Lok Sabha Question No. 5586 (UNSTARRED), answered on 2019-07-26
Subject: Export in Textile Sector
Ministry: TEXTILES
Asked by: Imtiaz Jaleel Syed, Asaduddin Owaisi, Behanan Benny, Jayadev Galla, Dr. T. Sumathy (a) Thamizhachi Thangapandian

LOK SABHA UNSTARRED QUESTION NO. 5586 TO BE ANSWERED ON 26.07.2019

## EXPORT IN TEXTILE SECTOR

5586. SHRI SYED IMTIAZ JALEEL:

SHRI ASADUDDIN OWAISI:

SHRI BENNY BEHANAN:

SHRI JAYADEV GALLA:

DR. T. SUMATHY (A) THAMIZHACHI THANGAPANDIAN:

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

- (a) whether  it  is  true  that  the  Ministry  has  announced  measures  to  boost exports in wake of continuously declining textile exports, if so, the details thereof and the steps taken thereon;
- (b) the manner in which these measures are helpful in the post-GST regime;
- and
- (c) the extent to which competition from neighbouring countries like China, Bangladesh and Sri Lanka have affected India's export in textile sector?

## उत्तर

## ANSWER

## वस्त्र मंरी ( श्रीमती स्मृ तत ज़ूबिन इरानी

## )

MINISTER OF TEXTILES

(SMT. SMRITI ZUBIN IRANI)

(a): As per the data of Directorate General of Commercial Intelligence and Statistics,  export  of  textiles  has  increased  by  0.6%  from  USD  19,972  in 2014-15 to USD 20,420 in 2018-19. To increase competitiveness of textile industry,  Government  announced  a  Special  Package  for  garments  and made-ups sectors which provides 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 package offers Rebate of State Levies through the scheme for RoSL. The RoSL scheme has since been replaced by the new RoSCTL (Rebate of State and Central Taxes and Levies) scheme w.e.f 7 th  March 2019. The rates under Merchandise Exports from India Scheme (MEIS) were 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.

(b): RoSCTL rebates all embedded state and central taxes and levies which are outside the GST. Export of textiles has increased by 22% to USD 43.7 bn in post GST regime (July'17 to April'19) from USD 35.8 bn during pre GST regime (July'15 to April'17).

(c): 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.  China's  textile  industry  has attained  economies  of  scale,  thereby  giving  competition  to  India's  textile industry  globally.  As  per  the  data  of  Directorate  General  of  Commercial Intelligence  and  Statistics,  export  of  textile  and  apparel  by  India  and neighboring countries like China, Bangladesh and Sri Lanka to key markets such as EU and USA is as follows:

## Exports to EU (28) (mn usd)

|            |   2014 |   2018 | % Share   |
|------------|--------|--------|-----------|
| India*     |    9.8 |    9.5 | -1%       |
| China      |   56.8 |   48.2 | -4%       |
| Bangladesh |   17.7 |   23.6 | 7%        |
| Sri Lanka  |    2.4 |    2.4 | 0%        |

## Exports to USA (mn usd)

|            |   2014 |   2018 | % Share   |
|------------|--------|--------|-----------|
| India*     |    7.2 |    8.3 | 4%        |
| China      |   41.9 |   45.9 | 2%        |
| Bangladesh |    5.7 |    5.7 | 0%        |
| Sri Lanka  |    1.9 |    1.9 | -1%       |

Source: DCGIS*, Trademap

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