Lok Sabha Question No. 4389 (UNSTARRED), answered on 2022-03-30
Subject: Competition faced by Indian Textile Industry
Ministry: TEXTILES
Asked by: Amol Ramsing Kolhe, Ganesan Selvam, DNV Senthilkumar. S., Gautham Sigamani Pon, Gajanan Chandrakant Kirtikar, Subhash Ramrao Bhamre, Kuldeep Rai Sharma, Supriya Sadanand Sule, C.N. Annadurai, Sunil Dattatray Tatkare, Omprakash Bhupalsinh alias Pawan Rajenimbalkar, Dhanush M Kumar, Manjulata Mandal

## LOK SABHA UNSTARRED QUESTION NO. 4389 TO BE ANSWERED ON 30.03.2022

## COMPETITION FACED BY INDIAN TEXTILE INDUSTRY

## 4389.  DR. AMOL RAMSING KOLHE:

SHRI SELVAM G.:

DR. DNV SENTHILKUMAR. S.:

SHRI GAUTHAM SIGAMANI PON:

SHRI GAJANAN KIRTIKAR:

DR. SUBHASH RAMRAO BHAMRE:

SHRI KULDEEP RAI SHARMA:

SHRIMATI SUPRIYA SULE:

SHRI C.N. ANNADURAI:

SHRI SUNIL DATTATRAY TATKARE:

SHRI OMPRAKASH BHUPALSINH alias PAWAN RAJENIMBALKAR:

SHRI DHANUSH M. KUMAR:

SHRIMATI MANJULATA MANDAL:

## Will the Minister of TEXTILES वस्त्र मंत्री

be pleased to state :

- (a)  whether  the  Indian  textile  industry  is  facing  competition  from  foreign  textile  industry  including neighbouring countries;
- (b) if so, the details thereof and the reasons therefor along with the efforts made/study undertaken by the Government to make it competitive with the international textile industry including our neighbouring countries;
- (c)  the  present  share  of  Indian  textile  industry  in  production  and  exports  in  comparison  to  other developing nations;
- (d)  whether  the  Government  has  taken  measures  to  improve  textile  exports  and  competitiveness  of Indian textile industry and if so, the details thereof; and
- (e)  the  efforts  made  by  the  Government  to  cut  the  production  cost  of  textile  sector  including  cotton textiles and shortage of workers in textile and clothing industry in the country to make it competitive with the other countries like China?

## उत्तर

## ANSWER

## वस्त्र राज् य मंत्री ( श्रीमती दर्शना जरदोर् )

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

(a) & (b): India  is  facing  tariff  disadvantage  in  some  of  the  markets  such  as  EU,  UK  etc.  as compared to neighbouring competing nations like Bangladesh, Cambodia, Sri Lanka etc.

Government, under its  Market  Access  Initiative  (MAI)  scheme  provides  financial  support  to  various Export Promotion Councils (EPCs) and Trade Bodies engaged in promotion of textiles and garments exports, for organising and participating in trade fairs, exhibitions, buyer-seller meets etc. Further, in the times of COVID-19 pandemic, virtual exhibitions were also organised by EPCs as an alternative mode of marketing, in order to tap opportunities in the global markets. India and UAE have recently signed a Free Trade Agreement which is likely to boost exports of Indian textile and apparels.  India is currently in the process of negotiating FTAs with EU, Australia, UK, Canada, Israel and other countries/ region.

(c): The comparative data  of  textile  sector  production  and  exports  in  India  with  other  developing nations is not available.

(d): In  order  to  make  textiles  products  cost  competitive  and  adopting  the  principle  of  zero  rated export,  Government  has  extended  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 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.

(e): Amended Technology Upgradation Fund Scheme (ATUFS) was launched in January 2016 for one-time capital subsidy for eligible  benchmark  machinery.  Segments  which  have  got  higher employment  and  export  potential  such  as  garmenting  and  technical  textiles  are  eligible  for  capital subsidy. In order to supplement its efforts of textile industry in creating jobs and also to address the skilled  manpower  needs  of  the  industry,  Ministry  of  Textiles  is  implementing  Samarth-  Scheme  for Capacity Building in Textiles Sector (SCBTS) for the entire value chain of textiles except Spinning and Weaving  in  the  organized  sector.  Ministry  is  implementing  Textile  Cluster  Development  Scheme (TCDS) from 2021-22 to 2025-26 with a view to create an integrated workspace and linkages-based ecosystem  for  existing  as  well  as  potential  textile  units  to  make  them  operationally  and  financially viable with a view to bring benefits of critical mass for customization of interventions, economies of scale  in  operation,  competitiveness  in  manufacturing,  cost  efficient,  better  access  to  technology  and information,  etc.  Further,  to  promote  production  of  MMF  Apparel,  MMF  Fabrics  and  Products  of Technical  Textiles  in  the  country,  Production  Linked  Incentive  (PLI)  Scheme  for  Textiles  has  been launched. Government has also approved setting up of 7 (Seven) PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks in Greenfield/Brownfield sites to develop world class infrastructure including plug and play facility.

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