Massive Relief for India's Textile Sector! Govt Scraps Key Orders - Stocks Set to Soar?

Textile

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Updated on 13 Nov 2025, 10:29 am

The Ministry of Chemicals and Fertilizers has officially withdrawn the Quality Control Orders (QCOs) for polyester fibre and polyester yarn. This decision comes as a major relief and a long-awaited demand from the textile industry. The Confederation of Indian Textile Industry (CITI) has termed this move a "pro-growth measure" that will greatly benefit India's textile and apparel sector.

By removing these QCOs, manufacturers will face reduced compliance burdens, and it will become easier to source essential raw materials at internationally competitive prices. This is expected to enhance the cost competitiveness of Indian textile and apparel products in the global market.

CITI Chairman Ashwin Chandran highlighted that polyester fibre and yarn are crucial components of man-made fibre (MMF) products, and their easier availability will boost the MMF segment's growth in India. He also suggested that the government consider similar relief for viscose fibre and other cellulosic raw materials, given their importance.

The withdrawal, coupled with recent export package announcements, is seen as a significant confidence booster for the industry. While India's textile market is traditionally cotton-dominated, the global trend leans towards MMF. This policy change is aligned with India's ambitious goal to develop its textile and apparel industry into a $350-billion sector by 2030, with a target of $100 billion in exports.

Impact This news is highly positive for the Indian textile and apparel sector, potentially leading to increased manufacturing, improved export competitiveness, and higher revenue for companies involved. The impact rating is 8/10.

Difficult Terms: Quality Control Orders (QCOs): These are government-mandated regulations that specify the quality standards that products must meet before they can be manufactured or sold. They are designed to ensure product safety and quality. Polyester Fibre: A synthetic material made from petroleum, used extensively in textiles for its durability and wrinkle resistance. Polyester Yarn: Threads or strands made from polyester fibre, used for weaving or knitting fabrics. Man-Made Fibre (MMF): Fibres that are manufactured through chemical processes, unlike natural fibres like cotton or wool. Polyester and viscose are common examples of MMF. Cost Competitiveness: The ability of a country or company to produce goods or services at a lower cost than its competitors, allowing it to gain market share.