SPEECH OF CHAIRMAN, SRTEPC AT THE 68th ANNUAL GENERAL MEETING

Shri Ronak Rughani, Immediate Past Chairman

Shri Bhadresh Dodhia, Vice – Chairman

Former Chairmen,Members of the Committee of Administration, Members of the Council and Members of the Media

Ladies & Gentlemen

1.  It is indeed a privilege to welcome you all to the 68^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 2022 have already been with you and with your permission I take them as read.

Economic Outlook

2. Friends, as you all know COVID-19 pandemic paralyzed economies around the world for two years that caused a lasting damage on labor productivity and potential output.
3. The current year also global output declined in the second quarter, owing to downturns in China and Russia, while US consumer spending undershot expectations.
4. Several shocks have hit a world economy already weakened by the pandemic: higher-than-expected inflation world wide especially in the United States and major European economies triggering tighter financial conditions; a worse-than-anticipated slowdown in China, reflecting COVID- 19 outbreaks and lock downs; and further negative spillovers from the war in Ukraine.
5. World Economic Outlook of IMF forecasts reduced the growth to 3.2% in 2022 from 6.1% last year. Major factors for lowering the forecast are reduced household purchasing power, tighter monetary policy by the United States, further lock downs and the deepening real estate crisis in China, spillovers from the war in Ukraine, etc.

Textile Trade Scenario

6. Global textile & clothing (T & C) trade has declined by around 5% in 2020 as compared to 2019 mainly because of Covid-19 pandemic, whereas in 2021 Global T & C trade has increased about 16% as compared to 2021.
7. During 2020 global MMF and MMF blended textiles trade declined by around 13% as compared to 2019 but in 2021 global MMF and MMF blended textiles trade grew over 26% as compared to 2020.
8. In 2021 total global fibre production was around 111 million tons.
9. Global MMF production witnessed around 10% growth to around 80 million tons in 2020 with a share of around 70%, whereas the share of natural fibers in world fiber production fell from 41% in 2008 to less than 30% in 2021.

Exports

10. I am glad to inform that during 2021-22 our exports of MMF & MMF blended textiles were US$ 6774 million as compared to US$ 4645 million in the previous year witnessing a substantial 46%jump in exports.
11. Exports of MMF have grown 82%, MMF yarns have grown 72%, MMF fabrics grown 30% and MMF Made-ups witnessed 28% growth during 2021-22 as compared to the previous year.
12. However, we must note that the share of the value-added segments like fabrics and Made-ups in total exports has gone down from 63% to 56%. In line with Government’s vision and initiatives such as“Make in India”, “Atmanirvar Bharat” We should also focus on more value-addition within the country.
13. It is also to inform you that the current financial year’s exports have been slightly stressed in the 1^st quarter, however, encouraging turnaround has been seen from August exports,as exports during April-August estimated to be around US$ 2500 million as compared to US$ 2450 million.
14. I have strong faith on the enterprising spirits of our members. The hard work, determination and enthusiasm of our exporters will certainly lead to further growth of exports of synthetic textiles to greater heights.

Interactions with the Government

15. As you all are aware, in March 2022 Hon’ble Prime Minister Shri Narendra Modi interacted with stakeholders of the trade & commerce sector and Heads of Indian Missions abroad through video conference. That was a maiden initiative of its kind, 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. The Prime Minister appreciated the efforts in achieving the highest ever merchandise exports of USD 422 Billion during 2021-22 and textiles and clothing alone US$ 44 billion.

Our Council had participated in the virtual meeting from two Centres from Mumbai and Surat. There was excellent response from both Mumbai and Surat centre from where our member- exporters attended. With the Hon’ble Prime Minister,we discussed to build a clear vision and road map for future India and Export Ambitions for which all the stakeholders play a major role. The Prime Minister lauded the stakeholders and commended the enthusiasm, optimism and commitment shown by all of them to achieve our ambitious goals regarding exports.

16. During my tenure I got opportunity with the Ministers to closely discuss the issues of MMF textile segment. Government could understand and realise the importance of the MMF textiles sector in the entire textile value chain. 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. Darshana Vikram Jardosh, Hon’ble Minister of State for Textile and Railways, to discuss and present before them the issues of our segment. 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.
17. The major steps that Government has taken based on our strong representations were viz., announcement of PLI Scheme especially for MMF textiles, continuation of the ATUF Scheme, rationalization of RoDTEP rates, granting of mandate to SRTEPC for promotion of export of Technical Textiles, etc.
18. Government assured of positive consideration on some of the issues suggested by us are formulation of PLI 2 Scheme and incorporation of more MMF textiles in the Scheme, continuation of EPCG Scheme in the forthcoming FTP, extension of Interest Equalisation Scheme for yarns, 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.
19. Council is also actively participating on the deliberations on the upcoming New Foreign Trade Policy and Union Budget.

Export Promotion Initiatives

20. Friends, we could not physically participate in all exhibitions for past two years due to covid-19 pandemic. During 2021-22 we participated in Texworld New York virtually, Alltex Expo in Ukraine physically just before start of the war, Intex South Asia digitally, digital BSM with Brazil, IM INTERMODAin Mexico & Colombiatexphysically, Istnabul Yarn Fair

We also organised our signature event Source India 2022 along with Export Award Function in Surat in March. This was the historic event for the first time in the Council and inaugurated by Smt. Darshana Vikram Jardosh, Hon’ble Minister of State for Textile and Railways. The grand event was highly appreciated by the members and industry stakeholders.

Acknowledgement

21. 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.
22. 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.
23. I also take this opportunity to thank Smt. Darshana Vikram Jardosh, Hon’ble Minister of State for Textile and Railways 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.
24. 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.
25. I thank Smt. Shubhra, Trade Advisor in the Ministry of Textiles for her directions, guidance and support.
26. I also thank Smt. Roop Rashi, Textile Commissioner for her continued support and guidance.
27. I thank Shri B.V.R. Subrahmanyam, Commerce Secretary, who is retiring from his assignment as CS tomorrow for his support and guidance during the challenging times of covid pandemic and till date.
28. I welcome Shri Sunil Barthwal, who is taking charge as the new Commerce Secretary,from 1^st October 2022.
29. I am also grateful to then DGFT Shri Amit Yadav, and his team of dedicated officers meticulously handling the matters connected with Exim Policy and Procedures.
30. I also thank Shri Santosh Kumar Sarangi, DGFT for his proactive initiatives and cordial support to the industry and resolving the day – to – day issues of our exporters.
31. I would like to express my deep appreciation to Shri Ronak Rughani, our Immediate Past Chairman for his support and professional advice.
32. I am glad to have full support of Shri Bhadresh Dodhia ji with his very active and practical domain knowledge as VC.
33. I would also like to place on record my gratitude to all the former Chairmen and 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.
34. 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.
35. I now present to you the Annual Report of the Committee of Administration and Balance Sheet for the year ended 31^st March 2022 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 2022, BE AND THEY ARE HEREBY APPROVED AND ADOPTED.