SPEECH OF CHAIRMAN, SRTEPC AT THE 67TH ANNUAL GENERAL MEETING

Shri Ronak Rughani, Immediate Past Chairman

Former Chairmen Shri Anil Rajvanshi, Shri Narain Aggarwal, Shri Vinod Ladia, Shri Rakesh Mehra, Shri Sanjeev Saran

Shri Bhadresh Dodhia, Vice – Chairman

Members of the Committee of Administration, Members of the Council and Members from Media

Ladies & Gentlemen

 It is indeed a privilege to welcome you all to the 67^th Annual General Meeting of SRTEPC. The Annual Report on the activities of the Council and Audited Statement of Accounts for the year ended 31^st March 2021 have already been with you and with your permission I take them as read.

Economic Outlook

1. Friends, as you all aware COVID-19 pandemic has impacted economies around the world. It resulted in contractions across various emerging markets and developing economies. It also caused a lasting damage on labor productivity and potential output.
2. As per the latest data, world output contracted -8.0% in 2020 and the advanced economies it contracted around -9.0%. Whereas China witnessed a positive growth of 4% and India witnessed around -8.0% decline.
3. However, the current trade and commerce situation in India is much conducive as compared to other economies, including China. Thanks to the pro-active steps taken by our government.
4. Today, India is more competitive than China in Energy cost, wages and also in transportation and logistics.
5. The International Monetary Fund projects the global economic recovery to grow 6 percent in 2021 and around 5 percent in 2022.
6. Access to vaccination, additional fiscal stimulus in a few large economies, and continued adaptation of economic activity are some of the major force behind the current recovery projection.

Textile Trade Scenario

1. Global textile & clothing (T & C) trade has contracted by around 5% in 2020 as compared to 2019, whereas global MMF and MMF blended textiles trade has declined by around 2%.
2. In 2020 total global fibre production was around 111 million tons.
3. The share of natural fibers in world fiber production fell from 41% in 2008 to less than 30 per cent in 2020. Whereas global MMF production witnessed around 10% growth to around 80 million tons in 2020.

Exports

1. During 2020, exports of Indian Textiles & clothing declined by around 9% from US$ 34 billion to US$ 31 billion.
2. Exports of MMF & MMF blended textiles witnessed a decline of nearly 20% during 2020-21 as compared to 2019-20.
3. Exports of Manmade fibres witnessed a decline of 26%, MMF yarns declined by 24%, MMF fabrics declined 28% and MMF Made-ups declined 6% during 2020-21.
4. Share of the value-added segments like fabrics and Made-ups was 63% in total exports.
5. The current financial year has been encouraging as exports have significantly picked up with revival in global demand.
6. As per latest data from DGCI&S, Exports are growing in double digit level.
7. During April-August 2021 exports have witnessed 105% growth as compared to the corresponding period of the previous year. While in August 2021 exports have increased around 52% vs August 2020.
8. Current exports have also surpassed the pre-covid level of exports by nearly 14% in April-August 2021 vs April-August 2019.
9. I have strong faith on the enterprising nature and spirits of our members. The hard work, determination and enthusiasm of our exporters will certainly lead to further growth of exports of synthetic textiles by leaps and bounds.
10. Though there is serious concerns on the freight issues, this will also subside shortly with aggressive government remedial measures.
11. I may also mention that to amplify our efforts, the Government is always ready to support and guide us.

Interactions with the Government

1. I personally along with the Team have had several Meetings with Union Ministers viz., Shri Piyush Goyal, Hon’ble Union Minister of Commerce & Industry , Smt. Nirmala Sitharaman, Hon’ble Union Minister of Finance, and Smt. Smriti Zubin Irani, then Hon’ble Union Textile, to discuss and present before them the issues of our industry. I took up and discussed the issues of the industry on a regular basis with the Secretaries and Joint Secretaries of these Ministries and provided them with desired inputs to address our issues.
2. The major steps that Government has taken based on our strong representations were viz., announcement of PLI Scheme for MMF textiles, incorporation of MMF fabrics in the PLI Scheme and also increased the tariff lines, announcement of the RoDTEP and inclusion of entire MMF value chain in the Scheme, etc.
3. Some other major issues that also I have taken up with different Ministries were viz., rationalisation of inverted duty structure in the MMF segment, implementation of Fibre Neutral policy and treat MMF textiles at par with natural fibres, treat exporters both merchant and manufacturing as one, a separate scheme for establishing a world class processing segment, GST refund on Capital goods import/ domestic procurement to encourage more investment, focus on promoting R & D and innovations, conclusion of effective FTAs with EU, UK, USA, etc., release of RoSL/RoSCTL benefits, and so on.
4. Government assures of positive consideration of the issues. I am optimistic that these issues will also be addressed suitably.
5. Council also actively participated on the deliberations on the upcoming New Foreign Trade Policy.

Virtual Meeting with Indian Missions

During the year we have had interactions with Shri Suresh K. Reddy, Ambassador of India to Brazil, Dr. Manoj Kumar Mohapatra, Embassy of India, USA, Mr. Sherif Elgammal and other official of Egyptian Embassy in New Delhi.

Export Promotion Initiatives

1. Friends, as the world was trying to contain the covid pandemic with strict lockdown, all the international and national promotional events were cancelled. However, wherever there was a virtual show, we tried to have participation. During 2020-21 participated virtually in Texworld New York City USA from 12 to 14 January 2021, Colombiatex from 18 January to 5February 2021, BSM in Africa from 15-17 March 2021, and Dhaka International Fabric and Yarn Show from 22 to 24 March 2021.
2. Similarly, we have also organised our flagship show “Source India 2020” virtually and it was a new encouraging experience.

Seminars

Council conducted a series of educative Seminars on important issues during the year. Some of the important ones are webinar on Forex management in association with the Greenback Advisory Services Pvt. Ltd., a Webinar on GST issues by GST expert Mr. Vishal Poddar, and Ms. Archana Jain, webinar on Export Credit Risk Management organised jointly with ECGC Ltd. Mumbai, webinar on “Export Finance, Packing credit, post shipment credit, bill purchasing, bill discounting, Documentation under LC and third party payments for exports, in association with Bank of Baroda, Webinar on Global demand for Sustainable textiles and growth opportunities, webinar on “From Margin to the Mainstream – Roadmap to an efficient Forex & Bond Markets”, and webinar on trade remedy issues in the textile sector.

Acknowledgement

1. I take this opportunity to place on record our gratitude to Shri Piyush Goyal, Hon’ble Minister of Commerce and Industry, Textiles, Consumer Affairs, Food and Public Distribution for his support and continued guidance for the growth of Indian MMF textile segment.
2. I thank Smt. Nirmala Sitharaman, Hon’ble Union Minister of Finance, for listening to the issues being faced by the MMF textile industry and difficulties being faced by the exporters.
3. I also take this opportunity to thank Smt. Smriti Zubin Irani, then Hon’ble Union Minister of Textiles for her hand holding support, guidance and understanding of the problems being faced by the MMF Textile Sector and also for the many result-oriented actions taken by her to stimulate growth in textile industry and revitalize exports.
4. I also thank current Hon’ble Minister of State for Textiles and Railways, Smt. Darshana Vikram Jardosh for her guidance and support to the MMF textiles segment.
5. I thank Shri Upendra Prasad Singh, Secretary (Textiles) for his active guidance and support and look forward to his continued support during these difficult times for taking exports to greater heights.
6. I thank Shri Ravi Capoor, then Secretary (Textiles) for his pro-active initiatives and guidance to the MMF textile segment.
7. I also thank Ms. Roop Rashi, Textile Commissioner for her continued support and guidance.
8. I thank Shri B.V.R. Subrahmanyam, Commerce Secretary, for his support and guidance during the challenging times of covid pandemic.
9. I also thank Dr. Anup Wadhawan, then Commerce Secretary for his understanding of the problems of the exporters and for the prompt action initiated by him in resolving the same.
10. I am also grateful to Shri Amit Jadav, D.G.F.T and his team of dedicated officers meticulously handling the matters connected with Exim Policy and Procedures.
11. My sincere gratitude to Shri G. K. Pillai, Chairman of the Drawback Committee and his team for being extremely positive to the suggestions made by the Council and we are indebted to them for having given due recognition to our Drawback Proposals and for their help and guidance especially in matters relating to Duty Drawback.
12. I would like to express my deep appreciation to Shri Ronak Rughani, our Immediate Past Chairman for his support and professional advice.
13. I would also like to place on record my gratitude to all the former Chairmen Shri Anil Rajvanshi, Shri Narain Aggarwal, Shri Vinod Ladia, Shri Rakesh Mehra, Shri Sanjeev Saran and former vice-chairmen, Members of the Committee of Administration who have spared their valuable time and contributed creatively to deliberations and activities of the Council. I am truly indebted to them for their unconditional support and valuable advice.
14. My special thanks Shri Bhadresh Dodhia, Vice – Chairman for his active involvement in all the activities of the Council and valuable support.
15. I thank all the Officers and Staff of the Council who have been diligent and committed in the discharge of their duties which I highly appreciate.
16. I now present to you the Annual Report of the Committee of Administration and Balance Sheet for the year ended 31^st March 2021 and move that the same be adopted.

RESOLVED THAT THE ANNUAL REPORT OF THE COMMITTEE’S PROCEEDINGS, THE REPORT ON THE STATE AND FINANCIAL CONDITIONS, THE AUDITED BALANCE SHEET AND INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31^ST MARCH 2021, BE AND THEY ARE HEREBY APPROVED AND ADOPTED.