MESSAGE FROM THE CHAIRMAN
Shri Bhadresh M Dodhia
I thank all of you for being actively and effectively engaged in various core policy matters which the Council is endevouring towards increasing exports. I have recently attended a meeting of the Ministry to discuss on performance and review export target, wherein I mentioned about constitution of our segment-wise verticals at the Council in order to pay due and equal attention to all the segments namely, Fibre, Yarn, Fabrics, Made-ups, and Technical Textiles. And this was highly appreciated by the Ministry as positive initiative taken by our Council in right direction. We must keep going this momentum and enthusiasm and need to have continuous brainstorming on every aspect towards taking exports to new heights. I invite Members to come forward with new and innovative ideas, participate collectively and volunteer in your interested areas of expertise.
As we understand there is a slight uptick in the global growth forecast for 2023, in spite of prolonged dim global economic recovery, stubborn inflation, rising interest rates, uncertainties, etc. The UN’s latest Report projects the world economy to grow by 2.3 per cent in 2023 which is +0.4 percentage points from the January forecast, and this is a good sign for exports.
We have compiled the export statistics for the entire FY 2022-23, and it shows a decline of around 15% in the case of MMF textiles and 12% in the case of Technical Textiles, as compared to the previous year. I feel that this sombre scenario will not last long but normalized and exports will also pick up by around middle of the current fiscal. I am confident that the continued hard work that we all are putting in collectively will yield good results.
I am pleased to inform you that from 1st April, 2023, the Rupee Trade Settlement with Malaysia has been implemented. With this initiative of the Government, trade between India and Malaysia can be settled in Indian Rupees (INR) in addition to the current modes of settlement in other currencies. I hope that with the Rupee Trade Mechanism, exporters will be able to offer more competitive and attractive pricing of their products to the Malaysian traders thereby augmenting the trade growth between India and Malaysia.
Council is continuously coordinating with the respective departments in the Ministries to get resolved all the issues of our Members on various impediments faced by them such as (i) Refund of IGST and DBK benefits timely; (ii) Delay in announcement of the RoDTEP rates; (iii) suitable revision Drawback rates, etc. I am also taking up the issues of our Members personally with the Minister and senior officials during my meetings with them. I have also requested the Ministry to reinstate the erstwhile Focus Market Scheme to compensate high logistic costs especially for markets in LAC, Russia, USA, etc. I am hopeful that all the issues will be addressed in our favour.
I would also like to mention that to promote exports of Indian MMF Textiles and Technical Textiles, some of the forthcoming international events are planned for Russia and Bangladesh. In Russia, we are participating in INTERFABRIC 2023 Autumn in Moscow from 5-7 September and in Bangladesh, we are participating in 20th Dhaka International Yarn & Fabric Show in Bangladesh from 13 to 16 September. Both the markets are having huge potential for our products. I request Members to take advantage of both the events by participating in big numbers to make international buyers felt about our products and persude them to source from us.
Last but not the least, I would urge all our Members to renew your respective Membership with the Council as soon as possible, if at all you have not renewed yet, to help us provide you with uninterrupted services and all benefits of membership.
Bhadresh M. Dodhia
Chairman – SRTEPC
It is indeed a privilege for me to take over as the Chairman of the Council. I thank each Member of the Committee of Administration of the Council individually for reposing their trust toward to me. I assure the Members of the Committee of Administration and also all the Members of the Council of my best and dedicated efforts to increase exports of MMF Textiles and Technical Textiles.
Exports Performance 2022-23
The exports of MMF Textiles and Technical Textiles have seen a declining trend owing to the global economic slowdown during the year 2022-23. However, the exports shall gain its momentum and will continue to increase in the coming Financial Year 2023-24 with the collective efforts of the Council and its Members.
Foreign Trade Policy 2023
The Government has announced the much awaited new Foreign Trade Policy 2023 on 31.03.2023. The new Foreign Trade Policy is Pragmatic and Progressive which will certainly lead an increase in our overall exports.
The automatic and online approval system for various permissions, one time Amnesty scheme, explicit provision for merchanting trade and the focus on E-commerce are all steps in right direction which will lead to export growth.
The most significant aspect of the new Foreign Trade Policy is that there is no expiry date for Foreign Trade Policy which will make it dynamic and responsive to the fast changes that are taking place in the global economy system and export market.
Revision of All Industry Rates of Duty Drawback
As you are aware the Government is in the process of reviewing all Industrial rates of Duty Drawback as part of its annual exercise. The council had a meeting with the Drawback Committee and senior official in the Drawback Department to discuss the proposal. The council has issued circular inviting data from its member in laying with request of Department. However, the data is still awaited from member for all categories of Man-made products like Fiber, Yarn, Fabrics and Made ups.
I would urge the members to send the required data to the Council at the earliest so that proposal with adequate justification for an increase in Drawback rate can be submitted to the Government and we solicit your support and corporation in the matter.
Appeal to Extend implementation of QCO for Viscose Staple Fibres and for Polyester Staple Fibres/yarn
With regards to QCO for Viscose Staple Fibre, The Council has appealed to the Government for an extension in its implementation data by another six months.
We would urge Bureau of Indian Standards (BIS) to speed up the processing of applications for BIS certification so that adequate number of certifications are granted before the implementation of the QCOs.
I would also like to take this opportunity to remind the members who have yet to renew their membership for the year 2023-24 to do so immediately to enable us to continue our service to them. I count on your continued support for strengthening Council’s membership by encouraging new members to join the Council to avail our facilities.
Bhadresh M Dodhia
Shri Dhiraj R Shah
Immediate Past Chairman, SRTEPC
March 2021- March 2023
My tenure as the Chairman of SRTEPC has completed and I am deeply thankful to each one of you for your valuable co-operation and support during the past two years and especially during the pandemic times which was really a testing period for all of us.
Export Performance 2021-22
I would like to inform that during last Financial Year 2021-22 exports of Indian Manmade Fibre textiles reached to highest value at US$ 6,774 million against US$ 4645 million achieved during FY 2020-21, witnessing a whooping growth of 45.8%. Exports of Man-made fibres witnessed a growth of 82%. MMF Yarns and Fabrics exports shown a growth of 72.47% and 29.82%, respectively during the same period. Exports of MMF Yarns dominated with 34% share followed by MMF Fabrics (30%), Made-ups (26%) and Fibre 10%. Exports of MMF Fabrics also witnessed growth of 29.82% during 2021-22 as compared to the previous year. Synthetic Filament Fabrics (US$ 591.94 Mn) was the top exported product in India’s MMF textile exports followed by Polyester Filament Fabrics (US$ 466.31 Mn) during April-March 2021-2022.
The major items of exports in this segment were Sarees, Shirtings, Suitings, Narrow woven Fabrics, Tyre cord fabrics, Parachute Fabrics and Umbrella Cloth. It is heartening to note that exports of fabrics like Polyester spun Fabrics, Viscose Spun Fabrics and Polyester Filament Fabrics have registered significant growth of 130.14%, 82.16% and 73.86% respectively.
During this FY 2022-23, as per the latest provisional data released by the DGCI&S exports of Manmade Fibre Textiles have dipped by 12% as compared to FY 2021-22. I hope exports of MMF Textiles will improve in the FY 2023-24.
Export Promotion of Technical Textiles
It is my immense pleasure to inform you that the Government has assigned the role of export promotion of Technical Textiles to our Council. The Council has started taking several steps to boost the exports of Technical Textiles from India. I am confident , SRTEPC will be doing its best to promote the exports of Technical Textiles.
Proposals to Government
I am glad to inform that during the pandemic situations, the Ministries of Commerce & Industry and Textiles were actively involved in taking appropriate measures to resolve various issues for the Proposals put up to them by the Council such as The Scheme for “Remission of Duties and Taxes on Exported Products (RoDTEP) rates were increased.
I would once again like to express my gratitude for all your wholehearted support and assure that I will be with SRTEPC for all its concerns.
Thanks and Welcome the New Chairman
Let me also take this opportunity to thank Shri Bhadresh Dodhia and other Members of the Committee of Administration for their constant cooperation and guidance, which helped me in discharging my duties in issues concerned with SRTEPC as the Chairman.
My hearty congratulations to Shri Bhadresh Dodhia on his taking over as the 19th Chairman of the Council and I sincerely wish him all success in his tenure ahead and assure my support at all the times in the future.
With warm regards,
Dhiraj Raichand Shah
We have celebrated our Annual Export Award Function in a grand way this year also.
First of all, I express my sincere heartfelt gratitude to Shri Piyush Goyalji, the Hon’ble Union Minister of Commerce & Industry, Textiles, Consumer Affairs, Food & Public Distribution for gracing the occasion, despite his busy schedules. Let me also take this opportunity once again to formally congratulate all the Award Winners, on behalf of the Committee of Administration, for your remarkable efforts in the export front. I urge all other members who could not make this time for Awards, to continue their best endeavours for next years. I take this opportunity to place on record my sincere thanks to all the sponsors, who have generously supported to organise the Annual Export Award Function. Without your support, this event would not have been possible to celebrate in such a grand fashion. I request for your continued support in future also. I also thank all the COA members of the Council for your continued support and directions in successfully organising the Export Award Function.
The Annual Export Award Celebration this year was a milestone and unique in itself as for the first time in the history of the SRTEPC the Hon’ble Union Commerce and Industry Minister has attended the Annual Export Award Function as the Chief Guest and has given away the Awards to all the Winners. During his speech the Minister has highly appreciated the services and efforts made by the Council for enhancing exports from the country. It was a momentous and proud occasion for all of us. This will be a vividly remembered by all of us in the SRTEPC and I wish, in future also the Council will be achieving many such milestones in all fronts.
In 2022 Global growth slowed to 3.2%, which is below the expectations level and this was primarily due to the impact Russia-Ukraine war, the cost-of-living crisis, and the slowdown in China.
Positive signs have now started to appear, with business and consumer sentiment starting to improve, food and energy prices falling back, and the full reopening of global markets. However, the improvement in the outlook is still fragile and to have positive and stable yield on exports it will take some more time. Uncertainty about the course of the Russia-Ukraine war and its broader consequences is a key concern. The strength of the impact from monetary policy changes in the US is difficult to scale and could continue to expose financial vulnerabilities from high debt and stretched asset valuations. Pressures in global energy markets could also reappear, leading to renewed price spikes and higher inflation. Therefore, the global uncertainty likely to remain through 2023.
As per the data released by DGCI&S, exports of Man-made Fibre (MMF) textiles and Technical Textiles together were around US$ 6,800 million during April – January 2022-23. Of which around US$ 4,700 million were of Man-made Fibre (MMF) textiles and that of Technical Textiles were around US$ 2,100 million. By the end of the current FY 2022-23, we are expecting exports of around US$ 8.8 billion of MMF textiles and Technical Textiles together. Of which, around US$ 6 billion will be of conventional MMF textiles and around US$ 2.8 billion of Technical Textiles. However, by mid of 2023 we are expecting that the situation is likely to recover, and favourable for exports.
During my interactions with Shri Piyush Goyalji, the Hon’ble Union Minister of Commerce & Industry, Textiles, Consumer Affairs, Food & Public Distribution, I have apprised him of the current export scenario and prevailing stress on exports and also the handholding services of the Council in promoting exports. The Hon’ble Minister appreciated the continued efforts made by the Council for facilitating exports and assured his full support for the MMF textiles and technical textiles segment.
I am happy to inform that based on our representations for extension of Export Obligation by one year to all the EPCG license holders, DGFT has issued notification no 53/2015-2020 by approving one time relaxation from maintenance of Average Export Obligation and extension in Export obligation period for specified EPCG authorisations.
The Council has prepared the inputs and suggestions based on the feedback received from the Members, relating to formulation of the new Foreign Trade Policy and sent to the Ministry on due date. We have also made representations to the concerned government departments on issues such as extension of RoSCTL benefits to FIBC, continuation of the A-TUFS till a similar alternative scheme is formulated, etc.
I urge all the members to renew their membership well in time for helping the Council extending uninterrupted services towards boosting exports.
In case there is any difficulty/ challenge in international markets or within the country on any export related issue then you may inform the Council immediately at firstname.lastname@example.org to help you on the same suitably. Members are also requested to email their views to the Council for further improving the quality of the SRTEPC World.
Dhiraj Raichand Shah
Chairman - SRTEPC
Dear Friends ,
We are shocked at the huge loss of life and property caused by a massive earthquake in Turkey. Our heartfelt condolence to all those who have lost their family members and near and dear ones. We hope and pray that Turkey will recover from this tragedy and will be back to normal as soon as possible.
Export Trend of Manmade Fibre Textiles
Exports of MMF textiles continues to decline which is in line with the overall contraction in exports due to the Geo-Political situation prevailing in the World currently. Exports of MMF textiles during April to December 2022 touched US$ 4277.87 Million as compared to US$ 4994.56 Million during the same period last year registering a decline by (-14.35%). While decline in exports is a matter of serious concern , we hope exports will pick up during January to March 2023 as our members are reportedly exporting to non-traditional markets .
Meeting of MMF Focus Group
In the first Meeting of the newly constituted Textile Advisory Group (TAG) for MMF held on 14.02.2023 in Delhi which was Chaired by the Hon’ble CIM Shri Piyush Goyal , a wide range of issues related to the growth of the MMF sector were discussed. The Hon’ble Minister had suggested that the different segments of the MMF value chain need to be supported and be sensitive to each other’s requirements and challenges for a holistic growth of the MMF sector . I had raised the issue of shortage of capacities for Quality Processing and Effluent Treatment facilities . Glad to note that all the representatives from the industry present in the meeting pledged to support each other to fast track the growth of the MMF textiles sector.
Increase in the RODTEP rates for MMF textile products
I am thankful to the Government for considering the proposals submitted by the Council for an increase in the RODTEP rates for MMF textile products. I am glad that the RODTEP rates have been increased significantly which I am confident will give a big boost to exports of MMF textiles .
An important category of product under Technical Textiles i.e. FIBC have been left out of the RoSCTL and the RoDTEP Schemes. In our view, since FIBC falls under Chapter
63 of the ITC(HS) Classification, it should be covered under the RoSCTL Scheme. The Council has represented to the Government to include FIBC under the RoSCTL scheme. We hope the product will be covered under the RoSCTL scheme at the earliest.
Rupee Trade Mechanism
With regard to the Rupee Trade Mechanism , about 20 Indian banks , both private and public , have opened the Special Vostro Accounts to facilitate Rupee Trade . However, most of the banks are awaiting the Standard Operating Procedures from the RBI on the Rupee Settlement Mechanism so as to take it forward. I would urge RBI to please put in place the much needed SOP so that exporters can take the benefit of the Rupee Trade Mechanism.
Extension in Export Obligation Period under the EPCG scheme
The Covid pandemic and the subsequent Russia -Ukraine war have created widespread disruption in economic activities & supply chain not only in India but around the world.
The situation has been further aggravated due to the economic slowdown & likely recession in the US and Europe that has led to contraction of demand in key export markets. As a result, many exporters holding EPCG Authorisations were not able to complete their Export Obligations & are facing the prospect of regularization by paying Customs duty, Interest etc. I would urge the Government to allow an extension in the period of Export Obligation by another one year to all EPCG license holders. This will bring huge relief to the EPCG Authorization holders who are facing difficulties in fulfilling their Export Obligations under the EPCG Scheme due to which is beyond their control.
SRTEPC Export Award
This year also the Council will organize its Annual Export Award Function very shortly to recognize and felicitate its members for outstanding performance in exports . The necessary details will be sent to you in due course and I take this opportunity to invite each one of you to be present and make the Award Function a grand success .
With Best Wishes & Warm Regards
Dhiraj Raichand Shah
Chairman - SRTEPC
I hope that all of you are safe, healthy and began the Year 2023 with high spirits and resolved for increasing exports.
Global demand is sharply weakening in the face of elevated inflation, higher interest rates, reduced investment, and disruptions caused by Russia-Ukraine war. India’s overall merchandise exports declined 12.21%. Textiles trade is not an exception. As per the latest DGCI&S data available for April-November 2022, exports of Indian Manmade Fibre textiles were US$ 3828.23 mn. as against exports of US$ 4380.79 mn during the corresponding period of the previous year showing a decline of 12.61%. We are optimistic that in the forthcoming final quarter of the FY 2022-23 we will be able to export around US$ 2750 mn and achieve the export target given by Government to the MMF textiles sector. All your untiring efforts and innovative strategies will certainly bring desired results.
Revision of RODTEP Rates
The Council was constantly following up with the Ministries for increasing the RoDTEP rates for the Manmade fibre textile value chain. DGFT has notified the revised RODTEP rates vide Notification No. 53/2015-2020 dated January 9, 2023. The RoDTEP rates/caps have been significantly increased in the case of many Manmade fibre textile products and rates are effective on exports made from 16.01.2023 to 30.09.2023. However, still some of the products left unattended including some knitted fabrics on which the RoDTEP rates are not revised. I request all Members to go through the rates and inform the Council if there is any product on which rates are not revised as per merit so that accordingly the Council can take up with the concerned department.
India - Australia ECTA
The India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) has come into effect from 29 December 2022. Under this FTA exports of the entire Indian MMF textiles and technical textiles are getting Duty Free access in the Australian market from the day one of implementation of the ECTA. I urge all Members to take benefit of zero duty exports under this Ind-Aus ECTA and increase our exports not only to Australia but to the entire Oceania region. Request you all to contact SRTEPC for any assistance regarding the Ind-Aus ECTA.
Interactive Meeting with Secretary (Textiles) in Surat
The Council organized an Interactive Meeting with Smt. Rachna Shah, Secretary (Textiles), in Surat on 8th January 2023. Smt. Roop Rashi, Textile Commissioner was also present during the meeting. During my interactions with the Secretary (Textiles) I requested her to include value-added fabrics of Manmade fibres, Processing and technical textiles under the PLI 2 Scheme also; The meeting was well attended by Members of SRTEPC and also from Surat Clusters and various Textile Trade Bodies/Association.
Ministry of Textiles held VC meeting under the Chairpersonship of Smt. Rachna Shah, Secretary (Textiles) on 4th January, 2023 to review of export performance, steps taken for availing advantage of FTAs, NTB issues etc. Smt. Shubhra, Trade Advisor, MoT was also present during the meeting. We updated the Secretary on the export scenario along with the latest achievement of the export target fixed for FY 2022-23 and informed her about the global stressful export scenario. Accordingly, we requested some initiatives such as provision of Rupee trade mechanism with African markets also, intervene in the higher exchange rate charged by the shipping lines, rectification of the inverted duty structure, allow credits under RoDTEP/ RoSCTL directly to the exporters account, etc.
The Department of Commerce organised a VC meeting under the Chairmanship of Shri Anant Swarup, Joint Secretary, Department of Commerce to monitor the progress of Export Target fixed for the Northeast Asian (NEA) region and achievement till November 2022 with regard to achieving the India’s Export Target of USD 470 billion for the year 2022-23. We updated on our exports to the region and raised our concerns.
The Department of Commerce also took a virtual meeting under the chairmanship of Shri Neeraj Gaba, Director (EP-Textiles Division), Department of Commerce to analyze the export performance of the Textile sector for the period of April-November 2022 and discuss the strategy to achieve the textiles exports target for 2022-23. We updated the latest export scenario clearly and raised concerns.
The Department of Commerce held stakeholders’ consultation regarding revision/negotiation on the India Korea CEPA under the chairmanship of Shri Anant Swarup, Joint Secretary, DoC. Council informed about Manmade fibre textiles surplus situation in the Korea Republic and possibility of flooding these textiles to India if any duty concession is given. Hence, we requested the Government to maintain status quo on earlier Duty structure.
Friends, the CBIC has issued Circular No.02/2023-Customs dated January 11, 2023, according to which the Board has decided to implement Standard Examination Orders (SEO) for more categories of products which includes Textile products under the Faceless
Assessment. The DGFT has issued Trade Notice No. 24/2022-23 dated 12/1/2023 for withdrawal of EODC online monitoring system.
In case you face any issue / query you may send it to us at email@example.com for doing the needful accordingly. Members may also send their views through email for further improving the quality of the SRTEPC World.
Dhiraj Raichand Shah
Chairman - SRTEPC
I take this opportunity to wish all our members a very HAPPY NEW YEAR 2023.
At the outset I would like to submit that the export scenario during September and October is not encouraging for our segment. The reasons for slowed down exports are well known by several related shocks, including the war in Ukraine, high energy prices, inflation, monetary tightening and so on. Exports of Indian MMF and blended textiles amounted to US$ 3416.25 Mn in April-October 2022 which is around 52% of the export target given by the Government to the Council. I am optimistic that exports will grow to the desired level during the final quarter of the Financial Year, which is the usual trend.
My fellow Members we celebrated Formation Day of the Council on 13th December 2022 through Virtual Mode to commemorate 68 years long journey of its landmark services to the Manmade Fibre Textile fraternity in India. Formation Day was attended by Smt. Roop Rashi, Textile Commissioner, Smt. Shubhra, Trade Advisor, Ministry of Textiles, Government of India, captains of the industry, former office bearers of the Council, past Chairmen, Vice-Chairmen, Members of the Committee of Administration, Members of the Council and Media. The presentations made by the Speakers, Mr. Navdeep Singh Sodhi and Mr. Hendrik van Delden of Gherzi Textil Organisation AG on “Strategies to promote exports of Man-made fibre textiles” and Mr. Prashant Agarwal of Wazir Advisors Pvt. Ltd. on “Export Potential of Technical Textiles” has immensely helped our exporters to educate themselves on the Man-made fibre and Technical Textiles industry. The celebration was historic for the Council and all appreciated it.
The Council organised 7th edition of its signature event Reverse-Buyers Sellers Meet “SOURCE INDIA 2022-23” in Mumbai from 28 to 30 November 2022. Around 100 international buyers from 25 countries visited the Show. Over 60 Indian Textile companies displayed their latest range of textile products covering fibres, yarns, fabrics, made-ups, technical textiles, etc. Group delegates were from Turkey, Ethiopia, Iran, Japan, etc. As it is understood, some of the companies have been able to book some spot orders. I thank the Member-companies for exhibiting their products during the Source India and interacting with the buyers during the B2B meetings thus enabling them to clinch business deals on-the-spot.
Rupee Trade Mechanism with Russia
Friends, Nine Russian Banks opened Vostro Accounts in Indian Banks after RBI Approval. This move to open the special vostro account clears the deck for settlement of payments in Indian rupee for trade between India and Russia, enabling cross-border trade in the Indian currency. Sberbank and VTB Bank -- the largest and second-largest banks of Russia, are the first foreign lenders to receive the approval after the RBI announced the guidelines on overseas trade in the rupee in July. Another Russian bank Gazprom - which does not have its bank in India - has also opened this account with Kolkata-based Uco Bank. Nine accounts that have been opened are one in Uco Bank, one in Sber, one in VTB and 6 with IndusInd Bank.
Participation in Morocco Fashion Tex Style
The Council participated with 12 member-companies in Morocco Fashion Tex Style from 7 to 10 December, 2022. This time the venue of the exhibition was not in Casablanca, which is the financial capital of Morocco, but it was at a distance of almost 120 km away from Casablanca, due to temporary covid medical structure built up at the earlier venue. It is understood that around Rs. 10 crores of initial orders have been booked and around Rs. 50 crores of estimated orders have been negotiated for finalization in due course.
I thank HE Shri Rajesh Vaishnaw, Ambassador, Embassy of India, Rabat (Morocco), for gracing the Opening Ceremony of India Pavilion and boosting morals of our participating companies with his encouraging interactions. We updated HE about the lukewarm response and the inconvenience faced by the participants due to change of the venue. HE informed that from next edition the Exhibition will held in Casablanca only.
The Ministry of Commerce & Industry had organised a meeting with the Commerce Secretary, Shri Sunil Barthwal and DGFT, Shri Santosh Kumar Sarangi with the exporters in Mumbai on 26/11/2022 to discuss issues related to exports. The Commerce Secretary invited 10 specific points related to exports. SRTEPC has already sent the points to the Commerce Secretary.
The Council has been mandated by the Ministry of Textiles, GoI as the authorised Export Promotion Council for exports of technical textiles also besides the existing portfolio for promotion of exports of MMF and MMF blended textiles. Therefore, the Council jointly with by FICCI organised a Curtain Raiser of Technotex 2023 on December 5, 2022 at Trident Hotel, Mumbai. Technotex 2023, India’s premier show on technical textiles, being organised by the Ministry of Textiles in collaboration with FICCI, will be held in Mumbai from 22nd to 24th February 2023. Honb’le Union MoS for Textiles and Railways Smt Darshana Jardosh, also attended the meeting along with Shri Chandrakant Patil, Textiles Minister for Government of Maharashtra. I made a presentation
on the “Export Potential of Technical Textiles”. The Council also represented in the 13th annual conference TAG 2022 (Textile, Apparel, Garment), organised by FICCI on November 25, 2022 at Trident Hotel, Mumbai.
SRTEPC plays an integral role in maintaining Liaison with the Government Authorities and Members of Trade. We convey the requirements of members to the concerned Officials for quick redressal of the cases. I thank you for being a part of SRTEPC. In case you face any issues / queries you may send it to us at firstname.lastname@example.org for doing the needful accordingly.
Dhiraj Raichand Shah
Chairman - SRTEPC
I am glad to note that all our members are making their best efforts to increase exports of Manmade fibre textiles by facing all the challenges that prevails in the rapidly changing global markets.
Interactive Meeting with Hon’ble CIM & MoS
I am glad to inform you that the Council had organized an Interactive Meeting with Shri Piyush Goyal, Hon’ble Union Minister of Commerce and Industry, Textiles & Consumer Affairs, Food & Public Distribution and Smt. Darshana Jardosh, Hon’ble Minister of State for Textiles & Railways with the industry representatives & stakeholders in Surat on 21st November, 2022.
The meeting was well attended and the participants had discussed various issues related to exports of MMF textiles from Surat. The Hon’ble Ministers interacted with the participants & also sought suggestions from them.
New Secretary (Textiles)
I take this opportunity to extend a warm welcome to the new Secretary (Textiles) Smt. Rachna Shah. We are confident that under her dynamic leadership and co-operation, exports of textiles & clothing will achieve greater heights. We also extend our sincere thanks to the former Secretary (Textiles), Shri U.P. Singh for all his support which he had given us during his tenure.
Decline in overall exports
Merchandise exports declined by a steep 16.7% in October 2022 as exports dropped below the crucial US$ 30 billion mark for the first time since March 2021 to hit US$ 29.8 billion. This decline in exports was mainly due to an economic slowdown in key markets combined with an aggressive interest rate hikes by the US and the EU.
Exports of MMF Textiles
Exports of Man-Made Fibre (MMF) textiles reached US$ 3009.76 Mn in April-September 2022 as against exports of US$ 3316.43 Mn during financial year April-September 2022 registering a decline by (-) 9.25%. This decrease in exports is in line with the decline in the overall exports during this period.
Orders from leading countries like the US and EU are yet to pick up. Buyers from these markets have reportedly asked the exporters to suspend shipments till further advice.
We hope the situation will improve in the next few months. Further, with Joe Biden winning the mid-term elections and the Fed indicating that there will be no more interest rate hike, we hope the situation in the US will start improving. Exporters need to look at ways to diversify exports of MMF textiles to Latin America, West Asia and North America which appear as bright spots in these challenging times.
Export benefits for Trade in Rupee
The Government through an amendment in the Foreign Trade Policy has allowed exporters to avail export benefits such as RODTEP, RoSCTL and also fulfilment of exports obligations under schemes such as EPCG, Advance Authorization and DFIA in the case of exports against which payments are received in Rupee. This is a step in the right direction as it will insulate the exporters from exchange rate fluctuations risk. In addition, this measure will also boost exports to Russia, Iran, Bangladesh and Sri Lanka which are important markets for textiles.
PLI 2.0 to include Made ups
It is heartening to note that the Government is in the process of formulating the second version of the PLI scheme for textiles called as PLI 2.0. This scheme will have lower investment and turnover criterias. Moreover, the scheme will cover the Made ups sector in addition to Garments and textile accessories. The Council had participated in all the meetings held by the Ministry of Textiles to discuss PLI 2.0. The Council has proposed to include the Processing sector and Carbon fibres (technical textiles) under the scheme. The Council has also proposed for a lower value addition criteria. We hope the scheme will be announced at the earliest.
Export Promotion of Technical Textiles
The Council continued with its Meetings with senior officials in the Ministry of Textiles to discuss strategies to promote exports of Technical Textiles. The Council has started working on the HS codes, SION for technical textiles products, data compilation etc. The Council will very shortly begin its interactions with exporters of Technical besides conducting awareness programs & workshops/seminars at important centres across the country.
Source India – November 28 to 20, 2022 in Mumbai
The Council’s Reverse Buyer Seller Meet (RBSM) called as “Source India” will be held at NESCO, Goregaon, Mumbai from November 28 to 30, 2022. The event has evoked good response from the Exhibitors including from some leading textile Companies. I am glad that buyers from leading markets like the US, South Korea, Germany, Japan, Ethiopia, Thailand, Colombia, Brazil etc will be visiting “Source India”. I extend my best wishes to all the Exhibitors for a highly successful and fruitful interaction with the foreign buyers at “Source India”.
Dhiraj Raichand Shah
I am sure all our members are making their best efforts to sustain and increase exports of Manmade fibre textiles in these challenging times.
Exports of MMF Textiles
Exports of Manmade fibre textiles such as fibre, yarn, fabrics and made ups, after witnessing a healthy growth rate of 45.83% in 2021-22, have declined in the first 5 months of FY 23. Exports of Manmade fibre textiles reached US$ 2546. 90 million during April to August 2022 as compared to US$ 2767.47 million in the same period last year registering a negative growth rate of (-) 7.97%. This decline in exports is due to the spiraling energy prices, rising interest rates and the unfavourable & adverse ecosystem that has been created globally by the Russia-Ukraine war. Assessments about the situation that are likely to prevail in the export markets for the period from October – March 2023 are also not very encouraging mainly due to slowdown in major markets such as the EU and the US during this period. However, textiles buyers from some other promising markets like Mexico, Turkey, South Africa, Czech Republic, Spain & Jordan have started looking for their supplies from India to replace their purchases from China. I would strongly advise our members to take a note of this and start negotiating export orders with buyers in these countries.
Exports to Bangladesh
As we all know, Bangladesh is an important market for exports of textiles from India. Unfortunately, the country is facing a shortage of foreign currency. In this regard, State Bank of India has advised exporters to avoid settling deals with Bangladesh in dollar and other major currencies. The bank has further advised exporters to trade with Bangladesh in Rupee. I urge our members to please take note of this development and exercise due diligence while negotiating export orders with buyers in Bangladesh.
GST Exemption on Export Freights
The exemption from GST on export freight, that was introduced in 2018, has ended on September 30, 2022. Exporters will now have to pay GST on ocean freight on exports. This has further aggravated the situation for the exporters who are already reeling under the impact of cost escalations, high freight rates etc. The Council has represented to the Government to re-instate the GST exemption on export freight which will be a huge relief for the exporters. We hope our representation will be considered and the GST exemption on freight will be extended beyond September 30, 2022.
Depreciating Indian Rupee against the US Dollars
The depreciating Indian Rupee against the Dollars are not benefiting the exporters as is widely perceived. Several overseas buyers are reportedly seeking a reduction in the prices as they feel the Indian exporters are getting more Rupees against the dollars. Further, many buyers are insisting upon a longer payment period as demands in major markets like the US and the EU have slowed down. The period for payments against exports is 270 days. I urge RBI to grant flexibility in the period for realisation of export payments at least for few months till the situation in the export markets improves to some extent.
Export Promotion of Technical Textiles
With regard to export promotion of Technical Textiles, the Council has started working on preparing an Action Plan which will be executed very shortly. The Council held various Meetings with senior officials in the Ministry of Textiles and Ministry of Commerce & Industry to discuss strategies to promote exports of Technical Textiles. Very shortly the Council will begin its interactions with exporters of Technical besides conducting awareness programs & workshops / seminars at important centres across the country.
Source India – November 28 to 20, 2022 in Mumbai
The Council’s Reverse Buyer Seller Meet (RBSM) called as “Source India” will be held at NESCO, Goregaon, Mumbai from November 28 to 30, 2022. Many textile exporters including some leading companies have already confirmed their participation in this RBSM. The response from the buyers from many countries are also very encouraging going by the confirmations which the Council have received till date. We expect buyers from countries like the US, Germany, South Korea, Turkey, Colombia, Brazil, Ethiopia, Thailand etc. among other countries to visit “Source India” and have discussions and negotiations with the exhibitors. I would once again invite our members to participate in “Source India” and benefit from the presence of a large number of foreign buyers who will be visiting this RBSM.
Appeal to renew Membership with the Council
Finally, I would urge all those members who have still not renewed their membership with the Council to do so at the earliest.
I wish all of you a very Happy and Prosperous Deepavali.
Dhiraj Raichand Shah
I am happy to inform that the Government has assigned the task of export promotion of technical textiles to SRTEPC. I express my sincere thanks to our Hon’ble Prime Minister, Shri Narendra Modiji, Hon’ble Union Minister of Commerce & Industry, Textiles, Consumer Affairs, Food & Public Distribution, Shri Piyush Goyalji, Minister of State for Textiles, Smt Darshana Jardoshji and senior officials in the Ministry of Textiles. The Council will make its best efforts to promote exports of technical textiles and provide all kinds of assistance and guidance to the exporters.
After registering growth in exports of MMF textiles in 2021-22, it is a matter of concern that exports in the first four months of the current financial year i.e April- July have declined by 7.3%. This decline is mainly due to slowing global demand and energy crisis in major export destinations like EU, Bangladesh etc. I hope exports of MMF textiles will witness growth during October to March 2023.
A Meeting of the Board of Trade was held in Delhi on September 13, 2022 under the Chairmanship of Shri Piyush Goyal, Hon’ble CIM. I had attended the meeting along with the Executive Director, Shri S. Balaraju and Shri Ajay Sardana, Member, Committee of Administration of the Council. In the meeting, I had suggested for the extension of the EPCG Scheme in the forthcoming new Foreign Trade Policy, to cover Man Made Fibres and Yarns under the Interest Equalization Scheme and to enlarge the scope of Duty Credit scrips issued under the RoDTEP and RoSCTL Schemes by allowing payments of IGST against such scrips in addition to the Basic Customs Duty on exports. A detailed Note consisting of other suggestions was also submitted to the Ministry.
The Ministry of Textiles is considering to introduce second edition of the PLI scheme (PLI 2.0) which is likely to cover home textiles such as blankets and bedspreads and textile accessories like lace, button and zippers. I am sure the scheme will attract investments and reduce import dependence in the textile sector.
On the policy front, DGFT has extended the last date till 30.09.2022 for uploading of e-BRCs related to RoSCTL scrips for shipping bills filed up to 31.12.2020. I urge all our members to please take a note of this and do the needful. The Department of Revenue has also deleted the condition of recovery from the “transferee” of E-scrips issued under the RODTEP and RoSCTL schemes, in case of non-realization of export payments against the relevant shipping bills. I am sure this has come as a huge relief to the exporters.
With regard to RBI’s Circular to allow payments against Exports and Imports trade in Indian rupees, I would urge the Government to clarify as to whether exports benefits under the Foreign Trade Policy will be available on exports against Rupee payments.
The Council’s participation in the “18th Dhaka International Yarn & Fabric Show” held in Bangladesh from 31 Aug-3 Sep 2022 was successful. Sixteen (16) Indian Companies had participated in the event who have reportedly established contacts with good number of Buyers. Further, the Council participated in “Textillegprom” in Moscow, Russia from 6-9 September 2022 was also successful as eleven (11) Companies who had participated in the event had the opportunity to interact with Russian Buyers and explore business opportunities.
I would also like to inform the members that there are some International events being organized by the Council such as; IRANTEX in Tehran, Iran (21 to 24 Oct, 2022), Africa Sourcing and Fashion Week (ASFW), Addis Ababa, Ethiopia (4 to 7 Nov, 2022), “6th Edition of Morocco Fashion & Tex”, El Jadida, Morocco (7 to 10 Dec, 2022), IM INTERMODA, Guadalajara, Mexico (17 to 20 Jan 2023) and Colombiatex, Medellin, Colombia (24 to 26 Jan, 2023). I urge all members to participate in large numbers and take advantage of this great opportunity to enhance exports to these potential markets.
The Council is also organizing “Source India” which will be held at NESCO, Mumbai from November 28 to 30, 2022 which is a Reverse Buyer Seller Meet. A large number of buyers from different countries will be visiting to participate in this event. I would invite our members to participate in “Source India” which would provide good opportunities to interact with overseas buyers.
As you are aware, the Council takes up the issues faced by exporters with the Government bodies like Customs, DGFT, Department of Revenue, Banks etc. I am glad to inform you that many of the issues taken up by the Council have been resolved. I would suggest all our members to approach the Council in case they face issues with any of the departments and we assure of that all such issues will be taken up suitably.
In conclusion, I would like to take this opportunity to thank you for being a member of SRTEPC and allowing us to serve you. I earnestly request all our members to renew your membership for the year 2022-23 and continue to receive the services of the Council without any disruption. Assuring you of our best services at all times.
Dhiraj Raichand Shah
I am happy to inform that a Stakeholder’s Outreach Programme was organized in Surat focusing on India’s Trade Agreements with the UAE and Australia which is likely to benefit the Indian Manmade Fibre textiles sector by increasing our market share in both the markets. The Ministry has also informed us that we may witness many more such FTAs with other countries like UK, Canada, EU, etc. in the coming future.
A Stakeholder Consultation meeting on Launch of PLI 2.0 for Textiles Sector was held in which senior officials of Ministry of Textiles and other Industry representatives participated. Views from various stakeholders were put forward during the meeting and we are hopeful that some action will be taken in this regard.
I would like to mention that I attended an Interactive meeting organized by GCCI on Textile Leadership Conclave 2022 on 23rd April 200 and put forward some of the policy initiatives like setting up of International Standard Processing Houses for MMF Textile Segment. Focus on improving the weaving and knitting segment of MMF textiles sector in any of the Government forthcoming Schemes in line with PLI Scheme, continuation of the EPCG Scheme, Suitably reimburse the taxes and levies paid by the exporters of entire MMF textiles value chain with suitable RoDTEP rates and reimburse the taxes and levies on the Flexible Intermediate Bulk Containers (FIBC) by extending the RoSCTL benefits, include Manmade fibres, recycled fibres for the ATUFS benefits and extend the ATUFS till the new alternative scheme which is under consideration if it is delayed for implementation, Government intervention in resolving the Anti-Dumping cases in markets like Turkey, EU, Vietnam, etc. The Minister took note of all these issues and said that the same will be resolved soon.
I would like to inform our members that the DGFT Helpdesk support is now available 24x7 to facilitate the Trade and extend more proactive support to the exporting community and we must take advantage of it by sending any issues, suggestions or feedback on DGFT related matters with a copy marked to the Council. The DGFT has notified a new RoDTEP Schedule (Appendix 4R) for implementation w.e.f. 1st January, 2022 after aligning the earlier schedule with the Customs Tariff Schedule as per Finance Act, 2021.
During an Interactive Session, the DGFT met leaders of various Export Promotion Councils at Mumbai on May12, 2022 to discuss on the formulation of the Foreign Trade Policy. Addressing the meet, Shri Santosh Kumar Sarangi, DGFT agreed to consider some of the suggestions put forth for strengthening export growth by identifying potential issues and helping quality Indian products compete with global standards. The Office of DGFT and its Regional Authorities have known to take timely and fast decisions in resolving various issues of our Members. Members facing difficulty in receiving Export House Certificate were promptly attended by the Regional Authority of DGFT in Mumbai. The Council looks forward to assist its members on issues relating to your queries. Please send us your queries to email@example.com and firstname.lastname@example.org for representing the same to the Govt.
We, at the Council are always there to help and assist our members in every possible way. I, therefore, request all the members to renew their membership for the year 2022-23 to do so at the earliest and to avail to the services being offered by the Council.
DHIRAJ RAICHAND SHAH
I am pleased to inform you that the Council’s Annual Export Award Function held on 20th March, 2022 in Surat to felicitate member-exporters, for outstanding export performances during the year 2019-20 & 2020-21 was a great success. We at SRTEPC once again congratulate all the award winners and hope they will continue excelling in their work to boost our exports in the future. My best wishes to those who missed the awards this year and look forward to having them as winners next year. Friends, we need to increase our efforts to boost up our exports in the current challenging pandemic situation, specifically in textiles, considering that our objective as an industry is to reach US$ 8bn set by the Hon’ble Minister Of Commerce & Industry, Textiles, Consumer Affairs, Food and Public Distribution for 2022-23.
The Export Award Function coincided with the Mega Event, Source India 2022 which is the signature Event of SRTEPC. Over 70 international buyers from 25 countries and around 50 Indian companies exhibited their latest range of textile products. I am thankful to all the Buyers for having visited India and interacted with our Indian Exhibitors to conclude successful one-to-one business deals on-the spot.
Let me take this opportunity to express my heartfelt gratitude to Smt. Darshana Vikram Jardosh, Hon'ble Union Minister of State for Textiles and Railways for her gracious presence and encouraging words which inspired us all and I wholeheartedly thank her for accepting our invitation to be the Chief Guest and present the awards despite her busy schedule and also for inaugurating the Source India 2022. We are indeed grateful to the Hon'ble Union Minister for her support and assistance towards the interests of the MMF textile industry. I am grateful to all the Past Chairmen, Vice Chairmen and members of the Committee of Administration of the Council and other dignitaries for being present during the Function.
On the occasion of the Export Award Function, the Council had the privilege of conferring the Life Time Achievement Awards to Shri Sanjeev Saran and Shri Dilip Gaur. Their contribution to the MMF textile industry is commendable and hope to continue receiving their unstinted support and guidance to all the future endeavours of the Council. I take this opportunity to thank Reliance Industries Ltd., SAAM Textiles Pvt. Ltd., Sutlej Textiles & Industries Ltd., D'décor Exports Pvt. Ltd., D’décor Home Fabrics Pvt. Ltd., Deven Textile Industries Pvt. Ltd., Daman Polythread Ltd., Amber Exports (India), Atlas Exports (India), Rughani Brothers and Rachna Art Prints Pvt.Ltd. for supporting the Award Function. I would also like to take this opportunity to thank all, especially members of the Committee of Administration, Government Officials, Representatives of the various organizations and other attendees for their gracious presence which made the Export Award Function so special to all of us. I am thankful to the SRTEPC Team and the Officials for putting up these 2 Mega Programmes in such a short time of 2 months.
I wish to inform that a meeting held with the Hon’ble Minister of Commerce & Industry, Textiles to discuss the export targets for the current financial year 2022-23 was fruitful. The Export Target given for the MMF textiles segment for 2022-23 is US$ 6592 million and SRTEPC is confident to achieve this target and some of the challenges faced by the exporters of MMF were put forward to the Minister by SRTEPC. The meeting was attended by our SRTEPC former Chairmen and Officials
I would like to mention that SRTEPC Delegation led by its Executive Director, SRTEPC Officials, Past Chairman of PLEXCONCIL and representatives of IFIBCA met Smt. Darshana Vikram Jardosh, Hon'ble Union Minister of State for Textiles and Railways and discussed issues on FIBC, Technical Textiles, PLI, etc. The Minister patiently heard the members and assured them that she will do her best to resolve any issues in the matter.
Friends, the validity of the Foreign Trade Policy (FTP) 2015-2020 along with the Hand Book of Procedures (HBP) has been further extended upto 30th Sept, 2022 by the DGFT. Even, extension is granted for IGST and Compensation Cess exemption under Advance Authorization, EPCG and EOUs up to 30th June, 2022. Also, relaxations have been provided by the DGFT in compliance requirement related to EPCG Scheme in Chapter 5 of HBP 2015-20.
Friends, you may be aware that as global trade flourish, so do Trade disputes arise. Off late, we had received a Trade Complaint from our member about the overdue payment from his Buyer. The matter was taken up with the EOI and with its intervention and support, our member received part payments and is sure that the remaining payment too will be received. Yet in another case, the Council had received a Grievance from a buyer against one of our members. The matter was taken up with the member and the Buyer sent an apology letter for making wrong claims and even mutually agreed to settle the issue. I deeply appreciate every member of the Council’s team for showing relentless effort for taking up Trade Complaints rigorously for early settlement.
The Council has been receiving communications from some of our members informing about a Consultative Notice issued to them in continuation to JNCH’s Public Notice No. 20/2022 dated 25th March, 2022 on Non/Part Realisation of Export proceeds for Drawback during the period from 1st April, 2014 to 31st March, 2018.The Council is coordinating with the concerned exporters and seeking information from them based on the Customs query. Replies received from members shall be taken up with the concerned Customs appropriately and I humbly request our Members to send the inputs to the Council as per their appeal, to enable your cases to be resolved quickly.
SRTEPC is always at its forefront to serve its members. Request you to flag your issue/s and send it to the Council at email@example.com and firstname.lastname@example.org for representing your concerns to the Govt.
DHIRAJ RAICHAND SHAH
I am happy to inform you that we are at last able to organise after 2 years the Export Award Function which was delayed due to severe impact of covid pandemic and applicable restrictions from the Government.
I am glad to inform that this year “Export Award Function” is coinciding with the “Source India 2022” which is the signature Event of SRTEPC. This is the first of its kind in the country. “Source India” is the leading international event in the country in Manmade fibre textiles sector organized by SRTEPC annually. This time we are inviting over 75 international buyers from 30 countries and over 50 Indian companies are exhibiting latest range of textile products. I hope that this flagship event will also help us in meeting the export targets set by the Government for the financial year 2022-23.
I am also delighted to inform the exporting community that the exports have been growing significantly after the normalisation of the pandemic situation. Ministry had set an export target of US$6139 million of which as per the January data we have already achieved around 95% and I am confident that with all of your support and dedication we will be surpassing the export target by around US$200 million.
I may also mention that the participation in the 18th Istanbul Yarn Fair in Turkey has been fruitful as there were around 6000 footfalls of quality buyers during the 3 days event and most of our companies who participated in the event received good enquiries and some of them could even book on-the-spot orders.
Friends, the long-awaited decision on the extension of Interest Equalisation Scheme (IES) for Pre and Post Shipment Rupee Export Credit (Scheme) has finally been announced by the Govt. of India. SRTEPC thanks the Govt., various Ministries and RBI for enabling to extend the IES till 31st March, 2024. The extension takes effect from 1st October, 2021. However, the rates under IES stands revised to 3% for MSME manufacturers exporters exporting under any HS tariff items and 2% for Manufacturer as well as Merchant exporters exporting under 410 HS lines. RBI has excluded 6 Tariff lines pertaining to Telecom Sector.
I am grateful to the DGFT for always providing handholding support to the Members of Trade. DGFT has further extended the period for submitting applications for Scrip based FTP schemes. Now, the last date for submission of online applications under MEIS & 2% additional ad hoc incentive has been extended till 30th April, 2022 and for RoSCTL & RoSL till 15th March, 2022. In this regard, members are urged to kindly avail the benefit by doing the needful at the earliest since applications after the last date will become time barred. I also appreciate the prompt efforts undertaken by the Officials of O/o Addl. DGFT (Mumbai) in resolving the long pending issues of members with regard to surrendering of the New IEC based on PAN Number.
Members have also started receiving their long pending IGST refunds and Drawback claims from JNCH Customs. I extend my gratitude to JNCH Officials for resolving the issues faced by our members.
We at SRTEPC are always there to serve our members. You are therefore, requested to kindly send the issues to email@example.com and firstname.lastname@example.org for representing your concerns to the Govt.
I earnestly once again request you to renew your membership for the year 2021-22 by March end so that you will continue to receive Council’s services without any disruption of your membership with the Council.
DHIRAJ RAICHAND SHAH
I am glad to inform that after almost 2 years of covid-pandemic crisis that paralyzed almost all manufacturing sectors, the global trade has been steadily improving in view of encouraging buildup in consumer confidence with increasing vaccination drives worldwide. Gradually the industry has been towards normalcy and there has been turnaround in manufacturing as well as in exports. Our exports are growing at double digit rates and global trade has already been surpassed the pre-pandemic levels of 2019. In case of MMF and MMF blended textiles also we are witnessing encouraging growth trends within India and globally.
I would like to mention that exports of Indian Manmade Fibre (MMF) textiles for the period of April-September 2021-22 were US$ 3311.25 million vs US$ 1795.56 million in the corresponding period of the previous year, showing an encouraging growth of 84.41%. The Top Ten markets for Indian MMF blended textiles during April-September 2021-2022 were USA, Turkey, UAE, Brazil, Bangladesh, Egypt, Sri Lanka, Italy, Germany and Belgium.
I am happy to inform that SRTEPC organized participation of 15 Indian companies in INTEX SOUTH ASIA in Sri Lanka on digital platform from 15 to 19 November, 2021. There were about 105 Exhibitors and 1200 buyers of textiles registered on the platform from different countries and regions. Intex South Asia has been successfully showcasing manufacturers and suppliers of fibers, yarns, apparel and denim fabrics, clothing accessories and allied services to discerning buyers in South Asia and other international economies. It fulfills the growing demand for innovative, trendy fabrics & accessories for South Asia - one of the biggest apparel manufacturing regions in the world. I would like to extend my sincere gratitude to the Chief Guest – Shri Upendra Prasad Singh, Secretary Textiles of Ministry of Textiles, Government of India for inaugurating the Event along with Chairman & Chief Executive, Sri Lanka Export Development Board, Vice Chairman & CEO, Export Promotion Bureau, Bangladesh and FICCI President. I wish to extend special thanks to the Team of Organizers of Intex South Asia.
It’s a great pleasure to state that SRTEPC has also organised participation of 19 member companies in virtual Buyer-Seller Meet in Brazil being held during November 23 & 24, 2021.
As you are aware, Council is also organizing participation of member companies in Heimtextil, Frankfurt, Germany, Intermoda, Mexico & Colombiatex, Medellin during January 2022 in which most of the arrangements have been made. Council will also participate in Istanbul Yarn Fair, Turkey, during February 2022 and I urge the member companies to take advantage of these Events that is happening physically after 2 years.
Friends, as you may be aware that the last date for submitting applications under MEIS, ROSCTL, ROSL and 2% additional ad hoc incentive has been notified to be 31.12.2021. Therefore, no further applications would be allowed to be submitted and they would become time-barred after the last date i.e. 31.12.2021 including late cut provisions for submitting claims at a later date. I thank the DGFT for their kind support extended to the Trade and Industry in this regard and also urge all members to avail this opportunity at the earliest.
I thank the Government and Ministry of Chemicals and Fertilizers (Dept. of Chemicals and Petrochemicals) and Textiles for granting an extension of six months for implementation of BIS Standards w.e.f. from 8th October, 2021 (date of the Official Gazette Order). In this regard, you are requested to fasten the process and comply within the prescribed time frame.
Further, relaxations have been provided in timelines for submitting UID application under ATUFS due to lockdown in COVID-19 pandemic (second wave). I extend my gratitude to the Ministry of Textile and O/o Textile Commissioner and also, request the concerned members to ensure that their bank forwards the application to iTUFS portal by 20th January, 2022 since condoning delay for submission/ forward UID application will not be allowed in future by the O/o Textile Commissioner.
The Ministry of Finance has announced the revised GST rates on textile products and job work w.e.f. 1st January, 2022. Although this revision may help to rectify the existing Inverted Duty Structure in the entire MMF Textile value chain, if our members have any issues, they are requested to write to us at email@example.com and firstname.lastname@example.org
I appreciate the prompt support extended by JNCH officials in resolving the long pending issues of some of our members related to Drawback claims and GST/ IGST refunds.
May I request all Members to renew your Membership with the Council, if not done so, in order to avoid cancellation of your RCMC, thus enabling us to provide you with continued and better services.
DHIRAJ RAICHAND SHAH
I am glad to inform you that SRTEPC delegation comprising of Shri Bhadresh Dodhia, Vice-Chairman, Shri S. Balaraju, Executive Director and I called on Commerce Secretary Shri B.V.R Subrahmanyam on 12th October, 2021 at the Ministry office in New Delhi. We apprised the Commerce Secretary of the latest export scenario and informed that by September around 50% of export target fixed for the MMF textiles exports have been achieved. I also assured the Secretary that since in the two quarters towards the end of the year exports are much higher than the earlier quarters, the Council is confident of surpassing the export target. We discussed various issues like increasing the rates of RoDTEP for the entire MMF textiles value chain, extension of Interest Equalisation Fund Scheme till the new Foreign Trade Policy is announced, etc.
We also met the Textiles Secretary, Shri Upendra Prasad Singh on 12th October and discussed about the PLI, RoDTEP, New alternative scheme for ATUFS and other issues faced by MMF textile industry. We also placed before the Secretary some of the challenges being faced by the MMF textiles sector which are hampering the exports of MMF textiles and urged Secretary Textiles to take action for promotion of MMF textile exports.
I am glad to inform that the Council successfully organized participation of 13 member exporters in the Alltex Expo, Kiev, Ukraine, held from October 6-9, 2021. It may be noted that this is the first physical Exhibition held since the pandemic year and some of the participating companies have been successful in negotiating business orders with the buyers. I would like to take this opportunity to thank Shri Ambarish Vemuri, SS(Pol) &HOC, Embassy of India in Kyiv, Ministry of Commerce & Industry and Ministry of Textiles, Govt. of India for their support in helping us organize the participation of our member-exporters.
I may inform that despite various constraints in global trade, structural and fiscal issues in the domestic sector due to the pandemic, exports of Indian MMF textiles are growing in double digit level. As per the latest data, exports were around US$3000 million during April-September 2021 which is around 49% of the export target of US$6139 million given to us. Exports are generally more for the last quarter of the year. We are optimistic that the global scenario will further improve in view of aggressive drive taken by countries over the world and our exports will reach to new heights and we will exceed the export target.
The numerous requests made by the Council for the extension of Export Obligation Period of Advance and EPCG Authorisations have finally been granted by the DGFT on 23rd September, 2021. DGFT has provided an additional option to exporters to avail extension in export obligation period till December 31 this year in case of specified advance authorisations and also authorisations under the Export Promotion Capital Goods (EPCG) scheme without any composition fees. This benefit is, however, subjected to a 5% additional export obligation on balance exports to be fulfilled. I am really grateful to the DGFT in this regard.
As announced in the Union Budget 2021-22, the Government has approved the setting up of 7 PM MITRA parks on 6th October, 2021. I congratulate the Hon’ble Prime Minister, Hon’ble Finance Minister, Hon’ble Textiles & Commerce & Industry Minister for their initiative in setting up PM Mitra Parks. I am sure that this combined network will help in further growth of textile segment in the economy in general.
Friends, we at the Council are well aware of the various issues troubling the exporters owing to pending Drawback claims, IGST refunds from JNCH and a long pending matter of issuance of EPCG Licence from O/o Addl. DGFT (Mumbai) which have been resolved. I appreciate the continuous support extended by JNCH and O/o Addl. DGFT (Mumbai) to resolve issues of our members.
I thank the US Consulate, Mumbai for their excellent support provided to our member for allowing them to visit USA by accepting the National Interest Exception application under Significant Economic Activity Category.
I would like to mention that the existing FTP 2015-20, which was valid up to March 31, 2021 was later extended up to September 30, 2021, due to COVID-19. However, DGFT has now further extended the validity period of the Foreign Trade Policy 2015-20 along with the HandBook of Procedures till March 31, 2022. The Council requests all our members to kindly take a note of the same. Members are requested to flag their issues to us at email@example.com firstname.lastname@example.org for representing your concerns to the Govt.
I also request all Members to renew their Membership with the Council to avail all its benefits, if at all it is not renewed.
I would also like to wish all our member-exporters a VERY HAPPY DEEPAWALI AND A PROSPEROUS NEW YEAR. I am sure that the Festival of Lights will bring in good times for the export sector in general and the MMF textile industry in particular.
DHIRAJ RAICHAND SHAH
It is pleasure to note that markets have started opening up after a long period of covid pandemic which turmoiled the business community. The prevailing scenario shows some signs of improvement in exports. Exports of Manmade yarn, fabrics and made-ups accounted to US$ 1770.77 million during April – July 2021 witnessing a growth of 126.5% as compared to the same period of the previous year. However, compared to the pre-covid period between April-July 2019, exports witnessed a growth of 13.93% during April – July 2021. According to the Ministry of Commerce and Industry, export targets for the MMF textiles falling under the purview of SRTEPC is US$ 6.12 billion for 2021-22. During July 2021 as per the latest provisional data released by the DGCI&S, exports of Manmade fibre Textiles has shown growth by 59% as compared to July 2020.
In a maiden initiative, the Hon’ble Prime Minister Shri. Narendra Modi interacted with stakeholders of the trade & commerce sector and Heads of Indian Missions abroad through video conference on 6th August 2021. The Hon’ble Commerce and Industry Minister, Shri. Piyush Goyal and Hon’ble External Affairs Minister, Dr. Subrahmanyam Jaishankar were also present during the interaction. Besides the members of the Export Promotion Councils, the virtual meeting was also attended by Secretaries of various departments, state government officials, and Chambers of Commerce. Under the mentorship of Shri Dhiraj Raichand Shah, Chairman, SRTEPC participated in the virtual meeting with Hon’ble Prime Minister from two Centres viz., Mumbai and Surat, Gujarat. At the Mumbai Centre which was organised at Ambassador hotel, was presided over by Shri Bhadresh Dodhia, Vice-Chairman whreas at Surat, centre of SRTEPC was at Le Meridian Hotel and it was presided over by Shri. Dhiraj Raichand Shah, Chairman, SRTEPC. While addressing the virtual meeting with the industry stakeholders, heads of Indian Missions and others, the Hon’ble Prime Minister informed that this is the time for Azadi ka Amrit Mahotsav. Along with celebrating the 75th festival of independence, this is an opportunity to build a clear vision and roadmap for future India and Export Ambitions for which all the stakeholders play a major role. The SRTEPC Chairman, Shri. Dhiraj Raichand Shah, welcomed the Hon’ble Prime Minister Shri. Narendra Modi on behalf of the manmade fibre textile fraternity and congratulated for the initiative to interact with the textile stake holders including the MMF textile fraternity and he also briefed about the current growth in export scenario compared to pre-covid level.
Hon’ble Minister of Textiles, Hon’ble Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution, Shri. Piyush Goyal convened a meeting with EPCs, Commodity Boards and Authorities on 19.8.2021 (Thursday) at Hotel Trident in Mumbai to discuss the measures to enhance and increase the exports. Commerce Secretary, Shri. B.V.R Subrahmanyam, DGFT, Shri. Amit Yadav were also present during the Meeting. Shri. Bhadresh Dodhia, Vice-Chairman, SRTEPC, Shri. S. Balaraju, Executive Director and Shri K. Baruah, Joint Director participated in the Meeting. The meeting was held in Hybrid mode wherein President/Chairman/ED/DG of EPCs who are residents of Mumbai were invited to participate in the meeting physically and other EPCs/CBs/Authorities who are based outside Mumbai joined the meeting through Video Conference. Vice-Chairman, Shri. Bhadresh Dodhia informed the Minister about the current export scenario and prevailing challenges in the MMF textiles segment among other submissions.
SRTEPC felicitated Smt. Darshana V. Jardosh, Minister of State for Textiles and Railways in her constituency, Surat on her taking over charge of the Ministries. Shri. Dhiraj R. Shah, Chairman, SRTEPC gave stock of the industry and requested the Minister to provide guidance and handholding support to the MMF textiles segment. He also appealed for her support in the growth of Indian MMF textiles segment.
As regards the PLI Scheme, I interacted with Shri. Upendra Prasad Singh, Secretary Textiles during a Virtual Meeting and informed him about the resounding appreciation of the Scheme among the Stakeholders which is really going to boost the production and exports of MMF Garments, MMF Fabrics and Technical Textiles. I also thanked him for kind consideration of the fabrics segment in the PLI Scheme. Various submissions of our member-exporters were put forward for consideration. Some leading member-exporters such as Reliance Industries Ltd., Banswara Syntex, Century Enka, Prafful Overseas Pvt. Ltd., Welspun Group among others have shown interest in investment under the PLI Scheme. Requested for an appeal for consideration on all the said issues.
The Council organized a Webinar on opportunities in post pandemic Covid - 19 and latest GST issues on 30th July 2021 and deliberated on two currently important topics, viz., Emerging trends and opportunities in MMF textiles post pandemic Covid - 19 and Responding to the Departmental Audits and Notices relating to refund claims viz., DBK, Excise, GST/IGST, Issues arising out of latest decisions & changes etc. The Webinar was quite enlightening for our Members to understand the latest market scenario and emerging areas of opportunity and as well, clarify their doubts on GST/IGST, refunds, latest notifications, etc.
SRTEPC celebrated India’s Handloom heritage under the guidance of our Hon’ble Prime Minister, Shri. Narendra Modi, Hon’ble Minister of Textiles, Shri. Piyush Goyal and Hob’ble Minister of State for Textiles, Smt. Darshana Jardosh. In the 75th year of Independence Day, PMO, Shri. Narendra Modi urged all of us to buy handloom products and showcase their grandeur by associating with My Handloom My Pride. On the occasion, Shri. Dhirubhai Shah honoured the illustrious “Art of Weaving” - a signature of India’s Handloom heritage and saluted the expert hands, intricate designs, astonishing varieties, timeless tradition under the guidance of Modi Ji, Goyal Ji and Jardosh Madam. Shri. Dhirubhai Shah expressed gratitude towards the weavers of India on the occasion of its Celebration Day.
The Council participated in Texworld New York City / Apparel Sourcing New York City / Home Textile Sourcing Fair in USA scheduled from 20th to 22nd July 2021 on digital platform successfully, wherein 12 member-companies of the Council participated in the Fair.
Friends, the much-awaited RoDTEP Rates have finally been notified on 17th August 2021 with suitable guidelines. A WTO Compliant Scheme is going to be a long-lasting Scheme, which will come as a huge relief for exporters and remove uncertainty from the minds of the Trade thereby forging new contracts with the foreign buyers. This Scheme would give a boost to Indian exports, making our products more competitive globally. RoDTEP Scheme aims to refund, currently un-refunded duties/ taxes/ levies, at the Central, State & local level, borne on the exported product, including prior stage cumulative indirect taxes on goods & services used in production of the exported product; and such indirect duties/ taxes/ levies in respect of distribution of exported products. The MMF Textile value chain from Chapters 54 – 60 are covered under the RoDTEP while RoSCTL will cover Chapters 61 – 63. In this regard, I express my sincere gratitude to the Prime Minister, the Ministry of Commerce & Industry, Textiles and Finance. I would also like to thank our members for their kind co-operation and support in substantiating the data, as and when required by the Council.
The Council is extremely grateful to the DGFT for further extending the period for IEC updation till 31st August 2021. I once again urge all our members to update their IEC within the prescribed time limit to avoid IEC deactivation.
I would also like to thank the Sahar Air Cargo Complex and JNCH for acting quickly in releasing the pending Duty Drawback claims and IGST refunds of our members. The continuous follow-ups made by our Council’s team in representing unresolved issues with the concerned authority is too appreciated.
The Council continues to draw attention of the government towards the various representations received from our members pointing out the difficulties faced by them on procedural and policy issues. Looking forward to hearing your issues, kindly write to us at email@example.com and firstname.lastname@example.org.
As you are aware, the Government seeks suggestions on Pre-Budget Proposals from the EPCs/ members of Trade every year for inclusion in the Budget. Likewise, this year too the Department of Commerce has sought suggestions/inputs on Pre-Budget Proposals 2022-23. The Council has sent a communication to our members in this regard. Members are requested to please co-operate and send your suggestions/inputs in the required format to the Council at email@example.com, firstname.lastname@example.org, email@example.com & firstname.lastname@example.org latest by 31st August, 2021.
We are pleased to inform you that the Council is organizing its Annual Export Award Function in the last week of September 2021(tentative) to recognize and honour the outstanding performance of its member exporters for the financial years 2019-2020 & 2020-2021.
The Council is organizing participation of its members in Alltex Expo in Kiev, Ukraine from 6 to 9 October 2021 under the MAI Scheme with the support of Ministry of Commerce & Industry and Ministry of Textiles, Govt. of India with a participation of 15 member-companies. I request interested members to send their Application Form to the Council.
I request all Members to renew their Membership with the Council to avail all its benefits, if at all it is not renewed.
DHIRAJ RAICHAND SHAH
Friends, hope you all are safe and doing well!
As due to the ongoing Covid pandemic, the exports of textiles has been severely affected and observed a decline in MMF textiles. The estimated exports of Manmade Fibre textiles during April 2020 to March 2021 shows a decline of – 19% as compared to the previous year. There has been fall in exports of all the four segments of MMF textiles, such as fibre -28%, yarn – 15%, fabrics – 18% and made-ups - 23%.
Though the current export scenario is not much encouraging still due to the ongoing second wave of pandemic, it is believed to get normalized in next few months. I would like to convey to our members to not to dishearten themselves due to the current crisis – as textile industry will boom up once it is normalized.
The Council is putting all its efforts to resolve exporters trade related issues with the Ministry. As the exporting community is greatly affected, Commerce Ministry had organized interactive meeting with Shri. Piyush Goyal, Hon’ble Minister of commerce & Industry through video conference.
Shri Amit Yadav, Director General of Foreign Trade welcomed Shri. Piyush Goyal, Hon’ble Minister of Commerce & Industry, Shri. Anup Wadhawan, Commerce Secretary and the delegates of all EPCs.
Commerce Secretary in his opening remarks stated that in spite of initial setback, overall export performance during 2020-21 was reasonably well and thereafter, requested all EPCs to raise their views/points in brief. All EPCs including SRTEPC have presented the issues related to their respective sectors. Immediate Past Chairman, Shri. Ronakk Rughani, Executive Director, Shri. S. Balaraju and myself attended the Webinar.
Myself and Shri. Ronakk Rughani, Immediate Past Chairman SRTEPC presented the following points related to exports of MMF Textile during the Meeting and requested to consider the issues favourably:
Double weightage to be given for the smaller exporters while considering merits for status as Star Export Houses.
Extend EPCG Scheme in the new FTP.
Threshold limit of the proposed PLI Scheme be fixed at 20% and include entire MMF textile value chain under the Scheme.
Timely refund the IGST and DBK benefits.
Release the MEIS rewards to the exporters.
Announce the RoDTEP rates and include entire MMF textile value chain under the Scheme.
Extend the Interest Equalisation Scheme till announcement of the new FTP.
Rectify the Inverted Duty Structure existing in the MMF textile Segment.
Bring down the Skyrocketing freight charges.
Resolve undue transit shipment delay.
Conclude the India – EU FTA.
(Also, a separate representation has been put up to MoC&I on these points in detail.)
Considering the high potential for exports of MMFT products to Germany, the Council had a promising Webinar with Consulate General of India Munich, Germany to discuss the possibilities of holding a buyer seller meet between Indian exporters & German buyers. The meeting was attended by the Consul General Mr. Mohit Yadav, Shri. N. Ramakrishnan – Consul (C.I.P) and Ms. Mirella Fuchs (Commercial) from the Consulate General of India and Shri. S. Balaraju, Executive Director and other officers from SRTEPC. The Council also updated the Indian mission about its plans to participate in Heimtextil exhibition to be held in Frankfurt, Germany from 11 to 14 January 2022, which is one of the biggest and most prominent international events for home textiles.
The Council continues to receive grievances from members regarding non-receipt of Drawback claims, IGST refunds and clearance of shipments from the Customs. I am pleased to inform you that many of our member-exporters have received their part payment of IGST claims from the CBIC, and also their pending Duty Drawback claims from Sahar Air Cargo Customs and Jawaharlal Nehru Customs House.
In another case, the Council sent a clarification to the Customs on the genuineness of the GST Paid Certificate issued to our member exporter since their shipments stuck at the Customs. On receipt of the confirmation from the Council, the Customs cleared their shipments. In this connection, I am grateful to the CBIC and Customs for their continued support in resolving the issues of our member-exporters, and also, appreciate the efforts undertaken by our Council’s team in taking up the matters with the authorities rigorously.
I request all Members to renew their Membership with the Council to avail all its benefits, if at all it is not renewed.
Dhiraj Raichand Shah
It is indeed a privilege for me to take over as the Chairman of the Council. I thank each Member of the Committee of Administration of the Council individually for reposing their trust in me.
I appreciate the efforts being undertaken by the Government of India for the safety of the people during the on-going pandemic. However, exporters have been facing challenges due to the closure of their offices like complying with the delivery schedules and other compliances. Subsequent to the lockdown/curfew guidelines as announced on 4th April, 2021, the Council had requested the Government of Maharashtra to allow 25% of the workforce in private offices of Maharashtra and considering exports sector as Essential Services. Thereafter, Export/Import of all commodities has been included in the List of Essential Services as per Order dated 13th April, 2021. In this regard, I would like to extend my sincere thanks to the Government of Maharashtra and also, request to hear the plea of the exporters for allowing private offices to work with 25% of the sanctioned strength.
The Council continues to receive representations from our members on various issues, all such issues are taken up with the Department and are also being suitably addressed. Further, we are grateful to Air Cargo Complex (Sahar) for disbursing the long pending Duty Drawback claims of two of our member–exporters. I thank the Officials of Air Cargo Complex for doing the needful and also, appreciate the concerted efforts undertaken by our Council’s team in rigorously following up with the matter.
Friends, the Council over the years has been striving hard to make its presence visible and its role relevant for the benefit of the Man Made Fibre Textile Industry. Though the pandemic time has been really challenging and testing period for all of us, there is tremendous scope to enhance our exports of MMF Textiles. It would be the endeavour of the Council to face the tough challenges ahead and exploit the emerging opportunities to carve out a greater share in the global MMF textile market and contribute increasingly to the national exports by targeting newer and potential markets in the coming years through Export Promotional Programmes and scale up exports to greater heights. To accomplish this goal, I seek wholehearted co-operation and staunch support from all the Members and particularly the Members of the Committee of Administration. I also request your active and more involved participation in large numbers in Council’s events to make it highly successful. I request all Members to renew their Membership with the Council to avail all the benefits of the Council.
It will be my earnest efforts to put forth the problems of the Members from all sections in every way and voice their concerns on all fronts with the various authorities at the appropriate level for solutions.
I take this opportunity to congratulate Shri. Ronakk Rughani, the outgoing Chairman and recall his unstinting support with deep gratitude. The Council has benefited from his foresighted actions and hard work during his tenure and also seek his active and continued support and association in all our future efforts to take exports of MMF textiles further to newer heights.
I seek suggestions and views from the Members so that the activities of the Council can be further
improved for their benefits.
Dhiraj Raichand Shah