Question : Textile Industry


(a) whether the Government is aware that the textile industry has been struggling with falling exports, low productivity and rising prices; and

(b) if so, the details of the action taken/proposed to be taken by the Government in this regard?

Answer given by the minister

MINISTER OF STATE FOR TEXTILES
(SHRI AJAY TAMTA)

(a) & (b): Government has announced a special package to help textile industry overcome various challenges and boost exports as well as employment. Under the special package, following benefits are provided by Government:-

• Rebate on State Levies (RoSL) Scheme provides remission of State taxes/levies on export of apparel and made-ups through the mechanism of rebate.
• Under the Pradhan Mantri Paridhan Rozgar Protsahan Yojana (PMPRPY) Scheme Government provides additional 3.67% of the employers’ contribution towards EPF for new employees of garment and made-ups sectors for first 3 years of their employment. This benefit is over and above the 8.33% of employers’ contribution provided by the Government under PMRPY.
• Under Amended Technology Upgradation Fund Scheme (A-TUFS) Government provides an additional 10% capital investment subsidy for garment and made-ups units for a period of three years.
• Drawback at All Industries Rate (AIR) is given for domestic duty paid inputs even when fabrics are imported under Advance Authorization Scheme.

Further following additional steps have been taken to promote exports:

• Rates under the Merchandise Exports from India Scheme (MEIS) have been enhanced from 2% to 4% for apparel and made-ups w.e.f. 1st November 2017.
• IGST has been exempted to facilitate import of machinery under Export Promotion Capital Goods Scheme (EPCG) and raw material under Advance Authorisation.
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