The withdrawal of 14 quality-control orders (QCOs), including those covering key textile raw materials such as polyester fibre and yarn, will significantly widen low-cost sourcing options helping domestic players — especially MSMEs — to reduce manufacturing costs, industry executives said. The removal of the non-tariff barrier will also benefit the polymers-to-plastics value chain.
Major producers of these industrial inputs like Reliance Industries, IndoRama, state-run IOC, GAIL (India) and ONGC Petro Additions will, however, face some competition from imports, as they will have to strictly follow “import parity” pricing. Some imports could turn out to be cheaper even after tariff and freight charges, compared to prevailing domestic prices, forcing the domestic upstream units to adjust their prices. China is a leading supplier of polyester inputs to India, with other major potential exporters of these items to India being Indonesia, Korea and Thailand.
“The withdrawal of QCOs will immediately ease import restrictions, leading to greater availability of raw materials at more competitive prices,” said Suketu Shah, CEO of Vishal Fabrics, a leading denim maker from Ahmedabad. He added that the scrapping of QCOs will help address supply-side challenges faced by manufacturers, particularly MSMEs, by reducing certification delays and input costs.
The government on Thursday withdrew QCOs for 14 petrochemical products used across sectors ranging from textiles to high-performance plastics. The withdrawn orders covered 100% polyester spun grey and white yarn, polyester industrial yarn, polyester staple fibre (PSF), filament yarn (PFY), partially oriented yarn, polyvinyl chloride homopolymers, terephthalic acid (PTA), polyurethanes and polycarbonate, among others.
For India’s synthetic-textile value chain, the move comes as major relief. Mills in textile hubs such as Surat, Silvassa, Tiruppur, Ludhiana and Bhilwara — which depend heavily on imported intermediates — will see an immediate reduction in compliance costs, as QCO-driven lab testing and BIS certification had pushed up prices and created uncertainty, according to Global Trade Research Initiative (GTRI).
The withdrawal also opens access to a wider global supplier base, improving India’s competitiveness against Vietnam, Indonesia and China in the man-made fibre (MMF) apparel market.
Reliance Industries currently dominates the PTA, MEG, polypropylene, polyethylene and broader polyester value chain, while Indian Oil Corporation and other petrochemical players too are key suppliers of major polymers.
The rescinding of QCOs will also support the industry in partially mitigating the challenges arising from increased US import duties by improving the cost competitiveness of India’s downstream products,” Confederation of Indian Textile Industry (CITI) Director-General Chandrima Chatterjee said. She added that import competition might not necessarily make the domestic market less remunerative for local producers of these inputs. “The government has consistently protected the interests of domestic manufacturers by maintaining appropriate import duties on domestic PSF, PFY and related raw materials,” Chatterjee noted.
According to Shah, domestic suppliers such as Reliance and IOC generally price PSF and PFY at the landed cost of imports — a premium reflected in market data. Citing industry estimates, he noted that domestic PSF was around 26.6% and Viscose Staple Fibre (VSF) about 12% more expensive than imported equivalents in early 2025.
Recent prices reinforce this trend. “Domestic PSF is trading around ₹125–130 per kg, typically 15–19% higher than the landed cost of imports after duties and freight,” said Vishal Pacheriwal, managing director of Parnika India, a Surat-based women wear manufacturer and exporter.
He added that imported PSF from China and other markets costs about ₹110–115 per kg, while PFY is priced at ₹250–260 per kg domestically — again at a clear premium. VSF remains around ₹130–140 per kg in India, roughly 8–12% above import prices from Indonesia and China.
“The removal of QCOs is expected to narrow this price gap by easing imports, thereby improving price competitiveness for Indian manufacturers and processors,” Pacheriwal said.
According to GTRI, broader access to global suppliers will strengthen India’s ability to compete in the MMF apparel market. Competitors like Vietnam and Bangladesh have been able to source the inputs at cheaper rates from foreign suppliers, even as the QCOs restricted supplies to Indian units.
The move follows the recent cut in GST on MMF from 18% to 5%, addressing a long-pending duty inversion and improving the competitiveness of MMF textiles, which account for nearly 75% of global fibre consumption.
“The imposition of QCOs on MMF fibres and yarn had restricted availability of certain specialised raw materials, hurting the export potential of high-value MMF-based textiles and apparel,” GTRI noted. “Removing the QCOs enables smoother access to global inputs for technical textiles, polyester garments, moulded plastics and engineering goods, helping India expand beyond its current $7–8 billion in synthetic-textile exports,” the think tank added.