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IRAN

INCREASING EXPORT OPPORTUNITIES OF INDIAN MAN-MADE FIBRE TEXTILES TO IRAN

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

Chapter

Product

Import in 2013 value in US$ 000

50

Silk

3,130

51

Wool, animal hair, horsehair yarn and fabric thereof

35,347

52

Cotton

88,304

53

Vegetable textile fibres nes, paper yarn, woven fabric

3,914

54

Manmade filaments

543,442

55

Manmade staple fibres

526,126

56

Wadding, felt, nonwovens, yarns, twine, cordage, etc

80,990

57

Carpets and other textile floor coverings

36,646

58

Special woven or tufted fabric, lace, tapestry etc

145,613

59

Impregnated, coated or laminated textile fabric

147,537

60

Knitted or crocheted fabric

108,404

61

Articles of apparel, accessories, knit or crochet

219,813

62

Articles of apparel, accessories, not knit or crochet

98,854

63

Other made textile articles, sets, worn clothing etc

108,568

Total

2,146,688

Source: ITC UN Comtrade

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

HS Code

Product Description

Imports in 2013

(In USD 000)

540752

Woven fabrics,>/=85% of textured polyester filaments, dyed, nes

213,970

540247

Filament yarn of polyester, incl. monofilament of < 67 decitex, single

48,727

540754

Woven fabrics,>/=85% of textured polyester filaments, printed, nes

45,789

540710

Woven fab of high tenacity fi yarns of nylon oth polyamides/polyesters

31,814

540761

Woven fabric >85% non-textured polyester filaments

31,065

540244

Synthetic filament elastomeric yarn, single, untwisted or with a twist

29,004

540219

High-tenacity filament yarn of nylon or other polyamides (excl. sewing

26,803

540419

Synthetic monofilament of >= 67 decitex and with a cross sectional dim

17,862

540246

Filament yarn of polyester, incl. monofilament of < 67 decitex, single

13,656

540233

Textured yarn nes,of polyester filaments,not put up for retail sale

11,991

540252

Yarn of polyester filaments, single, >50 turns per metre, not put up

10,644

540769

Woven fabric >85% polyester filaments, nes

10,595

540772

Woven fabrics,>/=85% of synthetic filaments, dyed, nes

5,633

540792

Woven fabrics of synthetic filaments, dyed, nes

4,992

540753

Woven fabrics,>/=85% of textured polyester filaments, yarn dyed, nes

4,485

540220

High tenacity yarn (o/t sewg thread),of polyester filaments,not put up

4,123

540110

Sewing thread of synthetic filaments

2,739

540331

Yarn of viscose rayon filaments, single, untwisted, nes, not put up

2,209

540720

Woven fab obtaind from strip/the like of synthetic textile materials

1,993

540262

Yarn of polyester filaments, multiple, nes, not put up

1,973

540794

Woven fabrics of synthetic filaments, printed, nes

1,726

540261

Yarn of nylon or other polyamides fi, multiple, nes, not put up

1,689

540239

Textured yarn of synthetic filaments, nes, not put up

1,574

540751

Woven fabrics,>/=85% of textured polyester filaments, unbl or bl, nes

1,448

540742

Woven fabrics,>/=85% of nylon/other polyamides filaments, dyed, nes

1,340

540120

Sewing thread of artificial filaments

1,336

540245

Filament yarn of nylon or other polyamides, incl. monofilament of < 67

1,115

540782

Woven fabrics of synthetic filaments,<85% mixed with cotton,dyed,nes

1,093

540249

Yarn of synthetic filaments, single, untwisted, nes, not put up

952

Main countries supplying man-made filament textiles to Iran during 2013

Country

United Arab Emirates

China

Free Zones

Republic of Korea

Turkey

India

Malaysia

Chinese Taipei

Main man-made staple fibre textiles imported by Iran during 2013

HS code

Product Description

Imported in 2013 

(in US$ 000)

551614

Woven fabrics, containing>/=85% of artificial staple fibres, printed

34,148

550200

Artificial filament tow

29,457

551511

Woven fab of polyester staple fib mixd w viscose rayon staple fib,nes

25,003

550951

Yarn of polyester staple fibres mixd w/ arti staple fib,not put up,nes

21,038

551011

Yarn,>/=85% of artificial staple fibres, single, not put up

18,174

550130

Filament tow of acrylic or modacrylic

15,142

551612

Woven fabrics, containing>/=85% of artificial staple fibres, dyed

13,082

550810

Sewing thread of synthetic staple fibres

11,817

551110

Yarn,>/=85% of synthetic staple fibres, o/t sewing thread, put up

8,187

550932

Yarn,>/=85% acrylic/modacrylic staple fibres,multiple,not put up,nes

5,207

551323

Woven fab of polyester staple fib,<85%,mixd w/cot,</=170 g/m2,dyd,nes

4,762

551321

Plain weave polyester staple fib fab,<85%,mixd w/cotton,</=170g/m2,dyd

4,365

551329

Woven fabrics of oth syn staple fib,<85% mixd w/cotton,</=170g/m2,dyed

4,050

551219

Woven fabrics,containg>/=85% of polyester staple fibres,o/t unbl or bl

3,464

551299

Woven fabrics,containg>/=85% of other synthetic staple fib,o/t unbl/bl

2,704

550390

Synthetic staple fibres, not carded or combed, nes

2,226

551599

Woven fabrics of synthetic staple fibres, nes

2,208

551513

Woven fab of polyester staple fibres mixd w/wool/fine animal hair,nes

1,749

550630

Staple fibres of acrylic or modacrylic, carded or combed

1,655

551120

Yarn, <85% of synthetic staple fibres, put up for retail sale, nes

1,649

550911

Yarn,>/=85% nylon or other polyamides staple fibres,single,not put up

1,428

551311

Plain weave polyest stapl fib fab,<85%,mixd w/cottn,</=170g/m2,unbl/bl

1,289

551349

Woven fab of oth syn staple fib,<85%,mixed w/cot,</=170g/m2,printed

1,224

551512

Woven fabrics of polyester staple fibres mixd w man-made filaments,nes

1,166

550953

Yarn of polyester staple fibres mixed with cotton, not put up, nes

1,035

551692

Woven fabrics of artificial staple fibres, dyed, nes

1,018

Main countries supplying man-made staple fibre textiles to Iran during 2013

Country

Germany

Chinese Taipei

Republic of Korea

Turkey

Malaysia

United Arab Emirates

Belarus

Japan

India

China

Indonesia

Spain

Thailand

 

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

Year

Fabrics

Made-up

Yarn

Fibre

Total

%Gr/Dec

2009-2010

26.52

3.70

29.15

16.55

75.92

 

2010-2011

76.73

5.69

54.90

17.27

154.59

103.62

2011-2012

180.04

3.54

48.49

17.37

249.44

61.36

2012-2013

44.38

3.01

33.81

7.86

89.06

-64.30

2013-2014

45.07

3.32

65.09

34.98

148.46

66.70

SOURCE: DGCI&S

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.

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