Lok Sabha Question No. 3362 (UNSTARRED), answered on 2019-07-12
Subject: Textile-Apparel Manufacturing
Ministry: TEXTILES
Asked by: Shrikant Eknath Shinde, Girish Bhalchandra Bapat, Vinayak Bhaurao Raut, Pushpendra Singh Chandel, Shrirang Appa Barne

## TEXTILE-APPAREL MANUFACTURING

## 3362.   DR. SHRIKANT EKNATH SHINDE:

SHRI GIRISH BHALCHANDRA BAPAT:

SHRI VINAYAK RAUT:

SHRI KUNWAR PUSHPENDRA SINGH CHANDEL:

SHRI SRIRANGA APPA BARNE:

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

- (a) whether  textile-apparel  manufacturing  cost  has  increased  and  hence  manufacturers  are not able to compete with low cost destinations in low value products, if so, the details thereof;
- (b) whether  the  Indian  Texpreneurs  Federation  (ITF)  has  conducted  any  survey  in  this regard, if so, the findings thereof and the response of the Government thereon;
- (c) whether  the  ITF  has  submitted  a  11-point  appeal  and  suggestions  to  the  Ministry  of Textiles for consideration, if so, the details thereof and the response of the Government thereon; and
- (d) whether  ITF  urged  the  Government,  firstly,  to  consider  forming  a  task  force  with industry stakeholders in order to identify the short term and long term solutions to trigger the growth of exports and if so, the steps taken by the Government in this regard?

## उत्तर

## ANSWER

## वस्त्र मंरी ( श्रीमती स्त्म ृ तत ज़ूबिन इरानी )

MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

(a): India  faces  competition  from  countries  like  Bangladesh  and  Sri  Lanka  which  have competitive  manufacturing  costs  and  enjoy  duty  free  access  to  major  textiles  and  apparel markets like EU.

- (b) & (c): Yes sir. Findings of survey conducted by ITF are as under:
- (i) Textile sector is focusing on low value added products with concentration in few markets.
- (ii) Lack of manpower and sufficient skills lead to higher manufacturing cost.
- (iii) Global trends in fashion are towards blends.
- (iv) Exports of MMF/Synthetics fibre based apparel has shown negative growth

Response of Government is as under:

- (i) 40% of  India's  export  basket  comprises  apparel,  a  finished  value  added product.
- (ii) While  traditional  markets  like  (EU  and  USA)  are  important  destinations for India's export of textile and apparel,  more than 50% of our export is to emerging markets
- (iii) Government  is  focusing  on  skill  development  and  capacity  building  in both  unorganized  and  organized  textile  sectors  through  SAMARTH scheme.
- (iv) To promote manufacturing and export of MMF  based products, the inverted duty structure at the stage of fabric was corrected by permitting refund of unused  input tax credits w.e.f. 01.08.2018. Further, to boost manufacturing and Make in India, duty has enhanced on 298 MMF fabric lines.
- (v) To increase competitiveness of textile industry, Government announced a Special Package for garments and made ups. A key element of the package is the Rebate of State Levies (RoSL) Scheme. The RoSL scheme has now been replaced by the new Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) w.e.f 7 th March 2019.  Under the said scheme state and  central  taxes  and  levies  which  are  present  in  the  cost  of  exports  of garments and made-ups shall be rebated through IT driven scrips issued by DGFT.

(d): To identify issues and solutions to enhance exports, Government has regular interface with various Ministries/Departments, industry associations and Export Promotion Councils.

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