Lok Sabha Question No. 1924 (UNSTARRED), answered on 2021-07-30
Subject: Textile Exports
Ministry: TEXTILES
Asked by: Gaddam Ranjith Reddy

## LOK SABHA UNSTARRED QUESTION NO. 1924 TO BE ANSWERED ON 30.07.2021

## TEXTILE EXPORTS

## 1924.  DR. G. RANJITH REDDY:

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

- (a) the details of textile exports of India, Bangladesh, Vietnam and Cambodia during the last three years and the current year, year-wise and country-wise;
- (b)  whether  Bangladesh,  Vietnam  and  Cambodia  are  giving  tough  competition  to  India  in  textile exports;
- (c) if so, the manner in which the Government proposes to address this challenge;
- (d)  the  manner  in  which  the  Technology  Upgradation  Fund  Scheme  (TUFS)  is  helping  to  push  our textile exports;
- (e) whether it is true that India is planning to export raw cotton to Bangladesh; and
- (f) if so, the details thereof and reasons therefor?

## उत्तर

ANSWER

## वस्त्र राज् यमंत्री ( श्रीमती दर्शना जरदोर् )

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

(a): The details of textile exports (Chapter-50 to 63) of India, Bangladesh, Vietnam and Cambodia is as follows:

(USD billion)

| Country    |   2018 |   2019 |   2020 | 2021 (January to June)**   |
|------------|--------|--------|--------|----------------------------|
| India      |  37.11 |  35.49 |  29.61 | 19.89                      |
| Bangladesh |  40.78 |  42.49 |  37.95 | Not available              |
| Vietnam    |  36.66 |  39.42 |  37.1  | Not available              |
| Cambodia   |   8.01 |   8.49 |   7.77 | Not available              |

Source: Trademap. (**) Source: DGCIS, Data for 2021 (January to June) is provisional.

- (b): High tariffs faced by Indian exporters in key markets such as EU & UK as compared to zero duty  access  given  to  competing  nations  like  Bangladesh  and  Cambodia  is  affecting  India's  exports performance.  Textile industry has been hugely affected due to outbreak of COVID-19 pandemic.

(c): In  order  to  make  textiles  products  cost  competitive  and  adopting  the  principle  of  zero  rated export, the Union Cabinet has given its approval on 14th July 2021 for continuation of Rebate of State and Central Taxes and Levies (RoSCTL) with the same rate as notified by Ministry of Textiles vide Notification dated 8th March 2019 on exports of Apparel/Garments (Chapters-61 & 62) and Made-ups (Chapter-63) in exclusion from RoDTEP scheme for these chapters. The RoSCTL scheme will continue till  31st  March  2024.  The  other  textiles  products  (excluding  Chapter  61,  62  and  63)  which  are  not covered under the RoSCTL shall be eligible to avail the benefits, if any, under RoDTEP along with other products.

Budget  2021-22  announcements  includes  scheme  of  Mega  Integrated  Textile  Region  and  Apparel (MITRA)  Parks  which  will  enable  textile  industry  to  become  globally  competitive,  attract  large investments and boost employment generation.

The  Cabinet  has  approved  Production-Linked  Incentive  (PLI)  Scheme  for  Textiles  products:  MMF segment and technical textiles for enhancing India's manufacturing capabilities and enhancing exports with an approved financial outlay of Rs 10,683 crore over a five year period.

(d): Technology Upgradation Fund Scheme (TUFS) is implemented towards technology upgradation and modernization of textiles industry in the country. The ongoing Amended TUFS has been introduced with  the  objective to  facilitate  augmenting  of  investment,  productivity,  quality,  employment, exports along  with  import  substitution  in  textile  industry  and  also  to  indirectly promote  investment  in  textile machinery manufacturing. As per the report of Impact Assessment of TUFS/ATUFS carried out through NITI  Aayog  in  2019-20,  TUFS  benefitted  most  companies  in  terms  of  product  development and innovative practices due to addition of technologically advanced machines. Exports in textile and apparel industry grew along with increase in production and overall competitiveness.

(e) & (f): Details of export of raw cotton from India to Bangladesh is as follows:

(USD Million)

| Commodity              |   2018-19 |   2019-20 |   2020-21* |   2021-22(upto Apr 2021)* |
|------------------------|-----------|-----------|------------|---------------------------|
| RAWCOTTON INCLD. WASTE |    695.19 |    625.46 |     799.23 |                     92.73 |

Source: DGCIS,* Figure for FY 2020-21 and 2021-22 are provisional and subject to revision