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Saturday, 04 March 2023 17:00

Indian textiles face challenges despite surge in demand for man-made fibers

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India’s surge in demand for man-made fibers is driven by the rise in demand for technical and medical textiles and the increased cost of raw materials like cotton. As a result, many weavers and spinners are blending man-made fibers to stay cost-competitive. Man-made fibers, such as viscose and polyester, are flexible, durable, and able to endure high-speed machinery, making them critical to the industry.

Ensuring the availability of quality raw materials at competitive prices is crucial for the industry's sustainability and safeguarding. The supply and demand mechanisms for raw materials must be in equilibrium to create a level playing field, enabling fair competition in the market.

With the world's shift away from China, India has an opportunity to establish itself as a leading player in the global textile industry. However, the country needs to address the challenges facing the industry and promote sustainable growth.

Reports suggest that the reintroduction of import duties on viscose is being considered, potentially increasing the import price of the fiber by up to INR 40 (0.5 USD). This could lead to increased imports of yarn and fabric, job losses, and a decline in exports.

However, to support the industry's growth, the Indian government has introduced initiatives such as the Production Linked Incentive scheme for Man-made Textiles, the National Technical Textile Mission, and the Remission of Duties and Taxes on Exported Products Scheme. However, limited supply of viscose fiber and outdated technology in the weaving industry hinder the sector's potential.