Lok Sabha Question No. 3063 (UNSTARRED), answered on 2021-08-06
Subject: FDI in Textile Sector
Ministry: TEXTILES
Asked by: Poonam (Mahajan) Vajendla Rao, Mansukhbhai Dhanjibhai Vasava

## FDI IN TEXTILE SECTOR

## 3063.  SHRIMATI POONAM MAHAJAN: SHRI MANSUKHBHAI DHANJIBHAI VASAVA:

## Will the Minister of TEXTILES वस्त्र मंत्री

be pleased to state :

(a) the total amount received as Foreign Direct Investment (FDI) in textile sector during the last five years, sector-wise and country-wise;

(b)  the  details  of  the  country  which  has  invested  the  maximum  amount  as  FDI  in  textile  sector indicating the amount invested;

(c) the details of the new jobs, if any, created through the FDI inflow during the said period, State-wise;

(d) the impact of the FDI on the overall growth of the sector; and

(e) the efforts made by the Government to ensure maximum utilization of funds received through FDI and to protect the interest of Artisans, Weavers and Labourers in Textile Sector, etc.?

## उत्तर

## ANSWER

## वस्त्र राज् य मंत्री ( श्रीमती दर्शना जरदोर् )

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

(a): A statement on Financial Year wise overall FDI equity inflows and Country-wise FDI equity inflows  from  April  2016  to  March'2021  of  Textiles  sector(including  dyed,  printed)  is  given  at Annexure-I .

(b): Japan has invested the maximum amount US$ 381.47 million as FDI in textiles sector.

(c): As per  Government  FDI  Policy  for  Textiles  Sector,  Textiles  is  open  to  FDI  under  automatic route.  Nearly  80%  of  textiles  units  in  India  are  MSME  resulting  in  fragmented  nature  of  industry. Therefore, the data on jobs created is not centrally maintained.

(d): FDI  inflows  serve  to  augment  domestic  capital  and  help  to  promote  industrial  development thereby  increase  its  production  capacity,  export  competitiveness,  employment  opportunities  across textiles  sector.  Such  investments  bring  international  best  practices  and  latest  technologies  in  various sectors leading to overall economic growth and development in the country.

(e): There  are  no  FDI  specific  incentives  for  artisans,  weavers  and  labourers  provided  by  the Government, however, a statement on overall efforts  made by  the Government to protect  interest  of Artisans, Weavers and Labourers in textiles sector is at Annexure-II.

## STATEMENT ON FINANCIAL YEAR WISE FDI EQUITY INFLOWS FROM APRIL 2016 TO MARCH 2021 Sector TEXTILES (INCLUDING DYED, PRINTED)

| Sl No   | Financial Year   | FDI Equity inflow in US$ million   |
|---------|------------------|------------------------------------|
| 1       | 2016-17          | 618.95                             |
| 2       | 2017-18          | 454.45                             |
| 3       | 2018-19          | 198.14                             |
| 4       | 2019-20          | 323.52                             |
| 5       | 2020-21          | 298.67                             |
|         | Grand Total      | 1,893.73                           |

## STATEMENT ON FINANCIAL YEAR WISE FDI EQUITY INFLOWS

## FROM APRIL 2016 TO MARCH 2021 Sector TEXTILES (INCLUDING DYED,PRINTED)

| Sl No   | Country     | 2016-17 Apr-Mar    | 2017-18 Apr-Mar    | 2018-19 Apr-Mar    | 2019-20 Apr-Mar    | 2020-21 Apr-Mar    | Total   |
|---------|-------------|--------------------|--------------------|--------------------|--------------------|--------------------|---------|
|         |             | FDI in US$ million | FDI in US$ million | FDI in US$ million | FDI in US$ million | FDI in US$ million |         |
| 1       | Australia   | 0.87               | 2.18               | 0.01               | 0.04               | 0.00               | 3.10    |
| 2       | Austria     | 0.05               | 0.12               | 0.09               | 0.10               | 0.09               | 0.46    |
| 3       | Belgium     | 5.22               | 0.00               | 0.02               | 0.01               | 20.20              | 25.46   |
| 4       | Canada      | 0.57               | 80.79              | 0.05               | 0.88               | 0.14               | 82.44   |
| 5       | China       | 0.39               | 0.00               | 0.69               | 6.59               | 1.65               | 9.32    |
| 6       | Cyprus      | 0.00               | 101.46             | 17.54              | 103.21             | 0.00               | 222.20  |
| 7       | Denmark     | 0.00               | 0.00               | 0.00               | 0.01               | 0.00               | 0.01    |
| 8       | France      | 2.19               | 0.13               | 0.07               | 0.02               | 0.26               | 2.66    |
| 9       | Germany     | 23.13              | 5.53               | 4.66               | 2.57               | 1.00               | 36.90   |
| 10      | HongKong    | 0.39               | 0.77               | 1.74               | 1.62               | 1.58               | 6.11    |
| 11      | Hungary     | 0.00               | 0.00               | 0.00               | 3.22               | 0.00               | 3.22    |
| 12      | Israel      | 1.72               | 1.52               | 0.94               | 0.00               | 3.26               | 7.44    |
| 13      | Italy       | 11.67              | 0.28               | 14.13              | 12.16              | 24.53              | 62.78   |
| 14      | Japan       | 49.98              | 50.75              | 0.41               | 71.77              | 208.56             | 381.47  |
| 15      | Lebanon     | 0.00               | 0.00               | 0.10               | 0.00               | 0.01               | 0.11    |
| 16      | South Korea | 0.66               | 0.00               | 21.32              | 0.38               | 0.30               | 22.67   |
| 17      | Kuwait      | 0.00               | 0.00               | 0.00               | 0.00               | 0.00               | 0.00    |
| 18      | Luxembourg  | 0.00               | 0.00               | 6.35               | 0.00               | 0.00               | 6.35    |
| 19      | Malaysia    | 0.00               | 0.02               | 0.00               | 0.00               | 0.00               | 0.02    |

|   20 | Mauritius          |   33.30 |   153.08 |   81.00 |   38.02 | 28.58       | 333.97      |
|------|--------------------|---------|----------|---------|---------|-------------|-------------|
|   21 | Netherland         |  223.04 |     1.1  |    1.16 |   53.23 | 5.78        | 284.30      |
|   22 | Norway             |    0.52 |     0    |    0    |    0    | 0.00        | 0.52        |
|   23 | Oman               |    0    |     0.25 |    2.09 |    0    | 0.00        | 2.33        |
|   24 | Poland             |    0    |     0.19 |    0.15 |   10.57 | 0.06        | 10.97       |
|   25 | Qatar              |    0    |     0    |    0.05 |    0    | 0.00        | 0.05        |
|   26 | Russia             |    0    |     0    |    0.12 |    0    | 0.00        | 0.13        |
|   27 | Saudi Arabia       |    0    |     0    |    0    |    0    | 0.00        | 0.00        |
|   28 | Singapore          |  190.51 |     0.7  |    6.93 |    9    | 0.23 207.37 | 0.23 207.37 |
|   29 | Spain              |    5.67 |     0    |    1.82 |    0    | 0.06        | 7.55        |
|   30 | Sri Lanka          |    0.11 |     0.96 |    0    |    0    | 0.00        | 1.07        |
|   31 | Sweden             |    0    |     0    |    0.11 |    0    | 0.00        | 0.11        |
|   32 | Switzerland        |    0    |     0.88 |    0.03 |    0.03 | 0.00        | 0.94        |
|   33 | Taiwan             |    0.23 |     0    |    0    |    0    | 0.00        | 0.23        |
|   34 | Thailand           |    0.09 |     0.17 |    0    |    0    | 0.00        | 0.25        |
|   35 | Turkey             |    0.05 |     0    |    7.11 |    0    | 0.00        | 7.16        |
|   36 | UAE                |    3.07 |     8.15 |    9.04 |    2.29 | 0.54        | 23.09       |
|   37 | United Kingdom     |    0.16 |     0.94 |    0.99 |    0.43 | 0.10        | 2.61        |
|   38 | U.S.A              |   64.94 |    43.28 |   14.22 |    4.99 | 1.02        | 128.45      |
|   39 | British Virginia   |    0    |     0    |    0.05 |    2.38 | 0.71        | 3.13        |
|   40 | Vietnam            |    0    |     0    |    0    |    0    | 0.00        | 0.00        |
|   41 | Kenya              |    0    |     0    |    0    |    0    | 0.00        | 0.00        |
|   42 | Egypt              |    0.43 |     0.74 |    0.16 |    0    | 0.00        | 1.32        |
|   43 | Virgin Islands(US) |    0    |     0.47 |    0    |    0    | 0.00        | 0.47        |
|   44 | Seychelles         |    0    |     0    |    0    |    0    | 0.00        | 0.00        |
|   45 | SAMOA ISLANDS      |    0    |     0    |    4.98 |    0    | 0.00        | 4.98        |
|   46 | Niue Island        |    0    |     0    |    0.01 |    0    | 0.00        | 0.01        |

## Efforts made by the Government to protect interest of Artisans, Weavers and Labourers in textiles sector

1. National Handloom Development Programme and National Handicrafts Development Programme aim at holistic development of artisans/weavers through integrated approach.
2. Under various schematic interventions for handloom workers, financial assistance is provided to the eligible handloom agencies/weavers for raw materials, purchase of upgraded looms & accessories, design  innovation  &  product  diversification,  infrastructure  development,  marketing  of  handloom products in domestic as well as overseas markets, Mudra loans at concessional rates, etc.  Further, to overcome the challenges being faced by the workers, the Government has taken following steps for their welfare and to promote handlooms across the country:
3. (i) To support the handloom sector and to enable wider market for handloom weavers, steps have been taken to on-board weavers on Government e-Market place (GeM) to enable them to sell their products directly to various Government Departments and organizations. So far about 1.50 Lakh weavers have been on-boarded on the GeM portal.
4. (ii) To enhance productivity, marketing capabilities and ensure better incomes, 125 Handloom Producer companies have been formed in different States.
5. (iii) Under Concessional Credit/Weaver MUDRA Scheme, margin money assistance at 20% of the loan amount subject to a maximum of Rs. 10,000/- per weaver, interest subvention upto 7% and credit guarantee fees on loans for a period of three (3) years are given.
6. (iv) Design Resource Centres (DRCs) have been set up in Weavers' Service Centres (WSCs) at Delhi, Mumbai, Varanasi, Ahmedabad, Jaipur, Bhubaneswar and Guwahati, through NIFT with the objective to build and create design-oriented excellence in the Handloom Sector and to facilitate weavers, exporters, manufacturers and designers access design repositories for sample/product improvisation and development.
7. (v) To promote marketing of handloom products, Handloom Export Promotion Council (HEPC) has  been  organizing  International  Fairs  in  virtual  mode.  During  the  year  2020-21,  12 handloom fairs were organized in virtual  mode. Besides,  domestic  marketing  events  were also  organized  in  different  parts  of  the  country  for  the  weavers  to  market  and  sell  their products.
3. Under  'National  Handicraft  Development  Programme  [NHDP]'  and  Handicrafts  Cluster Development  Scheme  [CHCDS],  artisans  of  handicraft  sector  are  provided  sustainable  livelihood opportunities. to the artisans throughout the country

## NHDP has following components:

- (i) Base Line Survey & Mobilization of Artisans under Ambedkar Hastshilp Vikas Yojana,
- (ii) Design & Technology Up gradation,
- (iii) Human Resource Development ,
- (iv) Direct Benefit to Artisans,+
- (v) Infrastructure and Technology Support,
- (vi) Research and Development,
- (vii) Marketing Support & Services.

The CHCDS has following components:

- (i) Mega Cluster,
- (ii) Special projects under Integrated Development and Promotion of Handicraft (IDPH).