Adroit Market Research - Industry Insights

The global technical textiles industry is consistently changing in terms of applications, technologies, innovation, and performance. Moreover, the demand for product innovations and developments for technical textiles is rapidly growing with newer applications and growth of user industries. An outsized part of the demand for technical textiles generates from various end-use industries like automotive, sporting goods and sportswear, environmental protection, construction, healthcare, packaging, clothing, and agriculture. The global technical textiles market is led by developed regions like the US a

The global technical textiles industry is consistently changing in terms of applications, technologies, innovation, and performance. Moreover, the demand for product innovations and developments for technical textiles is rapidly growing with newer applications and growth of user industries. An outsized part of the demand for technical textiles generates from various end-use industries like automotive, sporting goods and sportswear, environmental protection, construction, healthcare, packaging, clothing, and agriculture. The global technical textiles market is led by developed regions like the US and EU, while emerging markets like China, India are showing high growth potential.

The increasing industrialization and development of emerging countries are driving the expansion of the general market. The United States considerably has the largest marketplace for the consumption of technical textile products accounting for a share of 23% followed by Western Europe, China, and Japan with a share of 22%, 13%, and 7%, respectively. In terms of product segments Clothtech, Packtech, and Agrotech have the most important share of the global technical textiles market. Non-woven, Composites, Fibers and Meditech segments had a big share of about 75% in the global technical textiles market, but the rapid growth of the industry in the market and growing acceptance of geotextiles is predicted to drive the expansion of Mobiltech and Geotech segments.

The increase in demand for value addition has given impetus to the event of an innovative variety of textiles, namely ‘Technical Textiles’. Technical textiles include fibers and materials which are manufactured for the functional properties and associated utilities and not such a lot for aesthetic worth. The rapid industrialization in the developing nations of the planet has been the key growth factor of the technical textiles sector.

Setting up an Export Promotion Council for Technical Textiles

Given the emerging importance of technical textiles globally, and therefore the possibility of India playing a pivotal role in the industry, the government may like to explore the chance to line up an Export Promotion Council for Technical Textiles. This Council would aim at the promotion of technical textile products in the world, and apprise the government of the challenges the industry faces, and suggest possible remedies. The Council may further be entrusted with the responsibility of identifying prospective markets and fostering exports by organizing meetings, conferences, exhibitions, and workshops. While there is an existing association in the technical textiles space in the emerging countries of Asia.

Technical Textile Association (ITTA), the presence of a dedicated export promotion Council under the aegis of the Ministry of Textiles will help to reinforce exports of very specialized and upcoming industry.

Under the Ministry of Textiles, there are already various existing “Promotion Councils” which are working towards creating the requisite facilities for augmenting exports for the respective segments– these include apparels; cotton; synthetic & rayon; wool & woolens; silk; carpet; handicrafts; power loom; handloom; and jute.

Raise domestic production of specialty fibers

Various specialty fibers are used as inputs in the production of certain high-end and advanced technical textile products. Many such specialty fibers aren't manufactured in sufficient quantities indigenously. These products are being imported from China, several European countries, and the USA. The import duties levied on such products increase the value of production thereby adversely impacting price competitiveness.

The production of specialty fibers should be encouraged in India to scale back import dependence. This would require certain financial incentives that can be provided to manufacturers to boost production. Furthermore, certain special financial packages might be made available by the government to reinforce private investment during this area. The government could recognize and earmark high technology zones together with state governments where investments are often catalyzed exclusively for the technical textile sector. While sector-specific special incentives might be thought of as a catalyst during the primary few years, to promote investments during a sustainable manner, it is essential to undertake measures that help in creating an enabling ecosystem which engenders investments.

The initial incentives could include fiscal measures for the establishment of producing facilities, R&D centers, world-class logistics and infrastructure facilities and straightforward to try business facilities. It would be extremely advantageous for the Indian players to enter into a venture with overseas producers, such that the assembly of those specialist fibers, particularly aramid fibers, are often undertaken domestically, helping Indian firms get access to the specialized technology whilst providing the overseas partner an enormous domestic Indian market.

Increase Production of Technical Textile Machinery

According to industry sources, an outsized sort of machinery which is used within the production of technical textile products isn't available in India. Leading technical textile players import machinery largely from either the ECU countries or the East Asian countries like China, Taiwan, and South Korea. To scale back the reliance on imports, the Government could encourage manufacturing of such machinery locally in India – either through facilitating technology transfer, or providing incentives for foreigners to collaborate with locals in India/set up independent manufacturing units in the country.

Technical textile products possess certain functional characteristics and are manufactured for the properties and associated utilities. The event of specifications and standards for technical textile products consequently becomes crucial. Although, standards are formulated for various products, the standardization process in India needs to be expedited. A mechanism should be developed to motivate the users to make sure that the products for which tenders are placed have adhered to the standards. Generally, exports of technical textile products to developed countries mandatorily entail undertaking quality tests of such products in labs which are situated in their country. This exercise of testing the products overseas becomes very expensive for Indian exporters. Although, the testing equipment available in the laboratories are equally capable and efficient, developed countries still enforce the wants of tests being conducted on their own soil. To beat this avoidable transaction cost, the government could raise this issue at an appropriate platform with key markets while simultaneously fixing more state of art facilities, if required with foreign assistance, to realize more credibility in the discernible overseas markets.