State specific policies for promoting Technical Textiles

Several states in India have been proactive in promoting the technical textiles sector in the country. States like Gujarat, Tamil Nadu, Maharashtra, Karnataka, Andhra Pradesh, Rajasthan, Madhya Pradesh and Punjab have especially witnessed some success in this effort.

Contributing 25% to the national technical textile industry, Gujarat is a major player in the national technical textile sector. Gujarat’s nearly 900 technical textile units are engaged in each of the 12 subsectors of technical textiles, and the state is a key producer of commodity products for the technical textile and downstream industries. Key players in the state’s technical textile industry include, Ginni Filaments Ltd, Ambika Polymer, Anjani Udyog Pvt Ltd, Reliance Industries, Supreme Nonwovens Pvt Ltd, etc. The state also houses several international firms, like Finnish firm Ahlstrom, American Hygienics Corporation, and Austrian firm TenCate Geosynthetics.

Gujarat is also making significant progress in driving innovation in the national technical textile sector. Several companies are developing unique technical textile products, such as Sanrhea Technical Textile Ltd with the production of nylon chafer cloth for tyres, Tuflex India with the production gabious and geo-membranes, APCO industries and the production of fibre glass battery separators, etc. Additionally, Gujarat is a leading manufacturer in the textiles, automobiles, chemical, metallic, and food products, each of which consumes several of the various technical textile segments. Several of the state’s units are also key suppliers to India’s defence sector; Digjam Mills, Jamnagar provides fire-resistant fabric, while Kusumgar Supported Units, Advance Multitech, and Valley Valvette supply several varieties of coated fabrics. With a manufacturing sector that drives over 27% of its economy, the demand and consumption of technical textiles in the state is among the highest in the country.

Tamil Nadu, in turn, is also a fast-growing epicenter of technical textiles in the Indian peninsula. The state is one of the leading producers of agrotextiles, medical technical textiles, sport technical textiles, nonwovens. Coimbatore is also home to one of the country’s eight Centers of Excellence for technical textiles, COE: Meditech (SITRA), which specializes in medical technical textiles. Furthermore, the state’s investor-friendly environment has enabled the development of textile parks dedicated exclusively to technical textiles. The Government of Tamil Nadu approved the establishment of US$ 21.30 million technical textile park in Pallavada, which is expected to commence production in 2013. Furthermore, a 200-acre US$ 27.30 million technical textile zone was planned to be established in Tirupur, Tamil Nadu in 2008.

Maharashtra is providing significant stimulus to the domestic technical textiles industry. Maharashtra is a key producer of agrotextiles, woven technical textiles, ropes and cordages, indutech, and coir fibre. Key industries located in Maharashtra include Malmo Exim Ltd, Kwality Nets, B&V Agro, etc. Significantly, the state is also driving the research and development in the national sector by hosting four of the country’s eight Centers of Excellence on technical textiles, COE: Geotech (BTRA), COE: Agrotech (SASMIRA), COE: Non-wovens (DKTE), and, COE: Sportech (WRA).

The state’s technical textile sector has also attracted significant investment interest. The state is developing its first technical textiles park in Ichalkaranji, which hosts a large number of stakeholders in the entire textile value chain, with an investment of US$ 20 million. Furthermore, the manufacturing conglomerate, Jindal Group, recently announced plans to establish a technical textile unit with an investment of US$ 272.30 million in Nashik; the unit will produce textiles related to automobile, sports, security, medical and fire-fighting equipment

Karnataka is a growing player in the Indian technical textiles sector. Karnataka’s technical textiles sector attracted investments of US$ 104 million between 2008 and 2011, and has targeted additional investments of US$ 154 million in the sector between 2011-2012 and 2012-13. During the state’s Global Investor Meet 2012, held from June 6-8, 2012, the state attracted US$ 891 million in investments in its textile sector alone; these investments included proposals for the establishment of two technical textile mega projects for US$ 60 million and US$ 18.2 million in Hassan SEZ and Bellary, respectively. Additionally, the state will also promote technical textiles as a focus sector in its new industry-friendly textiles sector, which is scheduled to be launched in January 2013.

Rajasthan is yet another state charting new frontiers in the national technical textiles sector. The state is a renowned leader in the global textiles sector, and is now encouraging the growth of technical textiles to advance its leadership throughout the textile value chain. Bhilwara has especially emerged as one of the largest manufacturing centres for viscose-polyester textiles. Rajasthan State Industrial Development and Investment Corporation Ltd (RIICO) even organized a seminar in September 2010 to highlight the opportunities for Rajasthan to become a national and global leader in the technical textiles domain.

Andhra Pradesh is a leading producer in the agrotextiles sector, and is a leading consumer in protech and mobiltech. A hub for the national textile, aerospace and defense industries, the state is an especially important consumer of indutech and protech products.

Punjab is also proving to be a promising market for Indian sportech manufacturers. The state hosts amongst India’s largest sports industries, and is a key supplier to the Indian Raffia, ropes and cordages industries. Thus, with significant, growing demand for sport technical textiles, and ready supply of downstream industries in the technical textile value chain, the state demonstrates significant potential for the development of a vibrant and thriving industry for sports technical textiles.

Madhya Pradesh is another state that is demonstrating promising growth in the technical textiles sector. The positive industrial environment created by the state through numerous initiatives and a stable government, good infrastructure and connectivity with all major parts of the country make it very conducive for the technical textiles industry.

The above eight states’ industrial, MSME, and textile policies have been instrumental in driving the growth of the technical textiles industry not just locally, but throughout the country. Specific incentives of these state’s policies have been included below as a reference point both for investors looking to realize and execute their interests in India’s technical textiles sector, but also for administrators and policy-makers of other states looking to promote the local docile technical textiles sector.

A comparative benchmark of the key state’s policies has also been included below.

Incentives \ StatesGujTNMaharashtraKarnatakaAPRajPunjabMP
Infrastructure  
Land  
Electricity/Power  
Fiscal  
Stamp duty exemptions      
Interest subsidy        
Entry tax exemptions          
Venture capital funding            
VAT/CST/SGST exemptions      
Capital investment subsidies    
Research and Development  
Patent and quality certification    
Technology development and upgrade  
Human Resource Development  
Skill development      
Employment        
Trade  
Export subsidies            
Import subsidies              
Other  
Sick unit rehabilitation            
Energy and water conservation      

 

For more details on State specific policies, please refer to State’s websites as under:

Gujarat Industries and Mines Department, Government of Gujarat http://www.imd-gujarat.gov.in/index1.html
Tamil Nadu Industries Department, Govt of Tamil Nadu http://www.tn.gov.in/departments/industries.html
Handicrafts, Handloom, and Textile Department, Govt of Tamil Nadu http://www.tn.gov.in/departments/hhtk.html
Maharashtra Industries, Energy and Labour Department, Govt of Maharashtra http://industry.maharashtra.gov.in/
Textiles Department, Govt of Maharashtra www.mahatextile.maharashtra.gov.in
Karnataka Department of Industries and Commerce, Government of Karnataka http://www.karnatakaindustry.gov.in/
Department of Handlooms & Textiles, Government of Karnataka http://www.textiles.kar.nic.in/
Andhra Pradesh Department of Industries, Government of Andhra Pradesh www.apind.gov.in
Department of Handlooms & Textiles, Government of Andhra Pradesh www.aponline.gov.in
Rajasthan Department of Industries, Government of Rajasthan http://rajind.rajasthan.gov.in/
Punjab Department of Industry, Government of Punjab http://www.pbindustries.gov.in/
Madhya Pradesh Department of Commerce, Industries and Employment, Govt. of Madhya Pradesh http://www.mpindustry.org/