Lok Sabha Question No. 816 (UNSTARRED), answered on 2019-02-07
Subject: Contribution of Textile Sector
Ministry: TEXTILES
Asked by: DHANANJAY BHIMRAO MAHADIK, HEENA VIJAYKUMAR GAVIT, VIJAYSINH MOHITE PATIL, RAJEEV SHANKARRAO SATAV, JAYAKUMAR JAYAVARDHAN, SUPRIYA SADANAND SULE

## LOK SABHA UNSTARRED QUESTION NO.816 TO BE ANSWERED ON 07.02.2019

## Contribution of Textile Sector

816.     SHRI DHANANJAY MAHADIK: DR. HEENA VIJAYKUMNAR GAVIT: SHRI MOHITE PATIL VIJAYSINH SHANKARRAO: SHRI SATAV RAJEEV: DR. J. JAYAVARDHAN: SHRIMATI SUPRIYA SULE:

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

- (a) the  contribution  of  textile  industry  in  GDP  in  terms  of  percentage  of  industrial  production  and employment  generation  during  the  last  three  year  and  the  current  year  along  with  efforts  made  by  the Government to increase the employment in the textile industry;
- (b) the steps taken by the Government to increase investment/expansion of textile industry including modernization of weaving and processing sector;
- (c) whether the textile industry is facing problems due to global slowdown and growth of the sector has declined during the last two years and the current year;
- (d) if so, the details thereof along with the steps being taken by the Government to increase the shares of  Indian textile products globally and success achieved by the Government so far; and
- (e) the contribution of Indian textile industry in terms of global textile production along with the steps taken by the Government to enhance the production and competitiveness of Indian textile industry?

## उत्तर

## ANSWER

वस्त्र राज्य मंरी  (श्री अजय टम्टा)

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

- (a) The share of textiles sector and manufacturing sector to GDP during 2013-14 to 2016-17 as well as share of employment  generation  in  the  textiles  and wearing  apparel  sector to the total manufacturing sector are given below:-

| Year    | Share of Textiles and total manufacturing to GDP atGVA   | Share of Textiles and total manufacturing to GDP atGVA   | Share of textiles to total manufacturing at GVA   |
|---------|----------------------------------------------------------|----------------------------------------------------------|---------------------------------------------------|
|         | Textiles                                                 | Manufacturing                                            |                                                   |
| 2013-14 | 2.16%                                                    | 18.08%                                                   | 11.92%                                            |
| 2014-15 | 2.33%                                                    | 17.14%                                                   | 13.60%                                            |
| 2015-16 | 2.22%                                                    | 17.84%                                                   | 12.43%                                            |
| 2016-17 | 2.36%                                                    | 18.21%                                                   | 12.65%                                            |

Source: National Accounts Statistics, 2015, 2016, 2017 & 2018.

| Year    | Number of persons employed in       | Number of persons employed in   | % age of employment in Textile Sector to total employment in manufacturing Sector   |
|---------|-------------------------------------|---------------------------------|-------------------------------------------------------------------------------------|
|         | Textiles and Wearing Apparel Sector | Total Manufacturi ng sector     |                                                                                     |
| 2013-14 | 24,74,903                           | 1,35,38,114                     | 18.28%                                                                              |
| 2014-15 | 25,26,610                           | 1,38,81,386                     | 18.20%                                                                              |
| 2015-16 | 26,48,238                           | 1,42,99,710                     | 18.52%                                                                              |
| 2016-17 | 26,94,280                           | 1,49,09,052                     | 18.07%                                                                              |

Source: Annual Survey of Industries.

Textile industry being one of the largest sources of employment generation in the country, the Government has been taking multi-pronged efforts for increasing investment/expansion of textile industry including modernization of weaving and processing sector. A special package has been launched in 2016 to boost investment, employment and exports in the garmenting and made-ups sector. Under the special package,  Government  is  providing  additional  production  linked  incentive  of  10%  under  the  Amended Technology Upgradation Fund Scheme (ATUFS) for generating additional employment in garment and made-up segments;  Pradhan Mantri Paridhan Rojgar Protsahan Yojana (PMPRPY) has been designed to incentivize employers in the apparel sector for generation of new employment. Apart from the above, the Government has been implementing skill development programme for enhancing employment potential of textile workers. Under the Integrated Skill Development Scheme (ISDS) which has been implemented from 20110-11 to 2017-18, 11.14 lakh persons were trained in various textiles value  chain  and  out of them, 8.43 lakh persons  were given placement in the textile sector. Further, the scheme which has been restructured as 'SAMARTH' and introduced from 2018 with an outlay of Rs.1,300 crore for a period of three years upto 2019-20 for providing skill training to youth in the textiles value chain (except spinning and weaving in the organized sector).

(b) Government has been taking various initiatives for increasing textile manufacturing by building the best-in-class manufacturing infrastructure, upgradation of technology, fostering innovation and enhancing skills  in  the  textile  sector.    These  include  Amended  Technology  Upgradation  Funds  Scheme  (ATUFS), PowerTex  India  Scheme  for  Powerloom  Sector  Development,  Scheme  of  Integrated  Textile  Parks, SAMARTH-  the  Scheme  for  Capacity  Building  in  textile  sector,  Silk  Samagra-  the  integrated  silk development scheme,  Integrated Processing Development Scheme (IPDS),  North Eastern Region Textile Promotion Scheme (NERTPS),  Incentive Scheme for Acquisition of Plants and Machinery (ISAPM) for Jute  Industry  and  Jute  Diversified  Products  Manufacturing  Units,  innovation  and  expansion  under Technology  Mission  on  Technical  Textiles-  for  Promoting  Usage  of  Agro  textiles,  Focus  Incubation Centre,  etc.

Furthermore,  Government  has  been  encouraging  and  supporting  the  traditional  handloom  and handicraft sectors by  implementing  key  programmes. For development  of handloom  sector, the Government is implementing National Handloom Development Programme (NHDP), Handloom Weavers' Comprehensive  Welfare  Scheme  (HWCWS),  Comprehensive  Handloom  Cluster  Development  Scheme (CHCDS) and Yarn Supply Scheme (YSS) for basic inputs, looms and accessories, design development, infrastructure development, marketing of handloom products etc. For the development of the Handicrafts sector, Government is implementing the National Handicraft Development Programme (NHDP) and the Comprehensive  Handicrafts  Cluster  Development  Scheme  (CHCDS)  for  providing  support  on  design, technology  upgradation,  infrastructure  development,  research  and  development,  market  support  etc.  to handicrafts clusters in the country.  These schemes include subsidies and incentives for the growth of the textile sector.

(c) to (e): Textile  Sector has been steadily growing during the period from  2015-16 to 2017-18 as per details of production of major textiles items and exports of textiles  given at Annexure-1 and Annexure-II respectively.   The share of textiles and clothing (T&C) in India's total exports stands at 13.05 % in 201718.   India has a share of 5% of the global trade in textiles and Apparel.   Apart from above mentioned various initiatives of the Government for modernization of textile industry to make it globally competitive, Government  has  been  encouraging/taking  steps  for  market  access  initiatives  such  as  organizing  and participation of mega textile exhibition and various outreach programmes, Buyer Seller Meets, etc. Under the special package, production and exports of garments and made-ups are   promoted with the following components:

- a. Production  incentives  through  A-TUFS  with  an  additional  subsidy  on  additional  production  and employment;
- b. PM ParidhanRozgarProtsahanYojana(PM PRPY) for providing additional 3.67% share of employer contribution in addition to PM RozgarProtsahanYojana(PMRPY) for all new employees enrolling in EPFO for the first three years;
- c. Rebate on State Levies for enhanced Duty Drawback on exports;
- d. Duty Drawback under All India Rate in Garmenting Sector under the Special Advance Authorisation Scheme
- e. Simplification of labour laws: Permisible 100 hrs of overtime per quarter, EPF contribution optional for employees earning less than Rs 15000 pm. Fixed term employment was introduced;
- f. Enhanced scope of section 80JJAA on Income Tax Act: Provision of 240 days reduced to 150 days

To promote domestic manufacturing, Government has recently increased the basic custom duty from 10% to 20% on import of MMF fabric, silk fabric, carpets, apparel and made-ups. Furthermore, the rates  under  Merchandise  Exports  from  India  Scheme  (MEIS)  have  been  enhanced  from  2%  to  4%  for apparel, 5% to 7% for made-ups, handloom and handicrafts w.e.f. 1st November 2017.

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Annexure-I Referred to part (a) of  Lok Sabha USQ No.816 for answer on  7.2.2019regarding 'Contribution of

## Textile Sector'

| Production of Man-made Fibre, Filament Yarn, Spun Yarn and Cloth (Figures in Millions)   | Production of Man-made Fibre, Filament Yarn, Spun Yarn and Cloth (Figures in Millions)   | Production of Man-made Fibre, Filament Yarn, Spun Yarn and Cloth (Figures in Millions)   | Production of Man-made Fibre, Filament Yarn, Spun Yarn and Cloth (Figures in Millions)   | Production of Man-made Fibre, Filament Yarn, Spun Yarn and Cloth (Figures in Millions)   | Production of Man-made Fibre, Filament Yarn, Spun Yarn and Cloth (Figures in Millions)   | Production of Man-made Fibre, Filament Yarn, Spun Yarn and Cloth (Figures in Millions)   | Production of Man-made Fibre, Filament Yarn, Spun Yarn and Cloth (Figures in Millions)   | Production of Man-made Fibre, Filament Yarn, Spun Yarn and Cloth (Figures in Millions)   |
|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|
|                                                                                          | Product\Period                                                                           | Units                                                                                    | 2015-16                                                                                  | 2016-17                                                                                  | 2017-18                                                                                  | 2018-19(p) (apr-Nov.)                                                                    | 2017- 18(p)(Apr.- Nov.)                                                                  | % Variation (Apr.- Nov.) 2018-19 over (Apr.- Nov.2017- 19                                |
| 1                                                                                        | Man-made Fibre                                                                           | Kg                                                                                       | 1347                                                                                     | 1364                                                                                     | 1319                                                                                     | 961                                                                                      | 903                                                                                      | 6.4                                                                                      |
| 2                                                                                        | Man-Made Filament Yarn                                                                   | Kg                                                                                       | 1164                                                                                     | 1159                                                                                     | 1187                                                                                     | 764                                                                                      | 795                                                                                      | -3.9                                                                                     |
| 3                                                                                        | Cotton Yarn                                                                              | Kg                                                                                       | 4138                                                                                     | 4055                                                                                     | 4064                                                                                     | 2821                                                                                     | 2699                                                                                     | 4.2                                                                                      |
| 4                                                                                        | Blended &100% Non- Cotton Yarn                                                           | Kg                                                                                       | 1527                                                                                     | 1604                                                                                     | 1616                                                                                     | 1122                                                                                     | 1085                                                                                     | 3.4                                                                                      |
| 5                                                                                        | Total(Spun Yarn)[3+4]                                                                    | Kg                                                                                       | 5665                                                                                     | 5659                                                                                     | 5680                                                                                     | 3934                                                                                     | 3784                                                                                     | 4.0                                                                                      |
| 6                                                                                        | Cloth(Mill Sector)                                                                       | Sq. mtr                                                                                  | 2315                                                                                     | 2264                                                                                     | 2157                                                                                     | 1359                                                                                     | 1454                                                                                     | -6.5                                                                                     |
| 7                                                                                        | Cloth(Decentralized Sector)                                                              | Sq. mtr                                                                                  | 62269                                                                                    | 61216                                                                                    | 64688                                                                                    | 44292                                                                                    | 42695                                                                                    | 3.7                                                                                      |
| 8                                                                                        | Total(Exc. Khadi, Wool, Silk)[6+7]                                                       | Sq. mtr                                                                                  | 64584                                                                                    | 63480                                                                                    | 66845                                                                                    | 45651                                                                                    | 44149                                                                                    | 3.4                                                                                      |

Source.TXC,Mumbai.    P. Provisional

Annexure-II Referred to part (a) of  Lok Sabha USQ No.816 for answer on  7.2.2019regarding 'Contribution of

## Textile Sector'

| India's Exports in Textiles and Apparel (T&A) in US million dollars   | India's Exports in Textiles and Apparel (T&A) in US million dollars   | India's Exports in Textiles and Apparel (T&A) in US million dollars   | India's Exports in Textiles and Apparel (T&A) in US million dollars   | India's Exports in Textiles and Apparel (T&A) in US million dollars   | India's Exports in Textiles and Apparel (T&A) in US million dollars   |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|
| Sl.No.                                                                | Item                                                                  | 2014-15                                                               | 2015-16                                                               | 2016-17                                                               | 2017-18                                                               |
| 1                                                                     | Readymade Garment                                                     | 16221.61                                                              | 16457.80                                                              | 17012.00                                                              | 16379.74                                                              |
| 2                                                                     | Cotton Textiles                                                       | 11753.61                                                              | 11148.64                                                              | 10429.00                                                              | 11202.39                                                              |
| 3                                                                     | Man-made textiles                                                     | 5826.62                                                               | 5162.04                                                               | 5152.00                                                               | 5413.17                                                               |
| 4                                                                     | Wool &Woolen textiles                                                 | 509.64                                                                | 459.25                                                                | 389.20                                                                | 355.85                                                                |
| 5                                                                     | Silk                                                                  | 446.91                                                                | 342.07                                                                | 219.10                                                                | 226.42                                                                |
| 6                                                                     | Handloom Product                                                      | 369.56                                                                | 368.52                                                                | 360.00                                                                | 355.92                                                                |
| 7                                                                     | Carpets                                                               | 1360.79                                                               | 1440.20                                                               | 1491.00                                                               | 1429.77                                                               |
| 8                                                                     | Jute                                                                  | 366.90                                                                | 312.53                                                                | 321.00                                                                | 349.89                                                                |
| 9                                                                     | Coir and Coir Manufacturers                                           | 285.15                                                                | 261.59                                                                | 265.00                                                                | 325.77                                                                |
| 10                                                                    | Total Textile &Clothing                                               | 37140.79                                                              | 35952.64                                                              | 35638.30                                                              | 36038.92                                                              |
| 11                                                                    | Handicrafts (Excl.Handmade Carpets)                                   | 3233.00                                                               | 3292.75                                                               | 3639.00                                                               | 3555.40                                                               |
| 12                                                                    | Total T&C including Handicrafts                                       | 40373.79                                                              | 39245.39                                                              | 39277.30                                                              | 39594.32                                                              |
| 13                                                                    | %Textile Export                                                       | 13.01%                                                                | 14.96%                                                                | 14.24%                                                                | 13.05%                                                                |
| 14                                                                    | India's overall Export                                                | 310338.48                                                             | 262290.13                                                             | 275851.70                                                             | 303376.22                                                             |

Source: DG CIS

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