Lok Sabha Question No. 1012 (UNSTARRED), answered on 2024-02-08
Subject: Impact of Rising Imports on Domestic Industries
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Chandra Sekhar Sahu, Pritam Gopinath Munde, Rahul Ramesh Shewale

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 1012 TO BE ANSWERED ON 08.02.2024

## IMPACT OF RISING IMPORTS ON DOMESTIC INDUSTRIES

## 1012. SHRI CHANDRA SEKHAR SAHU: DR. PRITAM GOPINATHRAO MUNDE: SHRI RAHUL RAMESH SHEWALE:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether Micro, Small and Medium Industries are the backbone of the economy;
- (b) if so, the details of contribution of Micro, Small and Medium Industries in the economy and employment generation;
- (c) whether the garment industry has been facing the negative impact of rising imports of ManMade Fibres (MMFs) from countries such as China and Bangladesh and if so, the details thereof;
- (d) whether  the  supply  of  cheap  Chinese  polyester  cloth  is  hitting  the  prospects  of  domestic weavers,  spinners,  knitters,  processors  and  export  manufacturers  as  they  are  unable  to  supply  at competitive prices;
- (e) if so, whether cheap polyester cloth imports from China and Bangladesh are currently being mislabelled as cotton and are only paying 5 per cent import duty and successfully evading 20 per cent duty; and
- (f) if  so,  the  action  taken  by  the  Union  Government  to  save  the  domestic  Micro,  Small  and Medium Industries, State-wise particularly in Odisha?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI BHANU PRATAP SINGH VERMA)

(a) & (b): The Micro, Small and Medium Enterprises (MSMEs) sector plays an important role in the growth of the Indian economy. The share of MSME Gross Value Added (GVA) in All India Gross Domestic Product (GDP) is around 30%. The share of MSME manufacturing output in All India manufacturing output is around 36%. The share of MSME related product exports in All India exports is around 45%. As on 05.02.2024, the number of persons employed in the MSMEs which are  registered  on  the  Udyam  Registration  Portal  and  Udyam  Assist  Platform,  are  16,86,64,562 (from 01.07.2020 up to 05.02.2024).

(c) to (e): The  import  data  of  Man-Made  Fibres  from  China  and  Bangladesh,  is  given  at Annexure-I.  Further,  No  cases  of  import  of  polyester  clothes  from  China  and  Bangladesh misdeclared as cotton have been reported by Customs field formations and Directorate of Revenue Intelligence during FY 2020-21 up to FY 2023-24 (up to 31.01.2024).

(f): The Government has approved the Production Linked Incentive (PLI) Scheme for Textiles, with an approved outlay of Rs. 10,683 crore over a five year period, to promote production of ManMade Fibres (MMF) apparel, MMF fabrics and products of Technical Textiles in the country to enable textile sector to achieve size and scale and to become competitive.

The  challenges  faced  by  the  MSME  sector  inter  alia  include  access  to  affordable  credit, technology, informality, lack of infrastructure, shortage of skilled manpower and access to market. To mitigate these challenges,  the  Ministry  of  Micro,  Small  and  Medium  Enterprises  implements various schemes for the benefit of MSMEs across the country including in the State of Odisha. The schemes/programmes  inter  alia  include  Prime  Minister's  Employment  Generation  Programme (PMEGP),  Credit  Guarantee  Scheme  for  Micro and Small Enterprises, Micro  and Small Enterprises-Cluster Development Programme (MSE-CDP), MSME Champions scheme, International  Cooperation  Scheme,  Procurement  and  Marketing  Support  Scheme  (PMS)  and National SC/ST Hub (NSSH).

*****

## Annexure-I referred to in reply to part (c) to (e) of the Lok Sabha Unstarred Question No. 1012 due for answer on 08.02.2024.

The import data of Man-Made Fibres from China and Bangladesh are given below.

## (Values in US$ Millions)

| S. No.   | Product                        | Apr-Dec 2022   | 2023(P)   |
|----------|--------------------------------|----------------|-----------|
| 1        | MANMADE STAPLE FIBRE           | 507.43         | 337.36    |
| 2        | MANMADE YARN, FABRICS, MADEUPS | 2,369.31       | 2,267.17  |
| 3        | RMGMANMADEFIBRES               | 437.55         | 363.9     |
|          | Total                          | 3,314.29       | 2,968.43  |

| China (Values in US$ Millions)   | China (Values in US$ Millions)   | China (Values in US$ Millions)   | China (Values in US$ Millions)   |
|----------------------------------|----------------------------------|----------------------------------|----------------------------------|
| S. No.                           | Product                          | Apr-Dec 2022                     | Apr-Dec 2023(P)                  |
| 1                                | MANMADE STAPLE FIBRE             | 92.61                            | 50.35                            |
| 2                                | MANMADE YARN, FABRICS, MADEUPS   | 1,520.18                         | 1,478.57                         |
| 3                                | RMGMANMADEFIBRES                 | 121.05                           | 92.44                            |
|                                  | Total                            | 1,733.84                         | 1,621.36                         |

| Bangladesh (Values in US$ Millions)   | Bangladesh (Values in US$ Millions)   | Bangladesh (Values in US$ Millions)   | Bangladesh (Values in US$ Millions)   | Bangladesh (Values in US$ Millions)   |
|---------------------------------------|---------------------------------------|---------------------------------------|---------------------------------------|---------------------------------------|
| S. No.                                | Product                               | Apr-Dec 2022                          | 2023(P)                               |                                       |
| 1                                     | MANMADE STAPLE FIBRE                  | 1.33                                  | 1.18                                  |                                       |
| 2                                     | MANMADE YARN, FABRICS, MADEUPS        | 10.79                                 | 11.59                                 |                                       |
| 3                                     | RMGMANMADEFIBRES                      | 122.02                                | 97.25                                 |                                       |
|                                       | Total                                 | 134.14                                | 110.02                                |                                       |

Source: Directorate General of Commercial Intelligence and Statistics (DGCIS