Reasons To Invest

Manmade Fibre production in 2021-22 (April-Jan) was pegged at 1803 Kg.
Manmade Filament yarn in 2021-22 (April-Jan) was pegged at 1676 Kg.
Total spun yarn production in 2021-22 (April-Jan) was pegged at 4872 Kg.

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FDI Norms

100% FDI (automatic route) in the textile and apparel sector in India. Textiles (including Dyed, Printed) has attracted over $4.34 Bn of FDI during April 2000-Sept 2023.
100%

FDI Allowed

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100% FDI (automatic route) in the textile and apparel sector in India. Textiles (including Dyed, Printed) has attracted over $4.34 Bn of FDI during April 2000-Sept 2023.

Government Support

Abolition of anti-dumping duty
  • India has removed the anti-dumping duty on Purified Terephthalic Acid (PTA), a key raw material for the manufacture of manmade fiber and yarn. GST on cotton is 5% across the entire textile value chain whereas GST rates on manmade fibers and textiles are 18%,12% and 5% on fiber, filament yarn/spun yarn and fabrics respectively. This inversion in the duty structure was corrected. So, rationalization of GST on the manmade fiber value chain will help to boost growth of the manmade fiber sector.
  • India has abolished the anti-dumping duty on viscose staple fibres, key raw materials for manmade fibre.
National Technical Textile Mission

Technical textiles is one of the fastest growing sub-segments in India and has been recognized as a champion sub-segment under textiles. With a view to position the country as a global leader in technical textiles, the Prime Minister and his Cabinet Committee on Economic Affairs (CCEA) have given the approval to set up a National Technical Textiles Mission with a total outlay of $194 Mn in February 2020. 
The Mission shall be set up for a four-year implementation period from FY 2020-24.

Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme

In order to enhance exports to international markets, CCEA chaired by Prime Minister Narendra Modi, has given its approval for introducing the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP). This would lead to cost competitiveness of exported products in international markets and better employment opportunities in export-oriented manufacturing industries.

RoDTEP scheme will take under its ambit refund of GST taxes and import/customs duties for inputs along with VAT on fuel used in transportation, mandi tax, duty on electricity used during manufacturing.

Production Linked Incentive (PLI) Scheme for Textiles

PLI Scheme for Textiles is specially focused at high value and expanding MMF and Technical Textiles segments of Textiles Value Chain. Incentives worth INR 10,683 Cr will be provided over five years for manufacturing notified products of MMF Apparel, MMF Fabrics and segments/products of Technical Textiles in India. This will give a major push to growing high value MMF segment which will complement the efforts of cotton and other natural fiber-based textiles industry in generating new opportunities for employment and trade. It will help create 50-60 global champion of exports. Overall VFY demand is projected to witness 25-30% growth. Overall VSF demand is projected to witness a growth of 35-40%

Trade Scenario

India’s export of MMF textiles was $6.3 Bn for FY 2021-22

Within the imported knitted fabrics, the major fabric types include 100% Polyester, Polyester-Spandex, Nylon and Nylon-Spandex based fabrics primarily used in sportswear & fashion wear.
USA was the top export destination accounting for 27% share, followed by EU (18%), Bangladesh (12%) and UAE (6%)
India stands 6th in exports of MMF textiles accounting 16% of share in global MMF textile market.

Major Investors

Infrastructure Map

Product Profiles

Amongst the top 15 traded MMF based categories, India has a comparatively higher share in categories like polyester filament yarn, carpets, dresses, blouses and t-shirts.

Purified Terephthalic Acid (PTA) is a key raw material component in the polyester value chain and reacts with Mono Ethylene Glycol (MEG) in the process of continuous polymerisation for producing polyester.
The PTA industry is a highly organised industry, with Reliance Industries, Mitsubishi and IOCL being the only PTA manufacturers in India. Likewise, the MEG industry is highly organized as Reliance Industries, India Glycols and IOCL being the only MEG manufacturers in India.
Polyester Staple Fibre (PSF) is lightweight, wrinkle-free, and weather-resistant. It is used as a key component in various end-use sectors such as apparel, home furnishing, construction and automotive

Invest India closely works with

Team Articles

Sep 09, 2021
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May 05, 2021
Production Linked Incentive (PLI) Scheme Decoded

Under the aegis of the 'AatmaNirbhar Bharat Abhiyan' …

Feb 03, 2021
The Budget for the Aspirational “New India”

As India revives from the shackles of Covid-19 pandemic and…

FAQ

FAQs

What are the government sponsored schemes in textile industry?

The Ministry of Textiles has rolled out various schemes like the Production Linked Incentive scheme, PM-MITRA scheme, ATUFFS scheme, National Technical Textiles Mission Scheme, SAMARTH Scheme, Silk Samagra Scheme, Integrated Wool Development Programme. The Ministry of Textiles through the Textile Committee provides information on the various schemes available for the textile sector. The schemes are aimed at providing wholistic benefits and growth opportunities to this sector.

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What is Export Promotion & Quality Assurance under Ministry of Textile?

The Export Promotion & Quality Assurance Division carries out functions under various Sections of The Textiles Committee Act, such as conducting technical studies in the textile industry, Promotion of textile exports, Establishing, adopting and recognizing standard specifications for textiles and packing materials, Specifying the type of quality control or inspection needs to be applied to textiles, providing training on the techniques of quality control to be applied to textiles etc.

 

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Is there a list of importers and exporters of technical textiles available?

There are 369 technical textiles importers and 680 technical textiles exporters in India as per the latest available figures. The list of exporters and importers along with contact details, export segment & product exported is available in the website link. 

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What are the main objectives of the Market Intelligence in Textiles?

The main objectives of MIT are:

1)  Provide Real-time Database for the Policy, Industry and Trade (Country level, product level).
2)  Suggest remedial measures/ information on change in business environment in domestic segment.
3) Augmenting Market Information for export competitiveness and policy.  

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