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YR 21 ISSUE 08
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE I AUGUST 2021 100
FIEO PRESIDENT AND AEPC CHAIRMAN DR A SAKTHIVEL
CALLS UPON HON’BLE VICE PRESIDENT SHRI M VENKAIAH NAIDU
Y
ITALY
S COUNTR
FOCU
HON’BLE COMMERCE AND TEXTILES
MINISTER SHRI PIYUSH GOYAL ON
BOOSTING EXPORTS
MEETING HON’BLE
CHIEF MINISTER THIRU MK STALIN
RoSCTL ROAD TO AATMANIRBHAR BHARAT
APPAREL | CHAIRMAN’S MESSAGE
Dear Friends,
I
ndian exports registered a historic monthly record of
$35.17 billion in July 2021. The apparel exports, too,
crossed the pre-pandemic levels just as we said it
would. RMG of all textiles grew 30.52% yoy in July 2021,
surpassing that of the same month in 2019.
To further accelerate the recovery and rise of Indian
exports, I had the opportunity to meet Hon’ble Vice
President Shri M Venkaiah Naidu and Hon’ble Commerce
and Textiles Minister Shri Piyush Goyal. I apprised the
Hon’ble Vice President about AEPC’s initiatives during
the pandemic and issues facing Indian exports.
The meeting with Shri Goyal, who recently took charge of
the Textiles Ministry, lasted a good 75 minutes. Discussing
at length the present status of the Indian apparel industry,
its position in the global market, opportunities, constraints visited our Apparel House on 14 July 2021, released the
and our recommendations, I submitted a ‘Concept Note on Compendium on MMF Garments. He appreciated the
India’s Apparel Exports’ and a note on ‘Issues of Apparel compendium that covers details of all 90 MMF garment
Exporters & Recommendations’. Shri Goyal assured full HS lines. It has the details of fabrics used to produce the
government support saying that the textile sector has a 90 HS lines and their supplier details.
huge impact on job generation and economy. I also met our new Commerce Secretary Mr BVR
I sincerely thank Hon’ble Minister Smt Smriti Zubin Subrahmanyam, Revenue Secretary Mr Tarun Bajaj,
Irani who, during her tenure as the Textiles Minister, Financial Services Secretary Mr Debasish Panda, apart
provided unstinted support that helped us sail through one from other senior officials to discuss various export
of the most difficult periods of our lives. I am delighted to related issues.
share that the government has removed the anti-dumping I have requested Hon’ble Commerce and Textiles
duty on viscose staple fibre. She was kind enough to Minister Shri Piyush Goyal to hold an Inter-Ministerial
initiate a probe in the matter on our request. Steering Committee meeting under ATUFS and include
Another major development is the extension of RoSCTL AEPC in the meeting to help resolve cases of pending
scheme till March 2024. We are extremely grateful to subsidies.
the Hon’ble Prime Minister and Hon’ble Ministers of The Council remains committed to work round the
Commerce & Industry, Textiles and Finance. The scheme clock in the interest of the apparel exporters. We held a
will refund all embedded taxes and make our products webinar on ‘Sourcing of Polyester Fabric’ in association
globally competitive, a necessary step for achieving with Reliance Industries Ltd and an online B2B meeting
‘Aatmanirbhar Bharat’. with Israeli fashion company Fox Group with support
While we bring to you an in-depth story on RoSCTL in from the Embassy of India in Tel Aviv.
the current edition, I met Joint Secretary (Drawback) Mr As Indian exports break all old records, I call upon
Nitish K Sinha in the Ministry of Finance on 29 July 2021 every member to grab a larger share in the global apparel
to discuss the timelines and modalities for continuation of trade. Please drop in your suggestions at chairman@
the scheme. He advised exporters to register to ICEGATE aepcindia.com.
to ensure that RoSCTL claims can be made as soon as the
scheme reopens. Dr A Sakthivel
Textiles Secretary Mr Upendra Prasad Singh, who
Chairman, AEPC
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021 /1
APPAREL | EVENTS CALENDAR
EVENTS
1 Aug - 30th Sept 2021
CALENDAR
Oct 2021
SOURCING AT MAGIC, LAS VEGAS, USA APPAREL TEXTILE SOURCING, CANADA
(DIGITAL TRADE SHOW)
Sept 2021 23-25 November, 2021
INDIA TEX TREND FAIR(ITTF), INTERNATIONAL SOURCING
TOKYO, JAPAN EXPO AUSTRALIA (ISEA)
3-6 Sept, 2021 Feb 2022
WHO’S NEXT PARIS, FRANCE SOURCING AT MAGIC,
LAS VEGAS, USA
7-9 Sept, 2021
PURE LONDON (PURE ORIGIN), UK
2 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021
APPAREL | CONTENTS
34 | ATDC DIGEST
• ATDC partners with HCL Foundation for
CSR activities
36 | INDIA NEWS
YR 21 | ISSUE 08 | AUGUST 2021 | Pages 60
• Developing roadmap for growth of
Indo-Pacific
• Khadi secures trademark registrations
in Bhutan, UAE, Mexico
01|CHAIRMAN’S MESSAGE
• Logistics division drafts roadmap for
freight smart cities
YR 21 ISSUE 08
02 | EVENTS CALENDAR
• Shri Piyush Goyal takes charge of
04 | KEY STATISTICS Ministry of Textiles
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE I AUGUST 2021
FIEO PRESIDENT AND AEPC CHAIRMAN DR A SAKTHIVEL
100
• RMG exports grow 24.7% in June
• Advisory panel for open network for
CALLS UPON HON’BLE VICE PRESIDENT SHRI M VENKAIAH NAIDU • Textile manufacturing jumps 165% digital commerce
in May
• FM hails CBIC for fight against
pandemic
06 | UPFRONT
• 15 more startups join unicorn club • Govt includes retail, wholesale trades
S COUN
TRY
in first half of 2021 as MSMEs
ITALY
FOCU
08 | GLIMPSES OF • IFSCA issues framework for setting up
ITFS platform
KEY EVENTS
• Shri Goyal pushes for innovations in
HON’BLE COMMERCE AND TEXTILES
MINISTER SHRI PIYUSH GOYAL ON
10 | COVER STORY textiles sector
BOOSTING EXPORTS
• RoSCTL road to Aatmanirbhar • Shri Narayan Tatu Rane assumes
Bharat charge of MSME ministry
14 | SPECIAL FEATURE 44 | GLOBAL NEWS
• Fashioning a sustainable world
• GUCCI announces 2021 class of
16 | FOCUS COUNTRY
MEETING HON’BLE
CHIEF MINISTER THIRU MK STALIN changemakers scholars
• Italian economy headed for sharp • LVMH partners Weturn for textile
RoSCTL ROAD TO AATMANIRBHAR BHARAT recovery recycling process
• GUCCI ties up with Intesa Sanpaolo
CHAIRMAN AEPC 22 | COUNCIL AFFAIRS for sustainable supply chain
Dr A Sakthivel • AEPC appreciates “enterprising • LVMH sponsors ‘Cultures and
CHAIRMAN EP exporters’ for historic feat Creation’ fashion show
Mr Sudhir Sekhri • AEPC Chairman meets Revenue • Ralph Lauren unveils wearable cooling
Secretary on export issues technology for team USA
Secretary General, AEPC
• AEPC meets Tamil Nadu Textile • HanesBrands appoints Latonya
Dr LB Singhal
Minister for support Groom as VP
ADVISOR AEPC • AEPC requests for commercial tax • Jaypore forays into menswear
Mrs Chandrima Chatterjee division in Tirupur • Louis Philippe launches double
• AEPC seeks clarifications on defence mask
PUBLISHER
ATUFS issues • Prada, Zegna acquire Filati Biagioli
Apparel Export Promotion Council
• AEPC seeks separate export policy Modesto
Apparel House, Sector-44,
for Tamil Nadu • Burberry ties up with Naomi for TB
Institutional Area, Gurugram,
• AEPC, RIL hold webinar on summer collection
HARYANA – 122003.
sourcing of polyester fabric • Puma, Goop unveil limited-edition
Phone: 0124-2708000
• Retirement ceremony of collection
www.aepcindia.com
Mr KS Bisht • UNDP, BGMEA to continue
• B2B meeting with Israeli fashion collaboration in SDGs reporting
chain Fox Group • Uniqlo collaborates with Tate Modern for
• Extension of IES export credit to T-shirt collection
benefit apparel exporters: AEPC
• New Commerce Secretary meets 54 | ADVANTAGES OF AEPC
Content & Design EPCs in Bengaluru MEMBERSHIP
Vanman Communications Pvt Ltd • Textiles secretary releases
Email: vanmancommunications@gmail.com compendium on MMF
56 | GST UPDATE
Printing Press garments 58 | NOTIFICATIONS
Royal Press, New Delhi
33 | CIRCULAR 60 | MEDIA COVERAGE
Email: royalpress2014@gmail.com
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021 /3
APPAREL | KEY STATISTICS
RMG EXPORTS GROW
24.7% IN JUNE
India’s Ready-Made Garment
(RMG) Export Update for FY June, 2021-22
RMG exports were to the tune of USD 1001.6 million in June, 2021 showing a positive growth of
24.7 per cent against the corresponding month of June, 2020 and decline of 18.8 percent against
June, 2019. Cumulative RMG exports for the period Apr-June, 2021-22 is USD 3405.6 mn. show-
ing a positive growth of 135.5% against the period Apr-June, 2020-21 and a decline of 18.4%
against the period Apr-June, 2019-20.
In rupee terms, RMG exports were to the tune of INR 7367.33 crore in June, 2021 showing a
positive growth of 21.10 per cent against the corresponding month of June, 2020 and decline of
13.9 percent against June, 2019.
India’s RMG Export to World
(In US$ Mn.) MoM Growth (%)
2020-21 2021-22 2021-22
Month
2019-20 2020-21 2021-22 Over Over Over
2019-20 2019-20 2020-21
April 1408.8 126.3 1297.3 -91.0 -7.9 927.1
May 1530.1 516.6 1106.7 -66.2 -27.7 114.2
June 1233.5 803.4 1001.6 -34.8 -18.8 24.7
July 1365.8 1065.7 -22.0
August 1261.9 1085.6 -14.0
September 1080.6 1192.9 10.4
October 1108.9 1180.0 6.4
November 1058.5 1047.0 -1.1
December 1409.5 1196.9 -15.1
January 1453.5 1296.2 -10.8
February 1477.9 1349.1 -8.7
March 1120.5 1425.6 27.2
Total 15509.4 12286.3 3405.6 -20.8 -18.4 135.5
Source: DGCI&S, Kolkata, 2021
Note- Sum of Apr-June, 2019-20 is USD 4172.4 mn. and Apr-June, 2020-21 is USD 1446.3 mn.
For more Details on India’s RMG Exports data, please
visit AEPC’s website>Resource Section>Export Statistics
4 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021
APPAREL | KEY STATISTICS
TEXTILE MANUFACTURING
JUMPS 165% IN MAY
India’s Textile & Ready-Made Garment (RMG)
Update for Index for Industrial Production
(IIP) for FY May, 2021-22
MoM MoM Growth
Manufacture of Manufacture of
Growth Rate Rate
Textiles Wearing Apparel
(In %) (In %)
2021-
Month 2020-21 2021-22 2021-22/2020-21 2020-21 2021-22
22/2020-21
April 11.0 113.2 # 9.7 136.1 #
May 40.2 106.6 165.2 62.6 120.4 92.3
Cumulative Index
25.6 110.7 332.4 36.2 127.3 251.7
(Apr-May)
Source: CSO,2021
* Figures for May 2021 are Quick Estimates
# The growth rates over corresponding period of previous year are to be interpreted considering the
unusual circumstances on account of COVID 19 pandemic since March 2020
Manufacturing of Textiles Index for the month
of May, 2021 is 106.6 which has shown a positive
growth of 165.2% as compared to May, 2020.
Manufacturing of Textiles Index for the
financial year Apr-May, 2021-22 is 110.7 which
has shown a positive growth of 332.4 % as
compared to the financial year Apr-May, 2020-21.
Manufacturing of Wearing Apparel Index for
the month of May, 2021 is 120.4 which has shown
a positive growth of 92.3% as compared to May,
2020.
Manufacturing of Wearing Apparel Index
for the financial year Apr-May, 2021-22 is 127.3
which has shown a positive growth of 251.7% as
compared to the financial year Apr-May, 2020-21.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021 /5
APPAREL | UPFRONT
15 MORE STARTUPS
JOIN UNICORN CLUB IN
FIRST HALF OF 2021
OPPORTUNITIES FOR MANUFACTURER OF PHARMACEUTICAL
PRODUCTS, AGRICULTURE AND TEXTILE SECTOR
I
ndia’s 15 more startups made it to unicorn club, val- Shri Goyal said that vaccines, pharma products,
ued at more than $1 billion, in first six months of the ICT-related goods and services are good possible areas
current year concretizing the roadmap for ‘Aatman- of opportunities for immediate and short-term need
irbhar Bharat’, a recipe for rebuilding, revitalizing and exist. In long-term, areas like digitization, clean energy
strengthening resilience in the economy. and GVCs (Global Value Chains) remain great areas of
“There is a new energy in our startups space. In just growth.
first six months of 2021, India has seen 15 more uni- “Sectors like agriculture, textiles, engineering goods,
corns,” said Hon’ble Commerce and Industry Minister electronics, marine products and shipping services
Shri Piyush Goyal, while addressing a Plenary Session also offer great opportunities for the nation,” said Shri
of CII-Horasis India meeting on 24 July 2021. Goyal. He recently took charge as Minister of Textiles
Indian startups are scripting commercial success as well.
stories due to hordes of initiatives and reforms initiated Speaking about the progress and opportunities in tex-
by the Government of India. Some key initiatives and tile sector, the Minister said that the sector is one of the
changes, helping India’s transformation, include Ease largest employers in India and is now poised to become
of Doing Business (EoDB), Production Linked Incentive the largest exporter as well.
(PLI) scheme, Make in India and large scale digitization, India sees a great growth potential in the textile
modernization, simplification and facilitation. sector, which contributes 2.3% to India’s GDP, 7% of the
6 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021
APPAREL | UPFRONT
industrial output, 12% to the export earnings of India ports are going up and FDI inflows are highest. Indian
and employs more than 45 million people, which is 21% industry is indeed on a growth path. The Minister said
of the total employment. that highest ever quarterly merchandise exports of $95
In a bid to give boost to the textile sector, the Govern- billion have been logged in Q1 of 2021-22, which is 18%
ment of India has initiated hordes of schemes such as higher than Q1 of 2019-20.
PLI and Mega Investment Textiles Parks (MITRA). The Minister said that India endorses the concept of
The Centre approved the PLI scheme worth $26 billion working towards ensuring a transparent, dependable
covering 13 sectors including textiles in five years. The and reliable supply chain and there is natural inclina-
Centre has set up a corpus of Rs 10,683 crore under tion among countries to partner with India. He said that
the scheme for man-made fibre (MMF) and technical India was expediting Foreign Trade Agreements (FTAs)
textiles to boost manufacturing, increase exports and with major world economies.
attract investments into the sector. Shri Goyal said, “Reciprocity and fairness is our
Government has also launched MITRA scheme in ad- mantra in negotiations by taking trade facilitation mea-
dition to the PLI scheme to enable the textile industry to sures. Today, India is changing Non-Tariff Barriers to No
become globally competitive, attract large investments, Trade Barriers and Indian trade is shifting from ‘Goods
boost employment generation and exports. only’ to ‘Goods, Services & Investments’ along with job
Shri Goyal said that Indian growth story is now being creation.”
reflected across all sectors from EoDB to exports and The Minister added that the Government of India is
from startups to services, India is taking giant leaps in standing strong with a resolve for ‘Building a strong
each sector. India of Tomorrow’.
India is the preferred destination for industry, invest-
ment and innovation. This situation has arisen as a • Despite Covid-19, economy is on a revival path in
result of consistent efforts to bring structural changes India
in last seven years, he said. • India expediting FTAs with major world economies
“Growth centric reforms have enabled India to • Opportunities for textile sector that contributes
embark on a holistic economic transformation and as 12% to India’s export earnings
a result, the country is growing with SPEED - Stability, • PLI scheme worth $26 billion covering 13 sectors
Productivity, Enterprise, Entrepreneurship and De- including textiles
mand,” Shri Goyal said. • Rs 10,683 crore under PLI for MMF segment and
He said that despite Covid-19 disruptions, there technical textiles
are clear indications of economic revival in India. Ex-
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021 /7
APPAREL | GLIMPSES OF KEY EVENTS GLIMPSES OF KEY EVENTS FIEO President and AEPC Chairman Dr A Sakthivel calls upon Hon’ble Vice President of India Shri M Venkaiah Naidu in New Delhi on 28 July 2021 to apprise him of the export scenario of the country. Dr A Sakthivel discussing ways to boost Indian exports Chairman Dr Sakthivel submitting suggestions for with Hon’ble Minister for Commerce & Industry, Textiles, drafting separate state export promotion policy to Consumer Affairs, Food & Public Distribution Hon’ble Chief Minister of Tamil Nadu Thiru MK Stalin Shri Piyush Goyal in New Delhi on 29 July 2021. on 27 July 2021 in Chennai. 8 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021
APPAREL | GLIMPSES OF KEY EVENTS
In a meeting with Dr L Murugan, Hon’ble Minister of State for Fisheries, Animal
Husbandry & Dairying and Information & Broadcasting in New Delhi on 28
Dr Sakthivel with Hon’ble Industries Minister of Tamil July 2021. Discussion was on challenges faced by marine sector including
Nadu Thiru Thangam Thennarasu in Chennai on shortage of reefer containers, hike in freight rates and increase in anti-dumping
27 July 2021. duty by the US. The Hon’ble Minister has assured to take up each of the issues.
AEPC Chairman Dr A Sakthivel with Textiles Secretary
Mr Upendra Prasad Singh during his visit to Apparel House in Sharing thoughts with Mr BVR Subrahmanyam, the new Commerce
Gurugram on 14 July 2021. Secretary, Government of India, in New Delhi on 16 July 2021.
In discussion with Mr Pawan Kumar Agarwal, Special Secretary
Discussing key banking issues related to exporters with Mr
(Logistics), Department of Commerce, on issues related to logistics
Debasish Panda, Secretary (Financial Services), Ministry of
facing the exports sector in New Delhi on 29 July 2021.
Finance, in New Delhi on 29 July 2021.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021 /9APPAREL | COVER STORY RoSCTL ROAD TO AATMANIRBHAR BHARAT Textile sector brims with confidence as apparel exports likely to grow 10 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST2021
APPAREL | COVER STORY
I
t can be termed as angelic intervention.
On 14 July 2021, the Union Cabinet
approved continuation of Rebate of State
and Central Taxes and Levies (RoSCTL)
scheme till March 2024, thanks to the
continuous efforts by apparel export industry,
particularly Chairman of Apparel Export
Promotion Council (AEPC) Dr A Sakthivel.
At a time when exporters are facing tough competi-
tion from neighbouring countries like Bangladesh and
Vietnam, besides dealing with Covid-19 pandemic, the
decision came as a golden ray of hope to boost appar-
el exports from India. The rebate scheme will help
enhance competitiveness of the labour-intensive textiles
sector.
Immediately after the announcement by the govern-
ment, Dr A Sakthivel thanked Hon’ble Prime Minister
Shri Narendra Modi, and Commerce and Textiles Min-
ister Shri Piyush Goyal, stating that the continuation of
the scheme was the need of the hour and that it will play
a major role in achieving the objective of Aatmanirbhar
Bharat.
According to a central government statement, contin-
uation of RoSCTL for apparel/ garments and made-ups
is expected to make these products globally competitive
by rebating all embedded taxes/ levies which are cur-
rently not being rebated under any other mechanism.
It will ensure a stable and predictable policy regime
and provide a level playing field to Indian textile export-
ers. Further, it will promote start-ups and entrepreneurs
to export and ensure creation of lakhs of jobs. Continua-
tion of the scheme will not only help boost exports from
India but also help generate additional investment and
give direct and indirect employment to lakhs of workers
especially women.
In 2020, India exported knitted apparel, woven
apparel and made-ups worth $6.1 billion, $6 billion and
$4.8 billion respectively. Bangladesh’s exports of these
three products stood at $19 billion, $16.8 billion and $1.1
billion in 2020. Similarly, Vietnam exported knitted ap-
parel, woven apparel and made-ups worth $13.7 billion,
$13.3 billion and $3.2 billion, respectively.
WHAT IS THE SCHEME ALL ABOUT
India always believes in supporting exports without em-
bedded burdens and it is a globally accepted principle
that taxes and duties should not be exported, to enable
a level playing field in the international market for the
exporters.
In addition, to import duties and GST (Goods and
Services Tax) which are generally refunded, there are
various other taxes/ duties that are levied by Central,
State and Local Governments which are not refunded to
the exporters. These taxes and levies get embedded in
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021 / 11APPAREL | COVER STORY
the price of the ultimate product being exported. Remission of Duties and Taxes on Exported Products
Such embedded taxes and levies increase the price of (RoDTEP).
Indian apparels and made-ups and make it difficult for
them to compete in the international markets, particu- The Department of Commerce and the Department of
larly when you have competitors like Bangladesh, which Revenue are finalising the rates for the RoDTEP scheme
gets huge duty concessions in rich markets of the US and it is expected to be notified soon. The government
and the Europe. had announced that it has decided to extend the benefit
Some of the cess, duties for which taxes and levies of RoDTEP scheme to all goods, with effect from 1 Jan-
are not refunded and are part of embedded taxes direct- uary 2021.
ly and indirectly, are:
WHAT ARE THE RATES
1. Central and state taxes, duties and cesses on fuel The Union Cabinet chaired by Hon’ble Prime Minister
used for transportation of goods, generation of power Shri Narendra Modi has given its approval for continu-
and for the farm sector ation of RoSCTL with the same rates as notified by the
2. Mandi tax Ministry of Textiles through a notification dated 8 March
3. Duty on electricity charges at all levels of the produc- 2019.
tion chain According to a government official, the government
4. Stamp duty will issue a notification after which the continuation
5. GST paid on inputs such as pesticides, fertilizers, etc. of the scheme would come into effect. He said that the
6. GST paid on purchases from unregistered dealers, procedure to claim the benefits under the RoSCTL
etc. scheme will be same as RoDTEP scheme, as exporters
7. Cess on coal or any other products are exporting their goods since 1 January 2021 under
RoDTEP scheme.
Realizing the importance of refund of embedded
taxes, cesses and duties, the Ministry of Textiles first Rates will be same, only the procedure will be
launched a scheme by the name of Rebate of State changed slightly.
Levies (RoSL) in 2016. In this scheme the exporters
of apparels, garments and made-ups were refunded
embedded taxes and levies through the budget of the
Ministry of Textiles.
In 2019, the Ministry notified a new scheme by the
name Rebate of State and Central Taxes and Levies
(RoSCTL). Under this scheme, the exporters are issued
a Duty Credit Scrip for the value of embedded taxes and
levies contained in the exported product. Exporters can
use this scrip to pay basic Customs duty for the import
of equipment, machinery or any other input.
The Ministry, in a statement, has said, “Just one year
after the launch of RoSCTL, the pandemic set in and it
has been felt that there is a need to provide some stable
policy regime for the exporters.”
In the textiles industry, buyers place long term orders
and exporters have to chalk out their activities well in
advance, it is important that the policy regime regarding
export of these products should be stable. Keeping in
view the same, the Ministry has decided to continue the
scheme of RoSCTL up to 31 March 2024 independently
as a separate scheme.
PRODUCTS COVERED UNDER RoSCTL
Exports of apparels/ garments (Chapters 61 and
62) and Made-ups (Chapter 63) are covered under this
scheme. However, the other textiles products (excluding
Chapters 61, 62 and 63) which are not covered under
the RoSCTL will be eligible to avail the benefits under
12 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021APPAREL | COVER STORY
Range of Rates of RoSCTL
Product Rate of ROSCTL (State & Cen-
S. No.
(Apparel Made) tral)
Of cotton 3.89% - 6.05%
1
Of blend containing cotton and MMF fibre 3.80% - 5.41%
2
3 Of MMF fibre 3.80% - 4.75%
Of Silk (other than containing Noil silk) 3.80% - 4.75%
4
5 Of Wool 3.80% - 4.75%
Of Blend containing Wool and Man Made
3.80% - 4.75%
Fibre
6
7 Of Others 3.80% - 4.75%
Of Cotton containing 1% or more by
8 3.89% - 6.05%
weight of spandex/ lycra/ elastane
9 Protective industrial wear 3.80% - 4.90%
For individual items, an exporter or industry can access the exact rates both in Hindi and English by visiting the
below link: https://egazette.nic.in/WriteReadData/2019/199526.pdf
INDUSTRY EXUBERANT ABOUT RoSCTL scheme shall also help in promoting start-ups
EXPORTS and employment at a large scale.”
Exporters and industry welcomed the announcement.
AEPC Chairman Dr Sakthivel said, “The scheme will Chairman of The Cotton Textiles Export Promotion
go a long way in bringing back positive sentiments and Council (TEXPROCIL) Mr Manoj Patodia said, “In the
helping the Indian textile value chain attain $100 billion textile sector, overseas buyers place orders and export-
annual exports in next three years.” ers have to chalk out their activities well in advance
and, therefore, it is important that the policy regime
India’s apparel exports have been losing market regarding export of textile products should be stable.
share to competitors. It fell 20.8 per cent in one year Exporters can now take a long-term perspective while
from $15.6 billion in 2019-20 to $12.3 billion in 2020-21. negotiating export orders.”
“This declining trend in apparel exports is a matter of
concern for the nation, given its huge socio-economic Confederation of Indian Textile Industry (CITI) Chair-
importance. RoSCTL is all set to reverse this trend,” he man Mr T Rajkumar said that the RoSCTL scheme will
added. help improve the global competitiveness of the textile
sector while the key economies of the world are in a re-
FICCI President Mr Uday Shankar said, “We are viving mode. The announcement will also give a boost to
confident that this would ensure higher share for India the objective of “Aatmanirbhar Bharat”, provide a level
in global trade of textiles and clothing in coming years. playing field to the Indian textile exporters and enhance
Garments and made-ups are high employment and ex- further employment opportunities especially to down-
port intensive sectors. Cabinet decision for extension of trodden and illiterate women in rural areas.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021 / 13APPAREL | SPECIAL FEATURE
FASHIONING A
SUSTAINABLE WORLD
S
everal global brands have taken a series of COMMITMENTS TO SAVE WATER
initiatives to safeguard the environment and Levi’s claim to have saved more than 1.8 billion litres
contribute towards sustainability of the fashion water and recycled more than 129 million litres. It also
industry. Most of the measures revolve around runs an initiative called ‘The Better Cotton Initiative’
recycling, efficient energy use and waste management. training farmers to minimise the use of water, pesti-
Decisive steps are being taken to repair the environ- cides, insecticides and synthetic fertilizers while grow-
ment that has been impacted due to increased explora- ing cotton plants.
tion, industrialisation and urbanisation. Big brands like American denim brand Lee has saved more than
Louis Vuitton, Levi’s, Lee Jeans and Under Armour are one billion litres of water till year 2019 and is continu-
working towards sustainability with commitment. ing. Lee also has a signature denim collection named
LVMH is learnt to have reduced its energy consump- Indigood Denim that eliminates water from the dying
tion by more than 30% per square meter of retail space. process.
It further aims to reduce its energy use to 50%. Under Indian giant ABFRL is also working with commitment
Armour is reducing the impact of their packaging on to save water. The company has reportedly reached to a
environment. Indian apparel giant Aditya Birla Fashion point where 82% is recycled water out of the total water
and Retail Ltd (ABFRL) is also marching ahead. consumption. The company is contributing in the field of
14 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021APPAREL | SPECIAL FEATURE
rainwater harvesting as well. in environmental impact.
Similarly, Lee focuses immensely on recycling,
BEING ENERGY EFFICIENT compositing and reuse. The company has reportedly
Lee is committed to switch over to solar power. The reached zero-waste designation for all of their owned
company has set the target of switching over to using distribution centres in North America.
renewable energy at all its units by 2025. The company Under Armour has been working on reducing the use
has also embarked upon utilizing more than 50% sus- of plastic bags for packaging and labelling by replacing
tainable synthetics in its manufacturing. it with corrugated boxes. The company makes sure that
Global sportswear brand Under Armour is also the carton boxes used in packaging process are made of
working towards reducing the impact on environment. 100% recycled content. By taking such small initiatives,
Since 2008, the company is working with Environmental Under Armour is significantly contributing towards
Defense Fund to implement best practices of energy use sustainability.
and sustainability. The LMVH’s ‘Living Soils, Living Together’ program
ABFRL is working ambitiously to meet its renewable has been launched to comply with the much required en-
energy targets, besides reducing carbon emission and vironmental certifications in France. LVMH is planting
improving waste management. Working on sustainabili- hedges, trees and bushes alongside non-profit organisa-
ty since 2012-13, the company now uses 25% renewable tion Reforest’Action.
energy and 82% recycled water. ABFRL, too, is seen taking steps towards environmen-
tal healing. In a recent publication, ABFRL talked about
WASTE MANAGEMENT AND RECYCLING its successful sustainable journey mentioning how reli-
LVMH claims that several of their maisons and suppli- giously it is working towards environment and sustain-
ers are members of the Zero Discharge of Hazardous ability that helped them stand on firm ground globally.
Chemicals program. The program promotes responsible
management of chemicals and deployment of waste wa- With big brands taking the initiative to clean up the
ter besides regular audits of relevant LVMH sites. The industry and becoming accountable for the impact of
company has pledged to eliminate fossil fuel-derived their activities on environment, the entire value chain is
plastics from their packaging by year 2026. encouraged to follow the footprints. Collective measures
The ‘Better Cotton Initiative’ of Levi’s, too, is aimed at of the clothing industry have the potential to play a key
reducing inputs and maximizing cotton production that role in the global efforts for sustainable development
is beneficial for the farmers. Also, this practice ensures and environment protection.
minimal use of harmful substances leading to decrease
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021 / 15APPAREL | FOCUS COUNTRY 16 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021
APPAREL | FOCUS COUNTRY
ITALIAN ECONOMY HEADED
FOR SHARP RECOVERY
Italy is likely to grow 5.1% in 2021 and 4.4% in 2022 after a fall of 8.9% last year, as per
the projections of Bank of Italy. The turnaround in the Eurozone’s third largest economy
has been possible due to its massive vaccination campaign and growth-oriented fiscal
and monetary policies. Relaxation in travel restrictions and social contacts is further
boosting the recovery.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021 / 17APPAREL | FOCUS COUNTRY
ECONOMIC INDICATORS-
Indicators Value
Real GDP (Purchasing Power Pari-
$2,562,135,000,000
ty), 2019 est.
GDP (official exchange rate), 2019
$2,002,763,000,000
est.
Real GDP (Per Capita), 2019 est. $42,492
Real GDP Growth Rate,2019 est. 0.34%
Inflation Rate, 2019 est. 0.6%
Exchange Rate- euros (EUR) per
0.82771
US dollar, 2020 est.
tourism, machinery, iron and steel, chemicals,
Industries food processing, textiles, motor vehicles, cloth-
ing, footwear, ceramics
Source: The World Factbook-CIA
LOCATION- Southern Europe, a peninsula extending into the central Mediterranean Sea,
northeast of Tunisia
CLIMATE- predominantly Mediterranean; alpine in far north; hot, dry in south
AGE STRUCTURE-
0-14 years: 13.45% (male 4,292,431/female 4,097,732)
15-24 years: 9.61% (male 3,005,402/female 2,989,764)
25-54 years: 40.86% (male 12,577,764/female 12,921,614)
55-64 years: 14% (male 4,243,735/female 4,493,581)
65 years and over: 22.08% (male 5,949,560/female 7,831,076) (2020 est.)
18 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021APPAREL | FOCUS COUNTRY
ITALY’S APPAREL TRADE-
Italy’s RMG Import from World and India
% Change
2018 2019 2020
2020/2019
Italy’s RMG Import from World, (USD
-12.0
Mn.) 16836.2 16409.0 14440.6
Italy’s RMG Import from India, (USD
-25.1
Mn.) 389.8 376.2 281.7
India’s Share in Italy’s RMG import
2.3 2.3 2.0 -14.9
from world, %
Source: UN Comtrade, 2021
The above table shows that Italy’s RMG import from world were to the tune of USD 14440.6 mn. in
2020 showing a decline of 12.0% as compared to 2019. RMG import from India has remained USD
281.7 mn. registering a decline of 25.1%. as compared to 2019. India’s % share in Italy’s RMG im-
port from world has remained 2.0% in 2020.
TOP RMG SUPPLIER TO ITALY-
Top RMG Supplier to Italy and India’s Position (Values in USD mn.)
Exporters 2020 % Share
S. No.
World 14440.6 100.0
1 China 2658.0 18.4
2 Bangladesh 1299.6 9.0
3 France 1268.0 8.8
4 Spain 1199.0 8.3
5 Romania 713.8 4.9
6 Germany 659.0 4.6
7 Netherlands 618.9 4.3
8 Turkey 540.5 3.7
9 Tunisia 492.7 3.4
10 Belgium 476.4 3.3
13 India 281.7 2.0
Source: UN Comtrade, 2021
The above table shows that China has remained a top supplier of RMG to Italy with a % share of
18.4% in 2020. India is the 13th largest supplier of RMG to Italy with a % share of 2.0%. Bangla-
desh has a % share of 9.0%.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021 / 19APPAREL | FOCUS COUNTRY
ITALY’S TOP 10 RMG PRODUCTS IMPORT FROM WORLD
VS INDIA’S SHARE
Italy’s Top 10 RMG Import from World vs India’s share
Italy imports Italy imports
India’s
from world, Val- from India, Val-
Product label share in
ue in 2020,USD ue in 2020,USD
Product %
S. No. mn. mn.
code
RMG 14440.625 281.716 2.0
Sum 6301.1 76.0 1.2
1 610910 T-shirts, singlets and other vests 1146.5 33.3 2.9
of cotton
Jerseys, pullovers, cardigans,
2 611020 waistcoats and similar articles, 951.7 14.0 1.5
of cotton
Men’s or boys’ trousers, bib and
3 620342 brace overalls, breeches and 808.5 10.7 1.3
shorts, of cotton
Jerseys, pullovers, cardigans,
4 611030 waistcoats and similar articles, 666.9 1.2 0.2
of man-made fibres
Men’s or boys’ anoraks, wind-
5 620193 cheaters, wind jackets and simi- 609.0 0.2 0.0
lar articles, of man-made fibres
Garments made up of felt or
6 621010 nonwovens, whether or not 576.9 0.4 0.1
impregnated, coated, covered or
laminated
Women’s or girls’ trousers, bib
7 620462 and brace overalls, breeches and 516.8 4.1 0.8
shorts of cotton
Women’s or girls’ anoraks,
8 620293 windcheaters, wind jackets and 418.4 0.5 0.1
similar articles, of man-made
fibres
9 610990 T-shirts, singlets and other vests 304.4 1.2 0.4
of textile materials
10 620520 Men’s or boys’ shirts of cotton 302.2 10.3 3.4
Source: UN Comtrade,2021
The above table shows Italy’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 6301.1 mn. in 2020 and import from India of these top 10 products were to the tune of
USD 76.0 mn. India has a % share of 1.2 % in Italy’s top 10 products import from world.
20 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021APPAREL | FOCUS COUNTRY
The top products imported by Italy from world includes T-shirts, singlets and other vests of cotton, Jerseys, pullovers,
cardigans, waistcoats and similar articles, of cotton, Men’s or boys’ trousers, bib and brace overalls, breeches and
shorts, of cotton, Jerseys, pullovers, cardigans, waistcoats and similar articles, of man-made fibres and Men’s or boys’
anoraks, windcheaters, wind jackets and similar articles, of man-made fibres.
ITALY’S TOP 10 RMG PRODUCTS IMPORT FROM INDIA
Italy’s Top 10 RMG Products Import from India
Italy’s Import from
% Share Tariff applied by Italy
S. No. Product code Product label India, USD mn.
in 2020 (In %)
2020
RMG 281.7 100.0
Sum of Top 10 165.4 58.7
T-shirts, singlets and other vests
1 610910 33.3 11.8 9.6
of cotton
Women’s or girls’ nightdresses
2 610831 27.6 9.8 9.6
and pyjamas of cotton
Men’s or boys’ nightshirts and
3 610721 26.9 9.6 9.6
pyjamas of cotton
7.10 (Gloves, mittens
& mitts) /
Babies’ garments and clothing
4 611120 14.3 5.1
accessories of cotton 9.6 (Garments &
clothing accessories)
Jerseys, pullovers, cardigans,
5 611020 waistcoats and similar articles, of 14.0 5.0 9.6
cotton
Men’s or boys’ trousers, bib and
6 620342 brace overalls, breeches and 10.7 3.8 9.6
shorts, of cotton
7 620520 Men’s or boys’ shirts of cotton 10.3 3.7 9.6
Women’s or girls’ dresses of syn-
8 620443 10.2 3.6 9.6
thetic
9 620442 Women’s or girls’ dresses of cotton 9.8 3.5 9.6
Women’s or girls’ blouses, shirts
10 620630 8.3 2.9 9.6
and shirt-blouses of cotton
Source: UN Comtrade, 2021
The above table shows Italy’s top 10 RMG products imported from India. Italy’s top 10 products imported from India were
to the tune of USD 165.4 mn with a % share of 58.7 % in Italy’s total RMG import from India.
The top products imported by Italy from India includes T-shirts, singlets and other vests of cotton, Women’s or girls’ night-
dresses and pyjamas of cotton, Men’s or boys’ nightshirts and pyjamas of cotton, Babies’ garments and clothing accessories of
cotton and Jerseys, pullovers, cardigans, waistcoats and similar articles, of cotton.
The tariff applied by Italy on most of the top 10 products imported from India is 9.6%.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021 / 21APPAREL | COUNCIL AFFAIRS
AEPC APPRECIATES
“ENTERPRISING
EXPORTERS” FOR
HISTORIC FEAT
A
pparel Export Promotion Council (AEPC) demand has remained buoyant, the lockdowns in
Chairman Dr A Sakthivel lauded the government different parts of the country had kept factories in
and Indian exporters for achieving the highest partial shutdown. With decline in daily cases of infection
ever merchandise exports of $95 billion in Q1 (April- and resumption of economic activities, India is now set
June quarter) FY 2021-22. to achieve unprecedented export figures this year, he
said.
“This is a historic moment for us. Despite all odds, the
enterprising Indian exporters have brought laurels to “India’s economic recovery is likely to be led by
the country. A big thanks goes to the dynamic leadership exports till domestic demand picks up. And, leading the
of Hon’ble Prime Minister Shri Narendra Modi and his pack of exporters will be the MSMEs, as exports need
Cabinet colleagues particularly Hon’ble Ministers of personalized management,” Dr Sakthivel said.
Finance, Commerce and Textiles,” Dr Sakthivel said,
adding that the $400 billion merchandise export target He thanked the government for extending the Interest
of FY22 is doable. Equalization Scheme (IES) for pre and post shipment
rupee credit for another three months till 30 September
Export of cotton yarn/ fabrics/ made-ups grew by 2021.
50.86% in June 2021 over June 2019. However, apparel
exports could not benefit much from the resurgence Dr Sakthivel also welcomed the government’s decision
in global demand despite a good order book due to of extension of Rebate of State and Central Taxes and
lockdowns in many important states, he said. With the Levies (RoSCTL) till 31 March 2024. The extension will
reopening of the economy, apparel exports are likely to help exporters get back all embedded taxes and make
catch up fast and surpass the pre-Covid levels soon, he their products globally competitive.
added.
He requested the government for early clearance of
The Chairman said that while the overall global RoSCTL cases pending since January 2021.
22 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021APPAREL | COUNCIL AFFAIRS
AEPC CHAIRMAN MEETS
REVENUE SECRETARY ON
EXPORT ISSUES
A
pparel Export Promotion Council (AEPC) Notification No 50/2017-Customs dated 30 June 2017
Chairman Dr A Sakthivel recently met Mr should be restored as the smaller exporters source
Tarun Bajaj, Revenue Secretary, Ministry of most of the raw material from the domestic market and
Finance, and discussed an array of export related import only small lots of trimmings and embellishments
issues including duty free import of trimmings and under the EPC scheme.
embellishments for textiles.
The normal import period from destinations like
The major issues took up by the AEPC Chairman China, Hong Kong, South Korea and Taiwan is 20 days
include extension in time limit of exports on by sea shipments while smaller lots of trimmings and
procurement of goods and export by merchant exporter, embellishments are normally imported via courier
refund of CVD (Countervailing Duty) and SAD (Special under the EPC Scheme and reach in 5 days. This helps
Additional Duty) paid post on regularization of Advance in meeting the 30 to 40 days order period. Most of the
Licenses and EPCG licenses, exports through land exporters import these items because of the buyer’s
customs and duty drawback against exports to Nepal in nomination. Hence, the need to be sourced from defined
freely convertible currency. sources and within sharp timelines.
He also raised issues related to amendment in Rule 96 It may also be noted that exporters have already
(10) of CGST Rules, restoration of facility of payment of booked orders for FY 2021-22 based on the imports
IGST on exports and subsequent refund, scroll rejection requirement under EPC for the items coming under
in PFMS and capital blockage of exporters tagged as S. No. 311 and the value of import have been factored
‘Risky’. based on Export Performance of FY 2020-21.
On 28 July 2021, Dr Sakthivel wrote a letter to the Dr Sakthivel sought Revenue Secretary’s intervention
Revenue Secretary for restoration of facility for duty for continuation of the facility of duty free import of
free import of trimmings and embellishments, tags, trimmings and embellishments as it does not have any
labels, packing bags needed for export. serious impact on the domestic industry or revenue
foregone. It provides the much needed facility of export
He requested that the facility of Serial No 311 facilitation to smaller exporters.
(Trimmings and Embellishments) under Principal
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021 / 23APPAREL | COUNCIL AFFAIRS
AEPC MEETS
TAMIL NADU
TEXTILE MINISTER
FOR SUPPORT
T
he Apparel Export Promotion Council (AEPC) expedite the opening of a fully equipped ESI hospital for
sought Hon’ble Minister of Handloom and Textiles the benefit of the workers.
of Tamil Nadu Shri R Gandhi’s intervention for
speedy execution of certain measures for betterment Emphasizing on the safety of the workers, AEPC
of apparel industry and workers in Tirupur and Tamil officials urged the Minister to set up adequate hostel
Nadu. facilities for working men and women separately in
Tirupur, as many apparel workers have migrated from
On behalf of AEPC Chairman Dr A Sakthivel, other districts and states to Tirupur.
Council’s Executive Committee Member Mr R Ramu
and Joint Director Mr C Eswarasundar submitted the AEPC also made a request to set up separate textile
recommendation at a meeting of the Minister with parks for the production of man-made, synthetic fiber
knitwear trade organizations and associations held at garments and accessories in the southern districts of
Tirupur District Collectorate on 29 June 2021. Tamil Nadu.
Hon’ble Minister of Information & Publicity of Tamil The Minister heard the recommendations and
Nadu Shri MB Saminathan and Hon’ble Minister of Adi assured that they would be considered on priority. “This
Dravidar Welfare Mrs N Kayalvizhi Selvaraj were also government is fully supportive for the growth of all
present in the meeting. industries in Tamil Nadu,” Shri Gandhi said.
The AEPC representatives requested the Minister to The meeting was held in presence of Tirupur District
allocate more vaccinations to Tirupur garment workers Collector Dr S Vineet. Principal Secretary of Handloom
in a bid to fight Covid-19 pandemic and help the apparel Commissioner and officials from the department
industry grow. of Handloom and Textiles were also present in the
meeting.
Shri Gandhi’s intervention was also sought to
24 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021APPAREL | COUNCIL AFFAIRS
AEPC REQUESTS
FOR COMMERCIAL
TAX DIVISION IN
TIRUPUR
T
he Apparel Export Promotion Council (AEPC) has their assessment purposes.
requested for setting up a separate Commercial
Tax Division, exclusively for Tirupur district with Highlighting the problem of traders, the Council
Headquarters at Tirupur. representative said there are around 8,000 traders from
Kangayam and Dharampuram area of Tirupur district
AEPC Joint Director Mr C Eswarasundar placed the who visit CTO offices at Karur district.
request before Tamil Nadu’s Hon’ble Commercial Taxes
and Registration Minister Shri P Moorthy in a meeting Similarly, about 6,000 dealers from Udumalpet area
held on 12 July 2021 at Coimbatore. visit Pollachi in Coimbatore, while around 5,000 dealers
from Avinashi near Tirupur visit Coimbatore district for
Members of Parliament and Legislative Assembly, assessment purposes.
commercial tax representatives, officials and various
organizations from Coimbatore and Erode Commercial In a bid to avoid moving from one district to another
Tax Division also attended the meeting. and saving cost and time, a new Commercial Tax
Division should be set up at Tirupur, AEPC requested.
AEPC raised its long awaited demand of creating a
new Commercial Tax Division for Tirupur district, as The Hon’ble Minister assured to consider the proposal
there are around 65,000 traders/ assessees in Tirupur positively and said he will take it up with Hon’ble Chief
but they have to shuttle between different districts for Minister of Tamil Nadu.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021 / 25APPAREL | COUNCIL AFFAIRS
AEPC SEEKS
CLARIFICATIONS ON
ATUFS ISSUES
A
pparel Export Promotion Council (AEPC) 203 pending cases, around 170 cases are of procedural
Chairman Dr A Sakthivel requested for reducing nature but awaiting further communication.
compliance burden and matters relating to Besides these, 32 cases are of the nature wherein
streamlining the processes under Amended Technology policy clarification or interpretation from Ministry of
Upgradation Fund Scheme (ATUFS) at a virtual meeting Textile will help early resolution of these cases, the
called on 6 July 2021 under the chairpersonship of the letter said.
then Hon’ble Textiles Minister. AEPC sought clarification on issues of in-principal
Later, Dr Sakhtivel wrote a letter to Textile Secretary sanction letter or invoice date/ purchase of machines
Mr Upendra Prasad Singh looking forward to an early before the sanction of term loan, and clarification on
resolution of the pending cases that were discussed indicating date of manufacturing on the machine.
during the meeting. He also thanked the then Hon’ble Clarification was also sought on the applicability of
Minister of Textiles Smt Smriti Zubin Irani for a period of three years of term loan repayment period
consideration of the issues highlighted by him at the for existing cases, requirement of ‘year of manufacture’
stakeholder consultation meeting. appearing on the machineries for physical verification
The Chairman raised hordes of cases pertaining to under RR-TUFS and record of willingness and exercise
apparel sector awaiting clarification on compliance option for release of subsidy against bank guarantee.
to policy or procedures. AEPC had shared a list of The Council also requested fast-tracking joint
203 pending TUFS cases with office of the Textile inspection teams (JIT).
Commissioner as well with Ministry of Textiles. Out of
26 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021APPAREL | COUNCIL AFFAIRS
AEPC SEEKS SEPARATE
EXPORT POLICY FOR
TAMIL NADU
A
pparel Export Promotion Council (AEPC) Tamil Nadu’s exports are mostly limited to cotton
Chairman Dr A Sakthivel met Hon’ble Chief fiber only, which fulfills the needs of overseas buyers for
Minister of Tamil Nadu Shri MK Stalin on 27 July three months. In order to acquire a perennial business
2021 and submitted a memorandum seeking a separate throughout the year, production of synthetic fiber
export policy for Tamil Nadu state. garments and apparels needs to be maximized.
Dr Sakthivel recommended several proposals for the “The world market of synthetic garments is around
Foreign Direct Investments (FDIs) in his memorandum Rs 15 lakh crores whereas our exports merely sum
to accelerate state’s exports by three folds from the up to Rs 12,000 crores, which is less than 2% of
present $30 billion in a period of five years. world requirements. If we set up an exclusive park
for developing such fabrics and garments, we could
Of the country’s total export of around Rs 2.10 lakh increase our exports and generate more employment
crore in 2019-2020, Tamil Nadu alone accounted for 10 that would boost our state economy,” he said.
per cent.
The Chairman suggested the Tamil Nadu government
“As of date there is no separate export policy for our to set up a Sewing Machinery Park and Heavy
state. In order to achieve further growth in exports, Machinery Textile Park in Coimbatore and Hosur cities
we need a separate Export Policy exclusively for respectively by luring foreign investments in these
our domicile along with formation of a new Export categories.
Promotion Board, comprising government officials,
leaders and representatives of respective export He also urged for establishing textile garment
councils as board members,” Dr Sakthivel suggested. accessories park, developing improved infrastructure
in ports, constructing new infrastructure for operating
The AEPC Chairman also urged for setting direct international flights to Coimbatore airport and
up manmade fiber (MMF) and synthetic apparel expansion of metro rail project up to Tirupur city.
manufacturing parks.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021 / 27APPAREL | COUNCIL AFFAIRS
AEPC, RIL
HOLD
WEBINAR ON
SOURCING OF
POLYESTER
FABRIC
T
he Apparel Export Promotion Council (AEPC) sourcing at the webinar.
held a webinar on ‘Sourcing of Polyester Fabric’
in association with Reliance Industries Ltd (RIL) Mr Roshan Baid of Paragon Apparels said, “MMF fibre
on 15 July 2021. textiles all over the world are increasing as a substitute
for cotton amid changes in global fashion trends. World
Speaking at the webinar attended by about 50 key trade in MMF fibre garments is estimated at $500
players in the segment of manmade fibre (MMF) based billion.”
garments, AEPC Chairman Dr A Sakthivel said, “From
day one, we felt that we have enough MMF fibre and MMF dominates global textile fibre consumption with
yarn but we do not have the proper fabric. I thank 72:28 ratio i.e. MMF 72% and 28% is natural fibre. The
Reliance for coming forward to fill the gap.” share of MMF garment in India’s total apparel export is
$1.6 billion, which is only 10% of India’s apparel export,
Mr Ritesh Sharma, Head, Brand & Retail at RIL, MrBaid added.
said, “Our company runs the Hub Excellence Program
(HEP) to support the value chain. There are more than Mr Harvinder Singh of Saachi Processors informed
55 high-quality, value chain players across spinning, that their company uses Fukuhara, Mayer & CIE, and
weaving, knitting and processing. More partners are Jiunn Long machines for fabricating knit fabrics. “These
being added.” are all brand new machines. The fabrics produced from
these machines have no cloud or line formation. Even oil
The company has a presence across all textile hubs stains on the greige fabric are controlled,” he said.
and end-applications, he said. “Through this program,
the entire value chain, including brands, will be able to Mr Raj Kumar Agarwal of SVG Fashions said, “SVG
take advantage of manufacturing and technical support, is a rare textile company which has in-house every
quality and supply assurance, access to innovative possible form of fabric formation.”
products, manufacturing support, and one-stop solution
for all requirements,” Mr Sharma added. Mr Sudhir Sekhri, Chairman, Export Promotion
Sub Committee, AEPC, said, “I appeal to people at
The webinar was organized to promote import Reliance to look at the production of high-end fabrics
substitution of polyester fabric and to explore new very holistically and not just concentrate on fibre
sources. Reliance Industries partners shared their production.”
fabric supply chain to India and updated on new fabric
28 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021APPAREL | COUNCIL AFFAIRS
RETIREMENT CEREMONY OF MR KS BISHT
AEPC Joint Director Mr KS Bisht on attaining the age of superannuation and after putting in almost 39 years of
service with the Council, retired and relieved on 30 July 2021. At the time of his retirement he was handling the job
responsibility of Export Promotion Department at the Head Office.
B2B MEETING WITH ISRAELI
FASHION CHAIN FOX GROUP
A B2B meeting between Apparel Export Promotion Council (AEPC) and Fox Group was held with the help of
Embassy of India in Israel on 8 July 2021. Deputy Chief of Mission Ms Anitha Nandhini briefed about the attendees
and business opportunities during the meeting. Mr Elad Vered, Vice President and Deputy Chief Executive Officer at
Fox Group, presented a detailed deliberation.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021 / 29APPAREL | COUNCIL AFFAIRS
EXTENSION OF IES
EXPORT CREDIT TO
BENEFIT APPAREL
EXPORTERS: AEPC
T
he Apparel Export Promotion Council (AEPC) The RBI, on 1 July 2021, issued a circular
welcomed the Reserve Bank of India’s (RBI) communicating about the three-month extension of the
decision to extend the Interest Equalisation IES on Pre and Post Shipment Rupee Export Credit. The
Scheme (IES) for Pre and Post Shipment Rupee Export extension comes into effect from 1 July 2021 and ends
Credit for another three months up to 30 September on 30 September 2021. The move will be beneficial for
2021. those exporters who have rupee account for pre and
post shipment credit.
Commenting on the RBI’s decision, AEPC Chairman
Dr A Sakthivel said, “I thank the Hon’ble Finance The interest equalisation rate was increased from
Minister, Hon’ble Commerce Minister and RBI Governor 3% to 5% in November 2018 in respect of exports by
for accepting our request to further extend the the Micro, Small & Medium Enterprises (MSME) sector
interest subvention scheme as the MSME sector is still manufacturers under the IES. Later, the government
struggling from lack of affordable working capital.” also included other merchant exporters under the
scheme and allowed them interest equalisation at the
“It is a good move by the government. The interest rate of 3% on credit of export of certain products.
subvention scheme will help apparel exporters to reduce
their cost of capital in these difficult times and thereby The Union Budget has made a provision of Rs 1,900
make them more competitive in international markets,” crore for the IES for 2021-22 against Rs 1,600 crore for
the Chairman added. 2020-21. The scheme is available to all exports under
416 tariff lines and exports made by MSMEs.
The Council has been updating the government
about the needs and concerns of the apparel exporters,
maximum of which are in the MSME segment, and
extension of the IES export credit was one of the
recommendations.
30 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | AUGUST 2021You can also read
