Focus on MMF Essential to Boost Textile Exports: NITI Aayog
According to a joint report by NITI Aayog and CRISIL Intelligence, India needs to place greater emphasis on man-made fiber (MMF)-based products to achieve its textile export target of US$100 billion by FY30. Additionally, there is a need for large-scale manufacturing, improved access to global markets, and increased investment in technology and innovation.
The textile sector is one of India's key manufacturing sectors. It contributes approximately 2% to the country's GDP, 11% to manufacturing Gross Value Added (GVA), and nearly 9% to merchandise exports. It employs over 45 million people. In FY25, India exported textile products worth approximately US$37.7 billion, securing the sixth position globally with a 4.1% share of global textile and apparel exports.
According to the report, the global textile market could reach **US$1.78–1.83 trillion** by 2027. Factors such as fast fashion, e-commerce, urbanization, and rising disposable income are expected to drive market growth. The growing demand for sustainable, wrinkle-resistant, quick-drying, and performance-based products is also likely to boost MMF consumption.
NITI Aayog notes that India's cotton-centric strategy is becoming a challenge, as global demand is rapidly shifting towards synthetic fibers. Cotton yarn production fell from 3,962 million kg in FY20 to 3,438 million kg in FY23. In contrast, the production of man-made filament yarn and blended/non-cotton yarn rose to 3,650 million kg.
Raw material costs and import dependency pose significant challenges for the MMF sector. India meets approximately 75% of the demand for PTA and about 65% of the demand for MEG through domestic production. The report suggests reducing the GST on PTA and MEG, as well as lowering or eliminating the 5% customs duty on MEG.
PTA capacity is expected to increase by approximately 5.5 million tonnes annually over the next 2–3 years; this could boost domestic feedstock availability and enhance the competitiveness of the MMF sector.
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