Lok Sabha Question No. 4570 (UNSTARRED), answered on 2020-03-20
Subject: New Textile Policy
Ministry: TEXTILES
Asked by: Dipsinh Shankarsinh Rathod

## LOK SABHA UNSTARRED QUESTION NO. 4570 TO BE ANSWERED ON 20.03.2020

## NEW TEXTILE POLICY

## 4570.   SHRI DIPSINH SHANKARSINH RATHOD:

## Will the Minister of TEXTILES वस्त्र मंत्री

be pleased to state :

(a)  whether the Government has come up with new textile policy to encourage garment exports from India; and

(b) if so, the details of the said policy and beneficiaries thereof?

## उत्तर

## ANSWER

## वस्त्र मंत्री ( श्रीमती स्मृतत ज़ूबिन इरानी )

MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

- (a) & (b): The  Government  is  formulating  a  New  Textile  Policy  for  overall  development  of  textile sector. The new policy will address issues and challenges faced by Textile Sector across the value chain including exports.

Some recent initiatives taken to encourage exports of textile sector include:-

- (i) Special Package for Textile and Apparel sector for 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.
- (ii) RoSCTL:- To boost exports, Govt. has launched a new scheme viz. Rebate of State and Central Taxes and Levies (ROSCTL) on Export of Garments/ Made-ups with effect from 07.03.2019, in addition  to  the  duty  Drawback  scheme.  Government  has  also  notified  a  special  one-time additional  ad-hoc  incentive  upto  1%  of  FoB  value  to  be  provided  for  exports  of  apparel  and made-ups to offset the difference between RoSCTL and RoSL + MEIS @4% from 7.3.2019 to 31.12.2019.
- (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 to enhance India's export competitiveness.
- (v) Market Access Initiative (MAI) is formulated on product focused country approach to evolve specific  market  and  specific  product  through  market  studies/survey.  Interest  equalization  rate for  pre  and  post  shipment  credit  for  exports  by  MSMEs of textiles sector has been  enhanced 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.
- (vi) 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 to boost export:-
- (a) 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.'
- (b) 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.'
- (vi) To boost exports in the MMF sector, Government has removed anti-dumping duty on PTA, a key material for the manufacturing of MMF fibre and yarn.

<!-- image -->