Home / News / FICCI-KPMG report offers SWOT analysis of Indian tech textile industry

FICCI-KPMG report offers SWOT analysis of Indian tech textile industry

25
Mar '21
Pic: Ficci
Pic: Ficci
Import dependence for machinery, low awareness about technical textile products, lack of standardisation and related regulation and little domestic manufacturing of specialty fibres are some weaknesses of the Indian technical textile industry identified in a SWOT analysis in a new report by KPMG and the Federation of Indian Chambers of Commerce and Industry.

To attract investments in technical textiles, the Indian government needs to promote manufacturing of high-tech machinery to boost the sector. In addition, considering the importance of applied research in this sector, the industry needs to closely work with machine manufacturers to build core competency in the long term, the report said.

Low awareness by users leads to lack of adoption of technical textiles. Lack of standardisation results in availability of sub-standard and cheaper products.

Misplaced priorities with focus on low value segments, import of high-value technical textiles, limited technology upgradation and lack of focus on innovation and research are some of the threats that the report, titled ‘Technical Textiles: Emerging Opportunities and Investments’ identified.

India has not focused on application based research and innovation, resulting in industry focus on commodity products with low value realization. The industry needs to closely work with textile research associations on innovation and research, resulting in stronger global positioning, migration towards high-tech products and better value realisation in the long term, the report said.

Opportunities for India in the sector include a growing domestic economy fueling demand for technical textiles, global opportunities in key segments, largely untapped institutional buying for domestic technical textiles products and regulatory mechanism to increase consumption.

India’s economic growth has led to the growth of various end-user industries like automobiles and healthcare, resulting in an increasing demand for technical textile products. In addition, these industries are increasingly exporting, resulting in ample growth opportunities for the sector in India.

Functional products are still in nascent stage in India. However, with growing awareness among young population about the benefits of these products, the market shall expand exponentially.

Largely untapped domestic institutional buyers for indigenous technical textiles products include railways, defence forces and hospitals, which are still heavily dependent on imports for high-value technical textile products.

India’s strengths in this sector include a strong end-to-end textile value chain, a large domestic market with high growth potential, availability of young and skilled workforce, focus areas for the central and state governments and the ability to scale up in a short duration, the report added.

Fibre2Fashion News Desk (DS)

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