INDIA NEWS
• India can be most natural ally for EU:
02 | EVENTS CALENDAR Shri Piyush Goyal
• Centre initiates vaccination centres at
workplaces
AIM FOR $400 BILLION
MERCHANDISE EXPORTS:
04 | KEY STATISTICS • India, Bangladesh agree on trade
COMMERCE MINISTER • RMG exports grow 920% in remedial measures
April 2021 • First convocation at Kashmir NIFT
• Textile manufacturing falls 4.5% in • Hon’ble Commerce Minister launches
February 2021 trade facilitation app
• Container shortage eases in India
06 | UPFRONT
• India’s export sector to take off: 40 | GLOBAL NEWS
The Only Way Forward is Commerce Secretary • Nike commits to reduce its carbon
DIGITALIZATION
COMPLETELY TRANSFORMING THE GLOBAL APPAREL SECTOR FOCUS CO
UNTRY
10 | COVER STORY
footprints
• Life 360 environmental strategy of
ATES
UNITED ST
• Digitalization – The only LVMH
way forward • PVH joins hand with Americares
CHAIRMAN AEPC • Versace and Luxottica Group renew
Dr A Sakthivel license agreement
CHAIRMAN EP
16 | SPECIAL FEATURE • Gap Inc plans to sell Janie and Jack
Mr Sudhir Sekhri • LVMH, Prada Group and • Tommy Hilfiger appoints Alegra
Cartier to form Aura Blockchain O’Hare as Global CMO
Secretary General, AEPC Consortium • H&M collaborates with lemlem to
Dr LB Singhal
promote sustainability
ADVISOR AEPC
Mrs Chandrima Chatterjee
18 | FOCUS COUNTRY • Levi Strauss & Co publishes 2021’s
• US economy to outpace many first quarter results
PUBLISHER in 2021 • Gap Inc ties up with Barclays and
Apparel Export Promotion Council
Mastercard
• H&M promotes sustainability with
Apparel House, Sector-44, 26 | COUNCIL AFFAIRS Maisie Williams
Institutional Area, Gurugram,
HARYANA – 122003.
• Apparel exporters seek help from • Three ways to think by Nike
global MMF fabric suppliers
Phone: 0124-2708000
• Hon’ble Textiles Minister calls
www.aepcindia.com
for vaccination of apparel sector 47 | OBITUARY
workers
• AEPC appeals for uninterrupted 48 | GST UPDATE
manufacturing at factories
• Hon’ble Textiles Minister cautions
mill associations on yarn prices 52 | NOTIFICATIONS
Content & Design • Meeting on availability of PPE kits
Vanman Communications Pvt Ltd • Full support to exporters, aim for
Email: vanmancommunications@gmail.com $400 bn merchandise exports: 54 | CIRCULAR
Printing Press Commerce Minister
Royal Press, New Delhi • AEPC to join International
Email: royalpress2014@gmail.com Apparel Federation 60 | MEDIA COVERAGE
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021 /3
APPAREL | KEY STATISTICS
RMG EXPORTS GROW
920% IN APRIL 2021
India’s Ready-Made Garment (RMG) Export
Update for April, FY 2021-22
RMG exports were to the tune of USD 1294.42 million in April 2021 showing a positive
growth of 920.52 per cent against the corresponding month of April 2020 and decline of
8.12 percent against April 2019.
India’s RMG Export to World
( In US$ Mn.) MoM Growth (%)
Month 2019-20 2020-21 2021-22 2021-22
2019-20 2020-21 2021-22 Over Over Over Over
2018-19 2019-20 2019-20 2020-21
April 1408.77 126.84 1294.42 4.2 -91.00 -8.12 920.52
May 1530.06 517.02 14.2 -66.21
June 1233.52 804.29 -9.2 -34.80
July 1365.78 1065.73 7.1 -21.97
August 1261.92 1085.61 -2.4 -13.97
September 1080.63 1192.9 -2.2 10.39
October 1108.93 1180.03 -2.1 6.41
November 1058.54 1046.98 -6.4 -1.09
December 1409.46 1196.9 2.4 -15.08
January 1453.45 1296.19 -4.9 -10.82
February 1477.85 1349.1 -4.4 -8.71
March 1120.48 1425.59 -34.8 27.23
Total 15509.39 12287.18 -4.0 -20.78
Source: DGCI&S, Kolkata, 2021
April, 2021 data is based on PIB prelimanary data
4 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021
APPAREL | KEY STATISTICS
TEXTILE MANUFACTURING
FALLS 4.5% IN FEBRUARY 2021
India’s Textile & Ready Made Garment (RMG)
Update for Index for Industrial Production
(IIP) for February, FY 2020-21
MoM
Manufacture of Manufacture of Wearing MoM Growth Rate
Growth Rate
Textiles Apparel (In %)
(In %)
2020-21/2019-
Month 2019-20 2020-21 2019-20 2020-21 2020-21/2019-20
20
April 119.8 5.3 # 165.1 6.3 #
May 115.6 31.5 # 163.5 97.5 #
June 110.1 50.3 -54.3 167.3 100.9 -39.7
July 113.8 97.0#* -14.8#* 166.8 118.9#* -28.7#*
August 115.0 95.9#* -16.6#* 158.6 120.5#* -24.0#*
September 115.2 101.7#* -11.7#* 144.2 123.9#* -14.1#*
October 115.9 107.0* -7.7* 137.1 120.9* -11.8*
November 119.7 108.0* -9.8* 139.1 112.9* -18.8*
December 123.5 114.6* -7.2* 170.8 136.7* -20.0*
January 122.2 115.4* -5.6* 162.3 129.5* -20.2*
February 116.7 111.5* -4.5* 164.6 141.2* -14.2*
Total (Apr-Feb) 117.0* 88.4* -24.4* 158.1* 105.0* -33.6*
Source: CSO, 2020
* Figures for February 2021 are Quick Estimates.
Manufacturing of Textiles for Manufacturing of Wearing
the month of February, 2021 is Apparel for the month of February,
111.5 which has shown a decline 2021 is 141.2. which has shown
of 4.5% as compared to February, a decline of 14.2% as compared to
2020. February, 2020.
Manufacturing of Textiles for Manufacturing of Wearing
the financial year Apr-February, Apparel for the financial year Apr-
2020-21 is 88.4 which has shown February, 2020-21 is 105.0 which
a decline of 24.4% as compared to has shown a decline of 33.6% as
the financial year Apr-February, compared to the financial year
2019-20. Apr-February, 2019-20.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021 /5
APPAREL | UPFRONT
INDIA’S EXPORT SECTOR
TO TAKE OFF: COMMERCE
SECRETARY
A
fter showing tremendous resilience during
2020-21, India’s trade performance is all set to
take off on the back of improvement in Ease
of Doing Business (EoDB), creation of a plug and play
investment/ manufacturing environment, and launch
of Production Linked Incentive Scheme (PLI), as per
Commerce Secretary Dr Anup Wadhawan.
“Prospects for a quick recovery in world trade have
improved as merchandise trade expanded more rapidly quarter of last year, he said as per a press release
than expected in the second half of last year. World mer- issued by the Ministry of Commerce and Industry, Gov-
chandise trade volume is expected to increase by 8.0% ernment of India on 20 April 2021.
in 2021 (Jan-Dec) after falling 5.3% in 2020 (Jan-Dec), as
per the WTO,” Dr Wadhawan said in an official note. “The Covid period has revealed new opportunities for
Indian food sector. There is a rise in demand in US,
World trade continues its rebound from the pandem- Europe, Australia, New Zealand, Israel, Palestine and
ic-induced collapse that bottomed out in the second Egypt. Enquires for fresh/ dehydrated garlic, spices
6 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021
APPAREL | UPFRONT
(chilli, turmeric, ginger), seed spices (cumin, fennel), services exports by (-) 8.92 per cent.
sesame seeds/ oil, sugar (new demand from Sri Lanka)
and groundnut have been received by the exporters. The “India’s dominance in the pharma sector has been re-
demand for non-basmati rice from new buyers such as inforced with supply of critical covid related supplies to
Malaysia and the Philippines is likely to boost exports in over 150 countries and rapid growth in exports during
the coming months,” the Commerce Secretary said. the Covid period. This sets an excellent foundation for
our export sector to take off on the back of significant
The Indian economy has shown significant resilience improvement in EoDB, creation of a plug and play
amidst the global pandemic and trade shock that began investment/ manufacturing environment across various
to impact the global economy towards the end of 2019-20 industrial corridors, and launch of the very substantive
and acquired catastrophic proportions in 2020-21, the PLI schemes across 13 sectors,” Dr Wadhawan said.
ministry said.
The Prime Minister’s clarion call for an ‘Atmanirbhar
The cumulative value of overall exports (merchandise Bharat’ envisages policies for the promotion of an
and services) during April-March 2020-21 has been efficient, equitable and resilient manufacturing sector in
estimated at $493.19 billion compared to $528.37 billion the country. Keeping in view this vision and to enhance
during April-March 2019-20, registering a negative India’s manufacturing capabilities and exports, an
growth of (-) 6.66 per cent. He added that it reflects a outlay of Rs 1.97 lakh crore was announced in Union
remarkable recovery over the course of the financial Budget 2021-22 for PLI schemes for 13 key sectors for a
year after the huge downturn in April 2020 reflected in period of 5 years starting from fiscal year 2021-22.
decline in merchandise exports by (-) 60.28 per cent and
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021 /7
APPAREL | UPFRONT These 13 sectors are mobile manufacturing and specified electronic components, critical key starting materials/ drug intermediaries and active pharmaceu- tical ingredients, manufacturing of medical devices, automobiles and auto components, pharmaceuticals drugs, specialty steel, telecom and networking products, electronic/ technology products, white goods (ACs and LEDs), food products, textile products: manmade fibre (MMF) segment and technical textiles, high efficiency solar PV modules, and advanced chemistry cell (ACC) battery. The PLI schemes will will make Indian manufacturers globally competitive, attract investment in the areas of core competency and cutting-edge technology; ensure efficiencies; create economies of scale; enhance exports and make India an integral part of the global supply chain, the ministry said in another press statement. Growth in production and exports of industrial goods will greatly expose the Indian industry to foreign com- petition and ideas, which will help in improving its ca- pabilities to innovate further. Promotion of the manufac- turing sector and creation of a conducive manufacturing ecosystem will not only enable integration with global supply chains but also establish backward linkages with the MSME sector in the country. It will lead to overall growth in the economy and create huge employment opportunities. Trade data for March 2021, the final month of 2020-21 reflects the build-up of a strong recovery in exports despite several challenges. The overall export (mer- chandise and services) for March 2021 is estimated at $52.20 billion, registering a positive growth of 31.64 per cent vis-à-vis March 2020. Merchandise exports in March 2021 grew by 60.29 per cent as compared to March 2020, which was substantial even after factoring in the base effect. This was driven by healthy export growth in key sectors such as engi- neering goods (71.30%), gems and jewellery (78.93%), petroleum products (35.52%), drugs & pharmaceuticals (48.49%) and organic & inorganic chemicals (46.50%). Merchandise exports other than petroleum, oils and lubricants (POL) and gems and jewellery had an even more impressive performance in March 2021 attaining a value of $27.42 billion, as against $16.95 billion in March 2020, an increase of 61.75%. The cumulative value of merchandise exports during April-March 2020-21 has been estimated at $290.63 billion compared to $313.36 billion during April-March 2019-20, which is a negative growth of (-) 7.26 per cent, which is fairly moderate given the prevailing global 8 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021
APPAREL | UPFRONT situation. If gems and jewelry and POL exports, both in- volving very moderate value addition, are excluded, the growth in merchandise exports in 2020-21 was actually (+) 1 per cent i.e. an increase over 2019-20, notwith- standing the Covid disruption. This reflects immense adaptability in our exporters in capturing new opportunities in sectors like other cereals, oil meals, rice, cereal preparations and miscel- laneous processed items, drugs and pharmaceuticals, spices, fruits and vegetables, carpets, jute manufac- tures, ceramic products & glassware and organic and inorganic chemicals, while containing the downturn in other sectors in the face of huge challenges. The decline in export values in petroleum products and G&J also, predominantly reflected decline in global prices rather than volumes. The commodities/ commodity groups which have re- corded positive growth during 2020-21 as compared to 2019-20 are other cereals (219.13%), oil meals (87.91%), iron ore (86.78%), rice (37.06%), cereal preparations and miscellaneous processed items (21.16%), drugs and pharmaceuticals (18.07%), spices (10.37%), fruits and vegetables (8.63%), carpet (8.39%), jute manufacturing including floor covering (8.29%), ceramic products and glassware (6.02%) and organic and inorganic chemicals (0.51%). The overall trade deficit, taking merchandise and ser- vices together, for April-March 2020-21 is estimated at $12.74 billion as compared to the deficit of $77.76 billion in April-March 2019-20. The merchandise trade deficit between 2019-20 and 2020-21 declined from $161.35 billion to $98.56 billion APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021 /9
APPAREL | COVER STORY
DIGITALIZATION –
THE ONLY WAY FORWARD
Completely Transforming the Global Apparel Sector
10 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021APPAREL | COVER STORY
“SOME PEOPLE SAY
GIVE THE CUSTOMERS WHAT
THEY WANT, BUT THAT’S NOT MY
APPROACH. OUR JOB IS TO FIGURE OUT
WHAT THEY’RE GOING TO WANT BEFORE
THEY DO. I THINK HENRY FORD ONCE SAID,
‘IF I’D ASK CUSTOMERS WHAT THEY WANTED,
THEY WOULD’VE TOLD ME A FASTER HORSE.’
PEOPLE DON’T KNOW WHAT THEY WANT
UNTIL YOU SHOW IT TO THEM. THAT’S WHY I
NEVER RELY ON MARKET RESEARCH. OUR
TASK IS TO READ THINGS THAT ARE
NOT YET ON THE PAGE.”
APPLE FOUNDER
STEVE JOBS
T
hese lines clearly reflect that digi-
talization is the need of the hour for
all industry and sectors and there is
no need to undertake any prior mar-
ket study to understand the impor-
tance of digitalization in today’s fast
changing consumer behaviour.
Apple products – computers, lap-
tops, iphones, ipad, and iwatch are the examples which
reflect the power of technology and its influence on both
consumers and companies. The company has revolution-
ized the electronics sector.
One key point needs to be understood here clearly
before moving forward. Digitalization does not mean use
of a computer on a table in a company. In the fast chang-
ing business environment and consumer behaviour, the
apparel industry has to use all high end digitalization
tools to increase efficiency in their organisation and
cater consumers.
Key tools of digitalization which are changing the
global apparel industry include – artificial intelligence,
augmented and virtual reality technology, cloud comput-
ing, Internet of Things, robotics, voice-assisted shopping,
data and analytics, smart and modern future ready
stores (online and offline both), payment gateways, use
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021 / 11APPAREL | COVER STORY of robots, RFID tags, QR codes in logistics and delivery most challenging fields, highly impacted by global of goods, and blockchain technology. economic uncertainty as well as distinct trends and in- Use of these tools are completely changing the dustrial changes. In response to the pressure for growth way companies used to operate their businesses and and cost efficiency, many brands have started a series consumers used to buy goods. These tools are not only of initiatives to improve their speed to market and to promoting efficiency and transparency in the ecosystem implement sustainable innovation in their core product of a company domestically, but also help in a greater design, manufacturing and supply chain processes. way to tap growing business opportunities world over. The fast changing consumer behaviour and business Digitalization in simple terms means use technology environment are keeping companies on toes and forcing and modern tools to make things move smoother - be them to adopt different forms of digital tools. Compa- it running machines in a factory, making products, nies engaged in the apparel sector are using robots and transportation of those items to godowns, managing modern machines to design and manufacture products. that inventory, wholesaling, retailing, undertaking bank- They are no longer dependent only on human minds and ing transactions and paperwork to carry out all these hands. Starting from HR practices to manufacturing to moves. At every single step, digitalization is changing packaging and transporting, digital medium is being the way companies used to do business in earlier times. used to make things better and smoother. The whole supply chain needs to be transformed digital- The whole paperwork is now being done through ly in order to be competitive in this highly competitive online processes, be it taking orders to track trans- market, otherwise you will be replaced. portation of orders, everything is online. According to Faster a company adapts digitalization, the faster it an industry expert, these measures have significantly can tap growing opportunities in today’s world, when transformed the way the apparel industry used to work consumer behaviour and business models are changing decades back. every second. Varanasi-based apparel player Rakesh Agarwal said The global apparel industry contributes significantly that earlier they used to maintain physical registers in the world economy both in terms of revenues and or notebooks for everything, and due to that business creating jobs. growth was abysmal. “Now changing market scenar- According to a Deloitte report, fashion is one of the ios have made us understand that we need to change 12 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021
APPAREL | COVER STORY
ourselves and change the way we do our businesses.
Now we use modern tools like accounting softwares, and
softwares for designing clothes. It has totally changed
the business and made it smoother,” Agarwal said.
A Deloitte report stated that digital transformation
is the means by which companies affect organizational
change, manage reputational risks and close the gaps
between customers’ expectations and the service and
experience they receive. Digital transformation is about
challenging and changing ingrained perceptions about
what a company is, does and says, in order to increase
relevance to consumers.
360-DEGREE CHANGE
AFTER PANDEMIC
The ongoing crisis has impacted each and every nook
and corner of the globe, from rich to poor. Globally
companies have realized that digitalization is not only
beneficial but now it’s a need, without which things will
collapse. Now even the MSEs (micro and small enter-
prises) are adopting tools to digitize all the processes.
For example, Indian apparel sector, without losing time,
immediately jumped on organising virtual buyer-seller
meets and virtual fairs and exhibitions to attract global
buyers.
According to Federation of Indian Export Organisa-
tions (FIEO) Director General Ajay Sahai, organizing
virtual or online trade shows are helping Indian export-
ers to showcase their products and keep the economic
activity wheel moving. Apparel firms are modernizing
their websites, using IT tools to permit employees in the
administrative departments to work from home. Com-
panies also gauged the need to diversify their manufac-
turing on account of the pandemic. They got into making
key goods used in this health crisis such as face masks,
PPE kits and other items.
This crisis showed the widening digital divide in the
apparel sector. On one hand, units in poor countries are
still using traditional methods as broadband connec-
tivity has still not reached their territory. On the other
hand, big manufacturing players of the world were quite
well-prepared to deal with the crisis. Gradually every-
one is understanding the importance of digitalization
and started taking steps in that direction.
According to a report of McKinsey & Company, “Digi-
tal is not only an increasingly important sales channel;
it can also help companies adapt cost structures and
make each step of the value chain better, faster, and
cheaper. For example, digitalization can enable new
logistics and sales-fulfillment options (such as click-
and-collect and drive-through), fuel innovative ways
of customer acquisition, and help predict and manage
inventory to create a more resilient supply chain. The
fundamental enabler to all this will be data – the trans-
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021 / 13APPAREL | COVER STORY
parency, governance and accuracy. It has never been
more important.”
INDIAN APPAREL EXPORTERS
To overcome the restrictions on physical movements,
Apparel Export Promotion Council (AEPC) launched a
virtual exhibition platform on 9 November 2020 to show-
case garments made by Indian apparel exporters round
the year (24x7x365), where brands and buyers from
across the world can visit and place their orders.
AEPC Chairman Dr A Sakthivel said, “Buyers can
have a near physical experience of the exhibition while
navigating through the options in high resolution 360 de-
gree avatars. The platform offers free flowing two way
communication between buyers and exhibitors through
video call and WhatsApp chat facilities. Exhibitors have
the real time flexibility to change their products on
display and have the security feature of allowing only
select buyers into their stalls. Buyers can collect prod-
ucts on their ‘Wishlist’ for discussion.
“Usually apparel exporters have a set of buyers from
a set of countries with whom we do business. But with
this virtual platform, we can get orders from new buyers
and from new countries as it is open to everyone in the
world. I expect at least 500 exporters to enroll for this
virtual platform in the initial phase. We also have sep-
arate showrooms for medical textiles in the exhibition
now that India is the second largest producer.”
SCENARIO IN INDIA
Citing a Cisco report, news agency PTI has reported
that India is expected to have over 907 million internet
users by 2023, up from 398 million in 2018. These figures
reflect multi-fold increase in smart phones and data
by common people. It is leading to a digital revolution
in the country and the private sector has to adopt this
before it gets too late.
Indian apparel companies from north to south and from
east to west, are using these tools to improve efficiency
in their factories and retailers to enhance consumer’s
experience, though in a gradual manner.
Apparel retailers have quite understood the fact that
Covid protocols, like physical distancing, and wearing data analytics will be key. It will help in understand-
masks, would be a normal affair in the years to come, ing demand for raw material and manufacturing final
which means less footfall of consumers in shops and products. Companies are now hiring data scientists for
malls. A kind of contact-free economy is prevailing and the purpose. Using social media tools is going to be crit-
is likely to prevail in the years to come world over. This ical. Gradually companies will have to increase usage
clearly means, one has to adopt e-commerce ways and of social media digital tools to attract consumers and
automation to grab the eyes of consumers and maintain understand their needs.
revenues So, need of the hour is rapid digitalization of organi-
sations and not just automation. Employees, machines
and systems need to interact with each other and
WAY FORWARD provide real time data so that decision making becomes
Judicious use of all the tools of digitalization is going effective, which would push the growth of Indian apparel
to change the face of a business and retailer. Data and industry.
14 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021APPAREL | COVER STORY MYTH BUSTER One can argue that digitalization has a negative effect. It can lead to job losses. But this is not true. With chang- ing needs, a worker, be it working on a machine or on a computer – both have to upskill themselves to survive and help their company adopt best global practices during such a crisis era. Digitalization will enhance efficiency in every depart- ment of a company. Increasing efficiency will increase the scale of operations, which needs investments. And, all this will help in creating many more jobs as they will have to cater large numbers of retailers and wholesal- ers. HUMAN CONNECT CONTINUE TO REMAIN KEY While digitalization would improve efficiency and reve- nue books, one should not forget about human connec- tion. There should always be a forum or platform in an organization, which continuously engages employees to connect with each other and with management. This needs to be taken care of. Connecting machines with digital tools should not leave out human connect APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021 / 15
APPAREL | SPECIAL FEATURE
LVMH, PRADA GROUP
AND CARTIER TO FORM
AURA BLOCKCHAIN
CONSORTIUM
G
lobal giants of luxury sector LMVH, Prada
Group and Cartier have jointly announced
the creation of Aura Blockchain Consor-
tium, which will promote the use of a single
global blockchain solution and will be open to all
luxury brands throughout the globe.
This step will help in providing consumers with
additional transparency and traceability. According
to its press release, LMVH, Prada Group and Cartier,
that are part of Richemont, have created together a
single solution to address the shared challenges of
communicating authenticity, responsible sourcing
and sustainability in a secure digital format.
Toni Belloni, Managing Director of LMVH said,
“The Aura Blockchain Consortium is a great oppor-
tunity for our sector to strengthen our connection
with customers by offering them simple solutions to
get to know our products better. By joining forces
with other luxury brands on this project, we are lead-
ing the way on transparency and traceability. I hope
other prestigious players will join our alliance.”
Brands are trying real hard to lessen the gap be-
tween them and consumers; gap that is brought in by
the pandemic. To regain consumers, it is necessary
to earn their trust. This is the point where transpar-
ency plays a key role.
As per the release, the technological system of
a multi-nodal blockchain is secured by Consen-
Sys technology and Microsoft. It will be working
16 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021APPAREL | SPECIAL FEATURE
towards security of information and its non-repro-
duction and generate an owner’s unique certificate.
This will enhance desire for beautiful materials made
with high-quality sustainable materials. It was further
learned that the consortium will be available to all
luxury brands irrespective of their operational sub-sec-
tor or geography. Companies with varying sizes will be
eligible for the Consortium’s support. The Consortium is
a non-profit organisation that aims to enhance customer
relationships; also providing with brand protection.
In a world that has suddenly turned to unpredictable,
brand-consumer relation needs a special support. In a
predictable world of post-COVID era, consumers will
become rational and choosy. Authentication guarantee
followed by transparency will play a major role in at-
tracting consumers. On the other hand, brands will need
extra support to recover from the hard effects of the
pandemic. Something like Aura Blockchain Consortium
will provide these brands with protection; it will help President and CEO of Cartier International Cyrille
them with establishment/re-establishment of their brand Vigneron said, “The Aura Consortium represents an
with technology and tactics. This would certainly be an unprecedented cooperation in the luxury industry.
onus for brands to regain their market-place. If there is Blockchain is a key technology to enhance customer
any best time for luxury brands to be open to consum- service, relationship with partners and traceability.
ers and talk about their making processes, that time The luxury industry created timeless pieces and must
is now-to start. The Aura Blockchain Consortium will ensure that these rigorous standards will endure and
help customers to have direct access to product history remain in trustworthy hands. We therefore invite the
and authenticity; this would enormously contribute in entire profession to join this consortium to design a new
attracting them. luxury era enabled by blockchain technology.”
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021 / 17APPAREL | FOCUS COUNTRY US ECONOMY TO OUTPACE MANY IN 2021 The United States, a highly developed mixed economy, is the world’s largest economy powered by technologically superior firms. It’s the world’s largest importer and the second-largest exporter. The US dollar is the world’s leading reserve currency. The US economy entered recession, the worst ever since the Great Depression, in the first half of 2020 due to Covid-19 pandemic. It contracted 3.5% in 2020. However, forecasts suggest that the US is likely to have a strong recovery in 2021. It may record a growth rate of 6.5% in 2021, which will be the fastest in the last three decades. 18 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021
APPAREL | FOCUS COUNTRY APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021 / 19
APPAREL | FOCUS COUNTRY
ECONOMIC INDICATORS -
Indicators Value
Real GDP (Purchasing Power Parity), 2019 est. $20,524,945,000,000
GDP (official exchange rate), 2019 est. $21,433,228,000,000
Real GDP (Per Capita), 2019 est. $62,530
Real GDP Growth Rate,2019 est. 2.16%
Inflation Rate, 2019 est. 1.8%
highly diversified, world leading, high-tech-
nology innovator, second-largest industrial
output in the world; petroleum, steel, motor
Industries
vehicles, aerospace, telecommunications,
chemicals, electronics, food processing,
consumer goods, lumber, mining
Source: The World Factbook-CIA
LOCATION - North America, bordering both the North Atlantic Ocean and the North Pacific Ocean,
between Canada and Mexico
CLIMATE - mostly temperate, but tropical in Hawaii and Florida, arctic in Alaska, semiarid in the
great plains west of the Mississippi River, and arid in the Great Basin of the southwest; low winter tem-
peratures in the northwest are ameliorated occasionally in January and
February by warm chinook winds from the eastern slopes of the Rocky Mountains
AGE STRUCTURE -
0-14 years: 18.46% (male 31,374,555/female 30,034,371)
15-24 years: 12.91% (male 21,931,368/female 21,006,463)
25-54 years: 38.92% (male 64,893,670/female 64,564,565)
55-64 years: 12.86% (male 20,690,736/female 22,091,808)
65 years and over: 16.85% (male 25,014,147/female 31,037,419)(2020 est.)
USA’S APPAREL TRADE-
USA’S RMG IMPORT FROM WORLD AND INDIA
% Change
2018 2019 2020
2020/2019
USA’s RMG Import from World, (USD Mn.) 86728.3 87522.8 71187.3 -18.7
USA’s RMG Import from India, (USD Mn.) 4025.4 4262.4 3202.5 -24.9
India’s Share in USA’s RMG import from
4.6 4.9 4.5 -7.6
world, %
Source: UN Comtrade, 2021
The above table shows that USA’s RMG import from world were to the tune of USD
20 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021APPAREL | FOCUS COUNTRY
71187.3 mn. in 2020 showing a decline of 18.7% as compared to 2019. RMG import from
India has remained USD 3202.5 mn. registering a decline of 24.9%. as compared to 2019.
India’s % share in USA’s RMG import from world has remained 4.5% in 2020.
TOP RMG SUPPLIER TO USA -
Top RMG Supplier to USA (Values in USD mn.)
Exporters 2020 % Share
S. No.
World 71187.35 100
1 China 19545.37 27.5
2 Viet Nam 13182.32 18.5
3 Bangladesh 5284.106 7.4
4 Indonesia 3668.834 5.2
5 India 3202.51 4.5
6 Cambodia 3056.993 4.3
7 Mexico 2439.325 3.4
8 Honduras 1991.527 2.8
9 Jordan 1568.773 2.2
10 Sri Lanka 1541.334 2.2
Source: UN Comtrade, 2021
The above table shows that China has remained a top supplier of RMG to USA with a
% share of 27.5% in 2020. India is the 5th largest supplier of RMG to USA with a % share
of 4.5 %. Bangladesh, and Cambodia have a % share of 7.4% and 4.3%.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021 / 21APPAREL | FOCUS COUNTRY
USA’S TOP 10 RMG PRODUCTS IMPORT FROM WORLD VS INDIA’S SHARE
USA’s Top 10 RMG Import from World vs India’s share
United States of United States of
India’s
America’s imports America’s imports
Product label share in
from world,Value in from India,Value in
S. Product %
2020,USD mn. 2020,USD mn.
No. code
RMG 71187.3 3202.5 4.5
Sum of Top 10 33069.7 1023.8 3.1
Jerseys, pullovers, cardigans,
1 611020 waistcoats and similar arti- 6331.2 360.8 5.7
cles, of cotton
Garments made up of felt or
nonwovens, whether or not
2 621010 4661.6 25.3 0.5
impregnated, coated, covered
or laminated
Jerseys, pullovers, cardigans,
3 611030 waistcoats and similar arti- 4522.2 21.8 0.5
cles, of man-made fibres
Men’s or boys’ trousers, bib
4 620342 and brace overalls, breeches 3669.2 95.0 2.6
and shorts, of cotton
T-shirts, singlets and other
5 610910 3637.9 207.6 5.7
vests of cotton
Women’s or girls’ trousers,
6 620462 bib and brace overalls, 3616.2 79.4 2.2
breeches and shorts of cotton
Brassieres of all types of tex-
7 621210 tile materials, whether or not 1914.5 35.7 1.9
elasticated
Women’s or girls’ trousers,
bib and brace overalls,
8 610463 1698.5 2.9 0.2
breeches and shorts of syn-
thetic fibres
9 620520 Men’s or boys’ shirts of cotton 1557.1 158.2 10.2
Women’s or girls’ trousers,
10 610462 bib and brace overalls, 1461.4 37.2 2.5
breeches and shorts of cotton
Source:UN Comtrade,2021
The above table shows USA’s top 10 RMG products imported from world vis-à-vis from India
and India % share in those top 10 products. The top 10 products imported from world were
to the tune of USD 33069.7 mn. in 2020 and import from India of these top 10 products were
to the tune of USD 1023.8 mn. India has a % share of 3.1 % in USA’s top 10 products import
from world.
The top products imported by USA from world includes Jerseys, pullovers, cardigans, waist-
coats and similar articles, of cotton, Garments made up of felt or nonwovens, whether or not
impregnated, coated, covered or laminated, Jerseys, pullovers, cardigans, waistcoats and
similar articles, of man-made fibres, Men’s or boys’ trousers, bib and brace overalls, breeches
and shorts, of cotton and T-shirts, singlets and other vests of cotton.
22 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021APPAREL | FOCUS COUNTRY
USA’S TOP 10 RMG PRODUCTS IMPORT FROM INDIA
USA’s Top 10 RMG Products Import from India
USA’s Import from Equivalent ad
India, USD mn. % Share in valorem tariff
Product label
pS. Product 2020 applied by United
2020
No. code States of
RMG 3202.5 100 America,In %
Sum of Top 10 1769.3 55.2
Jerseys, pullovers, cardigans,
1 waistcoats and similar articles, 360.8 11.3
611020 of cotton 11
Babies’ garments and clothing
2 217.3 6.8
611120 accessories of cotton 14
T-shirts, singlets and other vests
3 207.6 6.5
610910 of cotton 17
Women’s or girls’ blouses, shirts
4 202.3 6.3
620630 and shirt-blouses of cotton 9
5 620520 Men’s or boys’ shirts of cotton 158.2 4.9 14
Women’s or girls’ dresses of
6 152.5 4.8
620442 cotton 9
7 610510 Men’s or boys’ shirts of cotton 137.6 4.3 20
Men’s or boys’ underpants and
8 127.6 4.0
610711 briefs of cotton 7
Women’s or girls’ blouses, shirts
9 and shirt-blouses of man-made 110.6 3.5
620640 fibres 14
Men’s or boys’ trousers, bib and
10 brace overalls, breeches and 95.0 3.0
620342 shorts, of cotton 9
Source: UN Comtrade, 2021
The above table shows USA’s top 10 RMG products imported from India. USA’s top 10 prod-
ucts imported from India were to the tune of USD 1769.3 mn with a % share of 55.3 % in
USA’s total RMG import from India.
The top products imported by USA from India includes Jerseys, pullovers, cardigans, waist-
coats and similar articles, of cotton, Babies’ garments and clothing accessories of cotton,
T-shirts, singlets and other vests of cotton, Women’s or girls’ blouses, shirts and shirt-blous-
es of cotton and Men’s or boys’ shirts of cotton.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021 / 23APPAREL | FOCUS COUNTRY
USA’S PPE IMPORT
USA’s PPE Import from World and India
Import from World, Import from India,
S. Product Product label % Share
2020, USD mn. 2020, USD mn.
No. code
PPE Kit 32115.7 154.5 0.5
Made-up articles of textile
1 630790 materials, incl. dress pat- 19649.5 118.2 0.6
terns, n.e.s.
Garments made up of felt
or nonwovens, whether or
2 621010 4661.6 25.3 0.5
not impregnated, coated,
covered or laminated
Made-up clothing accesso-
3 621710 ries, of all types of textile 191.1 2.2 1.1
materials, n.e.s.
Ties, bow ties, cravats and
4 611780 other made-up clothing 266.9 2.2 0.8
accessories
Gloves, mittens and mitts, of
5 401519 4201.5 2.1 0.1
vulcanised rubber
Women’s or girls’ garments
of textile fabrics, rubberised
6 621050 624.5 1.8 0.3
or impregnated, coated,
covered
Surgical gloves, of vul-
7 401511 canised rubber (excluding 426.3 1.5 0.3
fingerstalls)
Parts of garments or clothing
8 621790 accessories, of all types of 9.2 0.5 5.5
textile materials, n.e.s.
Breathing appliances and
9 902000 368.7 0.5 0.1
gas masks
Spectacles, goggles and the
10 900490 like, corrective, protective or 1028.9 0.1 0.0
other
Gloves, mittens and mitts,
11 611610 impregnated, coated or cov- 687.7 0.1 0.0
ered with plastics or rubber
Source:UN Comtrade, 2021
· USA’s PPE import from World in 2020 were to the tune of USD 32115.7 mn. Import
from India were to the tune of USD 154.5 mn. with a % share of 0.5%.
24 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021APPAREL | FOCUS COUNTRY
FOCUS APPAREL PRODUCTS FOR USA: MAN MADE FIBRES
Based on KPMG study commissioned by Indian Embassy, Washington and AEPC for US Market,
the Indian industry needs to focus on the following Top 10 HS codes(Accounting for ~48% of
Synthetics products imported in the US Market) to capture higher share of US Synthetics Fibres
Apparel Imports:
Value of US imports Value of US imports
HS Code Description - 2019 - 2020
% Change
(IN USD Bn.) (IN USD Bn.) (2020/2019)
Jerseys, pullovers, cardigans, waistcoats
and similar articles, of man-made fibres,
611030 6.5
knitted or crocheted (excluding wadded
waistcoats) 4.52 -30.4
Brassieres of all types of textile mate-
621210 rials, whether or not elasticated, incl. 2.21
knitted or crocheted 1.91 -13.4
Men’s or boys’ anoraks, windcheaters,
wind jackets and similar articles, of man-
620193 made fibres (not knitted or crocheted 1.73
and excluding suits, ensembles, jackets,
blazers, trousers and tops of ski suits) 1.20 -30.8
Women’s or girls’ trousers, bib and brace
overalls, breeches and shorts of synthetic
610463 1.7
fibres, knitted or crocheted (excluding
panties and swimwear) 1.70 -0.1
Men’s or boys’ trousers, bib and brace
overalls, breeches and shorts of synthetic
620343 1.63
fibres (excluding knitted or crocheted,
underpants and swimwear) 1.30 -20.4
Women’s or girls’ anoraks, windcheaters,
wind jackets and similar articles, of man-
620293 made fibres (not knitted or crocheted 1.55
and excluding suits, ensembles, jackets,
blazers, trousers and tops of ski suits) 1.03 -33.6
Full-length or knee-length stockings,
socks and other hosiery, incl. footwear
without applied soles, of synthetic fibres,
knitted or crocheted (excluding graduat-
611596 1.51
ed compression hosiery, pantyhose and
tights, women’s full-length or knee-length
stockings, measuring per single yarn <
67 decitex, and hosiery for babies) 1.34 -11.2
Women’s or girls’ blouses, shirts and
620640 shirt-blouses of man-made fibres (exclud- 1.32
ing knitted or crocheted and vests) 0.78 -40.7
Men’s or boys’ trousers, bib and brace
overalls, breeches and shorts of synthetic
610343 1.23
fibres, knitted or crocheted (excluding
swimwear and underpants) 1.02 -16.7
Women’s or girls’ dresses of synthetic
620443 fibres (excluding knitted or crocheted 1.22
and petticoats) 0.78 -36.5
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021 / 25APPAREL | COUNCIL AFFAIRS
APPAREL EXPORTERS
SEEK HELP FROM
GLOBAL MMF FABRIC
SUPPLIERS
I
ndian apparel exporters, aspiring to have “We are ready for a joint venture or technology
a slice of $200 billion global manmade fibre transfer or 100% investment. There are produc-
(MMF) garment trade, have sought help from tion facilities in India but do not have the latest
international MMF fabric suppliers to overcome technologies in processing. Even the government
the shortage of the fabric, in the short run, and has come out with good incentives like plans to set
also to improve the quality of local production of up seven mega textile parks and production linked
the fabric eventually. incentives (PLI) to promote MMF production.
Speaking at a webinar on ‘MMF Fabric Sourcing “AEPC will make all arrangements to facilitate
from International Suppliers’, hosted by Ap- any technology transfer, joint venture or direct
parel Export Promotion Council (AEPC) on 9 investment in the country,” Dr Sakthivel assured
April, AEPC Chairman Dr A Sakthivel said that the the international MMF fabric suppliers who ex-
country needs to import MMF fabric from interna- pressed their interest in knowing the details about
tional suppliers to increase MMF manufacturing the benefits offered by the Indian government and
in India. what AEPC could do to help them out.
“Initially we want to import fabric from you all India’s export of MMF garments constitute only
and we expect it at international price, so that 10% of its total apparel exports, which was about
we can manufacture MMF garments and export $16 billion in 2019-20. In the calendar year 2019,
out of India. Besides, we are also interested to India imported $442 million worth of MMF fabric.
have investment in fabric processing in India,” Dr AEPC, which sees future growth dependent on
Sakthivel said to the participating MMF suppliers success in the MMF segment, has been taking ini-
from China and Taiwan. tiatives to improve availability of MMF fabric.
The Chairman said that India has abundant Mr Vinit Neb, Director, TR Alliance Co Ltd, Tai-
production of yarn but is in short supply of good wan, said, “We are in every part of the value chain
quality MMF fabric as domestic producers lack the as this ensures efficiency and productivity. We do
latest processing technologies. knowledge management continuously – learn from
26 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021APPAREL | COUNCIL AFFAIRS old orders, new orders and new things that enter the market and enhance our offerings.” Ms May, Business Head, Wuyue Textile Group, China, said, “We are vertical supplier and ex- porter doing weaving, dyeing and printing. We sell a lot of quality, sustainable, fashionable and innovative fabrics to buyers all over the world. We look forward to hearing about the requirements of Indian manufacturers.” Mr Mukesh Sharma, Head (Sales), HAE FA Tex- tile Group, Taiwan, said, “We have manufacturing plants in three countries – Taiwan, China and Vietnam. All have their specialties in fabric like Taiwan is majorly for high end sportswear and functional fabrics. We are supplying to almost all major textile countries.” Mr Girish Shah, Director, Chang Zhou Miao Zhou Trading Co Ltd, China, said, “We are mostly in woven and high quality items. As we have our own factory, we can keep developing new things, doing all the blend items there. We are shipping 90% of our fabric to Bangladesh and 10% to India.” The fabric suppliers took the opportunity to showcase some of their best MMF fabrics, talked about their specialties, usage in different gar- ments and seasons, popularity in different mar- kets and how they supplied to the biggest brands in the world. The webinar had a huge attendance of apparel exporters. WEBINAR APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021 / 27
APPAREL | COUNCIL AFFAIRS
HON’BLE
TEXTILES
MINISTER
CALLS FOR
VACCINATION
OF APPAREL
SECTOR
WORKERS
AEPC REQUESTS 8,000 PLUS APPAREL EXPORTERS TO VACCINATE THEIR WORKERS
Acting on the instruction of Hon’ble Textiles Same day, the government clarified that CSR
Minister Smt Smriti Zubin Irani, Apparel funds will be allowed for setting up makeshift
Export Promotion Council (AEPC) on 26 April hospitals and temporary Covid care facilities.
asked its 8,000 plus member exporters to get
their workers and staff vaccinated soon. India has launched the biggest Covid-19
vaccination drive in which about 14 crore
“AEPC requests all its members to get their people have already been vaccinated. Further,
workers/ staff Covid-19 vaccinated at the from 1 May 2021, the third phase of India’s
earliest and also requests them to use their Covid-19 vaccination drive will begin allowing
CSR funds for setting up makeshift hospitals all citizens of 18 years of age and above to get
and temporary Covid Care facilities,” AEPC vaccines.
Chairman Dr A Sakthivel said.
“With an aim to support this initiative of the
The Chairman issued a circular making the Hon’ble Minister of Textiles and Government of
request based on a resolution passed in the India, AEPC has asked its member exporters
Council’s 267th Executive Committee meeting for carrying out vaccination of apparel sector
held on 23 April, a day after the Hon’ble workers,” Dr Sakthivel said, adding that the
Minister suggested AEPC to take the initiative industrial establishments would be able to
in support of India’s vaccination drive. procure vaccine doses from the manufacturers.
In a virtual meeting with Dr Sakthivel on 22 The industries are mandated to follow
April, Hon’ble Textiles Minister said that all all protocols such as being captured on
the workers and staff working in the apparel CoWIN platform, linked to AEFI (Adverse
factories should get vaccinated at the earliest. Event Following Immunization) reporting
28 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021APPAREL | COUNCIL AFFAIRS
end-to-end approach, proactively building
capacity across R&D, Manufacturing and
Administration since April 2020. While pushing
for scale and speed, it has simultaneously
been anchored in the stability necessary
to sustainably execute the World’s Largest
Vaccination Drive.
and all other prescribed norms, as per the In its Phase-III, the National Vaccine Strategy
government’s guidelines on the Phase-III aims at liberalised vaccine pricing and scaling
strategy of the National Covid-19 vaccination up of vaccine coverage. This would augment
program. vaccine production as well as availability,
incentivising vaccine manufacturers to rapidly
The industries have been instructed to ramp up their production as well as attract
coordinate with their respective state health new vaccine manufacturers, domestic and
departments for carrying out the vaccinations international. It would also make pricing,
at their factory premises. procurement, eligibility and administration
of vaccines open and flexible, allowing all
India’s National Covid-19 Vaccination Strategy stakeholders the flexibility to customise to
has been built on a systematic and strategic local needs and dynamics.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021 / 29APPAREL | COUNCIL AFFAIRS
AEPC APPEALS FOR
UNINTERRUPTED
MANUFACTURING AT
FACTORIES
WANTS ESSENTIAL SERVICE SECTOR TAG FOR APPAREL
EXPORT INDUSTRY
WILLING TO FOLLOW STRICTER SAFETY MEASURES TO
PREVENT INFECTION
SAYS LOCKDOWNS WILL WASTE YEAR-LONG EFFORTS
TO REVIVE INDUSTRY
some states including Tamil Nadu.
“The industry, which supports over 13 million work-
ers directly and many more indirectly, in rural and
backward areas and largely comprises MSMEs, will be
severely impacted by the disruption, if the lockdown is
again imposed in the factories,” AEPC Chairman Dr A
Sakthivel wrote in his letters to the government.
“Being one of the most labour intensive industries,
while we are concerned about the health and safety of
the workers, we are also concerned about their live-
lihoods,” he said while thanking the government for
undertaking one of the largest vaccination drives in the
world for protecting the people of the country.
All factories have been taking stringent measures and
following strict health protocols, as per the MHA guide-
lines and other advisories. The regular tests and check-
ups are also being done, he said. The apparel exporters
are willing to follow even more strict safety measures
but would want to avoid even partial lockdowns.
“It is requested that the work at the factories are not
C
oncerned over possible imposition of lockdowns disrupted by lockdown and we also request for exempt-
due to a resurgence in coronavirus infections, Ap- ing the apparel export industry as an essential service
parel Export Promotion Council (AEPC) on 12 sector,” the Chairman said, adding that such lockdowns
April urged the government to keep factories free from create widespread disruption and impact not just in the
lockdowns and requested for essential service sector short term but also the long term health of the industry.
tag for the labour-intensive apparel export industry.
Dr Sakthivel said that the apparel export industry
For ensuring uninterrupted manufacturing at factories, recently got back on track, migrant labourers were
the Council has written letters to Hon’ble Home Minister back, orders have started stabilizing and exports are
Shri Amit Shah, Hon’ble Health Minister Shri Harsh looking up. “The lockdown, at this point, will disrupt
Vardhan, Hon’ble Textiles Minister Smt Smriti Zubin the last one year of hard work put in by the industry
Irani, Hon’ble Commerce and Industry Minister Shri in getting back on the global map and on the survival
Piyush Goyal, their Secretaries, and Chief Ministers of path,” he said.
30 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021APPAREL | COUNCIL AFFAIRS
HON’BLE TEXTILES
MINISTER CAUTIONS MILL
ASSOCIATIONS ON YARN
PRICES
H
on’ble Textiles Minister Smt
Smriti Zubin Irani cautioned
mill associations saying that
the Cotton Corporation of India
(CCI) will blacklist the mills which
are hoarding and inflating the prices
of cotton yarn. She also requested
Textiles Secretary Shri Upendra
Prasad Singh to immediately take
it up with CCI for taking required
penal action. AEPC Chairman Dr A
Sakthivel along with EC members
Mr Gautam Nair and Mr Premal
Udani raised the issue of continu-
ing fluctuations in the prices and
availability of cotton yarn in a video
conference with the Hon’ble Minis-
ter on 22 April 2021.
MEETING ON AVAILABILITY
OF PPE KITS
H
on’ble Textiles Minis-
ter Smt Smriti Zubin
Irani called a meeting on
availability status of Personal
Protective Equipment (PPE) kits
and masks on 22 April 2021 with
AEPC Chairman Dr A Sakthivel
and representatives of other in-
dustry associations. The review
meeting was done in the wake
of the second wave of Covid-19
pandemic. She asked the indus-
try to fulfil the demand of PPE
kits and masks of the country.
Earlier on 21 April 2021, Dr A
Sakthivel had a meeting with
Shri Nihar Ranjan Dash, Joint
Secretary in Ministry of Textiles,
on the issue where the status
had been submitted.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021 / 31APPAREL | COUNCIL AFFAIRS
FULL SUPPORT TO
EXPORTERS, AIM FOR $400
BN MERCHANDISE EXPORTS:
COMMERCE MINISTER
H
on’ble Minister of Com- Lauding the performance and of readymade garments (RMG) and
merce and Industry Shri resilience of exporters, he said that complimenting the government for
Piyush Goyal, in a meeting exporters have done the nation the first India-EU high level dialogue
with Export Promotion proud in such difficult times. During on trade and investment, raised
Councils (EPCs) on 20 April 2021, 2020-21, India’s value of overall some concerns of the sector and
said that the government will extend exports declined by just 7 per cent proposed specific suggestions.
all kinds of support to the exporters compared to previous year, despite
and that they should aim to achieve disruptions, uncertainty, lockdowns, Dr Sakthivel requested early
$400 billion merchandise exports in supply chain difficulties, labour announcement of RoDTEP rates,
the current financial year. issues, and order cancellations. continuation of RoSCTL rates till
announcement of RoDTEP rates,
“The government will go all out to “Under the circumstances, the extension of Interest Equalisation
support the exporters. Many of their performance of the sector was really Scheme on Pre and Post Shipment
issues, falling within the ambit of superlative. Trade data for March Rupee Export Credit for a period
the Ministry, would be resolved in 2021 reflects build-up of a strong up to 31 March 2022, extension of
a time-bound manner. Most of the recovery in exports, as merchan- 5% IES available to MSMEs to all
sectors have larger export potential, dise exports in March 2021 grew by apparel exporters, and allowing self
which need to be identified and har- 60.29% as compared to March 2020,” declaration where SION does not
nessed. I call upon the exporters to he said. exist for apparel products.
strive to attain ambitious growth of
more than 25 per cent to reach $400 Apparel Export Promotion Council
billion merchandise exports during (AEPC) Chairman Dr A Sakthivel,
current year,” Shri Goyal said. while sharing the export scenario
32 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | MAY 2021You can also read
