1. Smt. Shashi Singh Joint Textile Commissioner New Delhi 12-11-2008

2. Present Status of the Technical Textile and Non- Woven Industry in India. Government Initiatives to promote this Industry.

3. US$ 8.95 bn. Domestic US$ 8.35 bn. Export US$ 0.60 bn. (Rs.40,284 crore) (93%) (Rs.37,571 crore) (7%) (Rs.2,713 crore)

4. 15196 19130 40284 64202 12% 20% 10% Figures in bar chart are in Rs. crore

5. India contributes 8% to global market size of technical textiles. Expected to increase to 10% by 2010.

6. (US $ Billion) 20072010 CAGR (%) World technical textiles1161273.16 Indian Technical textiles8.9512.139.77 India is expected to register higher rate of growth.

7. (US$ Billion) 20072010 World116127 India8.9512.13 India’s share in World’s consumption (%) 7.79.6

8. The Indian technical textile industry has presence in all the 12 segments but consumption pattern is different. India’s consumption level is different than global level. The top three segments in the World vis-à-vis India are given below: Global (2007) India (2007) Segment% shareSegment% share Mobiletech24Packtech36 Indutech16Clothtech17 Sporttech15Hometech8 Others45Others39 Total100Total100

9. There are about 1500 technical textile units in the country. MNCs, large scale units, SSI units and cottage units all are present in this industry. SSI sector has significant presence in converting activity. Some of the large scale units are given below: SegmentManufacturers MobiletechSRF, Century Enka and Nirlon, Bhilwara Textile Mills and Shamken, IFB Auto Liv India, Abhishek Auto and Bond Safety Belt MeditechJohnson & Johnson, Procter & Gamble, Kimberly Clark, 3M India, Ginni Filaments, Ahlmstrong (under construction). Protech Rajasthan Spg. & Wvg. Mills, Digjam Mills, Jayashree Textiles, Kusumgar Corporates, Entremonde Polycoaters, Tata Advanced Material. Non-wovenGinni Filaments, Uni Products, Supreme Nonwoven, Unimin, Fibreweb, Ahlmstrong (under construction)

10. Production capacity is primarily focussed on commodity products / not very R&D intensive. The technology by and large is traditional. Not many projects are based on state-of-the-art- technology. High-end products are mostly imported. Large untapped potential exist for potential investors.

11. Growing awareness Buoyant economy – increase in disposable income, retail culture Increased demand of ‘growth drivers’ of technical textiles Favaourable demographics Government initiatives

12. Polyolefin sacks FIBC Leno bags Major items Import intensive items Potential items for investment Soft luggage products 31984086 14630 25913 12% 13% 38% Figures in bar chart are in Rs. crore

13. Major items Import intensive items Potential items for investment Labels Zip fasteners Umbrella cloth Interlining nonwoven 5395 68336908 9665 7% 13% 0.27% Figures in bar chart are in Rs. crore

14. Major items Import intensive items Potential items for investment Mattress & pillow components Fibre fill Blinds HVAC Filters Stuffed toys 758 1030 3297 5360 10% 17% 34% Figures in bar chart are in Rs. crore

15. Nylon tyre cord Upholstery Major items Import intensive items Potential items for investment Airbags Seat belt webbing Airbags Seat belt webbing 1169 1382 3187 5144 10% 9% 23% Figures in bar chart are in Rs. crore

16. Major items Import intensive items Potential items for investment Sports nets Sports composites Artificial turf 1310 1534 3009 5645 13% 8% 18% Figures in bar chart are in Rs. crore

17. Major items Import intensive items Potential items for investment 819 962 2927 3848 6% 8% 32% Fibre glass items Ropes & Cordages Glass battery separators Figures in bar chart are in Rs. crore

18. Tarpaulins Hoardings & Signages Roofing felts Major items Import intensive items Potential items for investment Hoardings & Signages Floor & wall coverings 10511182 2141 2615 4% 6% 16% Figures in bar chart are in Rs. crore

19. Surgical dressings Surgical sutures Surgical dressings / disposables (nonwoven) Artificial implants Major items Import intensive items Potential items for investment Artificial implants Hygiene products 778933 1660 2244 6% 10% 15% Figures in bar chart are in Rs. crore

20. Major items Import intensive items Potential items for investment High altitude clothing Fire retardant fabrics High altitude clothing Fire retardant fabrics 348 520 1430 2387 11% 22% 29% Figures in bar chart are in Rs. crore

21. Fishing nets Mulch mats Green house Mulch mats Major items Import intensive items Potential items for investment Green house fabrics 261 304 576 742 5% 8% 17% Figures in bar chart are in Rs. crore

22. There are about 50 units of nonwovens in the country. Only 7 with European machinery, remaining 43 with Chinese machinery. The consumption of non-woven in India is estimated to be one lakh MT in 2007-08 and expected to increase to 1.8 lakh MT in 2012-13. Currently, about 30% of demand is met through imports. However, capacities coming up in India will reduce imports.

23. Source : Monthly Statistics of the Foreign Trade of India, DGCIS, Kolkata.

24. Sharp increase in imports of nonwoven machinery during 2006-07. Domestic production likely to increase substantially now. Cost –competitiveness. Source : Monthly Statistics of the Foreign Trade of India, DGCIS, Kolkata.

25. Technical textiles covered under TUFS. Under modified TUFS, w.e.f. 01-04- 2007, the 10% capital subsidy has been made applicable along with 5% interest reimbursement for specified technical textile machinery. The subsidy under TUFS works out to about 20-25% of project cost. 280 applications with project cost of US$ 355 Mn. have been sanctioned upto 31-03-2008. Registration has been given to 104 eligible units under 10% capital subsidy under TUFS. Technology Upgradation Fund Scheme (TUFS) Fiscal duty concessions Major machinery eligible for 5% concessional customs duty. Excise duty on man-made fibre / yarn reduced to 8%.

26. Govt. has selected ICRA Management Consultancy Services (IMaCS) for doing the baseline survey at the cost of Rs.54.50 lakh. Interim report has been submitted on 10-11-2008 which is under examination and will be placed in public domain shortly. Baseline survey

27. Govt. has designated 4 COEs for Geotech, Agrotech, Protech and Meditech segments. Name of the designated agencySegment BTRA & ATIRAGeotech SASMIRA, MANTRA and Navsari Agriculture University Agrotech NITRA & IIT, DelhiProtech SITRA & AC College of TechnologyMeditech Centre of Excellence (COE)

28. Govt. will provide fund support of Rs.11 crore for setting up essential facilities and the COE has to bear the recurring expenditure and manage the COE on commercially sustainable basis. The essential facilities to be created in COE: Facilities for testing and evaluation with national and international accreditation. Resourse centre with IT infrastructure. Facilities for training of core personnel and regular training of personnel from the industry. Centre of Excellence (COE)

29. Six training workshops were organised during the last year. Internationally reputed consultants were invited to speak on manufacturing technologies, raw materials, global market scenario and future directions, standard test methods, etc. Objective of the workshop was to facilitate ‘transfer of knowledge’ to encourage investment in the ‘high-end’ technical textile items. During current year also such workshops are being held. Training workshop

30. Government provides fund support for creation of common infrastructure (i.e., compound wall, roads, drainage, water supply, electricity supply including captive power plant, effluent treatment, telecommunication lines etc.) to the extent of 40% limited to Rs.40 crore. 30 parks have been approved under SITP. Technical Textiles /non-wovens can come in any such park or can come together to have its own separate park to get the benefit of infrastructure support. Scheme for Integrated Textile Parks (SITPs)

31. In Textile sector FDI is permitted through automatic route without any limit on the extent of foreign ownership. Thus there is no restriction on any amount of FDI, with or without local partner. FDI Policy

32. Technical textile units with focus on exports can take the benefit of SEZ policy. SEZs deemed to be foreign territory for the purpose of trade operations, duties and tariffs. The main aim of SEZ Policy is to enhance foreign investment and promote exports from the India. Special Economic Zone (SEZ) Policy

33. Incentive and facilities offered to the units in SEZs. Duty free import / domestic procurement of goods for development, operation and maintenance of SEZ units. 100% Income Tax exemption on export income for SEZ units for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years. Special Economic Zone (SEZ) Policy

34. Incentive and facilities offered to the units in SEZs (Contd...) Exemption from Central Sales Tax. Exemption from Service Tax Single window clearance for Central and State level approvals. Exemption from State Sales Tax and other levies as extended by the respective State Government. Special Economic Zone (SEZ) Policy

35. TMTT proposed to have four Mini-Missions to provide support to manufacturing units of technical textiles - capacity building of raw material, machinery, infrastructure; standardization, product development, common testing facilities with international accreditation; domestic and export market development; Human Resource Development. Technology Mission on Technical Textiles (Proposed)

36. Due to the buoyancy in the economy and Government initiatives the production and consumption of technical textile and non-woven items in India is increasing very rapidly. The turbulence in conventional textile industry have also encouraged diversification in technical textiles.

37. For information on technical textiles : visit www.txcindia.com