|
TEXTILES
The Indian Textiles Industry has an overwhelming
presence in the economic life of the country.
Apart from providing one of the basic necessities
of life, the textiles industry also plays a pivotal
role through its contribution to industrial output,
employment generation, and the export earnings
of the country.
During 2009-10,Indian textiles
industry is pegged at US$ 55 billion, 64% of which
services domestic demand. The textiles industry
accounts for 14% of industrial production; employs
35 million people and accounts for nearly 12%
share of the country's total exports basket.
The Textiles sector is the second largest provider
of employment after agriculture. Thus, the growth
and all round development of this industry has
a direct bearing on the improvement of the economy
of the nation.
The Indian textiles industry is extremely varied,
with the hand-spun and hand-woven sector at one
end of the spectrum, and the capital intensive,
sophisticated mill sector at the other. The decentralized
powerlooms/ hosiery and knitting sectors form
the largest section of the TextilesSector. The
close linkage of the Industry to agriculture and
the ancient culture, and traditions of the country
make the Indian textiles sector unique in comparison
with the textiles industry of other countries.
This also provides the industry with the capacity
to produce a variety of products suitable to the
different market segments, both within and outside
the country.
The major sub-sectors that comprise the textiles
sector include the organized Cotton/ Man-Made
Fibre Textiles Mill Industry, the Man-made Fibre/
Filament Yarn Industry, the Wool and Woollen Textiles
Industry, the Sericulture and Silk Textiles Industry,
Handlooms, Handicrafts, the Jute and Jute Textiles
Industry, and Textiles Exports.
Exports
Exports of textiles and clothing products from
India have increased steadily over the last few
years, particularly after 2004 when textiles exports
quota were discontinued.The exports basket consists
of a wide range of items comprising readymade
garments, cotton textiles, handloom textiles,
man-made fibre textiles, wool and woolen goods,
silk,jute and handicrafts including carpets.
India's textiles products, including handlooms
and handicrafts, are exported to more than a hundred
countries. However, the USA and the EU, account
for about two-third of India's textiles exports.
The other major export destinations are Canada,
U.A.E., Japan, Saudi Arabia, Republic of Korea,
Bangladesh,Turkey, etc.
The Government fixed the target for 2008-09 at
US $ 26.55 billion an increase of 20% over the
actual performance of US$ 22.14 billion in 2007-08,
for export of textiles.However, no targets were
fixed for 2009-2010.
During 2009-10 (April- December) India exported
Textiles & Clothing items worth US$ 15.91
billion as against US$ 15.59 billion in the corresponding
period of financial year 2008-09.The share of
textile exports in total exports has increased
from 10.78 per cent to 12.04 per cent during April-
December 2009 as against April- December
2008.
Sector Wise Analysis
Cotton
Sector
Cotton is one of the principal crops of the country
and is the major raw material for domestic textile
industry. It provides sustenance to million of
farmers as also the workers involved in
cotton industry, right from processing to trading
of cotton. The Indian textile industry consumes
a diverse range of fibres and yarn, but is predominantly
cotton based.
The ratio of the use of cotton to manmade fibres
and filament yarns by the domestic industry is
about 56:46. Indian Textile Industry has an overwhelming
presence in the economic life of the country.
Apart from providing one of the basic necessities
of life, the textile industry also plays a pivotal
role through its contribution to industrial output,
employment generation and the export earnings
of the country. It contributes about 14% to the
industrial production, 4% to the GDP and 14.42%
to the country's export earnings. The textile
sector is the second largest provider of employment
after agriculture. Hence, growth and all around
development of cotton and cotton industry has
a vital bearing on the overall development of
the Indian economy.
Indian Cotton Varities
India is the only country to
grow all four species of cultivated cotton Gossypium
arboreum and herbaceum (Asian cotton), G.barbadense
(Egyptian cotton) and G.hirsutum (American Upland
cotton). Gossypium hirsutum represents 90% of
the hybrid cotton production in India and all
the current Bt cotton hybrids are G.hirsutuim.
India produces large number of cotton varieties
and hybrids. Though the number of varieties in
cultivation exceeds seventy-five, 98% of the production
is contributed by about 25 varieties only.
Cotton production and productivity
Cotton is produced in India
in three zones viz., Northern zone comprising
the States of Punjab, Haryana and Rajasthan, Central
zone comprising the States of Maharashtra, Madhya
Pradesh and Gujarat and Southern zone comprising
the States of Andhra Pradesh, Karnataka and Tamil
Nadu. Besides these nine States, cotton cultivation
has gained momentum in the eastern State of Orissa.
During cotton season 2008-09,
country once again harvested higher cotton production
for the fifth consecutive year at 4.93 million
metric tons (equivalent to 29.0 million bales
of 170 kgs each).
Exports
As a part of measures to boost
cotton trade, the Government of India had liberalized
raw cotton exports since July 2001, dispensing
with the system of allocation of cotton export
quota in favour of different agencies and traders.Exports
of cotton from the country are under Open General
Licence (OGL) since July
2001. During the year 2008-09, the cotton exports
from the country reached at US$ 850 million including
35 lakh bales.
The details of exports of cotton during last three
years and projection of 2009-10,are given below:
|
Year
|
Qty.
(in lakh bales of 170 kgs each)
|
Value
(in US$ million)
|
|
2006-07
|
58.00 |
1170 |
|
2007-08
|
88.50 |
1850 |
|
2008-09
|
35.00
|
850 |
| 2009-10
(Estimated) |
55.00 |
NA |
Quantity figures as per Cotton
Advisory Board (CAB)
Value figures as per DGCIS Kolkata
Source:
Annual Report 2009-10,Ministry of Textiles
Man-Made Staple Fibre and
Filament Yarn
The production of man-made
staple fibre industry is expected to increase
by 19% during 2009-10. The production of all the
Manmade staple fibres except polypropylene staple
fibre are expected to record a positive growth
in 2009-10 as compared to previous year. Viscose,
Polyster and Acrylic staple fibre are expected
to increase by 29%, 16%, 20% respectively while
Polypropylene staple fibre is expected to decrease
by about 6% in 2009-10.
The total production of man-made filament yarn
is expected to increase by 7% during 2009-10.
The production of viscose, nylon and polyester
filament yarn are expected to increase by 1%,
6% and 8% respectively.
The installed capacity and
details of production of man-made staple fibre
and filament yarn are given below:
|
Type
|
No.of Units
|
Installed Capacity
(TPA)as on 30.12.2009 (P)
|
Production (Mn. Kg.)
|
|
|
|
|
2007-08
|
2008-09
(P)
|
2009-10
(Apr-Dec) (P)
|
2009-10
(P) |
|
STAPLE FIBRE
|
|
Viscose
|
6
|
418.68
|
279.90
|
232.75
|
220.86
|
301.00
|
|
Polyester
|
15
|
1182.73
|
879.61
|
750.11
|
653.54
|
870.54
|
|
Acrylic
|
8
|
153.00
|
81.23
|
79.51
|
72.08
|
95.22
|
|
Polypropylene
|
3
|
8.70
|
3.43
|
3.43
|
2.37
|
3.24
|
|
Total
|
32
|
1763.11
|
1244.17
|
1065.80
|
948.85
|
1270.00
|
|
FILAMENT YARN
|
|
Viscose
|
7 |
80.10 |
51.07 |
42.42 |
32.02 |
42.86 |
| Nylon# |
11 |
32.00 |
27.62 |
28.07 |
22.40 |
29.66 |
|
Polyester##
|
43 |
2013.49 |
1420.14 |
1332.09 |
1081.48 |
1436.46 |
|
Polypropylene#
|
13 |
17.63 |
10.51 |
15.08 |
11.34 |
14.87 |
|
Total
|
74 |
2143.22
|
1509.34 |
1417.66 |
1147.24 |
1523.85 |
P-Provisional
#=The exclusive capacity
of N.F.Y. and P.P.F.Y.
## = The Capacity under Broad Banding Scheme has
been indicated against P.F.Y.
Source: Annual Report 2009-10,Ministry
of Textiles
Jute and Jute Textiles
The Jute industry occupies an important place
in the national economy. It is one of the major
industries in the eastern region, particularly
in West Bengal. Jute, the golden fibre,meets all
the standards for 'safe' packaging in view of
being a natural, renewable, biodegradable and
eco-friendly product.
The total area under jute cultivation in India
varies between 6.38 lakh hectares to 10 lakh hectares,
which is the highest in the world. This constitutes
0.6 per cent of the total area sown during the
Kharif crop season. There is no significant change
in area under jute cultivation since 1992-93 onwards.
Jute is an important cash crop, which is as an
intercrop before paddy transplantation in most
parts of the country. This has significant contribution
to the farm income of a large section of rural
households. Production of raw jute and mesta has
witnessed a steady increase since 1951-52. It
was 13.2 lakh M.T. in Jute year 1990-91 (July-June),
which rose to 14.76 lakh M.T. in the Jute year
2008-09.
Globally, India is the largest producer and second
largest exporter of jute goods and this sector
supports the livelihood of about 40 lakh farm
families, and provides direct and indirect employment
to 4 lakh workers. There are 78 Jute mills in
the country. Of these 61 are in West Bengal, 3
each in Bihar and Uttar Pradesh, 7 in Andhra Pradesh,
and one each in Assam, Orissa, Tripura and Chhattisgarh.
Exports
The exports of Jute and Jute
Products during current financial year 2009-10(upto
October 2009) is estimated at US$ 1 billion.Cumulative
exports during April-October 2009 is of the order
of 75,999 M.Ton.
Incentives
to Jute Sector
(a) Extension of Duty Entitlement Pass Book (DEPB)
benefits to Jute products
The Director General of Foreign
Trade w.e.f August 27, 2009, revised the DEPB
rates of the jute products as shown in below table:
|
Product Code:90
|
|
Product Group: Miscellaneous
|
|
S.No
|
Description
|
DEPB Rate (%)
|
Value Cap for DEPB
entitlement
|
| 24 |
Jute Soil
Saver |
5
|
-
|
| 25 |
Jute Yarn
/ Jute Twine |
4
|
-
|
| 26 |
a. Hessian Cloth
b. Hessian made-up
|
5
6
|
US$
0.89/Kg
US$
1.22/Kg
|
| 27 |
a. Sacking Cloth
b. Sacking made-up
|
6
6
|
US$
0.67/ Kg
US$
0.89/ Kg
|
|
Product Group : Plastics
|
|
S.No
|
Description
|
DEPB Rate (%)
|
Value Cap for DEPB
entitlement
|
| 1 |
Hessian Bags
with LDPE/HDPE/PP liner/Lamination and with/without
Zipper/Handle |
3
|
US$ 3.88/Kg.
|
| 2 |
Jute
Bags with HDPE liner/ LDPEliner/ Lamination
with/without Zipper/Handle |
3
|
US$ 3.88/Kg
|
| 3 |
PVC fabricated
bags (made 5from PVC leather cloth backed
jute and polypropelene) |
5
|
-
|
| 4 |
Poly
jute bags |
3
|
-
|
(b) Technology Upgradation Fund Scheme (TUFS)
The Scheme provides a focal point for modernization
efforts through technology upgradation in the
industry. The salient features of the Scheme are
as follows:
Under the Technology Upgradation Fund Scheme (TUFS),
interest reimbursement of 5% on the interest actually
charged by identified financial institutions on
sanctioned projects is permissible and technology
upgradation ordinarily means induction of state-of-the-art
or near state-of-the-art technology;
The
Industrial Finance Corporation of India (IFCI)
is the Nodal Agency for Jute sector; and Other
than term loans, a number of instruments like
Deferred Payment Guarantee Schemes (DPG), lease
finance, non-convertible debentures,hire purchase
scheme operated by NSIC, etc. have also been additionally
covered under the scheme.
(C) Jute Technology Mission
(JTM)
The Government approved the
Jute Technology Mission (JTM) in 2006,with four
mini-missions constituents;the Department of Agricultural
Research & Education.Ministry of Agriculture,
launched the Mini Mission I of the JTM in 2006.
Department of Agriculture & Cooperation, Ministry
of Agriculture,launched the Mini-Mission II of
JTM in 2006. The Mini Mission III & IV of
JTM were launched by the Ministry of Textiles
in 2007.
The objectives of JTM are:
- To improve yield and quality of jute fibre;
- To strengthen existing infrastructure for
development and supply of quality seeds;
- Improvement of quality of fibre through better
methods of retting and extraction technologies;
- To increase the supply of quality raw material
to the jute industry at reasonable prices and
to develop efficient market linkage for raw
jute;
- To modernize, technologically upgrade, improve
productivity,diversify and develop human resource
for the jute industry and
- To develop and commercialise innovative technology
for diversified use of jute and allied fibres.
(d) Non Plan Schemes of Jute Manufactures
Development Council (JMDC)
Jute Manufactures Development Council,by virtue
of the JMDC Act 1983 and Jute Manufactures Cess
Act, 1983, receives collections of Cess on Jute
and is mandated to undertake the following activities:
- Facilitate development work related to jute
agriculture with respect to improvement of quality
and increase in the yield of jute.
- Promotes of better marketing and sale
of jute.
- Improves productivity and efficiency of the
jute industry.
- Promotes standardization of jute manufactures.
- Market development.
- Sponsors scientific, technological and economic
research.
- Collects and disseminaties information to
all the stakeholders in Jute industry,growers,
and exporters.
Sericulture and Silk Textile
India continues to be the Second
largest producer of silk in the World. Among the
four varieties of silk produced, Mulberry accounts
for 85% (15610 MT),Eri 11.1% (2038 MT), Tasar
3.3% (603 MT) and Muga 0.6% (119MT) of the total
raw silk production in the country.
Sericulture is an important
labour-intensive and agro-based cottage industry,
providing gainful occupation to around 6.3 million
persons in rural and semi-urban areas in India.
Of these, a sizeable number of workers belong
to the economically weaker sections of society.
Exports
The earnings from Silk Exports
during the years 2007-08, 2008-09 and 2009-10
(up to
April-May,2009)are shown below-
|
Value in US$ million
|
|
S.No.
|
Items of Export
|
2007-08
|
2008-09
|
2009-10 (P)
(Apr-May)
|
|
1
|
Natural Silk Yarn Fabrics
Madeups
|
421.13
|
472.19
|
47.32
|
|
2
|
Readymade Garments
|
165.68
|
218.95
|
44.69
|
|
3
|
Silk Carpets
|
16.00
|
13.02
|
1.63
|
|
4
|
Silk Waste
|
2.69
|
1.16
|
0.02
|
|
|
Total
|
605.5
|
705.32
|
93.66
|
Source:
Annual Report 2009-10,Ministry of Textiles
Handlooms
Handloom forms a precious part
of the generational legacy and exemplifies the
richness and
diversity of our country and the artistry of the
weavers. Tradition of weaving by hand is a part
of the country's cultural ethos.
As an economic activity, handloom is the 2nd largest
employment provider next only to agriculture.
The sector with 60.40% about 35 lakh handlooms
provides employment to 65 lakh persons.Production
in the handloom sector recorded a figure of 6677
million sq. meters in the year 2008-09, which
is about 21.55% over the production figure of
5493 million sqr. meters recorded in the year
2003-04.
During 2009-10 (Provisional)
production in the handloom sector is reported
to be 3942 million sqr.meters (April to October,
2009) as compared to 3875 million sqr. meters
during the corresponding period of 2008-09.The
sector accounts for 15.9% of the total cloth produced
in the country excluding hosiery, khadi, wool
and silk during 2008-09.
The table below shows the Cloth
Production by Handloom Sector the years 2003-04
to 2009-10 (Apr-Oct):
|
Year
|
Cloth Production Handloom
|
Share of Handloom in
the total cloth production
|
Ratio of
Handloom to Powerloom
(in terms of
production cloth)
|
Total Cloth Production*
|
| 2003-04 |
5493 |
16.2 |
1:4.91 |
33874 |
| 2004-05 |
5722 |
16.1 |
1:4.95 |
35573 |
| 2005-06 |
6108 |
15.9 |
1:5.01 |
38390 |
| 2006-07 |
6536 |
15.9 |
1:5.03 |
41161 |
| 2007-08 |
6943 |
16.0 |
1:4.97 |
43265 |
| 2008-09 |
6677 |
15.9 |
1:5.04 |
42121 |
| 2009-10
(Apr-Oct) |
3942 |
14.7 |
1:5.55 |
26844 |
*The total cloth production
includes Handloom, Powerloom and Mill Sector excluding
hosiery,khadi, wool and silk.
Handicrafts
The Handicrafts Sector plays
a significant & important role in the country's
economy. It provides employment to a vast segment
of craftpersons in rural & semi urban areas
and generates substantial foreign exchange for
the country, while preserving its cultural heritage.
Handicrafts have great potential, as they hold
the key for sustaining not only the existing set
of millions of artisans spread over length and
breadth of the country, but also for the increasingly
large number of new entrants in the crafts activity.
Presently, handicrafts contribute substantially
to employment generation and exports. This sector
has witnessed a significant growth of 3% annually,
and efforts are being augmented on the core issues
for the development of the sector.
- Providing Infrastructural support for
production & Exports
- Improve quality & product diversification
with more awareness for both stakeholders &
consumer.
- A greater role for NGO as implementing partners
and participation of private resources both
human and financial.
Wool and Woollen Textiles
The wool and woollen textiles
industry is a rural based, export oriented industry
in which the organized sector, the decentralized
sector,and the rural sector complement each other.
The country is the seventh largest producer of
wool and contributes 1.8% to total world production.Of
the total production of raw wool, 5% is apparel
grade, 85% carpet grade, and 10% coarse grade.
Rajasthan (44 percent), Jammu & Kashmir(13
percent),Karnataka (12 percent) alongwith Gujarat,
Uttar Pradesh, Andhra Pradesh, Haryana (23 percent)
are the major wool producing states in the country.
There are 718 woollen units in the organized sector,
and a large number of units in the small scale
sector. Ludhiana alone accounts for 225-240 units
in the decentralized hosiery and shawl sector.
The installed capacity of the industry is about
6.04 lakh worsted spindles, and 4.37 lakh non-worsted
spindles. Wool combing capacity is around 30 million
kg., whereas, the synthetic fibre combing capacity
is 3.57 million kg. There are approximately 7,228
powerlooms in this industry.
A small quantity of specialty fibre is obtained
from Pashmina goats and Angora rabbits. There
are 958 woolen units in the country, the majority
of which are in the small scale sector. During
the XIth Five Year Plan period (2007-12).The Government
is implementing the following Schemes for the
holistic growth and development of Wool Sector:(i)
Integrated Wool Improvement & Development
Programme (IWIDP), (ii) Quality Processing of
Wool and (iii) Social Security Scheme. The Schemes
are being administered in the major wool producing
States by the Central Wool Development Board (CWDB),
Jodhpur, through respective State Government Organizations
/ NGOs, Societies,Cooperatives, etc.
The Woollen industry broadly
falls under-
Organised Sector
a) Composite Mills
b) Combing Units
c) Worsted and Non-Worsted Spinning Units
d) Knitwear and Woven Garment Units
e) Machine-made Carpet Manufacturing Units
Decentralised Sector
a) Hosiery and Knitting Units
b) Powerloom Units
c) Hand-made Carpets, Druggets, and Namadahs units
d) Independent Dyeing and Process Houses
Status of Wool & Woollen
Textiles industry
|
Total no. of existing units
in woollen industry including units in decentralized
hosiery and shawl sector
|
958
|
Total no. of persons employed including
persons associated in sheep rearing and
farming sector and weavers in carpet sector
|
27 lakhs
|
|
Total production
|
US$ 1.88
billion
|
|
Total investment
|
US$
4.44 billion (Excluding Carpet Sector)
|
|
Total Imports
|
US$ 228.93 billion*
|
|
Total Exports
|
US$ 1.27 billion*
|
*
Woollen yarn & fabric, raw wool and woolen/synthetic
rags.
** Woollen yarn fabric, made up set, RMG Wool,
Carpet Handmade
Source:
Annual Report 2009-10,Ministry of Textiles
Installed Capacity
|
i (a)
|
Wool Combing |
30 Million
Kg. |
| i (b) |
Synthetic
fibre combing |
3.57 Million
Kg. |
| ii |
Worsted
spindles |
6.04
lakhs |
| iii |
Non-Worsted
spindles |
4.37 lakhs |
| iv |
Powerlooms |
7228 |
| v(a) |
Machine- made
carpets |
0.50 Mn. Sq.
Meter |
| v(b) |
Hand-made
carpets |
9 Million
. Sq Meter |
Export
Promotion Measures
Some
of the steps taken by the Government during 2009
to support the textiles and garments industry
include the following:
Scheme announced on 2nd January 2009
- The DEPB Scheme extended
till December 31,2009 and resored the rates
at those prevailing prior to 5th November 2008.
- Restored Duty Entitlement
Pass Book (DEPB) Credit rates to those prevailing
prior to 1st September 2008. However,no benefit
to exporters of cotton textiles since there
was no reduction the DEPB rates for cotton textiles.
- Decided to remove
the all- in- cost ceilings on External Commercial
Borrowings.
- Duty Drawback revised
rates/value caps with retrospective effect i.e.
w.e.f. 1st September 2008.
- Increased value cap for
Cotton yarn from US$ 0.18 per Kg to US$ 0.27
per kg for Grey yarn and from US$ 0.31 per kg
to US$ 0.35 per kg for Dyed yarn.
- Increased rate of Drawback
for Cotton knitted fabrics from 4.5% to 5% and
value cap from US$ 0.31 per kg to US$ 0.35 per
kg.
Stimulus Package Scheme announced
on 24th february 2009
Customs Duty -
The facility of exemption from Basis Customs Duty
on imports of Naptha for generation of Electric
energy is being extend beyond 31st March 2009.
Excise
Duty -
- General Reduction in Excise Duty rates by
4% made w.e.f. 7th December 2008 is being extended
beyond 31st March 2009.
- Further reduction in the rate of Excise Duty
by 2%; i.e. from 10% to 8%.
- Retaining the rate of Central Excise Duty
on goods currently attracting Ad-Valorem rates
of 8% and 4% respectively.
Service
Tax-The rate of Service Tax on taxable services
has been reduced from 12% to 10%.
Exemption
from Income Tax for SEZ/s-Removed the anomaly
in computation of export profits with reference
to the total turnover of the assesses in SEZ/s.
Scheme
announced on 4th March 2009
The
Government announced facility of refund of service
tax paid on all input services, irrespective of
whether they are consumed inside or outside the
zone, to Special Economic Zones (SEZ) units and
developers.Previously, the government exempted
SEZ developers/units from paying a tax on services
that were consumed within the zone.
Major
achievements/ activities
- Jute Festival was organized by
the Jute Manufactures Development Council (JMDC)
at Dilli Haat,New Delhi on March 10, 2010, with
a view to increasing awareness about Jute products
among consumers.
- The Global India Textile Show (GITS
2010)-a 'Reverse Buyer Seller Meet was
organized by the Powerloom Development &
Export Promotion Council (PDEXCIL) at Coimbatore
on March 26 & 27, 2010. The decentralised
powerloom industry welcomed this event as a
major marketing effort. Over 80 overseas buyers
attended this meet.
- A seminar on Medical Textiles
on 24th March 2010 at Vijayawada was organized
by the Centre of Excellence in Meditech
of the South India Textile Research Association
(SITRA), Coimbatore, with a view to promoting
awareness amongst stakeholders.
- IIT, Delhi and the Institution of Engineers
India organized the 23rd Convention of Textile
Engineers on March 26-27, 2010 in New Delhi
on 'Innovations in textile products, processes
and machines - Key to success and growth.'
- The German Textile Machinery Manufacturers
Association (VDMA) held two workshops in New
Delhi and in Mumbai on 11th and 12th March,
2010 respectively to expose the Indian textile
entrepreneurs to the state of the art German
machinery, especially in the field of technical
textiles. This is one step forward in creating
greater collaboration between India and Germany
in the field of textiles.
- A Technical Textiles Summit on Investment
opportunities in emerging Indian market
was organized by ASSOCHAM in New Delhi on March
19-20, 2010. The summit aimed at creating awareness
about the immense prospects of technical textiles
products in India.
- Textile Association of India, Mumbai, organized
an international seminar on Organic Textiles
- Ensuring Product Integrity on March
12, 2010.
- A Silk Mark Expo was organized at Hyderabad
during March 03-08, 2010. A total of 46 stalls
displayed exclusive silk products from across
the country. The Expo had about 9,000 visitors.
Interim Budget 2009-10
- General rate of Central Excise Duty is reduced
from 10% to 8%. As a result Central Excise Duty
on Textile Machinery is reduced from 10% to
8%.
- Rate of Service Tax on taxable services is
reduced from 12% to 10%.
- Major supplementary Trade Facilitation Measures
announced on 26th February,2009 under Foreign
Trade Policy 2009-2014.
- US$ 72.08 billion
provided under promotional schemes for leather,textiles
etc., for exports made with effect from 1st
April 2009. It is in the form of 2% duty credit
scrip of free on board (FOB) value of exports
under market linked focused product scheme exclusively
for exports into US and EU.
- Benefit of 5% duty
credit script of FOB value of exports under
Focus Product Scheme has been notified for exports
of handmade carpets, in lieu of 3.5% benefit
allowed earlier under VKGUY scheme (Vishesh
Krishi and Gram Udyog Yojana).
- Technical Textiles
has been added under High-Tech Products Export
Promotion Scheme and now entitled to duty credit
scrip equivalent to 1.25% of FOB value of exports.
- Under EPCG scheme,
in case of decline in exports of a product by
more than 5%, the export obligation of that
product is to be reduced proportionately. This
provision has been extended for the year 2009-10,
for exports during 2008-09.
- DEPB/Duty credit script
utilization extended for payment of duty for
import of restricted items also.
- Procedure for claiming
duty drawback refund and refund of terminal
excise duty further simplified.
- Re-credit of 4% Special
Additional Duty (SAD), in case of payment of
duty by incentive scheme scrips such as Vishesh
Krishi And Gram Udyog Yojana (VKGUY), Focus
product and Focus Market, was allowed.
- Export obligation
period against Advance Authorizations extended
up to 36 months.
- Permitted supply of
intermediate product/s by the domestic producer
directly from the factory to the port of shipment
against Advance Intermediate Authorization.
- Dispensed with the requirement
of MODVAT/CENVAT certificate in cases where
the Customs Notification itself prescribed for
payment of CVD,inrespect of Advance Licences
issued prior to 1st April 2002.
- Export House - Reduced the
threshold limit for recognizing Premier Trading
Houses from US$ 2.22 billion in the preceding
three years and current year to US$ 1.66 billion.
Policy Initiatives
National Textile Policy 2000
The Government has formulated a National Textile
Policy (NTP) 2000 with the objective of facilitating
the industry to attain and sustain a pre-eminent
global standing in the manufacture and export
of clothing. Through NTP 2000, the Government
would endeavor to achieve the target of textile
and apparel exports from the present level of
US$11 billion to US$ 50 billion by 2010. The policy
provides for setting up a venture capital fund
for tapping knowledge-based entrepreneurs and
assisting the private sector to set up specialized
financial arrangements to fund the diverse needs
of the textile industry.
Vision of the policy
Endowed as the Indian Textile Industry is with
multifaceted advantages, the policy of the Government
is to develop a strong and vibrant industry that
can:
- Produce cloth of good quality
at acceptable prices to meet the growing needs
of the people;
- Increasingly contribute to the provision of
sustainable employment and the economic growth
of the nation; and
- Compete with confidence for an increasing
share of the global market.
Objectives of the policy
The objectives of the policy are to:
- Facilitate the Textile Industry to attain
and sustain a pre-eminent global standing in
the manufacture and export of clothing;
- Equip the Industry to withstand pressures
of import penetration and maintain a dominant
presence in the domestic market;
- Liberalise controls and regulations so that
the different segments of the textile industry
are enabled to perform in a greater competitive
environment;
- Enable the industry to build world class state-of-the-art
manufacturing capabilities in conformity with
environmental standards, and for this purpose
to encourage both Foreign Direct Investment
as well as research and development in the sector;
- Develop a strong multi-fibre base with thrust
of product upgradation and diversification;
- Sustain and strengthen the traditional knowledge,
skills and capabilities of our weavers and craftspeople;
- Enrich human resource skills and capabilities,
with special emphasis on those working in the
decentralised sectors of the Industry; and for
this purpose to revitalise the Institutional
structure;
- Expand productive employment by enabling the
growth of the industry, with particular effort
directed to enhancing the benefits to the north
east region;
- Make Information Technology (IT), an integral
part of the entire value chain of textile production
and thereby facilitate the industry to achieve
international standards in terms of quality,
design and marketing and;
- Involve and ensure the active co-operation
and partnership of the State Governments, Financial
Institutions, Entrepreneurs, Farmers and Non-Governmental
Organisations in the fulfillment of these objectives.
Full
text of the policy
Natonal Jute Policy 2005
The Government has announced comprehensive National
Jute Policy 2005 with a view to develop a strong
and vibrant jute sector. The policy enunciates
that the approach for the jute sector will be
directed towards reviving the jute economy through
supportive measures such as research and development,
technology upgradation, creation of infrastructure
for storage and marketing of raw jute and product
and marketing development activities for jute
and diversified jute products.
Vision of the policy
Endowed as the Indian Jute Sector is with multifaceted
advantages, it shall be the policy of the Government
to develop a strong and vibrant sector that can:
- Ensure remunerative prices
to the jute farmers in the country;
- Produce good quality fibre and products to
meet the growing needs of the country and international
buyers;
- Increasingly contribute to the provision of
sustainable employment and the economic growth
of the nation; and
- Compete with confidence for an increasing
share of the global market.
Objectives of the policy
The objectives of the policy are to :
- Enable millions of jute farmers to produce
better quality jute fibre for value added diversified
jute products and enable them to enhance per
hectare yield of raw jute substantially;
- Facilitate the Jute Sector to attain and sustain
a pre-eminent global standing in the manufacture
and export of jute products;
- Enable the jute industry to build world class
state-of-the-art manufacturing capabilities
in conformity with environmental standards,
and, for this purpose, to encourage Foreign
Direct Investment, as well as research and development
in the sector;
- Sustain and strengthen the traditional knowledge,
skills, and capabilities of our weavers and
craftspeople engaged in the manufacture of traditional
as well as innovative jute products;
- Expand productive employment by enabling the
growth of the industry;
- Make Information Technology (IT), an integral
part of the entire value chain of jute and the
production of jute goods, and thereby facilitate
the industry to achieve international standards
in terms of quality, design, and marketing;
- Increase the quantity of exports of jute and
jute products by achieving a CAGR of 15% per
annum;
- Involve and ensure the active co-operation
and partnership of State Governments, Financial
Institutions, Entrepreneurs, and Farmers
Organisations in the fulfillment of these objectives.
Full
text of the policy
FDI Policy
As per the present policy of Government of India,
100 percent FDI is freely allowed in spinning,
weaving, processing, garments and knitting sector
under the automatic route for both new ventures
and existing companies except in cases where industrial
license is required on account of location of
such units falling in a locatioanlly restricted
area. In respect of such proposals, government
approval is required.
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