Lok Sabha Question No. 4499 (UNSTARRED), answered on 2019-07-19
Subject: Contribution of Textile Industry
Ministry: TEXTILES
Asked by: Ramapati Ram Tripathi, Nishikant  Dubey

## LOK SABHA UNSTARRED QUESTION NO. 4499 TO BE ANSWERED ON 19.7.2019

## CONTRIBUTION OF TEXTILE INDUSTRY

## 4499. DR. RAMAPATI RAM TRIPATHI: DR NISHIKANT DUBEY:

## Will the Minister of TEXTILES वस्त्र मंरी

be pleased to state:

- (a) the percentage contribution of textile industry in industrial production, Gross Domestic Production (GDP) and income from exports during each of the last three years;
- (b) the  estimated  number  of  people  getting  direct  employment  in  the  country  through textile industry;
- (c) whether  the  Government  proposes  to  formulate  any  scheme  for  new  investment  in different areas of textile industry in view of enormous employment generation capacity of this sector, if so, the details thereof and the steps taken by the Government in this regard, area-wise;
- (d) whether export in textile sector has increased during each of the last two years and the current year, if so, the details thereof; and
- (e) the steps taken/being taken by the Government to increase export of textile products including knitwear and handloom during the last three years?

## उत्तर

## ANSWER

## वस्त्र मंरी ( श्रीमती स्मृ तत ज़ूबिन इरानी )

MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

- (a) The percentage of contribution of Textile industry   to industrial production and Gross Domestic production(GDP) for the year 2014-15 to 2016-17 are given below at table (i) and income from textile exports  for the years 2016-17 to  2018-19 is given below at table (ii) :-
- (i) Share of Textiles Sector to India's GDP and GDP of Manufacturing Sector (at Basic prices)                                                                              (Rs. in crore)

| Year    |   %share of Textile Industry to GDP of manufacturing Sector |   %share of Textile Industry to India's GDP |
|---------|-------------------------------------------------------------|---------------------------------------------|
| 2014-15 |                                                       13.5  |                                        2.33 |
| 2015-16 |                                                       12.43 |                                        2.22 |
| 2016-17 |                                                       12.65 |                                        2.3  |

Source: National Accounts Statistics, 2018.

## (ii) India's textiles exports including handicrafts from 2016-17 to 2018-19: (Rs in crore)

| Year                                                  |   2016-17 |   2017-18 |   2018-19 |
|-------------------------------------------------------|-----------|-----------|-----------|
| Textiles exports including handicrafts (Rs. in crore) |    265340 |    255160 |    255337 |

- (b) There are estimated to be more than 4.5 crore people engaged/employed directly in  the  textile  industry  and  another  6  crore  people  in  allied  sectors  including  a  large number of women and rural population employed in the sector.
- (c) Government has taken a number of steps for promotion of investment, production, exports  and employment generation in the textile sector across the country which interalia include the following:-
- (i)            A  special  package  of  Rs.6000  crore    was  launched  in  2016  to  promote investment, boost exports and employment generation (estimated 1.11 crore jobs) in apparel and made-ups sector  with three main components viz., (i) Remission of State Levies  (ROSL)  full  refund  of    the  State  level  taxes  paid  by  the  exporters;  (ii) production linked additional incentive of 10% under the Amended Technology Upgradation Fund Scheme (ATUFS) and (iii)  full employer's contribution (12%) of the Employees  Provident  Fund  (EPF)  under  the  Pradhan Mantri  Paridhan  Rozgar Protsahan  Yojana  (PMPRPY)  for  a  period  of  three  years  w.e.f  1 st April,  2018  to employees of garment industry who are earning less than Rs. 15,000 per month  for all sectors including Textiles and Apparel (T&A) sector;
- (ii) Amended Technology Upgradation Fund Scheme -to upgrade technology/machinaries of textile industry with an outlay of Rs.17, 822 crore during 2016-2022 which will attract investment of Rs.1 lakh crore and generate 35.62 lakh employments in the textile sector by 2022;
- (iii)     Under the Scheme of Integrated Textile Park (SITP), 40% subsidy is provided with  a  ceiling  of  Rs.40  crore  to  set  up  Textile  Parks  for  creation  of  textile infrastructure and employment generation;
- (iv)   A separate scheme for development of Knitting and knitwear has been launched in January,2019 with an outlay of Rs.47.72 crore for a period upto 31.3.2020 to boost production in knitting and knitwear clusters which provide employment to nearly 24 lakh persons;
- (v)    Government has approved a new scheme viz., 'Samarth - Scheme for Capacity Building', to train 10 lakh youth for a period of three years from 2017-18 to 2019-20,

at  an  estimated  cost  of  Rs.1300  crore.  The  scheme  is  aimed  at  providing  demand driven, placement oriented National Skills  Qualifications  Framework  (NSQF) compliant  skilling  programmes  to  incentivize  and  supplement  the  efforts  of  the industry in creating jobs in the organised  and related sector  including skilling and skill-upgradation in the traditional sector;

- (vi) National  Handloom  Development  Programme  -  Comprehensive  Handloom Cluster Development Scheme, Handloom  Weaver Comprehensive Welfare Scheme and Yarn Supply Schemes - providing basic inputs, looms and accessories, design and development, infrastructure development, marketing of handloom products, etc.
- (vii) National  Handicrafts  Development  Programme  (NHDP)  and  Comprehensive Handicraft Cluster Development Schemes - for holistic development of handicrafts clusters through integrated approach by providing support for design, technology upgradation, infrastructure development, marketing etc.;
- (viii) 'PowerTex  India'-  launched  on  1 st April,  2017  with  an  outlay  of  Rs.  487 crore  for  three  years  for  loom  upgradation,  infrastructure  creation  and  access  to concessional credit -  push to the fabric segment;
- (ix) A new scheme 'Silk Samagra' was launched for a period of 3 years upto 201920, with an outlay of Rs.2161.68 crore for comprehensive development of the silk sector -Integrated Sericulture Development  Project and Intensive Biovoltine Sericulture Development  Projectincluding 38 sericulture projects are being implemented in 8 North East States at a total cost of Rs. 1107 crore from 2014-15 to 2020-21 to cover 63,000 beneficiaries;
- (x) Jute  ICARE  for  increasing  the  income  of  farmers  by  at  least  50%  through promotion  of  certified  seeds,  better  agronomic  practices  and  use  of  microbial  reusing of Jute plant;
- (xi) Integrated Wool Development Programme for growth of wool sector by way of machine sheep shearing, strengthening of wool market and processing and woolen product manufacturing;
- (xii) North  East  Region  Textile  Promotion  Scheme  (NERTPS)  for  promoting textiles  industry  in  the  NER  by  providing  infrastructure,  capacity  building  and marketing support to all segments of textile industry;
- (d) As detail  given in table (a),(ii) in reply to part (a) of the question above, export increased from Rs. 255159.98 cr in 2017-18 to Rs. 255336.98 cr in 2018-19.

(e) Apart  from  the  above,  Government  has  been  taking  various  initiatives  for increasing  competitiveness  and  exports  of  textile  products  including  knitwear  and handloom such as Special Package for garments and made-ups sectors - 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.   The RoSL scheme has been replaced by the new RoSCTL (Rebate of State and Central Taxes and Levies) scheme w.e.f 7 th March 2019 and shall remain in force up to 31.03.2020.

Further,  the  rates  under  Merchandise  Exports  from  India  Scheme  (MEIS)  have been enhanced from 2% to 4% for garment and made-ups, 5% to 7% for handloom and handicrafts w.e.f. 1 st November 2017. Financial assistance is also provided to exporters under  Market  Access  Initiative  (MAI)  Scheme.  Government  has  enhanced  interest equalization rate for pre and post shipment credit for exports done by MSMEs of textile sector from 3% to 5% w.e.f. 02.11.2018.  Benefits of Interest Equalization Scheme have been extended to merchant exporters from 02.01.2019 which was earlier limited to only manufacturer exporters.  To reduce the cost of garment industry, GST rate on manmade fibre yarns has been reduced from 18% to 12%.

The  refund  of  accumulated  input  tax  credit  on  fabrics  has  also  been  allowed  to reduce  cost  of  fabrics  which  is  a  major  input  for  garments.  Further,  under  the  Interest Subvention Scheme, it was announced in the budget speech that ₹350 crore allocated for 2  per  cent  interest  subvention  for  all  GST-registered  MSMEs  on  fresh  or  incremental loans.

Besides  the  above,    Government  has  been  encouraging  and  supporting  the traditional  handloom  and  handicraft  sectors  including  silk,  wool  and  jute  sectors  for enhancing production and employment generation in these segments.

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