Lok Sabha Question No. 2605 (UNSTARRED), answered on 2025-12-16
Subject: Remove Quality Control Order
Ministry: TEXTILES
Asked by: Shri K C Venugopal

## REMOVE QUALITY CONTROL ORDER

## 2605. SHRI K C VENUGOPAL:

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

(a) whether the Government has taken cognizance of the "12.91% decline in textile and apparel exports in  October"  and  the  sharp  fall  in  jute,  cotton  yarn,  fabrics  and  made-ups  and  if  so,  the  corrective immediate corrective  measures  are  being  implemented  to  stabilise  outbound  shipments  and  if  so,  the details thereof;

(b) whether the Government has assessed the extent to which "U.S. tariff pressures and heavy-discountdriven exports" are impacting the profitability and sustainability of Indian exporters, especially MSMEs in the textile sector and if so, the details thereof;

(c)  whether the Government proposes to introduce "targeted financial or policy support" for exporters affected by reduced global demand and tariff-related disruptions, including credit assistance and exportpromotion incentives and if so, the details thereof; and

(d) whether the removal of the "Quality Control Order (QCO) on viscose staple fibres" is expected to reduce input costs and improve export competitiveness and the further steps are planned to strengthen the MMF value chain and if so, the details thereof;

## उत्तर

## ANSWER THE MINISTER OF STATE FOR TEXTILES

## वस्त्र राज्  य मंत्री ( श्री पबित्र मार्घेररटा ) (SHRI PABITRA MARGHERITA)

(a) to (c): The  Ministry  is  regularly  monitoring  India's  export  of  Textile  &  Apparel  including Handicrafts to United States and other countries in the world and tracking of the impact of US tariffs on all  segments  of  the  textile  sector.    India's  Textiles  &  Apparel  exports,  including  handicrafts,  stood  at US$ 20,401.95 million during April-October 2025, reflecting a marginal decrease of 1.8% compared to the same period in the previous year (US$ 20,728.05 million), yet indicating overall stability in export performance despite global tariff-related and other external challenges.   Exports of readymade garments (RMG) across all textile  segments,  as  well  as  jute  Mfg.  including  floor  coverings,  registered  positive growth during the period April-October 2025. However, certain other key segments such as cotton and man-made fibre (MMF) products-including yarn, fabrics and made-ups-as well as carpets, witnessed nominal  de-growth  during  the  same  period  vis-à-vis  the  corresponding  period  of  the  previous  year. (Source- Quick Estimates, Department of Commerce).

2.  During  April-October  2025,  India's  exports  recorded  positive  growth  in  more  than  100  countries compared to the previous year-including key markets such as the UAE, U.K., Germany, Spain, France, Italy,  China,  Saudi  Arabia,  Egypt  and  Japan-reflecting  the  resilience  and  diversification  efforts  of  the Indian textile industry. (Source- DGCIS).

3.  The Government is implementing various schemes/initiatives to boost the Indian textile and apparel sector and enhance its competitiveness from Country: -

(i)  The  major  schemes/initiatives  include  PM  Mega  Integrated  Textile  Regions  and  Apparel  (PM MITRA)  Parks  Scheme  to  create  a  modern,  integrated,  world  class  textile  infrastructure;  Production Linked Incentive (PLI) Scheme focusing on MMF Fabric, MMF Apparel and Technical Textiles to boost large scale manufacturing and enhancing competitiveness; National Technical Textiles Mission focusing on Research Innovation & Development, Promotion and Market Development; SAMARTH - Scheme for Capacity Building in Textile Sector with the objective providing demand driven, placement oriented, skilling program; Silk Samagra-2 for comprehensive development of sericulture value chain; National Handloom Development Program for end to end support for handloom sector. Ministry of Textiles is also  implementing  National  Handicrafts  Development  Programme  and  Comprehensive  Handicrafts Cluster Development Scheme for promotion of handicrafts.

(ii)   Export  Obligation  (EO)  period  under  the  Advance  Authorisation  Scheme for  inputs  falling  under mandatory Quality Control Order (QCO) in the textile sector has been extended from six (6) months to eighteen (18) months.

(iii)  The  Government has brought key revisions to the Production Linked Incentive (PLI) Scheme for MMF  Apparel,  MMF  Fabrics,  and  products  of  Technical  Textiles  to  address  industry  challenges, enhance ease of doing business, encourage fresh investments in the sector etc. The Revisions include Expansion  of  Eligible  Products,  relaxation  from  setting  up  new  companies,  reduction  in  minimum threshold of investment and incremental turnover Criteria. The revision aims to reduce entry barriers and financial thresholds, enabling faster execution.

(iv) The Government has exempted import duty on cotton under HS 5201 upto 31.12.2025 for reducing the  input  material  costs  for  the  textile  industry,  ensuring  adequate  supply  and  improving  export competitiveness and enhancing overall industry efficiency.

(v)  The  Government has rationalized the GST rate across the textile value chain to remove structural anomalies, reduce costs, boost demand, support exports and sustain jobs.

(vi)  The Government is also administering the two remission schemes of Rebate of State and Central Taxes  and  Levies  (RoSCTL)  for  Apparel/Garments  and  Made  ups  and  the  Remissions  of  Duties  and Taxes on Exported Products (RoDTEP) Scheme for other textiles products.

(vii)  India  has  signed  15  Free  Trade  Agreements  (FTAs),  including  the  India-UK  Comprehensive Economic and Trade Agreement (CETA) which was signed on 24 July 2025. These FTAs aim to reduce tariff and non-tariff barriers, simplify procedures, and address structural issues to make Indian Exporters more competitive in partner markets.

(viii) Further, the Ministry has formulated a comprehensive 40-country market diversification strategy, identifying  high-potential  global  destinations  for  Indian  textile  exports.  A  structured  and  targeted outreach  in  these  markets-supported  by  coordinated  efforts  of  Export  Promotion  Councils  (EPCs), industry delegations, and Indian Missions abroad-aims to reduce market concentration risks, enhance India's export share, and establish a more resilient and sustainable global footprint for the Indian textile industry.

(ix)  The  Government  has  approved  the  Export  Promotion  Mission  (EPM)  which  is  anchored  in  a collaborative  framework  involving  the  Department  of  Commerce,  Ministry  of  MSME,  Ministry  of Finance,  and  other  key  stakeholders  including  Financial  Institutions,  Export  Promotion  Councils, Commodity Boards, industry associations, and state governments.

The Mission will operate through two integrated sub-schemes:

(i)   NIRYAT  PROTSAHAN  -  focuses  on  improving  access  to  affordable  trade  finance  for MSMEs  through  a  range  of  instruments  such  as  interest  subvention,  export  factoring,  collateral guarantees,  credit  cards  for  e-commerce  exporters,  and  credit  enhancement  support  for  diversification into new markets.

(ii)  NIRYAT DISHA - focuses on non-financial enablers that enhance market readiness and competitiveness, including export quality and compliance support, assistance for international branding, packaging, and participation in trade fairs, export warehousing and logistics, inland transport reimbursements, and trade intelligence and capacity-building initiatives.

(x) The Government has approved Credit Guarantee Scheme for Exporters (CGSE) for providing 100% credit guarantee coverage by National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending  Institutions  (MLIs)  for  extending  additional  credit  facilities  upto  Rs.20,000  crore  to  eligible exporters,  including  MSMEs.  The  Scheme  aims  to  enhance  the  global  competitiveness  of  Indian exporters and support diversification into new and emerging markets.

(d): The  removal  of  Quality  Control  Orders  (QCOs)  on  critical  MMF  raw  materials  is  a  direct facilitative  measure  taken  by  the  Government  to  stabilize  domestic  prices  and  ensure  an  unhindered supply of key raw materials of MMF sector to downstream processors. Further, with the objective to enhance operational efficiency, Goods and Services Tax (GST) structure in the MMF value chain has been rationalized to bring down the GST rate of MMF Fibre and Yarn at 5%, resulting in lower overall cost  of  MMF  products.  The  recent  initiatives  in  PLI  aims  to  reduce  entry  barriers  and  financial thresholds, enabling faster execution.

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