Lok Sabha Question No. 4045 (UNSTARRED), answered on 2025-03-25
Subject: Monitoring of Export Performance of Textiles
Ministry: TEXTILES
Asked by: Shri Adhikari Soumendu

## MONITORING OF EXPORT PERFORMANCE OF TEXTILES

## 4045. SHRI ADHIKARI SOUMENDU:

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

- (a)  whether  the  Government  is  monitoring  export  performance  and  taking  measures  to  boost  textile production and exports in consultation with Textile Export Promotion Councils and Industry Associations, if so, the details thereof;
- (b) the details of Government support in exports of textile done through various agencies to boost textile exports; and
- (c)  the  role  of  Export  Credit  Agency  in  providing  credit  insurance  guarantees  and  protection  against losses due to buyer insolvency, default or political risks?

## उत्तर

## ANSWER

## वस्त्र राज्  य मंत्री ( श्री पबित्र मार्घेररटा )

## THE MINISTER OF STATE FOR TEXTILES (SHRI PABITRA MARGHERITA)

- (a): Ministry of Textiles is continuously monitoring export performance of textiles and taking various measures to boost production and exports in consultation with Textiles Export Promotion Councils and Industry Associations.
- (b): Government is implementing Rebate of State and Central Taxes and Levies (RoSCTL) scheme for Apparel/Garments and Made-ups in order to enhance competitiveness by adopting principle of zerorated  exports.  Further,  textiles  products  not  covered  under  the  RoSCTL  scheme  are  covered  under Remissions of Duties and Taxes on Exported Products (RoDTEP) along with other products. In addition, Government provides financial support to various Export Promotion Councils and Trade Bodies under Market  Access  Initiative  Scheme  implemented  by  Department  of  Commerce  for  organising  and participating in trade fairs, exhibitions, buyer-seller meets etc at national and international levels to boost export.
- (c): As per Para 2.55 of Foreign Trade Policy, 2023
- (i) Export Credit Agencies (ECAs) are policy instruments for Government to support exports. ECAs support  exports  by  insurance,  guarantee  and  also  direct  lending.  Export  Credit  Agencies  (ECAs)  like Export Credit Guarantee Corporation of India Ltd. (ECGC) provides credit insurance support to exports and  export  credit  lending.  Covers  issued  by  ECGC  to  exporters,  protect  against  losses  arising  out  of payment  failures  due  to  insolvency  or  default  of  the  buyers  or  due  to  political  risks.  Exporters  can diversify  their  markets  in  addition  to  protecting  existing  markets  through  such  covers.  ECGC  also supports Medium and Long term (MLT) exports including project exports. Exim Bank is the other ECA in the business of lending for MLT exports and fronting the government's line of credit.
- (ii) ECGC indemnifies losses of exporters in export trade due to insolvency or default of the buyer. Additionally,  losses  due  to  political  risk  like  war,  sudden  import  restriction,  promulgation  of  law  or decree after the shipment has been affected are also covered. Some of the anti- dumping measures or non-tariff  barriers  introduced  after  a  shipment  has  been  made  will  come  under  the  purview  of  the political risk. In such cases exporter's interest are protected by ECGC.