Technical textile is considered as the emerging area for investment in India. Though India is the second largest textiles economy in the world after China, it has an insignificant contribution in the global
technical textiles industry. India’s technical textiles market shows a promising growth of 20 per cent from $16.6 billion in 2017-18 to $28.7 billion by 2023-24, as per the baseline survey of technical textiles industry by ministry of textiles.
India is developing as a significant player in technical textiles. The rapid economic growth leading to higher disposable income as well as infrastructure development has made India a vital market for the technical textiles products. “Additionally, the country has established a foothold in the manufacturing of technical textiles owing to its technological and skilled manpower as well as rising availability of raw material”, says Piyush Goyal, Textiles Minister. Technical textiles accounts for approximately 13 per cent of India’s total textile and apparel market and contributes to India’s GDP at 0.7 per cent.
Introduction of HSN Codes
In 2019, the ministry of Textiles, Government of India dedicated 207 Harmonized System of Nomenclature (HSN) codes for technical textiles to help in monitoring the data of import and export. It also helps in providing financial support and other incentives to manufacturers. The purpose of this classification is to increase international trade and enable the market size to grow up to $26 billion by the year 2024.
Improving Economic Conditions
The technical textiles industry of India has seen an upward trend in the recent years due to improving economic conditions. Technological advancements, increase in end use applications, cost effectiveness, durability, user friendliness and eco-friendliness of technical textiles has led to the upsurge of its demand in the Indian market. India has seen a tremendous growth in this sector and captures the largest market share due to rapid urbanisation and technological advancements in medical, automobile and construction industries. This is further catalysed by easy production, low cost labour and conducive government policy support.