April 17, 2024
Industry

TAG Meeting Charts Growth Plan For MMF And Technical Textiles

A pivotal meeting was held in New Delhi on January 18, 2024 by the Trade Advisory Group (TAG) for Man-Made Fibre (MMF) convened under the chairmanship of the Minister of Commerce and Industry, Piyush Goyal. The gathering, attended by industry stalwarts including Bhadresh Dodhia, Chairman of SRTEPC (The Synthetic and Rayon Textiles Export Promotion Council, now MĀTEXIL), set the stage for discussions on challenges and opportunities in the MMF textiles and technical textiles sectors.

India’s exports in MMF textiles currently stand at US$ 6.5 billion, with technical textiles contributing US$ 2.5 billion to the global market. Ambitious export targets have been set by the government, aiming for US$ 11 billion in MMF textiles and US$ 10 billion in technical textiles by 2030.

Despite the promising numbers, industry participants highlighted challenges that hinder exponential growth. These include a low level of participation from MMF textiles unit in exports, the prevalence of small-sized manufacturing units with low productivity and the inverted duty structure under GST. Piyush Goyal emphasized the urgent need for modernization and technological upgradation of MMF textile units to boost competitiveness on the global stage.

The implementation of Quality Control Orders (QCOs) was well-received by SRTEPC, ensuring both raw materials and finished products meet high-quality standards. The suggestion was made to bring the entire value chain of textiles and clothing under QCOs. Furthermore, there was a call to exempt imports of products covered under QCOs against Advance Authorizations from the enforcement of QCO requirements.

The meeting shed light on a surge in imports of MMF knitted fabrics, particularly from China. Participants stressed the need to ensure an adequate supply of fibres and yarn for export production at international prices to maintain competitiveness.

The global trade of technical textiles is on an upward trajectory, projected to reach US$ 199 billion by 2030. India’s exports in technical textiles have experienced commendable growth, reaching US$ 2.8 billion in FY2022. To achieve the export target and maintain India’s global positioning, participants emphasized the need for a robust growth rate of 17% in technical textiles exports from FY2022 to FY2030.

Participants raised concerns about the Red Sea crisis, impacting textile exports as ships take a 6000 nautical miles detour around Africa. This has led to a surge in freight rates and insurance premiums, affecting the timely delivery of exports from India to Europe via the Suez Canal.

The TAG meeting concluded with a unanimous call for government support to overcome challenges, streamline policies and foster a conducive environment for the growth of MMF textiles and technical textiles. The industry expressed optimism about India emerging as a leading player in the global MMF textiles market, especially with a focus on environmental friendliness and sustainability.

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