YR 24 ISSUE 02

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY 2024 | RNI NO. HARENG/2012/45083 ₹ 100

Bharat Tex Expo 2024 inaugurated

by Hon'ble Prime Minister Shri Narendra Modi
 YR 24 | ISSUE 02 | FEBRUARY, 2024 | PAGES 60

CHAIRMAN AEPC PUBLISHER

Shri Sudhir Sekhri Apparel Export Promotion Council
Apparel House, Sector-44,
CHAIRMAN EP Institutional Area,
Mr Premal Udani Gurugram,
HARYANA – 122003.
SECRETARY GENERAL Phone: 0124-2708000
Mr Mithileshwar Thakur www.aepcindia.com

DEPUTY SECRETARY GENERAL DESIGNING & LAYOUT

Dr Tamanna Chatuurvedi Mr Rajiv Rai
Email: rajivraigzp@gmail.com
EDITOR
Mr Sameer Pushp, PRINTING PRESS
General Manager (M&C) Amaira Creations, New Delhi
Email: amairacreations12@gmail.com

01 | CHAIRMAN’S MESSAGE sustainable momentum – 6th Round takes place in Lima

03 | EVENTS CALENDAR
04 | KEY STATISTICS
. India’s Ready-Made Garment (RMG)
. India’s textile & Ready-Made Garment (RMG)
06 | INSIGHT
. Red Sea crisis impact on trade data will be visible in
FY24: GTRI
08 | POLICY AFFAIRS
. India's tough face at WTO Ministerial conference
protected farmers, food security
. Tamil Nadu budget announces several policy
measures for textile industry- Technical textiles gets
special focus
. Government of India notifies extension of
Remission of Duties and Taxes on Exported Products
support to Advance Authorisation Holders, Export
Oriented Units and Special Economic Zones Units
11 | SILVER LINIING
. Product Defect Detection with Computer Vision in
the Textiles Industry
12 | COVER STORY
. PM inaugurates Bharat Tex 2024 in New Delhi
18 | TRADE OUTLOOK
. India’s exports resilient in face of unfavourable
conditions, says CRISIL; will it sustain?
. India's exports will close fiscal at same level as last
year despite uncertainties: Piyush Goyal
20 | SPOTLIGHT
. Duty benefits for Bangladesh to continue until 2029
. India-EFTA Trade and Economic Partnership
Agreement
24| SUSTAINABLITY CORNER
. Tripartite MoU to reduce textile waste in India gives
hope, but cautious steps needed
26 | PERSPECTIVE
. How to make textile and garment production more
. Govt exempts certain exporting units from quality
30 | NEXT FRONTIER control orders
. India extends Samarth textile training scheme until
. Centre willing to procure jute and cotton crop if
prices fall below MSP March 31, 2025
. Government extends RoDTEP benefits to exports
32 | FOCUS COUNTRY from SEZ units
. United States of America
51 | GLOBAL NEWS
. India seeks tariff exemption for textiles in EU FTA
36 | COUNCIL AFFAIRS talks for competitive edge
. AEPC organized Budget Viewing and Discussion . GDP growth at 8.4 per cent in Dec quarter, PM
Session
Narendra Modi hails ‘strength, potential of Indian
. AEPC conducted Women Entrepreneurship
economy’
Acceleration Program
. Charting the global economy: Germany reels from
. AEPC requests suspension of transshipment of
manufacturing downturn
Bangladesh export cargo via Delhi Air Cargo Complex
. Apparel brands, retailers to cover costs of textile
. On its 46th Foundation Day, AEPC thanked the
waste under new EU rules
government for various support measures to boost
Apparel Exports
. Partnership Agreement signed between India &
54 | GLOBAL INDICATOR
. India’s cotton yarn exports to surge by 85% to 90%
Japan in industrial competitiveness
in FY2024: ICRA
. Jaishankar urges Japanese firms to manufacture and
40 | ATDC CONTENT export from India
. Shri Atul Bagai, Head, United Nations Environment
Programme (UNEP) Country Office, India visits ATDC
. ATDC Vice- Chairman meets Steel Secretary
56 | GST UPDATE
58 | NOTIFICATIONS
42 | INDIA NEWS
. Cabinet approves continuation of Scheme for Rebate
of State and Central Taxes and Levies for export of 59 | REPORT
Apparel/Garments . India ranks 38 out of 139 countries on World
. 137 research projects approved under National Bank's Logistics Performance Index Report 2023; India’s
Technical Textiles Mission with an outlay of Rs. 474.7 rank has improved by sixteen places from 54 in 2014
Crore
. Capital Investment subsidy of Rs. 1,416.50 crore 60 | MEDIA COVERAGE
released in 6,448 cases under Amended Technology
Upgradation Fund Scheme (ATUFS) in last three years
. Quality and Sustainability to define India’s journey
to become developed by 2047: Shri Piyush Goyal
. DPIIT coordinates initiatives for Ease of Doing
Business creating a conducive business environment
. 3rd Meeting of ASEAN-India Trade in Goods
Agreement (AITIGA) Joint Committee, 16-19 February
2024
. Existing IPR regime well-equipped to protect AI
generated works, no need to create separate category of
rights
. India and Peru Trade Agreement negotiations gains

Dear friends,
B harat Tex Expo 2024, the biggest global
textile event in the textile industry was
a mesmerizing moment for all of us and
we all felt that it is India’s moment to scale
greater heights in the textiles exports. This
monumental event orchestrated by a
collaborative effort of Textile Export
Promotion Councils with the support from the
Ministry of Textiles successfully culminated.
The textiles industry had the good fortune to
have received the blessings and guidance of
the Hon’ble Prime Minister Shri Narendra
Modi, who assured all help to the industry
during his inaugural speech. Industry is
grateful to the Hon’ble Prime Minister and the
Hon’ble Textiles Minister for their unwavering
support.
It was never imagined that India can host
an exhibition spread across nearly 2 million sq
feet of area encompassing the entire textile
value chain. With the participation of 3500
exhibitors and attendance by more than 3000
buyers from across the value chain. This event
will surely help position India as a global
powerhouse in textiles, showcasing its
APPAREL | CHAIRMAN’S MESSAGE
capabilities and generating momentum
throughout the entire Indian textiles’
ecosystem.
Another good news is, RBI governor
Shaktikanta Das announced that the Indian
economy is poised to surpass the
government's second advance estimate of 7.6
percent growth for the ongoing inancial year.
Furthermore, CRISIL, in its India outlook
report, projected that the Indian economy is
poised for substantial growth in the upcoming
iscal year, forecasting a GDP growth rate of
6.8 percent. This indicator, the GDP growth
rate, measures the year-over-year or
quarterly change in a nation's economic
output, offering insight into the pace of
economic expansion.
On policy front the support to the industry
continues through decision of the government
to continue the RoSCTL scheme for a period of
2 years beyond 1st April 2024 and up to 31st
March 2026 for apparel/garments (under
Chapter 61 and 62) and Made-ups (under
Chapter 63), to ensure export
competitiveness of the sector.
In another move, the commerce ministry
has noti ied the enabling provisions for
exemption from QCO for imports of inputs, by
holders of advance authorisation for physical
exports (AA), export-oriented units (EOU)
and units in Special Economic Zones (SEZs).
The idea is to grant legitimate relief to such
categories of exports while ensuring
prevention of misuse.
Skilling is the cornerstone of apparel
business expansion in India. In view of this,
the government has extended the SAMARTH
scheme for training and skilling in the textiles
sector by another year. However, it has been
decided to maintain the outlay at the current
level. The scheme, executed by the Ministry of
Textiles, will be operational until March 31,
2025. Financial support for the scheme will
remain at ₹390 crore ($47.13 million).
SAMARTH is a demand-driven and
placement-oriented umbrella skilling scheme
designed to make textile workers employable
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY / 1
 APPAREL | CHAIRMAN’S MESSAGE

in the industry. Its objective is to incentivise
and supplement the efforts of industry in
creating jobs in the organized textile and
related sectors, covering the textiles value
chain.
On the trade- facilitation front we have
requested the CBIC Chairman to suspend the
implementation of Circular No. 03/2023-
Customs dated 07.02.2023, which allows
transshipment of Bangladesh export cargo to
third countries through Delhi Air Cargo
complex. This pressing issue has even been
escalated to the Hon'ble Minister of Textiles.
The continuing Red Sea crisis has already
increased logistical costs for the exporters
and it has also led to shift of export shipments
from sea to air mode. At this crucial time,
allowing Bangladeshi export cargo from Delhi
Air Cargo Terminal will further increase the
logistic related challenges and increase the
transportation cost for apparel exporters.
implemented by the Association for Overseas
Technical Cooperation and Sustainable
Partnerships (AOTS) in collaboration with
Nissenken Quality Evaluation Centre, Japan
and the Textiles Committee, Ministry of
Textiles, Government of India.
AEPC will be participating in the
International Apparel and Textile Fair, Dubai
to be held from 20th to 22nd May 2024. I
appeal to all members to make full use of this
opportunity and participate in large numbers.
Please keep sharing your valuable
suggestions at chairman@aepcindia.com
Sudhir Sekhri
Chairman AEPC

We have informed our Hon’ble Textiles

Minister that we are in our peak season and
buyers are asking sea shipments to be
converted to air at our expense. A delayed
action would be fruitless because our peak
season would be over by the end of April and
we would have already suffered huge losses
by then.

The U.S. International Trade Commission

(USITC) is undertaking a new fact- inding
s u r vey t h a t i s exa m i n i n g t h e ex p o r t
competitiveness of the apparel industries in
Bangladesh, Cambodia, India, Indonesia, and
Pakistan. AEPC has made its representation
before the USITC team and responded to all its
queries convincingly. We are hopeful of the
positive outcome.

I am happy to inform you that a Partnership

Agreement between India and Japan in
Industrial Competitiveness has been entered.
Under this agreement, a support program on
the Japanese system of Quality Control for
Textile & Apparel Industry in India is being

2 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY

 APPAREL | EVENT CALENDAR

PROPOSED CALENDAR OF EVENTS

Proposed Overseas Events & domestic events
for the financial year 2024-25.

A. Overseas Events
Country Proposed Date /
S. No. Event Name
Month
1 Intl. Apparel & Textile Fair (IATF), Dubai UAE 20 - 22 May, 2024
2 BSM UK (London) UK July, 2024
3 India Tex Trend Fair (ITTF), Tokyo Japan July, 2024
4 Sourcing at Magic, Las Vegas USA August, 2024
5 CPM, Moscow Russia September, 2024
6 India Apparel & Accessories Fair (BSM) Spain September, 2024
7 BSM Denmark (Copenhagen) Denmark October, 2024
8 BSM Sweden Sweden October, 2024
9 BSM Norway Norway October, 2024
10 Global Sourcing Expo, Australia Australia November, 2024
11 Intl. Apparel & Textile Fair (IATF), Dubai UAE November, 2024
12 Sao Paulo Pret-a-Porter, Sao Paulo Brazil January, 2025
13 Sourcing at Magic, Las Vegas USA February, 2025

B. Domestic Events
Country Proposed Date /
S. No. Event Name
Month
1 RBSM – Inviting Japanese Buyers in Gurgaon India June, 2024

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY /3

 APPAREL | KEY STATISTICS

INDIA’S READY-MADE
GARMENT (RMG)
INDIA'S RMG EXPORT TO WORLD
(In US$ Mn.) YoY Growth (%)
2019-20 2020-21 2021-22 2022-23 2023-24 2023-24 2023-24
Month 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Over Over Over Over Over Over Over
2018-19 2019-20 2020-21 2021-22 2020-21 2021-22 2022-23
April 1351.8 1408.8 126.84 1297.5 1575.5 1213.5 4.2 -91.0 922.9 21.4 856.7 -6.5 -23.0
May 1339.4 1530.1 517.02 1107.1 1415.9 1236.5 14.2 -66.2 114.1 27.9 139.2 11.7 -12.7
June 1358.8 1233.5 804.29 1003.1 1501.7 1249.7 -9.2 -34.8 24.7 49.7 55.4 24.6 -16.8
July 1275.4 1365.8 1065.7 1389.3 1381.1 1141.2 7.1 -22.0 30.4 -0.6 7.1 -17.9 -17.4
August 1293.2 1261.9 1085.61 1237.8 1233.9 1133.4 -2.4 -14.0 14.0 -0.3 4.4 -8.4 -8.1
September 1104.7 1080.6 1192.91 1301.1 1066.0 946.3 -2.2 10.4 9.1 -18.1 -20.7 -27.3 -11.2
October 1132.1 1108.9 1180.13 1255.7 988.7 908.8 -2.0 6.4 6.4 -21.3 -23.0 -27.6 -8.1
November 1131 1058.5 1047.09 1072.9 1200.3 1021.2 -6.4 -1.1 2.5 11.9 -2.5 -4.8 -14.9
December 1376.7 1409.5 1196.89 1466.6 1481.4 1295.3 2.4 -15.1 22.5 1.1 8.2 -11.7 -12.6
January 1528.2 1453.5 1296.43 1547.0 1493.0 -4.9 -10.8 19.3 -3.5
February 1546.4 1477.9 1349.45 1600.5 1407.0 -4.4 -8.7 18.6 -12.1
March 1718.4 1120.5 1427.33 1740.6 1448.3 -34.8 27.4 21.9 -16.8
Total 16156.1 15509.5 12289.7 16019.2 16192.7 10145.7 -4.0 -20.8 30.3 1.1 23.5 -8.9 -14.3

Note- 1) Source: DGCI&S 2023; Data for the month of December 2023 is provisional data released on PIB by Ministry of Commerce on 15.01.2024
2) Sum of the value for (Apr-Dec) 2021-2022 is USD 11131.1 mn and (Apr-Dec) 2022-23 is USD 11844.4 mn. and (Apr-Dec) 2023-24 is USD 10145.7 mn.
Compiled by the R&PA Department, AEPC

RMG exports for the month of

December 2023 has declined by 12.6 %
as compared to December 2022,
declined by 11.7 % as compared to
December 2021 and has increased by
8.2 % as compared to December 2020.
Similarly, cumulative RMG
exports for the period Apr-Dec
2023-24 is USD 10145.7 mn. showing
a decline of 14.3% over Apr-Dec
2022-23; a decline of 8.9 % over
Apr-Dec 2021-22 and a growth of
23.5 % over Apr-Dec 2020-21.

4 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY

 APPAREL | KEY STATISTICS

INDIA’S TEXTILE &

READY-MADE GARMENT (RMG)
Textiles & Wearing Apparel update for India's Index of Industrial
Production (IIP) for the month of November in FY 2023-24
Manufacture of Growth Rate Manufacture of Growth Rate
Textiles (In %) Wearing Apparel (In %)
Month
2023-24 Over 2023-24 Over
2022-23 2023-24 2022-23 2023-24
2022-23 2022-23
April 114.1 105.6 -7.4 129.4 92.1 -28.8
May 111.5 107.4 -3.7 142.4 112.2 -21.2
June 107.8 107.8 0.0 156.9 120.1 -23.5
July 107.2 108.5 1.2 134.4 103.9 -22.7
August 105.2 106.9 1.6 117.8 97.6 -17.1
September 103.9 107.8 3.8 125.2 102.4 -18.2
October 102.3 109.0 6.5 103.7 98.5 -5.0
November 107.7 103.7 -3.7 117.0 93.0 -20.5
December 110.7 125.6
January 107.9 120.1
February 102.0 129.1
March 110.2 133.1
Cumulative Index
(Apr-Nov) 107.5 107.2 -0.3 128.4 102.5 -20.2

Source: CSO,2023
* Figures for November 2023 are Quick Estimates
# The growth rates over corresponding period of previous year are to be interpreted considering the unusual circumstances
on account of COVID 19 Pandemic since March 2020
Compiled by the R&PA Department, AEPC

♦ Manufacturing of Textiles Index for the month of Nov,

2023 is 103.7 which has shown a decline of 3.7 % as
compared to Nov, 2022.
♦ Manufacturing of Textiles Index for the financial year
2023-24 is 107.2 which has shown a decline of 0.3 % as
compared to the financial year 2022-23.

♦ Manufacturing of Wearing Apparel Index for the

month of Nov, 2023 is 93.0 which has shown a decline of
20.5 % as compared to Nov, 2022.
♦ Manufacturing of Wearing Apparel Index for the
financial year 2023-24 is 102.5 which has shown a decline of
20.2 % as compared to the financial year 2022-23.

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY /5

 APPAREL | INSIGHT

RED SEA CRISIS IMPACT

ON TRADE DATA WILL BE
VISIBLE IN FY24: GTRI

Countries in Asia, Africa, and Europe will face the most

disruption across industries, it added

W ith escalating everyday attacks and no end

in sight, the Red Sea crisis will adversely
impact trade volumes in substantial ways
in 2024, according to the report of economic think tank
GTRI.

The Global Trade Research Initiative (GTRI) said that

rising shipping, and insurance costs and delayed arrival
of shipments will continue to disrupt global value
chains, squeeze margins, and make exports of many
low-margin products unviable from current locations.
Countries in Asia, Africa, and Europe will face the most
disruption across industries, it added.

It said that the disruption is significantly impacting

Indian trade, especially with the Middle East, Africa,
and Europe. India, heavily reliant on the Bab-el-Mandeb
Strait for crude oil and LNG imports and trade with key
regions, faces substantial economic and security risks

6 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY

 APPAREL | INSIGHT

from any disruption in this area.
About 65 per cent of India's crude oil imports in
FY2023, valued at $ 105 billion, from countries like
Iraq, Saudi Arabia, and others, likely passed through
the Suez Canal.
For overall merchandise trade with Europe and
North Africa, about 50 per cent of imports and 60
per cent of exports, totaling $ 113 billion, might have
used this route, it said.
"With escalating everyday attacks and no end in
sight, the Red Sea crisis will adversely impact trade
volumes in substantial ways in 2024," the report
noted.
This conflict is leading to increased shipping
costs (40-60 per cent) and delays due to rerouting
(up to 20 days more), higher insurance premiums
(15-20 per cent), and potential cargo loss from
piracy and attacks, it said.
"Confectionery companies are hit by high cocoa
prices and shortages due to late deliveries from
Africa, reducing profits. Textile and leather
industries, which operate on thin margins, are
renegotiating shipping costs with buyers, impacting
earnings. Car manufacturers are using different
shipping paths to avoid delays," GTRI Founder Ajay
Srivastav said.
It also asked for offering financial support and
insurance schemes to Indian companies affected by
trade disruptions.
It added that the crisis underscores how
geopolitical conflicts can swiftly destabilise global
shipping routes, leading to increased shipping costs
and significant delays across multiple sectors and
regions.
“The crisis also underscores the importance of
exploring alternative maritime and land-based
trade routes. This includes potential investment in
the Northern Sea Route and expanded land
transport infrastructure. India-Middle East-Europe
Economic Corridor (IMEC) becomes important in
this context," Srivastava said.
IMEC project aims to create a vast economic
corridor connecting Europe, the Middle East, and
Asia through improved transportation,
communication networks, and energy
infrastructure.
It comprises rail, road, and sea routes across two
main corridors: The East Corridor links India to the
Arabian Gulf. The Northern Corridor connects the
Gulf to Europe. ◘

The Red Sea crisis began in a major way on

October 19, 2023, when the Iran-backed Houthi
movement in Yemen launched attacks on civilian-
operated cargo ships near the Yemeni coast.
The Houthis have targeted any shipping believed to
be connected to Israel, though several vessels
attacked had no apparent link to the country.

According to the report, this situation is part of a

broader proxy conflict involving the United States
and Iran, Hamas and Israel. In March 2024, the
crisis was in its fifth month.

It suggested the government to diversify its

sources of crude oil and LNG, explore alternative
trade routes to reduce dependency on the conflict-
prone Red Sea passage; and rely on ports outside
conflict zones, like Oman and Djibouti, for
transshipment and regional trade.

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY /7

 APPAREL | POLICY AFFAIRS
INDIA'S TOUGH FACE AT WTO
MINISTERIAL CONFERENCE
PROTECTED FARMERS,
FOOD SECURITY
I n a major respite for farmers, India stood strong
against the lobby of developed countries
demanding a reduction in domestic support to
agriculture during the Abu Dhabi Ministerial
Conference (MC13) of the World Trade Organisation
(WTO). India was represented by Union Minister for
Commerce Shri Piyush Goyal in the conference, which
was extended for two days to conclude on March 2.
Indian government decided to protect Indian farmers at
the cost of facing some diplomatic ire from the
developed nation.
After more than five days of fierce negotiations
among some 4,000 ministers, senior trade officials, and
delegates from the World Trade Organization's 164
members and observers, the WTO's 13th Ministerial
Conference (MC13) in Abu Dhabi ended in the wee hours
of March 2 without a consensus on key issues, including
the Agreement on Fisheries Subsidies and public
stockholding (PSH) for food security.
Abu Dhabi's 13th Ministerial Conference of the WTO
concluded with the acceptance of the Abu Dhabi
Declaration, but missed an agreement in either
fisheries or agriculture, as India decided to defend its
farmer-friendly policies.
“Our objective was that our farmers and our
fishermen should not face any kind of harm, no crisis
8 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY
should come, and in that, we successfully did not allow
any such decision to be taken that would harm any
farmer or fishermen," Union Minister Piyush Goyal said
after the conference.
The developed nations were demanding that India
make some policy changes to allow them easy market
access for their farm produce. The demands included
reductions in domestic support on agriculture for
Indian farmers like the minimum support price (MSP),
public stockholding for food security, subsidies for
fisheries, etc.
India has maintained that public stockholding (PSH)
is crucial for the country for its welfare programs like
Prime Minister Garib Kalyan Ann Yojana (PMGKAY)
which provides free ration to over 80 crore people and
the National Food Security Act (NFSA).
To make this dry ration available, the government
purchases agricultural produce from farmers at the
MSP to assure them a minimum income and protect
them from market uncertainties.
The minister also said that some of the non-trade
issues that were sought to be brought on agenda such as
a China-backed agreement on investment facilitation
and EU's suggestion for industrial policy, were blocked
as they not in line with WTO's mandate.
He was, however, unhappy with the US blocking a
move to seek lower cost of remittances, although he did
not name any country. "That is India's offer to the
world. Many countries, especially LDCs and developing
countries, are required to use channels for remittances,
which are extremely expensive. It can cost between 4%
and 8-9% of transaction value. India has developed UPI,
which can help it bring it down significantly. What we
were offering to the world was an opportunity to save
$30-40 billion for LDC and developing countries.
However, what the interests of not permitting that to be
discussed at WTO is a mystery for me because savaging
money for almost everybody is truly a very good offer,"
Goyal said. ◘

TAMIL NADU BUDGET ANNOUNCES
SEVERAL POLICY MEASURES FOR TEXTILE
INDUSTRY- TECHNICALTEXTILES GETS
SPECIAL FOCUS
T amil Nadu that accounts 1/3rd of the textile
business size, 45% of the spinning capacity,
10% of the handloom capacity, etc., has been
losing its competitive advantage due to attractive textile
policies of different States like Gujarat, Maharashtra,
Madhya Pradesh, etc., in the country. The Association
has submitted the pre-budget memoranda suggesting
various policy initiatives to sustain the competitiveness
of the Tamil Nadu textile industry and remain as No.1
State in the textiles and clothing manufacturing sector
in the country.
A six per cent interest subsidy for modernisation of
spinning segment, and increase in the special capacity
subsidy from 15 per cent to 25 per cent for the technical
textiles, MMF yarn produced from recycled products,
MMF fabric and apparel manufacturing in Tamil Nadu
are among a slew of measures announced by Thangam
Thennarasu, the state’s minister of finance in the
assembly today.
A substantial amount of ₹1,683 crore has been
earmarked for the Virudhunagar PM MITRA park. In
addition, ₹25 crore has been allotted to set up ‘Research
and Business Development Fund for Technical Textiles
and Man-made Fibre’, and another ₹25 crore is set aside
in the budget for apparel clusters in Virudhunagar,
Pudukottai, and Kanyakumari, a silk cluster in Salem,
and a yarn cluster in Namakkal.
APPAREL | POLICY AFFAIRS
The state budget for 2024-25 has also allocated ₹20
crore for 10 mini textile parks in the districts of Karur,
Erode and Virudhunagar.
Announcement of 6% interest subsidy for
modernization of spinning segment with a budget outlay
of Rs. 500 crores is an attractive announcement when
the s p i nni ng s e gme nt i s p as s i ng throu gh an
unprecedented crisis. He has said that though the State
accounts 45% of the spinning capacity of the country,
around 2/3rd of the capacity is more than 15 years old.
A budget outlay of Rs. 227 crores to establish
integrated complex comprising exhibition halls, design
and incubation centres and commercial buildings at
Chennai in an area of four lakh sq. ft., will greatly help
the handloom and handicrafts sectors.
10% payroll subsidy extended for new units
employing 500 or more women physically challenged
and transgenders people of Tamil Nadu domicile would
give enormous job opportunities for the people of Tamil
Nadu. A vision of generating additional 100 billion units
of renewable energy by 2030 is yet another fillip to the
State budget and right direction to mitigate the carbon
footprint and meet the global sustainability goal. The
announcement of conducting a global start up summit
during January 2025 would attract the eyes of the global
investors and throw opportunities for boosting
exports. ◘
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY /9
 APPAREL | POLICY AFFAIRS

GOVERNMENT OF INDIA NOTIFIES

EXTENSION OF REMISSION OF DUTIES
AND TAXES ON EXPORTED PRODUCTS
SUPPORT TO ADVANCE AUTHORISATION
HOLDERS, EXPORT ORIENTED UNITS
AND SPECIAL ECONOMIC ZONES UNITS
Amidst global economic uncertainties and
supply chain disruptions, the government
has expanded the scope of a scheme designed
to make Indian exports more competitive
globally by refunding various central, state
and other local duties and taxes.
The Remission of Duties and Taxes on Exported
Products (RoDTEP) Scheme is a key initiative by the
Government of India aimed at refunding various
embedded taxes and duties on exported products. Since its
inception in January 2021, the RoDTEP Scheme has already
provided support amounting to ₹42,000 Crores to more
than 10,500 export items at 8-digit ITC HS Code level. In
the current financial year, the scheme has a budget of
₹15,070 Crore with an additional increase of 10% in FY
2024-25.
Keeping budgetary allocation in view, the extension of
RoDTEP to additional sectors is presently till 30.09.2024.
The extension of the RoDTEP scheme to these sectors is
aimed at enhancing India’s export competitiveness in
international markets. Key sectors such as Engineering,
Textiles, Chemicals, Pharmaceuticals & Food Processing
and many others stand to benefit from the measure.
By providing support to crucial export sectors, the
government aims to not only enhance their
competitiveness but also create employment opportunities
and contribute to overall economic growth, aligning with
the vision of building an Aatmanirbhar Bharat. The
government is confident that the proactive measures being

U
taken, including efforts to negotiate new FTAs, will further
nion Minister of Commerce & Industry,
accelerate India’s journey towards achieving USD One
Consumer Affairs, Food and Public Distribution,
trillion merchandise export levels. ◘
and Textiles, Shri Piyush Goyal announced the
extension of Remission of Duties and Taxes on Exported
Products (RoDTEP) Scheme support to additional export
sectors in New Delhi . The Government of India has
announced extension of the RoDTEP Scheme support to
additional export sectors i.e. Advance Authorisation (AA)
holders, Export Oriented Units (EOU) and Special
Economic Zones (SEZ) export units. This decision comes in
recognition of the significant contribution these sectors
make to India’s Exports, constituting approximately 25%
of our exports. Amidst global economic uncertainties and
supply chain disruptions, extending RoDTEP to the
uncovered sectors such as AA, EOU, and SEZ units will help
the exporting community in handling the international
headwinds.

10 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY


Product Defect Detection with
Computer Vision in the Textiles Industry
I
n today’s fast-paced textiles industry, maintaining
superior product quality is essential to meet
consumer demands and uphold brand reputation.
Defect detection serves as a cornerstone of quality
control, ensuring that textile products meet stringent
standards. Recent advancements in technology,
particularly in artificial intelligence (AI) and computer
vision, have transformed defect detection processes,
enabling manufacturers to identify and rectify defects
with unprecedented efficiency and accuracy.
Intelgic, a leading provider of AI-driven defect
detection solutions, is spearheading innovation in the
textiles industry.
Importance of Quality Control and Defect Detection
Quality control is vital in the textiles industry, where
even minor defects can lead to customer dissatisfaction
and financial losses. Traditional defect detection methods,
such as manual inspection, are time-consuming and prone
to errors. However, with AI-driven automated defect
detection systems, textile manufacturers can enhance
their quality control processes, ensuring that only
flawless products reach the market.
AI in Product Inspection
AI has emerged as a game-changer in product
inspection and defect detection. By leveraging machine
learning algorithms and computer vision techniques, AI-
powered systems can analyze vast amounts of data and
images, enabling the identification of defects with
unparalleled precision. These systems excel in detecting
surface imperfections and subtle visual anomalies,
ensuring the highest product quality.
Automated Defect Detection Systems
Automated defect detection systems equipped with
APPAREL | SILVER LINING
computer vision capabilities are revolutionizing quality
control in the textiles industry. These systems can
perform surface inspections to detect imperfections such
as weaving defects, color inconsistencies, or flaws in
fabric texture. Additionally, they excel in visual defect
inspection, identifying flaws such as print quality issues
or garment defects with exceptional accuracy.
Industry 4.0 and Defect Detection
The integration of AI-driven defect detection with the
principles of Industry 4.0 is reshaping quality control
practices in the textiles industry. Industry 4.0 emphasizes
connectivity, data analytics, and automation, enabling
real-time monitoring and predictive maintenance. AI-
powered defect detection systems play a crucial role in
creating smart textile facilities capable of adaptive quality
control.
Real-world Applications
AI-driven defect detection systems find diverse
applications in the textiles industry, including fabric
inspection, garment inspection, print quality inspection,
textile surface inspection, detection of weaving defects,
and identification of color inconsistencies. These systems
ensure that textile products meet the highest quality
standards before reaching consumers.
Benefits of Automated Defect Detection
The implementation of AI-driven defect detection
systems offers several benefits to textile manufacturers,
including enhanced product quality, increased efficiency,
cost savings, and improved brand reputation. By reducing
scrap, rework, and product wastage associated with
defective products, AI-driven inspection systems
contribute to profitability and customer satisfaction.
In conclusion, AI-driven defect detection with
computer vision technology represents a significant
advancement in quality control practices within the
textiles industry. By leveraging the capabilities of AI and
Industry 4.0 principles, manufacturers can achieve
unprecedented levels of accuracy, efficiency, and
consistency in identifying and addressing defects. As
technology continues to evolve, automated defect
detection systems will play an increasingly vital role in
ensuring product quality and maintaining
competitiveness in the global textiles market.
Authored by: Umar Awan
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY / 11
 APPAREL | COVER STORY

PM INAUGURATES BHARAT TEX

2024 IN NEW DELHI

12 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY

 APPAREL | COVER STORY

-Garment industry thanks PM for his assurance of fullest support

to the textiles industry

-Thread of Bharat Tex connects the glorious history of Indian tradition

with today's talent; technology with traditions; and is a thread
to bring together style, sustainability, scale and skill

T he Prime Minister, Shri Narendra Modi

inaugurated Bharat Tex 2024, the largest global
textile event organized at Bharat Mandapam in
New Delhi. The Prime Minister also took a walkthrough
of the exhibition showcased on the occasion. This
monumental event is orchestrated by a collaborative
effort of 11 Textile Export Promotion Councils, with
backing from the Ministry of Textiles. An exhibition
spread across nearly 2 million sq ft of area and
encompassing the entire textile value chain, helped
position India as a global powerhouse in textiles,
showcasing its capabilities and generating momentum
throughout the entire Indian textiles’ ecosystem.
Addressing the gathering, the Prime Minister
welcomed everyone to Bharat Tex 2024 and said that The Prime Minister said that the event encompasses
today’s occasion is special because the event is taking many dimensions as ‘the thread of Bharat Tex connects
place in two of the largest exhibition centers in India the glorious history of Indian tradition with today’s
namely Bharat Mandapam and Yasho Bhoomi. He talent; technology with traditions and is a thread to bring
acknowledged the association of more than 3000 together style/sustainability/ scale/skill. He also saw
exhibitors and traders from about 100 countries, and the event as a great example of Ek Bharat Shreshtha
around 40,000 visitors as he underlined that Bharat Tex Bharat, encompassing myriad textile traditions from all
provides a platform to all of them. over India. He also praised the exhibition at the venue for
displaying the depth, longevity and capability of India’s

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY / 13

 APPAREL | COVER STORY
textile tradition.
Noting the presence of various stakeholders of
the textile value chain, the Prime Minister
highlighted their intellect towards understanding
India’s textile sector as well as being aware of the
challenges and aspirations. He also noted the
presence of weavers and their generational
experience from the ground level who are critical to
the value chain. Directing the address towards
them, the Prime Minister emphasized the resolve of
Viksit Bharat and its four main pillars and
highlighted that India’s textile sector is connected
to each one namely the poor, youth, farmers and
women. Therefore, the Prime Minister said, the
significance of an event like Bharat Tex 2024 only
grows.
The Prime Minister elaborated on the ambit in
which the government is working to expand the role
of the textiles sector in the journey of Viksit Bharat.
“We are focussing on tradition, technology, talent
and training”, he said. He pointed out that the
emphasis is on updating traditional designs to the
demands of the contemporary world. He reiterated
the concept of Five Fs - Farm to Fiber, Fiber to
Factory, Factory to Fashion, Fashion to Foreign
which is binding all elements of the value chain to a
single whole. In order to help the MSME sector, the
Prime Minister mentioned the change in the
definition of MSME to ensure continued benefits
even after growth in size. He also talked about
direct sales, exhibitions and online portals that have
reduced the distance between the artisans and the
market.
The Prime Minister threw light on the
government’s expansive plans to create seven PM
MITRA Parks in various states and underlined the
emphasis on the creation of opportunities for the
entire textile sector. “Government strives to
establish the entire value chain ecosystem in a
single place where modern infrastructure with plug
and play facilities are made available”, the Prime
Minister remarked. He said that it will not only
improve scale and operation but also bring down
logistics costs.
Referring to the employment potential and
participation of the rural population and women in
textiles sectors, the Prime Minister said that 7 out of
10 apparel makers are women and in handloom, the
14 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY
number is even higher. He emphasized that the
steps taken in the last 10 years have made Khadi a
strong medium of development and jobs. Similarly,
welfare schemes and infrastructure push of the last
decade have also benefited the textile sector, he
said.
Talking about India’s growing profile as a cotton,
jute and silk producer, PM Modi said that the
government is supporting cotton farmers and is
buying cotton from them. He said Kasturi Cotton,
launched by the government, will be a big step in
creating India’s brand value globally, he said. The
Prime Minister mentioned measures for the Jute
and silk sector also. He also talked of new sectors
like technical textiles and informed about the
National Technical Textiles Mission and scope for
the startups in the area.
The Prime Minister highlighted the need for
technology and mechanization on one hand and
uniqueness and authenticity on the other and said
that India has a place where both these demands can
co-exist. Noting the products manufactured by
India’s artisans always have a unique feature to it,
the Prime Minister said that demand for such talent
increases with demand for unique fashion.
Therefore, the Prime Minister said, the government
is focussing on skill as well as scale with the number
of National Institute of Fashion Technology (NIFT)
institutes in the country increasing to 19. He said
that local weavers and artisans are also being
connected to NIFTs with the organization of special
training programs about new technology. The Prime
Minister also mentioned the Samarth Scheme
where more than 2.5 lakh people have received
capacity building and skill development training so
far. He informed that the majority of women have
participated in this scheme where around 1.75 lakh
people have already found placement in the
industry.
The Prime Minister also dwelled on the
dimension of Vocal for Local. He said, “Today a
people’s movement is going on in the country for
'Vocal for Local and Local to Global’. He said that the
government is creating systems like exhibitions and
malls for small artisans.
Commenting on the impact of positive, stable
and far-sighted government policies, PM Modi said
that the valuation of the Indian textiles market has

crossed 12 lakh crore rupees from less than 7 lakh
crore in 2014. There is a 25 percent increase in yarn,
fabric and apparel production. 380 new BIS
standards are ensuring quality control in the sector.
This has led to doubling of FDI in the sector in the
last 10 years, he informed.
Highlighting the high expectations from India’s
textile sector, Prime Minister Modi recalled the
efforts of the industry during the Covid Pandemic
for the manufacture of PPE Kits and Face Masks. He
underlined that the government along with the
textile sector streamlined the supply chain and
provided enough PPE Kits and face masks to the
entire world. Looking back at these achievements,
the Prime Minister expressed confidence in India
becoming a global export hub in the near future.
“The Government will stand by you for your every
need,” the Prime Minister assured the stakeholders.
He also recommended enhancing collaboration
among various stakeholders within the textile
sector so that a comprehensive resolution can be
achieved to further the development of the industry.
Observing the proclivity of citizens around the
world to ‘Going back to basics’ in every aspect of life
including food, healthcare and holistic lifestyle, the
Prime Minister said that such is the case in textiles
as well and drew attention to the demand for
chemical-free coloured threads for garment
production. The Prime Minister urged the textile
industry to break away from the mentality of only
catering to the Indian market and look towards
exports. He gave the example of the specific needs
of the African market or the needs of the Gypsy
communities which present immense possibilities.
He asked for the inclusion of chemical segments
in the value chain and the need to find natural
chemical providers.
He also talked about effort to break Khadi out of
its traditional image and turn it into a fashion
statement infusing confidence among the youth. He
also asked for more research in modern areas of
textiles and to regain the reputation of speciality
textiles. Giving the example of India’s diamond
industry which now manufactures all equipment
related to the industry indigenously, the Prime
Minister urged the textile sector to carry out
research in the domain of textile equipment
manufacturing and also incentivize those with new
ideas and results. He also asked the stakeholders to
explore new areas like textiles used in the medical
APPAREL | COVER STORY
field. He asked them to lead and not follow the
global fashion trend.
Concluding the address, the Prime Minister
underlined that the Government is readily available
to function as a catalyst and work towards fulfilling
the dreams of the people, as he urged the industries
to come forward with a new vision that caters to the
world’s needs and diversifies their markets.
Union Minister for Commerce & Industry and
Textiles, Shri Piyush Goyal and Union Minister of
State for Textiles, Smt. Darshana Jardosh was
present on the occasion among others.
The Union Minister of Textiles Shri Piyush Goyal
said there is an urgent need to give a boost to small
businesses in the textile sector to help them realise
their true potential. Speaking at Bharat Tex-2024 in
Delhi, Shri Goyal talked about helping SMEs in the
textile sector by providing them with modern
machines and other allied infrastructure. He said
that the textile sector would not just be benefited
through any one government scheme but by their
convergence.
The minister called for intelligently using the
budget for handloom and handicraft, and making
the budgetary spending transparent. He also said
that industry and government officials should work
together to help artisans earn more and export to
other countries where we know the market.
Chief Minister of Uttar Pradesh Shri Yogi
Adityanath also visited Bharat Tex Expo 2024 and
interacted with media persons there. He said the
global market is awaiting India’s skills, innovation
and technology in the textile sector. UP CM Yogi
Adityanath highlights Uttar Pradesh's role in India's
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY / 15
 APPAREL | COVER STORY
carpet exports at Bharat Tex 2024, emphasizing the
state's potential in the textile sector. 60 percent of
India’s carpet exports originated from Bhadohi,
Mirzapur and Varanasi in Uttar Pradesh. The
country’s total carpet exports are worth ₹17,000
crore.
The Chief Minister extended a warm welcome to
all buyers and visitors at the Bharat Tex 2024 Uttar
Pradesh Pavilion and expressed gratitude to Prime
Minister Narendra Modi for giving the opportunity
to participate as a partner state in the textile event.
Garment industry thanks PM for his assurance of
fullest support to the textiles industry
Applauding the Hon’ble Prime Minister’s vision
for the textiles industry, Shri Sudhir Sekhri,
Chairman AEPC said, “We are grateful to Hon'ble
Prime Minister Shri Narendra Modi for his tireless
efforts toward making India a developed nation. His
mantra of boosting textiles exports through 5F
vision will energise the textiles exports sector and
lead to further employment generation.”
Further, Shri Sekhri said, “Bharat Tex Expo 2024
16 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY
will set the tone for the realization of true potential
in textiles trade. It will ensure India its due place in
terms of branding and positioning which has been
due since long. For such a long time we did not have
an international show of such a global standard and
scale. It's India’s moment in textiles trade.”
We are working on sustainability and ethical
production practices by ensuring ESG compliance
which will give us an edge in the international
market, Shri Sekhri added.
Shri Mithileshwar Thakur, Secretary General
AEPC stated that, “Many global organizations &
international trade bodies including IDH, WGSN,
Better Cotton Initiative, BSI Responsible Sourcing
Network, ITMF, International Apparel Federation,
ITME, BGMEA, Cotton Egypt Association are
partnering with Bharat Tex 2024 to facilitate
discussion and deliberations on issues like global
trends in Textiles and Apparel, sustainability,
circularity, traceability, industry 4.0, innovation,
green financing among others. Several
international speakers are participating in the
knowledge sessions on topics on contemporary
relevance & interest, which will help us understand
international perspective on the challenges and
opportunities in the textiles sector”. The event has
received overwhelming participation from various
renowned international companies brands.
Shri Thakur said, “The event will feature 50+
knowledge sessions with confirmed participation
from CXO level speakers, including representatives
from Bestseller, GAP, KAS Group, H&M, Louis
Vuitton, Tommy Hilfiger, Kohls, Teijin, Toray, Coats,
Nike, PVH, Perennials, YKK, Lenzing, Hugo Boss,
Levis Strauss, Super Dry, Target and many others.
Participation of foreign buyers from 100+
countries, ministerial and business delegations
from key textiles countries and enthusiastic
participation of major textile states of the country
have given the event an altogether different
dimension and taken the global expo to the next
level.
Bharat Tex Expo to be an annual affair
The largest Textile Mega Show- Bharat Tex 2024,
with a focus on Farm to Fashion successfully
concluded on 29th February, 2024 . Sharing his
thoughts on the Expo Chairman AEPC Shri Sudhir
 APPAREL | COVER STORY

Better Cotton Initiative, Responsible Sourcing

Network, ITMF, International Apparel Federation,
BGMEA, BKMEA, Cotton Egypt Association among
others were seen during this Event.

In addition, various Indian and global industry

bodies and associations including CMAI, CITI, SIMA,
SGCCI, TEA, GEMA, YESS, ITMF, ITME, ATMA, NIFT,
among others overwhelmingly supported the Event.

Leading textile States, including Uttar Pradesh,

Sekhri said, “After the culmination of Bharat Tex
2024, the World’s largest textile Show, we can
proudly and confidently say that this was a
whopping success.” The Bharat Tex Expo will be an
annual affair, Chairman AEPC added.
Further Chairman AEPC stated that “Our Hon’ble
Minister of Commerce & Textiles Shri Piyush Goyal
had sown the seeds of this Mega Show in May/June
2023 and it was his infectious optimism that gave us
the courage to embark on this challenging venture
and surmount all the difficulties with elan and ease.
We all shall now reap the benefits of what he had
sown.” I must concede that this Event could not have
been executed with such grandeur and scale
without the unstinted support of the senior officials
of the Ministry of Textiles. Even the Buyers were
amazed at the meticulous execution of this Event in
just 4 months.”
Maharashtra, Gujarat, Madhya Pradesh, Telangana,
Tamil Nadu, and Karnataka were the enthusiastic
participants with dedicated pavilions and
government representations.
A global scale conference with 70 sessions and
112 international Speakers were engaged in
discussions on key textile issues of the day including
Textile Trends, Sustainability, resilient Global
Supply Chains and Manufacturing 4.0.
Bharat Tex emerged as a Launch Pad for various
initiatives and Projects such as IndiaTEX, Launch of
Textile Grand Innovation Challenge, Announcement
of 63 MoUs with international institutions focusing
on collaboration in researc h, innovation,
entrepreneurship, new product development,
skilling and sustainability. ◘

This 4-day event spread across nearly 2 million

sq ft of area, encompassing the entire textile value
chain, attracted policymakers and global CEOs,
3,500 Exhibitors, 3,000 Buyers from 111 Countries
and over one lakh trade visitors.

Major Brands from around the world were

represented during the Show. Few major ones are:
Tommy Hilfiger, Calvin Klein, Vero Moda, Jack n
Jones, Toray, H&M, Target, Kohl’s, K-Mart, IKEA,
YKK, Lenzing, Anko, Coach, CIEL Group, Busana
Group, Brandix Apparels, Teijin Ltd, etc. Domestic
players including Reliance, Aditya Birla, Welspun,
Trident, Vardhman, Nahar, Indocount, Raymond
SRF Industries, among various other players, were
represented during the Show.

Multilateral Organizations and Global Think

Tanks including UNEP, IRENA, Laudes Foundation,
GIZ, IDH, Cotton Connect, WGSN, Fashion for Good,

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY / 17

 APPAREL | TRADE OUTLOOK
India's exports resilient in face
of unfavourable conditions, says
CRISIL; will it sustain?
Despite disruption in trade caused by strife around
the Red Sea, exports have fared better than expected.
This can be partly attributed to proactive support by
the government in the form of easier access to credit,
creation of a task force to investigate non-tariff
barriers, and tackling sanitary and phytosanitary
issues, among others.
I ndia’s merchandise exports strengthened in January,
rising 3.1 per cent on-year to $36.92 billion after 1.0 per
cent growth in December. Despite disruption in trade
caused by strife around the Red Sea, exports have fared
better than expected, said a report by CRISIL. This, it added,
can be partly attributed to proactive support by the
government in the form of easier access to credit, creation of
a task force to investigate non-tariff barriers, and tackling
sanitary and phytosanitary issues, among others.
While the numbers are encouraging, caution is
warranted
“Rising global tensions and unevenness in global growth,
mean maintaining export momentum will not be an easy
task. For instance, many core exports softened in January:
electronic goods (9.3 per cent v 14.4 per cent), engineering
goods (4.2 per cent v 10.2 per cent), and drugs and
pharmaceuticals (6.8 per cent v 9.3 per cent). And some key
agricultural exports have been under pressure partly due to
the ban on rice exports,” the report added.
That said, exports of petroleum products reversed
course, increasing 6.6 per cent to $8.21 billion compared
with a decline of 17.6 per cent in December. Also, chemical
exports seem to be gaining some traction, posting mild
growth (0.3 per cent) after remaining in the contractionary
zone for fifteen consecutive months. On the whole, core
(non-oil, non-gold) exports grew 2.5 per cent on-year in
January, compared with 5.4 per cent in December.
Cumulatively, India’s merchandise exports have declined
4.8 per cent on-year in April-January this fiscal to $354.04
billion, compared with $372.1 billion a year ago.
“Overall, exports are displaying resilience in the face of
unfavourable conditions. To be sure, they are getting
support from a depreciating rupee. The real effective
exchange rate (REER) based on export weights has declined
1.25 per cent on-year during April -December 2023,” said
CRISIL.
18 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY
Imports on growth trajectory too
Notably, India’s merchandise imports, too, grew at a
similar pace as exports — up 3 per cent on-year to $54.41
billion from $52.83 billion in January 2023. Petroleum and
crude products imports turned positive in January,
increasing 4.3 per cent on-year. Sequentially, oil imports
rose to $16.57 billion in January from $14.94 billion in
December. Import of precious metals, too, rose significantly
in January. Gold imports surged 173.6 per cent on-year,
compared with 156.5 per cent in December. Silver imports
rocketed 323.5per cent compared with a contraction of 19.1
per cent in December. Imports of pearl, precious and semi-
precious stones picked up 6.2 per cent on-year, after
recording a fall of 11.7 per cent the previous month.
However, barring these, core imports (non-oil and non-
gold) fell 2.3 pe cent on-year compared with a 0.2 per cent
decline in December.
With exports doing better than imports on a sequential
basis, merchandise trade deficit narrowed to $17.49 billion
in January from $19.8 billion in December. Cumulatively, in
April-January this fiscal, merchandise imports contracted
6.9 per cent on-year to $559.55 billion, helping narrow the
merchandise trade deficit to $205.51 billion from $229.38
billion.
India’s services exports continued to grow positively,
rising 1.3 per cent on-year in December 2023, while imports
contracted. As a result, the services trade balance remains
robust at $15.97 billion in December, compared with $15.38
billion in December 2022. India’s performance in services
exports has largely remained strong this fiscal and is a big
positive for keeping India’s current account deficit in check,
said CRISIL.
Outlook
While merchandise exports has been positive in the past two
months, it remains to be seen if it can sustain, given the
global headwinds. While the near-term challenge for India’s
exports from the disruption caused by the Red Sea strife has
been contained so far, how it will impact prices when export
contracts are renewed will bear watching. Barring this
hiccup, CRISIL said, forecasts by major multilaterals of
better trade growth this year over last is encouraging. The
current account remained in the safe zone in the second half
of this fiscal with trade deficit lower at $87.86 billion during
October-January. Robust services trade surplus and healthy
remittances are positives. Consequently, we expect India’s
current account deficit to be eminently manageable this
fiscal, it concluded. ◘

India's exports will close fiscal at same level as
last year despite uncertainties: Piyush Goyal
Piyush Goyal also said the government measures
such production-linked incentives schemes and
focus on high-quality goods and services would
help in containing the country's trade deficit.
C ommerce and Industry Minister Piyush Goyal
has exuded confidence that during this fiscal,
the country's goods and services export
numbers will be at the same level; as it was last year
despite slowdown and uncertainties in the global trade.
Photo Credit: PTI
He also said that the government measures such
production-linked incentives schemes and focus on
high-quality goods and services would help in
containing the country's trade deficit. So our trade
deficit will be significantly lower than last year.
"I am happy to share with you that we close the
current year in March at the same level as last year. We
have a little bit of an adjustment between goods and
services, but collectively we will be at the same level as
last year, which will be a very, very significant
achievement given that most developing countries and
less developed countries are seeing a fall in their
international trade," Mr. Goyal said in an interview.
Cumulatively, the country's merchandise exports in
April-January 2023-24 contracted by 4.89% to $353.92
billion. The estimated value of services exports during
the ten-month period stood at $84.45 billion. In 2022-
23, India's goods and services exports stood at $776
billion.
The war between Russia and Ukraine; Israel-Hamas
is impacting global supply chains and the Red Sea crisis
APPAREL | TRADE OUTLOOK
has led to significant increase in transportation costs
and delay as Indian exporters have to send their
consignments through the Cape of Good Hope,
encircling Africa.
The Minister said that India saw a scorching pace of
growth in its international trade in the years between
2021 and 2023.
"We grew by 55% over a period of two years, both in
goods and in services'. It went up to $776 billion in only
two years. And with growth on both goods and services,
we could clearly see that this year is going to be one
where we will have to consolidate the gains," he said.
When asked if the government is thinking of
extending some kind of support measures to exports to
deal with the crisis, he said the approach of being
dependent on the government to resolve all the
problems is something that now Indian industry also
does not really desire.
“We have been able to change the thinking to bring
the confidence in the Indian exporters that we should
stand on our own feet. We should not be dependent on
the crutches of the government. And I’m glad to share
with you that they do not want the crutches of support
anymore.”
"What we are doing is of course working through
the military and the Navy to see that we can give
protection to the ships traversing the Red Sea. We are
also continuously in dialogue working with the
countries in that region and with our own exporters,
and very, very mindful and watchful of the situation,"
he said.
When asked about the World Trade Organisation
(WTO), the Minister said it is "very" relevant and will
continue to increase in its relevance as the world needs
a rules-based trading system, which is transparent.
"The understanding that is gradually creeping in
that we will not allow ourselves to make the same
mistakes that countries made in the rural ground, for
example, in agriculture," he said.
Certain quarters of experts are of the view that the
WTO is losing its relevance as the member countries
are not able to reach consensus on key issues.
WTO members agreed to further extend the
moratorium on imposing import duties on e-commerce
trade for two more years. ◘
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY / 19
 APPAREL | SPOTLIGHT
DUTY BENEFITS FOR BANGLADESH
TO CONTINUE UNTIL 2029
B angladesh’s continued access to duty-free
markets for three years post-graduation
from the least-developed country (LDC)
category was affirmed by 166 members of the World
Trade Organisation (WTO) at the Ministerial
Conference in Abu Dhabi recently.
This extension ensures that Bangladesh will
receive LDC-specific technical assistance and
capacity-building for a three-year period after the
UN General Assembly’s decision to graduate from
the LDC category becomes effective.
The decision was reached after intense
negotiations spanning over five days during the
13th WTO Ministerial Conference from February 26
to March 1.
20 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY
LDC graduation refers to the point when an LDC
meets certain United Nations (UN) development
criteria and is no longer defined as an LDC. As the
most vulnerable members of the international
community, LDCs are accorded special treatment at
the WTO, such as enhanced market access
opportunities and flexibilities in adopting WTO
rules.
The decision encourages WTO members that
remove countries from their duty-free and quota-
free preference programmes upon graduation from
the UN LDC list to provide a smooth and sustainable
transition period for the withdrawal of these
preferences after graduation. It marks an
important contribution to the implementation of
the Doha Programme of Action for LDCs for the
period 2022-2031.
Bangladesh, which joined the LDC group in 1975
and is set to leave it in November 2026, faced
uncertainty regarding potential trade losses
amounting to $7 billion annually post-graduation
due to the erosion of the preferential trade facilities
However, this uncertainty has now been alleviated
until 2029.

Although the decision to extend trade benefits to
graduated LDCs was made at the 12th Ministerial
Conference in Geneva in June 2022, the timeframe
was not specified until the recent Ministerial
Conference in Abu Dhabi.
Mustafizur Rahman, a distinguished fellow of
the Centre for Policy Dialogue (CPD) in Bangladesh,
highlighted the opportunity for Bangladesh to
negotiate trade benefits with the key partners such
as the European Union, China, India, the UK, and
South Korea.
However, Bangladesh will not benefit from trade
preferences in the US, as it lacks a preferential duty
programme for LDCs.
Bangladesh’s international trade, primarily
reliant on duty benefits under the LDC category, has
propelled it to become the second-largest apparel
supplier globally after China even if currently, 73
per cent of the country's shipments enjoy LDC-
linked market access, making it the highest
beneficiary among the 45 LDCs.
Regarding the Trade-Related Aspects of
Intellectual Property Rights (TRIPs), no decision
was made at the summit, implying that Bangladesh
will not be eligible for patent waivers in
pharmaceutical production post-transition.
While the EU typically grants a three-year grace
period to graduating LDCs, Bangladesh is already
guaranteed trade benefits until 2029.
The European Commission acknowledged the
WTO’s efforts to improve the implementation of
special and differential treatment for developing
countries in key areas of market access standards.
However, consensus was not reached on key issues
such as fisheries subsidies and public stockholding
of food during the Ministerial Conference in Abu
Dhabi.
Welcoming this achievement, Director-General
Ngozi Okonjo-Iweala said: “LDC graduation is an
important sign of development progress. Today,
WTO members reaffirmed their commitment to
helping smoothen this process for graduating LDCs
to prevent any loss of the economic growth and
development momentum that had propelled them
to graduation. This decision is a significant step
towards addressing the particular challenges
APPAREL | SPOTLIGHT
graduating LDCs face, and will help people from
these countries tap into the opportunities that
international trade brings. It also is another
welcome sign that the wider WTO membership is
responding to LDC priorities.”
The chair of the General Council, Ambassador
Athaliah Lesiba Molokomme of Botswana, said: “I
would like to congratulate all members, in
particular the LDCs, on this successful outcome. Let
me also express my appreciation to all members, as
well as the current and former LDC Group
Coordinators and the Focal Point for LDC
Graduation, for their tireless effor ts and
pragmatism to bring this issue to a close. This is
commendable and inspiring, and hopefully puts the
work and discussions that lie ahead of us,
The Coordinator of the LDC Group, Ambassador
Kadra Ahmed Hassan of Djibouti, said: “LDC
graduation has been a key priority for the WTO LDC
Group. This decision provides greater predictability
and confidence to countries on the path to
graduation and to further integration into the
multilateral trading system.”
There are currently 46 LDCs, of which 16 are at
different stages of the graduation process. Of these,
ten are WTO members (Angola, Bangladesh,
Cambodia, Djibouti, Lao People's Democratic
Republic, Myanmar, Nepal, Senegal, Solomon
Islands and Zambia) and four are negotiating their
terms of entry into the WTO (Bhutan, Comoros, Sao
Tomé and Principe, and Timor-Leste). The other
two LDCs on the graduation path are Kiribati and
Tuvalu. The Doha Programme of Action for LDCs
calls for 15 more LDCs to meet the graduation
criteria by the end of the decade. ◘
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY / 21
 APPAREL | SPOTLIGHT

India-EFTA
Trade and
Economic
Partnership
Agreement

I ndia-European Free Trade Association signed

a Trade and Economic Partnership Agreement
(TEPA) on 10th March 2024.

India has been working on a Trade and Economic

Partnership Agreement (TEPA) with EFTA countries
comprising Switzerland, Iceland, Norway &
Liechtenstein for quite sometime. The Union
Cabinet chaired by the Hon’ble Prime Minister has
approved signing of the TEPA with EFTA States.
EFTA is an inter-governmental organization set up
in 1960 for the promotion of free trade and
economic integration for the benefit of its four
Member States.
first time, India is signing FTA with four developed
nations - an important economic bloc in Europe. For
the first time in history of FTAs, binding
commitment of $100 bn investment and 1 million
direct jobs in the next 15 years has been given. The
agreement will give a boost to Make in India and
provide opportunities to young & talented
workforce. The FTA will provide a window to Indian
exporters to access large European and global
markets.”

Hob’ble Prime Minister Shri Narendra Modi

hailed the signing of the of the trade agreement as a
'Watershed moment', underscoring a collective
dedication to fostering open, fair, and equitable
trade. He said the global leadership of the four
nations in innovation, R&D across diverse areas
such as digital trade, banking and financial
The agreement comprises of 14 chapters with
services, transport and logistics, industrial
focus on market access related to goods, rules of
machinery, biotechnology, pharma, chemicals, food
origin, trade facilitation, trade remedies, sanitary
processing, and clean energy, will open new doors
and phytosanitary measures, technical barriers to
of collaboration.
trade, investment promotion, market access on
services, intellectual property rights, trade and
Speaking on the occasion, Shri Piyush Goyal, sustainable development and other legal and
Minister of Commerce and Industry, Food and horizontal provisions.
Consumer Affairs and Textiles said, “TEPA is a
modern and ambitious Trade Agreement. For the
EFTA is an important regional group, with

22 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY


several growing opportunities for enhancing
international trade in goods and services. EFTA is
one important economic block out of the three
(other two - EU &UK) in Europe. Among EFTA
countries, Switzerland is the largest trading
partner of India followed by Norway.
The highlights of the agreement are:
• EFTA has committed to promote investments
with the aim to increase the stock of foreign direct
investments by USD 100 billion in India in the next
15 years, and to facilitate the generation of 1 million
direct employment in India, through such
investments. The investments do not cover foreign
portfolio investment.
• For the first ever time in the history of FTAs, a
legal commitment is being made about promoting
target-oriented investment and creation of jobs.
• EFTA is offering 92.2% of its tariff lines which
covers 99.6% of India’s exports. The EFTA’s market
access offer covers 100% of non-agri products and
tariff concession on Processed Agricultural
Products (PAP).
• India is offering 82.7% of its tariff lines which
covers 95.3% of EFTA exports of which more than
80% import is Gold. The effective duty on Gold
remains untouched. Sensitivity related to PLI in
sectors such as pharma, medical devices &
processed food etc. have been taken while
extending offers. Sectors such as dairy, soya, coal
and sensitive agricultural products are kept in
exclusion list.
• India has offered 105 sub-sectors to the EFTA
and secured commitments in 128 sub-sectors from
Swit zerland, 114 f rom Nor way, 107 f rom
Liechtenstein, and 110 from Iceland.
• TEPA would stimulate our services exports in
sectors of our key strength / interest such as IT
services, business services, personal, cultural,
sporting and recreational services, other education
services, audio-visual services etc.
• Services offers from EFTA include better access
through digital delivery of Services (Mode 1),
commercial presence (Mode 3) and improved
commitments and certainty for entry and
temporary stay of key personnel (Mode 4).
• TEPA has provisions for Mutual Recognition
Agreements in Professional Services like nursing,
chartered accountants, architects etc.
• Commitments related to Intellectual Property
Rights in TEPA are at TRIPS level. The IPR chapter
with Switzerland, which has high standard for
APPAREL | SPOTLIGHT
IPR,shows our robust IPR regime.India’s interests
in generic medicines and concerns related to
evergreening of patents have been fully addressed.
• India signals its commitment to Sustainable
development, inclusive growth, social development
and environmental protection
• Fo s t e r s t r a n s p a r e n c y, e ffi c i e n c y,
simplification, harmonization and consistency of
trade procedures
• TEPA will empower our exporters access to
specialized inputs and create conducive trade and
investment environment. This would boost exports
of Indian made goods as well as provide
opportunities for services sector to access more
markets.
• TEPA provides an opportunity to integrate into
EU markets. Over 40% of Switzerland’s global
services exports are to the EU. Indian companies
can look to Switzerland as a base for extending its
market reach to EU.
• TEPA will give impetus to “Make in India” and
Atmanirbhar Bharat by encouraging domestic
manufacturing in sectors such as Infrastructure
and Connectivity, Manufacturing, Machinery,
Pharmaceuticals, Chemicals, Food Processing,
Transport and Logistics, Banking and Financial
Services and Insurance.
• TEPA would accelerate creation of large
number of direct jobs for India’s young aspirational
workforce in next 15 years in India, including better
facilities for vocational and technical training.
TEPA also facilitates technology collaboration and
access to world leading technologies in precision
engineering, health sciences, renewable energy,
Innovation and R&D.
After a hiatus of nearly 16 years, the EFTA
members have finally reached this agreement,
marking a milestone in their Free Trade Agreement
(FTA) history. Over 21 rounds of negotiations, the
parties worked towards their conclusion,
culminating in this significant agreement. ◘
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY / 23
 APPAREL | SUSTAINABILITY CORNER
TRIPARTITE MoU TO REDUCE
TEXTILE WASTE IN INDIA GIVES
HOPE, BUT CAUTIOUS STEPS NEEDED
Strategic approach essential to ensure that upcycling leads
to circular & sustainable future for Indian textile industry
H
eaps of discarded clothing and fabric
scraps paint a grim picture of the textile
industry’s environmental impact. India, a
major player in the global textile scene, is no
stranger to this. The country grapples with
managing a staggering 7,800 kilotonnes of textile
waste annually, accounting for 8.5 per cent of the
global total.
About 51 per cent of this waste originates from
post-consumer sources, like discarded clothing,
while 42 per cent comes from pre-consumer waste
generated during production, such as fabric offcuts
and yarn scraps and the remaining 7 per cent is
imported.
To c o m b a t t h i s e s c a l a t i n g i s s u e , t h re e
government entities have joined forces. Textiles
committee, under the Union ministry of textiles,
Government e-Marketplace (GeM) under Union
ministry of commerce and industry and standing
conference of public enterprises, Department of
Public Enterprises signed a tripartite Memorandum
of Understanding (MoU) at the recent Bharat Tex
24 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY
2024, India’s premier global textile event.
This MoU signified a collective recognition of the
growing concern surrounding textile waste, both
pre- and post-consumer. It also signifies a collective
effort towards promoting upcycling as a solution to
divert waste from reaching municipal dumps and
fostering a circular economy by keeping textiles in
use for longer periods and minimising the need for
virgin materials.
The GeM will collaborate with stakeholders in
the upcycling ecosystem, particularly under-served
seller groups, to provide them with direct market
access for their products through ‘Vocal For Local’
GeM outlet stores, eliminating intermediaries and
streamlining the supply chain.
Through advocacy, awareness campaigns,
outreach programmes and capacity building
workshops, the initiative aims to support and
empower “last-mile upcyclers” who work directly
with waste materials. Furthermore, development of
clear and consistent technical specifications for
listing upcycled products on the GeM platform
would ensure quality and consistency, fostering
trust among buyers and sellers.
It’s important to distinguish between upcycling
and traditional textile-to-textile recycling, as they
represent different approaches to managing textile
waste. The MoU prioritises promoting upcycling as
a readily accessible and cost-effective solution to
address the immediate challenge of managing large
volumes of textile waste. It doesn’t address
advancements in traditional recycling.

Upcycling focuses on reusing discarded textiles by
transforming them into new products with a higher
value or function. It requires less specialised
infrastructure and technology, making it a viable
option for smaller businesses, communities and
individuals.
Traditional textile-to-textile recycling involves
deconstructing used textiles into their basic
components (fibres) through mechanical or
chemical processes. These recycled fibres are then
used to create new yarn and ultimately new textiles.
Implementing a truly circular economy in India
requires overcoming existing challenges. The
country struggles with mixed waste streams. Dry
waste, often contaminated with organic matter,
h i n d e rs e ffi c i e n t u p c yc l i n g an d re c yc l i n g
initiatives. For instance, plastic bottles undergo a
long and inefficient journey before reaching the
recycler.
A whopping $83 million has been invested in the
circular economy in India by impact investors in
2022. A significant portion of this investment – $45
million, came from circulate capital alone.
Circular economy emphasises regenerating
materials to their original form. For example, a
used plastic bottle transformed into another bottle
represents true circularity, while transforming it
into a toy doesn’t, as it creates a mixed product,
ultimately destined for dump sites after its lifespan.
The textile industry faces even greater hurdles
than its plastic counterpart. The existing upcycling
and recycling infrastructure is at a nascent stage –
largely unorganised and underdeveloped. The
prevalent practice of downcycling waste and
reliance on virgin materials to enhance quality
indicates a lack of focus on sustainable solutions
and circular economy principles.
Moreover, unlike single-fibre materials, it is
highly likely that upcycling blended fabrics would
result in mixed products. When this upcycled
product would reach its end-of-life, the mixed
materials would make responsible disposal or
recycling difficult.
Compounding this issue is the poor recovery rate at
materials recovery facilities in most Indian cities.
While a handful of cities boast commendable
APPAREL | SUSTAINABILITY CORNER
practices, the majority struggle to efficiently
recover textiles from the overall waste stream.
This significantly reduces the pool of material
available for upcycling and recycling initiatives.
Moreover, the absence of extended producer
responsibility for textiles removes any incentive for
the authorised waste collector and informal
workforce as well as manufacturers and businesses
to design for circularity, further exacerbating the
waste problem.
Findings from research suggest that in India not
even 50 per cent of the total textile waste is
collected in the first place, and of the recovered
waste, about 10 per cent is upcycled and 25 per cent
is recycled. The majority of recovered waste
undergoes downcycling into lower quality products
or is incinerated.
Waste management companies like Nepra
Resource Management Pvt Ltd exemplify this
dilemma. While they recover valuable materials
from the waste stream, a large portion – consisting
of 60-70 per cent of post-consumer textile waste,
lacks economic value. This “low-value material”
ends up being incinerated, highlighting the
limitations.
While the MoU signifies a promising step
towards addressing textile waste challenges in the
country, a cautious and strategic approach is
necessary to ensure upcycling contributes
effectively to a truly circular and sustainable future
for the Indian textile industry. ◘
Source: Down To Earth
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY / 25
 APPAREL | PERSPECTIVE

HOW TO MAKE TEXTILE AND GARMENT

PRODUCTION MORE SUSTAINABLE
• The rapid expansion of textile and garment production in the past 20 years has been driven by
falling production costs and rising consumption.

• This has led to over-production and fast fashion trends, exacerbating the industry's long-standing
environmental and social sustainability challenges.

• Many producers lack viable or cost-effective options for more environmentally and socially friendly
inputs and processes. Here's how that could change.

P roducing and consuming garments more

sustainably could boost the global economy by
almost $200 billion by 2030. However, this
requires collec tive ac tion by industr y leaders,
manufacturers and consumers.
Textile and garment production and trade have
expanded rapidly in the past two decades, driven by falling
production costs and rising consumption.
How young people are shaping the future of
sustainable fashion
Technological innovations have made it possible to
produce clothes with shorter lead times, enabling the
rapid turnover of new clothing lines and facilitating the
emergence of fast fashion. This has contributed to
significant over-production and means clothes are often
worn only a few times before being discarded. Globally,
the average number of times a garment is worn has
declined by 36% since the early 2000s.
These trends have amplified long-standing social and
environmental sustainability concerns relating to textile

26 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY


and garment production.
Addressing these concerns is of paramount importance
given their connection to the Sustainable Development
Goals. Doing so is critical to global efforts to decarbonize
supply chains and curb greenhouse gas emissions in pursuit
of a net-zero future.
Economic and social sustainability challenges
The textile and garment industry has a long history of
sustainability issues. Stringent competition has placed
downward pressure on textile and garment workers’ wages,
often leading to low pay, significant gender wage gaps and
limited benefits.
Abusive labour practices have been widely documented,
as have instances of gender discrimination and workplace
harassment. Several high-profile incidents have highlighted
unsafe working conditions in factories.
A lack of transparency in garment supply chains has
amplified these concerns.
Environmental implications
There are also well-documented environmental impacts
associated with producing and disposing of textiles and
garments (Figure 1). These industries contribute 4-10% of
global carbon emissions, which could rise to 26% by 2050.
Many producers lack viable or cost-effective options to
bring in more environmentally friendly inputs and
processes. There are also practical obstacles to recycling
used textiles and garments, including insufficient
infrastructure to locate, collect and process discarded
items. Only 13% of materials used across the garment value
chain are recycled.
The sustainable fashion revolution is well underway.
These 5 trends prove it
Recent trends and events continue to call for a fashion
revolution. We need to move the fashion industry away from
the take-make-dispose consumption of clothes that are
often produced in inhumane conditions and affect the
environment in more damaging ways than most people
APPAREL | PERSPECTIVE
realize. This issue has been described in previous Agenda
blogposts on the hidden costs of the fashion industry and,
specifically, the environmental costs of fast fashion. We
need bottom-up action and solutions, developed with a next
generation mentality, featuring tangible examples and
actionable plans. We have identified five ways pioneers are
creating sustainable change and presenting promising new
ways of thinking that are disrupting the fashion industry.
1. Enable behaviour change
Several pioneers are focusing on empowering consumers
to make more sustainable fashion choices. To spur such
behaviour, it is essential to make it personal and human. Do
not forget why people buy clothing: for validation, for
recognition and to express their identity. By giving them
access to knowledge and a number of options, customers
can develop critical thinking for conscious and well-
informed purchasing decisions. Examples include Good On
You app, which revalues your closet and its contents,
allowing for comparing brands and engaging on
sustainability; and Rent the Runway, which taps into a
luxury sharing economy, allowing customers to rent
designer dresses for a fraction of the retail price.
Interestingly, the latter start-up has recently received a $20
million investment from Alibaba founder Jack Ma, which
indicates its promise.
Other initiatives cultivate a generation of fashion
professionals with the tools to apply new thought processes
within organizations. Examples of these are:
A master’s degree in circular fashion entrepreneurship
at the Amsterdam Fashion Institute. In collaboration with
the Dutch social enterprise Circle Economy and Fashion for
Good, this forthcoming course will teach students to start a
fashion business while considering social and
environmental values.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY / 27
 APPAREL | PERSPECTIVE
Centre for Sustainable Fashion. This research centre at
the University of the Arts London, based at London College
of Fashion, has its 10-year anniversary this year. That’s a
decade of using fashion to instigate behavioural change
and build a more sustainable future.
Youth Fashion Summit. This is a partnership between
UN Global Compact and the Global Fashion Agenda in
which students are challenged over a two-year programme
to design a framework for sustainable fashion to
contribute to Sustainable Development Goals 3 and 5.
2. Collaboration at scale
During any systemic change, there are many
pioneering initiatives in the fashion industry that
stimulate collaboration on sustainability challenges.
Stakeholders are breaking boundaries that belong to the
old take-make-dispose version of the industry – for
example, when brands collaborate with partners in their
value chains. They share with and learn from each other by
using the same tools for measuring sustainability or social
and environmental impacts. They aim to play by the same
rulebook and use “one common language”, with a focus on
comparability, progression over time and preventing
repetition. Some pioneering initiatives that spur
collaboration at scale are: Shaping Fashion, a project to
bring together the Global Shapers and Fashion Revolution
networks to address local/regional issues in the fashion
industry and amplify impact through a global campaign;
and the Sustainable Apparel Coalition, which unites all
players in the value chain to identify and measure
sustainability performance on a large scale. The Zero
Discharge of Hazardous Chemicals “Roadmap to Zero”
programme, meanwhile, connects the textile, leather and
footwear industry to eliminate the use of hazardous
chemicals.
28 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY
3. Circular innovation
A third way that pioneers are making the fashion
industry more sustainable is by working on circular
innovation. From upcycling to recycling, there is a move
away from mechanical and chemical processes to
ecological processes; in this way, the fashion industry can
start closing the input-output loop and stop using so many
raw materials. The good news is that there are already new
business models out there closing the implementation gap.
It is no longer a question of how but when will the fashion
industry become fully circular. Here are some examples of
circular innovations:
Fashion for Good. This global platform’s accelerator
programme has supported many innovative initiatives,
such as: SpinDye, offering a clean and traceable colouring
method for textiles; LiteHide by LeatherTeq, a technology
to prevent the use of salt for preservation of hides in
leather making; Pili Bio, which makes organic dyes from
microorganisms, and the Agraloop, which collects food
crop waste and turns it into fibres that can be used in
textiles.
C i rc u l a r Fa s h i o n G a m e s. I n t h i s b o o t c a m p
programme, interdisciplinary teams work on circular
innovations for the fashion industry. One solution
produced was a digital tool for fibre company Lenzing to
inform designers who use their textiles about circular
choices.
Fibersort. This technology automatically organizes
large volumes of mixed post-consumer textiles by fibre
type. It provides textile recyclers with reliable and
consistent material input, thereby preventing large
amounts of waste.
Dyneema. This strong, lightweight fibre can enhance
the durability and performance of apparel to ensure a
longer lifetime.
4. Transparency
A fourth realm of innovation is in fashion industry
transparency. The key question is: how do we apply
transparency as a tool for change? Stakeholders want to
prevent exhaustive transparency efforts without a positive
impact on the real world. What is required is transparency
with intent, whereby players have access to and
comprehension of information for a more sustainable and
trusted value chain. Examples of transparency initiatives
include: A Transparent Company, a start-up applying
blockchain technology to create value chain transparency;
the Fashion Transparency Index, for which, every year,
Fashion Revolution ranks 150 of the largest brands on the
extent to which they disclose information on social and
environmental practices; and EON-ID, which uses the

internet of things to connect an item of clothing to all steps
in the value chain and provide the information required to
foster sustainable innovation.
5. The modern-day makers
You cannot take the maker out of fashion. That is why a
fifth area of pioneering stems from exactly that group.
Modern-day makers are artisans, researchers, engineers
and pioneers. They are actively reviving and cherishing the
most traditional local and regional techniques, as well as
developing cutting-edge technologies or merging both the
old and the new.
APPAREL | PERSPECTIVE
Examples include:
Enschede Textielstad. This initiative is reviving
weaving in the city of Enschede, the Netherlands. They use
old looms and recycled textiles but in new ways, offering
circular textile solutions.
Mycotex. This mushroom-based textile can be grown
into custom-fitted moulds. The technology prevents large
amounts of landfill, is fully biodegradable and even has
potential benefits in terms of skin-caring features.
Diamond Foundry. These man-made diamonds are
produced through reactor plasma technology, without the
environmental or human harm involved in conventionally
mined diamonds.
Bolt Threads. This company creates bio-fabricated silk
by mimicking spider silk production, and a leather-like
material based on mycelium, the vegetative component of
mushrooms.
Craftsmanship in Iloilo. A start-up in the Philippines’
former textile capital is working on creating a directory
for mananahi, or local dressmakers.
All in all, these are exciting times for the fashion
industry. The fashion revolution is well underway, and
every day we see new pioneers being born. Keep an eye out
for them: before you know it, sustainable fashion will no
longer be just a trend but the new normal. ◘
Source: World Economic Forum
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY / 29
 APPAREL | NEXT FRONTIER
CENTRE WILLING TO PROCURE JUTE AND
COTTON CROP IF PRICES FALL BELOW MSP
The minister further said that the Centre is working
towards increasing the production of jute and cotton
and is willing to provide quality seeds and fertilisers
for quality produce to fulfil the vision of farm to
foreign exports.
T he government is willing to procure the harvest of
jute and cotton from farmers if the market price is
lower than the Minimum Support Price (MSP),
Union Minister Shri Piyush Goyal said. The minister further
said that the Centre is working towards increasing the
production of jute and cotton and is willing to provide
quality seeds and fertilisers for quality produce to fulfil the
vision of farm to foreign exports.
The Union Minister for Textiles, Consumer
Affairs & Food & Public Distribution and
Commerce & Industry made the remarks
during his interaction with beneficiaries of the
Textile Sector and also urged them to be vocal
for local.
“Be vocal for local and take local to global. That’s the
clarion call from Prime Minister Narendra Modi to
showcase our products on the world stage”, Shri Goyal said.
The minister further noted that ramping up textile
production in the country will spur income, open up
employment opportunities and play a vital role in making
the country ‘Atmanirbhar’ as well.
He urged the artisans to register their businesses on the
Government e-Marketplace (GeM). Goyal also said he has
instructed GeM to register all artisans and weavers
connected with handicraft and handloom without any
registration fee.
30 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY
“Registering on the e-marketplace will boost the
visibility of artisans and help promote businesses
enhancing their income,” said Shri Goyal.
He further said that the government would try to
facilitate the GeM-registered businesses to be on-boarded
on major e-commerce websites in the country and push for
registering their businesses on foreign websites
prioritising handicraft and handloom.
The minister noted that the support of the officials to the
handicraft and handloom businesses, especially small
enterprises, would help them create an identity through
their craft on the GeM website, the Textiles Ministry stated.
With a special emphasis on promoting the ‘Made in
India’ initiative, Goyal urged the officials to devise ways for
the handicraft beneficiaries to gain from the ‘Handmade in
India’ label and register greater income on their products.
The Minister noted that businesses selling machine-
made products under the ‘Handmade in India’ label should
be penalised and said that the government would take firm
action to protect the handicraft and handloom sectors.
He urged the textile sector to collectively work towards
technological innovation that would ease the lives of the
artisans and weavers and provide an impetus to their
income.
Stressing on the need to redefine and present the
handicraft and handloom at the world stage, the Minister
said that the industry should work towards improving the
quality and packaging of the textile products to increase the
brand value and income of the artisans and weavers.
He also said that with the convergence of schemes like
PM-Suryoday Yojana (free solar-powered rooftop scheme),
Samarth schemes and benefits from textile schemes would
help the artisans benefit their businesses and transform
their income. ◘
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International Apparel and Textile Fair
Dubai, UAE
20th -22 nd May, 2024
THE LAST DATE TO APPLY IS 1st APRIL 2024

For seeking more details, please contact:-

1. Mr. S. Hari Krishnan, Director (EP Department) 2. Mrs. Neelam Seth, Joint Director (EP Department)

Mobile: +91 9560472244 Tel: +91 124 2708108 Mobile: +91 9810505165, Tel: +91 124 2708177
Email: shari@aepcindia.com Email: nseth@aepcindia.com
 APPAREL | FOCUS COUNTRY

United States of America

The relationship between the United States and India is one of the most strategic and consequential
of the 21st century. The United States supports India's emergence as a leading global power and a
vital partner in promoting a peaceful, stable, and prosperous Indo-Pacific region.

Multilateral Cooperation
· India and the United States cooperate closely in multilateral organizations and fora, including the
United Nations, G20, Association of Southeast Asian Nations (ASEAN)-related fora, International
Monetary Fund, World Bank, and World Trade Organization.
· The United States recognizes India's successful G20 presidency, including hosting the September G20
summit. The summit delivered key outcomes including efforts towards a new era of connectivity from
Europe to Asia, stimulating economic development and a commitment to larger and more effective
multilateral development banks.
· Together with Australia and Japan, the United States and India convene as the Quad, a diplomatic
network, to promote a free and open Indo-Pacific.
· India is also one of 12 countries partnering with the United States on the Indo-Pacific Economic
Framework for Prosperity to make our economies more connected, resilient, clean, and fair. The United
States and India look forward to the finalization of the September 7 IPEF Supply Chain Agreement.
· India is a member of the Indian Ocean Rim Association, at which the United States is a dialogue partner,
and which convened in October 2023 in Colombo.

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 APPAREL | FOCUS COUNTRY

Economic Overview:

High-income, diversified North American economy; NATO leader; largest importer and second-largest
exporter; home to leading financial exchanges; low interest rates.

♦ Economic Indicators:
Indicators Value (in USD)
Real GDP (Purchasing Power Parity), 2021 est. 21.132 trillion
GDP (Official Exchange Rate), 2019 est. 21,433.23 Bn.
Real GDP (Per Capita), 2021 est. 63,700
Real GDP (Growth Rate), 2021 est. 5.95 %
Inflation Rate, 2021 est. 4.7 %
Source: The World Factbook – CIA 2024

♦ Exchange Rate:
Indicators Value (in USD)
Indian Rupees (INR) per USA Dollar (USD) 83.00
Source: X-Rates 2024 (Feb 2024 average)

♦ Climate:
Mostly temperate, but tropical in Hawaii and Florida, arctic in Alaska, semiarid in the great plains west
of the Mississippi River, and arid in the Great Basin of the southwest; low winter temperatures in the
northwest are ameliorated occasionally in January and February by warm chinook winds from the eastern
slopes of the Rocky Mountains.

♦ Average Tariff for India:

14.3 % for HS Code 61; 10.7 % for HS Code 62

♦ USA's Apparel Trade:

USA's RMG Import from World and India

2020 2021 2022 % Change 2022
over 2021
USA's RMG imports from World, (In USD Mn.) 71165.7 87287.4 105352.8 20.7
USA's RMG imports from India, (In USD Mn.) 3201.6 4490.7 6004.9 33.7
India's Share in USA's total RMG imports
4.5 5.1 5.7 10.8
from World, %
Source: UN Comtrade 2024

The above table shows that USA’s RMG import from USD 6004.9 mn, registering a growth of 33.7 % as
the World were to the tune of USD 105352.8 mn in compared to 2021. India’s percentage share in USA’s
2022 showing a growth of 20.7 % as compared to RMG import from the World has increased to 5.7 %
2021. RMG import from India has also increased to in 2022. ◘

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY / 33

 APPAREL | FOCUS COUNTRY

♦ Top RMG Supplier to USA:

Top RMG Supplier to USA and India's Position

Imported value
Countries in 2022 (in USD mn) % Share
Position
World 105352.8 100
1 China 23647.6 22.4
2 Viet Nam 18866.2 17.9
3 Bangladesh 9826.4 9.3
4 India 6004.9 5.7
5 Indonesia 5920.8 5.6
Source: UN Comtrade, 2024

The above table shows that China has remained a top supplier of RMG to USA with 22.4 % share in 2022. India is the
4th largest supplier of RMG to USA with 5.7 % share. Vietnam and Bangladesh has a share of 17.9 % and 9.3 %
respectively. ◘

♦ USA's top 10 RMG Products Import from World vs India's share:

Top 10 RMG products imported by USA from World
Imported from Imported from India's
Product label World in 2022 India in 2022 Share
HS (in USD mn) (in USD mn) in %
S. No. Code
Total RMG 105352.8 6004.9 5.7
Sum of Top 10 47729.2 1902.9 4.0

1 611020 Jerseys, pullovers, cardigans, waistcoats and similar articles, of cotton, knitted 10244.2 618.0 6.0
or crocheted ...

2 611030 Jerseys, pullovers, cardigans, waistcoats and similar articles, of man-made 6607.2 28.7 0.4
fibres, knitted ...
3 610910 T-shirts, singlets and other vests of cotton, knitted or crocheted 6565.5 477.2 7.3

4 620342 Men's or boys' trousers, bib and brace overalls, breeches and shorts, of cotton 6122.4 199.9 3.3
(excluding ...
620462 Women's or girls' trousers, bib and brace overalls, breeches and shorts of cotton 5294.7 147.7 2.8
5 (excluding ...
621210 Brassieres of all types of textile materials, whether or not elasticated, 2822.3 60.9 2.2
6 incl. knitted or ...
610990 T-shirts, singlets and other vests of textile materials, knitted or crocheted 2737.8 27.1 1.0
7 (excluding cotton)
Men's or boys' trousers, bib and brace overalls, breeches and shorts of synthetic 2565.6 32.1 1.3
8 620343 fibres (excluding ...
Women's or girls' trousers, bib and brace overalls, breeches and shorts of 2433.9 8.6 0.4
9 610463 synthetic fibres, ...
Men's or boys' shirts of cotton (excluding knitted or crocheted, nightshirts, 2335.7 302.7 13.0
10 620520 singlets and ...
Source: UN Comtrade 2024

The above table shows USA’s top 10 RMG products imported from the World vis-à-vis from India and India’s % share in those
top 10 products. The top 10 products imported from the World were to the tune of USD 47729.2 mn. in 2022 and import from
India of these top 10 products were to the tune of USD 1902.9 mn. India has 4.0 % share in USA’s top 10
products import from the World.

The top products imported by USA from the World includes (i) Jerseys, pullovers, cardigans, waistcoats and similar
articles, of cotton, knitted or crocheted; (ii) Jerseys, pullovers, cardigans, waistcoats and similar articles, of man-made
fibres, knitted; (iii) T-shirts, singlets and other vests of cotton, knitted or crocheted. ◘

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 APPAREL | FOCUS COUNTRY

♦ USA's top 10 RMG products import from India:

Top 10 RMG Products Imported by USA from India
Import from India, % Share
Product label 2022 (in USD mn) in 2022
HS
S. No.
Code Total RMG 6004.9 100.0
Sum of Top 10 3369.6 56.1
1 611020 Jerseys, pullovers, cardigans, waistcoats and similar articles, of cotton, knitted 618.0 10.3
or crocheted ...
2 610910 T-shirts, singlets and other vests of cotton, knitted or crocheted 477.2 7.9

3 620442 Women's or girls' dresses of cotton (excluding knitted or crocheted

and petticoats) 453.8 7.6

4 Babies' garments and clothing accessories of cotton, knitted or crocheted

611120 (excluding hats) 412.2 6.9

5 Women's or girls' blouses, shirts and shirt-blouses of cotton

620630 (excluding knitted or crocheted ... 349.1 5.8

6 Men's or boys' shirts of cotton (excluding knitted or crocheted, nightshirts,

620520 singlets and ... 302.7 5.0

7 Men's or boys' shirts of cotton, knitted or crocheted (excluding

610510 nightshirts, T-shirts, singlets ... 224.1 3.7

8 Men's or boys' trousers, bib and brace overalls, breeches and shorts,
620342 of cotton (excluding ... 199.9 3.3

9 610711 Men's or boys' underpants and briefs of cotton, knitted or crocheted 169.7 2.8

10 Women's or girls' tracksuits and other garments, n.e.s. of cotton

621142 (excluding knitted or crocheted) 162.8 2.7

Source: UN Comtrade 2024

The above table shows USA’s top 10 RMG products imported from India. USA’s top 10 products imported from India
were to the tune of USD 3369.6 mn with 56.1 % share in USA’s total RMG import from India.

The top products imported by USA from India includes (i) Jerseys, pullovers, cardigans, waistcoats and similar
articles, of cotton, knitted or crocheted; (ii) T-shirts, singlets and other vests of cotton, knitted or crocheted; (iii)
Women's or girls' dresses of cotton. ◘

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY / 35

 APPAREL | COUNCIL AFFAIRS

AEPC organized Budget

Viewing and Discussion Session

I n its policy advocacy and awareness generation

efforts, AEPC organized the “Budget Viewing and
Discussion Session” at Conference Hall, Apparel
House, Gurugram on the occasion of the Union Budget
2024-25 being presented by the Hon’ble Finance Minister,
The following experts participated in the event: Shri
Bipin Sapra, Partner, Tax and Regulatory Services, Ernst &
Young LLP (EY); Shri Atul Sharma, Co-founder, Sarvada
Legal; Professor Nisha Taneja, Lead for Trade, Investment
and External Relations (TIER), Indian Council for Research
Smt. Nirmala Sitharaman, on 1st February 2024. The on International Economic Relations (ICRIER); Ms. Sakshi
program consisted discussion among experts and industry Singhal, Founder, Sakshi Law Associates; Shri Manan
representatives. Agarwal, CA, Partner, KrayMan Consultants LLP; Dr Anjali
The session deliberated on: does Union Budget have a Tandon, Associate Professor, Institute for Studies in
5–10-year horizon to enable industry to plan and invest? Industrial Development (ISID); Shri Chirag Jain, Partner,
Does this budget help India to develop as an apparel DSK Legal.
manufacturing and export hub led by industry leaders and Around 25 participants attended the event physically
international brands? What is there in the Union Budget for and around 100 participants attended the event virtually. ◘
the R&D, technology upgradation, innovation and
sustainability? What specific steps can Budget might take to
invite investments and joint ventures (domestic and
overseas) in quality raw material manufacturing?
Shri Mithileshwar Thakur, Secretary General, AEPC
opened the floor by stating that this budget is being
presented at a crucial time of global apparel trade reduction
throughout 2023, which is caused by a confluence of factors
including supply chain disruptions, geopolitical tensions,
slowing world economic growth, inflation, and high
interest rates in many readymade garment importing
markets. At this juncture, important steps to enhance
apparel export would be crucial to maintain the growth
trajectory of the Indian apparel export sector in the coming
financial year.

36 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY

 APPAREL | COUNCIL AFFAIRS

AEPC conducted Women understanding materials & machines for manufacturing,

distribution of RMG, building contacts, networking
Entrepreneurship Acceleration management, industrial visit, etc ◘
Program

A EPC in joint collaboration with Indira Gandhi

Delhi Technical University for Women (IGDTUW)
and Anveshan Foundation conducted a Women
Entrepreneurship Acceleration Program on 'Business
Development & Growth in Readymade Garment Industry'
from 5th February till 16th February 2024 at the IGDTUW
Campus, Kashmere Gate, Delhi.
This free of cost program was funded by the Ministry of
MSME. Total 22 women entrepreneurs spanning from
different parts of the country participated in the program.
The program attracted applications from 90 applicants
who were later interviewed by an independent panel. The
program included lectures on a number of topics of
contemporary relevance to ready made garment industry.
Topics covered during the training sessions were
overview of RMG industry, entrepreneurial & startup
ecosystem of India, incorporation of a company, global
challenges, compliances, market research, major trends,

AEPC requests suspension of an excessive increase in air freight rates, delay in handling
and processing of export cargo and severe congestion at
transshipment of Bangladesh the Cargo Terminal at the IGI Airport, Delhi; resulting in
export cargo via Delhi Air Cargo exports of Indian apparel exports through Delhi air cargo
Complex complex becoming uncompetitive,” Chairman AEPC Shri
Sekhri added.
AEPC therefore, has written to the Chairman CBIC
- It is hurting our competitiveness: requesting suspension of implementation of vide Circular
No. 03/2023-Customs dated 07.02.2023 which has
Chairman AEPC allowed the transshipment of Bangladesh export cargo to
third countries through Delhi air cargo complex also.

A pparel Export Promotion Council (AEPC) has

requested the government (CBIC) to suspend
the implementation of Circular No. 03/2023-
Customs dated 07.02.2023 which allows transshipment
of Bangladesh export cargo to third countries through
Earlier, such transshipment of Bangladesh export cargo
was allowed only through Kolkata Air Cargo complex in
ter ms of Circ ular No. 29/2020- Customs dated
22.06.2020. ◘

Delhi Air Cargo complex.

Commenting on the issue Shri Sudhir Sekhri Chairman
AEPC said, “The continuing Red Sea crisis has already
increased logistical costs for the exporters and it has also
led to shift of export shipments from sea to air mode. At
this crucial time, allowing Bangladeshi export cargo from
Delhi Air Cargo Terminal will further increase the
logistical challenges and increase the transportation cost
for apparel exporters.”
“Almost 20-30 loaded trucks come to Delhi everyday
which slows down cargo smooth flow and this glut is being
taken undue advantage of by the airlines. This has led to

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY / 37

 APPAREL | COUNCIL AFFAIRS

ON ITS 46TH FOUNDATION DAY, AEPC

THANKED THE GOVERNMENT FOR
VARIOUS SUPPORT MEASURES TO
BOOST APPAREL EXPORTS
- The government incentives in budget, FTAs, PLI, RoSCTL, PM MITRA, etc. will
help apparel industry focus on market and product diversification: Chairman AEPC

A pparel Export Promotion Council (AEPC) today

celebrated its 46th Foundation Day at Apparel
House, Gurugram on 22nd February 2024. The
event marked the presence of Chairman AEPC, Shri
Sudhir Sekhri, Shri Rakesh Vaid, Vice Chairman ATDC,
Shri HKL Magu past Chairman AEPC, Shri Gautam Nair,
Executive Committee Member, Shri Mithileshwar
Thakur, Secretary General AEPC and other AEPC staff
members.
The event began with lighting of lamp and cake
cutting in presence of SG AEPC, DSG AEPC and other staff
members. Shri Sudhir Sekhri, Chairman AEPC in his
address said, “Firstly, on behalf of the entire apparel
export community, I extend my sincere thanks to the
Government on the Foundation Day of AEPC. My special
thanks to the Hon’ble Prime Minister Shri Narendra Modi
and the Minister of Textiles, Commerce and Industry,
Shri Piyush Goyal for providing all help to the industry
and an ease of doing export environment.”
Further Shri Sekhri stated that, “The government’s
key initiatives such as FTAs with Australia, Mauritius
and UAE, extension of RoSCTL, enhanced duty drawback,
PM MITRA, PLI for technical textiles, etc. will help us to
focus on market and product diversification.” We are
also grateful to the Ministry of Textiles for aggressively
pursuing creating the ecosystem for the MMF segment
growth. This will help us in creating new opportunities
in the MMF segment, he added.
AEPC has been a major contributor in the export
growth story of India through Buyer-Seller Meet (BSM)
in different parts of the world.
AEPC has planned to promote the global reach of
Indian Apparel Exports to newer export destinations
through its export promotion activities in 2024-25.
AEPC aggressively motivates the Indian Garment
industry towards adopting Sustainable practices and
Circular fashion and embraces the global best practices
in the Indian Garment industry on environmental and
social compliance.
Speaking on the occasion Shri Mithileshwar Thakur,
SG AEPC said that, “Celebrating 46 glorious years in the
service to Nation providing exclusive support to the
Apparel industry of India for enhancing their Global
reach through rigorous Market Intelligence, Global
Compliance, Trade Facilitation and Policy Advocacy.”
AEPC has also initiated a social media blast to spread
awareness about the AEPC ongoing activities focusing on
how government support in helping the Apparel
Industry. All the regional offices of AEPC also joined the
celebration on the 46th Foundation Day. ◘

38 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY

 APPAREL | COUNCIL AFFAIRS

PARTNERSHIP AGREEMENT SIGNED

BETWEEN INDIA & JAPAN IN
INDUSTRIAL COMPETITIVENESS

A Partnership Agreement between India and Japan

in Industrial Competitiveness has been entered.
Under this agreement, a Support Program on
Japanese system of Quality Control for Textile & Apparel
Industry in India is being implemented by the Association
the Toyota 5S system, which means correction at every
small process of production. Also following Traceability in
process from Cotton Yarn, Dyeing , Sewing and Packing to
make Root cause analysis at the point of defect, with
support from Japan their factories are capable of
for Overseas Technical Cooperation and Sustainable achieving Japanese Quality Standard and explained the
Partnerships (AOTS) in collaboration with M/s. Nissenken compliance and procedure they are following they are
Quality Evaluation Centre, Japan and the Textiles taking extra precaution and 100 % inspection of garment.
Committee, Ministry of Textiles, Government of India. Japanese Buyers are canceling the consignment for very
On visit of the following three members delegation minute defect as they are following ZERO tolerance and
from Japan, meeting had been called by Vice- exporters find it difficult to handle, therefore requested
C h a i r p e r s o n , Te x t i l e s C o m m i t t e e a n d Te x t i l e Japanese Inspection Agencies to not consider Natural fiber
Commissioner, GoI on 01.02.2024 at 10:30 a.m. at the O/o Red or Gray foreign fiber from cotton as defects. This will
Textile Commissioner. help Manufacturers to achieve Japanese standards.
1. MS. TANAKA NOBUKA – program Coordinators Mr. Yutaka Shibata – Central Manager replied that to
from The Association of Overseas Technical Cooperation avoid this entire problem they are setting Quality
and Sustainable partnership ( AOTS) inspection laboratories. They already have this lab at
2. Mr. Yutaka Shibata – Central Manager and from Jaipur, now they are planning at Tirupur and at Kolkata.
M/s. Nissenken Quality Evaluation Centre Tokyo At Tirupur they already in touch with TEA
3. Mr. Junji Iwata – Business Promotion Manager Further they also informed that from the year 2026,
from Nissenken Quality Evaluation Centre ASEAN and import duty will be levied on Bangladesh, and lots of order
South East Asia Business HQ for TSHIRTS will be comes to India, So India should
From the Export promotion Council, Mr. Dilip Trivedi prepare for it. ◘
EC member AEPC and Mr. K. Baruah – Joint Director Barua
- Director – Manmade and Technical Textile Export
Promotion Council has attended the meeting
ROOP RASHI – TXC and Mr. S P Verma – Secretary
Textile Committee and Mr. J Dev Barman – Director Export
Promotion and Quality Assurance Div – Textile committee
was present during this meeting.
Ms. Roop Rashi – TXC welcomes the delegate and asked
the reason, spite of FTA agreement with Japan, why our
export is not increase to Japan for Textiles and Garment.
Mr. Dilip Trivedi said that they are one of the biggest
exporters of Garments from the last 40 years, following

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY / 39

 APPAREL | ATDC CONTENT
Shri Atul Bagai, Head, United
Nations Environment Programme
(UNEP) Country Office, India
visits ATDC
A pparel Training and Design Centre (ATDC)
and United Nations Environment Program
(UNEP) are coming together to work on
projects that largely benefit the environment and
the community through projects that address
common goals.
Shri Atul Bagai, Head, UNEP Country Office,
India visited ATDC National Head Office on 20th
February 2024 to explore synergy between both
organisations.
Shri Rakesh Vaid, Senior Vice Chairman ATDC
shared ATDC's perspectives on the areas largely
impacting the Indian textile & apparel sector in
terms of sustainability and environment and need
for providing trained manpower to handle issues of
Sustainability and Circulatory. Shri Vaid said that
AT D C i s m a n d a t e d t o a s s i s t t h e g a r m e n t
manufacturing industry of India in adopting and
s t re n g t h e n i n g e nv i ro n m e n t a l , s o c i a l a n d
governance aspects. The programs being done by
ATDC to reduce gender disparity through factory
interventions in the area of Women Empowerment
and Governance with the active support of
40 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY
internationally acclaimed British and American
Retail apparel brands.
During the meeting Mr Bagai appreciated the
scale of work being done by ATDC and apprised
about the various projects being undertaken by
UNEP across India.
ATDC Directors, Dr. Roopali Shukla, Ms Neera
Singh Parihar and Ms. Gurpreet Kaur shared the
exhaustive research being done to develop
programs to be launched by ATDC on Sustainability
in July 2024.
The possible areas of cooperation between UNEP
and ATDC were presented. It was agreed that UNEP
would connect Experts in the area of Environmental
Sustainability to ATDC. UNEP would also look at
capacity building projects with ATDC in India to
address the skill gaps in the apparel sector that have
been identified in the UNEP reports. These would
further enable the two organizations to work on
green jobs for the sector.
The Management Development Program (MDP)
Program that had been implemented by UNEP was
also appreciated. ATDC could re-cast the program in
keeping with the industry requirements and offer a
relevant program in collaboration with UNEP.
Encouraged by the vast work being done by ATDC in
areas of women empowerment and green Jobs, Mr.
Bagai offered that UNEP would facilitate connecting
ATDC with UN Women and the Green Sector Skill
Council.
ATDC is looking forward to synergizing with
UNEP in curating programs that would benefit the
Indian apparel industry. ◘

ATDC Vice- Chairman meets
Steel Secretary
S h. Rakesh Vaid, Senior Vice-Chairman ATDC
had called on 14/02/2024 Sh. Nagendra Nath
Sinha, IAS Secretary, Ministry of Steel, Govt.
of India. Sh. Rakesh Vaid presented ATDC’s proposal
to work as Partner in ‘Steel Authority of India
Limited (SAIL) with their CSR initiatives for the
‘Merit-cum-Means’ scholarship under the “Learn &
Earn” programme for 300 students/ year
sponsorship to underprivileged meritorious
students in one year job-oriented Diploma courses
of Apparel Sector.
Shri Vaid explained that the inspiration of the
CSR proposal has blended the directions observed
from Hon’ble Prime Minister who has stressed on
Governance and enabling employment by providing
Vocational Education, Soft skills in the diversified
sector of apparel.
ATDC proposals are for social up-liftment of
underprivileged youth through vocational training
APPAREL | ATDC CONTENT
and gainful wage / self-employment in Apparel
Sector, it is our belief that each empowered youth
would in turn support at least 3-5 family members
after their gainful employment, which will have a
‘ripple effect’ on the economy and the quality of
lives of the people and moreover, they can also go
for further studies. Sh. Vijay Mathur, DG ATDC
briefed the proposal.
ATDC’s “Learn & Earn” programme imparts
apparel centric education and awards Diploma in
Apparel Sector courses to underprivileged youth
and empowers them to take up livelihood through
self-employment or wage-employment was
detailed by Ms. Neera Chandra, Director ATDC.
The delegation comprises of under Senior Vice-
Chairman was Sh. Vijay Mathur, DG&CEO and Smt.
Neera Chandra, Director CSR, ATDC. Shri Sinha was
very receptive to the proposal of ATDC. ◘
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY / 41
 APPAREL | INDIA NEWS
CABINET APPROVES CONTINUATION
OF SCHEME FOR REBATE OF STATE AND
CENTRAL TAXES AND LEVIES FOR EXPORT
OF APPAREL/GARMENTS
T he Union Cabinet chaired by Prime Minister Shri
Narendra Modi approved the continuation of
Scheme for Rebate of State and Central Taxes and
Levies (RoSCTL) for export of Apparel/Garments and Made
ups up to 31st March 2026.
Continuation of Scheme for proposed duration of two
(2) years will provide stable policy regime which is
essential for long term trade planning, more so in the
textiles sector where orders can be placed in advance for
long term delivery.
The continuation of RoSCTL will ensure predictability
and stability in policy regime, help remove the burden of
taxes and levies and provide level playing field on the
principle that “goods are exported and not domestic taxes”
The Union Cabinet had given approval of the scheme up
to 31.03.2020 and further approval was given for
continuation of RoSCTL till 31st March 2024. The present
extension upto 31st March 2026 helps in enhancing export
competitiveness of garments and made-ups sectors. It
makes apparel/garments and Made ups products cost-
competitive and adopt the principle of zero-rated export.
The other textile products (excluding Chapter 61, 62 and
63) not covered under the RoSCTL, are eligible to avail the
benefits under RoDTEP along with other products.
The objective of the scheme is to compensate for the
State and Central Taxes and Levies in addition to the Duty
Drawback Scheme on export of apparel/ garments and
42 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY
Made-ups by way of rebate. It is based on an internationally
acceptable principle that taxes and duties should not be
exported, to enable a level playing field in the international
market for exports. Hence, not only indirect taxes on inputs
are to be rebated or reimbursed but also other un-refunded
State & Central taxes and levies are to be rebated.
Rebate of State Taxes and Levies comprises VAT on fuel
used in transportation, captive power, farm sector, mandi
tax, duty of electricity, stamp duty on export documents,
embedded SGST paid on inputs such as pesticides,
fertilizers etc. used in production of raw cotton, purchases
from unregistered dealers, coal used in production of
electricity and inputs for transport sector. Rebate of Central
Taxes and Levies comprises central excise duty on fuel used
in transportation, embedded CGST paid on inputs such as
pesticides, fertilizer etc. used in production of raw cotton,
purchases from unregistered dealers, inputs for transport
sector and embedded CGST and Compensation Cess on coal
used in production of electricity.
RoSCTL has been an important policy measure and has
helped in enhancing competitiveness of Indian exports of
apparel and made ups which are value added and labour-
intensive segments of the Textile Value Chain. Continuation
of Scheme for further duration of two (2) years will provide
stable policy regime which is essential for long term trade
planning, more so in the textiles sector where orders can be
placed in advance for long term delivery. ◘

137 RESEARCH PROJECTS APPROVED UNDER
NATIONAL TECHNICAL TEXTILES MISSION
WITH AN OUTLAY OF RS. 474.7 CRORE
W
ith a view to position the country as a
global leader in Technical Textiles,
National Technical Textiles Mission
(NTTM) has been approved with an outlay of Rs.
1,480 crore; from Financial Year 2020-21 and valid
CAPITAL INVESTMENT SUBSIDY OF
RS. 1,416.50 CRORE RELEASED IN 6,448
CASES UNDER AMENDED TECHNOLOGY
UPGRADATION FUND SCHEME (ATUFS)
IN LAST THREE YEARS
A total Capital Investment subsidy of Rs.
1,416.50 crore has been released in 6,448
c a s e s u n d e r A m e n d e d Te c h n o l o g y
Upgradation Fund Scheme (ATUFS) in last three
years (FY 2020-21 to FY 2022-23). In addition, a
total of Rs. 439.43 crore has been disbursed as
APPAREL | INDIA NEWS
upto 31.03.2026. The Mission has 4 components.
Under Component I of NTTM, Rs. 1,000 crore have
been earmarked for funding the research projects
a w a r d e d t o t h e G o v e r n m e n t
Organizations/Premier Research
Institutes/Textiles Research Associations (TRAs) of
the country. So far, 137 research projects have been
approved under NTTM. The total cost approved of
the said projects by the Government is Rs. 474.7
crore (approx.).
This information was given by the Union
Minister of State for Textiles, Smt. Darshana
Jardosh in a written reply in the Lok Sabha. ◘
Interest Reimbursement/Margin Money Subsidy
under the committed liabilities of old versions of
TUFS, making the total release under ATUFS during
last three years as Rs. 1,855.93 crore across the
country. Capital Investment subsidy of Rs. 166.69
crore has been released in 545 cases under ATUFS
and Rs. 9.38 crore has been disbursed as Interest
Reimbursement/Margin Money Subsidy under the
committed liabilities of old versions of TUFS to the
units located in the State of Tamil Nadu making
total release under ATUFS as Rs. 176.07 crore.
Total number of 1,117 energy saving machines
have been incentivized under ATUFS during last five
years.
This information was given by the Union
Minister of State for Textiles, Smt. Darshana Jardosh
in a written reply in the Rajya Sabha. ◘
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY / 43
 APPAREL | INDIA NEWS
QUALITY AND SUSTAINABILITY TO DEFINE
INDIA'S JOURNEY TO BECOME DEVELOPED
BY 2047: SHRI PIYUSH GOYAL
Create a confident ecosystem that respects 'Zero Effect and
Zero Defect': Sh. Goyal to graduating students
U nion Minister for Commerce & Industry,
Consumer Affairs, Food & Public, Distribution and
Textiles, Shri Piyush Goyal said that it is
important to understand and appreciate the importance of
Quality. While addressing the students at the Convocation
Ceremony of the first batch of ‘Gunvatta Gurukul Program’
of the Quality Council of India (QCI), the Minister said for
Prime Minister Shri Narendra Modi quality and
sustainability are two most important issues that will
define the nation’s journey in becoming a developed nation
by 2047.
Shri Goyal expressed his confidence in the Prime Minister
providing quality of living to the citizens in his third term,
44 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY
as he has worked towards providing ease of living to the
people in his second term. Further, while speaking to the
students, the Minister urged the graduating students to
create a young confident ecosystem that respects ‘Zero
Effect and Zero Defect’. He said that India cannot become a
developed nation unless we respect the environment and
imbibe quality and sustainability as prime focus that will
help India reach the ‘golden era’ that our country once
enjoyed.
With an aim to strengthen the young force of India,
nearly 20% of the total world youth population, QCI
celebrates the first convocation ceremony of the first batch
of the Gunvatta Gurukul, a ground-breaking initiative
aligned with the vision of preparing and propelling youth to
become an integral part of the Developed India, a Viksit
Bharat, by 2047.
The initiative aims to empower young minds and equip
them for success in the dynamic job market and provide
them a platform to gain insights on the governance and
public policies. In the first batch, 87 bright young
professionals graduated with a recognition from QCI for
their dedication and achievements.
The success of the first batch paves the way for the
second batch, commencing on February 9, 2024. With its
innovative approach and unwavering commitment to youth
empowerment, Gunvatta Gurukul is poised to make a
significant impact on India's future. ◘
 APPAREL | INDIA NEWS

DPIIT COORDINATES INITIATIVES

FOR EASE OF DOING BUSINESS CREATING
A CONDUCIVE BUSINESS ENVIRONMENT

D epartment for Promotion of Industry and

I n t e r n a l Tr a d e ( D P I I T ) i s t h e N o d a l
Department for coordinating the initiatives
under Ease of Doing Business which are aimed at
creating a conducive business environment. Some of the
and Decriminalizing Government to Business and
Citizen Interfaces across Ministries/States/UTs.

The key focus areas of the initiative are:

steps taken by DPIIT in enhancing ease of doing business
are as under:
India ranks 63rd in the World Bank’s Doing Business
Report (DBR), 2020 published in October, 2019 before
its discontinuation by the World Bank. India’s rank in the
DBR improved from 142nd in 2014 to 63rd in 2019,
registering a jump of 79 ranks in a span of 5 years.
DPIIT is spearheading the dynamic reform exercise
of Business Reforms Action Plan (BRAP), wherein all the
States and UTs in the country are assessed on the basis of
reforms implemented by them on designated
parameters. The focus of the reforms has been on
streamlining the existing regulations and processes and
eliminating unnecessary requirements and procedures.
BRAP covers reform areas such as Information Wizard,
Single Window Systems, Online Building Permission
System, Inspection Reforms, Labour Reforms, etc. BRAP
exercise has helped in building knowledge base as well
as instilling competition within states/ UT’s in
improving their business environment.
DPIIT also coordinates with Ministries/Departments
and States/UTs for initiatives to reduce compliance
burden on citizen and business activities. The objective
of this exercise is to improve Ease of Doing Business and
Ease of Living by Simplifying, Rationalizing, Digitizing
(I Simplification of procedures related to
applications, renewals, inspections, filing records, etc.
(ii) Rationalization of legal provisions, by repealing,
amending or omission of redundant laws,
(iii) Digitization of government processes by
creating online interfaces, and
(iv) Decriminalization of minor, technical or
procedural defaults.
The Jan Vishwas (Amendment of Provisions) Act,
2023 was passed in Lok Sabha on 27th July 2023 and
Rajya Sabha on 2nd August 2023. The Assent of the
President was received on 11th August 2023. The Act
decriminalized 183 provisions of 42 Central Acts
administered by 19 Ministries/Departments.
The Act has helped in rationalizing criminal
provisions and ensuring that citizens, businesses and
the government departments operate without fear of
imprisonment for minor, technical or procedural
defaults. The Act has paved the way for rationalizing
laws, eliminating barriers and bolstering growth of
businesses.
This information has been provided by the Union
Minister of State for Commerce and Industry, Shri Som
Parkash in a written reply in the Lok Sabha. ◘

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY / 45

 APPAREL | INDIA NEWS
3RD MEETING OF ASEAN-INDIA TRADE
IN GOODS AGREEMENT (AITIGA)
JOINT COMMITTEE, 16-19 FEBRUARY 2024
T he 3rd meeting of AITIGA Joint Committee
for undertaking the review of ASEAN-
India Trade in Goods Agreement (AITIGA)
was hosted by India in Vanijya Bhawan, New Delhi
from 16-19 February 2024. The meeting was co-
chaired by Shri Rajesh Agrawal, Additional
Secretary, Department of Commerce, Ministry of
Commerce and Industry, India and Ms. Mastura
Ahmad Mustafa, Deputy Secretary General
(Trade), Ministry of Investment, Trade & Industry,
Malaysia. Delegates from ASEAN countries viz.
Brunei, Cambodia, Indonesia, Lao PDR, Malaysia,
Myanmar, Philippines, Singapore, Thailand & Viet
Nam participated in the meeting.
The AITIGA was signed in 2009. In September
2022, both sides tasked the AITIGA Joint
Committee to undertake the review with the aim of
making the Agreement more trade facilitative and
46 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY
mutually beneficial. A total of eight Sub-
committees have been constituted under the
AITIGA Joint Committee for undertaking
negotiations on different policy areas related to
the Agreement. The first two meetings of the
Joint Committee were held in May and August
2023.
The Joint Committee in its 3rd meeting held
detailed discussions and took stock of the progress
in the negotiations. The Sub-Committees reported
the progress and outcome of their discussions
related to market access, Rules of Origin and
Standards, technical regulations and conformity
assessment procedures to the Joint Committee.
Following the intense discussions, the Joint
Committee outlined the focus areas for further
deliberations and updated the work programme
for the Review while providing necessary
guidance to the Sub-committees to carry forward
the negotiations.
India-ASEAN trade has grown to USD 131.58 Bn
in 2022-23. The review of AITIGA will facilitate
further expansion of trade between India and
ASEAN in a balanced and sustainable manner. Both
sides are aiming to conclude the review in 2025.
The 4th meeting of AITIGA Joint Committee is
planned to be held in Kuala Lumpur, Malaysia in
May 2024. ◘

EXISTING IPR REGIME WELL-EQUIPPED
TO PROTECT AI GENERATED WORKS, NO
NEED TO CREATE SEPARATE CATEGORY
OF RIGHTS
I ntellectual Property Rights including Copyright
and Related rights provide exclusive rights to the
right owner who are legal persons for a set
duration. These rights allow for the work or creation or
innovation to be protected and enables collection of
royalties through licensing. For a right to be granted,
the owner is required to meet the criteria specified
under the law. India being a member of all major
international conventions and agreements for the
protection of Intellectual Property Rights grants
adequate protection of rights for works created by legal
persons through Copyright Law and protects
APPAREL | INDIA NEWS
inventions through the Patent system. Therefore, there
is no requirement to create a separate category of
rights for AIand related innovations in the Indian IPR
Regime. Therefore, while Artificial Intelligence (AI)
and related innovations is an evolving stream of
technology the current legal framework under the
Patent and Copyright Act is well-equipped to protect
Artificial Intelligence generated works and related
innovations. Presently, there is no proposal to create
any separate right so ram end the law in the context of
AI-generated content.
The exclusive economic rights of a copyright owner
such as the right of reproduction, translation,
adaptation etc. granted by the Copyright Act, 1957
obligates the user of Generative AI to obtain permission
to use their works for commercial purposes if such use
is not covered under the fair dealing exceptions
provided under Section 52 of the Copyright Act. Since
Intellectual property rights are private rights, these are
enforced by the individual rights holders. Adequateand
effective civil measures and criminal remedies are
prescribed under the Copyright Law against any act of
infringement or unauthorized use of works, including
digital circumvention.
This information has been provided by the Union
Minister of State for Commerce and Industry, Shri. Som
Parkash in a written reply in the Rajya Sabha. ◘
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY / 47
 APPAREL | INDIA NEWS
INDIA AND PERU TRADE
AGREEMENT NEGOTIATIONS
GAINS MOMENTUM – 6TH ROUND
TAKES PLACE IN LIMA
T he 6th round of India -Peru negotiations
for a Trade Agreement was held from
February 12 to 14, 2024, in Lima, Peru, to
continue the work that started in 2017 when the
negotiation process was formally announced.
The round started with an opening ceremony
with the participation of the Vice Minister of
Foreign Trade of Peru, Ms. Teresa Mera; the
Ambassador of India in Peru, Mr. Vishvas Sapkal;
the Chief Negotiator of India, Mr. Vipul Bansal; the
Chief Negotiator of Peru, Mr. Gerardo Meza; and
the delegations of both countries.
During the ceremony, the Vice Minister of
Foreign Trade of Peru and the Chief Negotiator of
India gave brief introductory remarks reaffirming
their commitment to continue working with
efficiency, as India and Peru did before the
pandemic with five successful rounds until August
2019. The negotiations resumed with the Special
Virtual Round in October, 2023.
In this sense, both speakers emphasized the
importance of taking forward the negotiation
process with pragmatism, in order to find creative
solutions and to reach consensus that allows to
achieve this common objective in the short term.
48 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY
The Trade Agreement will create more trade
opportunities for their citizens and enterprises,
a n d a l s o s t re n g t h e n t h e i r e c o n o m i c a n d
commercial ties.
In this round, nine working groups held in-
person meetings: Trade in Goods, Rules of
Origin, Trade in Services, Movement of Natural
Persons, Customs Procedures and Trade
Facilitation, Dispute Settlement, Initial
Provisions and General Definitions, Final
Provisions and Legal and Institutional Issues.
These meetings involved the participation of
more than 70 delegates from both countries
together, including their respective negotiating
teams. From the Peruvian side, the delegation
was led by the Ministry of Foreign Trade and
Tourism, with the participation of government
officials from other entities such as the Ministry
of Economy and Finance, the Ministry of Foreign
Affairs, the Ministry of Agriculture, the Ministry of
Production, Customs Administration, among
others. From the Indian side, the delegation
comprised government officials and legal
re p re s e n t a t i ve s f ro m t h e D e p a r t m e n t o f
Commerce, Department of Revenue and the
Directorate General of Foreign Trade.
Additionally, during this week and the
following, other working groups such as, Technical
Barriers to Trade, Sanitary and Phytosanitary
Measures, Trade Remedies and Cooperation will
continue to hold virtual meetings. The next round
is expected to be held in April 2024. The date will be
set in the following days.
In the last two decades, the trade between India
and Peru has increased significantly, from US$ 66
million in 2003 to around US$ 3.68 billion in
2023. ◘

GOVT EXEMPTS CERTAIN
EXPORTING UNITS FROM
QUALITY CONTROL ORDERS
It said that the exemption will be with pre-import
conditions, and those inputs will be utilised in the
manufacturing of the export products
T he government exempted advance
authorisation holders and export-oriented
units (EOUs) from mandatory quality control
orders for imported goods that are used as inputs for
INDIA EXTENDS SAMARTH
TEXTILE TRAINING SCHEME
UNTIL MARCH 31, 2025
Its objective is to incentivise and supplement the
efforts of industry in creating jobs in the organized
textile and related sectors, covering the entire value
chain of textiles, excluding spinning and weaving
T he government has extended the 'Samarth'
scheme for training and skilling in the textiles
sector by another year. However, it has decided
to maintain the outlay at the current level. The scheme,
executed by the Ministry of Textiles, will be operational
until March 31, 2025. Financial support for the scheme
will remain at ₹390 crore ($47.13 million).
Originally, the scheme was to be available until
March 31, 2024. The Ministry of Textiles recently issued
a circular to announce the extension. The Department of
Expenditure under the Ministry of Finance has
approved the extension of the scheme.
It is a demand-driven and placement-oriented
umbrella skilling scheme designed to make textile
workers employable in the industry. The scheme was
formulated under the skilling policy of the Ministry of
APPAREL | INDIA NEWS
exports.
It said that the exemption will be with pre-import
conditions, and those inputs will be utilised in the
manufacturing of the export products.
“Enabling provisions are made for exempting inputs
imported by Advance Authorisation holders and EOUs
from mandatory Quality Control Orders (QCOs)," the
Directorate General of Foreign Trade (DGFT) said in a
notification.
The unutilised material will be destroyed in the
presence of jurisdictional GST/customs authorities, it
added.
Mandatory QCOs help curb the import of sub-
standard products, prevent unfair trade practices and
ensure the safety and well-being of consumers as well as
the environment.
QCOs are applicable for products domestically
manufactured as well as imported. Every
manufacturing unit in and outside India has to comply
with these orders if they want to sell in the domestic
market.
The focus of the government is to bring more and
more products under the ambit of QCOs for the
development of the quality ecosystem in the country
and to provide consumers with quality products. ◘
Skill Development and Entrepreneurship. The purpose
of the scheme is to incentivise and supplement the
efforts of the industry in creating jobs in the organised
textile and related sectors, covering the entire value
chain of textiles, excluding spinning and weaving.
According to industry sources, the training
programme and course curriculum were rationalised,
keeping in view the technological developments and
market demands of domestic and other countries.
The scheme is not only promoting entry-level
skilling programmes but is also supporting upskilling
and reskilling programmes for existing workers to
improve their productivity. ◘
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY / 49
 APPAREL | INDIA NEWS
GOVERNMENT EXTENDS RoDTEP
BENEFITS TO EXPORTS FROM SEZ
UNITS
T he Department of Commerce has decided to
expand the RoDTEP scheme to include exports
from SEZs and EOUs
The decision may be a disproportionately high
bonanza for high import intensive exports from SEZs.
However, it overlooks exports from other categories that
are in a similar situation as SEZs
RoDTEP may lead to overcompensation for import
intensive exports from SEZs
A lot of big exports from SEZs like electronics
(including smartphones), petroleum products, diamonds,
and gold jewellery, add less than 10% of their value in
India. This means over 90% of what makes up these
products comes from imports, which don't have to pay
duties. If these exports get a 3% incentive from the
RoDTEP scheme, it means they earn an extra $30 for every
$100 they make. If we add other incentives like PLI, the
figure will be very high
The RoDTEP scheme covers unrefunded taxes. The
amount of such unrebated taxes comes down when
exports are import intensive and imports are duty free.
Applying the same RoDTEP rate to these imports could
lead to overcompensation for embedded taxes, contrary to
the scheme's goal of addressing unrebated taxes
50 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY
Consider RoDTEP for categories similar to SEZs
If products exported from SEZs and EOUs qualify for
benefits, then exports from EHTPs, BTPs, MOOWR scheme
and Customs bonded warehouses should also qualify.
These are similar programs, but right now, they do not get
RoDTEP benefits
SEZ program lets businesses use inputs without paying
duties, similar to Advance Authorisation (AA). However,
RoDTEP benefits are not currently available for exports
under AA. They might be considered for RoDTEP
RoDTEP doesn't cover certain exports: Export of
imported goods (II) Export products subject to Minimum
export price or export duty and (III) Products restricted
for export or imports. However, businesses in SEZs can
export these products. The question is whether RoDTEP
benefits will apply to these SEZ exports, even though
they're normally not eligible
Although sending goods from the domestic market to
SEZs is treated as exporting, these transactions don't
qualify for RoDTEP benefits. However, they are strong
candidates to be included in the RoDTEP scheme
A significant concern is the limited budget for
RoDTEP which could mean reduced rates for all if more
exports are included, especially since these rates are
already lower compared to the previously available MEIS
rates. ◘

India seeks tariff exemption for textiles in
EU FTA talks for competitive edge
I ndia is advocating for labor-intensive textiles and
apparel products to be classified as non-tariff items
in the ongoing negotiations for a free-trade
agreement (FTA) with the European Union.
EU nations impose higher import duties, typically
ranging 10-12%, on textile products, placing India at a
disadvantage compared to China, the EU's leading
supplier of apparel and textiles, said two people seeking
anonymity.
The seventh round of negotiations with the 27-nation
bloc, which started on 19 February, is significant for the
Indian textiles and apparel sector, considering that the
EU, the US and West Asian countries, are the major export
destinations for Indian garments.
“The issue of bringing textiles under the non-tariff
barrier category was prominently raised during the
seventh round of discussions. The talks are still on, and
we are positive about it," the first person said.
India's textile exports to the EU fell from $44.43
billion in 2021-22 to $36.68 billion in FY23. In the first 10
months of the current fiscal year, India exported textiles
worth $27.69 billion globally, including products valued
at $7.67 billion to the EU. This merchandise included
readymade garments worth $4.30 billion and handicrafts
worth $330 million.
India is emerging as a preferred destination for
sourcing textiles, with better quality products, adhering
to global standards, driving exports growth. The
elimination of import duties will further stimulate
growth, the second person said.
Emailed queries to the Union commerce ministry
remained unanswered till press time. The European
APPAREL | GLOBAL NEWS
Commission’s press officer refused to comment.
However, experts hold differing views on the proposal
for zero duty on textile exports. Mere signing of an FTA
may not result in a rise in export of India’s labor-intensive
goods, said Ajay Srivastava, founder, Global Trade
Research Initiative (GTRI).
Eliminating duties in the EU or the UK may benefit
Indian exports, but for a significant increase, we need to
strengthen our product profile, Srivastava, a former
Indian Trade Service officer, added. “India’s export of
apparel to Japan is an example. Even after eliminating
duties on all apparels from day one of the India-Japan
FTA, which came in force in August 2011, the expected
gains did not happen."
Negotiations for an FTA between the EU and India
were launched in 2007, but were suspended in 2013.
Discussions resumed on 17 June 2022, with commerce
minister Shri Piyush Goyal, and Mr. Valdis Dombrovskis,
the executive vice president of the European Commission,
leading the efforts.
The EU is a significant export destination for India,
ranking second only to the US. Nevertheless, non-tariff
barriers imposed by the EU have led to a decline in goods
exports over the past two decades. An FTA could reduce
duties and also address the barriers affecting Indian
agricultural exports. Moreover, India's production-linked
incentives could boost exports of textiles,
pharmaceuticals, and mechanical appliances, all of which
are significant imports for the EU.
In the sixth round of negotiations in October, the two
sides made progress in 18 out of the 23 chapters. ◘
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY / 51
 APPAREL | GLOBAL NEWS
GDP growth at 8.4 per cent
in Dec quarter, PM Narendra Modi hails
'strength, potential of Indian economy'
T
period.
he latest government data showed GDP grew
by 8.4 per cent in the October-December
quarter, against 4.3 per cent in the year-ago
“Robust 8.4% GDP growth in Q3 2023-24 shows the
strength of Indian economy and its potential. Our
efforts will continue to bring fast economic growth
which shall help 140 crore Indians lead a better life and
create a Viksit Bharat!” the Prime Minister posted on X.
The latest government data showed that the GDP
grew by 8.4 per cent in the October-December quarter
in 2023, against 4.3 per cent in the October-December
52 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY
2022 quarter, according to the data released by the
National Statistical Office (NSO).
The manufacturing sector's output, as per the gross
value added in the third quarter of this fiscal, grew by
11.6 per cent compared to a contraction of 4.8 per cent
in the year-ago period.
"Real GDP or GDP at Constant (2011-12) Prices in the
year 2023-24 is estimated to attain a level of ₹172.90
lakh crore, against the first revised estimates of GDP
for the year 2022-23 of ₹160.71 lakh crore. The growth
rate of GDP during 2023-24 is estimated at 7.6 per cent
compared to the growth rate of 7.0 per cent in 2022-
23," the government statement added.
The GDP at current prices in Q3 of 2023-24 is
estimated at ₹75.49 lakh crore compared to ₹68.58 lakh
crore in Q3 of 2022-23, showing a growth rate of 10.1
per cent, it stated.
The NSO revised downward the GDP growth for
2022-23 to 7 per cent from 7.2 per cent estimated
earlier.
The NSO has also revised GDP estimates for the first
and second quarters of this fiscal to 8.2 and 8.1 per cent
from 7.8 per cent and 7.6 per cent, respectively.
The economy has expanded 8.2 per cent in April-
December 2023 compared to 7.3 per cent a year ago. ◘

Charting the global economy:
Germany reels from
manufacturing downturn
G ermany’s economy is struggling to emerge from a
downturn in manufacturing, which is weighing
on growth overall.
Gross domestic product will probably eke out a small gain
this year before stronger momentum takes hold in 2025,
according to the government’s estimates. Even so, stronger
services activity across the rest of the continent propelled a
euro-area gauge of private-sector activity to an eight-month
high in February.
Meantime, economists are much more optimistic about
Apparel brands, retailers to
cover costs of textile waste
under new EU rules
N
ew rules proposed by the European
Commission aim to prevent and reduce textile
waste across the EU.
MEPs in the EU’s environment committee have voted
in favour of adopting a proposed revision of the Waste
Framework Directive.
The new rules will set up extended producer
responsibility schemes for textiles sold on the EU market.
By 1 January 2025, EU countries will need to offer
separate collections of textiles for reuse, preparing for
reuse and recycling.
The new rules cover clothing as well as accessories, hats,
footwear and other textile products. Items made from
leather, composition leather, rubber or plastic are also
included.
APPAREL | GLOBAL NEWS
US growth in the next two years, per the latest Bloomberg
survey. While forecasters largely expect the US economy to
lose some steam after a blockbuster 2023, a still-robust
labour market and receding inflation continue to support
mostly solid household demand.
Here are some of the charts that appeared on Bloomberg
this week on the latest developments in the global economy,
geopolitics and markets:
Germany sees its faltering economy expanding by just
0.2% this year — a much flatter rebound than the 1.3% that
Chancellor Olaf Scholz’s government was predicting as
recently as the fall. Geopolitical tensions and high interest
rates are weighing on the recovery, though rising real wages
and a robust labor market should help over the course of
2024, the nation’s economy minister said.
Euro-area private-sector activity hit an eight-month
high, with services and stabilizing numbers across most of
the region making up for an increasingly dire situation in
German manufacturing. The factory gauge for the region’s
biggest economy slumped to the lowest since October,
revealing a decline in output alongside plummeting new
orders at home and abroad.
Britain delivered the biggest budget surplus on record in
January, a boost for Chancellor Jeremy Hunt two weeks
before he is due to announce what could be the last fiscal
statement before a general election. The undershoot raises
the prospect of tax cuts in the March 6 budget as Hunt comes
under pressure from grassroots Conservatives to rescue
their political fortunes ahead of a general election expected
later this year. ◘
Companies that sell to consumers in the EU will need to
cover the cost of separate collection, sorting and recycling
textiles, with the amount charged proportionate to the cost
of processing.
Clothing and footwear are estimated to account for 5.2m
tonnes of waste in the EU, equivalent to 12kg of waste per
person every year. Less than 1% of textiles worldwide are
currently recycled into new products. ◘
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY / 53
 APPAREL | GLOBAL INDICATOR
India’s cotton yarn exports to surge
by 85% to 90% in FY2024: ICRA
Operating margins in FY2024 however projected to dip
by 200-240 bps amid lower gross contribution levels
I n ICRA’s recently published research note on the
domestic cotton spinning industry, the rating agency
expects demand for the industry to improve by close
to 12-14% in volume terms in FY2024 on a yearly basis,
with yarn exports likely to increase by a sharp 85% to
90%, on the back of a shift in sourcing preference away
from China, and the expectations of demand improving for
the spring/summer season in the US and the EU regions
that will drive domestic demand from apparel and home
textile manufacturers. However, a sharp moderation in
cotton prices, leading to lower yarn realisations, is likely to
translate to a 9-10% year-on-year (YoY) decline in
revenues to Rs. 33,465 crore in FY2024.
Commenting on this, Mr. Jayanta Roy, Senior Vice
President & Group Head, Corporate Sector Ratings, ICRA,
said: “Despite the increase in cotton yarn volumes, ICRA
expects the operating income of Indian cotton spinning
companies to decline by 9-10% and operating margins to
shrink by 200-240 bps in FY2024 amid a significant drop
in realisation and lower gross contribution levels.
Nevertheless, in-house power generation capacities
recently added by select players are likely to alleviate
margin pressures in the medium term.”
Cotton yarn exports typically account for 25-35% of
India’s cotton yarn production, while the remaining is
accounted for by the domestic market. While a steep
decline (53%) was witnessed in cotton yarn exports in
FY2023, there has been a trend reversal in the current
54 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY
fiscal. In 7M FY2024, overall yarn export volumes grew by
142% (on a YoY basis) on a low base, and with increased
exports to China, resulting in the share of exports in the
overall production increasing from 19% in FY2023 to 33%
in 7M FY2024. For the full year FY2024, ICRA estimates
India’s yarn exports to increase by 85- 90% on a YoY basis.
Bangladesh, China, and Vietnam account for 60% of these
exports. With the share of Asia in Indian yarn exports
being 70%, no immediate impact on Indian yarn exports is
expected due to the ongoing Red Sea conflict; any
sustained continuance of this face-off would have a direct
impact on apparel export volumes and a consequent
impact on both domestic and export demand for cotton
yarn and its realisations.
Domestic cotton prices witnessed a lifetime high in H1
FY2023 but declined steadily in H2 FY2023. For the 9M
FY2024, the prices declined further by 25% compared to
average cotton prices in FY2023, on account of a weak
operating environment. As per the estimates of the office
of the Textile Commissioner, domestic cotton production
for Cyi2024 is projected to decrease by 6% due to a
reduction in cotton sown area amid uneven rainfall. Cotton
prices are expected to marginally increase from the
current levels because of lower expected production.
Cotton yarn prices too had remained on a declining
trend since June 2022 following the softening in cotton
fibre prices and slowing demand from the downstream
apparel companies. ICRA expects the cotton yarn prices to
remain soft for the remainder of FY2024 and increase
marginally in FY2025 with demand from downstream
companies picking up. The average gross contribution
margins for the spinners declined sharply by 19% in 9M
FY2024 in comparison with the same in FY2023 on account
of a weak domestic demand. Gross contribution margins
for the spinners reached a multi-year low in August 2023
and improved 9% in November 2023. Despite a modest
increase in gross contribution margins in Q4 FY2024 with
new crop arrivals, ICRA estimates cotton yarn gross
contribution to contract in FY2024 over FY2023 levels.
While cash accruals of spinners are expected to decline in
FY2024, ICRA expects the spinners’ borrowings too to
come down in FY2024. Lack of any major capital
 APPAREL | GLOBAL INDICATOR

expenditure plans along with lower working capital operating profit falling to 3.4 times from 2.6 times in
requirements, given the softening in cotton prices, is Fy2023. ◘
likely to result in lower debt levels and, therefore, an
improvement in capital structure for companies. Capital
structure, as reflected by the total outside liabilities/
tangible net worth ratio, is expected to improve
marginally to 0.5 times in FY2024 (0.6 times in FY2023).
However, following a decline in OPBITDA in absolute
terms, ICRA expects the debt coverage ratios for the sector
to weaken in FY2024 with the ratio of total debt to

JAISHANKAR URGES JAPANESE FIRMS TO

MANUFACTURE AND EXPORT FROM INDIA
reflected in the dynamism of our ties," Jaishankar said of
Japan-India relations.
He stated that government-to-government relations
have progressed faster than business or people-to-people
ties.
Jaishankar also held a joint commission meeting with
his Japanese counterpart Yoko Komikawa.
“Today, our meeting allowed us to take stock of various
ongoing lines of effort, since the dialogue was held last in
July in New Delhi," Jaishankar said at a joint press briefing
with his Japanese counterpart.
“We agreed on the need for new steps… to make this
relationship prepared for, and responsive to, the emerging
geopolitical, geo-economic and geo-technological trends,
and as well to the growing demands of the people of the
two countries to get to know each other better," he added.
India and Japan also agreed to consider development
partnership projects in third countries.
“It will benefit not only our two countries but also other
countries in the neighbourhood through a network of

I
forward and backward linkages," Jaishankar said. ◘
ndia’s foreign minister S. Jaishankar urged Japanese
companies to consider “Make in India" initiatives as
well as export from India to global markets, during
the Raisina Roundtable in Tokyo.
Jaishankar is on a visit to Japan to meet with his
Japanese counterpart Yoko Komikawa. He acknowledged
that while investments into India from Japan have been
robust, bilateral trade has been less robust.
In 2022-23, India-Japan bilateral trade stood at $21.96
billion while foreign direct investment from Japan since
April 2000 has reached almost $41 billion.
Japan is the fifth-largest investor in India.
“When I look at the pace of change and the new
opportunities today in India, I don't really see that

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY / 55

 APPAREL | GST UPDATE
D uring the April-December, 2023 period, gross
GST collection witnessed a robust 12% y-o-y
growth, reaching ₹14.97 lakh crore, as against
₹13.40 lakh crore collected in the same period of the
previous year (April-December 2022). The average
monthly gross GST collection of ₹1.66 lakh crore in the
first 9-month period this year represents a 12% increase
compared to the ₹1.49 lakh crore average recorded in the
corresponding period of FY23. The gross GST revenue
collected in the month of December, 2023 is ₹1,64,882
crore out of which CGST is ₹30,443 crore, SGST is
₹37,935 crore, IGST is ₹84,255 crore (including ₹41,534
crore collected on import of goods) and cess is ₹12,249
crore (including ₹1,079 crore collected on import of
goods). Notably, this marks the seventh month so far
this year with collections exceeding ₹1.60 lakh crore.
The revenues for the month of December, 2023 are
10.3% higher than the GST revenues in the same month
last year.
B. Measures for facilitation of trade: GST Portal
Updates
GSTN enables Online Filing of Annexure-V by
Newly Registered GTAs Opting for Forward Charge
GSTN has developed a functionality allowing for the
online submission of Annexure-V on the GST Portal. This
functionality is designed primarily for newly registered
Goods Transport Agencies (GTAs) that want to use
Forward Charge.
The newly added feature allows users to upload
manual Annexure V that was previously submitted to the
jurisdictional office prior to the start of the online filing
option. For GTAs navigating tax compliance, this
streamlined method provides better simplicity and
efficiency.
The declaration through Annexure V Form must be
56 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY
RECENT IMPORTANT
UPDATES AND CIRCULARS
UNDER GST
- by: CA BALKISHAN CHHABRA
completed by January 28, 2024, for Goods Transport
Agencies providing services and preferring to pay tax
under Forward Charge for the current fiscal year and
beyond. By selecting “YES” throughout the filing
process, customers are sent to the Annexure V Form,
allowing for a smooth transition to the Forward Charge
mechanism. Those who are not engaged in delivering
GTA services or wish to pay tax under Reverse Charge
can, on the other hand, select “NO.”
Users can access the Annexure V Form by going to the
Dashboard and selecting Services > User Services > GTA
> Opting Forward Charge Payment via GTA (Annexure
V). This technique offers accessibility and clarity for
taxpayers using the online filing system. Further it is
informed that if the Annexure V was filed manually
within the specified due date for the FY 2023-24, he
need not to file it again on the portal for the FY 2024-25
or any succeeding FY. By utilizing the manual upload
facility, you can upload the legible copy of duly
acknowledged manually filed Annexure V for 2023-24,
with correct particulars.
GSTR-1 New Changes: Table 14 and Table 15 Added
in Form GSTR-1
GSTR-1 has been updated by Goods and Service Tax
Network (GSTN) for reporting transactions by E-
Commerce Operators whereby 2 new important tables
have been added.
The tables that have been added in GST Return are
Table 14 for reporting Supplies made through E-
Commerce Operators and Table 15 for reporting
Supplies U/s 9(5). Earlier, we had tables in Form GSTR-
3B for reporting these transactions, but there were no
specific tables in the GSTR-1 Form. Table in GSTR-3B
was Table 3.1.1 for reporting Details of supplies notified
under section 9(5) of the CGST Act, 2017 and

corresponding provision in IGST/UTGST/SGST Acts.
Now when the tables have been added in GSTR-1, same
will ensure that data is auto-populated in GSTR-3B from
GSTR-1.
Blocking the generation of E-Way Bill without e-
Invoice/IRN details for B2B and B2E transactions for
e-invoice enabled tax payers
E-Invoice has been operationalised since October
2020 for the taxpayers with Annual Aggregate Turn Over
(AATO) above Rs. 500 Crores and eventually in a phased
manner, e-Invoice generation is made mandatory for
taxpayers with AATO above Rs. 5 Crores. From day-one,
E-Invoice is seamlessly integrated with e-Way bill
system and accordingly e-Way bills are generated along
with e-Invoice. That is, during e-Invoice generation, if
the transportation details are sent, the e-Waybill is
automatically generated. Most of the tax payers are
generating the e-invoice along with the e-way bill.
In some of these cases, the invoice details entered
separately under e-Waybill and e-Invoice are not
matching with respect to the certain parameters. This is
leading in mismatch in the e- Waybill and e-Invoice
statements.
Hence, to avoid such situations, e-Waybill generation
will not be allowed without e-Invoice details from 1st
March 2024. This is applicable for e- invoice enabled tax
payers and for the transactions related to Supplies under
B2B and Exports. However, EWBs for other transactions
such as B2C and non-supplies will function as usual
without any change.
Advisory:
e-Waybill generation process will be incorporated
with appropriate checks for taxpayers (Suppliers)
eligible for e-Invoicing. In case of B2B and B2E
(Exports), direct e-Waybill generation without e-Invoice
will not be allowed for Suppliers eligible for e-Invoicing.
T h i s a p p l i e s t o t h e E - Wa y b i l l c a t e g o r i e s o f
Supply/Exports/SKD/CKD/Lots.
However, e-Waybill generation for transactions
related to B2C and other non-Supplies will be allowed as
usual. Similarly, for the E-Way Bills generated by
transporter, similar check would be enforced on the
Supplier GSTIN. Other operations such as Part-B
updating, transporter Id updating, etc. will continue as
usual without any change.
All taxpayers and transporters are requested to make
necessary changes in their system so that they can adapt
to the changes from 1st March 2024.
APPAREL | GST UPDATE
Appeal Amnesty Schemes to provide relief to
taxpayers:
Amnesty Scheme for filing of appeals against demand
orders in cases where appeal could not be filed within
the allowable time period: The Council has
recommended providing an amnesty scheme for taxable
persons, who could not file an appeal under section 107
of the CGST Act, 2017 against the demand order passed
on or before the 31st day of March, 2023, or whose
appeal against the said order was rejected solely on the
grounds that the said appeal was not filed within the
time period specified in sub-section (1) of section 107. In
all such cases, filing of appeal by the taxpayers will be
allowed against such orders upto 31st January 2024,
subject to the condition of payment of an amount of
predeposit of 12.5% of the tax under dispute, out of
which at least 20% (i.e. 2.5% of the tax under dispute)
should be debited from Electronic Cash Ledger. This will
facilitate many taxpayers, who could not file appeal in
the past within the specified time period.
Recent important GST- Judicial Precedents
HIGH COURT OF CALCUTTA in respect of Suresh
Kumar Chaudhary Vs Assistant Commissioner [2024]
dismissed the writ petition on the ground that Appellant
authority was well justified in dismissing the appeal of
the Assessee as the registration was obtained by
uploading forged electricity payment receipt and rental
agreement. Therefore, there was no ground to interfere
in the instant writ petition.
HIGH COURT OF Rajasthan in respect of Baba Super
Minerals (P.) Ltd. Vs Union of India held that in case
amount of CGST, SGST and IGST has been refunded to
assessee beyond 60 days, then respondent authorities
would make payment of amount of interest to the
assessee in terms of section 56, calculating the period of
60 days from the date of completing application.
HIGH COURT OF Calcutta in respect of Suchita
M i l l e n i u m P r o j e c t s ( P. ) L t d V s A s s i s t a n t
Commissioner of CGST & CE held that where claim for
refund of unutilized ITC was rejected on the ground not
specifically mentioned in the Show Cause Notice RFD-
08, rejection of claim for refund on said ground was in
violation of principles of natural justice and, thus,
matter was to be remanded back for fresh consideration.
[The author is Senior Partner in M/s. CHHABRA B K &
ASSOCIATES (Delhi / NCR)]. ◘
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY / 57
 APPAREL | NOTIFICATIONS

NOTIFICATIONS
SUB – Extension of RoSCTL Scheme till 31st March 2026
Ministry of Textiles vide Notification No. 251947 dated 08.02.2024, has extended the Rebate of State
and Central Taxes and Levies scheme (RoSCTL Scheme) for export of Apparel/Garments and Made-ups for a
period of 2 years, i.e. up to 31st March 2026.

Detailed notification can be accessed at Ministry of Commerce

& Industry website.
58 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY

India ranks 38 out of 139 countries
on World Bank's Logistics Performance
Index Report 2023; India’s rank has
improved by sixteen places from 54 in 2014
PM GatiShakti National Master Plan,
Unified Logistics Interface Platform and
Logistics Data Bank improve logistics
efficiency and reduce logistics costs
I n d i a’s l o g i s t i c s p e r f o r m a n c e h a s s e e n
remarkable improvements, as indicated by its
rank in the Logistics Performance Index (LPI)
Report by the World Bank. Through collaborative
efforts among various ministries and departments,
alongside the implementation of key policies and
initiatives, India is advancing towards enhancing its
competitiveness globally.
According to the World Bank's 'Logistics
Performance Index Report (2023): Connecting to
Compete 2023', India ranks 38 out of 139 countries.
India’s rank has improved by six places from 44 in
2018 and sixteen places from 54 in 2014.
An Inter-Ministerial dedicated team comprising of
Stakeholder Ministries/Departments has been
formed. These stakeholder Ministries/Departments
focus on targeted action plans with interventions
needed to improve logistics performance across all six
LPI parameters i.e. Customs, Infrastructure, Ease of
arranging shipments, Quality of logistics services,
Tracking and Tracing, and Timeliness. In addition,
National Committee for Trade Facilitation (NCTF) has
a three-tiered structure, constituting of a National
Committee on Trade Facilitation, a Steering
Committee, and Focused Working Groups (Outreach,
REPORT
Legislative Issues, Time Release Study, Infrastructure
Up-gradation, PGA regulation and procedure).
Concerning NTFAP 2020-23, 27 action points have
been identified under the working group on
infrastructure up gradation.
The Hon’ble Prime Minister launched the PM
GatiShakti National Master Plan for multimodal
connectivity on 13 October 2021 and National
Logistics Policy on 17th Sept. 2022, for improving
logistics efficiency and reducing logistics costs.
Digital reforms such as Unified Logistics Interface
Platform (ULIP) for ease of doing business and
Logistics Data Bank which has digitized track and
trace of 100% containerized EXIM cargo, are
presently operational. In addition, the line Ministries
are taking various measures, which include:
• Expansion of electrification of railway tracks by
MoR;
• Land Ports Authority of India (LPAI) has reduced
the average export and import release time through
interventions;
• NLP Marine, which is a single window interface
platform for port-related logistics operations, has
been launched by MoPSW. In addition, the automation
of weighbridges is being undertaken; to name a few
key initiatives.
This information has been provided by the Union
Minister of State for Commerce and Industry, Shri
Som Parkash in a written reply in the Lok Sabha. ◘
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | FEBRUARY / 59
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