India’s textile industry eyes full value addition after QCO removal

After the Indian government’s decision to remove Quality Control Orders (QCOs) on various products in the polyester value chain, the textile industry has expressed confidence in achieving fuller value addition by competing more effectively with other exporting countries in the global market. Industry leaders and organisations are optimistic about aligning with the global trend of manmade fibre products increasingly dominating over cotton-based products.

R K Vij, secretary general of the Polyester Textile Apparel Industry Association (PTAIA), told Fibre2Fashion, “India has taken a bold step making Indian textile products competitive in the global market. The QCOs earlier led to increased raw material prices of the entire textile value chain affecting the growth of Indian MMF industry, both in terms of domestic growth as well as export competitiveness. The apparel and textile sector essentially uses two kinds of raw materials. Any non-tariff barrier like QCOs, anti-dumping duty on the basic raw materials should not be there but the same could be put on the value-added products like fabrics and garments so that the import of these value-added products could be restricted.”

India’s removal of QCOs on polyester value chain products has boosted industry confidence, with leaders saying it will lower raw material costs, improve global competitiveness, and support MMF-led growth.
SIMA and PTAIA leaders welcomed the move, urging similar action for viscose staple fibre and filament yarn to capture emerging global market opportunities.

“With the phasing out of QCOs, Indian textile industry will be able to sustain its fullest growth potential not only in the domestic market but also in the most competitive global markets with the availability of raw materials till the stage of fibre and yarn at internationally competitive prices”, Vij stated.

Previously, the rapid rise in QCOs increased compliance costs, caused delays, and led to supply chain disruptions for the MSME sector. However, the removal of QCOs on textile products and their raw materials is expected to ease compliance burdens and positively impact industrial supply chains.

Durai Palanisamy, chairman of the Southern India Mills’ Association (SIMA), thanked the government for removing the QCOs, stating that this path-breaking reform marks a major milestone in positioning India as a global hub for manmade fibre (MMF)-based textiles and apparel. In a statement, he noted that removing the QCO on terephthalic acid and ethylene glycol—key raw materials for manufacturing polyester fibre—is a welcome move that will improve raw material availability and boost competitiveness. Overall, the decision is expected to accelerate growth across the MMF textile value chain, including yarns, fabrics, garments, made-ups, and technical textiles.

The SIMA chairman further observed that easing QCOs will streamline imports of polyester and its raw materials, ensuring uninterrupted supply to spinners, weavers, and processors. Competitive imports are likely to stabilise domestic prices, reducing cost pressures on downstream manufacturers and exporters.

He also appealed to Prime Minister Narendra Modi to remove the QCO imposed on viscose staple fibre (VSF) and filament yarn, which must be made available at internationally competitive prices and in an uninterrupted manner to seize emerging global market opportunities.

Fibre2Fashion News Desk (KUL)