Lok Sabha Question No. 3308 (UNSTARRED), answered on 2020-03-13
Subject: Contribution to GDP by Textile Industry
Ministry: TEXTILES
Asked by: Manoj Kishorbhai Kotak, Chandra Sekhar Bellana

## CONTRIBUTION TO GDP BY TEXTILE INDUSTRY

## 3308.    SHRI MANOJ KOTAK: SHRI CHANDRA SEKHAR BELLANA:

## Will the Minister of TEXTILES वस्त्र मंत्री

be pleased to state :

(a) whether the Government is aware that the textile industry contributes over 13 per cent of the industrial output and 2 per cent to the GDP of India;

(b) if so, the details thereof;

(c)  whether  the  textile  industries  are  experiencing  pressure  on  exports  in  the  past  few  years resulting in a fall in exports; and

(d) if so, the details thereof and the steps taken by the Government to boost the textile industries in India?

## उत्तर

## ANSWER

## वस्त्र मंत्री ( श्रीमती स्मृतत ज़ूबिन इरानी )

MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

(a) & (b): Share of Textiles Sector to India's GDP and GDP of Manufacturing   Sector (at Basic prices) are 2.2% and 12.22% respectively during 2017-18 as per the National Accounts Statistics, 2018.

(c) & (d): Textile  industry  is  facing  some  pressures  and  problems  in  the  past  few  years  like technological  obsolescence,  high  input  cost  (power  &  capital),  poor  credit  access,  fragmented units, absence of fibre neutrality etc.

In order to address pressures/problems faced by textiles sector, Government has taken number of steps  to  boost  the  textile  industry's  export  and  production  which  inter-alia  includes  the following:-

-  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 benefits for Single Brand Product Retail Trading and for Multi Brand Retail Trading
-  Export Promotion Councils are  promoted  to  participate  and  organize  fairs/exhibitions  and standalone shows in India & overseas markets to enhance exports and access new markets.
-  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.

-  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.
-  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 202021 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.
-  Apart from the aforesaid programmes, Government has been implementing various schemes for  boosting  exports  in  the  textile  sector.  These  include  Integrated  Processing  Development Scheme (IPDS), North Eastern Region Textile Promotion Scheme (NERTPS), etc.