The almost simultaneous approval by the Cabinet Committee on Economic Affairs of the TUFS extension during the 12th Plan period and the announcement by the Minister of State for Textiles, Ms. Panabaka Lakshmi, of a hike in allotment to over Rs. 700 crores for development of technical textiles during the Plan have been hailed all over as measures aimed at a speedier recovery of the textile industry as a whole. While the former has ended the nagging uncertainty and suspense over the fate of TUFS, the higher outlay for technical textiles would ensure easier attainment of the export target of $50 billion fixed for the sector this fiscal.
The Government has of course launched a vigorous drive to promote technical textiles. While technical textiles constitute almost 54 per cent of the global textile industry, in India it is negligibly low at 10 per cent. Even then, the market size of this sector in the country is estimated to have gone up to Rs. 91,236 crores in 2013-14 from a level of Rs. 42,000 crores in 2007-08 at an annual growth rate of 11 per cent.
With proper policy support and promotional efforts, the technical textiles sector is projected to have a growth potential to reach Rs. 1.58 crores by 2016-17, offering employment to 26 lakh persons. The Budget for 2013-14 has offered sops like tax exemption for aramid yarn and fabric used for making bullet-proof helmets and has cut customs duty on raw materials for production of diapers from 10 per cent to five per cent. As elsewhere, the booming automotive sector in India has proved a major consumer of technical textiles like tyre reinforcements, air bags, seat coverings, etc. Growing urbanisation and rising income levels have encouraged Indians in general to gradually adapt to Western lifestyle with a greater resort made to hygiene, personal care and safety products, resulting in an overall increase in domestic demand for technical textiles and nonwovens. Further, reduced labour availability in agriculture and transport is driving the use of such textiles in every walk of life. At the current rate of growth, India can very well compete with advanced nations in both production and use of technical textiles sooner than later.