Lok Sabha Question No. 5359 (UNSTARRED), answered on 2017-04-06
Subject: Competition with Chinese Textile Products
Ministry: TEXTILES
Asked by: ADVOCATE NARENDRA KESHAV SAWAIKAR

## LOK SABHA UNSTARRED QUESTION NO.5359 TO BE ANSWERED ON 06.04.2017

## COMPETITION WITH CHINESE TEXTILE PRODUCTS

## 5359.   ADV. NARENDRA KESHAV SAWAIKAR:

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

- (a) whether it is a fact that the textile and apparel industry  is facing a stiff competition from China and if so, the details thereof;
- (b) whether  the  Government  have  finalised  any  action  plan  to  remove  the bottlenecks  in  the  textile  industry  with  a  view  to  compete  with  the Chinese industry; and
- (c) if so, the details thereof and the time by which the textile industry likely to be in a position to achieve the desired results?

## उत्तर

## ANSWER

## वस्त्र मंरी ( श्री अज )

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

(a): Yes,  India  faces  competition  from  China  in  global  textiles  and  apparel exports. China is the single largest exporters of textiles. The export of textiles and  clothing  from  India,  China  vis-à-vis  world  during  the  year  2015  is  as under:-

| (In US dollar at current prices (Millions)   | (In US dollar at current prices (Millions)   | (In US dollar at current prices (Millions)   | (In US dollar at current prices (Millions)   | (In US dollar at current prices (Millions)   | (In US dollar at current prices (Millions)   |
|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|
| Textile                                      | Textile                                      | Clothing                                     | Clothing                                     | Combined (Textile clothing)                  | Combined (Textile clothing)                  |
| World (all countries)                        | 290519                                       | World (all countries)                        | 453894                                       | World (all countries)                        | 744413                                       |
| China                                        | 108817                                       | China                                        | 174082                                       | China                                        | 282899                                       |
| India                                        | 17289                                        | India                                        | 18254                                        | India                                        | 35543                                        |
| Source: WTO                                  | Source: WTO                                  | Source: WTO                                  | Source: WTO                                  | Source: WTO                                  | Source: WTO                                  |

From the above, it may be observed that China shares almost 38% of the world exports, whereas India's share is 4.77% only.

(b)  &  (c): Yes  Madam.    In  order  to  give  boost  to  the  textile  industry, Government has introduced special packages for apparel and made-ups sector in June,  2016  and  December,  2016  respectively  which  include  schemes  like Amended  Technology  Upgradation  Fund  Scheme  (ATUFS),  Pradhan  Mantri Paridhan  Rojgar  Protsahan  Yojna  (PMPRPY),  Scheme  of  Rebate  of  State Levies (RoSL) on export of garments etc. Besides, with a view to modernize textile  industry,  increase  production and global  competitiveness schemes such as Schemes for Technical textiles, Scheme for Integrated Textile Parks (SITP), Integrated Skill Development Scheme etc. are also being run by the Government.

Apart from the steps taken by the  Government mentioned above, the Government has taken following initiatives to augment the textile exports:-

- i. MEIS Scheme under new Foreign Trade Policy 2015-20.
- ii. Restoring Interest  rate  subvention  for  pre  and  post  shipment  credit for the textile sector,
- iii. Expanding  the  scope  of  Merchandise  Export  from  India  Scheme (MEIS) since 29.10.2015 to 110 new tariff lines and increase rates or country coverage or both for 2228 existing tariff lines.
- iv. Increased Duty Drawback rates for some textile articles.
- v. Market Access Initiative (MAI) Scheme.
- vi. Market Development Assistance (MDA) Scheme.
- vii. Duty Free import of trimmings, embellishments and other specified item under Export Performance Certificate Entitlement Scheme.

Improving competitiveness in global textiles and apparel exports is a continuous process. The Government has been keeping a constant track on the developments of the sector globally and has been working in tandem with the industry to enhance India's competitiveness.

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