India may witness boom in technical textile segment as Productivity Linked Investment (PLI) scheme of the government has received tremendous response. Out of the total 61 proposals for investment approved under the PLI scheme, over 25 per cent or 17 proposals are for investing in technical textiles, according to the country’s ministry of textiles.
Technical textiles, which includes automotive applications, medical textiles, geotextiles, agro-textiles and protective clothing, is growing at a fast pace globally.
The Indian government had launched PLI scheme for 102 products in the man-made apparel, man-made fabrics and technical textile segments. The scheme was started by the government with the aim to take over good market share through increasing huge production capacity domestically.
According to industry experts, there is scope for rapid growth of business in non-cotton textiles in the country, with technical textile segment having the most potential for growth. Being a major exporter in the textile sector, Indian companies have enough capability and experience. Currently, China is the main supplier in the field of technical textiles.
According to the ministry, total 13 applications were approved under Part-I of PLI scheme in which each of the investment proposal will not be less than ₹300 crore. Out of these proposals, four proposals are for technical textiles, one each for man-made apparel and man-made fabrics, and the remaining seven for other products.
The four proposals of technical textiles approved in Part-I of the scheme will have an investment of ₹3,600 crore in gestation period and ₹3,829 crore investment in total. The selected companies will have total turnover of ₹35,458 crore and they will receive subsidy of ₹1,236 crore under the scheme. In total, the selected 13 companies of Part-I will invest a total of ₹10,061 crore, while they will invest ₹7,863 crore in gestation period. Their total business would be ₹88,689 crore, while subsidy would be ₹3,392 crore.
According to official information issued by the ministry, a total of 48 proposals with an investment of at least ₹100 crore each were approved under Part-II of the scheme. Of these, 13 proposals are selected for technical textiles, 9 for MMF apparel, 6 for MMF fabrics and 20 for other products.