Govt Eyes Revamping Synthetic Textile Sector To Combat Chinese Dominance

New Delhi, May 3 (KNN) To address the issues faced by India's textile sector and strengthen its overall competitiveness, the government is considering measures to boost domestic production capabilities of synthetic yarns.

The industry, which employs nearly 50 million people, faces limited capabilities for manufacturing synthetic yarns, a market currently dominated by China, reported Mint.

As global demand for synthetic textiles continues to rise steadily, India's share in this market remains a modest 5 to 6 per cent.

India's textile sector, once a global leader in the 1990s, has been grappling with challenges in recent times. This situation has led to increased dependence on Chinese imports, a decline in Indian textile exports, and a loss of market share for the domestic industry.

According to sources aware of the matter, the government is working on a plan to revamp small, informal weaving and processing units by upgrading their technology. The aim is to enable these units to manufacture products of global standards and compete with Chinese products.

The proposed plan involves offering subsidies and tax incentives to set up advanced manufacturing units for synthetic yarns. These incentives would be in addition to the existing production-linked incentive (PLI) scheme for the textile industry.

"The government is working on a plan to revamp small, informal weaving and processing units by upgrading their technology," said a source, adding that the proposal is currently in the discussion stage, and its contours will be finalised soon.

(KNN Bureau)