Iran’s textile industry has a history that stretches back to the 11th and 12th centuries, when the Gulf state was one of the world’s premier exporters of textiles and silks to Europe, Asia and the rest of the world. Over a hundred years ago the first textile mill operating with European machinery was established in the Iranian capital Tehran.
However, presently the Iranian textile industry is not doing at its glorious stage. Except its carpet industry, most of other textiles products consumed in the country are being imported. Moreover, synthetic and other blended yarns which are required for its carpet industry are also being imported.
COMPOSITION OF THE TEXTILE INDUSTRY
The Iranian textile industry is engaged in production of blankets, machine-made carpets, handmade carpets, serge, fabrics and garments. The country’s textile companies are mostly based in the central provinces such as Yazd and Esfehan as well as the cities of Tehran and Qazvin, while there are also a lot of units in the northern provinces and Azerbaijan. However, local production of textile products including fibre, yarn, fabrics etc is insufficient to cater to the growing needs of the carpet and garmenting industry; hence Iran’s textile industry is mostly dependent on import.
MARKET POTENTIAL
Iran is a around US$ 2 billion market for Textiles & Clothing. With population of nearly 80 million set to rise to 100 million in the next few years, Iran is a large market for textile products. Major countries who are supplying textile products to Iran are China, Korea, Germany, Turkey, etc.
However, India’s market share is only around 15% and hence the Iranian market offers substantial scope for Indian exporters. Moreover, the agreement between India and Iran facilitating 100% trade in rupee terms in view of the sanctions imposed by the US and EU on Iran, has opened up opportunities for exports of Indian products to Iran including textiles, garments, etc.
Imports of Textiles and Clothing by Iran during 2013
IMPORT OF MANMADE FIBRE TEXTILES
Iran imported nearly US$ 1.5 billion of man-made fibre textiles during 2013 from countries like China, Korea, Turkey, Germany, etc. However, India’s share was about 13%. Iran also imports cellulose-based fibers (e.g., viscose), although there is capacity for the production of synthetic fibers.
Local production of the petrochemical industry is not sufficient to sustain a downstream synthetic fiber industry. Therefore, the fiber industry remains dependent on imports, however the availability of foreign exchange is a constraint for import. Thus, substantial amount of investment are undertaken by the government in production of synthetic fibers.
Iran’s import of man-made filament textiles during 2013
Main countries supplying man-made filament textiles to Iran during 2013
Main man-made staple fibre textiles imported by Iran during 2013
Main countries supplying man-made staple fibre textiles to Iran during 2013
EXPORTS OF INDIAN MMF TEXTILES TO IRAN
Iran has emerged as one of the largest markets for Indian man-made fibre textiles. During 2013-14 exports amounted to US$ 148.46 million, registering a tremendous growth of 96%.
The main MMF textile items being exported from India to Iran are Polyester Filament Fabrics, Polyester Viscose Fabrics, Synthetic Filament Fabrics, Polyester Viscose Yarn, Polyester Filament Yarn, Viscose Spun Yarn, Furnishing Articles, Muffler, Shawls/Scarves, etc.
Details of the exports of Indian man-made fibre textiles to Iran during last five years are follows:
Value in USD Mn
Main items in India’s export basket of Man-made fibre textiles to Iran during 2013-2014 were as follows:
Fabrics
Polyester Filament Fabrics
Polyester Viscose Fabrics
Synthetic Filament Fabrics
Synthetic Blended Fabrics
Polyester Blended Fabrics
Made-ups
Furnishing Articles
Muffler
Shawls/Scarves
Blanket
Dress Material
Yarn
Polyester Viscose Yarn
Polyester Filament Yarn
Viscose Spun Yarn
Partialy Oriented Yarn
Polyester Spun Yarn
Fibre
Polyester Staple Fibre
DUTY STRUCTURE
Fibres: up to 20%
Yarn: Up to 30%
Fabrics: up to 70%
Made-ups: Up to 95%
SRTEPC Promotional Programme
In view of growing scope for further increasing exports of Indian man-made fibre textiles to Iran, the Synthetic and Rayon Textiles Export Promotion Council is planning to organise an exclusive Indian Textiles Exhibition in Iran during 2014. Through this SRTEPC initiative, its member-exporters will have the opportunity to explore Iranian market and build business contacts with buyers. Thus, the Council urges its member –companies to participate in a big way in these exhibitions and take maximum benefits of the events.
Source: http://www.srtepc.org/
