Lok Sabha Question No. 4084 (UNSTARRED), answered on 2017-08-10
Subject: FDI in Textile Sector
Ministry: TEXTILES
Asked by: RAGHAV LAKHANPAL

## FDI IN TEXTILE SECTOR

## 4084.   SHRI RAGHAV LAKHANPAL:

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

(a) the  details  of  Foreign  Direct  Investment  (FDI)  in  textile  sector  during  each  of  the last three years, location -wise and State-wise, including Rajasthan;

(b) the impact of FDI in the overall development of the textile sector;

(c) whether the Government has taken any measures to ensure that the benefits of FDI has reached the entire range of textile sectors from artisan/weavers/garment workers to the industrialists; and

(d) if so,  the details thereof?

## उत्तर ANSWER वस्त्र      मंरी (श्री

## MINISTER OF STATE FOR TEXTILES (SHRI AJAY TAMTA)

(a) & (b): The amount of the Foreign Direct Investment (FDI) made in the textile sector during each of the last three years, location-wise and Statewise, including Rajasthan, is given at Annexure-I.

FDI in Textile sector has been less than one percent of total FDI inflows in the Country as may be seen from Annexure-I. However, FDI facilitates flow of capital, technology, skill and best practices, and also ensures flow of indirect benefits such as enhanced production, exports and employment generation in the recipient country.

(c) & (d): Yes  Madam.  The  Government  provides  for  100%  FDI  under  the  automatic route in the textile sector without any prior approval from the Government or RBI. As far as retail segment is concerned, the Government has ensured that the interest of the domestic and traditional industries encompassing craftsman, weavers etc is protected by ensuring investment in backward infrastructure besides earmarking of 30% procurement from MSME units by the investor.

## Annexure-I

## FDI equity inflows for last three years for Textile Sector( in US$ Millions)

| Sl No   | Regional Offices of RBI   | States Covered                                | 2014-15 Apr-Mar   | 2015-16 Apr-Mar   | 2016-17 Apr-Mar   |
|---------|---------------------------|-----------------------------------------------|-------------------|-------------------|-------------------|
| 1       | HYDERABAD                 | ANDHRA PRADESH                                | 0.28              | 1.37              | 1.55              |
| 2       | PATNA                     | BIHAR, JHARKHAND                              | 0.02              | 0.00              | 0.00              |
| 3       | AHMEDABAD                 | GUJARAT                                       | 7.77              | 39.33             | 7.27              |
| 4       | BANGALORE                 | KARNATAKA                                     | 0.30              | 32.21             | 9.08              |
| 5       | KOCHI                     | KERALA, LAKSHADWEEP                           | 0.00              | 0.24              | 3.60              |
| 6       | BHOPAL                    | MADHYAPRADESH, CHATTISGARH                    | 0.00              | 0.00              | 0.04              |
| 7       | MUMBAI                    | MAHARASHTRA, DADRA&NAGAR HAVELI,DAMAN& DIU    | 56.59             | 62.95             | 436.17            |
| 8       | BHUBANESHWAR              | ORISSA                                        | 0.00              | 0.00              | 0.00              |
| 9       | JAIPUR                    | RAJASTHAN                                     | 0.61              | 0.00              | 0.26              |
| 10      | CHENNAI                   | TAMIL NADU, PONDICHERRY                       | 71.45             | 3.45              | 7.41              |
| 11      | KANPUR                    | UTTAR PRADESH, UTTRANCHAL                     | 0.43              | 0.36              | 5.05              |
| 12      | KOLKATA                   | WEST BENGAL, SIKKIM, ANDAMAN &NICOBAR ISLANDS | 0.87              | 11.14             | 0.61              |
| 13      | CHANDIGARH                | CHANDIGARH, PUNJAB, HARYANA, HIMACHAL PRADESH | 1.85              | 0.73              | 0.00              |
| 14      | NEW DELHI                 | DELHI, PART OF UP AND HARYANA                 | 46.57             | 54.37             | 85.99             |
| 15      | PANAJI                    | GOA                                           | 0.40              | 4.83              | 0.00              |
| 16      | REGION NOT INDICATED      | REGION NOT INDICATED                          | 10.30             | 19.15             | 61.91             |
|         |                           | Grand Total (Textiles)                        | 197.42            | 230.13            | 618.95            |
|         |                           | Grand Total (All)                             |                   |                   | 332112.38         |
|         |                           | %age                                          |                   |                   | 0.74%             |

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