Lok Sabha Question No. 4784 (UNSTARRED), answered on 2016-12-15
Subject: Achievements of Textile Sector
Ministry: TEXTILES
Asked by: SHIVAJI ADHALRAO PATIL, VINAYAK BHAURAO RAUT, Shrirang Appa Barne, DHARMENDRA YADAV, ANANDRAO  ADSUL, SHRIKANT EKNATH SHINDE

## ACHIEVEMENTS OF TEXTILE SECTOR

4784. SHRI ADHALRAO PATIL SHIVAJIRAO: SHRI VINAYAK BHAURAO RAUT: SHRI SHRIRANG APPA BARNE: SHRI DHARMENDRA YADAV: SHRI ANANDRAO ADSUL: DR. SHRIKANT EKNATH SHINDE:

Will the Minister of TEXTILES वस्त्र मंरी be pleased to state:

(a) whether  a  report  released  by  the  Ministry  of  Textiles  has  stated  that  the  Central  Value  Added  Tax (CENVAT) route will prepare the textile and apparel industry for Goods and Services Tax (GST) when it comes into force and if so, the facts of the matter reported therein;

- (b) the percentage of textile sector in total manufacturing, Gross Domestic Product (GDP) and export earnings of the country along with its rank as employment provider in the country;
- (c) whether  the  Union  Government  has  released  reports  on  achievements  made  in  the  textile  sector  under Make in India initiative and if so, the achievements and contribution of textile sector thereon;
- (d) whether the textiles industry is facing hardships due to demonetization and if so, whether the textile mills have urged the Union Government to provide a one year moratorium of repayment of loans and interests and if so, the response of the Union Government thereto; and
- (e) whether the Government is providing incentives to encourage textile manufacturers and farmers for raw material and if so, the details thereof?

## उत्तर

## ANSWER

## वस्त्र मंरी ( )

## MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

- (a): Government commissioned a study on 'Implication of GST for Indian Sector'. The report  recommends that one of the taxes to be subsumed into GST may be CENVAT.
- (b): Textile sector contributes to 2% of India's GDP. The share of export of textile items in total exports from India in 2015-16 was 15% (in value terms US $). The textile is the second largest provider of employment after agriculture. 45 million people are directly employed in the textile industry.
- (c): Union Government has released report on achievements made in the textiles sector under Make in India initiative  on  24 th November,  2016.    Some  of  the  major  achievements  and  contribution  of  textiles  sector  are  at Annexure.
- (d): Government has received representations  from the Textile Industry to provide one  year  moratorium for repayment of loans and interests. To respond to the situation, Government has launched a campaign to promote digital payment in the mission mode.
- (e): In order to increase the production of raw materials in the country, Government is implementing various policy initiatives and schemes. The Cotton Development Programme focuses on cropping system approach under National Food Security Mission (NFSM) in 15 major cotton growing states with an aim to increase production & productivity.  Government  announces  Minimum  Support  Price  (MSP)  to  protect  the  interest  of  cotton  and  jute farmers  to  avoid  distress  sales.  The  Cotton  Corporation  of  India  and  the  Jute  Corporation  of  India  conduct procurement  of  cotton  and  jute  from  farmers  respectively  whenever  prices  fall  below  the  MSP.  Government implements  various  schemes  to  promote  production  of  all  the  raw  materials  for  textile  industry  which  includes promotion of R&D, technology upgradation, skill upgradation, infrastructure support towards rearing sheds, testing labs, etc.  Government is also providing support for the production of raw jute under I-CARE project.

## Annexure

- i. FDI  Inflow :  Between  March,  2014  and  March,  2016,  the  FDI  equity  inflow  in  the textiles sector added upto US Dollar 427.55 million.  FDI equity inflow grew by 16% in financial year 2015-16.
- ii. Exports :  In  2015-16  the  share  of  textiles  and  apparel  in  total  exports  increased  to 15% from 13% in 2013-14.
- iii. More than 5.3 lakh persons trained in last two years under Integrated Skill Development Scheme out of which 81% have been placed including 79% of the trained women.
- iv. 19 new Textiles Park have been sanctioned over last two years with potential to facilitate investment upto Rs. 300 crores and employment to 60,000 people.
- v. 200 new production units have been set up in existing textile parks in last two years with the  fresh  investment  of  Rs.  1500  crores  and  additional  employment  generation  of 11,000 persons.
- vi. Sanction of seven new Common Effluent Treatment Plants with Zero Liquid Discharge technology in last two years covering 3000 SME units.
- vii. Eight  Apparel  and  Garment  making  Centers  set  up  in  all  NER  States  and  Sikkim  for promoting garment manufacturing in NER.
- viii. Launch of Indian Handloom Brand for providing brand value for handloom products.
- ix. Launch  of  Indian  Handloom  Website  as  a  one  stop  platform  for  all  services  to consumers, bulk buyers and handloom producers.
- x. A Special Package of Rs. 6,000 crores was launched for garmenting sector with the aim of creating one crore jobs in next three years and to attract investment worth US Dollar 11 billion.

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