Lok Sabha Question No. 2140 (UNSTARRED), answered on 2016-03-10
Subject: Indian Textile Industry
Ministry: TEXTILES
Asked by: V. SATHYABAMA

## INDIAN TEXTILE INDUSTRY

## 2140.   SHRIMATI V. SATHYA BAMA:

## Will the Minister of TEXTILES वस्त्र मंरी

## be pleased to state:

- (a) whether the textile industry in the country is the largest employer after agriculture and accounts for 14 per cent of India's exports;
- (b) if so, whether it is a fact that the textile industry lost ground to Bangladesh and Vietnam in the global market as the preferred supplier for readymade garments;
- (c) if so, the details thereof and the reasons therefor; and
- (d) the  steps  being  taken  or  proposed  to  be  taken  by  the  Government  to  boost  the  Indian textile industry?

## उत्तर

## ANSWER

## वस्त्र राज  ् य मंरी ( स्त्वतंर प्रभार ) ( श्री संतोष कु मार गंगवार ) MINISTER OF STATE (INDEPENDENT CHARGE)

## IN THE MINISTRY OF TEXTILES

(SHRI SANTOSH KUMAR GANGWAR)

(a): Yes,  Madam.    The  textile  sector  is  one  of  the  largest  provider  of  employment alongwith agriculture and textile export from India account for around13% of total exports from India.

(b) & (c): India ranks 7 th in  world in Ready Made Garment accounting for 3.5% of world share, with exports of 2014-15 in RMG.  Vietnam and Bangladesh have emerged as major exporting countries of RMG.  The details of top seven exporting countries of RMG are as under:-

| Global RMGExporters, Country wise Ranking   | Global RMGExporters, Country wise Ranking   | Global RMGExporters, Country wise Ranking   | Global RMGExporters, Country wise Ranking   | Global RMGExporters, Country wise Ranking   | Global RMGExporters, Country wise Ranking   | Global RMGExporters, Country wise Ranking   | Global RMGExporters, Country wise Ranking   |
|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|---------------------------------------------|
| Rank in 2014                                |                                             | Exports in US$ Bn.                          | Exports in US$ Bn.                          | Exports in US$ Bn.                          | Share in%                                   | Share in%                                   | Share in%                                   |
| Rank in 2014                                | Exporters                                   | 2013                                        | 2014                                        | % Change 2014/13                            | 2013                                        | 2014                                        | % Change 2014/13                            |
|                                             | World                                       | 442.8                                       | 473.0                                       | 6.8                                         | 100.0                                       | 100.0                                       | 0.0                                         |
| 1                                           | China                                       | 165.0                                       | 173.4                                       | 5.1                                         | 37.3                                        | 36.7                                        | -1.6                                        |
| 2                                           | Bangladesh                                  | 26.1                                        | 28.0                                        | 7.1                                         | 5.9                                         | 5.9                                         | 0.3                                         |
| 3                                           | Italy                                       | 21.6                                        | 22.5                                        | 4.0                                         | 4.9                                         | 4.8                                         | -2.6                                        |
| 4                                           | Vietnam                                     | 16.7                                        | 20.9                                        | 24.8                                        | 3.8                                         | 4.4                                         | 16.8                                        |
| 5                                           | Germany                                     | 18.3                                        | 19.5                                        | 6.5                                         | 4.1                                         | 4.1                                         | -0.3                                        |
| 6                                           | Hong Kong, China                            | 20.7                                        | 19.4                                        | -6.4                                        | 4.7                                         | 4.1                                         | -12.4                                       |
| 7                                           | India                                       | 15.7                                        | 16.5                                        | 5.3                                         | 3.5                                         | 3.5                                         | -1.4                                        |

Bangladesh and Vietnam are ahead of India in RMG exports due to various factors like wage differential, interest rate differential and major opening in big markets like EU and USA to competing nations.

(d): The  government  is  implementing  schemes  like  Technology  Upgradation  Fund Scheme  (TUFS),  Schemes  for  the  development  of  the  Power-loom  Sector,  Schemes  for Technical textiles Scheme for Integrated Textile Parks (SITP), Integrated Skill Development Scheme etc. to modernize textile industry, increase production and global competitiveness.

Besides, the Government has taken following initiatives to augment the textile exports:-

- (i) MEIS Scheme under new Foreign Trade Policy 2015-20.
- (ii) Restoring Interest rate subvention for pre and post shipment credit for the textile sector,
- (iii)  Expanding the scope of  Merchandise  Export  from India  Scheme  (MEIS)  since 29.10.2015 to  110  new  tariff  lines  and  increase  rates  or  country  coverage  or  both  for 2228 existing tariff lines.
- (iv) Increased Duty Drawback rates for some textile articles.
- (v) Market Access Initiative (MAI) Scheme.
- (vi)  Market Development Assistance (MDA) Scheme.
- (vii) Duty Free import of trimmings, embellishments and other specified item under Export Performance Certificate Entitlement Scheme.

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