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GOVERNMENT OF=20 INDIA
MINISTRY OF = TEXTILES RAJYA = SABHA UNSTARRED QUESTION NO 3612=20 ANSWERED ON 18.04.2001=20
LIFTING THE SUSPENSION OF DUTY FREE = TREATMENT FOR=20 INDIAN COTTON FABRICS BY US .

3612. =

SHRI RUMANDLA RAAMACHANDRAYYA=20

Will = the Minister=20 of TEXTILES be pleased to state:- =

(a) whether the United States has lifted the = suspension of=20 duty-free treatment for Indian cotton fabrics in a follow-up to the = Memorandum=20 of Understanding reached between the two countries on September 14, = 2000;=20

(b) if so, to what extent lifting the suspension has been = helpful to=20 India;

(c) whether all the agreements reached in this regard = between the=20 two countries have been implemented so far; and

(d) the steps = being=20 taken to help the Indian fabrics ?=20

ANSWER

MINISTER OF STATE FOR TEXTILES

(SHRI V. = DHANANJAY KUMAR)=20

(a) to (c) Pursuant to the Understanding reached with US during=20 consultations held in September 2000, India has notified the revised = combined=20 tariff bindings to WTO. On the other hand, US has lifted their = reservations on=20 the tariff binding notification and has extended GSP concession on 9 = Indian=20 handloom fabrics. The restoration of GSP benefit on these handloom = fabric lines=20 would increase the cost competitiveness of these items in US market. =

(d)=20 The Government has been taking several steps from time to time to = increase=20 textile exports including cotton fabrics exports to US market. Some of = the=20 important initiatives are as under :-

(i) The Technology = Upgradation=20 Fund Scheme (TUF) has been made operational from 1-4-1999 to facilitate = the=20 modernisation and Upgradation of this sector so that it can become more=20 competitive in international trade.

(ii) The facility to import = capital=20 goods under Export Promotion Capital Goods (EPCG) Scheme at 5% = concessional rate=20 of duty.

(iii) Government has launched Technology Mission for = Cotton.=20 One of the important ingredients of the Mission is to improve cotton = processing=20 facilities by upgrading/modernising the existing ginning and pressing = factories.=20

(iv) Allowing foreign equity participation upto 100%, through = automatic=20 route, in the textile sector with certain exceptions.

(v) To = prepare and=20 sensitise textile industry to conform to the ecological requirements of=20 importing countries by providing facilities by way of eco-testing = laboratories.=20

(vi) National Institute for Fashion Technology (NIFT), its six = branches=20 and Apparel Training & Design Centres (ATDCs) are running various = courses/=20 programmes to meet skilled manpower requirements of textile industry in = the=20 field of design, merchandising and marketing.

(vii) The National = Textile=20 Policy 2000 has recently been announced to provide the policy direction = for=20 orderly and sustained development and growth of the textile industry in = a=20 harmonious way and to give a thrust to textile exports.

(viii) A = conference of State Ministers and Secretaries incharge of Textiles held = on=20 10.4.2001 resolved to promote investment in the textile sector including = weaving.

(ix) With a view to encouraging production of good = quality=20 fabrics, the custom duty on shuttleless looms has been brought to 5%.=20

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