Indian textile industry is one of the flourishing sectors of the economy. It accounts for 13% of the industrial output, 4% of the national GDP, and 16.63% of the total export revenues. By 2015, the industry is positively expected by analysts to generate 12 million jobs with an investment of 6 billion USD in textile equipments, and garment manufacturing.

Indian synthetic textile sector is contemporary and has good growth potential to emerge as a major outsourcing hub. It has changed the face of the Indian textile industry not just due to its inherent characteristics, but also because natural fibres alone would not be sufficient enough to meet the needs of the increasing population. On an average, exports of MMF textiles have grown with a CAGR of more than 22%. Apart from maintaining a reputable share in the existing markets, Indian synthetic textiles are also reaching out to new markets. Currently, they are exported to more than 175 countries across the globe. Despite all the apathy of the global recession, this sector remained unaffected with a 12% growth rate, annually. The synthetic sector consolidated Indias market position in the export markets, achieving a positive growth, till recently. Presently, the synthetic textile industry is not at healthy strides.

During 2008-09 Indian synthetic textile exports amounted for `15,767 crores, which increased to `16,861 crores in 2009-10. But of late, exports of the same fell by 1% to reach `3, 852 crores during April-June, 2010-11 from `3,898 crores in the corresponding period of the previous year. The situation worsened with a 20% drop of `3,464 crores during the second quarter of 2010-11 as against the `4,910 crores of the corresponding periods of the preceding year.