Question : Production Linked Incentive Scheme

(a) whether the incentives in textile sector are designed to boost exports and not to promote production for domestic and local markets and if so, the reasons therefor;

(b) the steps taken to promote the diversity of local Handloom and Handicraft instead of forcing standardization for exports;

(c) whether the Government proposes to implement specific schemes for handloom weavers affected by the lockdown due to the pandemic; and

(d) if so, the details thereof?

Answer given by the minister

MINISTER OF TEXTILES
(SMT. SMRITI ZUBIN IRANI)

(a) & (b): The role of the government is to create a conducive environment and provide enabling conditions for textile manufacturing in the country through its various schemes aimed at promotion/upgradation of textile industries/units. The Production Linked Investment scheme of Rs 10,683/- crore over a five year period covering MMF and Technical Textiles sector has been announced in November 2020 for enhancing manufacturing capabilities which will lead to growth in domestic production both for domestic markets as well as for exports. 7 Mega Textile Parks to be set up over next three years, announced in the recent budget will also lead to increase in the production for domestic sector as well as for exports.
To develop and promote handloom sector across the country, Government of India is implementing various schemes, under which financial assistance in the form of grants-in-aid is provided to the eligible handloom agencies/weavers for raw materials, purchase of upgraded looms and accessories, design innovation, product diversification, infrastructure development, skill upgradation, lighting units, marketing of handloom products in domestic as well as overseas markets and loan at concessional rates. Important schemes being implemented in Handloom sector are:

1) National Handloom Development Programme (NHDP)
2) Comprehensive Handloom Cluster Development Scheme (CHCDS)
3) Handloom Weavers’ Comprehensive Welfare Scheme (HWCWS)
4) Yarn Supply Scheme (YSS)

Government of India, through office of Development Commission(Handicratfs) implements various schemes for promotion and development sector under National Handicraft Development Programme and Comprehensive Handicrafts Cluster Development scheme.
(c) & (d): The Government has taken proactive steps in handloom sector to address the issues arising out of pandemic as follows:

i. Textiles Minister, Government of India has requested the Chief Ministers of all States and UTs to instruct their State Handloom Corporations/Co-operatives/Agencies to make purchases of the finished inventory available with the handloom weavers/artisans so as to put some ready cash in the hands of the weavers and enable them meet their household needs.
ii. To support the handloom sector and to enable wider market for handloom weavers/producers, about 1.5 lakh handloom weavers/entities have been on-boarded on Government e-Marketplace (GeM) for supply of their products to Government Departments.
iii. The handloom weavers, and exporters from different corners of the country were connected virtually with international market. In the FY 2020-21. 8 events have been organised by Handloom Exports Promotion Council (HEPC) in the virtual mode.
iv. Yarn Supply Scheme is implemented throughout the country to make available all types of yarn. Under the Scheme freight is reimbursed, and 10% price subsidy is provided on hank yarn, which is applicable on cotton, domestic silk, wool and linen yarn with quantity caps.
v. 534 Chaupals were organized in various States to educate the weavers to avail benefits of various handloom schemes for their welfare and socio-economic development.
vi. To promote e-marketing of handloom products, 23 e-commerce entities have been engaged for online marketing of handloom products.
vii. To support the handloom sector and to enable wider market for handloom weavers/producers, about 1.5 lakh handloom weavers/entities have been on-boarded on Government e-Marketplace (GeM) for supply of their products to Government Departments.
viii. To enhance productivity and marketing capabilities and ensure higher returns for handloom workers through collective efforts and pooling of resources, 117 handloom producer companies have been formed in different States, wherein younger population of handloom weavers and workers is engaged in managing different functions of producer companies.

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