Introduction
The textile industry of India is one of the top contributors to the country's economy. The Man-made Fiber (MMF) industry contributes 17% of India's textile exports, and the country is the world's sixth-largest exporter of MMF textiles. MMFs are generally of two types - synthetic and cellulosic. Cellulosic fibers are made from wood pulp, and synthetic fibers are made from crude oil. The key types of synthetic fiber are polyester, acrylic, and polypropylene. The manufacturing cost of textiles is among the lowest in the world, making it a popular destination for investment. The Indian textile industry expects India’s exports of man-made fiber (MMF) textiles to increase by 75% to reach US$ 11.4 billion in 2030, up from approximately US$ 6.5 billion in 2021-22.
The MMF industry in India has been growing rapidly. The country ranks second in the production of cellulose fiber/yarn and third in synthetic fiber production worldwide. As of date, India produces all types of synthetic fibers. India produces fiber, yarn, fabrics, made ups, and home textiles. The MMF fabrics hold a majority share in the segment exports, followed by made ups and yarn. India is completely self-dependent across the value chain, from raw materials to garments. The industry constitutes of two types – polyester and viscose- which account for ~94% (in volume terms). In this, polyester accounts for around 77.5%, and viscose has the remaining share. During Apr-Nov 2023, MMF Fabrics were the largest exported commodity, representing 39% of the exports share, followed by MMF Yarns 28%, MMF Made-ups 26% and Man-made Fibers 7%.
Export Trend
India exports polyester, viscose, and other types of fibers, polyester yarns, spun filaments, rope, blankets, bed linen, fishing nets, motifs, and furnishing articles. Exports of Indian Man-made Fiber (MMF) Textiles have reached US$ 3,502.5 Mn. in Apr - Nov 2023 as against exports of US$ 3,858.2 Mn. during the corresponding period of the previous year.
During 2022-23, India reached US$ 5.78 billion worth of exports, a decrease of 15.3% over 2021-22.
During 2022-23, the quantity of Polyester Filament (US$ 874.45 million) was the top exported product in India's MMF textile exports, followed by Bulk Containers worth (US$ 861.08 million).
Largely, the demand for Polyester Filament Yarn (PFY) was expected to grow 15-20% in the fiscal year 2022. Additionally, the demand for Polyester Staple Fiber (PSF) is estimated at 14-19%. The global end-use demand for textile fibers is projected to increase by 2.80% per annum between 2015 and 2025, from 90.10 million tonnes to 119.20 million tonnes. The global end-use market for MMFs is expected to expand by 3.7% in 2025.
The demand for MMFs will be further boosted by factors like evolving consumer trends, including a growing focus on fitness and hygiene, rising brand consciousness, rapidly changing fashion trends, and increasing women's participation in the workforce. These trends will work positively for the Indian synthetic and rayon textiles industry.
Export Destinations
The leading markets for India's MMF textile exports are the USA, UAE, Turkey, Bangladesh, Brazil, Sri Lanka, Egypt, Germany, Italy, and Belgium.
The USA was the top market for Indian MMF textiles during 2022-23, comprising 15.23% of total exports, followed by Turkey and Bangladesh with 9.62% and 6.55% shares, respectively. The USA imported MMF textiles worth US$ 876.4 million and saw a decline of 11% during the stated period. The total exports to Turkey were valued at US$ 553.8 million during 2022-23. Additionally, UAE imported MMF textiles worth US$ 404 million during the same period. Other key markets during 2022-23 were Bangladesh which imported MMF textiles worth US$ 377.2 million with a share of 6.55%, Brazil imported worth US$ 169.8 million and a percentage of 2.95%, Sri Lanka with imports worth US$ 209 million and a share of 3.63%, and Italy with imports of US$ 170.5 million and a share of around 2.96%. Germany and Spain had a share of 2.01% and 2.20% respectively.
Turkey, Bangladesh, the USA are the top importers of India's MMF fiber.
The USA, Bangladesh, and Sri Lanka are the leading markets for Indian MMF fabrics. The USA was also the leading market for Indian MMF made ups during the period, followed by UAE and Germany.
Government Initiatives
The Synthetic and Rayon Textile Export Promotion Council of India provides financial assistance to exporters under the Market Development Assistance (MDA) Scheme. Under the Market Access Initiative (MAI), financial aid is provided to the exporters for marketing, capacity building, research, and project development.
Export Promotion Programmes
The Government is doing its best to promote the exports of MMF textiles through benefits and incentives. To promote exports to international markets, CCEA launched a scheme (in January 2021) for the Remission of Duties and Taxes on Exported Products (RoDTEP). This would make the exported products cost-competitive in global markets and generate better employment prospects in export-oriented manufacturing industries.
Efforts to support the industry
India has withdrawn the anti-dumping duty on Purified Terephthalic Acid (PTA), the primary raw material for manufacturing man-made fiber and yarn. India has also abolished the anti-dumping duty on viscose staple fibers and key raw materials for man-made fiber.
PLI Scheme for Textiles is another step (launched in 2021) taken by the Government to bolster the MMF industry. It specifically focuses on expanding the textiles value chain's MMF and technical textiles segments. Incentives worth Rs. 10,683 crore (US$ 1.34 billion) will be offered over five years for manufacturing notified products of MMF fabrics and MMF apparel.
Governing Body
The Synthetic and Rayon Textiles Export Promotion Council (SRTEPC)
Formed in 1954, the SRTEPC is one of India's oldest export promotion councils. The main roles of the council are to inculcate export culture and promote the exporters of Indian manmade fiber and textiles. The services of SRTEPC are to introduce buyers to exporters, information dissemination, undertake export promotion programs, conduct market studies, provide financial subsidies, create and maintain data banks, and advise the government. The council provides various services to Indian exporters such as introducing exporters to appropriate overseas buyers, providing the latest information & market entry service by sponsoring delegations, conducting market studies and surveys, etc.
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