APPAREL EXPORT PROMOTION COUNCIL Regd. Office:-A-223, Okhla Industrial Area, Phase-1, New -110020 CHAIRMAN’S SPEECH CIN NO. U74899DL1978NPL008877 nd Telefax No. 011-40501798, Email:[email protected], Website: www.aepcindia.com Speech by Dr. A. Sakthivel, Chairman, AEPC at 42 AEPC ANNUAL GENERAL MEETING on 14th August, 2021, Through Video Conferencing Chairman’s Speech 42nd AEPC Annual General Meeting

Dear Colleagues, Shri Tarun Bajaj, Secretary (Financial Services) Shri Debasish Panda, Special Secretary (Logistics) Department of Commerce Shri Pawan On behalf of the Executive Committee of Apparel Export Promotion Kumar Agarwal, Joint Secretary, Department of Commerce Smt Nidhi Council and on my personal behalf, I take great pleasure in extending a Mani Tripathi and Joint Secretary (Drawback) Shri Nitish K Sinha among very hearty and warm welcome to all of you at this 42nd Annual General few others. Meeting of the Apparel Export Promotion Council. The Notice convening the meeting, the Annual Report for the financial year ended 31st March I also met Hon'ble of Tamil Nadu Shri M K Stalin and 2021, along with Annual Audited Accounts and Auditors' Report have submitted a memorandum, highlighting proposals to accelerate exports been with you, and with your permission, I take them as read. from the state by three folds, from the present $30 billion, in a period of five years. The year gone by was one of the most difficult and challenging one that many of us have faced and it has impacted our lives in unforeseen ways. I welcome the government's decision to continue the Rebate of State The COVID-19 pandemic has cast a shadow of uncertainty and anxiety and Central Taxes and Levies (RoSCTL) Scheme on Apparels and st all over the world. Through these difficult times the relentless effort and Made-Ups till 31 March 2024 at the same rate. I am extremely grateful to determination of all the frontline health and social workers has stood out Hon'ble Prime Minister Shri , Hon'ble Finance Minister as a beacon of hope for humanity and I would like to convey my sincere Smt , and Hon'ble Minister of Textiles, Commerce & st gratitude to them for not only keeping us safe but also helping the Industry Shri for extending the RoSCTL scheme till 31 economy move forward. March 2024. This ensures a stable and predictable policy regime and will prove to be fillip for exports of globally competitive Indian apparel. As we started the financial year 2020-21 in the midst of the nationwide lockdown, our first and foremost priority was to ensure the health and Now, I would like to highlight some of the initiatives, well-being of all our employees and workers engaged in the Apparel taken by me, during the year, for the benefit of Apparel Export Industry by setting up work-from-home infrastructure and Export Industry:- ensuring safe sanitized workplaces and vaccinations for the worker &

staff engaged in the Apparel Export Industry. 1. Launch of AEPC Virtual Platform. In order to bridge the gap of buyer & seller during these trying times, I Our gratitude to Hon'ble Prime Minister Shri Narendra Modi for ensuring have taken an initiative for development of Virtual Platform of AEPC free vaccines for all – a must for economic recovery as it will help ensure safer workplaces. I also thank our members who contributed more than to organize export promotion activities on the platform. Rs 1.60 crore towards fighting the pandemic in Tamil Nadu. This platform was inaugurated by Shri M. Venkaiah Naidu, Hon'ble st I am happy to share that after taking charge as President of Federation of Vice President of on 21 January, 2021 in the presence of Madam Indian Export Organisations (FIEO) on 28 June 2021, I met Hon'ble Vice Smriti Zubin Irani, the then Hon'ble Union Minister of Textiles. Total 324 Shri M. Venkaiah Naidu and apprised him about export exporters have uploaded their company profiles and 611 buyers have scenario of the Country. I also met Hon'ble Finance Minister Smt Nirmala visited & registered themselves on the virtual platform. Sitharaman and Hon'ble Minister of Textiles, Commerce & Industry Shri Piyush Goyal and apprised them about concerns related to the apparel 2. Promotion of MMF Garment export sector. I also had the great opportunity to discuss our issues and I have taken up the issue of promotion of MMF garments with the challenges with Commerce Secretary Shri B.V.R Subrahmanyam, Government. The Govt. of India announced an outlay of Rs.10683 Crore Textiles Secretary Shri Upendra Prasad Singh, Niti Aayog CEO Shri towards Production-Linked Incentive (PLI) Scheme to enhance India's Amitabh Kant, Directorate General of Foreign Trade (DGFT) Shri Amit manufacturing capabilities of MMF segment and Technical Textiles. The Yadav, Central Board of Indirect Taxes and Customs (CBIC) Chairman PLI scheme in MMF segment and technical textiles is aimed at making Shri Ajit Kumar, MSME Secretary Shri BB Swain, Revenue Secretary

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Indian manufacturers globally competitive, attract investment in the Commissioner's Office has been advised to find evidence of cartelization areas of core competency and cutting-edge technology; ensure which is resulting in spikes of cotton yarn prices and hurting the overall efficiencies; create economies of scale; enhance exports and make interest of the industry. Former Hon'ble Textile Minister also cautioned India an integral part of the global supply chain. Mill Associations that Cotton Corporation of India will blacklist for 3 years such mills which are hoarding and inflating the prices. She also To support the government's vision to enhance investment and requested Secretary (Textiles) to immediately take it up with the capacities in MMF segment, we have taken various initiatives i.e MMF Competition Commission of India for taking penal action against such Cell in AEPC has been setup, Compendium on MMF Garments has mills which are hoarding and inflating prices. been prepared and launched by Secretary (Textiles) which will help the apparel manufacturers to understand the profile of MMF garments like I have assured full cooperation for a third party study with regard to the exports, price, sample pictures etc, Resource Centre with a spikes in cotton yarn prices. AEPC has said that the proposed study by comprehensive collection of MMF garments and fabric swatches has Texprocil and Textile Commissioner's Office for conducting a data driven, been created at Apparel House, Gurgaon, letters have been written to statistical study with the aim of including "forensic details" that are fabric suppliers in Vietnam, South Korea and Taiwan for joint venture or causing these spikes will greatly help in understanding the sources of the 100% FDI or technical collaboration for manufacturing and processing of spikes and controlling them. With Ministry's support, such a study can man-made fabrics in India and organized several webinars and B2B set precedents for a data driven management of the supply chain meetings, etc. imbalances. This decision is important to prevent supply chain imbalances and will protect lakhs of livelihoods. Due to the price hike in I am extremely grateful towards Hon'ble Shri yarns, lot of powerloom units have been closed and MSMEs have been Narendra Modi, and Hon'ble Minister of Textiles, Commerce & Industry badly impacted. MoT's investigation will help in saving the livelihood of Shri Piyush Goyal for removing Anti- dumping Duty on Viscose Staple lot of workers in the powerloom sector and apparel industry. Apparel fible (VSF). I also appreciate the efforts of the then Minister of Textiles, manufacturers believe that this investigation will help in curbing the Smt Smriti Zubin Irani for initiating thorough investigation in February, steep increase and unpredictability in availability of cotton and yarn, 2021 which will give flip to the MMF Sector. which is hampering the apparel industry's order book planning and overall competitiveness of the entire value chain. 3. Stability in Cotton Yarn Prices India is looking forward to new opportunities coming its way due to new We look forward to a policy to encourage value added exports, so that international developments, like ban on imports of cotton from Chinese the international developments, like ban on imports of cotton from province of Xianjing. In this regard the Council has expressed Chinese province of Xianjing can become an opportunity for India to confidence that Indian apparel exporters can meet the expected increase its value added exports in the textile value chain. increased demand, if the price and availability of inputs like cotton and yarn are stable. In response to the steep hike in prices during the year, 4. Release of old ROSL AEPC had requested the Hon'ble Union Textile Minister for intervention I have taken up the matter with all concerned departments, like CBIC, regarding stabilizing the prices of cotton and cotton yarn, and bringing DGFT, and relating to shipping bills not getting stability in the supply of yarn to domestic manufacturers. It had been reflected in the DGFT portal and exporters are not being able to apply for requested that quantitative restrictions and export duties may be the old ROSL that has been pending for several years. The matter has imposed on exports of raw cotton and cotton yarn. I had several VCs with been resolved partially. stakeholders like CITI, CMAI, PDEXCIL, TEXPROCIL, FIEO, SIMA, NITRA, CCI and raised the concern of increasing yarn prices and 5. AEPC Facilitation for Risky Exporters availability of yarn. It has been discussed that there should not be any AEPC has been constantly following up with DGARM to remove the disruption of any yarn supply and to keep the price stable. Risky exporters tag from our members. Council send weekly letter to

Former Hon'ble Minister of Textiles, during a press meet had expressed intent to find evidence of cartelization. Accordingly, the Textile

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DGARM for following up of the status of risky exporters. AEPC has been interacting continuously with DGARM and receiving regular updates on 8. Relief received towards Non-realization of export proceeds on the Risky Exporter cases. account of Bankruptcy / Insolvency/discounting/cancellation of export orders 6. AEPC Facilitation for TUFS issues I have taken up the matter of possible relief against non-realization of With the aim to facilitate faster resolution of the pending TUF cases, export proceeds due to overseas buyers Bankruptcy/Insolvency/ video conferences were held with Secretary (Textiles) & Textile discounting/cancellation of export orders. We have represented the Commissioner to discuss the policy and procedural issues that have issue before the Hon'ble Commerce and Industry Minister and resulted in the pendencies. AEPC had received over 203 cases, which concerned authorities namely DGFT & JS (DBK) seeking relaxation in were compiled, and categorized. Based on the categorization, the Policy for exemption from refunds of ROSCTL/Drawback and issues were taken up. consideration of fulfillment of EO for Advance Authorizations, SAA, EPCG licenses in respect of these cases. In response, the positions of I have taken up the major issues like Year of Manufacturing and Machine DGFT, RBI and Drawback Division, Department of Revenue have been Serial Number not indicated on the machines and issues related to the advised to Members, so that they can find resolution accordingly. bank moratorium period, wherein the non-SSI units we had requested that the period should be 4 years instead of 5 years, interpretation of the 9. Revision in definition of MSME to enable more exporters to requirement of in-principle sanction date, etc several times with Office of avail of the MSME benefits Textile Commissioner and Ministry of Textiles. I have taken up the matter with Ministry of Finance, Ministry of MSME, Ministry of Textiles, Ministry of Commerce and Industry regarding special Of the 203 cases referred to us, positive results were received for many relief package for MSMEs and re-classification for promotion of cases. The term loan period, including moratorium period, for Non- investment in the sector. As a result of continuous representations the MSMEs cases have been brought at par with the MSME at 3 years, new definition of MSME was announced and turnover with respect to condonation of delay in cases due to delay by Banks is being exports will not be counted in the limits of turnover for any category of considered, issue of Year of Manufacture on the machines and cases MSME units whether micro, small or medium. pending for JIT applications or JIT application delays are also being taken up actively. 10. Recommendations and suggestions made to Ministry of Labour and Employment I have also raised ATUFS related policy procedure issues in the The has proposed to amend various labour laws Stakeholders consultation meeting for reducing compliance burden and with an objective to help investors, to accelerate growth and ensuring matters relating to streamlining the processes under Amended ease of doing business and compliance. On September 22, 2020 Technology Upgradation Fund Scheme (ATUFS) held under the following three codes were passed in and on September 23, chairpersonship of Hon'ble Minister of Textiles on 6th July, 2021. We look 2020 in : forward to early resolution of the cases. 1. The Industrial Relations Code 2020 7. Capacity building for PPE Production and Opening up of PPE 2. The Social Security Code 2020 3. The Occupational Safety, Health & Working Condition Code 2020 Exports I have been actively following up for opening up of the PPE and related Later rules on the “Code on Wages 2019” have been notified which were product exports with DGFT, Ministry of Textile and Ministry of Commerce followed by the rules notification on codes of The Industrial Relations, during early 2020, when several of the Covid prevention related products The Social Security and The Occupational Safety, Health & Working were put on prohibited / restricted exports list. In response to the VCs Conditions. held with CIM and HMoT, exports of PPE products were gradually opened up with free export of the PPE items. Based on recommendations of consultant engaged by the Council

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for labour laws and stakeholder consultations, I had sent the recommendations and suggestions on the DRAFT Rules – Code on 14. Monetary and fiscal support received by Industry through RBI Wages, Draft Occupational Safety, Health and Working Conditions I have made several representations to Finance Minister & RBI Rules and Regulations 2020, Draft Social Security (Central Rules 2020) for relief package for exporters to meet their credit & Draft Industrial (Central ) Rules 2020 to the Hon'ble Minister of the requirements. RBI provided many relaxations to exporters like Ministry of Labour and Employment on behalf of the Apparel Industry. moratorium on term loan instalments, deferment of Interest on Working Capital Facilities, Easing of Working Capital Financing, Time period for 11. Emergency Credit Line Guarantee Scheme (ECLGS) realization and repatriation of export proceeds has been extended to 15 I have written to RBI Governor for the various changes in ECLGS months from the date of export, Review of Resolution Timelines under scheme to facilitate apparel exporters. Credit Line the Prudential Framework on Resolution of Stressed Assets, Exemption Guarantee Scheme (ECLGS) has been formulated by the Government for the exporters from enforcement of the provisions of automatic caution of India as a specific response to the unprecedented situation caused by listing, for a further period of six months till 30 September, 2020, Micro, COVID-19 and the consequent lockdown, which has severely impacted Small and Medium Enterprises (MSME) sector – Restructuring of manufacturing and other activities in the MSME sector. It seeks to Advances, Direct Dispatch of Shipping Documents, “Write-off” of provide much needed relief to the MSMEs/businesses by incentivizing unrealized Export bills, RBI on 21st August 2020 has instructed the banks MLIs to provide additional credit of up to Rs. 4.5 lakh crore at low cost, that the value of Plant and Machinery or equipment for all enterprises thereby enabling MSMEs/businesses to meet their operational liabilities shall mean the Written Down Value (WDV) and not the acquisition or and restart their businesses. Currently, ECLGS scheme is valid upto original price etc. 30.09.2021 or till an amount of Rupees Four Lakh Fifty Thousand Crore is sanctioned. 15. Extension of Interest Equalisation Scheme I have requested to Hon'ble Finance Minister, Hon'ble Union Commerce 12. ECGC Claims & Industry Minister and Governor RBI for extending the Interest I have actively taken up the issues of pending ECGC claims with ECGC Equalisation Scheme for a period up to 31st March, 2022. Government and requested to expedite ECGC Claims of Apparel Exporters, of India has approved the extension of Interest Equalization Scheme for especially on account of bankruptcy cases. In this regard, two webinars Pre and Post Shipment Rupee Export Credit, with the same scope and were organized with MD, ECGC besides submission of several coverage, for a further period of three months, i.e., up to September 30, representations. Further, ECGC reiterated that the garment exports 2021. The extension takes effect from July 01, 2021 and ends on being a critical sector to India's Exports, form a significant part of ECGC's September 30, 2021 covering a period of three months. insurance cover. They assured that they shall continue all their endeavors towards settlement of claims. 16. Extension of Export Performance Certificate (2019-20) beyond 31st March, 2020 13. Request for fast tracking of FTAs I have interacted with Secretary (Revenue) and MoT for extension of I have represented to PMO, CIM & HMOT for fast tracking FTA/CEPA EPCs issued for the F.Y 2019-20 due to pandemic as many of the with EU, UK, US, Australia and Canada. India has been facing duty exporters could not use the EPC which was valid uptil 31st March, 2020. disadvantages against competitors in the major overseas destination. In Accordingly, the EPCs of 2019-20 were extended uptil 30 September, EU India's exports face a duty disadvantage of 9.6% for exports to EU 2020 and the exporters who were not able to use the EPC uptil 31st vis-à-vis exports from other countries like Bangladesh, Cambodia, March, 2020 were able to use it uptil 30th September, 2020. Turkey, Pakistan, Sri Lanka etc. In UK, Bangladesh continue to enjoy preferential trade benefits after the UK's departure from the EU. The 17. Study Conducted by AEPC present duty structure in Canada shows a 17.5% differential via-s-vis I have initiated for a study on Market for Indian Apparel in United States – Bangladesh and Cambodia. Further, in Australia, Bangladesh, Trends, Potential, and Expansion Strategy” jointly with Embassy of Cambodia, Vietnam & China have zero duty access to Australia and India, Washington D.C and entrusted M/s. KPMG Advisory Services India faces duty of 5%. Private Limited, Gurugram the study. The agency had submitted its final

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study report and recommends various components impacting the Exports as essential services and exempt the exporting units from sourcing decisions taken by the US Brands/Retailers and the problems Covid-induced lockdowns. This is because, Apparel exports, especially faced by Apparel Industry in India. the high fashion categories have very short delivery times and hence should be treated at par with perishable goods. The demand for these 18. Resolving the issue of migrant workers and labor shortage fashion garments are very dynamic and time sensitive. Once these during pandemic. fashion garments are out of fashion, they can neither be sold in the I have taken up the issue of migrant workers with Pravasi Rojgar (a Sonu international market nor in the domestic market, leading to cancellation Sood Initiative) by joining hands with them in order to place trained of orders and huge loss to the producers. manpower in the Apparel Industry during the pandemic. Many of the Apparel exporters from Tirupur and other major Apparel clusters 23. Request to Apparel Exporters to vaccinate their workers. recruited trained manpower in various departments of production. I have requested all AEPC members to get their workers/ staff Covid-19 vaccinated at the earliest and also requests them to use their CSR funds 19. Meeting with American Apparel & Footwear Association for setting up makeshift hospitals and temporary Covid Care facilities. I have attended a Zoom meeting with Mr. Stephen Lamar, President & CEO, AAFA on 02nd December, 2020 on the issue of promoting apparel 24. Meeting with buying houses and associations exports from India to USA by organizing B2B meetings with American I have convened a special meeting with other EC members and buying buyers. houses & buying agents associations, to discuss the situation arising out of Covid- 19, Second Wave. I assured them the situation in India is 20. Membership with International Apparel Federation (IAF) getting better and requested buyers not to cancel their orders as India I have taken up the matter of taking membership with International will bounce back by mid-June. Apparel Federation (IAF) a world's leading federation for apparel manufacturers, (SME) brands, their associations, and the supporting 25. AEPC helps Tamil Nadu in combating COVID-19 pandemic. industry. Their membership now includes apparel associations and AEPC has come forward and extended full support to Tamil Nadu companies from more than 40 countries. IAF, which is based in the Government in combating Covid-19 pandemic in the state. The Council Netherlands, brings its members together to jointly create stronger, coordinated with the State Government authorities to conduct a smarter and more sustainable supply chains. AEPC is now member of vaccination drive for apparel workers in Tirupur. AEPC Members has IAF. The Indian Apparel Exporters will reiterate their rights and ethical made a contribution of Rs. 1.60 cr. to Tamil Nadu Government for its fight trading practices with their buyers across the world and further they can against the coronavirus pandemic in the state. have access to the International Buyers' Community in a rightful manner. 26. Apparel Dossier 21. Memorandum of Understanding with INTERNATIONAL For the benefit of AEPC member, I have initiated a weekly Apparel FINANCE CORPORATION - a member of The World Bank Dossier. The Dossier aims at updating the members about weekly news, Group. notifications and the issues that AEPC has taken up for AEPC Members.

I have signed a MoU with INTERNATIONAL FINANCE CORPORATION 27. Outlook of AEPC changed. - a member of The World Bank Group. This step was taken for increasing During the last one year, I have made a conscious attempt to change the the knowledge of national labs in India; improving the understanding of outlook of AEPC completely. AEPC is now working with the moto of key stakeholders on voluntary standards for non-medical masks; and providing best services to the exporters. All efforts have been made increasing global knowledge on PPE topics through a series of during the year to take up the individual issues of the exporters and webinars. resolve them immediately. SG, AEPC, Officials at HO & Regional Offices are actively involved in facilitating exporters, especially with regard to 22. Request to Hon'ble Prime Minister of India for considering risky exporters cases, pending ROSL cases, GST cases and COVID Apparel Exports as “Essential Services” related problems etc. I have requested Hon'ble Prime Minister of India to declare Apparel

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Export Performance i. India-UAE B2B meeting on 21st October, 2020. ii. India-Canada B2B meeting on 3rd December, 2020. iii. India-Spain B2B meeting on 15th December, 2020. Apparel export Industry was badly hit by the Covid-19, I am happy to iv. India-Mexico B2B meeting on 16th February, 2021. share that the industry's resilience, supplemented by Govt support has v. India-Columbia B2B meeting on 22nd February, 2021. resulted in a good revival since April this year. With mass vaccination in vi. India – USA B2B meeting on 18th February and 23rd March, 2021. every western market resulting in opening of these markets, the demand vii. India – Poland B2B meeting on 29th June, 2021. is picking up. India's apparel exports is picking up, with exports during viii. India – Israel B2B meeting on 11thJune and 8th July, 2021. April- July 2021 recording an increase of 91% over the same period of previous year. Also, exports to our major markets is increasing - exports to USA has increased by 22% during January-May, 2021 as compared International Fairs to same period of previous in year. India's exports to EU has also increased by 22% during January-April, 2021 as compared to same During the year Council have also participated in following International period of previous in year. India's exports to its other markets like UK, Fairs:- Saudi Arabia, Canada, Japan, Australia is also increasing. i. India Trend Fair (ITF), Japan (10-11 September, 2020) During the year 2020-21, we have recorded apparel exports worth US$ ii. Apparel Textile Sourcing Canada (ATSC), Canada (Virtual show) 12289 mn, a 20.8 percent decline over last year. This was largely due to (26 - 30 October, 2020) the pandemic. While on demand side, it shrunk the global apparel iii. Sourcing at Magic, Las Vegas, USA (15th September to 15 market by around 10%, on the supply side, the lockdowns restricted the December, 2020 - Digital Show) capacity to export. The decline in global demand hit our exports to major iv. Sourcing at Magic, Las Vegas, USA (1st March to 1st May, 2021 – destinations like North America and the EU. Digital Show) v. Sourcing at Magic, Las Vegas, USA (1stAugust to 30th September, India's exports to EU was worth, US$ 3348.9 mn. in 2020-21; a decline of 2021 – Digital Show) 19.5 percent as compared to previous year. Because of Brexit and reduction in exports, though EU's share in India's RMG exports has Asset Management increased to 27.3% in 2020-21, as against 26.2% during 2019-20. In 2020-21, USA remained top destination for India's RMG exports with USD 3292.9 mn. Exports; registering a decline of 22.4%. India's RMG I would like to inform that construction of Vastra Bhawan at Hyderbabad exports to UAE amounted to USD 1609.4 mn. in 2020-21. Share of UAE has been completed this year and occupancy certificate is also received in 2020-21 has increased to 13.1 % from 10.9 % in 2019-20. from the Greater Hyderabad Municipal Corporation (GHMC) for the use of institutional use. The Vastra Bhawan has been constructed with skylight for ample natural lighting, has handicap friendly accessibility, is Virtual Buyer Seller Meets surrounded by lush green trees and has ample open space parking. Vastra Bhawan is easily accessible through Hyderabad metro (200mtr), I am happy to inform that we found different ways of coping with the MMTS Station (02 km), Secunderabad Railway station (12km), and emerging scenario while firefighting at many fronts in the pandemic year, Airport (23km). one of the most strategic moves that the Council took for a lasting solution is the way we engage with buyers. We embraced digitalization in Skill Assessment CELL all our activities from showcasing our apparels to engaging in B2B talks. We organized following Buyer Seller Meets by Virtual Mode, during the The Skill Assessment Cell (SAC) was established during September, year with support of Indian Embassies/High Commissions at respective 2009 with the aim to drive the skill assessment initiatives in Apparel / Countries.

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Garment, Khadi and Carpet sectors for employment generation, sector in the PLI scheme is focused on manmade fibre (MMF) segment economic growth and social development. and technical textiles. This is a golden opportunity for many apparel exporters who are yet to foray into MMF garments. While MMF-based Council has been associated with Director General of Employment & garments account for bulk of the global demand, technical textiles is the Training (DGE&T), Integrated Skill Development (ISD) Scheme of sunrise sector. Ministry of Textiles for Non-MES courses for Apparel & Textile sector, Resource Support Agency (RSA), Textiles Committee, Apparel, Made- I express my sincere gratitude to the then Hon'ble Minister of MSMEs Ups & Home Furnishing Sector Skill Council (AMHSSC), Shri for accepting our long-standing request to increase Commissionerate of Industrial Training & Employment (KVIT), Skill the investment and turnover limits of MSMEs. Besides, the written down Mission at Karnataka state. value of plant and machinery has replaced its purchase price for investment calculation, and there is no turnover limit for exporters. This Since its inception i.e from 2009 till date Council has assessed over 1.66 initiative of Hon'ble Minister will give leverage to MSMEs to compete lakhs candidates in the above referred schemes. globally and makes new path for budding enterprise for venture into.

Acknowledgements I would like to congratulate and welcome Shri Piyush Goyal, the new Hon'ble Minister of Textiles, Shri Narayan Tatu Rane, Hon'ble Minister of I express my sincere gratitude towards Hon'ble MSME, Smt Darshana Vikram Jardosh, Hon'ble Minister of State in the Shri M Venkaiah Naidu and the then Hon'ble Minister of Textiles Smt Ministry of Textiles, Smt , Hon'ble Minister of State in the Smriti Zubin Irani for inaugurating the Virtual Exhibition Platform of Ministry of Commerce & Industry and Shri , Hon'ble AEPC. The virtual platform, along with online B2B meetings has become Minister of State in the Ministry of Commerce & Industry. I truly believe a strategic turning point in the history of India's Apparel Exports, given that Apparel Export Industry will reach to new heights under their the growing positive sentiments towards India, both due to India's Covid- dynamic leadership. 19 vaccine diplomacy and increasing disenchantment with China. I am extremely grateful to Hon'ble Prime Minister Shri Narendra Modi, On behalf of the Apparel Industry, I would like to thank and appreciate the Hon'ble Minister of Textiles, Hon'ble Minister of Finance, Hon'ble efforts of the then Hon'ble Minister of Textiles Smt Smriti Zubin Irani for Minister of Commerce and Industry, former Hon'ble Minister of MSME initiating an investigation to find evidence of cartelization resulting in Shri Nitin Gadkari, former Hon'ble Minister of Labour and Employment sudden spike in cotton yarn prices. This is a crucial decision to prevent Shri Santosh Kumar Gangwar, Reserve Bank of India Governor Shri supply chain imbalances and to protect lakhs of livelihoods. The hike in Shaktikanta Das, Secretary of Ministry of Commerce & Industry Shri yarn prices has led to closure of many powerloom units and many B.V.R Subrahmanyam and former Secretary of Ministry of Commerce & MSMEs have been badly impacted. The Ministry's intervention will help Industry Dr Anup Wadhawan, and respected Secretary of Ministry of in saving the livelihood of a lot of workers in the powerloom sector and Textiles Shri Upendra Prasad Singh, for leading from the front and apparel industry. Apparel manufacturers believe that the probe will help listening to our needs, announcing measures and executing them well. check the steep increase in prices and unpredictability in supply of cotton and yarn, which is hampering the apparel industry's order book planning It is pertinent to mention here and convey our thank to Smt Smriti Zubin and overall competitiveness of the entire value chain. Irani, the then Hon'ble Minister of Textiles, and Shri Ravi Capoor, the then Secretary of Ministry of Textiles, who helped and contributed in all I would like to thank Hon'ble Finance Minister Smt Nirmala Sitharaman, projects to address the concerns of Apparel Industry in the best possible Hon'ble Commerce & Industry Minister Shri Piyush Goyal and former manner. I place my sincere gratitude towards them. Hon'ble Textile Minister Smt Smriti Zubin Irani for announcement of Rs 1.97 lakh crore Production Linked Incentive (PLI) scheme for 13 key I place on record, my sincere thanks to Shri Vijoy Kumar Singh, sectors. This will increase investment, expand manufacturing capacities and enhance exports. The fiscal stimulus of Rs 10,683 crore to the textile

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Additional Secretary, Ministry of Textiles, Smt Roop Rashi, Textile CSR Sub Committee and my other fellow Executive Committee Commissioner, Shri Sanjay Sharan, Joint Secretary, Ministry of Textiles, Members, Co-opted Members, Permanent Invitees & Special Invitees Shri Nihar Ranjan Dash, Joint Secretary, Ministry of Textiles, Shri for their unstinted support and guidance. My special thanks to Shri Jogiranjan Panigrahi, Joint Secretary, Ministry of Textiles, Shri Jay Karan Virender Uppal, former Chairman and Senior Executive Committee Singh, Trade Advisor, Ministry of Textiles, Shri Balram Kumar, Director, MoT and at present Quota Administering Authority (QAA), and other Member of AEPC, for his valuable suggestions at all vital issues, senior officials of the Government, who extended their continuous benefitting the Council in a larger way. support in the furtherance of Apparel exports from India and during the tough times of Covid-19 pandemic.

I am also grateful to the officers of Ministry of Commerce & Industry, I wish to place on record my sincere appreciation for the press and media Textiles Commissioner, DGFT, NITI Ayog, Textiles Committee, Central who reported the issues of the garment export industry and supported us Board of Indirect Taxes and Customs, Directorate General of Analytics & by publishing AEPC's recommendations from time to time. Risk Management and other officers of the Government of India for promotion of export of readymade garments to various countries and for extending their support during the difficult times faced by the Industry due to Global outbreak of the Covid-19 pandemic. My heartfelt appreciation is also to the Dr. L.B.Singhal, Secretary General, AEPC, Deputy Secretary General, Senior Director, Advisor, I also place my sincere thanks to Shri Manoj Kumar Mohapatra, Minister Director, Additional Director, General Managers and all other officers & (Commerce), Embassy of India, Washington D.C, for providing staff of AEPC for their dedicated and sincere service, whose efforts have invaluable support in conducting the Study on Market for Indian Apparel contributed to council's achievements. in the United States – Trends, Potential, and Expansion Strategy, and for organizing virtual B2B meetings with USA buyers. I would also like to thank H.E. Shri Sanjay Verma, Ambassador of India to Spain; H.E. Shri Manpreet Vohra, Ambassador of India to Mexico; H.E. Shri Sanjiv With gratitude, I acknowledge the dedicated efforts put-in by all Ranjan, Ambassador of India to Colombia; H.E. Shri Ajay Bisaria, High members of the Council. I take this opportunity to express my sincere Commissioner of India to Canada; Shri S.K. Ray, Head of Chancery, thanks to the members for their utmost faith and trust reposed in me and EOI, Poland; Shri Sandeep Kumar Bayyapu, Deputy Chief of Mission, EOI, Abu Dhabi, and Ms Anitha R. Nandhini, Deputy Chief of Mission, Council. I am sure, with sustained efforts, we will be able to scale even EOI, Israel for helping AEPC in conducting successful virtual B2B greater heights of success in the years to come. meetings with Indian exporters and prominent apparel and accessories buyers/ importers from these respective countries. I am confident that we will not just overcome the challenges but convert My heartfelt thanks to Shri Narendra Kumar Goenka, Vice Chairman and members of the Sub Committees & its Chairmen i.e. Shri Premal Udani, these very challenges into opportunities to move to an even higher Chairman, Advisory Sub-committee, Shri Sudhir Sekhri, Chairman, trajectory of sustainable growth. Export Promotion Sub-Committee, Shri Vijay Agarwal, Chairman, Finance & Budget Sub-committee, Shri Lalit Thukral, Coordinator (State Partnership Committee, Northern Region), Shri Ashok Rajani, Coordinator (State Partnership Committee, Western Region) Shri Anil Buchasia, Coordinator (State Partnership Committee, Eastern Region), Shri B. Shanmughasundaram, Coordinator (State Partnership Committee, Southern Region), Shri H.K.L Magu, Chairman, Apparel House Management Sub-committee, Shri Anil Peshawari, Chairman

15 16 42nd AEPC Annual General Meeting Special Thanks to Hon’ble Prime Minister of India

Hon'ble Prime Minister of India on 6th August 2021 interacte d with Indian Ambassadors/High Note Commissioners, Export Commissioners from States/UTs Industry Organisations, Export Promotion Council, Commodity Boards etc to encourage to achieve the export target of US $ 400 billion through close interaction with all stakeholders. He emphasized the role of our Indian Missions across the Globe. More than 70 Indian Ambassadors & Head of Missions attended the meeting along with 400 Indian agencies associated with Export Trades.

The Hon'ble Prime Minister's assurance of complete support has invigorated the exporters who will go the extra mile to achieve the target of US $ 400 billion merchandise exports this fiscal.

The Hon'ble Prime Minister has appropriately identified that logistics constraints like Container Shortage, Logistics Cost are the key challenges for exports. Policy intervention and infrastructure creation are needed to resolve these issues. I hope that the compliance burden comes down, helping increase exports and diversify the export base.

Our Hon'ble PMs motivation will give a flip to the exporters and will hand hold start- ups, artisans and farmers to enter into the field of exports for a mutually beneficial relationship. AEPC will engage with Indian diaspora to facilitate the country's exports.

During the interaction our Hon'ble Prime Minister also mentioned about our main exports destinations and further advised to accelerate our exports to new market destinations for our Indian products. The schemes like Insurance Cover boost of Rs. 88,000/- cr, Removal of Retrospective Taxation, Easing Compliances, ECLGS, PLI Scheme for scale , quality and efficiency, reduction in Logistic Cost are in the right direction to ease of doing business.

I thank the Hon'ble Prime Minister of India whole heartedly for his unstinted support and various initiatives beneficial to our Industry.

I wish you all a very Happy 75th Independence Day and pray the Almighty for all of you, to have a Prosperous and Cheerful life.

Best Wishes!

Dr. A. Sakthivel Chairman, AEPC

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