(a) whether the Government has come up with any schemes to help the textile industry in the country;
(b) if so, the details of the scheme and the beneficiary industries;
(c) whether the Government has any proposal to establish Special Economic Zones (SEZ’s) for textile manufacturers only;
(d) if so, the details thereof; and
(e) if not, the reasons therefor?
MINISTER OF TEXTILES
(SMT. SMRITI ZUBIN IRANI)
(a) to (e): With a view to boost textiles sector in the country, government has initiated two important steps which were part of Budget Announcement in Lok Sabha on 01.02.2020. These are;
i) Creation of National Technical Textiles Mission with total outlay of Rs 1480 Crore. Technical textiles are textiles which are used for their functional properties, rather than for aesthetics or comfort. There are a large varities of technical textiles some of which are used in important applications such as agriculture, health and hygiene, medical applications, soil and water conservation, roads and highway, railways, airports, sea-ports, defence, protection of personnel in military, para-military, petrochemical/chemical industries, safety of fireman etc. The aim of the Mission is to position India as a major producer, consumer and exporter of technical textile products in the world map, therefore boosting its economy and technological capability.
ii) Abolition of anti-dumping duty on Purified Terephthalic Acid (PTA), which is a critical input for man-made textile fibre and yarns. Its easy availability and competitive pricing is desirable to unlock the immense potential in textile sector which is a significant employment generator.
In addition, Government is implementing various policy initiatives and schemes for supporting the development of textile industry. These schemes and initiatives which promote technology upgradation, creation of infrastructure, skill development and sectoral development in the textile sector, create a conducive environment and provide enabling conditions for textile manufacturing in the country.
In order to support the growth and modernization of the textile industry in the country, the government has been implementing several schemes, such as the Amended Technology Upgradation Fund Scheme (A-TUFS), Schemes for the development of the Powerloom Sector(Power-Tex), Schemes for Technical Textiles, Scheme for Integrated Textile Parks (SITP), Scheme for Additional Grant for Apparel Manufacturing Units under SITP (SAGAM), SAMARTH- The Scheme for Capacity Building in Textile Sector (SCBTS), Jute (ICARE- Improved Cultivation and Advanced Retting Exercise), Integrated Processing Development Scheme (IPDS), Silk Samagra, National Handloom Development Programme, National Handicraft Development Programme, Integrated Wool Development Programme (IWDP), North East Region Textiles Promotion Scheme (NERTPS), etc. The Government had also approved a special package for textile sector with an outlay of Rs. 6000 crores to boost employment generation and exports particularly in Garmenting and Made-ups.
The government approved the scheme Rebate of State and Central Taxes and Levies (ROSCTL): The scheme is expected to enhance competitiveness of apparel and made-ups exports. Rebate of taxes/ levies has been permitted through an IT driven scrip system at notified rates. Further, on 14th January 2020, Ministry of Textiles notified a special one-time additional ad-hoc incentive of upto 1% of FoB(Free on Board) value to be provided for exports of apparel and made-ups to offset the difference between RoSCTL and RoSL + Merchandise Exports from India Scheme(MEIS) @4%, from 7.3.2019 to 31.12.2019.
Investment in the textile industry is by and large in the private sector. However, Government of India only facilitates the textile industry for development and modernization by providing subsidy on investments made under various Schemes. Funds are released to achieve the desired objectives under various schemes on year to year basis. The textile agencies/organisations in the States involved in textile activities are the beneficiary agencies of above schemes. Proposals of eligible beneficiary agencies duly recommended by the State Directorate of textiles are considered for financial assistance as per the guidelines of the schemes. The government has no such proposal to establish Special Economic Zones (SEZ’s) for textile manufacturers.
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