MATEXIL Charts Path to Growth Amid Global Headwinds

Highlights from the 72nd Annual General Meeting | 28 September 2026

The 72nd Annual General Meeting of the Manmade & Technical Textiles Export Promotion Council (MATEXIL) was held on 28 September 2026. In his address, Chairman Shri Shaleen Toshniwal discussed the performance of India’s manmade fibre (MMF) textiles and technical textiles sectors, outlined the challenges confronting exporters, and set out a clear roadmap for future growth.

Navigating a Difficult Global Environment

Exporters faced significant pressures arising from the continuing Russia-Ukraine conflict, the conflict in West Asia, disruptions to key shipping routes, elevated freight costs, and uncertainty surrounding US tariff policies. Higher prices of petrochemical-based raw materials, particularly in the polyester value chain, further squeezed margins. The Chairman described the prevailing market situation as one of “high quotes but low transactions,” with many manufacturers adopting a cautious approach.

Despite these headwinds, global merchandise trade demonstrated resilience in 2025, and several countries responded with trade-facilitative measures rather than further restrictions.

Export Performance: Signs of Recovery

Manmade Fibre Textiles

In FY 2025-26, MMF textile exports registered a marginal decline of approximately 1%, falling from US$ 6,042.08 million to US$ 5,997.13 million. The decline was more pronounced in fibre and yarn exports, which fell by approximately 5% and 16%, respectively. Fabrics registered growth of around 1%, while made-ups recorded strong growth of approximately 11%.

Encouragingly, exports during April–July 2026 rose by approximately 3%, from US$ 1,982.09 million in April–July 2025 to US$ 2,051.06 million. Early estimates for April–August 2026 also indicated growth of around 3%, with August alone estimated to be nearly 10% higher than the corresponding month of the previous year. The Council expressed confidence that exports could cross the US$ 6 billion mark in the current financial year, supported by new trade agreements, including the India-UK CETA, India-Oman CEPA and India-New Zealand FTA, subject to their respective entry-into-force and implementation arrangements.

Technical Textiles

Technical textile exports remained relatively resilient, posting a marginal decline of about 1.4% in FY 2025-26 before showing recovery during April–July 2026. Clothtech, Oekotech and Geotech emerged as key growth segments, expanding by approximately 29%, 14% and 10%, respectively. While traditional markets remained important, the emergence of destinations such as Ghana, Greece and Oman pointed to growing opportunities for market diversification.

Supportive Policy Measures

The Chairman acknowledged a series of government initiatives that have provided relief to exporters. These included measures under the Export Promotion Mission; revisions to the Production Linked Incentive (PLI) Scheme for Textiles; the removal of Quality Control Orders on key raw materials, specifically polyester fibre and yarn and viscose staple fibre; the continuation of RoDTEP and RoSCTL up to 30 September 2026, subject to applicable government notifications; and various ease-of-doing-business provisions.

MATEXIL welcomed the reduction of GST rates on fibre, yarn and fabrics to 5% under GST 2.0, while noting that GST on key polyester raw materials such as PTA and MEG remained at 18%. The Council continued to seek resolution of the resulting inverted-duty and accumulated-input-credit issues and alignment of RoDTEP and RoSCTL rates with the actual incidence of embedded taxes and duties.

Council Initiatives and Collaborations

During the year, MATEXIL actively promoted Indian exporters through participation in major international exhibitions, including Techtextil Frankfurt 2026, where 40 companies participated through MATEXIL and around 70 Indian companies took part in the exhibition overall.

An India Day organised on the sidelines of the event drew significant attention, with around 200 participants, including buyers and representatives from Germany and other countries. A Technical Textiles Roadshow held in Manchester also formed part of the Council’s export-promotion activities during the year.

The Council also organised webinars and capacity-building programmes, hosted a CEO Conference on technical textiles on 20 November 2025 at NESCO, Mumbai, and participated in the third edition of Bharat Tex 2026, held from 14 to 17 July 2026. MATEXIL signed Memoranda of Understanding with RWTH Aachen University–ITA, Germany, and the Government of Madhya Pradesh.

Looking Ahead: Ambitious Targets, Shared Responsibility

The government has set a national target of US$ 100 billion for textile and apparel exports by 2030. Within this, the goals for MATEXIL’s sectors are US$ 11 billion for manmade fibre textiles and US$ 10 billion for technical textiles.

Achieving these targets, the Chairman emphasised, will require coordinated efforts by industry, government and the Council. Exporters were urged to invest in technology, productivity, higher-value products, quality standards, market diversification, branding, sustainability, traceability and compliance. India’s expanding network of free trade agreements and the increasing adoption of China+1 sourcing strategies by international buyers present significant opportunities, provided exporters meet the evolving regulatory and sustainability requirements of international markets.

MATEXIL reaffirmed its commitment to facilitating market access, representing industry concerns, providing information and guidance, and building the capacity of its members. The Chairman called upon members to share specific challenges and suggestions so that the Council can respond more effectively.

In closing, Shri Toshniwal expressed confidence that the dynamism and resilience of India’s exporters, supported by government policy and the efforts of MATEXIL, would enable the manmade fibre and technical textiles sectors to substantially expand their global presence in the years ahead.