Impact of COVID 19 on Indian Textile Industry

Indian textile is one of the most established industries in the country. India exported textile and clothing at nearly US$ 38.70 billion in the FY 2019 and is estimated to reach a US$ 82 billion target by FY 2021.

Overview

The textile industry of India is divided into many sectors; mostly based on two main categories known as hand-spun and hand-woven material areas. This material business is further linked to agribusiness as well as India’s antiquated cultural production segments. This makes the nation suitable to meet the market needs on the local and the global levels both. Also, the country is the largest producer of cotton followed by jute; increasing the export value for such fabric materials and clothing.

Market Size

There are 1200 textile mills operating in India from small to mid-sized and large that have 34 million cotton textile spindles. The cotton yarns that are produced from them contribute to 70% of Indian export. On the contrary China has 40 million spindles for cotton production. Dyeing, finishing and textile processing industry in India is being taken care of by small sized units under the knitting industry on a domestic scale. The coarser yarn production spindles are again below 40 as compared to China despite the export rate of technical textiles and others from India being at 80%. This entire scenario in the market size calls for a technological upgrade in India to race up in the global export market.

The COVID-19 Impact

Several Garment factories in China were ceased due to the coronavirus pandemic. This halted the export of yarns, fabrics and other clothing industry material from India to China and other countries. This is believed to slow down the cotton yarn exports by 50%; adversely affecting the spinning mills in India.

The lockdown massively affected the running of the textile fabric manufacturers in India. Several textile products that were pre-manufactured could not be serviced further due to lockdown. As a result, the financial interest of the production units began to decline; impacting the farmers badly who were already observing a lowered price. In addition to that, the prices were believed to decline further following the crisis.

Unlock India: Unwinding the Rope to Newer Opportunities

Unlocking India from lockdown was a sigh of relief. Despite the sector facing a workforce crisis at the beginning of unlocking India with a supply chain broken, high financial support and lowered confidence of workers, industry began to function. As different areas began to reopen, workers began to return to their workplace cities to offer extensive help in order to boost the textile business.

Also, the growing numbers of coronavirus led to a higher demand for PPE kit, masks, disposable bed sheets, disposable towels and many other hygiene related technical fabrics. Not just for frontline doctors, workers and other staff in the point of care committee but also police, airport authorities required them in great numbers worldwide. This opened up the export market for technical textiles manufacturers in India for such products. Infact, the country now holds a second place in the manufacturing of PPE kits in association with 600+ certified manufacturing companies.

Government Scheme: Backing up the Textile Economy

The Central government of India has designed many schemes supporting the small scale textile manufacturing companies in India that can improve the economy. By allowing 100% FDI of automatic route in this sector can increase the chances of around US$ 140 billion investments from several countries. To back the vision of growth and development, the government also announced upgrading and modernizing 21 ready-made garment manufacturing units across 7 states.

Reference:

https://www.televisory.com/blogs/-/blogs/overview-of-textiles-industry-in-india-and-impact-of-covid-19#:~:text=The%20widespread%20impact%20of%20the,data%20released%20by%20the%20Ministry
https://www.financialexpress.com/lifestyle/world-textile-day-on-october-24-effects-of-covid-19-on-indian-textile-industry/2112550/

Scope of Technical Textiles in India

The Indian textile industries are well known world-wide due to the diverse range of culture and traditions the country has. Right from hand-woven segments to industrialized textile manufacturing, designing and more, the country is known for its derivation designs in textile. As on the global level, India is the largest producer of cotton and jute and the second largest producer of silk.

Scope of Technical Textiles in India

Being into textile production for over 4000 years now, there has been a significant scope for growth in the technical textile segment of India as well. However, in the country the market for technical textile has been incentivized from imports. But, soon after the country began to witness a growing awareness about superior utilization of these, the government planned to support domestic & develop the export markets developments of such textiles. This enabled the announcement for the National Technical Textile Mission in 2010 that aimed at assisting startup manufacturing firms and research centres in this field.

Over the span of 10 years, the field began to see growing demands in this area. India imports technical textiles worth $16 billions every year. To substitute these numbers, the government continued the National Technical Textile Mission for four years 2020-2021 to 2023-2024 outlying 1480 crore Rs. This would utilize the growing demands in the domestic market & counterpole the elevating import trends.

The former head of the Confederation of Indian Textile Industry stated that this mission will scale manufacturing and substitute imports to a great extent in the country. This holds great scope for textile fabric manufacturers in India for the coming years.

In the meanwhile, to support the mission, the government has also abolished anti-dumping duty on PTA, which is a chemical substance that is crucial for yarns and textile fibres. This is because it can be useful to draw newer areas for the textile sector that demands & generates employment for several groups of individuals in the society. This will also lead to an increasing number of textile process houses in several regions of the country.

Technical textiles are basically produced for functional uses and have a wide scope of applications in various sectors. Some of these are sports, agriculture, healthcare, defence, routine life to name a few.

Technical textiles are narrowed down to the following 12 types –

  • Agrotex

Netted type of fabrics used for varied purposes like anti-hail, bird protection nets, fishing nets, crop covers, share nets etc.

  • Buildtex

Awnings, canopies, floor & wall coverings, cotton canvas tarpaulins, architectural membranes, hoardings, signages, scaffolding nets are few that fall under this type.

  • Cloth Tex

Garments, elastic tapes, umbrella cloth, shoe laces, zip fasteners, etc. are a part of this sub-segment.

  • Geotex

Geo Components, geogrids and geonets are the basic examples of geotex.

  • HomeTex

Stuff toys, blinds, carpet backing cloth, pillow & mattress components, etc. fall under such types.

  • Indutex

Computer printed ribbon, blotting cloth, filter cloths or filtration products, conveyor belts, drive belts, etc. are a few Indutex

  • Meditex

Contact lenses, sanitary pads or diapers, artificial implants, surgical gowns etc. that often have medical usages are stated as meditex.

  • Mobiltex

Airline disposables, airbags, nylon type cords, etc. are a few mobitex types.

  • Oekotex

Waste disposables, environmental protection fabrics, recyclables, etc. fall under this type.

  • Packtex

Wrapping fabrics, jute sacks, polyolefin woven sacks, FIBC etc. are a few packtex examples.

  • Protex

Industrial gloves, bullet proof jackets, fire retardant fabrics, chemical protection clothing, high visibility clothing, etc. fall under protex.

  • Sportex

Swimwear, tents, parachute fabrics, etc. are listed in this sub-segment.

As the segment covers a wide range of industries, it can benefits the nation in a more proactive way such as below:

  • Enhance productivity in agricultural, aquaculture and horticulture fields
  • Useful in offering security and protection to armed forces
  • Provide high tensile components for transportation
  • Improve hygiene in the medical & healthcare space