Introduction
The textile industry of India is one of the top contributors to the country's economy. The Man-made Fiber (MMF) industry contributes 16% 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 FY25 (April-August 2024), MMF Fabrics were the largest exported commodity, representing 35.6% of the exports share, followed by MMF Yarns 29.8%, MMF Made-ups 26.7% and Man-made Fibers 8%.
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$ 4.85 billion in FY25 period as against exports of US$ 4.67 billion in the previous year.
During FY25 (April to August), exports grew by 5.8%, with filament yarn representing 61% of this category. Polyester Filament Yarns (PFY) dominated with a 48% share, followed by Poly-Cotton (PC) Spun Yarn (10%), and Poly-Viscose (PV) Spun Yarn, Polyester Spun Yarn, and Viscose Spun Yarn each holding a 7% share. 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, UK, Egypt, Germany, Italy, and Spain.
The USA was the top market for Indian MMF textiles during FY25, comprising 17.3% of total exports, followed by Turkey and UAE with 6.2% and 5.9% shares, respectively. The USA imported MMF textiles worth US$ 914.9 million and saw a growth of 2.3% during the stated period. The total exports to Turkey were valued at US$ 328.7 million during FY25. Additionally, UAE imported MMF textiles worth US$ 310.7 million during the same period. Other key markets during FY25 were Bangladesh which imported MMF textiles worth US$ 306.7 million with a share of 5.8 %, Brazil with imports worth US$ 223 million and a share of 4.2%, UK imported worth US$ 162.3 million and a percentage of 3.1%, and Egypt with imports of US$ 155.1 million and a share of around 2.9%. Germany, Italy and Spain had a share of 2.8%, 2.8% and 2.4% respectively. Turkey, UAE, the USA were the top importers of India's MMF fiber during FY25.
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
Man-made and Technical Textiles Export Promotion Council (MATEXIL)
Formed in 1954, the Man-made and Technical Textiles Export Promotion Council (MATEXIL) formerly known as The Synthetic and Rayon Textiles Export Promotion Council (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.
RELATED SITES
1 - Resham Bhavan
78, Veer Nariman Road
Mumbai - 400020
Maharashtra
India
Tel.:+91-22-22048797/22048690
Fax: +91-22-22048358
Email: srtepc@vsnl.com
Website: www.srtepc.org
Partners
