India to boost synthetic textiles to counter China

India's textile industry, once a global leader, is looking to reclaim its throne. The government is considering a plan to increase domestic production of synthetic yarns, a key area where China dominates. This aims to address India's limited share (5-6 per cent) in the growing global market for synthetic textiles.  Currently employing 50 million people, the industry struggles with limited synthetic yarn manufacturing capabilities. This has led to heavy reliance on Chinese imports, impacting exports and market share.

The plan involves a two-pronged approach:

Revamping small units: Outdated technology in small weaving and processing units hinders their ability to compete. The government aims to upgrade their technology, enabling them to produce globally-competitive products.

Incentivize advanced manufacturing: Subsidies and tax breaks will be offered to set up advanced synthetic yarn manufacturing units. This complements the existing production-linked incentive (PLI) scheme for textiles.

By boosting domestic synthetic yarn production, India hopes to reduce dependence on China, increase textile exports, and regain its competitive edge in the global market.