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Trends in Textile Engineering & Fashion Technology

Technical and Industrial Textiles in India: An Economic Overview

Badri Narayanan G*

Purdue University, USA

*Corresponding author: Badri Narayanan G, Center for Global Trade Analysis, Purdue University, USA

Submission: December 21, 2017; Published: January 09, 2018

DOI: 10.31031/TTEFT.2018.01.000503

ISSN: 2578-0271
Volume1 Issue1

Opinion

Technical textiles in India: some trends

National Technology mission on technical textiles (Tex- Summit 2007) was developed as part of India's Eleventh 5-year Plan. Consumption of technical textiles in India is highly importintensive with mainly hi-tech items like medical implants. Export/ Growth potential segments include "commodity" types like Stuffed toys, mainly produced by Small Scale Industries (SSI); also hi-tech Products: Protech, Oekotech, Sportech, Geotech and Packtech. Size: Rs. 296 in 2007-08 rose to Rs. 780 in 2014-15, from Rs. 570 in 2011-12.

Policy overview for technical textiles in India

Since early 2000's, India's National Textile policy has provisions for technical textiles. Excise structure of synthetics being reduced (consistent with the elasticity estimates from our study that suggested no substitution between cotton and synthetics).Customs Concession includes 5% basic duty on machineries used for production. Focus Product Scheme involves 2% Duty credit scrip, while TUFS (Technical Up gradation Funds Scheme) has 5% interest reimbursement & 10% capital subsidy for some machines, till 2012, since 2007. De-reservation from SSI of sanitary napkins and diapers. Recognition of Centers of Excellence for specific segments has been done.

Other Schemes include Export Promotion Capital Goods, DutyFree Import Authorization; though Duty Entitlement Passbook scheme was replaced by Duty Drawback in 2011: WTO compliance issues. No restricted/prohibited items were in tech textiles, but Standard IO norms are enforced for imports of raw materials. Institutional Mechanisms such as special committees were formed. Average tariff rates on imports of technical textiles are 10%.

Global indutech market: the case of USA

As seen in Figure 1, India has stayed relatively small in US import market of technical textiles, while other countries like China, ASEAN and Mexico have taken up the declining share of OECD. As seen in Figure 2, Impregnated fabrics, tire cords and Laminate/ Rub fabrics are major import items; Diminishing items over time include impregnated fabrics, laminates, bolting fabrics, floor/wall coverings and hosepipes; Growing items over time include Tire Cords, Straining fabrics, tracing fabrics and transmission belts.

Global tariff/trade policies

Economy-wide effects of growth in TT

Figure 1: US imports of technical textiles.

Figure 2: US imports of different types of technical textiles.

© 2018 Badri Narayanan G. This is an open access article distributed under the terms of the Creative Commons Attribution License , which permits unrestricted use, distribution, and build upon your work non-commercially.

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