Lok Sabha Question No. 3242 (UNSTARRED), answered on 2023-08-09
Subject: Apparel Exports
Ministry: TEXTILES
Asked by: Manne Srinivas Reddy, Y. S. Avinash Reddy, Komati Reddy Venkat Reddy

## LOK SABHA UNSTARRED QUESTION NO. 3242

## TO BE ANSWERED ON 09.08.2023

## APPAREL EXPORTS

## 3242. SHRI MANNE SRINIVAS REDDY:

SHRI Y.S. AVINASH REDDY:

SHRI KOMATI REDDY VENKAT REDDY:

## Will the Minister of TEXTILES वस्त्र मंत्री

be pleased to state :

- (a) whether apparel exports of the country has contracted by 11.3 percent year-on-year (yoy) in June as many textile  mills  in  the  South  suspended  production  on  account  of  tepid  demand,  if  so,  the  details thereof;
- (b) whether export of fabrics, made-ups and handloom products slid 1.21 percent yoy and shipment of manmade products saw a 17.2 percent decline while export of jute products and carpets plunged 26.7 percent and 15.4 percent respectively;
- (c) if so, the details and present status along with the future action plan thereof;
- (d) whether smaller companies were the worst affected in this scenario;
- (e) if so, whether factors such as slow down in the US and EU and lack of cost competitiveness were affecting textile and clothing exports;
- (f) if so, the details thereof along with the other factors affecting the textile industry at present;
- (g)  whether  yarn  that  should  be  exported  is  coming  into  the  domestic  market  where  it  is  already  in excess capacity, if so, the details thereof; and
- (h)  whether  Free  Trade  Agreement  (FTA)  with  UK  is  likely  to  provide  immediate  relief  for  Indian textile and garment exports and if so, the steps taken by the Government in this regard?

## उत्तर

ANSWER

## वस्त्र राज् य मंत्री ( श्रीमती दर्शना जरदोर् )

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

## (a): Details of India's Apparel exports is as follows:

(Value in USD million)

| Product   |   June 2020 | June 2021   | June 2022   | June 2023(P)   |
|-----------|-------------|-------------|-------------|----------------|
| Apparel   |      803.41 | 1,001.58    | 1,501.12    | 1,247.97       |

Source: DGCIS, (P)-Provisional

The export during June 2023 decline as compared to June 2022 but have exceeded the value of June 2021.

(b)  &  (c): Details  of  India's  export  of  Fabrics,  Made-ups,  Man-made  products,  Handloom  products, Jute products and Carpets is as follows:

(Value in USD million)

| Product Category                                                      | 2020-21   | 2021-22   | 2022-23 (P)   |
|-----------------------------------------------------------------------|-----------|-----------|---------------|
| Fabrics                                                               | 3,839.75  | 5,593.4   | 5,030.7       |
| Made-ups                                                              | 5,221.83  | 6,757.5   | 5,655.7       |
| Man- Made Fibre Products (Fibre, Yarn, Fabrics, Madeups and Garments) | 6,811.29  | 9,557.4   | 8,480.5       |
| Handloom Products                                                     | 223.25    | 269.16    | 182.49        |
| Jute Products                                                         | 397.35    | 537.49    | 461.71        |
| Carpets                                                               | 1,491.41  | 1,789.9   | 1,366.1       |
| TOTAL                                                                 | 1,7984.9  | 2,4504.8  | 21,177.2      |

Source: DGCIS, (P)-Provisional

Export  is  a  function  of  demand  and  supply  and  varies  from  time  to  time  depending  on  surplus manufacturing capacity, order flow, availability of shipping containers and ships, etc.

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.

Further, Government is implementing various schemes to support textile sector viz, Production Linked Incentive (PLI) Scheme for Textiles, Pradhan Mantri Mega Integrated Textile Region and Apparel (PM MITRA), 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.

## (d) to (f): Company wise data is not available.

India faces tariff disadvantage in some of the markets such as EU, UK etc. as compared to neighboring competing nations like  Bangladesh, Cambodia, Sri Lanka etc. 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.

- (g): India's  export  of  Yarn  in  FY:  2022-23  was  USD  4.6  billion  whereas  import  of  Yarn  in  FY: 2022-23 was USD 2.2 billion. India maintained positive balance of trade in Yarn in FY: 2022-23.
- (h): India  is  actively  negotiating  Free  Trade  Agreement  (FTA)  with  UK.  The  ongoing  FTA negotiation would unlock the new opportunities in several areas including textile and garment exports.

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