STRONG GROWTH POTENTIAL FOR MMF APPAREL EXPORTS - Apparel Export Promotion Council
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YR 21 ISSUE 06
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE I JUNE 2021 100
STRONG GROWTH POTENTIAL
FOR MMF APPAREL EXPORTS
OUNTRY
FOCUS C
FRANCE
India-US collaborations apprising commerce tamil nadu Cm at
in MMF sector minister of apparel vaccination camp
sector concerns
APPAREL | CHAIRMAN’S MESSAGE
Dear Friends,
A
s the devastating second wave of pandemic re-
cedes, I am hopeful that most states would soon
lift the lockdowns and help restart economic ac-
tivities for us to cater to the strong upturn in global de-
mand, already visible in trade figures.
India’s trade performance remained impressive in April
2021 with merchandise exports rising 196% over April
2020 and 18% over the pre-pandemic levels in April 2019.
RBI Governor has said the rebound in global trade will
support India’s export sector.
We have requested Hon’ble Prime Minister Shri
Narendra Modi to consider apparel exports as ‘essential
services’ for their perishable nature and exempt exporting
units from lockdowns. We have also written to Chief Back home, we have requested Hon’ble Finance
Ministers of several states. DGFT has taken up the matter Minister Smt Nirmala Sitharaman and RBI Governor
of declaring exports as ‘essential services’ with MHA. Shri Shaktikanta Das for providing more flexibility to the
AEPC held a video conference meeting with global apparel sector in line with what is being provided to some
buying houses and associations to convince them that sectors under ECLGS 3.0 and 4.0. We thank her and the
India will bounce back by mid-June and that export Governor for the timely measures towards helping the
orders need not shift to competing countries. They are MSME sector.
quite compassionate towards helping India. As responsible partners in the smooth functioning
We apprised Hon’ble Commerce and Industry Minister of the country, the apparel exporters have followed the
Shri Piyush Goyal about the concerns facing the apparel strictest Covid-19 protocols in their factories. We helped
exporting sector in a virtual meeting called by the Hon’ble Tamil Nadu government organize Covid-19 vaccination
Minister with Export Promotion Councils to discuss camp in Tirupur for garment workers.
international trade. I am happy to announce the beginning of a special
To make the best of the global supply chain shifting section in the magazine – Diplomatic Corner, where
away from China, Indian apparel sector has to aim high you get to meet our diplomats posted overseas. India’s
in the manmade fibre (MMF) segment. With government ambassador to Spain Mr Sanjay Verma talks on how to
support and our effort, we can aim to capture $20 billion grab a bigger share of the Spanish market.
MMF trade. Sharing what Roman philosopher Seneca once
A complete analysis of the sector – where we are, what said: “Luck is what happens when preparation meets
is the opportunity and how to go about achieving it – is opportunity”, I wish everybody good times ahead.
detailed in the Cover Story of this edition. On ground, we Looking forward to hearing your suggestions, kindly
hosted a webinar with Rhode Island Textile Innovation write to us at chairman@aepcindia.com.
Network to help apparel companies gain expertise in
production of MMF fabrics. We have requested Consul
General, New York, for an MoU with Rhode Island
University to learn about textile research and innovation
Dr A Sakthivel
in MMF fabrics and processing. Chairman, AEPC
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021 /1
APPAREL | EVENTS CALENDAR
EVENTS
28-30
CALENDAR
9-10
Jun 2021 Sep 2021
INDIA TEX PURE LONDON
TREND FAIR (ITTF) TOKYO, JAPAN (PURE ORIGIN)
8-11 Sep 2021
Aug 2021
SOURCING AT MAGIC FAIR, WHO’S NEXT,
USA PARIS, FRANCE
23-25 Nov 2021
Aug2021
APPAREL TEXTILE SOURCING, AUSTRALIA
CANADA INTERNATIONAL SOURCING FAIR
2 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021
APPAREL | CONTENTS
YR 21 | ISSUE 06 | JUNE 2021 | Pages 60
YR 21 ISSUE 06
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE I JUNE 2021 100
STRONG GROWTH POTENTIAL
FOR MMF APPAREL EXPORTS
01|CHAIRMAN’S MESSAGE
32 | DIPLOMATIC CORNER
• Indian apparels need to work on
02 | EVENTS CALENDAR innovation, price and delivery: India’s
ambassador to Spain Mr Sanjay Verma
04 | KEY STATISTICS 34 | INDIA NEWS
• RMG exports grow 927% in
FOCUS CO
UNTRY
April 2021 • 51st IHGF of Delhi Fair 2021 Opens Virtually
FRANCE • Textile manufacturing grows 16.5% • Highest ever FDI inflow of $81 billion during
in March 2021 2020-21
India-US collaborations apprising commerce tamil nadu Cm at • DGFT’s COVID-19 Helpdesk resolving trade
minister of apparel
in MMF sector vaccination camp
issues
06 | UPFRONT
sector concerns
• Allen Solly launches its first store in
• Government announces relief Thirupattur
measures for industry • Van Heusen launches new sub-brand ‘Denim
Labs’
CHAIRMAN AEPC 08 | COVER STORY
Dr A Sakthivel • Strong growth potential for MMF 38 | GLOBAL NEWS
apparel exports
CHAIRMAN EP • Global e-commerce jumps to $26.7 trillion
Mr Sudhir Sekhri • Gap Inc plans to sell Intermix
Secretary General, AEPC
14 | SPECIAL FEATURE • Hermes transforms its China World store
Dr LB Singhal • India’s trade performance remains • Winnie Harlow goes Luxe with Puma
impressive in April • German ambassador pays visit to BGMEA
ADVISOR AEPC • New Balance, Brine for National Cup
Mrs Chandrima Chatterjee
16 | FOCUS COUNTRY Lacrosse
PUBLISHER • France remains world’s fashion • LVMH initiatives to support sustainable
Apparel Export Promotion Council capital growth
Apparel House, Sector-44, • Hubert, Arne appointed in Puma’s board
Institutional Area, Gurugram, • Under Armour reports strong topline growth
HARYANA – 122003. 24 | COUNCIL AFFAIRS • Puma ties up with Breanna Stewart ‘Stewie’
Phone: 0124-2708000 • India-US collaborations in MMF • Calvin Klein launches Heron Preston for CK
www.aepcindia.com sector on anvil • The Life and Death of a Garment
• Consider perishable apparel exports
as essential services: AEPC
• AEPC helps Tamil Nadu in
46 | GST UPDATE
combating Covid-19 pandemic
• AEPC apprises Commerce Minister 50 | NOTIFICATIONS
Content & Design of sector concerns
Vanman Communications Pvt Ltd • RBI’s focus on health, MSMEs
Email: vanmancommunications@gmail.com is best prescription: AEPC 54 | CIRCULAR
Chairman
Printing Press • AEPC appeals to Finance Minister,
Royal Press, New Delhi RBI for changes in ECLGS 60 | MEDIA COVERAGE
Email: royalpress2014@gmail.com
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021 /3
APPAREL | KEY STATISTICS
RMG EXPORTS GROW
927% IN APRIL 2021
India’s Ready Made Garment (RMG)
Export Update for April 2021-22
RMG exports were to the tune of USD 1297.31 million in April, 2021 showing a positive growth of
927.08 per cent against the corresponding month of April, 2020 and decline of -7.91 percent against April,
2019.
In rupee terms, RMG exports were to the tune of INR 9661.36 crore in April, 2021 showing a positive
growth of 903.34 per cent against the corresponding month of April, 2020 and decline of -1.3 percent against
April, 2019.
India’s RMG Export to World
(In US$ Mn.) MoM Growth (%)
2019-20 2020-21 2021-22 2021-22
Month
2019-20 2020-21 2021-22 Over Over Over Over
2018-19 2019-20 2019-20 2020-21
April 1408.77 126.31 1297.31 4.2 -91 -7.91 927.08
May 1530.06 517.02 14.2 -66.21
June 1233.52 804.29 -9.2 -34.8
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 12286.65 -4.0 -20.78
Source: DGCI&S, Kolkata, 2021
For more details on India’s RMG Export data, please visit AEPC’s Website>Resource Section>Export Statistics.
4 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021
APPAREL | KEY STATISTICS
TEXTILE MANUFACTURING
GROWS 16.5% IN MARCH 2021
India’s Textile & Ready Made Garment (RMG)
Update for Index for Industrial Production (IIP)
for March 2020-21
MoM MoM
Manufacture of
Manufacture of Growth Growth
Wearing Appar-
Textiles Rate Rate
el
(In %) (In %)
2020-
2020- 2019- 2020-
Month 2019-20 2020-21 21/2019-
21/2019-20 20 21
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*
March 100.3 116.8* 16.5* 115.6 144.7* 25.2*
Total (Apr-Mar) 115.7* 90.7* -21.6* 154.6* 108.6* -29.8*
Source: CSO, 2020
* Figures for March 2021 are Quick Estimates.
Manufacturing of Textiles for the month of March, Manufacturing of Wearing Apparel for the month
2021 is 116.8 which has shown a positive growth of of March, 2021 is 144.7 which has shown a positive
16.5% as compared to March, 2020. growth of 25.2% as compared to March, 2020.
Manufacturing of Textiles for the financial Manufacturing of Wearing Apparel for the
year Apr-March, 2020-21 is 90.7 which has shown financial year Apr-March, 2020-21 is 108.0 which
a decline of 21.6% as compared to the financial year has shown a decline of 29.8% as compared to the
Apr-March, 2019-20. financial year Apr-March, 2019-20.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021 /5
w
APPAREL | UPFRONT
GOVERNMENT ANNOUNCES
RELIEF MEASURES FOR
INDUSTRY
A
s severe pandemic brings economic activity near 3. Due dates of filing GSTR-1, IFF, GSTR-4 and ITC-04
to a halt and businesses falter, the government has have been extended.
come out with a series of relief measures both on
its own and as per representations made by industry in 4. Amendments in CGST rules: Relaxation in availment
terms of taxes, compliances and credit schemes. of ITC, enabling filing of GSTR-3B and GSTR-1/ IFF by
companies using electronic verification code, reduction
In view of the challenges faced by taxpayers in meeting in late fees and extension in statutory time limits under
the statutory and regulatory compliances under GST section 168A of the CGST Act.
law due to the outbreak of the second wave of Covid-19
pandemic, the government has provided following relief
measures:
INCOME TAX
The government further extended certain timelines for
compliances under the Income-tax Act, 1961, to address
GOODS AND SERVICES TAX (GST) the hardship being faced by various stakeholders, the
1. Reduction in rate of interest: For tax periods of Ministry of Finance said in one of its various statements
March, April and May 2021, a person who has aggre- announcing the relief measures.
gate turnover above Rs 5 crore will give a lower rate of
interest at 9% for the first 15 days from the due date of 1. Last date for furnishing the Statement of Financial
payment of tax and 18% thereafter. For turnover up to Transactions (SFT) for fiscal 2020-21 has been extended
Rs 5 crore, there will be nil interest rate for the first 15 till 30 June 2021.
days, 9% for the next 45 days for tax period March, 30
days for April and 15 days for May, and 18% thereafter. 2. Last date of furnishing the Statement of Reportable
Account for calendar year 2020 has been extended till
2. Waiver of late fee: For returns in Form GSTR-3B, 30 June 2021.
late fee has been waived off for 15 days for registered
persons with aggregate turnover above Rs 5 crore, and 3. Furnishing the Statement of Deduction of Tax for the
for those with aggregate turnover up to Rs 5 crore late last quarter of FY 2020-21 can be done till 30 June 2021.
fee is waived for 60 days for tax period March, 45 days
for April and 30 days for May 2021.
6 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021
APPAREL | UPFRONT
4. Certificate of Tax Deducted at Source in eligibility under ECLGS 3.0 is removed subject to max-
Form No 16 may be furnished to employees on or before imum additional ECLGS assistance to each borrower
15 July, instead of 15 June 2021. being limited to 40% or Rs 200 crore, whichever is lower.
5. Last date of furnishing TDS/ TCS Book Adjustment 5. Civil aviation sector to be eligible under ECLGS 3.0.
Statement in Form No 24G for May 2021 is extended till
30 June 2021. 6. Validity of ECLGS extended to 30 September 2021 or
till the issuance of guarantees for an amount of Rs 3
6. The due date of furnishing Return of Income for As- lakh crore. Disbursement permitted up to 31 December
sessment Year 2021-22 has been extended from 31 July 2021.
2021 to 30 September 2021.
EMPLOYEES’ STATE INSURANCE
Other relaxations include extension of due dates in CORPORATION (ESIC)
relation to tax deduction from contributions paid by the
trustees, income paid by an investment fund to its unit Insured Persons under the ESIC scheme, who fulfill the
holder, audit report for previous year, among others. eligibility conditions and have died due to Covid-19 dis-
ease, their dependents will be entitled to receive month-
EMERGENCY CREDIT LINE ly payment @90% of average daily wages of the insured
GUARANTEE SCHEME (ECLGS) person during their life. The scheme will be effective for
The government further enlarged the scope of ECLGS a period of two years from 24 March 2020.
to provide additional support to MSMEs, safeguard
livelihoods and help in resumption of business activities. EDLI SCHEME OF EMPLOYEES’
“These changes will further facilitate flow of institu- PROVIDENT FUND
tional credit at reasonable terms,” said the Ministry of
Finance in its statement on 30 May 2021.
ORGANISATION (EPFO)
Under the Employees’ Deposit Linked Insurance
1. ECLGS 4.0 ensures 100% guarantee cover to loans up
(EDLI) scheme of EPFO, all surviving dependent family
to Rs 2 crore to hospitals/ nursing homes/ clinics/ med-
members of the members of this scheme are eligible to
ical colleges for setting up on-site oxygen generation
avail benefits of EDLI in case of death in harness of the
plants with interest rate capped at 7.5%.
member.
2. Borrowers who are eligible for restructuring as per
a. Amount of maximum benefit has been increased
RBI guidelines of 5 May 2021 and had availed loans
from Rs 6 lakhs to Rs 7 lakhs to the family members of
under ECLGS 1.0 of overall tenure of four years will now
deceased employee.
be able to avail a tenure of five years for their ECLGS
loan with repayment of interest only for the first 24
b. Minimum assurance benefit of Rs 2.5 lakh to eligible
months instead of first 12 months.
family members of deceased employees who was a mem-
ber for a continuous period of 12 months in one or more
3. Additional ECLGS assistance of up to 10% of the out-
establishments preceding his death.
standing as on 29 February 2020 to borrowers covered
under ECLGS 1.0.
c. Restoration of provision of minimum Rs 2.5 lakh com-
pensation retrospectively, i.e., from 15 February 2020.
4. Current ceiling of Rs 500 crore of loan outstanding for
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021 /7
APPAREL | COVER STORY STRONG GROWTH POTENTIAL FOR MMF APPAREL EXPORTS Indian apparel sector, which is pre-dominantly cotton-based, can aspire to multiply its MMF apparel exports by more than 12 times to about $20 billion with some hard work, say experts. 8 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021
APPAREL | COVER STORY
I
ndian apparel industry has long been stuck with natural fibres such as cotton
while the world has moved on to manmade fibres like synthetic to cater to the
fast rising demand for apparels and also to benefit from the wider application
that MMF offers.
MMF dominates the global textile fibre consumption with 72:28 ratio as
against natural fibres. While in India, the ratio of fibre consumption is 40:60 be-
tween MMF and natural fibres. Besides, MMF apparels account for only 10% of Indian
apparel exports.
From the current share of $1.6 billion in the $200 billion global MMF apparel trade,
a measly 0.8%, the Indian MMF sector can aspire to garner 10% of this market, as per
industry experts. We are talking about an annual export opportunity of $20 billion.
However, as the saying goes that there is no shortcut to success, both government
and industry will have to work really hard and complement each other’s initiatives to
make Indian apparel sector grab a sizeable chunk of the global MMF apparel trade.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021 /9APPAREL | COVER STORY Natural vs Manmade Fibres Unlike natural fibres such as cotton, silk and wool, manmade fibres like synthetic and regenerated fibres are made by using chemicals and other products. Regenerat- ed or cellulosic fibres are made from cellulose polymers found naturally in plants like cotton, wood, hemp and flax. Synthetic fibres like nylon, acrylics and polypropyl- ene are made from polymers found in natural gas and by-products of petroleum. Cotton production takes at least nine months from sowing of seeds to harvesting of produce and thanks to climate change, changing monsoon patterns are severely impacting its production. Its supply too is an issue, which is hindering buyers to choose MMF over natural fibres. Natural fibres cannot meet the fast growing demand of changing fashion and clothing behaviour of human beings, and use of textile in varied sectors like defence, healthcare, construction and automobiles. MMF produc- tion is way ahead of natural fibres and they are equally good in quality and much superior in application in different sectors. 10 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021
APPAREL | COVER STORY
GLOBAL SCENARIO
Indian Ministry of Textiles, on its website, says demand
for manmade fibre textiles all over the world is increas-
ing as a substitute for cotton amid changes in global
fashion trends. Global fibre consumption is in 72:28
ratio between MMF and natural fibre.
The share of MMF has been steadily increasing due
to the inherent limitations of growth of cotton and other
natural fibres. According to certain estimates, demand
for MMF fibre is projected to increase by over 4% where-
as end-use demand for cotton is projected to increase
by less than one per cent. This will raise the share of
MMF in global end-use demand to 73% and decrease
the share of cotton to about 26%. The Ministry said that
most of the overall growth will take place in developing
countries in Asia.
A ministry paper has stated that global end-use
demand for textile fibres is forecast to expand by an
average of 2.8% per annum between 2015 and 2025,
from 90.10 million tons to 119.20 million tons, and global
end-use demand for MMF fibres is expected to increase
by 3.7%.
According to a 2019 report of nrinews24x7.com, India
produces over 1,441 million kg of manmade fibres and
over 3,000 million kg of manmade filaments. Over 23,000
million square meters of fabrics were produced from
MMF and their blends.
SITUATION IN INDIA
The best part with Indian industry is that it immediate-
ly picks up global trends and start working on it. To a
certain extent they get success, but because of lack of
investments and interest in doing research and develop-
ment (R&D) in the sector, domestic players lag behind
their global competitors.
The domestic MMF industry is vibrant and growing at
a fast pace, but it has a vast space to cover. Today, India
manufactures almost all the types of MMF, be it polyes-
ter, viscose, nylon or acrylic. According to the Textiles
Ministry, India is currently the second largest producer
of both polyester and viscose globally.
As per government data, India’s export of MMF-based
apparel is only 10 per cent of its total apparel exports.
It is only $1.6 billion, whereas the world trade is more
than $200 billion. Indian MMF products account for
20 per cent of the total textile and clothing outbound
shipments, whereas in China and other textile exporting
countries, it is 80 per cent. However, there is a huge
potential for the sector in India.
Going by the Apparel Export Promotion Council
(AEPC), there is a massive potential to increase exports
of MMF based garments and the industry needs to work
with the government to push these shipments. AEPC
Chairman Dr A Sakthivel once said, “When we start-
ed exploring how to increase exports, we found that
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021 / 11APPAREL | COVER STORY
export of MMF garments is only 10 per cent of our total sector. Entrepreneurship is there, but needs proper
exports. It is hardly $1.6 billion whereas the world trade mentorship.
is about $200 billion.” The other issues which are hampering the growth
According to a PTI report, Mr Ronak Rughani, of the sector are import duty on raw materials and
Chairman, The Synthetic and Rayon Textiles Export anti-dumping duty on chemicals used in the sector.
Promotion Council (SRTEPC), has stated that while Unhealthy competition between natural fibre and MMF,
cotton was the primary fibre for universal usage, MMF lack of modern technology, low investments in R&D and
has surpassed cotton as the dominant fibre since the strong lobbying for the cotton sector that enjoys political
mid-1990s and has continued to grow faster thereafter patronage, too, are hurting the growth of the sector.
as compared to all other fibres. The domestic fibre
consumption ratio in India at present is 40:60 between OPPORTUNITIES
MMF and natural fibres, which is almost opposite to the For growth potential in MMF segment, sky’s the limit.
global fibre consumption trend. Apart from the wide varieties of apparels that have be-
come possible with MMF and the huge export opportuni-
HURDLES ty that it offers, the fibre is also being used in car belts,
For any sector to become sustainable, it must have a tyre cords, space suits, medical clothing, and construc-
proper supply chain for availability of raw materials, tion activities.
R&D, design, colour, modern machines, skilled man- According to Chief of Defence Staff General Bipin
power and finally production of garments. India lacks Rawat, the technical textiles industry should look at
investment in world-class manufacturing plants, innova- developing clothes that can help soldiers sustain in
tion, new product mix and strategic expansion in MMF extreme cold and hot conditions. “We have a huge
12 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021APPAREL | COVER STORY
stake in techno-textiles. We are large users of textiles INITIATIVES BY INDUSTRY
that use technology. We are hopeful that techno-textile The government can create an enabling environment
entrepreneurs and those already in the field, will help for the growth of the sector, but finally it is the indus-
us in the kind of textiles that we are looking at,” a media try which has to take the steps and walk the path. The
report said quoting Rawat. Industry can also look for industry has to take advantage of these schemes and
clothing for defence personnel that can help differen- request for further reforms as per the needs.
tiate between friends from foes, textile that can repel AEPC has taken a strong leadership role to promote
insects and mosquitoes. MMF sector in the country and has been in dialogue
“MMF globally is a $200 billion opportunity. If we with key stakeholders including the government, domes-
come together as a country and create a supply chain tic and foreign fabric suppliers, buying houses, inter-
that starts with design, product development, fabric national technical institutes for collaborations in R&D,
development, and, of course, garmenting, we can target global players in the sector for inward investment and
10% of the $200 billion,” said Sanjay Shukla from buying technology transfers, and has also been hosting series
house Triburg Apparel at a recent virtual B2B meeting of webinars to discuss various issues of the MMF sector.
between MMF garment exporters, buying houses and According to the Textiles Ministry, India’s per capita
fabric suppliers organized by AEPC. fibre consumption is 5.5 kg per capita of which MMF
consumption per capita is 3.1 kg only which is among
INITIATIVES BY GOVERNMENT the lowest as compared to the global per capita MMF
The government last year announced Rs 10,683 crore consumption. Hence, there is ample scope for increasing
Production Linked Incentive (PLI) scheme for MMF sec- MMF per capita fiber consumption in India. Industry
tor and technical textiles. It is also working on a textiles needs to see these figures and work accordingly.
policy, which is expected to cover the MMF sector as a
key area. Further, the government has announced the WAY FORWARD
MITRA (Mega Integrated Textile Region and Apparel The most important area where industry has to work is
Parks) scheme aiming to attract large investments of Rs R&D of new fabric and design. The attitude of importing
10,000 crore and generate 1,50,000 jobs. goods and just assembling in India would not work in
However, the government needs to work in close coor- the long run. They have to create a supply chain or be-
dination with the industry so that the private sector can come part of the global supply chain in the MMF sector.
avail the benefits under these schemes easily. Availabili- Participating and organizing global fairs and exhibitions
ty of easy and affordable credit to the industry is also an for the sector are needed to remove the perception that
issue which needs attention of the government as huge India is only for cotton based garments.
investments are required for the promotion of the sector. Mentoring startups and budding entrepreneurs who
The sector requires tax benefits, particularly for have the ability and fire to innovate, make groups and
R&D purposes, and the removal of anti-dumping duties invest big to set up world class manufacturing facilities
is critical for availability of affordable raw materials. where about a lakh workers use their skills under one
Besides, the government needs to encourage startups roof. This would help in catering to the demands of big
in the sector. The proposed Foreign Trade Policy should multinational firms. Focus on branding, marketing,
also have some provisions separately for promotion of packaging and publicity at all levels is needed. At last,
MMF exports. Business environment needs continuous innovate, innovate and innovate is the key word.
improvement to attract foreign players in the sector.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021 / 13APPAREL | SPECIAL FEATURE
INDIA’S TRADE
PERFORMANCE REMAINS
IMPRESSIVE IN APRIL
Economic recovery visible as imports register growth over pre-pandemic levels
I
ndia’s export performance continues to be im- import growth of 167 per cent and about 8 per cent in
pressive in April 2021 with merchandise exports April 2021 over same period of 2020-21 and 2019-20,
accelerating by an impressive 196 per cent over respectively, the Ministry said in its statement.
April 2020 levels and 18 per cent over the April
2019 levels, as per the Ministry of Commerce and Service exports estimated for April 2021 is $21.17
Industry. billion, registering a positive growth of 29 percent
Merchandise exports, excluding petroleum, oil and vis-à-vis April 2020. The estimated value of services
lubricant (POL) and gems & jewelry, have increased import for April 2021 is $13 billion, registering a pos-
by 160 per cent in April 2021 over the same period itive growth of 40 per cent vis-à-vis April 2020. The
of 2020-21 and by 20 per cent over same period of estimated value of net of services export for April
2019-20. 2021 is $8.17 billion, registering a positive growth of
The economic recovery is also visible in the rising 14.28 per cent vis-à-vis April 2020.
14 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021APPAREL | SPECIAL FEATURE
COMMODITY WISE GROWTH/ FALL IN
TRADE
The commodities which have recorded positive export
growth during April 2021 vis-à-vis April 2020 are gems &
jewelry (9,271%), jute manufacturing including floor cov-
ering (1,685%), carpet (1,353%), handicrafts excluding
handmade carpet (1,275%), leather & leather products
(1,201%), RMG of all textiles (927%), cotton yarn/ fab- Cereal preparations and miscellaneous processed items,
rics/ made-ups, handloom products etc. (618%), man- other cereals and oil meals exports have been consis-
made yarn/ fabrics/ made-ups etc. (587%), other cereals tently growing since June 2020. Jute manufacturing
(451%), and ceramic products & glassware (444%). including floor covering and carpet exports have been
Other items showing high growth include electronic consistently growing since July 2020.
goods (373%), oil meals (279%), cashew (260%), mica, Handicrafts, excluding handmade carpet, cotton yarn/
coal and other ores, minerals including processed fabrics/ made-ups, handloom products etc., ceramic
minerals (241%), engineering goods (238%), petroleum products and glassware, spices and ‘others’ categories
products (192%), tobacco (187%), cereal preparations exports are growing consistently since September 2020.
and miscellaneous processed items (175%), iron ore Mica, coal and other ores, minerals including processed
(172%), oil seeds (169%), meat, dairy & poultry products minerals export is consistently growing since October
(149%), tea (146%), marine products (108%), spices 2020, the Ministry of Commerce and Industry said.
(98%), coffee (75%), organic and inorganic chemicals Sectors such as leather and leather products, man-
(69%), rice (62%), plastic & linoleum (52%), fruits & veg- made yarn/ fabrics/ made-ups etc., and marine products
etables (25%), and drugs & pharmaceuticals (23%). which had been exhibiting negative growth during the
The commodities that accounted for largest year-on- pandemic (2020-2021) have picked up from March 2021
year import growth in April 2021 are gold (2,14,906%), onwards.
pearls, precious and semi-precious stones (1,17,023%),
sulphur and unroasted iron pyrites (1,489%) and TRADE BALANCE
electronic goods (207%). Only three commodity groups Merchandise: The trade deficit for April 2021 was esti-
of import have shown a fall in April 2021 vis-à-vis April mated at $15.10 billion as against the deficit of $6.76 bil-
2020. These are silver (-89%), newsprint (-46%), and lion in April 2020, which is an increase of 123 per cent.
pulses (-42%). Services: As per RBI’s press release dated 14 May
2021, the trade balance in services (i.e. net services
COMMODITIES SHOWING CONSISTENT export) for March 2021 is $7.91 billion. The estimated
GROWTH TRENDS trade balance in April 2021 is $8.17 billion.
Exports of iron ore and drugs & pharmaceuticals have Overall trade balance: Taking merchandise and
consistently risen throughout 2020-2021 and April 2021. services together, overall trade deficit for April 2021 is
Rice export has been consistently growing during 2020- estimated at $6.93 billion as compared to the surplus of
2021 and April 2021 except for the month of April 2020. $0.38 billion in April 2020.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021 / 15APPAREL | FOCUS COUNTRY 16 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021
APPAREL | FOCUS COUNTRY
FRANCE REMAINS WORLD’S
FASHION CAPITAL
The recent economic downturn in France could do little to its fashion and apparel
industry, which remains one of the largest in the EU. It still imported more than $21 billion
RMG in 2020. The French economy may see a rebound with the easing of restrictions
and continued vaccinations.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021 / 17APPAREL | FOCUS COUNTRY
ECONOMIC INDICATORS-
INDICATORS VALUE
Real GDP (Purchasing Power Parity), 2019
$3,097,061,000,000
est.
GDP (official exchange rate), 2019 est. $2,715,574,000,000
Real GDP (Per Capita), 2019 est. $46,184
Real GDP Growth Rate,2019 est. 1.49%
Inflation Rate, 2019 est. 1.1%
Exchange Rate-euros (EUR) per US dollar,
0.82771
2020 est.
machinery, chemicals, automobiles, metallurgy, aircraft,
Industries
electronics; textiles, food processing; tourism
Source: The World Factbook-CIA
LOCATION-
France is located on the western edge of Europe, bordered by the Bay of Biscay (North Atlantic Ocean) in
the west, by the English Channel in the northwest, and by the North Sea in the north
(Source: nationsonline.org)
CLIMATE-
metropolitan France: generally cool winters and mild summers, but mild winters and hot summers along
the Mediterranean; occasional strong, cold, dry, north-to-northwesterly wind known as the mistral
AGE STRUCTURE-
0-14 years: 18.36% (male 6,368,767/female 6,085,318)
15-24 years: 11.88% (male 4,122,981/female 3,938,938)
25-54 years: 36.83% (male 12,619,649/female 12,366,120)
55-64 years: 12.47% (male 4,085,564/female 4,376,272)
65 years and over: 20.46% (male 6,029,303/female 7,855,244) (2020 est.)
FRANCE APPAREL TRADE-
FRANCE RMG IMPORT FROM WORLD AND INDIA
% Change
2018 2019 2020
2020/2019
France RMG Import from World, (USD Mn.) 24344.1 23907.3 21293.7 -10.9
France RMG Import from India, (USD Mn.) 1158.3 1107.7 886.9 -19.9
India’s Share in France RMG import from world, % 4.8 4.6 4.2 -10.1
Source: UN Comtrade, 2021
18 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021APPAREL | FOCUS COUNTRY
The above table shows that France’s RMG import from world were to the tune of USD 21293.7 mn. in
2020 showing a decline of 10.9% as compared to 2019. RMG import from India has remained USD 886.9
mn. registering a decline of 19.9%. as compared to 2019. India’s % share in France RMG import from
world has remained 4.2% in 2020.
TOP RMG SUPPLIER TO FRANCE-
TOP RMG SUPPLIER TO FRANCE (VALUES IN USD MN.)
Exporters 2020 % Share
S. No.
World 21293.7 100
1 China 5628.9 26.4
2 Bangladesh 2631.6 12.4
3 Italy 1690.3 7.9
4 Turkey 1293.2 6.1
5 Viet Nam 1136.9 5.3
6 India 886.9 4.2
7 Tunisia 811.1 3.8
8 Morocco 787.9 3.7
9 Cambodia 776.1 3.6
10 Area Nes 604.3 2.8
Source: UN Comtrade, 2021
The above table shows that China has remained a top supplier of RMG to France with a % share of
26.4% in 2020. India is the 6th largest supplier of RMG to France with a % share of 4.2%. Bangladesh, Viet-
nam and Cambodia have a % share of 12.4%,5.3 and 3.6%.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021 / 19APPAREL | FOCUS COUNTRY
FRANCE’S TOP 10 RMG PRODUCTS IMPORT FROM WORLD VS
INDIA’S SHARE
FRANCE TOP 10 RMG IMPORT FROM WORLD VS INDIA’S SHARE
France imports
France imports
from India, Val- India’s
Product label from world, Value
ue in 2020,USD share in %
S. No. Product code in 2020,USD mn.
mn.
RMG 21293.7 886.9 4.2
Sum 8524.6 305.2 3.6
T-shirts, singlets
1 610910 and other vests of 1468.6 139.2 9.5
cotton
Men’s or boys’ trou-
sers, bib and brace
2 620342 1161.6 48.4 4.2
overalls, breeches
and shorts, of cotton
Jerseys, pullovers,
cardigans, waist-
3 611020 1090.6 33.0 3.0
coats and similar
articles, of cotton
Jerseys, pullovers,
cardigans, waist-
4 611030 coats and similar 1084.4 5.6 0.5
articles, of man-
made fibres
Women’s or girls’
trousers, bib and
5 620462 brace overalls, 907.2 12.7 1.4
breeches and shorts
of cotton
20 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021APPAREL | FOCUS COUNTRY
FRANCE TOP 10 RMG IMPORT FROM WORLD VS INDIA’S SHARE
France imports
France imports
from India, Val- India’s
Product label from world, Value
ue in 2020,USD share in %
S. No. Product code in 2020,USD mn.
mn.
RMG 21293.7 886.9 4.2
Sum 8524.6 305.2 3.6
Garments made up
of felt or nonwo-
vens, whether or
6 621010 718.3 1.0 0.1
not impregnated,
coated, covered or
laminated
T-shirts, singlets
7 610990 and other vests of 684.5 17.1 2.5
textile materials
Brassieres of all
types of textile ma-
8 621210 490.5 4.7 0.9
terials, whether or
not elasticated
Women’s or girls’
anoraks, windcheat-
9 620293 ers, wind jackets 490.1 3.5 0.7
and similar articles,
of man-made fibres
Women’s or girls’
10 620443 dresses of synthetic 428.9 40.1 9.3
fibres
Source:UN Comtrade,2021
The above table shows France’s top 10 RMG products imported from world vis-à-vis from India
and India’s % share in those top 10 products. The top 10 products imported from world were to
the tune of USD 8524.6 mn. in 2020 and import from India of these top 10 products were to the
tune of USD 305.2 mn. India has a % share of 3.6 % in France’s top 10 products import from world.
The top products imported by France from world includes T-shirts, singlets and oth-
er vests of cotton, Men’s or boys’ trousers, bib and brace overalls, breeches and shorts,
of cotton , Jerseys, pullovers, cardigans, waistcoats and similar articles, of cotton, Jer-
seys, pullovers, cardigans, waistcoats and similar articles, of man-made fibres and
Women’s or girls’ trousers, bib and brace overalls, breeches and shorts of cotton.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021 / 21APPAREL | FOCUS COUNTRY
FRANCE TOP 10 RMG PRODUCTS IMPORT FROM INDIA
France Top 10 RMG Products Import from India
France Im-
port from % Share
Product label
S. Product India, USD in 2020
No. code mn. 2020
RMG 886.9 100
Sum of Top 10 503.4 56.8
1 610910 T-shirts, singlets and other vests of cotton 139.2 15.7
2 611120 Babies’ garments and clothing accessories of cotton 48.7 5.5
Men’s or boys’ trousers, bib and brace overalls,
3 620342 48.4 5.5
breeches and shorts, of cotton
Women’s or girls’ blouses, shirts and shirt-blouses
4 620640 47.3 5.3
of man-made fibres
Women’s or girls’ blouses, shirts and shirt-blouses
5 620630 41.0 4.6
of cotton
6 620443 Women’s or girls’ dresses of synthetic fibres 40.1 4.5
7 620444 Women’s or girls’ dresses of artificial fibres 35.9 4.1
8 620442 Women’s or girls’ dresses of cotton 35.6 4.0
9 620520 Men’s or boys’ shirts of cotton 33.9 3.8
Women’s or girls’ trousers, bib and brace overalls,
10 610462 33.3 3.8
breeches and shorts of cotton
Source: UN Comtrade, 2021
The above table shows France top 10 RMG products imported from India. France top 10 products
imported from India were to the tune of USD 503.4 mn with a % share of 56.8 % in France total RMG
import from India.
The top products imported by France from India includes T-shirts, singlets and other vests of cotton,
Babies’ garments and clothing accessories of cotton, Men’s or boys’ trousers, bib and brace overalls,
breeches and shorts, of cotton, Women’s or girls’ blouses, shirts and shirt-blouses of man-made fibres
and Women’s or girls’ blouses, shirts and shirt-blouses of cotton.
22 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021WEBIN APPAREL | COUNCIL AFFAIRS
INDIA-US
COLLABORATIONS
IN MMF SECTOR
ON ANVIL
T
he Apparel export Promotion Council AEPC is looking for technology partners and has
(AEPC) is in dialogue with Consulate Gen- been organizing a series of webinars since Sep-
eral of India, New York, and Rhode Island tember 2020 for improving the availability of MMF
Textile Innovation Network (RITIN) to help Indian fabric in India.
apparel companies gain expertise in production of
manmade fibre (MMF) fabrics. “We have also approached MMF fabric producers
of South Korea, Taiwan and Vietnam for either
Addressing a webinar on ‘Executive Insights joint venture, 100% investment or technology
and Business Opportunities in the Textile Sector collaborations in MMF,” he said, adding that AEPC
between India and USA’ organized by Entry India has set up a 24x7 virtual platform to help export-
LLC, USA, and RITIN on 5 May 2021, AEPC Chair- ers and buyers avoid travel during the pandemic.
man Dr A Sakthivel talked about India’s strength
in textile sector. The webinar discussed about the possibility of
collaboration with US companies having expertise
He mentioned about the various initiatives taken in production of MMF fabrics, mainly used for
by AEPC to boost the garment industry in India. making active wears, intimates, medical textiles
Dr Sakthivel said that India’s total export of and specialty fabrics.
RMG is hovering at $16 billion out of which 78%
is in cotton and 22% in MMF. India is a leader in Mr Randhir Jaiswal, Consulate General of India,
production of MMF fibres and yarns, but lacks New York, said that India’s strength in textile
capacity in processing and fabric production. sector offers huge potential for technology collab-
oration with the US companies, especially in areas
India imports world class quality MMF fabric from of MMF and natural jute fibre. He emphasized the
Taiwan, South Korea and other Asian countries. need to develop a sustainable and biodegradable
24 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021NAR APPAREL | COUNCIL AFFAIRS
eco system for the apparel industry. He also spoke
about Production-Linked Incentive (PLI) scheme
to boost export of MMF garments.
Mr Michael Woody, Founder, RITIN, shared the his-
tory of Rhode Island and the fact that industrial-
ization in USA started from Rhode Island. Despite
being a small state, it has more than 70 companies
in the field of aerospace, home furnishing, medical
and PPE, among others. The innovation infra-
structure is funded by the state government.
Dr VK Kothari, Emeritus Professor, IIT, New Delhi,
shared about latest developments in the fields of
technical textiles and medical textiles in India.
He said that Indian Institute of Textiles and other
such organizations undertake projects that are
funded by either the government or the industry.
Such webinars are useful to identify areas and
possibilities of leveraging the knowledge available
in the two countries, he added.
Ms Katherine Therieau, Director, International
Trade Programs, Rhode Island Commerce Cor-
poration, informed that they are working closely
with Entry India LLC to look for business op-
portunities of mutual benefit. Other participants
included Mr Navin Pathak, COO, Entry India LLC,
and Mr Steve Perry, Vice President, Darlington
Fabrics.
MEETING WITH CGI, NEW YORK
AEPC Chairman and Consul General, New York,
held a follow-up meeting on 20 May 2021 for
finding ways to enhance Indian apparel exports in
USA. Dr Sakthivel requested for an MoU between
Rhode Island University and AEPC so that AEPC
could know more about technical textile research
and innovation in MMF fabrics and processing.
He sought the help of CGI, New York, in organiz-
ing B2B meetings with the Universities and also
with the top 10 apparel buyers in New York doing
business both with India and China.
The Consul General of India assured the AEPC of
his full support in the Council’s export promotion
activities in USA, including a delegation visit. He
also informed about his visit to Rhode Island Tech-
nical Research University to discuss innovations
in textiles.
WEBINAR
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021 / 25APPAREL | COUNCIL AFFAIRS
CONSIDER PERISHABLE
APPAREL EXPORTS AS
ESSENTIAL SERVICES:
AEPC
AEPC CHAIRMAN DR A SAKTHIVEL WRITES TO HON’BLE PRIME MINISTER
DGFT REFERS MATTER TO MINISTRY OF HOME AFFAIRS FOR CONSIDERATION
AEPC HOSTS ONLINE MEETING WITH BUYING HOUSES AND ASSOCIATIONS
Apparel Export Promotion Council (AEPC) Executive Committee meeting in progress on 25 May 2021
Apparel Export Promotion Council (AEPC) has made a “Most of the apparel exports are season and fashion
fervent plea to Hon’ble Prime Minister Shri Narendra sensitive, and their salvage value becomes zero if
Modi to declare apparel exports as essential services the production and shipment are not done in time.
and exempt these exporting units from lockdowns Considering the perishable nature of the product,
across India. apparel exports should be seen as essential services.
Besides, many neighbouring and competing countries
“We request that the Central government should issue have already accorded apparel exports the status of
necessary instructions to all the state governments essential services,” the Chairman said.
to declare apparel exports as essential services and
exempt them from shutdown,” AEPC Chairman Dr A Apparel exporters showed great resilience in getting
Sakthivel wrote in a letter to the Hon’ble PM. back on track after being badly hit in 2020 with huge
26 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021APPAREL | COUNCIL AFFAIRS
AEPC discussion with buying houses and associations on second wave of pandemic on 25 May 2021
export order cancellations, bankruptcies and labourers cases in the apparel sector. Last week, Tamil Nadu Chief
going back to native places. Export orders from the US Minister launched vaccination of all garment workers,”
and Europe have revived but now the Indian apparel he said, adding that AEPC is working with other state
exporters face the danger of losing these to competing governments to vaccinate all the apparel workers.
countries as the second wave of Covid-19 crisis has
resulted in lockdowns in several states. Representatives of buying houses and associations
said that they are trying to convince the buyers that
“Due to the lockdown, if the units are unable to execute it is a temporary setback and things will soon get
these orders, this will result, not only in the short term better. The buyers are also “extremely compassionate”
loss of orders and export earnings, but also a long towards helping India but, unfortunately, as a lot of the
term loss of the buyers. Our competing countries like businesses are seasonally time-sensitive, the current
Bangladesh, Vietnam, Cambodia and Pakistan are lockdown will impact most of the time sensitive orders.
making all efforts to take orders from these regions and Though buyers are not looking at mass cancellations,
if we lose our buyers at this point, they will not come like it happened in 2020, certain products will not be
back in the near future,” Dr Sakthivel said. able to ship.
Based on the recommendation, Directorate General Dr Sakthivel said that the apparel industry, with 13
of Foreign Trade (DGFT) has taken up the matter of million direct workers, is the largest employer in India’s
declaring “exports” as an essential services with the manufacturing sector and also engages many more
Home Ministry. workers indirectly in the large value chain of apparel
and textile in the country.
Earlier the same day, the Council held a video
conference meeting with buying houses and The Chairman requested the Hon’ble Prime Minister
associations to discuss the second wave of pandemic. to urgently intervene and save lives, livelihoods and
The Chairman requested the buying houses and agents prevent major financial losses for apparel exporters,
to explain to the international clients that the situation especially in the MSME segment. The letter has also
in India is getting better by the day. He said that they been shared with Hon’ble Minister of Home Shri Amit
should convince their clients not to cancel their orders Shah, Hon’ble Commerce Minister Shri Piyush Goyal
as he believes India will bounce back by mid-June. and Hon’ble Textiles Minister Smt Smriti Zubin Irani.
“We request you to please explain to the buyers that He assured the government that all apparel units are
things in India are moving in the positive direction. and will continue following the strictest Covid-19 health
While daily caseload has come down from 3.5 lakh to protocols, ensuring workers’ health, safety and all
about 2 lakh in the country, there have been only few necessary support.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021 / 27APPAREL | COUNCIL AFFAIRS
AEPC HELPS TAMIL NADU
IN COMBATING COVID-19
PANDEMIC
A
pparel Export Promotion Council (AEPC) has come forward and extended full support to Tamil Nadu
government in combating Covid-19 pandemic in the state. The Council coordinated with the state government
authorities to conduct a vaccination drive for apparel workers in Tirupur.
Representing the vibrant apparel export sector in India including Tamil Nadu, AEPC Chairman Dr A Sakthivel at-
tended a video conference meeting called by Tamil Nadu Chief Minister Shri MK Stalin with leading industrialists on
19 May 2021 for a discussion on the coronavirus crisis and ways to combat the pandemic and save lives.
AEPC Chairman attending video conference meeting called by Tamil Nadu
Chief Minister for a discussion on coronavirus pandemic on 19 May 2021
Tamil Nadu CM Shri MK Stalin and AEPC Chairman
Dr A Sakthivel giving out certificates to beneficiaries Free of cost Covid-19 inoculation drive for garment
at vaccination camp on 20 May 2021 workers in progress at Tirupur
A day later on 20 May 2021, Hon’ble Chief Minister of Tamil Nadu inaugurated Covid-19 vaccination camp for people
between 18 and 44 years of age at Netaji Apparel Park in Tirupur. The city is home to about 12,000 garment workers
and all eligible employees participated in the free of cost Covid-19 inoculation drive.
28 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021APPAREL | COUNCIL AFFAIRS
AEPC APPRISES COMMERCE
MINISTER OF SECTOR
CONCERNS
Hon’ble Commerce Minister Shri Piyush Goyal holds meeting with EPCs
Hon’ble Minister of Commerce and Industry Shri Piyush complete stoppage of production, he said.
Goyal along with senior officers of the Department of
Commerce and Directorate General of Foreign Trade The Chairman requested that the Ministry of Home
(DGFT) held a meeting with Export Promotion Councils Affairs should issue instructions to all the State Govern-
(EPCs) to discuss various issues concerning the interna- ments, declaring export as an ‘Essential Services’. For
tional trade on 11 May 2021. removing the uncertainty regarding RoDTEP rates, he
urged that RoSCTL rates should be made applicable till
Shri Goyal complimented the exporters for their encour- the announcement of RoDTEP rates. He also requested
aging performance, even during such trying times. He for an extension of the Interest Equalization Scheme
noted that India’s merchandise exports in April 2021 (IES) for a period up to 31 March 2022 to enable the
was $30.21 billion, an increase of 197% over $10.17 industry to have affordable access to credit.
billion in April 2020 and an increase of 16% over $26.04
billion in April 2019. Dr Sakthivel recommended provision of Self Declaration
option for imports under Special Advance Authorization
He said that performance of exports in April’21 and scheme for no Norms products. Being a fashion industry,
2020-21 gives a hope that an ambitious target of $400 with continuously changing designs and input require-
billion merchandise exports can be achieved this year. ments, flexibility may be given to the industry. With the
There is a large potential for enhancing exports in sev- proposed PLI scheme aiming at diversifying into new
eral sectors like pharma, engineering, auto-component, MMF garments, this proposed change is essential, he
fisheries and agro-products, he added. added.
AEPC Chairman Dr A Sakthivel apprised the Hon’ble Finally, he also requested for a fast-tracked Free Trade
Commerce Minister of the various issues facing the Agreement (FTA) with EU or Comprehensive Economic
apparel export sector. The most urgent issue before the Partnership Agreement (CEPA) with EU, and a similar
exporters, including the apparel industry, is challenges market access for the UK market.
posed by lockdown in several states, which has led to
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021 / 29APPAREL | COUNCIL AFFAIRS
RBI’S FOCUS ON
HEALTH, MSMES IS BEST
PRESCRIPTION: AEPC
CHAIRMAN
A
pparel Export Promotion The Chairman welcomed RBI’s of small businesses and MSMEs,
Council (AEPC) Chairman decision to consider restructuring based on a reassessment of working
Dr A Sakthivel applaud- of loans for borrowers up to Rs 25 capital and margins, among others,
ed the RBI’s decision to crore, who did not take restruc- is a welcome move to strengthen
provide on-tap liquidity of Rs 50,000 turing facility earlier and were businesses in executing new orders.
crore for Covid related healthcare standard as of March 2021, till 30 Overall, this is the best prescription
infrastructure and other measures September 2021. He said it will be a RBI could announce to heal both the
to support MSMEs. timely help for many MSMEs. citizens and the businesses at this
crucial juncture when there are a lot
“I commend RBI Governor Shri “Apart from the loan restructuring of uncertainties around,”
Shaktikanta Das for taking up facility, the decision to allow banks Dr Sakthivel said.
timely measures to prop up the to extend the moratorium under
much needed Covid related health- restructuring frame 1.0 for a period He also lauded the RBI’s decision to
care infrastructure in India. I also of up to two years will provide extend the facility of not considering
congratulate him for the steps taken breathing space to many MSMEs the credit disbursed to new MSME
to support the small and medium trying to recover from the impact of borrowers while calculating Cash
businesses so that while we save pandemic. Reserve Ratio (CRR) for another
the lives of our citizens, means of three months till 31 December 2021
livelihood are also protected,” “Further, the decision to review the saying it will incentivise credit
Dr Sakthivel said. working capital sanctioned limits flow.
30 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021APPAREL | COUNCIL AFFAIRS
AEPC APPEALS TO FINANCE
MINISTER, RBI FOR CHANGES
IN ECLGS
A
pparel Export Promotion Council (AEPC) “Given the urgent need for the apparel sector to regain
Chairman Dr A Sakthivel has requested its financial health and leverage the upturn in global
Hon’ble Finance Minister Smt Nirmala demand position, I request for some changes in ECLGS
Sitharaman and Reserve Bank of India (RBI) scheme for the apparel sector,” he said, adding a list of
Governor Shri Shaktikanta Das for changes in the Emer- recommendations in the letter. A similar request letter
gency Credit Line Guarantee Scheme (ECLGS) to help has been sent to RBI Governor Shri Shaktikanta Das.
apparel sector regain financial health.
He said the scheme, which is available for loans out-
“I would like to bring to your notice that apparel exports standing as on 29 February 2020, should be extended
has been one of the worst hit sectors in the pandemic, even beyond that date as the apparel industry is still
due to widespread payment defaults, bankruptcy cases facing financial distress and, in fact, more severe in the
and discounting by buyers. Hence, I would request for second wave.
your consideration of providing some more flexibility to
the apparel sector, in line with what is being provided Dr Sakthivel also requested for removal of the borrow-
to a few other sectors under ECLGS 3.0 and 4.0,” Dr er’s total outstanding credit limit of Rs 500 crore, in
Sakthivel wrote in his letter to Hon’ble Finance Minister. line with flexibility offered under ECLGS 3.0 and 4.0, for
apparel sector as many units had made investments for
The Chairman thanked the Hon’ble Minister for timely scaling up, vertical integration or product diversification
evaluation of the industry’s health and providing relief encouraged by the proposed Production-Linked Incen-
packages. An important step in this direction was the tive (PLI) scheme for apparel sector, which promotes the
expansion of the coverage and tenure of the ECLGS. “Make in India” vision.
While the scheme is extended till 30 September 2021,
Dr Sakthivel has requested for extending the facility till While recommending continuation of the cap of Rs 100
end of the year. crore as additional credit under GECL, the Chairman
requested raising the 20% limit to 40% of the total out-
standing credit for additional credit under GECL for the
apparel sector.
“The apparel sector is under severe competition from
other countries like Bangladesh, Vietnam, Cambodia
and Pakistan, who have recorded a faster recovery due
to no lockdowns and other facilitations,” he added.
APPAREL
APPAREL
EXPORTEXPORT
PROMOTION
PROMOTION
COUNCIL
COUNCIL
MAGAZINE | SEPTEMBER
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2021 / 31
33APPAREL | DIPLOMATIC CORNER
INDIAN APPARELS
NEED TO WORK ON
INNOVATION, PRICE
AND DELIVERY
India’s Ambassador to Spain Mr Sanjay Verma, in an exclusive email
interview to Apparel India, said that the key mantras for increasing
India’s apparel exports to Spain are innovation around design,
competitive pricing and speedy delivery.
He said India accounts for $571 million of the total garment imports
worth $16.2 billion by Spain. As Spain gets ready to welcome vaccinated
people from any country in the world from 7 June 2021, here are the
views of the top Indian diplomat in Madrid.
1. Please share your views about the current India- and sustained communication between the governments
Spain bilateral relationship. have ensured an alignment of interests in the fields of
India and Spain share a long standing relationship, climate change, global management of the pandemic,
given their many similarities like strong federal geopolitical challenges etc. Our Heads of Government
democracy, cultural openness and comfort in diversity. recently participated in the India-EU Leaders Summit
Through meetings and exchanges at all levels, largely in Portugal. A visit from the Spanish Prime Minister to
online over the last year on account of the pandemic, the India is on the cards, which was postponed due to the
bilateral ties are on an upswing. In fact, the pandemic pandemic.
attests to our friendship. Earlier, India was in a position Our economic relations are central to bilateral ties.
viz a viz Spain to provide the needed supplies like HCQ We had a meeting between our Commerce Minster
tablets. Now in our hour of need, Spain is helping us out and Spanish Minister of Industry in April. We are
with critical equipment like oxygen concentrators. In my also looking forward to the 12th Joint Commission
opinion, our ties can stand any test of time. on Economic Cooperation. Business between the
two countries is growing steadily. Some 200 Spanish
companies work in India, with an investment of about
2. India and Spain are celebrating 65 years of € 3 billion and about 50 Indian companies operate in
diplomatic ties this year. What steps are being Spain.
taken to build stronger political, economic and There is a natural synergy between the cultural
cultural ties? spheres of both countries and any presentation of
There has been a holistic growth in the relationship Indian culture is warmly received in Spain. We have
between India and Spain. On the political front, frequent an Indian cultural centre – Casa de la India – at
32 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JUNE 2021You can also read
