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Can India emerge an important player in technical textiles?

‘Yes, but the govt and industry need to move faster to make technical textiles the growth engine of the industry’

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	K A Samuel, Secretary General, Synthetic and Art Silk Mills Association (SASMA)

The government has rightly recognised the growth potential of technical textiles, and termed it the growth engine for the industry. This is definitely the direction in which the industry can move. The latest survey on technical textiles reveals that the share of these textiles will reach US$ 126 billion by 2010, globally.

More than 40 per cent of textile production in the developed countries is accounted for by technical textiles, a lot of which is again very high tech textiles. The developed countries are producing more and more of technical textiles, while the developing countries are still into apparel fabrics. China is fast emerging as an important producer and consumer of such differentiated textiles. Technical textiles account for as much as 20 per cent of China’s total textile production today.

India today has a negligible share in the production of technical textiles. Even for domestic consumption, we have to import from other countries. India has the potential to become a major producer and consumer of technical textiles. But for this, a number of issues have to be addressed, the duty structures for technical textiles and inputs need to be rationalised. This would encourage production of technical textiles, which would have not just a domestic base, but could also be exported. And the Indian industry need not depend only on the markets in the US and EU, but can explore the demand in the east Asian countries, which are not very well developed in this sector.

The finance minister, in his budget speech this year, stated that the estimated excise revenue from the textiles industry is Rs 3775 crore in 2002-03. The sector has availed duty drawback of nearly Rs 2300 crore, and DEPB of Rs 1300 crore. This shows that our export base will have to be improved drastically and that can be done by developing the technical textiles sector.

The major items of technical textiles are geotextiles, textiles for agriculture, horticulture and fisheries, textiles for building and light structures, textiles for medical and healthcare, textiles for protection and safety, in the public sector (army, fire service, police, etc), automotive textiles, for transport and packaging, for industrial applications, etc. The Expert Committee on Technical Textiles has rightly identified only a few products on which India should focus initially. India should concentrate on those items in which we have an advantage over other countries, and also where the requirement for such items is higher domestically, and those which have good export potential.

It is unfortunate that even as the government is aware of the potential of this sector, serious policy decisions are still not taken.

A number of raw materials for these textiles are not manufactured in the country, and have to be imported. However, the customs duty on these items is the same as that on other raw materials manufactured in the country. There is no domestic industry to protect in case of such inputs. So, why are the duties on these on the higher side? Similarly, excise duty on technical textiles is to the tune of 16 per cent, while that on other apparel fabrics is only 10 per cent. This does not encourage development of technical textiles. I believe that to give due thrust to this sector, excise duty on technical textiles should be reduced to eight per cent initially. Also, machinery for manufacture of technical textiles should be allowed to be imported at low rates of customs and CVD. Testing facilities should be arranged, R&D should be built up. Chemicals, dyes, etc should be available at international prices.

I foresee manmade fibre non-woven textiles to have immense potential in India. The market for such fabrics is expected to grow rapidly as a result of increasing disposable incomes, growing health consciousness, rising costs of natural fibres, expanding and cost-effective production of synthetic fibres, and lighter weight, higher strength and adaptability of non-woven fabrics.

It is not entirely correct to say that a market needs to be created for technical textiles. A market already exists, which is why the imports take place. Defence, medical, automobile, etc, are some of the major users of technical textiles in the country. But yes, a legislation is needed by the government to make mandatory the use of certain textiles, for reasons for safety, etc. And the government and industry have to move faster to make India an important player in this sector.

(As told to Reena Mital)