CONTRIBUTING TO ECONOMIC GROWTH
Reference Article: by Shisir Sinha from Yojana
- Tirupati (Andhra Pradesh) and Raghurajpur (Odisha) are separated by over 1100 kilometres but one thing brings them closer and that is their association with project of linking ‘Textiles with the Tourism’.
- These are the first two centres chosen for a project aiming to give textiles and handicrafts a new dimension
- This initiative has helped, even in a limited way, the traditional sector to get a face lift.
Contribution of This Sector in Economy:
- The textile sector has been one of the oldest industries in India currently estimated at around US$ 150 billion and expected to reach US$ 250 billion soon.
- It contributed seven per cent of the industry output (in value terms), 15 per cent in export earnings and over two per cent in GDP (Gross Domestic Product) of India in 2017-18.
- This industry is now on the way to becoming the second largest manufacturer and exporter in the world, after China.
- Textiles and handicrafts have been a key source of employment. As per the latest available Annual Survey of Industries data, number of persons employed in the organized Textile and Wearing Apparel Sector is around 26,94,280 in 2016-17.
- Further, the handloom sector provides direct and indirect employment to 43 lakh weavers and allied workers.
- It is mainly an un-organised and diversified sector with estimated 70 lakh artisans 32 broad crafts categories throughout the country.
- To organize and standardize the Indian handicrafts, approximately 22.85 lakhs artisans have been trained under ‘Pahchan’ initiatives.
- For standardization of carpets, carpet rating scheme has been formulated.
- In an effort to establish authenticity of handmade products there is a scheme of handicraft mark.
- Any handicraft artisan registered under ‘Pachchan’ can utilize this portal for marketing their products.
- In order to protect the interest of cotton farmers, the Minimum Support Price (MSP) has been increased for 2018-19 by 28 per cent and 26 per cent for Medium Staple Cotton and Long Staple Cotton respectively.Also, to pass on the benefit of MSP and to ensure remunerative price to a large section of cotton farmers, there is a nodal agency called Cotton Corporation of India (CCI).
Challenges for Textile Sector:
- Growth of the textile sector depends not just upon the domestic market, but equally on the export market.
- Manufacturing costs of textile sector in India is higher due to the fragmented structure of the industry and presence of MSMEs.
- One of the key challenges which India faces is duty disadvantage of up to 9.6 per cent in important consuming markets like the European Union as compared to competing countries viz. Bangladesh, Sri Lanka, Turkey and Pakistan which have zero duty access.
Steps Taken by Government:
- Now, in order to meet these challenges, there is a package for garments and made-ups sectors.
- It offers Rebate of State Levies (RoSL) and labour law reforms and relaxation of Section 80 JJAA of Income Tax Act
- Products such as fibre, yarn and fabric in the textile value chain are being strengthened and made competitive.
- Assistance is been provided to exporters. Also, interest equalization rate for pre and post shipment credit for the textile sector has been raised from 3 per cent to 5 per cent
Keywords and Keynote from the article
- Note down the terms like “Duty Disadvantage”, if you use such terms you can fetch 1 or two marks extra.
- Use data like Indian textile industry is now on the way to becoming the second largest manufacturer and exporter in the world, after China.
Question for Mains
Growth of the textile sector depends not just upon the domestic market, but equally on the export market. (250 words).
- Introduce by providing data on textile industry, which is amply given in this article.
- Make an infographic about problems of the Textile industry in India present at least 6 to features.
- Then come to the point of how we need export market to sustain growth in textile industry.
- Present the challenges and how to overcome it to capture export market.
- Under this initiative pehchan cards are issued to register and provide Identity (ID) cards to handicraft artisans and link them to a national database.
- It is an initiative of Union Ministry of Textile.
- 1 only
- 2 only
- Both 1 and 2 only
- Neither one nor tw