Emerging Trends in Indian Textile Industry Post-COVID Era
India has experienced significant growth in textile production, particularly in PPE kits, masks, and technical textiles, shifting from a net importer to a major global supplier. The country is focused on diversifying products, increasing exports, and enhancing capabilities across the textile value chain, positioning itself for greater market share in world trade. Recent developments in technical textiles present a lucrative opportunity for Indian manufacturers, with the government supporting initiatives to boost the sector's growth.
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October 21:3rd Session - Fiber Session - Cotton Moderator: Andrew Macdonald, Amcon, Brazil Emergence of Indian Cotton & Textiles as a major global supplier post-COVID-era Presentation by Mr Vinay Kotak Cotton Association of India 1
India's development in mask and PPE suites and other infection resistant cloth. With ramped up production of PPE kits, India has become a producer for PPE kits now from being a net importer in pre-Covid19 period. Before the Coronavirus pandemic, India used to import the majority of PPE kits from outside but the virus outbreak coupled with demand in PPE kits pushed the country to manufacture indigenously. As a result, the country has become the second largest producer of PPE Kits globally with a daily production of more than half a million PPE kits. Some of the Indian manufacturers quickly undertook substantial R&D and are producing innovative infection resistant fabrics for hospital textiles. PPE kits consumption in Indian domestic market for the period April September 2020 was approx 18 Mn Kgs. Stringent quality control and mandatory testing is put in place by the Ministry of Textiles, Govt of India. 2
India is poised to increase share in world trade in textile value chain Even though the present pandemic situation has resulted in contraction of business activities, consumption across all products and services as well as GDP of every country in the world, there are certain opportunities also arise, particularly in textile and clothing sector. Indian manufactures are also keenly looking at productdiversification as well as marketdiversification to increase export turnover in short, medium and long term. In short term, some of the strategies adopted are to increase supply of protective clothing to fight against Covid19 by increasing production of all types of masks, including medical & non-medical fashion masks and PPE / coveralls. In medium term, focus is more on addressing the weak links in the textile value chain in India by encouraging capacity building / investments to increase manufacturing capacities in weaving, knitting and processing sectors so as to plug the imbalance in manufacturing capabilities in the entire value chain , which will lead to self reliant and decrease import dependency of certain textile products. In long term, substantially increase manufacturing and export of value added textile and clothing as well as high tech technical textile products. 3
Recent developments in technical textiles in India This sunrise sector will be a big business opportunity for Indian manufacturers. According to a recent Invest India report, the global demand for technical textiles is expected to grow to $220 billion by 2025 from $165 billion in 2018. India s technical textiles market shows a growth of 20% from $16.6 billion in 2017-18 to $28.7 billion by 2020-21, according to the Baseline Survey of the technical textile industry by the Ministry of Textiles. In 2018-19, India exported an estimated $1.9 billion of technical textiles, with exports growing at a CAGR of 4% over the past four years The government of India has taken various initiatives such as allowing 100% FDI under the automatic route in this sector, and global biggies such as Du Pont, Procter & Gamble, Ahlstrom, Johnson & Johnson, and Kimberly-Clark, among others, have taken advantage of it. In 2019, the textiles ministry also dedicated 207 HSN codes to technical textiles to help in monitoring the data of import, export and providing appropriate support to manufacturers. 4
Pro-active steps taken by the Indian Govt in the development of Technical Textile sector A National Technical Textiles Mission has been set up that aims at an average growth rate of 15%-20% to increase the domestic market size of technical textiles to $40 billion-$50 billion by 2024. The mission plans to do so through market development, market promotion, international technical collaborations, investment promotions, and the Make in India initiative. The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, has given its approval to set up a National Technical Textiles Mission with a total outlay approx. US$ 200 million with a view to position the country as a global leader in Technical Textiles. The Mission would have a four year implementation period from FY 2020-21 to 2023-24. The National Technical Textiles Mission will have four components: i) Component -l : Research, Innovation and Development ii) Component -II : Market Development iii) Component III : Export Promotion iv) Component- IV : Education, Training, Skill Development 5
Conclusion Despite the economic slump and the overall demand for textiles declining in major markets because of the Covid-19 pandemic, the sector remains the second largest employer in India. By transforming a Covid-19 crisis to an opportunity, India has proven its ability to innovate and rise to the challenge with limited resources and time. Considering huge domestic market, simplified FDI policy and availability of required resources, India offers great opportunity for investors in Textiles sector, in particular cotton textiles manufacturing. Thank You ! 6
