Lok Sabha Question No. 607 (UNSTARRED), answered on 2018-12-13
Subject: Share of States in Development of Textile Industry
Ministry: TEXTILES
Asked by: RAMSINH PATALYABHAI RATHWA

## LOK SABHA UNSTARRED QUESTION NO. 607 TO BE ANSWERED ON 13/12/2018

## 'SHARE OF STATES IN DEVELOPMENT OF TEXTILE INDUSTRY.'

## 607. SHRI RAMSINH RATHWA:

Will the Minister of Textiles वस्त्र मंरी

be pleased to state:

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

(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 it with foreign countries along with cooperation sought from international        countries' players in this regard;

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

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

## उत्तर

## ANSWER वस्त्र राज्य मंरी (श्री अजय टम्टा)

## MINISTER OF STATE FOR TEXTILES (SHRI AJAY TAMTA)

(a) & (b) The share of various states including Gujarat in Textile Industry/Sector in the country is being maintained by the respective States Government. The Union Government provides / ensure conducive policy environment on Pan-India basis, facilitating in creating enabling conditions for the industry and private entrepreneurs to set up units through its various policy initiatives and schemes.

(c ) to (e ) In order to achieve growth, boost textiles sector in the country and compete it with foreign countries,  the Government has taken a large number of initiatives. Some of the  major policy measures and schemes implemented by the Government are given below:-

- i. Special Package for Textile and Apparel sector: 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. Enhanced  Customs  Duty  to  boost  domestic  manufacturing : To  boost indigenous production and Make in India, Government has increased Basic Customs Duty from 10% to 20% on 501 textile products.
- iii. Amended Technology Up-gradation Fund Scheme (ATUFS): The amended Scheme was launched in January 2016 with an outlay of Rs 17822 Crores for technology upgradation of textiles industry with one time capital subsidy for eligible machinery.  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.
- iv. 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.
- v. National  Handloom  Development  Programme  and  National  Handicrafts  Development Programme : These programmes aim at holistic development of handloom and handicrafts clusters through integrated approach. The strategic interventions under the programme include 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.
- vi. '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.
- vii. 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.
- viii. 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 organisations, 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.
- ix. 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. 19 new projects were sanctioned  from 2014 onwards.
- x. North East Region Textile Promotion Scheme (NERTPS): This scheme promotes textiles industry  in  the  North  Eastern  Region  by  providing  infrastructure,  capacity  building  and marketing support to all segments of textile industry. The scheme has an outlay of Rs. 500 crores during 2017-18 to 2019-20.
- xi. Integrated Wool Development Programme (IWDP): Government of India has recently approved IWDP for implementation during 2017-18 to 2019-20 after integrating and rationalization of

various schemes for holistic growth of wool sector by providing support to entire chain of wool sector from wool rearer to end consumer to increase the wool production as well as its quality.

- xii. Jute (ICARE): A project Jute ICARE (Improved Cultivation and Advanced Retting Exercise) was introduced in 2015 for improving productivity and quality of raw jute through carefully designed  interventions.  The  project  has  benefitted  more  than  1.33  lakhs  farmers  in  various states in the country.
- xiii. JUTE  -  SMART :  The  Office  of  the  Jute  Commissioner  has  developed  an  end-to-end  webbased platform for procurement, inspection and dispatch of jute bags which is transparent, rule based, simple to use and real time.
- xiv. The Export Promotion Councils (EPCs) work in close co-operation with various organizations of the Government to promote the growth and export of their respective sectors viz. readymade garments, cotton, silk, jute, powerloom, handloom, handicrafts and carpets, in global markets.  EPCs participate and organize fairs and exhibitions and standalone shows in India & overseas markets to enhance exports and access new markets.
- xv. Enhancement of rates under Merchandise Exports from India Scheme (MEIS): To further boost  exports  of  apparel  &  made-up  sectors,  interest  rates  under  Merchandise  Exports  from India Scheme (MEIS) has been enhanced from 2% to 4% fro apparel, 5% to 7% for made-ups, handloom and handicrafts w.e.f. Ist November,  2017.
- xvi. Interest rate subvention: Credit interest rate subvention for pre and post shipment was restored in  2015  for  three  years.  The  Government  has  enhanced interest equalization  rate for  pre and post shipment credit for the textile sector from 3% to 5 % w.e.f. 02.11.2018.
- xvii. Market Access Initiative (MAI): The objective of scheme is to promote India's exports on a sustained basis. The scheme is formulated on product-focus country approach to evolve specific market and specific product through market studies/survey.The following activities are eligible for financial assistance under the scheme:
7. o Marketing Projects Abroad
8. o Capacity Building
9. o Support for Statutory Compliances
10. o Studies
11. o Project Development
12. o Developing Foreign Trade Facilitation web Portal
13. o To support Cottage and handicrafts units
- xviii. Textiles  India  2017: The Ministry  of  Textiles  organized  a  3  day  mega  textile  exhibition namely,  Textiles  India  2017  from  30 th June  to  2 nd July  2017  at  Gujarat.  The  Principal objective of organizing the said mega event was to bring all segments of the Textiles sector under one umbrella trade event and showcase the strength of the Indian Textiles sector to the world.  This  event  witnessed  participation  of  buyers  from  105  countries,  international delegates and representatives and artisans and weavers.

The above initiatives/ schemes are also aimed at setting up of new units as well as expansion of the existing units which have potential for generating large employment opportunities.

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