As per the Quick estimates released by the Ministry of Commerce and Industry, merchandise exports from the country grew (at a 65 month high)
As per the Quick estimates released by the Ministry of Commerce and Industry, merchandise exports from the country grew (at a 65 month high) by a noteworthy level of around 28% during the last month of the previous fiscal year i.e. March 2017, pulling up the overall exports to US$ 274.65 billion. Thus overall, exports during the fiscal year 2016 -2017 grew by 4.8%.
The Textile & Clothing exports during this period were in positive territory reaching US$ 35.42 billion against US$ 35.11 billion during fiscal year 2015 -2016. Amongst the items in the basket, Garments recorded a growth of 2.31% while Carpet increased by 3.55%. Handicrafts have posted the highest growth in the basket at 18.65%.
Amongst the textiles group, while Man-made Textiles declined by (-) 2.75%, Cotton Textiles marked a decline of (-) 3.06 % during fiscal 2016-2017 valued at US$ 9.80 billion.
Friends, despite a sluggish year, the performance in our exports has been commendable as the decline in exports of cotton textiles (with which we are directly connected) have been range bound and not very alarming. However, when the final data for the fiscal year gone by is published, we hope to end on a positive note.
Caution Listing of Exporters by RBI
As you are aware, with regard to the EDPMS (Export Data Processing and Monitoring system), RBI has granted temporary exemption upto April 20, 2017 to exporters whose IEC were appearing in the caution list in the EDPMS and whose outstanding shipping bills (in value terms) was less than 30% of the total value of shipping bills for the period from March 1, 2014 to March 1, 2016.
We have received representations from many of our members pointing out that their banks have not updated the shipping bills on the EDPMS although the payments have been realized and the E-BRCs have been issued. As a result, after April 20, 2017, based on the latest position of outstanding export receivables, many of the exporter’s name may appear in the caution list on EDPMS.
The Council had a meeting with top officials from RBI and have informed them about the problems exporters are likely to face after the deadline of April 20, 2017 as many of the exporters will find their names appearing in the caution list and will be deprived of export benefits (non-grant of packing credit, delay in negotiation of non-LC bills, etc.) for no fault on their part. We have requested for an extension in the deadline by another one month. In the meanwhile, we would request you to please get in touch with your banks immediately and ensure that the banks update all the shipping bills on the EDPMS.
Meeting with Niti Aayog
We met Mr. A. Panagariya, Vice Chairman of Niti Aayog and made a presentation on the contribution the Textile Sector can make to help in reducing the trade deficit with China. As you are all aware India has a huge trade deficit of around US$ 52 billion with China. We have been telling the Government that if case the tariffs on items like Fabrics and Made- Ups are reduced from the current 10% and 14% levels respectively India can supply more value added products to China.
The presentation was well received and the Vice Chairman of Niti Aayog and appreciated the potential the textile sector holds in terms of employment generation and value creation in the industry. Regarding the tariff issues he suggested that that the same needs to be taken up through the Commerce Ministry in a structured forum like the INDIA - CHINA ECONOMIC DIALOGUE.
We also used the opportunity to apprise the Vice Chairman of Niti Aayog about the issues affecting the export sector.
'CURTAIN RAISER' ON TEXTILES SHOW IN GANDHI NAGAR
The Ministry of Textiles organized a CURTAIN RAISER on the MEGA TEXTILE SHOW being organized in GANDHI NAGAR, GUJARAT from 30 JUNE - 2 JULY 2017.
Ambassadors from leading importing countries were invited to the meet which also included a FASHION SHOW.
Friends, the Ministry of Textiles is going all out to promote this event around the world. They are expecting huge participation from the Industry and Trade.
Texprocil is also committed to mobilizing at least 100 participants and is actively promoting this event abroad especially in China, Korea, Egypt, Colombia and various other destinations. All other Councils are also making efforts to invite the buyers/importers from across the world.
The event is thus expected to attract a large number of visitors. I would urge all of you to extend an invitation to all your buyers to visit the event and they can also register "on-line". The Council has already circulated the web-links to the members.
The exhibiting charges are also nominal. In view of this, I once again urge all our members to fill in the Exhibitor Applications which is “on-line" or seek assistance from the Council's officials to book space.
Ujwal R Lahoti