Lok Sabha Question No. 5607 (UNSTARRED), answered on 2022-04-06
Subject: Cotton Textile Exports
Ministry: TEXTILES
Asked by: Komati Reddy Venkat Reddy, Manne Srinivas Reddy

## LOK SABHA UNSTARRED QUESTION NO. 5607 TO BE ANSWERED ON 06.04.2022

## COTTON TEXTILE EXPORTS

5607.  SHRI KOMATI REDDY VENKAT REDDY: SHRI MANNE SRINIVAS REDDY:

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

- (a) whether cotton textile exports is more than $15bn;
- (b) if so, the details since 2015 onwards, country-wise; and
- (c) the incentives being given to exporters since 2014 and the results yielded?

## उत्तर

ANSWER

## वस्त्र राज् य मंत्री ( श्रीमती दर्शना जरदोर् ) THE MINISTER OF STATE FOR TEXTILES

(SMT. DARSHANA JARDOSH)

(a) & (b): There is record export of cotton textiles during 2021-22 (Apr-Feb). The details of India's cotton textile exports (raw cotton, yarn, fabrics, made-ups etc.), are as below:

| (Values in USD million)   | (Values in USD million)   | (Values in USD million)   | (Values in USD million)   | (Values in USD million)   | (Values in USD million)   | (Values in USD million)   | (Values in USD million)   |
|---------------------------|---------------------------|---------------------------|---------------------------|---------------------------|---------------------------|---------------------------|---------------------------|
| Country of destination    | 2015-16                   | 2016-17                   | 2017-18                   | 2018-19                   | 2019-20                   | 2020-21                   | 2021-22 (Apr-Feb)         |
| U S A                     | 2,112                     | 2,142                     | 2,148                     | 2,363                     | 2,323                     | 2,688                     | 3,150                     |
| BANGLADESH PR             | 1,684                     | 1,669                     | 1,899                     | 1,971                     | 1,743                     | 1,862                     | 4,283                     |
| CHINA P RP                | 1,712                     | 1,367                     | 1,036                     | 1,814                     | 803                       | 1,303                     | 1,243                     |
| VIETNAM SOC REP           | 275                       | 292                       | 442                       | 467                       | 215                       | 426                       | 532                       |
| SRI LANKA DSR             | 352                       | 376                       | 385                       | 440                       | 467                       | 423                       | 584                       |
| GERMANY                   | 250                       | 260                       | 291                       | 265                       | 254                       | 250                       | 259                       |
| U K                       | 247                       | 235                       | 231                       | 253                       | 239                       | 213                       | 240                       |
| KOREA RP                  | 205                       | 203                       | 215                       | 254                       | 200                       | 209                       | 282                       |
| U ARAB EMTS               | 226                       | 186                       | 167                       | 154                       | 182                       | 205                       | 230                       |
| PERU                      | 96                        | 108                       | 136                       | 133                       | 143                       | 151                       | 195                       |
| Other countries           | 3,990                     | 3,692                     | 4,262                     | 4,292                     | 3,695                     | 3,398                     | 4,683                     |
| Grand Total               | 11,149                    | 10,529                    | 11,212                    | 12,405                    | 10,263                    | 11,128                    | 15,682                    |

Source: DGCI&S provisional data

(c): Government  has  been  supporting  textile  sector  by  following  schemes/  programmes  aimed  at increasing competitiveness of Indian textile exports:

- i. Merchandise Export from India Scheme (MEIS) was in operation from 1.4.2015 till 31.12.2020 for  exports  made  (including  textiles  products)  with  an  objective  to  offset  infrastructural inefficiencies and associated costs involved in exporting goods/ products which were produced/ manufactured in India.
- ii. To  promote  the  textile  exports,  Government  announced  a  Special  Package  for  garments  and made-ups  sectors.  The  package  offered  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.
- iii. The RoSL scheme was replaced by Rebate of State and Central Taxes and Levies (RoSCTL) scheme w.e.f 7th March 2019. In order to make textiles products cost competitive and adopting the principle of zero rated export, Government extended continuation of RoSCTL on exports of Apparel/Garments (Chapters-61 & 62) and Made-ups (Chapter-63) till 31st March 2024. The other  textiles  products  (excluding  Chapter  61,  62  and  63)  which  are  not  covered  under  the RoSCTL are covered under Remissions of Duties and Taxes on Exported Products (RoDTEP) along with other products.
- iv. Government  enhanced  interest  equalization  rate  for  pre  and  post  shipment  credit  for  exports done by MSMEs including textiles sector from 3% to 5% w.e.f. 02.11.2018. Benefits of Interest Equalization Scheme extended to merchant exporters from 02.01.2019 which was earlier limited to only manufacturing exporters.
- v. To promote production of MMF Apparel, MMF Fabrics and Products of Technical Textiles in the country, the Government has approved the Production Linked Incentive (PLI) Scheme for Textiles.  The  selected  companies will be eligible to get incentives on achieving the threshold investment  and  threshold/  incremental  turnover.  The  Scheme  has  two  parts:  Part-1  &  Part-2. Under Scheme Part-1, 15% incentive will be provided on attaining required turnover in Year-1. Under Scheme Part-2, 11% incentive will be provided on attaining required turnover in Year-1. Incentive will be reduced by 1% every year from Year-2 onward till the Year-5 under both parts of the Scheme.
- vi. In  addition,  Government  has  approved  setting  up  of  7  (seven)  PM  Mega  Integrated  Textile Regions and Apparel (PM MITRA) Parks in Greenfield/ Brownfield sites to develop world class infrastructure including plug and play facility. There is provision for incentive to manufacturing units  for  setting  up  early  in  PM  MITRA  Parks.  This  is  only  available  to  those  manufacturing companies who are not availing Textile PLI scheme benefits.

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