Lok Sabha Question No. 4613 (UNSTARRED), answered on 2023-03-29
Subject: Subsidy/Tax Benefit for Textiles
Ministry: TEXTILES
Asked by: Pratima Mondal

## SUBSIDY/TAX BENEFIT FOR TEXTILES

## 4613. SHRIMATI PRATIMA MONDAL:

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

(a) whether the Government provides subsidy/ tax benefit for establishing textiles manufacturing units in the country and if so, the details thereof;

(b)  whether the Government has any plan to revive textile and handloom/handicraft industries in the country, if so, the details thereof;

(c) the steps taken by the Government to bring relief to the agitating workers and owners of textile units demanding the cut in GST rates;

(d) if so, the details thereof; and

(e) if not, the reasons therefor?

## उत्तर

## ANSWER

## वस्त्र राज् य मंत्री ( श्रीमती दर्शना जरदोर् )

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

(a) & (b): Government  is  implementing  various  schemes  viz.  the  SAMARTH-  Scheme  for Capacity  Building  in  Textile  Sector,  Scheme  for  Integrated  Textile  Parks,  Integrated  Processing Development Scheme, Silk Samagra 2.0, Jute (ICARE- Improved Cultivation and Advanced Retting Exercise),  Amended  Technology  Upgradation  Fund  Scheme,  National  Handloom  Development Programme, Raw Material Supply Scheme, National Handicraft Development Programme, Comprehensive Handicrafts Cluster Development Scheme, Integrated Wool Development Programme etc. catering exclusively for promotion and development of textile sector in the country. These schemes include subsidies and incentives for the growth of the textile sector.

Further, the  Government  has  taken  following  major  initiatives/  measures  in  textile  sector  to revive the textile industry on pan-India basis:

- i) Government  has  approved  setting  up  of  Seven  Pradhan  Mantri  Mega  Integrated  Textile Region and Apparel (PM MITRA) Parks in Greenfield/Brownfield sites with an outlay of Rs. 4,445 crore for a period of seven years upto 2027-28. These parks will enable the textile industry  to  become  globally  competitive,  attract  large  investment  and  boost  employment generation.
2. ii) Government has approved the Production Linked Incentive (PLI) Scheme for Textiles, with an  approved  outlay  of  Rs  10,683  crore,  to  promote  production  of  MMF  Apparel,  MMF Fabrics and Products of Technical Textiles in the country to enable Textile sector to achieve size and scale and to become competitive.
3. iii) The  scheme  of  Rebate  of  State  and  central  Taxes  and  Levies  (RoSCTL)  effective  from March 2019 has been continued till 31 st March 2024 for Exports of Apparel / Garments and made-ups in order to make the textile sector competitive in international market.
4. iv) Government has allocated an outlay of Rs.1,480 Crore for advance research and innovation in Technical Textiles sector. Research topics in 94 categories covering; speciality fibres and composites, geotextiles, agro textiles, protective textiles, medical textiles, defence textiles, sports  textiles,  and  environmentally  friendly/biodegradable  technical  textiles  have  been identified  and  research  proposals  invited.  Eighty  Nine  (89)  research  projects  covering research institutes like IITs, DRDO (Defence Research & Development Organization) CSIR (Council  of  Scientific  and  Industrial  Research)  and  Textiles  Research  Associations,  with total estimated cost of Rs.264 Crore has been approved.

(c) to (e): GST rates are prescribed on the recommendation of GST Council. In its 45 th meeting, GST Council made a recommendation for revising GST rates on textile products and related services from  5%  to  12%  to  correct  inverted  duty  structure  in  these  goods  and  services.  Subsequently,  GST Council in its 46 th meeting decided to defer the increase in GST rate on textile and textiles related job work services. Consequently, there has been no change in GST rate on garments and fabrics.

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