In order to give impetus to the technical textiles industry in India, a government-commissioned study by a management consultancy firm has recommended inclusion of eight more focus areas, like products used in packaging, building and construction sectors, in the policy for the sector.
The present size of these eight sectors (see table) is estimated at Rs 33,000 crore and is expected to increase to Rs 57,000 crore by 2012-13. Unlike conventional textiles, which are used for clothing or furnishing, technical textiles are used for non-aesthetic utility purposes, like in bulletproof jackets, medical implants, automotive mats, seat belts, awnings and canopies.
The government has already identified four sectors within the technical textile industry for immediate attention and growth. These are meditech (hygiene and medical), geotech (civil engineering), agrotech (agriculture), and protech (protective textiles). However, it wanted to cover more areas, along with making focused policy interventions to boost both production and consumption of technical textiles in the country, according to a senior official of the Ministry of Textiles.
But lack of any database was a hindrance. Therefore, the ministry roped in ICRA Management Consulting Services (IMaCS) to study the demand and supply for various segments of technical textiles and interventions required in terms of technology, policy and regulations in the country.
IMaCS has conducted a nationwide survey of around 3,000 units for this study, which was done in 2008.
It is a large and growing sector and supports a vast array of other industries. In India, from the current size of Rs 37,000 crore, the technical textile industry is expected to grow at the rate of 11 per cent year-on-year and reach a size of Rs 62,000 by 2012-13.
According to the IMaCA survey, though India has an edge of cost competitiveness over developed countries like the US, Germany and UK, the country is still not as competitive like China. Higher cost of power, poor infrastructure and higher interest rates and taxes (including indirect taxes with anomalies on account of CST and VAT) are some of the factors that make the Indian companies uncompetitive by up to 10 per cent as compared to south Asian countries and by around 5 per cent as compared with US and Europe.
Lack of demand, cost competitiveness and availability of skilled manpower, along with negligible technology support, are some of the reasons for the technical textiles not picking up in India, according to IMaCS.
Absence of defined standards and regulations promoting usage of products made of technical textiles is another key issue behind the lack of demand for technical textiles.
According to the ministry official, the government is serious about revamping this sector and it would implement the recommendations of IMaCS after understanding their feasibility.
The ministry has invited industry’s inputs on the IMaCS report by April 20. Thereafter the textile ministry would take policy decisions after consulting other ministries, added the official. The committee for the growth of technical textiles headed by the textile commissioner would look into this and come up with appropriate policy decisions. The IMaCS recommendations include having a comprehensive fibre policy, as there are several issues in terms of the indirect taxes at various stages of the supply chain of technical textiles and textiles.
There should be reduction in excise duty on agrotech technical textile products, just as fertilisers, seeds and tractors are not subjected to levy of excise duty, says the report.
The report has also suggested making usage of seat-belts, helmets and medical disposables mandatory to increase demand. Also, formulation of standards and regulations is important for promotion of technical textiles.
It has also recommended forming of association of manufacturers of technical textiles. At present the textile ministry is managing all the industry development activities. The association would help in bringing together the manufacturers of technical textiles and undertake large scale awareness programmes (funded by industry players through annual fee for association).
