Indian synthetic textile sector is contemporary and has good growth potential to emerge as a major outsourcing hub. But, presently the synthetic textile industry is not in a healthy condition.
During 2008-09 Indian synthetic textile exports amounted to Rs 15,767 crores, which increased to Rs 16,861 crores in 2009-10. But of late, exports of the same fell by 1% to reach Rs 3, 852 crores during April-June 2010-11 from Rs 3,898 crores in the corresponding period of the previous year.
The situation worsened with a 20% drop to touch Rs 3,464 crores during the second quarter of 2010-11 as against the Rs 4,910 crores in the corresponding periods of the preceding year.
Polyester yarn prices have increased by 40%. Prices of polyester staple fibre are also witnessing an increasing trend during the recent past. Increasing prices of polyester staple yarn and inconsistent supply of raw materials are the major factors affecting the growth of the industry.
Appreciating rupee value and a radical reduction in the duty draw back rates from 10.5% to 8.5% have also played their part in worsening the situation. Export target of USD 3.7 billion fixed by the Government during 2010-11 is likely to stay unachieved. Future plans to achieve an export target of USD 7 billion by 2014 may also be affected to a greater extent.
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Fibre2fashion News Desk - India
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