Lok Sabha Question No. 337 (STARRED), answered on 2018-03-19
Subject: Use of Labour Intensive Technology
Ministry: COMMERCE AND INDUSTRY
Asked by: RAM KUMAR SHARMA KUSHWAHA

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

STARRED QUESTION NO. 337. TO BE ANSWERED ON MONDAY, THE 19 TH  MARCH, 2018.

## USE OF LABOUR INTENSIVE TECHNOLOGY

## *337.  SHRI RAM KUMAR SHARMA:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज् यवव द्योग म त्री

- (a) whether till now only such industries have been developed and expanded in the country in which capital intensive technology has been used;
- (b) if so, the details thereof and the reaction of the Government thereto;
- (c) whether the industries which give priority to use of labour intensive technology where opportunities of maximum new employment are created, are needed to be developed and expanded in the country; and
- (d) if so, the details thereof along with the reaction of the Government thereto?

## ANSWER

वाणिज् यवव द्योग म त्री(श्री सुरेशप्रभु) THE MINISTER OF COMMERCE & INDUSTRY (SHRI SURESH PRABHU)

- (a) to (d): A Statement is laid on the Table of the House.

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STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  THE  LOK SABHA STARRED QUESTION NO. 337 FOR ANSWER ON MONDAY, THE 19 TH MARCH, 2018.

- (a): No, Madam.
- (b): Does not arise.
- (c): Yes, Madam.
- (d): Government has taken several initiatives to promote labour intensive industries in the country. Some of the initiatives are given below:

## (i) Textile Sector

-  Government has announced a booster package of Rs 6000 crores for the textile sector.
-  Scheme for Rebate of State Levies (RoSL) to rebate the incidence of state levies  on  export  of  garments  and  made-ups  to  make  exports  more competitive in the global market.
-  Additionally,  interest  subvention  @  3%  per  annum  for  pre  and  post shipment credit to exporters of garments and made ups.
-  Enhancement of rates from 2% to 4% under the Merchandise Exports from India Scheme (MEIS) and Market Access Initiative (MAI) Scheme.
-  Scheme for Capacity Building in Textile Sector (SCBTS) for skill development in the entire textile value chain.
-  Amended Technology Upgradation Funds Scheme (ATUFS) for technology  upgradation  and  Scheme  for  Integrated  Textiles  Park  (SITP) for development of infrastructure.
-  Scheme for development of Handloom sector such as  National Handloom Development Programme (NHDP), Yarn Supply Scheme (YSS), Handloom  Comprehensive  Weavers  Welfare  Scheme  (HCWWS)  and Comprehensive Handloom Cluster Development Scheme (CHCDS)

## (ii) Leather Sector

-  Special  package  of  Rs.  2600  Crore  over  the  three  financial  years  from 2017-18 to 2019-20 for implementation of Central Sector Scheme "Indian Footwear, Leather & Accessories Development Programme' for placement Linked Skill Development Training to unemployed persons; incentives for investment for  new  plant  and machinery;  modernization  of  existing  plant and machinery;  support  for  up-gradation/installation  of  Common  Effluent

Treatment  Plants  (CETPs);  brand  promotion;  and  providing  employer's contribution to Employees Provident Fund etc.

## (iii) Food Processing

-  Allocation  of    Rs.6,000  Crore  for  the  period  2016-20    under    'Pradhan Mantri Kisan Sampada  Yojana' (PMKSY)  for Mega  Food  Parks, Integrated  Cold  Chain  and  Value  Addition  Infrastructure,    Creation  / Expansion of Food Processing & Preservation Capacities,  Infrastructure for Agro-processing Clusters, Creation of Backward and Forward Linkages,  Food Safety and Quality Assurance Infrastructure  and Human Resources and Institutions.

## (iv) Gems & Jewellery

-  With a view to promote the Gems and Jewellery sector, Government has taken steps such as setting up of Common Facility Centres for gems and jewellery  sector;  amendment  of  wastage  and  value  addition  norms  for gems and jewellery items; and providing financial assistance for participation  in  international  fairs,  organizing  buyer-seller  meets,  creation of export related infrastructure, etc. under  various schemes  of  the Department of Commerce.
-  The gems and jewellery sector have already set up world class modern and  technology  driven  jewellery  manufacturing  and  diamond  processing factories  in  Santacruz  Electronics  Export  Processing  Zone  (SEEPZ), Mumbai and Surat respectively. Gems and jewellery sector has also been effectively covered under Export Promotion Capital  Goods  (EPCG) scheme.

## (v) Micro, Small and Medium Enterprises (MSME)

-  Credit  Linked  Capital  Subsidy  Scheme  (CLCSS)  for  Technology  Upgradation  of  Micro  and  Small  Enterprises  with  an  objective  to  facilitate technology  up-gradation  in  Micro  and  Small  Enterprises  (MSEs)  by providing capital subsidy of 15 % (limited to maximum of Rs.15.00 lakhs) on  institutional  finance  availed  by  them  for  induction  of  well-established and improved technology in the specified 51 sub-sectors/products approved under the scheme.  Maximum limit of eligible loan for calculation of subsidy under the Scheme is Rs.100.00 lakhs.
- (vi)  The  Government  has  also  taken  following  steps  to  promote  employment generation:
- (a) A  new  scheme Pradhan  Mantri  Rojgar  Protsahan  Yojna has been  launched  in  the  year  2016-17  for  incentivizing  industry  for promoting employment generation where the Government will pay the    employer's  contribution  of  8.33%  under  Employee  Provident Scheme (EPS) made for the new employees. The Government has further  announced  in  the  General  Budget  2018-19,  that  it  will

contribute  12  per  cent  of  the  wages  of  the  new  employees  in  the EPF for all the sectors for next three years.

- (b) In  order  to  promote  skill  development,  Government  has  started Pradhan Mantri Kaushal Vikas Yojana (PMKVY ). The Ministry of Skill  Development  &  Entrepreneurship  (MSDE)  has  trained  more than one crore in 2017, out of 2.5 crores candidates under National Skills Qualification Framework (NSQF).
- (c) Government  has  also  implemented the  National  Career  Service Project providing a package of employment related services interalia  consisting  of  a  portal  (www.ncs.gov.in)  for  online  registration and posting of jobs for job-seekers.
- (d) Pradhan  Mantri  Mudra  Yojana  (PMMY) ,  a  scheme  to  finance income generating small business enterprises was launched on 08 April  2015.  The  scheme  has  huge  potential  to  generate  self employment. Under the scheme, over 11.39 crore loans have been extended for an amount of over Rs 5.09 lakh crore till 02.03.2018 since inception of the scheme.
- (e) 'Start-up  India '  is  intended  to  build  a  strong  eco-system  for nurturing  innovation  and  Start-ups  in  the  country.  Startup  India Action Plan was launched on January, 2016 to accelerate spreading awareness of the Startup movement. Since the launch of the initiative, significant progress has been made. A Fund of Funds of Rs. 10,000 cr, has been to set up to support venture funding in India.

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