MMF: Profit Spinner
With the global textile industry increasingly embracing man-made fibres, Divya Shetty examines how India can step up its game by overcoming the hurdles.
Global production of man-made fibres (MMFs) reached a record 124 million tonne in 2023, with synthetic fibres accounting for 67 per cent and cellulosic fibres like viscose and lyocell comprising 6 per cent of the total. Polyester remains the dominant fibre, representing 57 per cent of global production. The market is projected to grow, driven by increasing demand for versatile, cost-effective, and sustainable materials across various industries.
India is the world’s second-largest producer of MMFs, with production rising from 1.35 million tonne in FY2016 to 6 million tonne annually. On the export front, MMF textiles from India witnessed a healthy growth of 3.2 per cent from 2022–23 to 2023–24 (see Figure 1). India exports MMF textiles to the tune of $6 billion per annum. Notably, exports of MMF fabrics & made-ups of polyester staple fibre and polyester filament yarn are leading the MMF textiles industry in India. Although value-added segments like fabrics and made-ups grew at a slower pace, they now constitute 62 per cent (see Figure 2) of total MMF textile exports, indicating a positive shift toward higher-end production in the global value chain.
While MMFs account for approximately 30 per cent of India’s textile and apparel industry, the country remains behind China in global competitiveness. The Indian government is implementing initiatives such as the Production-Linked Incentive (PLI) scheme to bolster MMF production and exports, aiming to enhance the sector’s resilience and sustainability.
Figure 1: Share of major exports market in MMF
Source: MATEXIL
As per Shaleen Toshniwal, Chairman, MATEXIL, “MMF are leading the entire global textiles and apparel industry. With about 73 per cent production share in 2023, Manmade Fibres have grown at a much faster pace than other fibres at global level. However, India still produces more of natural fibre and MMF contributes to about 43 per cent production share. One of the key factors that hinders the growth in this segment is lack of skill level in the manufacturing of woven and knitted synthetic filament fabrics which are majorly used in Activewear, Sportswear, Athleisure, etc. Being among the top two is no small feat, but for India to claim the top spot, it must tap into its strong potential while addressing key challenges—especially by investing in upskilling its workforce.
Key facts:
- MMF share in global textile: 73 per cent
- MMF share in India: 43 per cent
- MMF exports from India: $6 billion
- Polyester & Viscose: Most dominant fibres
Roadblocks to growth
Several challenges have prevented India from fully capitalising on the global shift toward MMF. Sunil Kumar JhunJhunWala, Vice Chairman, MMF Sub Committee, TEA & Co Founder, Techno Sportswear, lists down a few of them;
- Raw material costs, quality, and capacity issues, especially in PTA, MEG, polyester & nylon filament yarns, viscose & lyocell fibres, etc.
- Regulations like QCO and anti-dumping duties on raw materials.
- Lack of advanced processing infrastructure and technology compared to global competitors.
- Environmental concerns and regulatory delays in capacity expansion projects.
The technologies for manufacturing synthetic filament fabrics have evolved over the decades, however Indian MMF Textiles industry still produces on conventional technology. “Another key factor is the comfort of domestic market in India. The domestic market in India is huge and highly amenable. The consumer base is very large and diversified that all types of product, irrespective of its quality, are being purchased in India. The major portion of domestic market in India opt for cheaper products than high-end clothing. However, the consumers are getting more aware about the brands and its quality offerings. This trend will lead to change in the manufacturing strategy and product diversification in India very soon,” adds Toshniwal.
Figure 2: Product-wise share in Indian MMF textile exports from April-August 2024-2025
Although India is one of the largest consumers of denim, natural factors are hindering the growth of the MMF denim market. Suketu Shah, CEO, Vishal Fabrics, says, “In hot climates such as ours, natural fibres like cotton offer greater comfort compared to man-made fibres, which are less suitable for such weather conditions.” He added, “Denim traditionally features a washed look and is typically dyed with indigo, which can only be applied to cellulosic fibres such as cotton, not to man-made fibres. Therefore, in denim fabric construction, the warp (front part) is primarily cotton, constituting about 65 per cent of the fabric, while the remaining 30–33 per cent in the weft may include man-made or other fibres.”
Insufficient R&D and limited downstream automation further impede progress, especially when compared to countries like Vietnam and China, which have established efficient, vertically integrated supply chains.
Gurudas Aras, Strategic Advisor and Independent Director, states, “In the activewear and sportswear industry, approximately 70–75 per cent of the fabric is imported. Major global brands such as Adidas, Nike, and Decathlon typically source fabrics from countries like Taiwan, China, and South Korea, and then carry out garment manufacturing in India. This reliance on imports stems from the fact that domestically produced fabrics are often not competitive in terms of quality. Moreover, the finishing capabilities in India are not at par with international standards, particularly for high-Spandex fabrics that require specialised treatment. Only a limited number of facilities in India are equipped to handle fabrics with 20 per cent or more Lycra content. As a result, most brands and garment manufacturers prefer to import fabrics. Only a few players, in the South, produce their fabrics.”
Colour crisis
In MMF fabrics, one of the major challenges lies in achieving uniformity and consistency in coloration, particularly in dyeing and printing processes. International brands demand high standards in terms of colour brilliance and fastness to various conditions such as washing, perspiration, and light. Ensuring durability and stability of these properties over multiple washes remains a critical concern.
According to Prof Ashok Athalye, Associate Professor, ITC Mumbai, “Another significant challenge involves functional performance. While fibre selection is important, consumers increasingly expect additional features such as moisture management, stain repellency, and other performance-related effects in the final garment.
For instance, flame retardant properties are difficult to achieve as inherently flame-retardant polyester is not readily available, necessitating the use of conventional polyester with post-treatment finishes. Similarly, the desired quality of microfilament or hollow fibres for advanced moisture management is often unavailable, requiring finishing treatments that may fall short of international brand expectations. These limitations hinder the ability to fully meet performance and functional specifications.”
Industry stakeholders report that the QCO is posing serious challenges, particularly in specific product categories, making it difficult for manufacturers to continue production and export operations.
Although discussions around this issue have been ongoing for years, tangible solutions have been limited. Notably, major buyers such as Adidas and Decathlon have invested efforts to develop domestic manufacturing capabilities to reduce dependence on imported fabrics. However, these initiatives have yet to succeed due to persistent regulatory barriers.
One of the primary concerns with the QCO is its restrictions on yarn imports from China, which are generally more affordable. While high-quality yarns from countries like Korea and Taiwan are available, obtaining BIS (Bureau of Indian Standards) certification remains a major hurdle. BIS officials are required to conduct in-person inspections of foreign manufacturing units before granting approval. However, due to a shortage of qualified personnel, the certification process is severely delayed, as per the industry experts.
Tariff shift impacts MMF
The recent revision of US tariff rates is expected to significantly influence the Indian Man-made fibre (MMF) textile industry, creating both challenges and new opportunities in increasing exports. India currently exports MMF textiles worth approximately $1.4 billion annually to the US, making it our largest export destinations. With China holding a dominant 34 per cent share in the US MMF textile market, the imposition of higher tariffs on Chinese goods, along with steeper duties on MMF Textiles exports from Vietnam and Taiwan, opens up an opportunity for Indian exporters to capture a larger market share.
Toshniwal, informs, “Although India now faces a 26 per cent reciprocal tariff from the US, it is still relatively lower than the tariffs levied on some of its major competitors. This positions Indian MMF exporters at a relative advantage, especially in the apparel segment, where exports from countries like China, Vietnam, Bangladesh, Indonesia, and Cambodia may decline due to the higher tariff burden. Consequently, India’s MMF apparel exports to the US may witness growth, which would also boost domestic demand for MMF textiles used in MMF Apparel manufacturing for exports. However, Indian exporters will still face stiff competition from countries like South Korea, Mexico, Germany, and Türkiye, which remain strong players in the US market.”
Rajnish Agarwal, Director, Rupa and Company, adds, “With tariffs on other competitors rising significantly, India could gain a competitive edge in the US market. However, the 26 per cent duty on Indian textiles may also increase production costs and impact pricing, potentially slowing demand. Buyers in the US may also push Indian exporters to share the tariff burden, adding pressure to already thin profit margins. To mitigate risks, the MMF industry will need to focus on efficiency, value addition, and market diversification, while also exploring new markets beyond the US to maintain stability.”
Overall, the revised tariff regime may lead to a significant realignment of trade flows, with India having the potential to strengthen its position in the US MMF textile market while also witnessing increased domestic consumption driven by rising MMF Apparel exports.
MMF SUNRISE SECTORS
Activewear
Description: High-performance, stretchable, and moisture-wicking MMFs are at the heart of the booming activewear market, driven by rising health awareness and athleisure trends. These fibres are used in sports apparel, yoga wear, and gym gear due to their durability and comfort.
Key MMFs used: Polyester, Spandex, Nylon
Growth insight: Global activewear market expected to reach $547 billion by 2028 (Fortune Business Insights, 2023).
Technical textiles
Description: Engineered for functionality, not fashion—technical textiles made from MMFs are used in sectors like healthcare (PPE), automotive (seat belts), construction (geotextiles), and defence (ballistics). These materials provide strength, protection, and advanced performance.
Key MMFs used: Aramid, Polypropylene, High-tenacity Polyester
Growth insight: India’s technical textile market projected to reach $40–50 billion by 2025.
Recycled MMF
Description: Sustainable and circular: Recycled MMFs from PET bottles or post-industrial waste offer eco-friendly alternatives for conscious consumers and brands. They help reduce landfill load, carbon emissions, and dependence on virgin materials.
Key Materials: Recycled polyester (rPET), recycled nylon
Growth insight: Demand for recycled polyester expected to grow at >6 per cent CAGR through 2030.
Digital manufacturing
Description: Integration of AI, 3D knitting, and automated cutting in MMF-based garment production is revolutionising speed-to-market and reducing waste. Digital tech enables mass customisation and precision in MMF processing.
Tech in focus: 3D knitting, CAD/CAM, AI-powered production
Growth insight: Digital textile printing market to surpass $8 billion by 2031.
Chinese MMF disrupts India
In 2024, India imported MMF Apparel worth $160 million from China, comprising 33 per cent share of total MMF apparel imports. The influx of Chinese MMF (man-made fibre) products has emerged as a significant concern and a serious threat to the Indian MMF industry. India imports MMF textiles to the tune of $4.5 billion per annum from all over the world. China is the largest supplier of MMF Textiles to India occupying over 55 per cent imports share.
“Chinese MMF products, including polyester & viscose filament yarns and fabrics, viscose spun yarn, and MMF knitted fabrics, are often supplied at substantially lower prices in India due to large-scale production efficiencies and government-backed subsidies. This price disparity makes it extremely difficult for Indian manufacturers, especially small and medium-sized enterprises, to remain competitive, as they often operate under higher production costs and lower operational efficiencies,” opines Toshniwal.
Even Jhunjhunwala adds, “Domestic fabric manufacturers in India are grappling with intense price pressure and shrinking profit margins. Many Indian MSMEs struggle to compete with the sheer scale of Chinese manufacturers, making it difficult to sustain their businesses. While the minimum import price has proven to be an effective mechanism for curbing dumping, the introduction of non-transparent measures, such as the Quality Control Order (QCO) on filament yarns and cellulose fibres, could hinder fair competition. To ensure that the downstream ecosystem remains competitive at a global level, it is crucial to provide access to all essential raw materials at internationally comparable prices, rather than imposing restrictive policies that could limit growth.”
FTA spurs MMF growth
The India-UK Free Trade Agreement (FTA) is expected to be a significant catalyst for the Indian man-made fibre (MMF) textiles industry by offering zero-duty access to one of the world’s largest textiles import markets. With the UK importing approximately $4 billion worth of MMF textiles annually, Indian exporters—currently holding a modest share of 5 per cent—stand to gain an estimated $500 million in additional exports reaching $700 million within 5 years of FTA in effect. “The FTA positions India to capture a larger share of the UK market, especially from competitors like China, Vietnam, and Turkey, by leveraging its strengths in polyester and viscose-based MMF products, as well as adding capacities of nylon and acrylics. This tariff advantage will not only improve India’s price competitiveness but also encourage manufacturers to scale operations, invest in export-compliant infrastructure, and adopt better technologies. Overall, the FTA is a strategic boost that enhances India’s global positioning and opens the door for long-term growth in MMF and technical textile exports,” says Toshniwal.
Shah adds, “This FTA is one of the most significant developments in the country to date and is highly welcome. We have long aspired for the UK to become a key global fashion hub, alongside cities like Paris and Amsterdam. With the UK Free Trade Agreement (FTA), Indian brands will gain better access to the UK market and be more readily embraced by UK brands. This will foster substantial business exchange and present considerable advantages for Indian textile mills.”
India’s MMF leap: Real or rhetoric?
The Indian MMF and technical textiles sector faces several structural challenges that hinder its global competitiveness. A key concern is the low skill level within the workforce especially for synthetic fabric processing, which lags behind that of competing nations like China, Indonesia, and Vietnam. Additionally, the lack of export-compliant manufacturing facilities poses a significant barrier, especially as global brands increasingly demand certified and sustainable sourcing partners. The MMF Textiles industry in India is also highly fragmented, resulting in inefficiencies, longer lead times, and increased logistics costs. Furthermore, the predominance of small-scale and unorganized units, particularly outside of spinning and composite mills, limits economies of scale and productivity and also hinders the brands nomination. There is also a noticeable gap in R&D, product innovation, and diversification, with many players focused on natural-blend products rather than expanding into advanced MMF offerings. Lastly, the sector continues to rely on conventional technology, underscoring an urgent need for modernisation and automation to meet global export standards.
“India has significant opportunities to increase exports of MMF textiles by strategically targeting high-potential global markets and leveraging government initiatives. Despite holding a modest share in global MMF trade—around 3.5 per cent—India can substantially improve its position by focusing on top importers like the USA, Germany, Japan, and the UK, where Indian MMF Textiles are still underrepresented. As said earlier, several Government Schemes like PLI, NTTM, etc. offers strong support to scale up production and enhance quality. Institutional demand from various government ministries—such as Defence, Health, and Infrastructure—also opens avenues for domestic consumption of technical textiles,” concludes Toshniwal.
Moreover, India’s strength in recycling (especially PET), growing domestic demand or MMF (expected to grow at 9 per cent CAGR), and rising interest in sustainable and innovative products like bio-based synthetics, smart textiles, and sportswear further enhance export prospects. By improving scale, compliance, and innovation, India can significantly expand its global footprint in the MMF and technical textiles space.
