The technical textile industry holds an immense growth opportunity in India. It is estimated that domestic technical textile industry will reach market potential of Rs 2,00,823 crore by 2020-21 from Rs 1,16,217 crore in FY18 with a CAGR of 20%, said Confederation of Indian Textile Industry (CITI). Quoting the Baseline Survey, CITI pointed out the demand for this sector is rising due to many factors including rapid urbanisation, advances in medical technology, expansion in construction sectors, awareness on safety and environmentalism and increased spending on healthcare.
Welcoming the union government’s decision to notify 207 HSN (Harmonised System Nomenclature) Codes as technical textiles, Sanjay Jain, chairman, CITI said that technical textiles are very significant for growth of entire textile industry as they are value added products manufactured primarily for technical performance and multi-functional properties with less intent on aesthetics & design.
The diverse range of technical textiles in India can be broadly grouped into 12 categories, such as agrotech, meditech, packtech, clothtech, indutech, hometech, geotech, Oekotech, protech, sportstech, buildtech and mobitech. All these sectors are expected to see a double digit growth, Jain pointed out.
Thanking the union government, Jain said it was a long standing demand by the industry and the government’s decision will give a major boost to this sector which is considered as the `Sunrise’ sector. Technical textiles provides new opportunities to the Indian industry to have long term sustainable future. They are not limited to Chapters 50 to 63 of HSN Codes pertaining to conventional textiles, but are covered under the HSN Codes spread over Chapter 1 to 99. In order to compile the data on export and import and also provide fiscal support, it was necessary to identify the HSN Codes of all the technical textile items.
According to him, the absence of clear classification of technical textiles was creating confusion and many genuine manufacturers were not getting various incentives and subsidies being allowed to this sector. This was impacting investment in the fast growing and sunrise segment of textiles. This policy intervention will definitely help the industry to invest increasingly in this sector and enable the growth of the entire textile industry.
He, however, said that India still has a long way to go as it currently lacks the ability to domestically fulfil the rising demand and to be globally competitive in this sector. There is untapped potential both in exports and domestic market of technical textiles.
To make Indian technical textiles industry globally competitive, dual policy needs to be adopted for exports as well as domestic markets. A proactive approach from government as well as industry stakeholders will be the key for Indian technical textiles to realise its full potential. One of the key steps that may be taken by the government is to establish regulatory norms for mandatory usage of technical textile items in specific industries to increase consumption. Apart from that, focus on bringing foreign direct investment in order to get the requisite technical know-how and expertise would be crucial, he further said.