Exports of textile machinery spare parts are likely to grow up this fiscal, after a year of marginal growth registered in 2016-2017 due to lower demand.
According to Textile Machinery Manufacturers’ Association, India, machinery exports in 2016-2017 were worth ₹2,438 crore compared with ₹2,351 crore the previous year. Total production of textile machinery in India in financial terms was to the extent of ₹6,650 crore, including spares and accessories.
This year, export of equipment for spinning, spinning accessories, weaving preparatory and of other accessories is likely to grow in the range of 15-20%, Accordingly to TMMA sources, In Textile machinery, accessories and spare parts industry, 32% of domestic demand have been met indigenously whereas Imports amounted to ₹10,098 crore in the last fiscal year 2016-17.
Import of textiles industry spare parts has been continuously rising from China and trend will be continued this year as well.
The issues like Demonetization and GST have affected the sentiments however, this is expected to be corrected in six months period and investments will start picking up in Textiles sectors.
Govt. of India is keen to promote local manufacturing of Textiles machinery, accessories and industrial machinery spare parts through foreign direct investment and joint venture. India has witnessed continuous increase in production of Textile spare parts over the last decade.
Countries like Bangladesh imports 70 % of their requirements of Textile spare parts and Indian companies have excellent potential to export textile machinery spare parts in Bangladesh, Pakistan, Vietnam and African countries. Growing Bangladesh market & other South Asian countries holds excellent potential for spare parts for India machinery spare parts manufacturers.
Considering the textile and garment production scenario in South Asia, India can emerge as one of the preferred destination for sourcing of Textile machine parts, accessories.
Although concern about GST implementation among industry players, the overall sentiments is positive as industry do believe that in the long run GST would bring benefits to the Textile spare parts industry and the overall impact would be good.
According to industry experts, govt. needs to incentivize the exports of Textile spare parts manufacturers as most of the companies in segments are from small and medium size industry and it contributes significantly to the exports and employment. Manufacturers of textile machinery parts will have to strategize effectively on marketing and sales activities to take advantage of growing domestic market and simultaneously tap potential in exports.
Textile India 2017, the exhibition cum B2B event recently held at Gandhinagar Gujarat has witnessed participation and deliberation by textile parts industry to showcase its strength. Leading industry players needs to explore opportunities in foreign tie-up, joint venture with European companies and also with Chinese Textile spare parts manufacturers.
Chinese companies are aggressively eyeing Indian textile machinery spare parts industry to expand their presence and interested in tapping export opportunities.
Several customers registered on Bookmyparts.com from textile machinery parts industry have shared positive outlook for both domestic and export demand of textile industry spare parts in coming quarters.