Lok Sabha Question No. 1872 (UNSTARRED), answered on 2016-11-28
Subject: Export of Khadi Products
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: RAOSAHEB PATIL DANVE

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 1872 TO BE ANSWERED ON 28.11.2016

## EXPORT OF KHADI PRODUCTS

## 1872.  SHRI RAOSAHEB DANVE PATIL:

Will  the  Minister  of  MICRO,  SMALL  AND  MEDIUM  ENTERPRISES  be  pleased  to state:

- (a) the quantum and value of Khadi products produced and exported during each of the last three years, country-wise;
- (b)  whether  there  has  been  a  decline  in  the  export  of  Khadi  products  during  the  said period, if so, the reasons therefor; and
- (c)  the  steps  taken/being  taken  by  the  Government  to  increase  the  export  of  Khadi products?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

(SHRI GIRIRAJ SINGH)

(a)& (b): Year-wise quantum and value of Khadi production and export during the last three years is given below:

| Year    |   Khadi Prod. (in Million sq.mtr) |   Khadi value (Rs. in crore) |   Export Value of Total KVI items (Rs. in Crore) |   Export value of Khadi &Textile Items (Rs. in lakh) |
|---------|-----------------------------------|------------------------------|--------------------------------------------------|------------------------------------------------------|
| 2013-14 |                             93.25 |                       811.08 |                                           114.58 |                                                28.44 |
| 2014-15 |                             95.19 |                       879.98 |                                           124.39 |                                               163.37 |
| 2015-16 |                             97.45 |                      1065    |                                           140.12 |                                              1765.78 |

Country-wise details of the Khadi products exported during 2013-14, 2014-15 and 2015-16 is placed at Annexure-I.

There is an increase in the export of Khadi products during the said period, as given in the table above.

(c): Ministry of MSME is taking several steps for promotion and introduction of Khadi & Village Industries products in international markets. Khadi and Village Industries Commission (KVIC) has obtained the status of Deemed Export Promotion Council (DEPC) from the Ministry of Commerce & Industry. 1064 Khadi and Village Industries Institutions and  Rural  Employment  Generation  Programme  (REGP)/Prime  Minister's  Employment Generation  Programme  (PMEGP)  units  have  taken  its  membership  to  enter  the  field  of export.  The  following  steps  have  been  taken  to  boost  the  export  of  Khadi  and  Village Industries products:

1. Assistance would be provided under the Market Promotion and Development Assistance (MPDA)  Scheme  to  the  eligible  Khadi  and  Village  Industries  (KVI)  Institutions  for participation in International Exhibitions/Trade Fairs held in foreign countries in order to showcase KVI products to foreign countries, access international buyers and sellers and forge business alliances, etc.

The eligible items for such participation and the scale of assistance would be as under:

| S.No.   | Eligible items   | Scale of assistance                                                                                                                                                                    |
|---------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| i)      | Space Rent       | For KVIs - 100% of the space rent subject to a maximum of Rs.1.00 lakh or actual rent paid, whichever is lower (for one representative from each participating enterprise)             |
| ii)     | Air Fare         | For KVIs - 100% of the Economy Class air fare subject to a maximum of Rs.1.50 lakh or actual fare paid, whichever is lower (for one representative from each participating enterprise) |

2. Participation in domestic international exhibitions at State and National levels wherein KVIs are allowed to participate and market their products.
3. Organizing Export promotion workshops.
4. KVIC has already registered more than 900 exporters under 'Deemed Export Promotion Council'.
5. Export  incentive  of  5%  of  Freight  On  Board  (FOB)  value  of  direct  export  of  Khadi products is provided to KVI institutions/units registered with KVIC. Besides, KVIC has also been focusing on quality participation in International Exhibitions and Buyer-Seller Meets abroad to tap new/emerging markets for Khadi products.
6. KVIC has applied to register 'Khadi' as a word mark and 'Khadi India' as a Trade mark in 27 classes for various products among 45 classes listed out in the IPR Act at National Level as well as has filed an online application for registering 'Khadi' as a trade mark under  International  bureau  in  European  Union  and  other  countries  under  16  different class.

## Annexure-I referred to in reply to part (a)&(b) of the Lok Sabha Unstarred Question No. 1872 for answer on 28.11.2016

## Country-wise and Product-wise Export of Khadi during 2013-14, 2014-15 & 2015-16

| Sl. No.   | Products                     | Export (Rs. in lakh)   | Countries                                             |
|-----------|------------------------------|------------------------|-------------------------------------------------------|
| 2013-14   | 2013-14                      | 2013-14                | 2013-14                                               |
| 1.        | Khadi (woolen Silk& Muslin)  | 2.61                   | Italy, Australia &Poland                              |
| 2.        | Textile based Handicraft     | 3.56                   | USA, &Japan                                           |
| 3.        | Charkha/puni                 | 2.12                   | USA, &Japan                                           |
| 4.        | Ready Made Garments          | 20.15                  | Kuwait, Oman, Canada, UK, Muscat and other countries. |
| Total     | Total                        | 28.44                  |                                                       |
| 2014-15   | 2014-15                      | 2014-15                | 2014-15                                               |
| 1.        | Khadi (Muslin, Woolen, Silk) | 64.89                  | Italy, Japan, Netherland, Israel &France              |
| 2.        | Readymade Garments& Others   | 84.48                  | Kuwait &Ghana                                         |
| 3.        | Rope Production              | 14.00                  | London, USA& France.                                  |
| Total     | Total                        | 163.37                 |                                                       |
| 2015-16   | 2015-16                      | 2015-16                | 2015-16                                               |
| 1.        | Khadi (woolen Silk& Muslin)  | 11.09                  | Italy, Australia &Poland                              |
| 2.        | Textile based Handicraft     | 1754.69                | USA, &Japan                                           |
| Total     | Total                        | 1765.78                |                                                       |