India’s major growth of textiles is expected to come from manmade fiber industry.

Once a stage is reached where the entire demand is fulfilled by domestic supply, raw material can be made available to lakhs of weavers involved in the polyester value chain, thereby leading to enhanced production of finished goods, enabling realization of the export targets.

Expansion of production capacity of key raw materials for manufacturing of polyester viz Purified Terephthalic Acid (PTA) and Monoethylene Glycol (MEG) is essential for increased production of the downstream industry. As of now additional capacities of PTA are being set up and lakhs of looms are also being installed by the downstream industry which is still fragmented.

During 2021-22 India’s exports of manmade fibers and manmade fiber blended textiles rose 46 per cent compared to the previous year. Exports of manmade fiber have grown 82 per cent, those of manmade fiber yarns 72 per cent, manmade fiber fabrics 30 per cent and manmade fiber made-ups 28 per cent. However, the share of the value-added segments like fabrics and made-ups in total exports has gone down from 63 per cent to 56 per cent.

In the current financial year exports have been slightly stressed in the first quarter. However, an encouraging turnaround was seen from August 2022 exports.