Question : OUTSOURCING HUB FOR TEXTILES



(a) whether India is emerging as a major outsourcing hub for textile services in some States;

(b) if so, the complete details thereof; and

(c) the steps taken by the Government to further enhance the country`s image as major outsourcing hub for textiles?

Answer given by the minister


MINISTER OF THE STATE IN THE MINISTRY OF TEXTILES (SMT. PANABAAKA LAKSHMI)

(a) to (c): Yes, Madam. India is emerging as outsourcing hub for textile services on account of low labour cost and also due to very nature of textile industry which is labour oriented. Low cost of raw material is another factor. Many ethnic trends and cultural diversity of India further provides huge product selection range.

The government has initiated various schemes/measures which has made the textile sector more efficient and competitive and will definitely enhance India’s image as major outsourcing hub for textiles The various schemes initiated by the Government for strengthening the textile sector are given as under:

# Technology Fund Upgradation Scheme (TUFS).

# Scheme for Integrated Textile Parks (SITP).

# Group Workshed Scheme (GWS).

# Group Insurance Scheme for development of Powerloom sector.

# Integrated Scheme for Powerloom Cluster Development.

# Marketing Development Programme for Powerloom Sector

The exports of textiles & clothing during the last 3 years has shown an increasing trend except for 2008-09 where it decreased due to economic slowdown and recession. The details are given below:-

Exports of textiles & clothing

(in US$ Million)

ITEMS 2007-2008 2008-2009 2009-2010 April - May 2009-2010 2010-2011

Fibre 2562 961 2481 148 298

Yarn 3149 2487 2701 258 693

Fabrics 3139 3370 3712 531 600

RMG 9694 10956 10720 1622 1792

Made ups 2378 2353 2459 306 449

Other Textiles 1491 1324 1347 170 260 Items
Grand Total 22413 21451 23420 3035 4092
Source: Monthly Statistics of the Foreign Trade of India. DGCIS, Kolkata.

To promote and develop handloom textiles in the country for making it outsourcing hub for textiles, Office of the Development commissioner for Handlooms (O/o DC(HL)) under Ministry of Textiles has been implementing the following schemes during the 11th Plan period:
(a) Integrated Handloom Development Scheme (IHDS)

(b) Handloom Weavers Comprehensive Welfare Scheme.

(c) Marketing & Export Promotion Scheme (MEPS).

(d) Mill Gate Price Scheme.

(e) Diversified Handloom Development Scheme.

In addition, the Department of Commerce is also facilitating promotion of export of various commodities, including handloom textile through implementation of schemes as given under:
1. Duty Entitlement Pass Book (DEPB) Scheme.

2. Focus Market Scheme.

3. Focus Product Scheme.

4. Marketing Development Assistance Scheme (MD)

5. Market Access Initiative Scheme (MAI)