The Indian textile industry is on the brink of a significant transformation, with the exports of manmade fiber (MMF) textiles projected to increase by 75% to $11.4 billion by 2030, up from around $6.5 billion in the fiscal year 2021-22. This surge is attributed to several factors, including the Production Linked Incentive (PLI) scheme and free trade agreements with nations such as the UAE and Australia.
India, currently the second-largest producer of MMF globally, specializes in products like curtains, drapes, interior blinds, curtain or bed valances of synthetic fibers, tents of synthetic fibers, and tarpaulins. These products are expected to drive the growth in exports. Technical textiles, which are largely made of MMF, are identified as a sunrise sector and are anticipated to see increased usage due to changing lifestyles, concerns for safety and health, and their environmental friendliness and sustainability. MMF textiles are considered more sustainable than cotton textiles as they require less water, are cheaper, and allow for more value addition.
The domestic MMF industry in India is primarily composed of polyester and viscose, accounting for about 94% of the volume. The demand for Polyester Filament Yarn (PFY) and Polyester Staple Fibre (PSF) is projected to grow significantly, driven by factors like increasing use in non-woven and technical textiles, changing consumer trends, rising brand consciousness, and fast-changing fashion trends. India’s export of MMF textiles and apparel was valued at $9.56 billion for the fiscal year 2021-22. The country plans to focus on tapping new markets such as Vietnam, Japan, China, and Poland, in addition to existing markets like the USA, Turkey, the UK, and Brazil. Currently, India holds about a 5% share in exports of MMF textiles to these regions.
Additionally, India produced over 1441 million kilograms of man-made fibers and over 3000 million kilograms of man-made filaments. The country has attracted significant foreign direct investment (FDI) in the textile and apparel sector, amounting to over $4.32 billion from April 2000 to June 2023. The U.S. is the top export destination for Indian MMF textiles, accounting for 27% of the exports, followed by the EU (18%), Bangladesh (12%), and the UAE (6%).
These developments showcase India’s commitment to enhancing its position in the global MMF textile market, leveraging its manufacturing capabilities and favorable trade policies to drive growth and competitiveness.