Lok Sabha Question No. 3209 (UNSTARRED), answered on 2019-07-12
Subject: Share of States in Development of Textile Industry
Ministry: TEXTILES
Asked by: Gitaben Vajesingbhai Rathva

## LOK SABHA UNSTARRED QUESTION NO. 3209 TO BE ANSWERED ON 12.7.2019

## SHARE OF STATES IN DEVELOPMENT OF TEXTILE INDUSTRY

## 3209.    SHRIMATI RATHVA GITABEN VAJESINGBHAI:

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

(a) whether  Union  Government  has  evaluated  the  share  of  various  States  including Gujarat in development of textiles industry/sector;

(b) if so, the details thereof;

(c) the measures taken/to be taken by the Union Government to boost textiles sector in the country and to compete globally in partnership with other international players in this regard;

(d) whether  Union  Government  proposes  to  restructure  its  textile  policy  to  achieve growth target set for the sector in the coming years; and

(e) if so, the details thereof and the steps taken in this regard?

## उत्तर

## ANSWER

## वस्त्र मंरी ( श्रीमती स्मृ तत ज़ू बिन इरानी )

MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

- (a )      to  (e): Specific  study  for  evaluating  share  of  various  states  in  the  development  of textile  industry  has  not  been  undertaken.    Government  has,  however,  been  implementing various policy initiatives and programmes for development of textiles industry  across the country  including  in  Gujarat  and  for  global  competition  particularly  for  technology upgradation,  infrastructure  creation  and  skill  development.  These  schemes/  programmes inter-alia include:-
- (i)      Government  has  launched  a  special  package  of  Rs.6000  crore  in  2016  to  boost investment,  employment  generation  of  around  1.11  crore  jobs  and  exports  in  the garmenting and made-ups sector with the following components viz., (i) full refund is provided under Remission of State Levies (ROSL) to the exporters for the State level taxes; (ii) production linked additional incentive of 10% is provided under the Amended  Technology  Up-gradation Fund Scheme  (ATUFS)  and  (iii) full employer's  contribution  (12%)  of  the  Employment  Provident  Fund  (EPF)  is provided 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  T&A sector.
- (ii) To improve the competitiveness of value-added segments, a new Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) was approved by the Government to rebate all embedded state as well as central taxes/levies up to 31 st March 2020.
- (iii) Under the Amended Technology Up-gradation Fund scheme, an outlay of Rs.17,822 crore has been provided for seven years from 2015-16 to 2021-22 for upgradation of textiles machineries which is expected to attract an investment of Rs 1 lakh crore and generate 35.62 lakh employment by 2022.
- (iv) As a part of Government's focus on skill development and employment generation in  the  textile  sector,  Government  is  implementing  the  '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 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  organized  and  related  sectors  and  to  provide skilling and skill-upgradation in the traditional sector.
- (v) A comprehensive scheme-'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 is much needed push to the fabric segment;
- (vi) In order to boost production in knitting and knitwear clusters at Ludhiana, Kolkata, and Tirupur which provide employment to nearly 24 lakh persons, Government has launched  a  separate  scheme  for  development  of  Knitting  and  Knitwear  Sector  in January 2019 with an outlay of Rs.47.72 crore for a period upto 31.3.2020.
- (vii) A new scheme 'Silk Samagra' was launched for a period of 3 years upto2019-20, with  an  outlay  of  Rs.2161.68  crore  for  comprehensive  development  of  the  silk sector- Custom duty on import of Silk fabric increased from 10% to 20 % during February, 2018. India entered into international collaboration with Bulgaria, Japan, China and Uzbekistan to develop high yielding verities of silk breeds.
- (viii) To improve productivity and quality of raw jute, a pilot-project of Jute ICARE has been successfully implemented through carefully designed interventions providing additional income to the extent of Rs. 10,000 per hectare for farmers.
- (ix) An extensive anthropometric research study titled 'India Size' through  NIFT under R&D scheme  is  undertaken  to  develop  a  comprehensive  body  size  chart  for  the Indian  population  to  standardizing  garment  size  charts  for  ready  to  wear  industry both within the country and abroad.
- (x) Apart from the above, Government has been taking various initiatives for promotion of textile manufacturing by building the best-in-class manufacturing infrastructure,

upgradation of technology, fostering innovation and enhancing skills in the textile sector.  These include 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 including silk, wool and jute sectors for enhancing production and employment generation in these segments.

- (xi) To promote exports of textiles and apparel, the Government has recently approved a project on Trend Insight and Forecasting Services tilted 'VisionText' for development  of  first  ever  indigenous  fashion  forecasting  process  with  integrated artificial intelligence and map out micro & micro trends in style and color direction, using socio-cultural insights extracting regional accents from the country for Indian fashion and Apparel Industry.
- (xii) To  increase  competitiveness  of  textile  industry,  Government  announced  a  Special Package 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. 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.  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.  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 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 has been extended to merchant exporters from 02.01.2019 which was earlier limited to only manufacturer exporters.