The textile industry of India is one of the top contributors to the country's economy. The manmade 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 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 almost 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 the raw material to the garments. The industry mainly 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.
India exports polyester, viscose, and other types of fibers, polyester yarns, spun filaments, rope, blankets, bed linen, fishing nets, motifs, and furnishing articles. During the year 2021-22, India crossed the MMF textiles targeted exports of US$ 6.1 billion, reaching US$ 6.3 billion worth of exports. This was an increase of 36% and 7% from 2020-21 and 2019-20, respectively.
Largely, the demand for Polyester Filament Yarn (PFY) is expected to grow 15-20% in fiscal 2022. Additionally, the demand for Polyester Staple Fibre (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 tons to 119.20 million tons. 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 growing focus on fitness and hygiene, rising brand consciousness, rapidly changing fashion trends, and increasing women's participation in the workforce. These trends will bode positively for the Indian synthetic and rayon textiles industry.
The leading markets for India's MMF textile exports are the USA, the UAE, Turkey, Bangladesh, Brazil, Sri Lanka, Egypt, Germany, Italy, and Belgium.
The USA was the top market for Indian MMF textiles during 2020-2021, comprising 14% of total exports, followed by the UAE and Turkey with 7% and 6% share, respectively. The USA imported MMF textiles worth US$ 665.25 million and saw positive growth of 12.20% during the stated period. The UAE imported MMF textiles worth US$ 337.07 million during the same period. Additionally, the total exports to Turkey were valued at US$ 290.76 million during 2020-21. Other key markets during 2020-21 were Bangladesh which imported MMF textiles worth US$ 272.18 million and a share of 6%, Brazil with imports worth US$ 180.29 million and a share of 4%, Sri Lanka with imports worth US$ 164.18 million and a share of 4%, Egypt with imports of US$ 128.33 million and share of 3%, and Germany with imports of US$ 122.88 million and a share of around 3%. Italy and Belgium had a share of 2% each. Turkey, Bangladesh, the USA, Brazil, and Belgium are the top importers of India's MMF fiber and yarn. The USA, the UAE, and Sri Lanka were the leading markets for Indian MMF Fabrics from April 2020-March 2021. The USA was also leading market for Indian MMF made-ups during the period, followed by UAE and Germany.
To promote exports to international markets, CCEA has launched a scheme for 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.