(a) the quantity and value of man-made textile fibre exported during each of the last three years, Country-wise; and
(b) the steps taken by the Government to boost the export of man-made textile fibre?
(a) the quantity and value of man-made textile fibre exported during each of the last three years, Country-wise; and
(b) the steps taken by the Government to boost the export of man-made textile fibre?
THE MINISTER OF STATE IN THE MINISTRY OF TEXTILES
(SHRI E.V.K.S. ELANGOVAN)
(a): The value of man-made textiles fibre exported during 2004-05, 2005-06 and 2006-07
was of the order of Rs. 9214.25 crore, Rs. 9029.91 crore and Rs. 10684.16 crore respectively.
Man-made textiles fibre was exported to over a hundred countries during these three years.
Depending on the type of fibre exported, the exports were in various units such as Kgs.,
Square Metres or numbers.
(b): Various steps have been taken by the Government for the growth of textiles industry,
which include: -
(i) 100% Foreign Direct Investment is allowed in the textiles sector under the automatic
route.
(ii) The Government has de-reserved readymade garments, hosiery and knitwear from the Small
Scale Industry (SSI) sector.
(iii) The Technology Upgradation Fund Scheme (TUFS) has been made operational from 1.4.1999
to facilitate the modernisation and upgradation of the sector. The TUFS has been extended
beyond 31.3.2007 and has been modified in consultation with the industry and approval of the
Competent Authority w.e.f. 1st November 2007. The Scheme is now in operation. For the speedy
modernisation of the textiles processing sector, Government has introduced, w.e.f 20.4.2005,
a credit linked capital subsidy scheme @10% under TUFS, in addition to the existing 5%
interest reimbursement.
(iv) A new `Scheme for Integrated Textile Parks` has been formulated by merging the `Scheme
for Apparel Parks for Exports` and the `Textiles Centre Infrastructure Development Scheme`,
in order to expand the production base of the textiles and garment sector.
(v) The fiscal duty structure has been generally rationalised to achieve growth and
maximum value addition within the country. Except for mandatory excise duty on man-made
filament yarns and man-made staple fibres, the whole value addition chain has been given
the option of excise exemption.
(vi) The import of specified textiles and garment machinery has been allowed at a
concessional rate of customs duty to encourage investment and to make our textiles product
competitive in the global market. The cost of machinery has also been reduced through fiscal
policy measures.
(vii) Duty-free import of 21 items of trimmings and embellishment items is allowed to
garment exporters. This can be upto 3% of their actual export performance
during the previous year.
(viii) In 2004-05 Budget, the entire textile sector, except for man-made fibre and filament
yarn was provided optional exemption from excise duty. In 2005-06 Budget, Central Value-
aided Tax (CENVAT) on Polyester Filament Yarn has been reduced from 24% to 16%. These
modifications in fiscal levies aim at attracting more investments for modernization of textile
sector.
(ix) To facilitate import of state of the art machinery to make our products internationally
competitive in post quota regime, in 2005-06 Budget, the customs duty on textile machinery
has been brought down to 10% except 23 machinery appearing in List 49 which
attracts Basic Customs Duty (BCD) of 15%. The concessional duty of 5%
continues to be at 5% on most of the machinery items.
(x) Government has launched the Debt Restructuring Scheme w.e.f. Sept., 2003 with the
principal objective to permit banks to lend to the textile sector at 8-9% rate of interest.