STUDY ON CONTRIBUTION OF TECHNICAL TEXTILE INDUSTRY IN

INDIAN ECONOMY

TERM PAPER

Submitted in fulfillment of the requirement of

INTERNAL ASSESSMENT

MICROECONOMICS

B.A. Economics(H)

By

MEHA PATEL(17BLS239)

Under the guidance of

DR. NAUSHEEN NIZAMI

(Assistant professor(Economics), Department of social science,SLS)

SCHOOL OF LIBERAL STUDIES

Pandit deendayal petroleum university,Gandhinagar 382355

 TABLE OF CONTENT

1) INTRODUCTION ………………………………………………………………. 2

2)LITERATURE REVIEW………………………………………………………….3

3)RESEARCH GAP…………………………………………………………………5

4)EXPLAINATION…………………………………………………………………5

5)DISCUSSION & CONCLUSION………………………………………………...11

6)BIBLIOGRAPHY…………………………………………………………………12
INTRODUCTION:

The Indian textile industry is one of the oldest and largest sectors of India. It is the most
important sector in an economy in terms of investment, output and employment. It is the second
highest employer of the country after agriculture. Availability of raw materials such as cotton,
wool, silk and jute as well as work force have made the country a one of the world's largest
producers of textiles and garments after china. but it's contribution in the global technical textile
industry is insignificant. The purpose of technical textile is to fulfil the specific requirement
driven by consumer.it is the modern concept in textile industry which is also defined as
engineering textiles or industrial textiles. Technical textile is different than conventional textiles.
The main function of conventional textiles to protect our body parts from the
surroundings/environment so, it is a primary requirement of humans whereas the main functions
of technical textile are elasticity, reinforcement, mechanical resistance, conductivity, insulation,
filtration, fire resistance, thermal resistance etc. So technical textiles have application across
various industries including automobiles, civil engineering, healthcare, industrial safety,
construction, agriculture, personal protection, furniture. This industry is growing fast in the
world. India consumes the products under all 12 categories of technical textiles it includes
Aggrotech, Meditech, Buildtech, Mobiltech, Clothtech, Oekotech, Geotech, Packtech,
Hometech, Protech, Indutech and Sportech.[ CITATION inv17 \l 16393 ] though not all of them are
produced domestically.For investment it is one of the emerging areas in India because it has huge
potential to gear up the traditional textile industry. There is no doubt that India's research
institutions are doing a good work in promoting Technical Textiles especially in meditech and
hometech fields
Sportech Sport composites, artificial turfs, parachute fabrics, sleeping bags, etc.

Protech Bullet proof jackets, fire retardant apparel, chemical protective clothing, etc., Rotech

Packtech Leno bags, soft luggage, jute hessian and sacks, shopping bags, etc.

Oekotech Geo-membranes, geo-synthetic clay liners, etc

Mobiltech Tyre cord, seat belt webbing, airbag, insulation felts, seat covers, etc.

Meditech Diapers, wipes, surgical sutures, hernia mesh, artificial ligaments, etc.

Indutech Conveyor belts, bolting cloth, coated abrasives, composites, etc.,

Hometech Fibre fill, blinds fabrics, mosquito nets, furniture fabrics, etc.,

Geotech Geo-grids, gabions, geo-bags, etc

Clothtech Coated laces, interlinings, zip fasteners, labels, etc.

Buildtech Scaffolding nets, awnings, canopies, wall coverings, etc.

Aggrotech Shade nets, crop covers, fishing nets, etc.

[ CITATION tex16 \l 16393 ]
but need lots of more efforts. In Technical textiles products and material manufactured primarily
for their functional properties and technical performance rather than for their aesthetic
characteristics. Technical textiles have application across various sectors including industrial
safety, agriculture, civil engineering and construction, automobiles, healthcare, personal
protection etc. This industry gives great contribution to the GDP of India, provides second
largest employment after agriculture sector. The exports of textiles have been up to 41.67 billion
Dollar in 2014-15 that is 4%. The technical textile market size is expected to reach INR 1,16,217
crore till 2018-19.
The paper studies the contribution of the technical textiles in Indian economy, SWOT analysis of
technical textiles, potential growth area and the domestic market of technical textiles. The data of
this study was collected from secondary sources and it is comprised of national & international
journals, ministry of textiles, market report, make in India report, government of India and other
relevant resources.

Literature review
1) Dr. Arup Rakshit, Manisha Hira & U.K Gangopadhyay researched on the topic
“Technical Textiles – What India need to do now" This paper was published in 2007.
Objective of this research was to know the importance of technical textiles and find out
new ways, means and opportunity that it offers to Indian textile industry [ CITATION
DrA072 \l 16393 ]technical textiles also offers new direction of advancement. Though
India is the 2nd largest textile economy in the world but it's contribution in the global
technical textile industry is insignificant. It is a potential area of textile industry. In order
to reach the conclusion, they used secondary data which was collected by the MOT
(ministry of textiles) and David Rigby Associates. findings revealed that Technical
Textiles is a complex phenomenon and it needs to address various issues related to
machines, technology, materials, processes and marketing. It is important to encourage
entrepreneurship into technical textiles and recognise such ventures as knowledge-based
industry. Technical textiles demand both development of products and new market so
there is a high-risk factor, for the initial period of 3 to 5 years for the investors. Therefore,
a transparent and effective policy should be formulated by government to encourage new
entrepreneurships in this business

2) Pawan Kumar Chugan researched on the topic "Diversification into Technical Textiles: A
Forward Momentum for Indian Textile Industry". The objective of this research is to
describe the salient features of technical textiles vis-à-vis opportunities for the Indian
textile industry[ CITATION Paw11 \l 16393 ]. This paper was published in 2011.He has used
secondary data in qualitative analysis. In this paper he has covered various topics like
Turbulences in Indian Textile Industry, Global Recession to Recovery vs. Textiles
Industry, definition and history of technical textiles, Diversification and opportunities in
 technical textiles. Findings revealed that in spite of having historical comparative
advantage, industry of textiles in India has been passing through turbulent times.
Although it was predicted that with the phasing out of MFAs, the country could become
globally competitive, the gains could not be sustained. Millions of jobs in this sector have
been lost because of global recession. Study also found that diversification is very
necessary for industry's survival and revival. diversification into technical textiles can
provide a forward momentum towards sustainable recovery because this segment will be
about US$ 15 billion in next three to four years and will account for about 10 per cent of
global value. This will not only reduce the import of technical textiles but will also boost
exports.

3) DR. ASIYA CHAUDHARY, MS. NAZNEEN SHAHID researched on a topic

"GROWING IMPORTANCE OF HOMETECH TEXTILES IN INDIA". 'The Home
textile market is an important part of the technical textile'. that comprises furnishings,
household textiles and upholstered furniture industry. it transforms a house into home by
improving styles, size, pattern, design. objective of this paper is to learn about the
increasing use of the technical textiles in hometech industry, to find out the market size
and domestic consumption of Hometech industry in India and to prove that demand for
homotextiles is rising in India. To know the status of Indian Hometech industry [ CITATION
DrA17 \l 16393 ] the author has studied the market size, imports and exports of Hometech
products. They used secondary data to reach the conclusion. Sources of secondary data
collection were IMaCS Analysis, IDBI, DGCIS (Directorate General of Commercial
Intelligence and Statistics). The author also has made efforts to give some suggestions for
the growth, development and improvement of the sector. findings revealed that. In the
global technical textile market, hometech contributes about 7 percent of the share and is
growing at over 9 per cent annually. A technical textile is one of the emerging areas with
huge potential in the textile field all over the world. India's research institutions are doing
a great work in promoting technical textiles particularly in the Hometech field but a lot
more remains to be done. In western countries research institutions have progressed
significantly in almost all the aspects of technical textiles. Data shows that The Hometech
industry is wide spread in India but the products with substantial exports and products
with high production levels are typically commodities which are not very R&D intensive.
Potential of technical textile is essential not only for the growth of the economy,
increasing exports or employment generation but also in terms of quality infrastructure,
protection of environment, public safety, security and an overall better world and a better
life. There are some areas where government intervention is required.
4) Mr. Shrestha Chhabra1, Dr. Vivek S. Kushwaha, Dr. Vipin Choudhary researched on the
topic "Study of statutory labour welfare benefits with special reference to textile
companies" Labour management is as important as any other resources for the
organisation. with the right direction and utilization, it would make a great contribution to
 the prosperity of the organization. This can only be achieved through satisfaction of the
labours. Objective of this is to study the perception of workers regarding the welfare
benefits provided by textile firms and impact of gender on the perception of workers
regarding welfare measures[ CITATION MrS \l 16393 ].The data of this study was collected
from both primary and secondary source. primary data was collected with the help of
questionnaire. The questionnaire was constructed according to welfare measures
described in the Factories act, 1948. secondary data for this study comprised of
publications of labour department, International labour organization, government of India
and other international and national books, journals and other sources. Data was collected
from 170 workers. findings revealed that 123 workers agreed that washing facilities are
adequate and 40 workers disagree. most of the workers agreed that medical facility (159),
shelter facility (125), canteen facility (143), creche facility (124) and labour welfare
officer carrying welfare work (116) is adequate. The study also found no difference
between males and female regarding the welfare facilities. so, it can be concluded from,
the study that most of the workers are satisfied with the welfare benefits.

RESEARCH GAP
The review of literature thus reveals a gap in so far as no study in specific in dealing with history
and growth of the technical textiles in India. Nor does any work review above tried to compare
performance of technical textiles. This study is an attempt to bridge this gap.

EXPLAINATION (MAIN BODY PART)

1) contribution of technical textiles in Indian economy
After transformation of Indian economy (post liberalisation), consumption and the demand of
technical textiles products in India has been increasing. It has also helped innovation and growth
of conventional textile products. All major players have started developing products of technical
textiles because they provide better margins in comparison to conventional textiles.
Technical textile of Indian market is spread across all 12 sectors with Packtech, Clothtech,
Mobiltech and hometech having the major share in the market. This industry currently
contributes around 0.75% of the total GDP of India at current price. The technical textile
industry contributes around 12% of Indian textile which is very less than developed countries
like china where technical textile industry accounts for 20% of the textile industry. In the
segment of Mobiltech, Geotech and Indutech the domestic consumption has seen high growth
of over 15% per annum and key segments like Packtech, Sportech, Meditech and Buildtech grew
at over 10% per annum. the demand for technical textile product is expected to be the driver in
the near future.[ CITATION KPM \l 16393 ]

2)The technical textile market across the 12-key segment from the year 2007-08 to 2017-18 is as
shown in an exhibit below
[ CITATION min18 \l 16393 ]

This graph shows that In India, technical textiles focuses on Packtech which is low-technology,
low-value product. high value product segment such as Buildtech, meditech, Indutech,
Mobiltech, Sportech have low market share.
SHARE OF TECHNICAL TEXTILES IN INDIAN TEXTILE SECTOR
[ CITATION mak182 \l 16393 ]
currently, share of technical textiles in Indian textile industry is around 13%. With the
potential of various sectors, technical textiles are poised to grow at 18% compound annual
growth rate during 2018-25
technical textiles in India is highly dependent on import. Many products like speciality yarns,
sanitary products, medical implants, webbings for seat belt, protective textiles etc. are mostly
imported from other countries. However, this sector has registered good growth in the recent
years. As per the survey of technical textile industry by MOT, Indian technical textile industry is
estimated to grow at a CAGR of 20 per cent to INR2,00,823 crore by 2020-21 from INR1,16,217
crore in 2017-18.
TRADE ANALYSIS

[ CITATION dep19 \l 16393 ]

This bar graph shows that during 2014-19 India’s exports have raised at 6.5% CAGR. And
India’s imports have raised at 8.5% CAGR. India is highly dependent on imports of high-value
technical textiles products.
The below listed top 10 technical textiles imported products account for around 50 per cent of
India’s technical textiles imports for the last six years (2013-19)
(values in USD Mn)

53% 51% 50% 50% 50% 49%

[ CITATION dep1 \l 16393 ]

In the above list India is manufacturing and exporting certain products as PVC coated fabrics,
airbags for automobiles
Analysis of technical textiles of India for the period of 2013-14 to 2018-19 indicate that Packtech
contributes 39%, followed by Indutech at 19%, hometech at 11.63% and 9% contribution from
Mobiltech. Import data indicates that Indutech has accounted for 30% of total imports, Mobiltech
at 24%, followed by hometech at 16% and Clothtech at 12%.
In addition, according to FICCI'S analysis off 207 technical textiles HSN codes trade data:
 exports from India increased by 17% in jan-jun 2019 from jan-jun 2018 to INR 7147
crores.
 imports increased by 6% from jan-june 2018 to INR 7671 crores in jan-june 2019
 so, overall trade deficit has decreased
POTENTIALGROWTH AREAS IN TECHNICAL TEXTILES
Analysis of the Indian technical textiles market shows that Packtech has the highest market share
with low-technology and low-value products. This segment is followed by other high growth
potential segment such as hometech, Indutech and Mobiltech. High Indutech share indicates high
usage of such in expanding Indian industrial sector. High growth potential of Mobiltech and
hometech indicate higher consumption of such materials by Indians for their homes and ever-
increasing demand of automotive.
Based on analysis of import data, Indutech, Mobiltech and speciality fibres are some of the
products which are currently being extensively imported. Import substitution through favourable
policies would help in growth of high growth segments
Segment such as Meditech, Geotech, Sportech and Clothtech ae in growing stage and are
expected to grow at higher rate in the near future.

SWOT ANALYSIS[ CITATION KPM191 \l 16393 ]

STRENGTH WEAKNESS OPPORTUNITY THREAT
 availability of cheap  import reliance  growing  uncompetitive
and young for apparatus economy of at global level
workforce  lack of India is  ease of
 strong value chain awareness fuelling availability oh
of textile about technical demand for highly
 Active promotion textile products technical technology
(schemes, in end users textiles intensive
programmes) from  little  relatively technical textile
government of manufacturing untapped products
India. of speciality domestic through imports
 Availability of fibres in India market
manufacturing  lack of
infrastructure standardization

Sector specific growth drivers [ CITATION KPM192 \l 16393 ]

1) Mobiltech:
 Automobile industry is growing in India
 usage of products like airbags, seat belts and automotive carpet is increasing
 Motor safety regulations are evolving
2)Sportech:
 Increasing number of international and national tournaments in India
 government subsidy to colleges/universities/schools to improve sports infrastructure.
 Increasing popularity of sports and sportswear due to Khelo India mission

3) Buildtech:
  Demand is predicted to rise with higher spending on infrastructure.
 Usage of products like scaffolding and membrane is increasing
4)Meditech:
 Healthcare industry is growing
 Growing population of India
 Increasing awareness of products
5) Protech:
 Spending on defence is increasing
 Awareness and use of chemical protective clothing and fire-retardant clothing is growing
6) Geotech:
 Remarkable investment in infrastructure development planned by the government.
 Government is actively promoting the usage of Geotech products
 Inclusion in various construction norms of government.
7)Indutech
 Growing manufacturing sector in India and fourth industrial revolution
8)Packtech:
 Awareness for avoiding the usage of plastics in packaging
 Ease of manufacturing leading to lower prices per unit, leading to rise in demand\
9) Aggrotech
 Government is promoting the usage of Agrotextiles.
 Awareness for Agrotextiles is increasing through Krishi Vigyan Kendra
10)Oekotech;
 Increasing awareness in environmental protection application such as water pollution
prevention, erosion prevention, sewerage treatment plants etc.
11)Hometech
 Increasing demand of usage of fire-resistant textile material in public places
 Evolving customer awareness
12) Clothtech
 Increasing awareness on usage of technical textiles
Discussion &conclusion
 In order to maximise the benefit on the growth potential, Indian technical textile needs to
grow significantly with focus on innovation and research in high growth sector such as
Meditech, Indutech, Mobiltech, Buildtech etc. The sectors need to adopt best worldwide
practices and attract FDIs. India is manufacturing and exporting products such as PVC
coated fabrics, airbags for automobiles. This shows capacity in the country. Concrete
steps need to be taken to understand the issues faced by the manufacturers of above
product categories and support manufacturers in promoting import substitution, thus
resulting in higher value retention within the economy. Import data shows that specialty
fibers, Indutech and Mobiltech are some of the products which are currently being
extensively imported to India. Import can be substituted through favorable policies.
policies would help in growth of high growth segments and ensure value retention within
 the economy and creation of new employment opportunities for Indian. All the other
segments such as Sportech, Meditech, Geotech, and Clothtech are in growing stage and
are expected to grow at higher rate in the future

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