Aftermath of outbreak of the Coronavirus disease (COVID-19) that was first reported from Wuhan, China, on 31 December 2019, global trade scenario has witnessed real disruptions. The World Economic Forum sees huge economic damage due to the COVID-19 around the world because businesses are dealing with loss of revenue and disrupted supply chains due to China’s factory shutdowns, tens of millions of people remaining in isolation in dozens of cities and other countries extending travel restrictions.
In view of the prevailing global situation specially in the supply chain pertaining to Manmade fibre textile segment, Shri Ronak Rughani, Chairman SRTEPC fast stepped in with acute observations and assessments on potential tariff lines wherein Indian companies need to focus on. Shri Ronak Rughani says that outbreak of the COVID-19 in Wuhan, China throws up opportunities as well as challenges, as China holds a major stake in the global trade and now the entire global supply chain has been impacted.
Shri Ronak Rughani, Chairman SRTEPC mentioned that in line with the Government’s effort to fill up the emerging gaps in the global supply chains, the Synthetic and Rayon Textiles Export Promotion Council has also been making efforts to fill up the due share globally in the Manmade fibre textiles segment. Citing an assessment made by SRTEPC on global exports of MMF textiles by China and India, Shri Ronak Rughani informed that the leading five markets for Chinese MMF textiles alone viz., USA, Vietnam, Bangladesh, Brazil and Turkey cater to more than double of India’s present total exports of MMF textiles to the entire world in value terms. SRTEPC has prepared a segment-wise list of five most potential product lines for top five markets to focus on. Regarding the emerging gaps in the major MMF textile consuming markets, SRTEPC made a detailed Power Point Presentation before the Hon’ble Minister of Textiles Smt. Smriti Zubin Irani and Secretary (Textiles) Shri Ravi Capoor wherein the market-wise focused list of items were highlighted.
The main segments being highlighted by the Council to focus on are Made-ups for USA; Knitted & Woven Fabrics for Vietnam and Bangladesh; Knitted & Woven Fabrics and Filaments for Brazil and Filaments & Spun Yarns for Turkey. The targeted tariff lines in the Made-ups segment are Blankets, Curtains & interior blinds, Tarpaulins, awnings & sunblinds, Shawls, scarves, mufflers, mantillas, veils, etc, Flexible intermediate bulk containers, etc. In the Knitted fabrics segment the tariff lines are Pile fabrics, dyed fabrics, etc. In the Woven fabrics segment the tariff lines are Printed plain weave fabrics, polyester staple fibre 85% + cottn,wt.170g/m2, Dyed woven fabrics 85% artificial fibres, Dyed 3 or 4-thread twill polyester staple fib85% +cottn,wt.170g/m2, etc. In the Filaments segment the tariff lines are polyester partially oriented untwist or twist50turns/m, Other yarn of polyester, untwist or twist 50 turns/m, not for retail sale, Other yarn of polyesters, single, twist 50 turns/m, not for retail sale, etc. In the Spun Yarn segment the tariff lines are Multiple or cabled yarn, staple fibres of nylon/other polyamides, Single yarn, staple fibres of nylon/other polyamides, Yarn of polyester staple fibres 85%, mixed solely/mainly with artificial staple fibres, etc.
Shri Ronak Rughani, Chairman SRTEPC informed that if India could accommodate even 20% share of the total Chinese exports of MMF textiles to these markets then our exports will cross US$ 8 billion. While representing to the Government about the emerging gaps in the global MMF textile trade and corresponding efforts made by the Council to increase exports, Shri Ronak Rughani insisted on Government’s support for Fibre neutrality, inclusion of MMF Fabrics, Yarns and Fibres in the RoSCTL/ RoDTEP Scheme, signing of effective FTAs with major textile consuming markets/ regions such as EU, GCC, Brazil, USA, etc. review the India – ASEAN FTA, etc. We have also sensitised the industry on the potential segments, markets, specific tariff line etc. to focus on and urged the industry to swiftly work for filling up the gaps emerging in the global MMF textile supply chain, Shri Ronak Rughani informed.
