An Overview

The Ministry The Ministry of Textiles is responsible for the formulation of policy, planning, development, export promotion and regulation of the textile industry in India. This includes all natural, artificial, and cellulosic fibers that go into the making of textiles, clothing and Handicrafts.

  • Technical Textiles is a high technology sunrise sector which is steadily gaining ground in India. Technical textiles are functional fabrics that have applications across various industries including automobiles, civil engineering and construction, agriculture, healthcare, industrial safety, personal protection etc. Based on usage, there are 12 technical textile segments; Agrotech, Meditech, Buildtech, Mobiltech, Clothtech, Oekotech, Geotech, Packtech, Hometech, Protech, Indutech and Sportech.
  • Technical Textile products derive their demand from development and industrialization in a country. Given the large scale at which emerging nations are industrialising, the market for technical textiles can only be expected to grow in tandem with industrial growth in different parts of the world. In India Technical Textile sector has registered compounded annual rate of growth of 11% during 11th Five Year Plan and as per the 12th Five Year Plan estimates by the sub-group on technical textiles, technical textile market size is expected to grow at CAGR of 20% and reach Rs. 1,58,540 crore by 2016-17 from the market size of Rs 70,151 Crore in 2012-13. Market Size in Financial Year 2015-16 is projected as Rs. 1,31,836 Crore. Technical Textiles provides new opportunity to the Indian textile industry to have long term sustainable future. Despite of achieving high growth rate the per capita consumption of technical textiles in India is 1.7 per kg vis –a vis 10-12 kg in developed countries.
The growth enablers for this sector include:

Growth of Industry Sectors A large number of technical textile products are consumed by different industries, like automotive, healthcare, infrastructure, oil & petroleum, etc. With increase in investments in industry sectors, higher consumption and growing exports, the industrial sector is poised for considerable growth.

Increasing Per Capita Income of ConsumerWhile India’s per capita income increased by 11.5% from US$ 969 in 2010-11 to US$ 1,499 in 2013-14, promising economic growth indicate corresponding trends for income growth. Holistic development will encourage higher discretionary spending and technology development.

Increasing adaptability and acceptance of products Growing awareness about the superior functionality of technical textiles will encourage higher consumption of these products.

Government’s FDI promotion initiatives To facilitate higher integration of technology into manufacturing processes and end-products, Government of India has allowed up to 100% FDI under automatic route for the technical textiles segment. Leading global manufacturers of technical textiles products will thus be able to establish manufacturing units in India, either alone or through partnerships with Indian industries. Several Central and State government agencies are working towards providing the necessary information to potential investors. These efforts have borne fruit, as several international technical textile manufacturers, like Ahlstrom, Johnson & Johnson, Du Pont, Procter & Gamble, 3M, SKAPS, Kimberly Clark, Terram, Maccaferri, Strata Geosystems, have initiated operations in India.

Investment promotion schemes by Government Investors establishing technical textile unit in India can avail several benefits from central government schemes:

• Technology Upgradation Fund Scheme (TUFS)
• Scheme for Integrated Textile Parks (SITP)
• Coverage of major machinery for technical textile manufacturing under concessional customs duty list of 5%.
• Certain technical textile products are covered under Focus Product Scheme, under which exports of such products carry duty credit scrip equivalent to 2% of FOB value of exports.
• Technology Mission on Technical Textiles (TMTT)
• Focus Incubation Centres (FIC)
• Scheme for promoting usage of Agro-textiles in India (excluding North East Region).
• Scheme for promoting usage of Agro-textiles in North East Region.
• Scheme for promoting usage of Geotechnical textiles in North East Region.

Technology Mission on Technical Textiles (TMTT)

In 2010-11, Ministry of Textiles launched the Technology Mission on Technical Textiles (TMTT) with two mini- missions for a period of five years with a fund outlay of Rs. 200 Crore during December 2010. TMTT Scheme has been extended for another two years from 2015-16 to 2016-17.

Technology Upgradation Funds Scheme (TUFS):

All technical textile machinery is covered under the Technology Upgradation Fund Scheme (TUFS). Under TUFS, specified technical textile machinery has been provided with additional benefit in terms of 10% capital subsidy in addition to 5% interest reimbursement.

Scheme for Integrated Textile Parks (SITP)

The Scheme for Integrated Textile Parks (SITP)’ was approved in the 10th Five Year Plan to provide the industry with world-class infrastructure facilities for setting up their textile units by merging the erstwhile ‘Apparel Parks for Exports Scheme (APES) and Textile Centre Infrastructure Development Scheme (TCIDS)’. Under the Scheme for Integrated Textile Parks (SITP), the Government provides assistance for creation of infrastructure in the parks to the extent of 40% limited to US$ 8.82 million.

Focus Product Scheme for Technical Textiles

The objective of this scheme is to incentivize export of products that have high export intensity or employment potential. In order to offset infrastructure inefficiencies and other associated costs involved in marketing these products, Exports of notified products to all countries (including SEZ units) shall be entitled for Duty Credit scrip equivalent to 2 % of FOB value of exports (in free foreign exchange). As per DGFT's Policy Circular No. 42 (RE-2010)/2009-14 dated 21 October 2011, there are 33 Technical Textile products that are allowed for FPS benefits under this scheme.

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