Lok Sabha Question No. 3828 (UNSTARRED), answered on 2019-01-03
Subject: Status of Textile and Clothing Sector
Ministry: TEXTILES
Asked by: DHANANJAY BHIMRAO MAHADIK, HEENA VIJAYKUMAR GAVIT, VIJAYSINH MOHITE PATIL, RAJEEV SHANKARRAO SATAV, SUPRIYA SADANAND SULE

## LOK SABHA UNSTARRED QUESTION NO. 3828 TO BE ANSWERED ON 03/01/2019

## 'STATUS OF TEXTILE AND CLOTHING SECTOR'

3828.   SHRI DHANANJAY MAHADIK: SHRI SATAV RAJEEV: DR. HEENA VIJAYKUMAR GAVIT: SHRI MOHITE PATIL VIJAYSINH SHANKARRAO: SHRIMATI SUPRIYA SULE:

Will the Minister of Textiles वस्त्र मंरी

be pleased to state:

- (a) whether the textile and clothing sector is passing through difficult phase and has been badly affected;
- (b) if so, the details thereof and the reasons therefor;
- (c) the details of segments that have performed well in Textile and Clothing sectors during the last three years and the current year, year-wise and segment-wise;
- (d) whether the export of clothing and textile has been badly affected due to global gloom, if so, the steps being taken by the Government to deal with the situation and boost the exports from the country; and
- (e) whether the export of handicraft including handmade carpets have shown negative growth compared to last two to three years, if so, the details thereof, and the steps taken by the Government to push the exports of the said items?

## उत्तर

## ANSWER वस्त्र राज्य मंरी (श्री अजय टम्टा)

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

(a) to (c) No, Madam. Except for Man made filament yarn, other sectors as shown below has observed  growth  in  the  year  2018-19(Apr-Oct)  as  compared  to  2017-18  during  the  same period.  The  performance  of  major  textile  sectors  in  terms  of  production    for  the  last  three years and current year is given below:

| Item                                        |   2015- 16 |   2016- 17 |   2017- 18 |   2017-18 (Apr-Oct) |   2018-19 (Apr-Oct) (Prov.) |   %change 2018-19 over 2017-18 |
|---------------------------------------------|------------|------------|------------|---------------------|-----------------------------|--------------------------------|
| Spun Yarn (Million Kg)                      |       5665 |       5659 |       5680 |                3299 |                        3452 |                            4.6 |
| Man madefibre (Million Kg)                  |       1347 |       1364 |       1319 |                 791 |                         850 |                            7.5 |
| Man made filament yarn (Million Kg)         |       1164 |       1159 |       1187 |                 702 |                         678 |                           -3.4 |
| Estimated Cloth Production (Million Sq.Mtr) |      65505 |      64421 |      67779 |               38964 |                       41110 |                            5.6 |

(d): No,  Madam.  In  order  to  boost  exports  of  textile  and  apparel  products,  the  Government announced Special Package of Rs. 6000 crores in 2016 for garments and made-ups sectors. The package offers Rebate of State Levies (RoSL), labour law reforms, additional incentives under Amended Technology Upgradation Fund Scheme (ATUFS) and relaxation of Section 80JJAA of Income Tax Act. Further, 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. Products such as fibre, yarn and fabric in the textile value chain are being  strengthened  and  made  competitive  through  various  schemes,  inter  alia,  Powertex  for fabric segment, ATUFS for all segments except spinning, Scheme for Integrated Textile Parks (SITP) for all segments, etc. Assistance is provided to exporters under Market Access Initiative (MAI) Scheme. Further,  Government  has  enhanced  interest  equalization  rate  for  pre  and  post shipment credit for the textile sector from 3% to 5% w.e.f. 02.11.2018.

- (e): Yes, Madam. There is a marginal decline in 2017-18 as compared to last two to three years i.e 2016-17, 2015-16 and 2014-15.  The details of the exports during the last four years is as under:-

Rs. In Crores.

| Item/ Year wise Export       |   2014-15 |   2015-16 |   2016-17 |   2017-18 |
|------------------------------|-----------|-----------|-----------|-----------|
| Handicrafts                  |  20082.5  |   21557.1 |   24392.4 |   23029.3 |
| Carpet &other Floor covering |   8441.95 |    9481.4 |   10001.9 |    9205.9 |
| Total                        |  28524.5  |   31038.5 |   34394.3 |   32235.2 |

The  efforts  made  by  the  Government  to  boost  the  sale  and  export  of  Handicrafts  and Handmade Carpet are as under:-

- i. Participation in fairs/exhibitions abroad;
- ii. Thematic display and live demonstration of handicrafts in exhibitions abroad;
- iii. Organizing buyer-seller meets in India and abroad;
- iv. Brand image promotion of Indian handicrafts abroad through seminars and publicity;
- v. Awareness programmes about technology, packaging and export policies in India to exporters;
- vi. Organizing Indian Handicrafts & Gifts Fairs as well as product specific shows; and
- vii. Providing  assistance  under  Market  Development  Assistance  and  Market  Access  Initiative Schemes of Ministry of Commerce.
- viii. International publicity campaign for overseas buyers.
- ix. E-Marketing of Handicrafts products.
- x. Setting up warehouse & showrooms of handicrafts & carpets abroad to capture untapped market.