India’s technical textiles exports are expected to surge by leaps and bounds in the coming years as it has just begun to explore the segment, The Synthetic and Rayon Textiles Export Promotion Council (SRTEPC) Chairman Bhadresh Dodhia has said.
“Among man-made fibres (MMF), technical textiles make up 30 per cent of the total exports. It is just the beginning for India and it will grow sharply,” he told businessline in an interview.
Vehicle to drive MMF
Sports wear, fire retardant, geo-textiles, construction, agro-tech, industrial tech and home furnishings all use technical textiles with Germany accounting for 60 per cent of technical textiles pie. Technical textiles can be made stronger than steel and used in rockets.
Dodhia said technical textiles can be the vehicle which can drive MMF exports. “Indian textiles exports are cotton-driven. Cotton makes up 60-65 per cent. This is in reverse to what is happening in the global market where MMF accounts for 70 per cent of total textile demand,” he said.
The lower share in the textiles export basket is an opportunity and India could emerge as a “favoured” supplier of MMF, Dodhia said.
10% CAGR over past 5 years
In the first quarter of the current fiscal, overall exports of technical textiles were $631 million compared with $678 million in the same period a year ago, down by 6.9 per cent. Geotech was the fastest growing segment in the quarter with 88 per cent growth followed by protective textiles with 63 per cent.
The decline in technical textiles was one of the reasons why MMF shipments from the country declined by 14 per cent to $1,338 million.
Over the past five years, the MMF demand has registered a 10 per cent CAGR after being stagnant during 2014-2018. “Indian consumers are waking up and therefore, there is significant growth. It is one reason why there is no drive for exports,” Dodhia said.
Cotton exports are limited since there are only 7 million tonnes available and therefore, MMF will have to drive textile exports, he said. “Current government policies are extremely good as they are driven towards MMF. The productivity-Linked Incentive (PLI) scheme in MMF sector has been successful,” the SRTEPC Chairman said.
Kasturi-like brand
The Ministry of Textiles has asked the association to come up with a brand that will represent MMF in the global market. “We are discussing this within our association and working out a plan to come out with a brand like Kasturi for cotton,” Dodhia said.
Though crude oil prices determine the prices of MMF products, the rates are not as volatile as cotton. “Price fluctuations in MMF are minimum. And MMF is the only solution for textiles sustainability,” the SRTEPC Chairman said.
MMF can be recycled and Prime Minister Narendra Modi wearing a jacket made out of waste plastic bottles has given the sector a new impetus. “Further boost has come through the uniform for legislative staff in the new Parliament building when the jackets are made of MMF,” he said.
The Indian government need not handhold the textile sector, particularly when the PLI scheme has proved to be progressive. However, the sector is looking for a better duty structure to be competitive in the global market. “More free trade agreements with buying nations will help us increase exports. Otherwise, the industry does not have any demand,” Dodhia said.