(a) whether the Government has made a joint-survey with CRISIL far making the textile
industry more export-oriented as reported in the ‘Business Standard’ April 02, 2007;
(b) if so, the details and outcome thereof;
(c) whether the Government has fixed any target to achieve the goal;
(d) if so, the details thereof; and
(e) the steps taken by the Government in this regard?
MINISTER OF THE STATE IN THE MINISTRY OF TEXTILES
(SHRI E.V.K.S. ELANGOVAN)
(a): No, Sir.
(b): Doest not arise.
(c) & (d): Government has projected a target of US$ 25060 Million for the year 2007-08.
(e): The steps taken by the Government in this regard are as follows: -
(i) 100% Foreign Direct Investment is allowed in the textile sector under the automatic
route.
(ii) The Government has de-reserved the readymade garments, hosiery and knitwear from the
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.
(iv) To improve the productivity and quality of cotton, Government has launched the
Technology Mission on Cotton (TMC). Incentives are provided for better farm practices,
quality seeds, improvement in market infrastructure and modernization of ginning and
pressing sector.
(v) A new Scheme namely “Scheme for Integrated Textile Parks†has been launched by
merging “Scheme for Apparel Parks for Exports†and “Textile Centre Infrastructure
Development Scheme†in order to expand the production base of textile and garment
sector.
(vi) 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
an option of excise exemption.
(vii) The import of specified textiles and garment machinery items has been allowed at a
concessional rate of customs duty to encourage investments and to make our textile
products competitive in the global market. The cost of machinery has also been reduced
through fiscal policy measures.
(viii) Duty-free imports of 21 items of trimmings and embellishment items are allowed to
the garment exporters, upto 3% of their actual export performance during the previous
year.
(ix) For the speedy modernisation of the textile 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.
(x) The National Institute for Fashion Technology (NIFT), its eight branches, and the
Apparel Training & Design Centres (ATDCs) are running various courses/programmes to meet
the skilled manpower requirements of the textile industry, especially apparel, in the
field of design, merchandising and marketing.
(xi) Facilities like eco-testing laboratories have been created to enable exporters to
get garments/textiles pre-tested so that they conform to the requirements of the importing
countries.