Lok Sabha Question No. 3748 (UNSTARRED), answered on 2018-08-09
Subject: Indian Textiles
Ministry: TEXTILES
Asked by: ANOOP MISHRA

## LOK SABHA UNSTARRED QUESTION NO. 3748 TO BE ANSWERED ON 09/08/2018

## 'INDIAN TEXTILES'

## 3748.   SHRI ANOOP MISHRA:

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

- (a) the details of the steps taken to boost the production of indigenous Indian textiles in the country;
- (b) whether the Government has taken steps to boost promotion and sales of indigenous Indian textiles abroad; and
- (c) if so, the details thereof?

## उत्तर

## ANSWER वस्त्र राज्य मंरी (श्री अजय टम्टा)

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

- (a) to (c): In order to boost the production of Indian textiles in the country and to promote the sales of Indian textiles abroad, the Government has taken a large number of initiatives.  Some of the  major policy measures and schemes implemented by the Government are given below:-
- i. Enhanced Customs Duty to boost domestic manufacturing :  To boost indigenous production and Make in India, Government has increased Basic Customs Duty from 10% to 20% on 501 textile products under notifications dated 16 th July 2018 and 7 th August 2018.
- ii. Amended  Technology  Up-gradation  Fund  Scheme  (ATUFS): The  amended Scheme  was  launched  in  January  2016  with  an  outlay  of  Rs  17822  Crores  for technology upgradation of textiles industry with one time capital subsidy for eligible machinery.  The scheme has been designed to mobilize new investment of about Rs 95 000 cr and employment for 35 lakh persons by the year 2022.
- iii. PowerTex India: A comprehensive scheme for powerloom sector was launched in April,  2017  with  an  outlay  of  Rs.  487  crores  for  three  years.    This  scheme  has components relating to powerloom upgradation; infrastructure creation, concessional access to credit, etc. The scheme has been designed to attract investment of Rs. 1000 crores and employment to 10000 persons in the powerloom sector and will also result in higher returns to powerloom units.
- iv. National  Handloom  Development  Programme  (NHDP)  and  National  Handicrafts Development Programme (NHDP): These programmes aim at holistic development of handloom and handicrafts clusters through integrated approach. The strategic interventions under the programme include financial assistance for new upgraded looms and  accessories,  design  innovation,  product  and  infrastructure  development,    skill upgradation,  training,  setting  up  of  Mega  clusters  for  increasing  manufacturing  and exports, easy access to working capital through customized Mudra loans for weavers and artisans and direct marketing support to weavers and artisans.
- v. SAMARTH- The Scheme for Capacity Building in Textile Sector (SCBTS): A new scheme with an outlay  of  Rs  1300  crores    has  been  approved  recently  in    December, 2017 for providing employment oriented training to 10 lakh people in various segments in textiles including one lakh in traditional sectors, by March, 2020.
- vi. Silk  Samagra :  Government of India has been implementing a Central Sector Scheme 'Silk Samagra' for development of sericulture in the country with components such as Research & Development, Training, Transfer of Technology and I.T Initiatives, support to  seed  organisations,  coordination  and  market  development  and,  quality  certification Systems  (QCS)/  Export  Brand  Promotion  and  Technology  Upgradation.  R&D  efforts have also been initiated to evolve new products by blending silk with other fibres such as wool, coir, cotton etc., which have demand in international markets.
- vii. Scheme  for  Integrated  Textile  Park  (SITP): This  scheme  is  implemented  in  Public Private  Partnership  mode  to  attract  private  investments  in  developing  new  clusters  of textiles manufacturing. Government of India provides financial assistance up to 40% of the project within a ceiling of Rs 40 crores. 19 new projects were sanctioned  from 2014 onwards.
- viii. North East Region Textile Promotion Scheme (NERTPS): This scheme promotes textiles  industry  in  the  North  Eastern  Region  by  providing  infrastructure,  capacity building and marketing support to all segments of textile industry. The scheme has an outlay of Rs. 500 crores during 2017-18 to 2019-20. Under Sericulture, 24 projects have been approved covering Mulberry, Eri and Muga sectors in all North Eastern States.  The  total  cost  of  these  projects  is  Rs.  819.19  crores  with  a  Government  of India  share  of  Rs.  690.01  crores  for  implementation  from  2014-15  to  2018-19. Further, eight Apparel & Garment Centres have also been set up in the North East. Under this  Project  plug  and  play  Centres  (factories),  fully  equipped  with  industrial garmenting machineries have been set up in each of the NE States and Sikkim. Each Centre is designed to generate employment for 1200 persons.
- ix. Integrated  Wool  Development  Programme  (IWDP): Government  of  India  has recently approved IWDP for implementation during 2017-18 to 2019-20 after integrating and rationalization of various schemes for holistic growth of wool sector by providing

support to entire chain of wool sector from wool rearer to end consumer to increase the wool production as well as its quality.

- x. Jute  Sector :  A  project  Jute  ICARE  (Improved  Cultivation  and  Advanced  Retting Exercise)  was  introduced  in  2015  for  improving  productivity  and  quality  of  raw  jute through  carefully  designed  interventions.  The  project  has  benefitted  more  than  1.33 lakhs  farmers  in  various  states  in  the  country.  Under,  Jute  Packaging  Material  (JPM) Act, 1987; norms of 90 % reservation for packing of food grains and 20% for packing of sugar  in  the  Jute  bags  have  been  prescribed.  Further,  under  the  Incentive  Scheme  for Acquisition of Plants and Machinery (ISAPM) support is provided for modernization of Jute Industry and Jute Diversified Products Manufacturing Units.

## Support for Sales of Indian Textiles abroad:-

- i. The Export Promotion Councils (EPCs) work  in  close  co-operation  with  various organizations of the Government to promote the growth and export of their respective sectors viz. readymade garments, cotton, silk, jute, powerloom, handloom, handicrafts and carpets, in global markets.  EPCs participate and organize fairs and exhibitions and standalone shows in India & overseas markets to enhance exports and access new markets.
- ii. Special  Package  for  Textile  and  Apparel  sector: Rs  6000  crores  package  was launched in June 2016 to boost employment and export potential in the apparel and made  up  segments.  This  package  consists  of Remission  of  State Levies for garmenting and made-ups; additional production and employment linked subsidy of 10%  under  ATUFS  for  garmenting;  assistance  for  the  entire  12%  employers' contribution towards EPF; fixed term employment in garmenting, increasing overtime caps; and income tax concessions under section 80JJAA for the garmenting sector.
- iii. Merchandise Export for India Scheme (MEIS) : This scheme was introduced under Foreign Trade Policy 2015-2020to offset infrastructural inefficiencies and associated costs  involved  in  export  of  goods/products,  which  are  produced/manufactured  in India,  especially  those  having  high  export  intensity,  employment  potential  and  to enhance India's export competitiveness.

The percentage of rewards varies from product to product and is in the range of 25% for most items.  The Government has doubled rates for incentives under MEIS from 2% to 4% of value of exports for two subsectors of textiles industry- readymade garments and made-ups with from 01.11.2017 till 30.06.2018.

- iv. Interest rate subvention: Credit interest rate subvention for pre and post shipment was restored in 2015 for three years. The objective of this step is to provide financial assistance to the exporters against interest rates on loans from banks for the purposes like  purchase  of  raw  materials,  their  processing  and  converting  into  finished  goods and packaging them.

The rate of interest equalization is 3% per annum on pre shipment rupee export credit and post shipment rupee export credit. The scheme is available to all exports of MSME and 416 tariff lines (for 4 digit HS codes) including 94 textile and apparel lines.

- v. Market  Access  Initiative  (MAI): The  objective  of  scheme  is  to  promote  India's exports  on  a  sustained  basis.  The  scheme  is  formulated  on  product-focus  country approach to evolve specific market and specific product through market studies/survey.The following activities are eligible for financial assistance under the scheme:
2. o Marketing Projects Abroad
3. o Capacity Building
4. o Support for Statutory Compliances
5. o Studies
6. o Project Development
7. o Developing Foreign Trade Facilitation web Portal
8. o To support Cottage and handicrafts units

## vi. Textile India 2017:

The Ministry of Textiles organized a 3 day mega textile exhibition namely, Textiles India  2017  from  30 th June  to  2 nd July  2017  at  Mahatma  Mandir,  Gandhi  Nagar, Gujarat.  This  event  was  inaugurated  by  the  Hon'ble  Prime  Minister  on  30 th June 2017.  The  Principal  objective  of  organizing  the  said  mega  event  was  to  bring  all segments  of  the  Textiles  sector  under  one  umbrella  trade  event  and  showcase  the strength of the Indian Textiles sector to the world. This event witnessed participation of buyers from 105 countries, international delegates and representatives and artisans and weavers.

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