Lok Sabha Question No. 3181 (UNSTARRED), answered on 2015-12-17
Subject: Textile Industry Share in GDP
Ministry: TEXTILES
Asked by: M. I. SHANAVAS, DHARMENDRA YADAV, SHIVAJI ADHALRAO PATIL, Shrirang Appa Barne, ANANDRAO  ADSUL, RADHESHYAM BISWAS

## LOK SABHA UNSTARRED QUESTION NO.3181 TO BE ANSWERED ON 17.12.2015

## TEXTILE INDUSTRY SHARE IN GDP

3181: SHRI M.I. SHANAVAS SHRI DHARMENDRA YADAV SHRI ADHALRAO PATIL SHIVAJIRAO SHRI SHRIRANG APPA BARNE SHRI ANANDRAO ADSUL SHRI RADHESHYAM BISWAS

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

- a. the percentage share of textile industry in Gross Domestic Product during the last three years and the current year along with the exports, country-wise;
- b. whether India's textile sector is one of the oldest industries in Indian economy and one of the largest contributors to India's exports and if so, the present share of textile sector in India's export, State-wise;
- c. whether the Indian textile sector has been facing stiff competition in the world market and if  so,  the  assistance  provided  or  proposed  to  be  provided  for  rapid  growth  of  the  textile sector to meet the domestic consumption as well export demand;
- d. whether the Government has provided subsidy under the Revised Restructured Technology Upgradation Fund Scheme and if so, the details thereof; and
- e.  the  steps  taken  by  the  Government  to  modernize  the  textile  mills  and  equip  the  textile industry competent in the international market?

## 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): The percentage share of  textile Industry in Gross Value Added (GVA)  and countrywise exports of textiles in the last 3 years is given at Annex I

(b): Yes  Madam.  Textiles  remains  an  important  contributor  to  India's  exports  with  total  textile exports including handicrafts constituting 13.6 % of India's  total exports to the World in 2014-15. Details, Statewise   may be seen at Annex- II

(c)  &  (e) :  India is  major textile exporting country .  It  faces competition from countries like China, Bangladesh,  Italy,  Germany  and  Vietnam  in  Textiles.  As  per    UN  Comtrade,  2013  data  India  was ranked as the 2 nd largest Textile and Clothing exporter in the world with USD 40 bn after China .

The Government  of India has taken several policy initiatives to provide a boost to the textile sector including offering  support  for    Technology  Upgradation  ,  Development  of  the  Handloom,  Handicraft  and  Powerloom Sectors, setting up of Integrated Textile Parks (SITP),  Skill Development Scheme (ISDS), Development of Technical textiles  etc.

Government has also taken various initiatives to augment  textile exports such as  the MEIS scheme under new Foreign Trade Policy 2015-20, restoring Interest rate subvention for pre and post shipment credit for the textile sector, 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,  increased  Duty Drawback  rates  for  some  textile  articles,  Market  Access  Initiative  (MAI)  Scheme,  Market  Development Assistance (MDA) Scheme, duty free import of trimmings , embellishments and other specified item under Export Performance Certificate Entitlement Scheme.

(d): The subsidy provided by the Government under RRTUFS in 2014-15  and in 2015-16  is given at Annex III.

## Annex- I

| Percentage Share of textiles and cotton ginning   |   2011-12 |   2012-13 |   2013-14 |
|---------------------------------------------------|-----------|-----------|-----------|
| in total GVA (at current prices )                 |       1.3 |       1.6 |       1.6 |

Source : CSO Note: Activity-wise shares are calculated on the basis of GVA and not GDP.

## India's top ten export markets of textile & apparel products

| S no.   | Countries                                | Export 2012- 13 (US$ Mn)   | % Share   | Export 2013- 14 (US$ Mn)   | % Share   | Export 2014- 15 (US$ Mn)   | % Share   | Export 2015-16 (Apr- Sept) (US$ Mn)   | % Share   |
|---------|------------------------------------------|----------------------------|-----------|----------------------------|-----------|----------------------------|-----------|---------------------------------------|-----------|
| 1       | USA 6,131                                | 30%                        | 6,704     |                            | 29%       | 7,154                      | 31%       | 3,720                                 | 32%       |
| 2       | Emirates 2,189                           |                            | 11%       | 2,676                      | 12%       | 3,773                      | 16%       | 2,420                                 | 21%       |
| 3       | China                                    | 3,614                      | 18%       | 4,071                      | 18%       | 2,593                      | 11%       | 1,079                                 | 9%        |
| 4       | Kingdom 2,102                            |                            | 10%       | 2,268                      | 10%       | 2,483                      | 11%       | 1,226                                 | 10%       |
| 5       | Bangladesh 1,770                         |                            | 9%        | 1,926                      | 8%        | 1,973                      | 8%        | 944                                   | 8%        |
| 6       | Germany 1,592                            |                            | 8%        | 1,821                      | 8%        | 1,827                      | 8%        | 834                                   | 7%        |
| 7       | France                                   | 845                        | 4%        | 974                        | 4%        | 1,102                      | 5%        | 486                                   | 4%        |
| 8       | Spain                                    | 754                        | 4%        | 828                        | 4%        | 907                        | 4%        | 444                                   | 4%        |
| 9       | Italy 765                                |                            | 4%        | 871                        | 4%        | 862                        | 4%        | 363                                   | 3%        |
| 10      | Turkey                                   | 669                        | 3%        | 869                        | 4%        | 737                        | 3%        | 285                                   | 2%        |
|         | Sub Total                                | 20,430                     | 56%       | 23,008                     | 56%       | 23,412                     | 55%       | 11,801                                | 60%       |
|         | Total T&A exports (including Handicraft) | 36,500                     |           | 41,359                     |           | 42,192                     |           | 19,549                                |           |

Statewise Textile and Apparel Export in 2014-15 (Rs Crore)

| S No.   | State                                       | Exports (Rs Cr)   | %Share in T&A Export   |
|---------|---------------------------------------------|-------------------|------------------------|
| 1       | TAMIL NADU                                  | 43,113.5          | 18.7%                  |
| 2       | MAHARASHTRA                                 | 38,129.8          | 16.6%                  |
| 3       | GUJARAT                                     | 29,310.2          | 12.7%                  |
| 4       | DELHI                                       | 27,196.2          | 11.8%                  |
| 5       | HARYANA                                     | 16,233.3          | 7.0%                   |
| 6       | PUNJAB                                      | 14,223.2          | 6.2%                   |
| 7       | UTTAR PRADESH                               | 14,014.7          | 6.1%                   |
| 8       | KARNATAKA                                   | 13,508.9          | 5.9%                   |
| 9       | RAJASTHAN                                   | 6,570.4           | 2.9%                   |
| 10      | WEST BENGAL                                 | 6,144.9           | 2.7%                   |
| 11      | MADHYAPRADESH                               | 5,777.9           | 2.5%                   |
| 12      | ANDHRA PRADESH                              | 5,154.6           | 2.2%                   |
| 13      | DADRA &NAGARHAVELI                          | 3,847.2           | 1.7%                   |
| 14      | KERALA                                      | 2,687.8           | 1.2%                   |
| 15      | HIMACHAL PRADESH                            | 1,396.1           | 0.6%                   |
| 16      | UNSPECIFIED                                 | 805.9             | 0.3%                   |
| 17      | DAMAN &DIU                                  | 680.8             | 0.3%                   |
| 18      | JAMMU &KASHMIR                              | 410.2             | 0.2%                   |
| 19      | UTTARANCHAL                                 | 401.3             | 0.2%                   |
| 20      | TELENGANA                                   | 261.0             | 0.1%                   |
| 21      | BIHAR                                       | 107.0             | 0.0%                   |
| 22      | CHANDIGARH                                  | 81.7              | 0.0%                   |
| 23      | ORISSA                                      | 66.6              | 0.0%                   |
| 24      | JHARKHAND                                   | 39.7              | 0.0%                   |
| 25      | PONDICHERRY                                 | 30.6              | 0.0%                   |
| 26      | MEGHALAYA                                   | 29.0              | 0.0%                   |
| 27      | GOA                                         | 22.0              | 0.0%                   |
| 28      | CHATTISGARH                                 | 16.2              | 0.0%                   |
| 29      | TRIPURA                                     | 8.1               | 0.0%                   |
| 30      | ANDAMAN &NICOBAR                            | 7.8               | 0.0%                   |
| 31      | ASSAM                                       | 5.1               | 0.0%                   |
| 32      | SIKKIM                                      | 3.3               | 0.0%                   |
| 33      | ARUNACHAL PRADESH                           | 2.6               | 0.0%                   |
| 34      | LAKSHADWEEP                                 | 0.7               | 0.0%                   |
| 35      | NAGALAND                                    | 0.1               | 0.0%                   |
| 36      | MANIPUR                                     | -                 | 0.0%                   |
| 37      | MIZORAM                                     | -                 | 0.0%                   |
|         | Total T&A export                            | 230,288.6         |                        |
|         | Handicrafts*                                | 27,747.0          |                        |
|         | Total T&A Trade (including Handicrafts)     | 258,035.6         |                        |
|         | India's total export                        | 1,896,348.0       |                        |
|         | Share of T&A export (including Handicrafts) | 13.6%             |                        |

Source: DGCI&S, *EPCH

## Annex II

Annex-III

| State wise details of the subsidy released by Ministry of Textile under RRTUFS (in Rs Cr)   | State wise details of the subsidy released by Ministry of Textile under RRTUFS (in Rs Cr)   | State wise details of the subsidy released by Ministry of Textile under RRTUFS (in Rs Cr)   | State wise details of the subsidy released by Ministry of Textile under RRTUFS (in Rs Cr)   | State wise details of the subsidy released by Ministry of Textile under RRTUFS (in Rs Cr)   | State wise details of the subsidy released by Ministry of Textile under RRTUFS (in Rs Cr)   |
|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|
|                                                                                             |                                                                                             | 2014-15                                                                                     | 2014-15                                                                                     | 2015-16 (as on 03.12.2015)                                                                  | 2015-16 (as on 03.12.2015)                                                                  |
| Sr. No.                                                                                     | State                                                                                       | No. of Cases                                                                                | Subsidy Released Amount                                                                     | No. of Cases                                                                                | Subsidy Released Amount                                                                     |
| 1                                                                                           | ANDHRA PRADESH                                                                              | 23                                                                                          | 5.18                                                                                        | 47                                                                                          | 14.4                                                                                        |
| 2                                                                                           | ASSAM                                                                                       | 2                                                                                           | 1.3                                                                                         | 2                                                                                           | 0.17                                                                                        |
| 3                                                                                           | BIHAR                                                                                       | 1                                                                                           | 0.06                                                                                        | 1                                                                                           | 0.01                                                                                        |
| 4                                                                                           | CHANDIGARH                                                                                  | 3                                                                                           | 0.2                                                                                         | 3                                                                                           | 8.58                                                                                        |
| 5                                                                                           | DADRA&NAGAR                                                                                 | 10                                                                                          | 4.96                                                                                        | 15                                                                                          | 2.16                                                                                        |
| 6                                                                                           | DAMAN&DIU                                                                                   | 2                                                                                           | 0.82                                                                                        | 7                                                                                           | 2.98                                                                                        |
| 7                                                                                           | DELHI                                                                                       | 19                                                                                          | 6.67                                                                                        | 30                                                                                          | 11.68                                                                                       |
| 8                                                                                           | GOA                                                                                         | 2                                                                                           | 0.66                                                                                        | 3                                                                                           | 5.74                                                                                        |
| 9                                                                                           | GUJARAT                                                                                     | 184                                                                                         | 67.87                                                                                       | 404                                                                                         | 126.75                                                                                      |
| 10                                                                                          | HARYANA                                                                                     | 46                                                                                          | 20.47                                                                                       | 75                                                                                          | 13.55                                                                                       |
| 11                                                                                          | HIMACHAL PRADESH                                                                            | 5                                                                                           | 0.82                                                                                        | 12                                                                                          | 1.38                                                                                        |
| 12                                                                                          | JAMMU &KASHMIR                                                                              | 1                                                                                           | 0.15                                                                                        | 2                                                                                           | 1.41                                                                                        |
| 13                                                                                          | JHARKHAND                                                                                   | 1                                                                                           | 0.77                                                                                        | 1                                                                                           | 0.06                                                                                        |
| 14                                                                                          | KARNATAKA                                                                                   | 10                                                                                          | 2.82                                                                                        | 17                                                                                          | 6.82                                                                                        |
| 15                                                                                          | KERALA                                                                                      | 3                                                                                           | 0.34                                                                                        | 3                                                                                           | 0.05                                                                                        |
| 16                                                                                          | MADHYAPRADESH                                                                               | 20                                                                                          | 6.75                                                                                        | 30                                                                                          | 7.84                                                                                        |
| 17                                                                                          | MAHARASHTRA                                                                                 | 91                                                                                          | 30.89                                                                                       | 157                                                                                         | 89.91                                                                                       |
| 18                                                                                          | ORISSA                                                                                      |                                                                                             |                                                                                             | 1                                                                                           | 0.15                                                                                        |
| 19                                                                                          | PONDICHERY                                                                                  | 1                                                                                           | 0.43                                                                                        | 1                                                                                           | 0.03                                                                                        |
| 20                                                                                          | PUNJAB                                                                                      | 178                                                                                         | 21.92                                                                                       | 315                                                                                         | 20.89                                                                                       |
| 21                                                                                          | RAJASTHAN                                                                                   | 26                                                                                          | 10.43                                                                                       | 60                                                                                          | 21.48                                                                                       |
| 22                                                                                          | TAMIL NADU                                                                                  | 190                                                                                         | 42.61                                                                                       | 281                                                                                         | 29.3                                                                                        |
| 23                                                                                          | UTTAR PRADESH                                                                               | 21                                                                                          | 4.87                                                                                        | 40                                                                                          | 7.04                                                                                        |
| 24                                                                                          | WEST BENGAL                                                                                 | 24                                                                                          | 8.67                                                                                        | 43                                                                                          | 12.98                                                                                       |
|                                                                                             | Total                                                                                       | 863                                                                                         | 239.67                                                                                      | 1550                                                                                        | 385.37                                                                                      |

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