Lok Sabha Question No. 3412 (UNSTARRED), answered on 2020-03-13
Subject: National Textile Policy
Ministry: TEXTILES
Asked by: Anurag Sharma

## LOK SABHA UNSTARRED QUESTION NO. 3412 TO BE ANSWERED ON 13.03.2020

## NATIONAL TEXTILE POLICY

## 3412.    SHRI ANURAG SHARMA:

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

(a) whether any proposal regarding National Textile Policy for protection of skill artisans, weavers and handloom workers is under consideration of the Government; and

(b) the steps being taken to expand Indian textile industry globally which is presently limited to Uttar Pradesh?

## उत्तर

## ANSWER

## वस्त्र मंत्री ( श्रीमती स्मृतत ज़ूबिन इरानी )

MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

(a): Government  is  formulating  a  New  Textile  Policy  for  overall  development  of  the  sector including human resource development. Inputs from all the state governments, individuals through eportal and different associations are being solicited. Different stakeholders consultation meetings are also  underway  under  broad  topics  such  as  Cotton,  Silk,  Jute,  Wool,  Man-made  Fibre,  Handloom, Handicrafts,  Powerloom,  Technical  Textiles,  Technology  &  Machinery  upgradation,  Infrastructure (Spinning, Weaving & Processing), Human Resource Development etc.

(b) To make the Indian Textile Industry competitive globally, following steps are being taken:-

-  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.'
-  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.

-  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 ans RoSL + MEIS @4% from 7.3.2019 to 31.12.2019.
-  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.
-  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.
-  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.
-  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.
-  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.
-  '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.
-  National Handloom Development Programme and National Handicrafts Development Programme :-      These  programmes  aim  at  holistic  development  of  handloom  and  handicrafts clusters through integrated approach and provide 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.
-  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.
-  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.
-  To promote domestic textile clusters by engaging proactively with the retailer and brand chains to enhance local sourcing to boost productivity in garment hubs, 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
- 28th  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.
-  Government launched Amended Technology Up-gradation Fund Scheme on January 2016 with an outlay of Rs 17,822 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.
-  Technical Textile - Government announced for creation of a National Technical  Textile Mission at a cost of Rs. 1480 Crore   with a four year  implementation period from FY 2020-21 to 2023-24 with a view to position the country as a global leader in Technical Textiles. The Mission will have four components  namely  a).  Research,  Innovation  and  Development,  b).  Promotion  and  Marketing Development, c). Export Promotion and Education, Training and Skill Development.