Question : Make in India Campaign

(a) whether the Government is aware that despite its efforts to attract investment under its Make in India campaign, sales of manufactured goods particularly textiles continuously declined since 2016-17;

(b) if so, the details thereof along with the reasons therefor;

(c) whether the demand of textiles goods was declining even before the demonetization, if so, the details thereof;

(d) whether the Government has examined the reasons for such decline, if so, the findings thereof;

(e) whether the textiles companies were reported to have cut down on their workforce in 2016, if so, the details thereof; and

(f) the measures taken by the Government to support the manufacturing sector, which constitutes 15-16 per cent of the Gross Domestic Product (GDP) and supports 12 per cent of the workforce?

MINISTER OF TEXTILES
(SMT. SMRITI ZUBIN IRANI)

(a) to (e): Sir, no such decline is evident. The overall production and Employment in the Textile Sector is showing an increasing trend during the period. This can be seen from the following data relating to some of the textile sector components:-

i. The details of Production of various textile items:

Item 2016-17 2017-18 2018-19 (Prov.)
Spun Yarn (Mn Kg) 5659 5680 5862
Man made fibre (Mn Kg) 1364 1319 1443
Man made filament yarn (Mn Kg) 1159 1187 1159
Cloth (Mn Sq. Mtr) 64421 67779 70980

ii. The details of number of persons employed/engaged in the organized Manufacturing Sector and Textiles & Wearing Apparel Sector:-
Year Number of persons employed in
Total Manufacturing sector Textiles and Wearing Apparel Sector
2013-14 1,35,38,114 24,74,903
2014-15 1,38,81,386 25,26,610
2015-16 1,42,99,710 26,48,238
2016-17 1,49,11,189 26,97,123

(f): In keeping with goal of making India’s development inclusive and participative, the Government’s central focus has been on increasing textile manufacturing by building the best-in-class manufacturing infrastructure, upgradation of technology fostering innovation, enhancing skills and traditional strengths in the textile sector. Some of the major initiatives and highlights are listed below:

i. Amended Technology Up-gradation Fund Scheme (ATUFS): With a view to promote ease of doing business in the country and achieve the vision of generating employment and promoting exports by way of technology upgradation in textile sector through “Make in India’’ with "Zero effect and Zero defect" Amended Technology Upgradation Fund Scheme (ATUFS) was launched in January 2016 with the objective to facilitate augmenting of investment, productivity, quality, employment, exports along with import substitution in textile industry and also to indirectly promote investment in textile machinery manufacturing The scheme has been designed to mobilize new investment of about Rs 95 000 cr and employment for 35 lakh persons by the year 2022.

ii. Scheme for Integrated Textile Park (SITP): provides support for creation of world-class infrastructure facilities for setting up of textile units, with a Government of India grant upto 40% of the project cost with ceiling limit of Rs. 40.00 crores for each park. The scheme is a demand driven scheme. There are a total of 59 textile parks approved under SITP.

iii. Rebate of State and Central Taxes and Levies (ROSCTL): With effect from 07.03.2019, the Central Government has launched a new scheme viz. Rebate of State and Central Taxes and Levies (ROSCTL) on Export of Garments/Made-ups. The ROSCTL Scheme provides rebate of State and Central Taxes and Levies in addition to the Duty Drawback Scheme, through the Scheme on Export of Garments/Made-ups at notified rates and value caps and will remain in force upto 31.01.2020.

iv. SAMARTH- The Scheme for Capacity Building in Textile Sector (SCBTS) for the entire value chain of textile sector, excluding Spinning and Weaving in the organized sector, for a period of three years from 2017-18 to 2019-20 with an outlay of Rs. 1300 crore. The objectives of the scheme inter alia include providing demand driven, placement oriented National Skills Qualifications Framework (NSQF) compliant skilling programmes to incentivize and supplement the efforts of the industry in creating jobs in the organised textile and related sectors and to provide skilling and skill-upgradation in the traditional sectors. 10.00 lakh persons will be trained under the scheme by March, 2020.

v. PowerTex India: A comprehensive scheme for development of Powerloom sector has been launched w.e.f 01.04.2017 to 31.03.2020 with components like Insitu-upgradation of plain Powerlooms, Group Work Shed Scheme, Yarn Bank Scheme, Common Facility Centre (CFC), Solar Energy Scheme, Pradhan Mantri Credit Scheme, etc.

vi. National Handloom Development Programme and National Handicrafts Development Programme : These programmes aim at holistic development of handloom and handicrafts clusters through integrated approach. The strategic interventions under the programme include financial assistance for new upgraded looms and accessories, design innovation, product and infrastructure development, skill upgradation, training, setting up of Mega clusters for increasing manufacturing and exports, easy access to working capital through customized Mudra loans for weavers and artisans and direct marketing support to weavers and artisans.

vii. Silk Samagra: Government of India has been implementing a Central Sector Scheme “Silk Samagra” for development of sericulture in the country with components such as Research & Development, Training, Transfer of Technology and I.T Initiatives, support to seed organizations, coordination and market development and, quality certification Systems (QCS)/ Export Brand Promotion and Technology Upgradation. R&D efforts have also been initiated to evolve new products by blending silk with other fibres such as wool, coir, cotton etc., which have demand in international markets.

viii. Jute (ICARE): A project Jute ICARE (Improved Cultivation and Advanced Retting Exercise) was introduced in 2015 for improving productivity and quality of raw jute through carefully designed interventions. The project has benefitted more than 1.9 lakhs farmers in various states in the country.

ix. North East Region Textile Promotion Scheme (NERTPS): This scheme promotes textiles industry in the North Eastern Region by providing infrastructure, capacity building and marketing support to all segments of textile industry. The scheme has an outlay of Rs. 500 crores during 2017-18 to 2019-20.

x. Integrated Wool Development Programme (IWDP): Government of India has recently approved IWDP for implementation during 2017-18 to 2019-20 after integrating and rationalization of various schemes for holistic growth of wool sector by providing support to entire chain of wool sector from wool rearer to end consumer to increase the wool production as well as its quality.

The above initiatives/ schemes are also aimed at encouraging entrepreneurs for setting up of new units as well as expansion of the existing units which have potential for generating large employment opportunities.
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