Lok Sabha Question No. 296 (STARRED), answered on 2018-03-15
Subject: Export of Textiles and Apparel
Ministry: TEXTILES
Asked by: PRITAM GOPINATH MUNDE, ANANDRAO  ADSUL

## LOK SABHA STARRED QUESTION NO.*296 TO BE ANSWERED ON 15.03.2018

## EXPORT OF TEXTILES AND APPAREL

## *296. DR. PRITAM GOPINATH MUNDE: SHRI ANANDRAO ADSUL:

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

- (a) whether  export  of  textiles  and  apparel  has  been  falling  every  month despite the Government's efforts to give the segment a boost, if so, the details thereof and the reasons therefor;
- (b) whether  the  data  compiled  by  the  Confederation  of  Indian  Textile Industry (CITI) showed a sharp decline in the export of textiles and apparel in 2017 as compared to the previous year and if so, the facts in this regard;
- (c) whether  rupee  appreciation  and  preferential  treatment  given  to  Least Developed Countries (LDCs) are responsible for falling export of textiles and apparel and if so, the facts in this regard;
- (d) whether  there  is  a  need  to  ease  the  refund  of  Integrated  Goods  and Services  Tax  (IGST)  and  on  Return  of  State  Levies  (ROSL)  and  if  so,  the steps taken by the Government in this regard; and
- (e) whether the industry needs immediate relief in the form of a minimum two per cent on the Merchandise Export from India Scheme on cotton yarn and a ROSL package for fabric and cotton yarn to retain competitiveness in the  global  market,  if  so,  the  details  thereof  and  the  measures  taken  by  the Government in this regard?

## उत्तर

## ANSWER

## वस्त्र मंरी ( )

MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

- (a) to (e): A statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  THE  LOK  SABHA  STARRED QUESTION No.*296 for 15.03.2018 REGARDING EXPORT OF TEXTILES AND APPAREL ASKED BY DR. PRITAM GOPINATH MUNDE: SHRI ANANDRAO ADSUL.

- (a): Exports  of  textiles  and  apparel  tend  to  fluctuate  in  the  course  of  a  year  due  to seasonality in demand. However owing to Government efforts, textiles and apparel exports have increased from US$ 28.8 bn during Apr'16-Jan'17 to US$ 29.4 bn during Apr'17Jan'18.
- (b): Directorate  General  of  Commercial  Intelligence  and  Statistics  (DGCIS)  is  the nodal agency for compiling data on exports and imports under the Ministry of Commerce &  Industry.    As  per  DGCIS  data,  exports  of  textile  and  apparel  have  increased  from US$ 35.5 bn in 2016 to US$ 37.3 bn in 2017.
- (c): Rupee  has  appreciated  by  4.2%  to  64.4  Rs/USD  during  Apr'17-Jan'18  from 67.2  Rs/USD  during  Apr'16-Jan'17  thereby  devaluing  exports.  It  is  true  that  Indian exporters face higher tariff of 9.7% in key export markets such as EU as compared to zero duty given to competing nations like Bangladesh, Pakistan, Sri Lanka and Turkey.
- (d): To ease the refund of  Integrated Goods & Service Tax (IGST), Government has taken several steps.    IGST  refund claims  are  being  closely  monitored  on  daily  basis  by field formations and print advertisements and outreach programmes have been carried out for  exporter  awareness.    Common  errors  and  solutions  thereof  have  been  highlighted through  a  circular  No.42/2017-Customs  dated  7.11.2017.    In  order  to  ensure  smooth operation, custom houses have opened a dedicated cell for purpose of facilitating refund cases.
- (e): Government has enhanced the rates of Merchandise Exports from  India Scheme (MEIS) from 2% to 4% for apparel and made-ups w.e.f. 1 st November 2017 for exports of value added commodities viz. apparel and made-ups which have higher potential to boost employment.  Currently,  cotton  yarn  is  not  covered  under  MEIS  and  fabric  segment  is provided 2% benefit under MEIS. Intermediate products such as fibre, yarn and fabric in the  textile  value  chain  are  being  strengthened  and  made  competitive  through  various schemes, inter alia Powertex for fabric segment, Amended Technology Upgradation Fund Scheme  (ATUFS)  for  all  segments  except  spinning  and  Scheme  for  Integrated  Textile Parks (SITP) for all segments.

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