Lok Sabha Question No. 108 (STARRED), answered on 2022-02-09
Subject: Apparel and Garment Exports
Ministry: TEXTILES
Asked by: Dhanush M Kumar, C.N. Annadurai

## LOK SABHA STARRED QUESTION NO. *108 TO BE ANSWERED ON 09.02.2022

## APPAREL AND GARMENT EXPORTS

*108.  SHRI DHANUSH M. KUMAR: SHRI C.N. ANNADURAI:

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

- (a) whether there is any proposal to set up apparel and garment making centres in various parts of the country and if so, the details thereof along with the aims and objectives for setting up of such centres;
- (b) the details of such centres set up and functioning in the country, State-wise;
- (c) whether the Indian apparel markets are facing stiff competition from many Asian countries;
- (d) if so, whether India is apparently lagging behind from its competitors and if so, the details thereof and the reasons therefor;
- (e) whether the Indian apparel/garment exports has been much lower as compared to its competitors; and
- (f) if so, the steps taken by the Government to strengthen its position and get higher shares of the export in the markets of America and European countries?

उत्तर

ANSWER

## वस्त्र मंत्री ( श्री पीयूष गोयल )

MINISTER OF TEXTILES (SHRI PIYUSH GOYAL)

- (a) to (f):A statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PART (a) TO (f) OF LOK SABHA STARRED QUESTION NO.*108 DUE FOR ANSWERED ON 09.02.2022 RAISED BY SHRI DHANUS M. KUMAR  AND  SHRI  C.  N.  ANNADURAI  REGARDING    'APPAREL  AND  GARMENT EXPORT.'

(a) & (b): With an objective to provide financial assistance to a group of entrepreneurs to establish state-of-the-art  infrastructure  facilities  in  a  cluster  for  setting  up  their  textile  units,  confirming  to international environmental and social standards and thereby mobilize private investment in the textile sector  and  generate  fresh  employment opportunities, the government has been implementing Scheme for Integrated Textile Parks (SITP).   The project cost covers common infrastructure and buildings for production/ support activities (including textile machinery, textiles engineering, accessories, packaging) depending on the need of Textile Park.  The Scheme provides provisions for setting up units of textile value chain viz. spinning, weaving, processing and garmenting etc. Under the Scheme, out of 56 textiles parks sanctioned, 27 textiles parks have been completed and 29 textile parks are at various stages of implementation.   So far, a total of Rs.1477.83 crores have been released under the Scheme attracting investment of Rs.13,474.84 crs, 1947 units operationalized  and have generated 1,02,494 jobs.

The total financial support by GoI is upto 40% of the project cost subject to a maximum of Rs.40 crores. Support will be provided @90% of the project cost subject to a ceiling of Rs.40 crores for first two projects (each) in the States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim, Himachal Pradesh, Uttarakhand and UT of Laddakh and UT of Jammu & Kashmir.

The  Government  is  also  providing  financial  assistance  under  North  Eastern  Region  Textile Promotion Scheme (NERTPS) for each Apparel and Garment Making Center in North East states @ Rs.18.18  crs  per  centre.  Each  Apparel  and  Garment  Making  Center  consisting  of  3  units  of  100 machines each is set up with 100% Government funding and the facilities are available to entrepreneurs having  background  in  textiles/  field  of  fashion  for  starting  their  units  in  'Plug  &  Play'  mode  for promotion of entrepreneurship in apparel manufacturing.

The details of funds released to the North Eastern states are as under:-

|   S.No. | States            |   Fund released (Rs. in Cr) |
|---------|-------------------|-----------------------------|
|       1 | Tripura           |                       14.62 |
|       2 | Sikkim            |                        8.76 |
|       3 | Mizoram           |                       14.02 |
|       4 | Nagaland          |                       14.62 |
|       5 | Arunachal Pradesh |                       14.62 |
|       6 | Manipur           |                       14.62 |
|       7 | Meghalaya         |                       14.02 |
|       8 | Assam             |                       14.62 |

(c) to (e): Indian apparel have been facing an average import duty of 9.6 % in European Union as against  zero  duty  for  similar  products  from  Bangladesh,  Cambodia,  Turkey  and  Sri  Lanka.    India  is currently  engaged  with  United  Arab  Emirates,  Australia,  Israel,  United  Kingdom,  European  Union (block of 27 EU countries) and European Free Trade Association (block of 4 European  countries) for Free Trade Agreements, wherein Government is negotiating  mutually beneficial agreements.

## Export of RMG during April-December is as below:-

(In USD million)

|   April - December 2020-2021 |   April - December 2021-2022 | Percentage increase   |
|------------------------------|------------------------------|-----------------------|
|                         8202 |                        11128 | 36%                   |

(Source: DGCIS )

- (f): The steps taken by the Government to strengthen its position and get higher share of the export in the markets of America and European countries :-
- (i)    Production  Linked  Incentive  Scheme  for  textiles  for  Man  Made  Fibre,  Apparel  &  Fabrics  and Technical Textiles has been launched in 2021-22. It is expected to attract investment of Rs. 19000 crore for manufacturing of notified products and will provide employment opportunity for approx. 7.5 lakh persons.
- (ii) PM- MITRA Park Scheme to set up 7 Mega Textiles Manufacturing Parks in the country has also been launched in 2021-22. This will reduce logistics cost  and will  improve  competitiveness  of Indian textile manufacturing. Once completed, one such park is expected to provide employment to 1 lakh persons directly and 2 lakh persons indirectly.
- (iii) In order to make textiles products cost competitive and adopting the principle of zero rated export, the Union Cabinet has given its approval on 14 th July 2021 for continuation of Rebate of State and Central  Taxes  and  Levies  (RoSCTL)  on  exports  of  Apparel/Garments  (Chapters-61  &  62)  and Made-ups (Chapter-63) till 31 st March, 2024. The other textile 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.
- (iv)  The Government of India is implementing the National Technical Textiles Mission ((NTTM) for a period  of  4  years  (2020-21  to  2023-24)  with  an  outlay  of  Rs.1480  Crores.  The  focus  of  the Mission is to develop usage of technical textiles in various flagship missions, programmes of the country including strategic sectors.
- (v)    In order to meet the skill gap in the industry, Government is implementing SAMARTH (Scheme for  capacity  building  in  textile  sector)  to  provide  demand  driven,  placement  oriented  skilling programmes  to  supplement  the  efforts  of  the  industry  in  creating  employment  in  textiles  and related  sectors,  covering  the  entire  value  chain  of  textiles,  excluding  spinning  and  weaving  in organized sector.
- (vi) Market Access Initiative (MAI) Scheme of the government provides financial support to various Export  promotion  Councils  (EPCs)  and  Trade  Bodies  engaged  in  promotion  of  textiles  and garment exports, for organizing and participating in trade fairs, exhibitions, buyer-seller meets etc. in foreign markets including American and European countries.
- (vii)  Apart  from  this,  the  Government  is  also  running  Schemes  viz.  Amended  Technology  Upgradation  Scheme  (ATUFS),    Integrated  Processing  Development  Scheme  (IPDS),  Scheme  for Integrated Textile Park (SITP), etc. for holistic development of textile sector.