Lok Sabha Question No. 1869 (UNSTARRED), answered on 2021-07-30
Subject: Textile Production Capacity
Ministry: TEXTILES
Asked by: Balashowry Vallabbhaneni

## TEXTILE PRODUCTION CAPACITY

## 1869.  SHRI BALASHOWRY VALLABHANENI:

## Will the Minister of TEXTILES वस्त्र मंत्री

be pleased to state :

(a) whether it has come to the notice of Ministry that huge production capacity is lying idle in textile and  clothing  industry  due  to  sluggish  exports,  poor  domestic  demand  and  growing  imports  from Bangladesh, Sri Lanka, etc.;

(b) whether the COVID pandemic has further crippled this sector;

(c) if so, the manner in which the Ministry is handling this grave and serious scenario;

(d) whether the textile and clothing industry is in urgent need of immediate relief from the Government;

(e) if so, whether any proposal has been submitted by this Ministry to the Ministry of Finance in this regard;

(f) if so, the details thereof and the response of the Ministry of Finance thereto; and

(g)  whether  any  package  has  been  announced  under Atmanirbhar  Bharat package for textile industry and if so, the details thereof?

## उत्तर

## ANSWER

## वस्त्र राज् यमंत्री ( श्रीमती दर्शना जरदोर् )

## THE MINISTER OF STATE IN THE MINISTRY OF TEXTILES (SMT. DARSHANA JARDOSH)

(a) & (b): The  global  pandemic  of  Covid-19  has  affected  adversely  the textile  sector  due  to restriction on social gathering, migration of laborers, disruption of supply chain, thus affecting all the stakeholders from farmers to traders/exporters in the value chain. However, the situation improved with time and production and exports have looked up.  Due to unorganized and decentralized nature of textile sector, the data with regards to production capacity lying idle with the agencies spread in rural areas across the country is not available.

Imports  from  both  Bangladesh  and  Sri  Lanka  have  fallen  down  in  2020-21  is  as  compared  to preceding year. Details of Imports from Bangladesh and Sri Lanka are given below:

| COUNTRY              |        2019-2020 | %Variation   |        2020-2021 | %Variation   |
|----------------------|------------------|--------------|------------------|--------------|
| Bangladesh           | 530413           | 34.07        | 420244           | -20.77       |
| %To Total Import     |      9.19        |              |      9.69        |              |
| Sri Lanka            |  86591.6         | -20.76       |  67981.8         | -21.49       |
| %To Total Import     |      1.5         |              |      1.57        |              |
| India's Total Import |      5.76961e+06 | 11.63        |      4.33508e+06 | -24.86       |

(c): The government has taken following initiatives/ measures to help ameliorate the conditions in textile sector to boost production, marketing and job opportunities in the sector on pan-India:

- i) Government has  given  its  approval  for  continuation  of  Rebate  of  State  and  Central  Taxes  and Levies (RoSCTL) on exports of Apparel/Garments and Made-ups till 31st March 2024. The other textiles products which are not covered under the RoSCTL shall be eligible to avail the benefits, if any,  under  Remission  of  Duties  and  Taxes  on  Exported  Products  (RoDTEP)  along  with  other products.  The  remission  of  duty  and  tax  under  RoSCTL  and  RoDTEP  scheme  will  make  our products cost competitive in the international markets.
2. ii) The Government has announced a special economic package viz . AatmaNirbhar Bharat Abhiyaan for  boosting  economy  of  the  country  and  making  India  self-reliant.  Relief  and  credit  support measures have been announced for various sectors including MSMEs. The weavers & artisans of textile sector can avail benefits of these relief and credit support measures.
3. iii) Union  Budget  2021-22  announcements  include  launch  of  the  scheme  of  setting  up  mega investment textile parks. Seven mega textile parks will be set up in next three years. These parks will enable the textile industry to become globally competitive, attract large investment and boost employment generation. The scheme will enable creation of global champions in exports.
4. iv) The  government  has  announced  a  Production  Linked  Investment  scheme  of  Rs  10,683/-  crore over  a  five-year  period  covering  MMF  and  Technical  Textiles  sector which  will  create  global champions in exports. Besides, domestic production in textile sector will also grow substantially.
- v) Ministry of Textiles has undertaken to develop Craft Villages in select Handloom and Handicraft pockets  of  the  country  on  important  tourist  circuits  for  integrated  sustainable  development  of Handlooms,  crafts  and  tourism  with  the  combined  effort  of  both  the  State  and  the  Central Governments. 12 such craft villages are in the process of being set up now.
6. vi) To  support  the  handloom  and  handicraft  sectors  and  to  enable  wider  market  for  handloom weavers/artisans/producers, steps have been taken to on-board weavers/artisans on Government eMarket  place  (GeM)  to  enable  them  to  sell  their  products  directly  to  various  Government Departments and organizations. So far, about 1.75 Lakh weavers have been on-boarded on the GeM portal.
7. vii) In light of the extraordinary circumstances witnessed in the wake of the COVID-19 outbreak, to augment  liquidity  support,  opportunity  for  advance  release  of  Technology  Upgradation  Funds Scheme (TUFS) subsidy to the units was extended against submission of Bank Guarantee (BG) for  recommended  claims  under  TUFS/Amended-TUFS  from  April  2020  to  October  2020.  The measure is aimed at reviving the industry by restoring financial viability and addressing pressing concerns faced by units regarding liquidity and fund availability.
8. viii) A  new  industry  valuing  Rs.7000  Crore  has  been  developed  wherein  over  1100  indigenous manufactures  all  over  the  country  are  now  producing  a  peak  of  4.5  lakh  units  of  PPE  Body Coveralls per day. India has become Atma Nirbhar -self reliant and also the second largest PPE manufacturer in the world.

(d) to (g): The Government of India announced a special economic and comprehensive package viz. AatmaNirbhar Bharat package for boosting economy of the country and making India self-reliant. Relief and credit support measures announced for various sectors. The Government of India had announced AatmaNirbhar Bharat Packages (ANB) 1.0, 2.0 and 3.0 on 13 th May,  2020  to  17 th May,  2020,  12 th October,  2020  and  12 th November  2020  respectively.  There  is  no  specific  fund  earmarked  for  any specific sector in the AatmaNirbhar Bharat Package. It is the composite package for all sectors mainly for helping them in improving their liquidity situation. This was done in the light of COVID-19 for all MSMEs through the banking channel.