Lok Sabha Question No. 17 (UNSTARRED), answered on 2019-06-21
Subject: Demand Made by Textile Industry
Ministry: TEXTILES
Asked by: Suresh Kodikunnil

## LOK SABHA UNSTARRED QUESTION NO. 17 TO BE ANSWERED ON 21.06.2019

## DEMAND MADE BY TEXTILE INDUSTRY

17.  SHRI KODIKUNNIL SURESH:

## Will the Minister of TEXTILES वस्त्र मंरी

be pleased to state:

- (a)  whether  the  Government  is  aware  of  the  demand  made  by  textile  industry  to  western retailers and Indian brands and retail chains to promote sourcing of materials from within India so  as  to  help  and  support  Indian  textile  clusters  and  to  further  enhance  employment  in  the sector, if so, the details thereof;
- (b)  whether  the  Government  is  likely  to  consider  promoting  domestic  textile  clusters  by engaging  proactively  with  the  retailer  and  brand  chains  to  enhance  local  sourcing  to  boost productivity in garment hubs of the country;
- (c) if so, the details thereof; and
- (d)  whether the Government has received any representation from garment sector and allied industry representatives in this regard, if so, the details thereof?

## उत्तर

## ANSWER

## वस्त्र मंरी ( श्रीमती स्मृ तत ज़ूबिन इरानी )

MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

- (a) To promote sourcing of materials from within Indian Textile Clusters by western retailers and retail chains, the Consolidated FDI Policy (Effective from August 28, 2017) provides following benefits:
-  For  Single  Brand  Product  Retail  Trading:-  'In  respect  of  proposals  involving  foreign investment  beyond  51%,  sourcing  of  30%  of  the  value  of  goods  purchased,  will  be done from India, preferably from MSMEs, village and cottage industries, artisans and craftsmen, in all sectors.'
-  For  Multi  Brand  Retail  Trading:-  'At  least  30%  of  the  value  of  procurement  of manufactured/  processed  products  purchased  shall  be  sourced  from  Indian  micro, small and medium industries, which have a total investment in plant & machinery not exceeding US $ 2.00 million.'

Further,  to  support  Indian  textile  clusters  and  to  further  enhance  employment  in  the Textile sector, 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.  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  2015-2020  to  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.
- iv.  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:
5. o Marketing Projects Abroad
6. o Capacity Building
7. o Support for Statutory Compliances
8. o Studies
9. o Project Development
10. o Developing Foreign Trade Facilitation web Portal
11. 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.

- 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.
- viii. 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.
- ix. 'India  Handloom  Brand' Scheme  has  been  launched  by  the  Government  in  2015  to enhance  the  quality  in  weaving,  designing  and  defect  free  handloom  products  for safeguarding the interest of the buyers in the domestic and international markets. It will promote production  of  niche  handloom  products  with  high  quality,  authentic  traditional designs with zero defect and zero effect on environment.
- x. National Handloom Development Programme and National Handicrafts Development  Programme  : 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.
- xi. India  Australia  collaborative  project  signed  between  Ministry  of  Textiles,  Govt.  of  India and  Department  of  Foreign  Affairs,  Govt.  of  Australia,  with  an  aim  to  showcase garments,  developed  by  Australian  designers  made  out  of  handloom  fabrics  viz. Varanasi Banaras brocades, Ikat design, indigo handloom etc., on runway shows both in India  and  Australia  in  order  to  widen  international  market  for  Indian  Handlooms.    The activities defined in the MoU had since been completed.
- xii. 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  organizations,  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.
- xiii. 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.
- xiv.  The  Government  has  been organizing  participation  of  Apex  societies/clusters/IHB registered holders participation in International fairs /Reverse Buyer Seller Meets/ Buyer Seller Meets etc.
9. (b)  to (d): To promote domestic textile clusters by engaging proactively with the retailer and brand  chains  to  enhance  local  sourcing  to  boost  productivity  in  garment  hubs,  an Memorandum  of  Understandings  (MoUs)  were  signed  between  O/o  D  C  Handlooms, Ministry  of  Textiles(GoI)  and  with  the  following  Textiles  Companies  at  Elephanta  Caves, Mumbai on 28 th January, 2019:
1.  M/s Welspun India Limited
2.  M/s Arvind True Blue Limited
3.  M/s Raymond Limited
4.  M/s Reliance Retail Limited
5.  M/s Titan Company Limited

These  MoUs  envisage  that  the  companies  would  be  facilitated  to  develop  interface  with handloom  clusters/pockets  for  sourcing  their  fabric  requirements  through  facilitation  by Weavers Service Centres and other organizations working in the Ministry of Textiles.

A  Comprehensive  Powerloom  Cluster  Development  Scheme  is  in  operation  which aimed  to  create  world-class  infrastructure  to  integrate  the  production  chain,  to  fulfil  the business needs of the local Small and Medium Enterprises (SMEs) and to boost production and  export  with  the  objective  of  development  of  Clusters  and  improving  the  brownfield clusters.

In  order  to  promote  ease  of  doing  business  in  the  country,  achieve  the  vision  of generating employment and promoting exports through 'Make in India'' with "Zero effect and Zero defect" in manufacturing and promoting domestic textile clusters, the Government  has  also  launched  Amended  Technology  Up-gradation  Fund  Scheme  on January 2016 with an outlay of Rs 17822 Crores to adopt innovative new technology in all the sub-sectors of textiles industry for technology up-gradation of the machinery by way of one time Capital Investment Subsidy for eligible benchmarked machinery for a period of seven years from 2015-16 to 2021-22. 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.

Every eligible individual entity (not the unit) is entitled for reimbursement of Capital Investment  Subsidy  on  various  Textiles  segment  viz.  Garmenting,  Technical  Textiles, Weaving for brand new Shuttle-less Looms, etc.

Further, an additional subsidy of 10% is provided to the made-ups units enhancing the cap to Rs. 50 crore on the lines of SPELSGU under ATUFS subject to the achievement of  the  projected  production  and  employment.  The  additional  subsidy  is  disbursed  after  a period  of  three  years.    This  is  based  on  a  verification  mechanism  linked  to  production volume, employment and turnover.

*********