Shaktivel Returns to FIEO Presidency, Asks Govt to Speed Up Incentive Disbursal and Logistics Issues in AGM on 20 Sept

At the outset, I would like to thank and express my gratitude to my illustrious predecessor, Mr Sharad Kumar Saraf who not only added new feathers in the FIEO’s cap but has also left the Federation in a healthy financial state.

Friends, my priority, from day one, has been on export promotion and I would like to showcase India’s products and services to every corner of the world. We will be focusing on new products and markets for diversification and will set up a vibrant virtual platform for the benefits of MSMEs. My vision is to make exports a national priority in collaboration with all the stakeholders. FIEO, under my leadership, would also work shoulder-to-shoulder with the Government to meet this objective.

I, along with our DG&CEO, also called upon the Hon’ble Union Minister for Commerce & Industry, Textiles and Consumer Affairs, Food and Public Distribution, Piyush Goyal on July 29, 2021 at New Delhi and complimented him for the spectacular growth exhibited by exports in the first quarter of 2021-22 despite numerous supply side constraints. The Minister during the meeting said that we are committed to achieving the target of USD 400 billion of merchandise exports in FY 2021-22. Deliberating on the issues related to the exports sector, I reiterated that the order booking position is extremely encouraging till October, 2021 but many exporters are not in a position to take further contracts due to erosion of liquidity and uncertainties on the policy front. The shortage of containers, frequent shutouts by the shipping lines and exorbitant freight rates are having a dampening effect on the exports. During my intervention at the meeting, I also put forward a host of other key issues for the consideration of the Hon’ble Minister.

Friends, in my interaction with the Hon’ble Chief Minister of Tamil Nadu, Thiru M K Stalin on July 27, 2021 at Chennai, I appealed to the Tamil Nadu Government to formulate a policy to promote exports from the state, especially focusing on Agri and Food processing, MSMEs, Aerospace and Defence, apart from traditionally strong and thriving sectors.

Friends, I also met the Hon’ble Industries Minister of Tamil Nadu and deliberated on issues pertaining to forthcoming State Budget and the need for State Export Promotion Policy.

I also met the Hon’ble Union MoS for Fisheries, Animal Husbandry & Dairying and Information & Broadcasting, and discussed the challenges faced by the marine sector including shortage of reefer containers, hike in freight rate and increase in the anti-dumping duty by the US.

The Hon'ble Prime Minister's address and engagement with exporters have drawn a road map for exports. We reiterate our commitment to reach the milestone of US$ 400 Bn of exports in the current financial year and US$ 1000 Bn by 2027. Thereafter, the Federation submitted its memorandum on the basis of suggestions received from the board members to the Hon’ble Prime Minister on 10^th August, 2021 requesting to intervene in the issues of:-

- Pending claims of exporters for MEIS, SEIS, RoDTEP, RoSCTL, TMA for early release;

- Export policy of raw material may be rationalized to strike a balance between exports and domestic requirement;

- Bank may automatically enhance the existing working capital requirement by 20-25%;

- The benefit of ECLGS 1.0 and 2.0 should be extended to those who have got loan sanctioned after February, 2020 and similarly cap of Rs.500 crore in ECLGS 2.0 may be removed with condition that the maximum assistance to be limited to 20% or Rs.100 Cr, whichever is lower;

- Factoring facilities should be extended in India with institutions like ECGC etc.

- The problem of transport and logistics should be removed by regulating movement of empty containers from India; Encourage foreign shipping lines to bring empty containers from overseas destinations; The detained containers cargo to be offloaded in public warehouses and added to supply.

- The Federation also highlighted the skyrocketed increase in freight rates between 300% to 350% and to some destinations like South America and West Africa, it is over 500%. It was suggested that freight subsidy may be given till freight charges normalize;

- Large ships may be encouraged to call on some Indian ports so that the backlog is reduced; and the Shipping Corporation of India may be asked to take a few ships on lease for sailing to our major exports/imports destinations.

Friends, our persistent and continuous sensitization to policy makers has yielded fruitful results. Government has recently announced the much awaited RoDTEP and RoCSTL rates.

The government’s announcement of releasing Rs 56,027 crores to disburse all pending export claims including MEIS, SEIS, RoSL, RoSCTL, other scrip-based schemes, relating to earlier policies, and the remission support for RoDTEP and RoSCTL for exports made in the 4^th quarter of FY 20-21 has been possible due to proactive and positive approach by FIEO. The budgetary allocation will help the export sector in meeting the liquidity concerns and maintaining cash flow thereby further facilitating in addressing the export demand in the international market.

Friends, the recent announcement of PLI for MMF and Technical Textiles will be the Game Changer for the Indian Textiles Industry. FIEO thanked the Hon'ble Prime Minister, Commerce & Industry and Textiles Minister and Finance Minister to address the major concerns of the garment exporters by encouraging domestic manufacturing of man-made fabrics which hitherto is being imported and thus would add to domestic value addition with attendant benefits in employment.

Friends, I urged the Government to also extend RoDTEP benefits from 01^st January, 2021 to Advance Authorisation/DFIA holders, EOU and SEZ units. I have also pleaded for coverage of various sectors such as Pharma, Organic & Inorganic chemicals, Article of Iron & Steel and Iron & Steel under RoDTEP immediately with effect from 1^st January, 2021.

Friends, continuous growth in exports for the past 6 months not only augurs well for the economy but goes to show the resilience of exports. The trade data for August, 2021 showing an impressive growth of 45 percent with exports touching USD 33.28 billion. The continuous growth also yet again reiterates the commitment and hard work of the exporting community.

Friends, I, accompanied by the Director General & CEO, called upon the Union Minister for Ports, Shipping & Waterways and Ayush, Mr Sarbanand Sonowal in New Delhi on August 17, 2021. During our discussion with the Minister, I raised various key issues related to shipping for the growth of exports from the country.

Friends, over the last few years, FIEO has carved a position in the area of developing export strategy of various States and has been a preferred choice of the Government for such studies. The Department of Commerce continued to entrust FIEO with the task of drafting the export policy, export strategy of various States and Union Territories. It has now entrusted FIEO with the task of undertaking study of various districts for the development of districts as export hubs. In addition to export studies, FIEO also completed the study of Logistics Efficiency at ten ports which was entrusted by the Logistics Division. In fact, FIEO has also been entrusted to develop a logistics dashboard for DoC which is at an advanced stage of completion. Under the DGFT’s “District as Export Hub” initiative, FIEO completed study of five Districts Imphal, Jammu, Ramanagara, Solapur and Bhubaneshwar. DGFT also entrusted FIEO to prepare study in respect of 20 additional Districts which are being done and reports in respect of 13 districts have already been submitted.

Friends, I am happy to inform you that FIEO has started exhibitions abroad in physical mode after almost 18 months since the Covid-19 pandemic. Recently, FIEO participated in the 13^th Edition of Paper Middle East exhibition at Cairo, Egypt with 30 companies and in another exhibition, it participated in the 20^th Edition of Armenia Expo at Yerevan, Armenia with 25 companies. Both the exhibitions organised in September, 2021 saw the Indian pavilions being inaugurated by the Indian Ambassador. The Ambassadors were also very happy to see the business people exhibiting after a long gap and desired to have more such business delegations.

Friends, FIEO has taken the novel initiative of connecting Exporters and logistic service providers through India’s first e-marketplace to facilitate Exim logistics. Portal by FIEO brings service seekers and service providers on a single platform to discuss and finalize business. It gives visibility of exporters’ logistics requirements of both ocean and air freight on Pan India basis to be fulfilled by Logistics Service Providers. The platform also gives large business outreach and networking opportunities to users. We hope that the Portal, which is due for inauguration shortly, will ease the life of exporters.

I would like to record my special thanks to the Vice President, Shri Khalid M Khan; Dr Ajay Sahai, Director General & CEO; Past Presidents; Regional Chairmen and Convenors of the Functional Committees for their support and guidance provided and expected to continue the same in my endeavours.

I would also like to express my sincere gratitude to our friends from the media who have always been proactive in the matter of exports.

No organization can progress, or even function efficiently, without the support of dedicated officers and staff. FIEO has been fortunate in having a committed workforce which has enabled it to serve the exporting community to the optimum, and built it up as a national institution. The joining of new and young officers to FIEO has provided a right mix of aggression and experience. I also put on record my thanks to all staff of FIEO in the Headquarter, and all the Regions and Chapter Offices for their all-out support, in this difficult time due to Covid, and making Federation’s activities and programs a great success.

The very fact that FIEO exceeded its membership revenue and increased its membership during Covid time, speaks volumes of its commitment and acceptance in the exporting community. Our employees are our biggest strength and they are the backbone of the Federation. I would urge them to serve objectively with dedication and commitment.