The Union Minister of Commerce and Industry recently announced an ambitious target: to increase the export of technical textiles from the current USD 2 billion to USD 10 billion in three years. This dramatic increase represents a fivefold surge in the sector’s export revenue.
Understanding Technical Textiles
Technical textiles are functional fabrics applied across various industries including automobiles, civil engineering and construction, agriculture, healthcare, industrial safety, personal protection and more. These products derive their demand from development and industrialization within a country.
Based on usage, there are 12 segments of technical textiles: Agrotech, Meditech, Buildtech, Mobiltech, Clothtech, Oekotech, Geotech, Packtech, Hometech, Protech, Indutech and Sportech. For instance, ‘Mobiltech’ refers to products used in vehicles such as seat belts, airbags and airplane seats, while ’Geotech’, the fastest growing sub-segment, is used to hold back soil.
Growth and Current Scenario of Technical Textile
The growth of technical textiles in India has gained momentum over the past five years, growing at an annual rate of 8%. The goal is to accelerate this growth to 15-20% in the next five years. The global market stands at USD 250 billion, with India accounting for USD 19 billion of it. Despite being a promising player with a projected market worth of USD 40 billion, the biggest players remain the USA, Western Europe, China and Japan.
Challenges Facing the Technical Textile Sector
Despite the growth, the sector faces several challenges. The benefits of technical textiles remain largely unknown to the majority of the populace. The industry requires skilled workers capable of high-level work, a need not currently met by the domestic workforce. There is also a lack of product diversification due to inadequate research and development. Moreover, India imports a substantial amount of technical textiles, including cheap products from China and high-tech products from the US and Europe, indicating inadequate scale and capacity to produce sophisticated items domestically.
Opportunities in the Technical Textile Sector
However, opportunities for expansion abound. The growth of manufacturing sectors such as automobile, construction, aviation, etc., fuels the demand for technical textiles. The increased emphasis on healthcare and hygiene, coupled with the rising popularity of fitness and sports, presents significant market potential. Additionally, heightened government spending on defense and security has led to an increasing demand for technical textile equipment.
Government Initiatives for Technological Textiles’ Growth
To promote this sector’s growth, the government launched the National Technical Textile Mission in 2020 with an outlay of USD 194 million. It aims to establish India as a global leader in technical textiles. Other initiatives include the Production Linked Incentive (PLI) Scheme, dedicated Harmonized System of Nomenclature (HSN) codes for technical textiles, permitting 100% FDI under automatic route, and organizing a flagship event called Technotex India. An Amended Technology Upgradation Fund Scheme also exists to improve exports and indirectly promote investments in textile machinery.
Looking Ahead: Educating and Aligning for Growth
To foster growth, both the government and the industry must build infrastructure for educating people about technical textiles. This could involve incorporating basic information into education curriculums, conducting awareness programs, and promoting through digital and social media. Existing manpower development schemes can be modified to meet the technical textiles industry’s needs. For young and aspirant entrepreneurs, investing in research and development of technical textiles can offer significant benefits in the future.
