Lok Sabha Question No. 1006 (UNSTARRED), answered on 2023-02-08
Subject: Free Trade Agreement with Australia
Ministry: TEXTILES
Asked by: Jayanta Kumar Roy, Vinod Kumar Sonkar, Bhola Singh, Sukanta Majumdar, Rajveer (Raju Bhaiya) Singh, Raja Amareshwara Naik

## LOK SABHA UNSTARRED QUESTION NO. 1006 TO BE ANSWERED ON 08.02.2023

## FREE TRADE AGREEMENT WITH AUSTRALIA

1006. DR. JAYANTA KUMAR ROY: SHRI VINOD KUMAR SONKAR: SHRI BHOLA SINGH: DR. SUKANTA MAJUMDAR: SHRI RAJVEER SINGH (RAJU BHAIYA): SHRI RAJA AMARESHWARA NAIK:

## Will the Minister of TEXTILES वस्त्र मंत्री

be pleased to state :

- (a) whether the Government is hoping exponential growth in Textile sector after signing of India's Free Trade Agreement (FTA) with Australia and if so, the details thereof;
- (b) whether FTA with Australia eliminates the import duty on textile exports from India bringing them at par with China, Vietnam and Bangladesh and if so, the details thereof;
- (c) whether it is a fact that India exports a significant proportion of its low value-added products such as yarn and fabrics to China, Bangladesh and Vietnam which use them to value add and export to countries such as Australia and other potential FTA partners;
- (d) if so, the details thereof; and
- (e) other important steps being taken by the Government?

उत्तर

ANSWER

## वस्त्र राज् य मंत्री ( श्रीमती दर्शना जरदोर् )

THE MINISTER OF STATE FOR TEXTILES

(SMT. DARSHANA JARDOSH)

- (a) & (b): Pursuant  to  the  signing  and  implementation  of  India-Australia  Economic  Cooperation and Trade Agreement (Ind-Aus ECTA), exports of several labour-intensive sectors including apparel & textiles sector, which are otherwise currently facing import duty of 4-5 per cent in Australia vis-à-vis India's  competing  countries  such  as  China,  Bangladesh  and  Vietnam,  is  expected  to  gain  from  the immediate duty-free access.
- (c) & (d): Details of India's exports of fabrics, fibre and yarn to Bangladesh, China and Vietnam is as follows:

| India's Exports during April-November 2022 (USD Million)   | India's Exports during April-November 2022 (USD Million)   | India's Exports during April-November 2022 (USD Million)   | India's Exports during April-November 2022 (USD Million)   | India's Exports during April-November 2022 (USD Million)   | India's Exports during April-November 2022 (USD Million)   | India's Exports during April-November 2022 (USD Million)   |
|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|
| Category                                                   | Bangladesh                                                 | %share w.r.t. India's Textile &Apparel (T&A) export        | China                                                      | %share w.r.t. India's T&A export                           | Vietnam                                                    | %share w.r.t. India's T&A export                           |
| Fabrics                                                    | 546                                                        | 2.4%                                                       | 33                                                         | 0.1%                                                       | 51                                                         | 0.2%                                                       |
| Fibre                                                      | 334                                                        | 1.5%                                                       | 85                                                         | 0.4%                                                       | 49                                                         | 0.2%                                                       |
| Yarn                                                       | 781                                                        | 3.4%                                                       | 53                                                         | 0.2%                                                       | 55                                                         | 0.2%                                                       |

As compared to total textile exports, the export of fibre, yarn and fabric is not significant.

Source: DGCI&S provisional data, figures are rounded off

(e): Government is implementing various schemes to extend end-to-end support to textile sector viz, Pradhan Mantri Mega Integrated Textile Region and Apparel (PM MITRA), SAMARTH (Scheme for Capacity  Building  in  Textile  Sector),  Silk  Samagra,  National  Handloom  Development  Programme, National  Handicraft  Development  Programme,  Integrated  Wool  Development  Programme  (IWDP), National Technical Textile Mission (NTTM), Scheme for Integrated Textile Parks (SITP) etc.  Further, Government  is  promoting  production  of  MMF  Apparel,  MMF  Fabrics  and  Products  of  Technical Textiles in the country through Production Linked Incentive (PLI) Scheme for Textiles.

In  order  to  increase  the  export  potential,  India  has  so  far  signed  13  Free  Trade  Agreements (FTAs)  including  recently  concluded  agreement  with  UAE  and  Australia;  and  6  Preferential  Trade Agreements  (PTAs)  with  various  trading  partners.  In  order  to  boost  export  of  textiles  products, Government extended scheme of Rebate of State and Central Taxes and Levies (RoSCTL) on exports of Apparel/Garments and Made-ups. Further, textiles products not covered under the RoSCTL are covered under  Remissions  of  Duties  and  Taxes  on  Exported  Products  (RoDTEP)  along  with  other  products. Government also provides financial support to various Export Promotion Councils and Trade Bodies engaged in promotion of textiles and garments exports, for organising and participating in trade fairs, exhibitions, buyer-seller meets etc.

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