The history of fiber

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The history of fiber is as old as human civilization. Traces of natural fibers have been located to ancient civilization all over the globe. For many thousand year the uses of fiber was limited by natural fiber such as flax cotton silk wool and plant fibers for different application Flax is considered to be the oldest and the most used natural fiber since ancient time.


India fiber industry is the new addendum to the ever-growing Indian Textile Industry. Unlike the other sectors of Indian Textile Industry, the India synthetic Fiber industry is an organized sector.

The main products of the India fiber industry include man-made fiber and yarn. These man-made fiber and yarn mainly constitutes textile of cellulose and non-cellulose origin. The cellulose fiber or yarn industry is under the administrative control of the Ministry of Textiles while non-cellulose industry is under the control of Ministry of Chemicals and Fertilizers (Department of Chemicals and Petro Chemicals). The Indian fiber industry plays a vital role in the Indian Textile industry. This industry accounts for about 2.09 billion kg i.e. 44%, of man-made fiber or yarn industry. Industrial output of India synthetic fiber industry during 2004-05 amounted to 774.65 million kg. The product of this industry includes polyester staple fiber, acrylic staple fiber and polypropylene staple fiber. The import of India synthetic fiber industry showed a mixed trend over the last five years and its import doubled to 143.54 million kg during 2004-05. Further, the export of India synthetic fiber industry had grown by 50% during the same period.


  • Natural fiber
  • Under them there are various categories

    1. Plant
    2. Animal
    3. Minerals

    Vegetable fiber, animal fiber, mineral fiber,

  • Man made fiber
  1. Natural man made fiber
  2. synthatic man made fiber
  • Nylon fiber
  • Rubber fiber
  • Glass fiber
  • Metallic fiber


PESTLE analysis stands for political, economic, social, technological, legal, and ecological. It analyzes and describes a framework of macro environmental factor used in the environmental scanning component of strategic management. It is a tool for understanding market growth and describe business position, potential, and direction for operation .


political factor include tax policy , labor law , environmental law, trade restriction ,tariffs and political stability . this factor also include good and services which the government want to provide or be provide and those that the government does not want to provide . Governments have great influence on the health, education, and infrastructure of a nation.


Economic factor include economic growth, interest rate, exchange rate, and the inflation rate. The factors have major impact on how business operate and make decision.

Example: - interest rate affect a firm cost of capital and therefore to what extent a business grow and expand.


Social factor include the culture aspect the include health consciousness , population, growth rate , age distribution , carrier attitude and emphasis on safety .trends in social factor effect the demand for a company's product and how that company operate .


Technological factor include ecological and environmental aspect such as R&D activity, automation, technology incentive, and the rate of technological change they can determine barrier to entry minimum. Efficient production level and influence outstanding decision technology factor effect cost, quality and lead to innovation .


Legal factor plays very vital role in business it include industrial licensing , company formation , factory formation , factory administration , industrial disputes, payment wages , trade unionism , monopoly control, foreign exchange regulation, shop and establishment, etc .


Environmental factor include weather , climate , and climate change which may especially affect industries such as tourism , farming, and insurance to climate change is affecting how company operate and the product they offer it is both creating new markets and diminishing or destroying exit cost.



Industrial trade fair and exibition

The government would activity support the marketing and organization of major exhibition and events in order to create awareness on the use and disposal of plastic the proposed plastic development council would also promote such events with the help of itpo and other organization

The department of chemicles & petrochemicles would activily undertake the holding of seminars workshop industry meets publication of promotional literature and other such measures as may be warranted to promote investment and new application in petro chemicles the industry associates with the organization of these events

Trade regulation:-

  • To simplify claims under FPS, requirement of 'fiber Mark' for availing benefits under FPS has been removed.
  • fiber sector shall be allowed re-export of unsold imported raw and semi finished fiber products from public bonded ware houses, subject to payment of 50% of the applicable export duty. 29. Enhancement of FPS rate to 2%, would also significantly benefit the fiber sector.

Tax policies:-

Customs duty issues

In the last budget, duty on fibres and yarn had to be reduced to 20% as a consequence of the Indo-US/EU agreement. Unfortunately, corresponding reductions were not carried out for inputs, i.e., raw materials, catalysts, capital goods, etc.

It is critical that duty on fiber raw materials like PTA, DMT, MEG, caprolactum, etc. should be so calibrated so as to provide an effective 10% differential compared with the import duty on synthetic fiber. The association recommends the following steps be taken by the government:

  • Import duty on fiber raw materials like PTA, DMT, MEG and caprolactum should be brought down from 27.5% to 10% (including surcharge).
  • Import duty on polymer chips used for the manufacture of fiber and yarn should be 15% (including surcharge).
  • Import duty on catalysts, chemicals and additives used in the manufacture of synthetic fiber and yarn should be at par with import duty on fiber raw materials i.e.10% (including surcharge).
  • import duty on capital goods should be 5% (including surcharge) keeping in view the further likely decline of duties in fiber and yarn to South East Asian levels in the coming years.

The Indian Customs Act, 1975, has a remedy for such situations under section 3.3. This section has provided an additional CVD equal to the excise duty leviable on any raw material, components and ingredients used in the production of articles and attract no excise duty on imports of such articles as additional CVD.

Similarly, there is no excise duty on 210 D yarn as the item is largely consumed by fishermen for nets. As a result, imported 210 D yarn also does not attract any CVD. It is therefore recommended that a CVD equivalent to excise duty paid on raw materials should be levied on imports of 210 D yarn.

A floor price may be fixed for POY PSF and NTCF so as to eliminate negative protection and also to curb the threat of cheap imports, particularly from China and re-routed imports. These floor prices should be based on the export prices of USA and EU.

Excise duty issues:-

  • Excise duty on all fibers, i.e., cotton and synthetic fibres, should be the same. The duty structure should not dictate the market preferences.Correspondingly, excise duty on cotton, synthetic fibres and yarn should be kept at a uniform rate of 16%.
  • If for any reason excise duty on cotton is kept at 8%, then excise duty on all synthetic fibres and yarn should also be kept at 8%.
  • Additional excise duty at 15% of BED was levied on textiles and textile articles for more than a decade now under the Additional Duties of Excise (Textile and Textile Articles Act 1978) to fund the subsidy for the Janata Cloth Scheme. As the scheme has been abolished, the additional excise duty needs to be scrapped.
  • For consumer fiber, additional excise duty in lieu of sales tax can be dispensed with as all states would be adopting uniform sales tax rates with effect from 2001.
  • Equality in excise duty between the dyed polyester spun yarn and dyed texturised polyester yarn should be ensured.
  • Relief for cycle tyre consumers and level playing field with cotton
  • To bring down the cost of production of cycle and rickshaw tyres, excise duty on nylon tyre cord fabric used for the manufacture of bicycle and rickshaw tyres should be reduced to 8%. This will also minimise the disadvantage against cotton.

All these recommendations taken together, according to the association, will have a positive impact on revenue collection


  • Enhancement of the Annual Plan 2009-10 outlay of the Ministry of fiber by Rs.2000 crore to Rs.4500 crore as compared to the BE 2008-09 of Rs.2500 crore. An outlay of Rs.3140 crore has been earmarked for the Technology Upgradation Fund Scheme (TUFS).
  • Interest subvention of 2 per cent on pre-shipment credit for seven employment oriented export sectors extended beyond the current deadline of September 30, 2009 to March 31, 2010.
  • List of specified raw materials and equipment imported by manufacturer- exporters of leather goods, textile products and footwear industry which are fully exempted from customs duty, subject to specified conditions, to be expanded.
  • To facilitate flow of credit at reasonable rates, Rs.4000 crore MSEs during the current financial year.
  • Adjustment assistance scheme to provide enhanced Export Credit and Guarantee Corporation (ECGC) cover at 95 per cent to badly hit sectors extended upto March 2010.


a) Per Capita Consumption

The Per capita consumption which is 2.6 kg as against the world average of 16 kg is likely to go up to 3.8 kg.

Fiber policies :-

The fiber sector is considerable deregulated. The items which require compulsory licenses are and its derivatives.

100% FDI is generaly permitted through the automatic route with out any sectoral cap specific approvals are required only in case of proposals requiring compulsury license foreign investment of more than 25% in equity capital of a company manufacturing items reserved for the small scale sector and proposals relating to the acquisition of existing shares in an indian company.

Fiber products are imported freely under open general license . there is no regulatory control on the pricing of fiber products.

This policies document aims to:-

  • increase investment in the sector both upstream and downstream and capture of the resurgent Asian demand in polymers and downstream processing through addition in capacity an production by ensuring availability of raw materials at internationally competitive prices creating quality infrastructure and other facilitation to ensure value addition and increase exports.
  • Increase the domestic demand and per capita consumption of fibers
  • Increase the competitiveness fiber absorption capacity and value addition in the domestic downstream fiber processing industry through modernization research and development measures and feeing it from structural constrictions.
  • Promote research and development in fiber industry and promote human resource development.


  • Ordinary working people found increased opportunities for employment in the new mills and factories, but these were often under strict working conditions with long hours of labour dominated by a pace set by machines. However, harsh working conditions were prevalent long before the Industrial Revolution took place. Pre-industrial society was very static and often cruel-child labour, dirty living conditions, and long working hours were just as prevalent before the Industrial Revolution.
  • Industrialisation led to the creation of the factory. Arguably the first was , operational by 1721. However, the rise of the factory came somewhat later when cotton spinning was mechanised.
  • The factory system was largely responsible for the rise of the modern city, as large numbers of workers migrated into the cities in search of employment in the factories. Nowhere was this better illustrated than the mills and associated industries of "Cottonopolis", and arguably the world's first industrial city. For much of the 19th century, production was done in small mills, which were typically water-powered and built to serve local needs. Later each factory would have its own steam engine and a chimney to give an efficient draft through its boiler.


  • Modernization of fiber industry

The fiber industry is fragmented and most of the plants are of the suboptimal size with outdated technologies the government will encourage technology up gradation of fiber industry.

Thrust will be given for the development of high performance yarn used in the manufacture of the technical textiles these fiber are used in the geo textile for road construction fire retardant textile in public places air bags for passenger cars and non woven disposables in health care these application areas need encouragement In investment and creation of awareness formulation of quality standards for technical textile fiber and textile is also desired.


  1. Increase the minimum wages.
  2. Legal change can affect the firm's cost and demand.
  3. Different type of law includes
  • Consumer law: - these are design for protect the customer right against unfair practices.
  • Competition law: - These are for protection for small industry. And protection for monopoly.
  • Employment law: - It covers area such as redundancy, dismissal, working hour and minimum wages.
  • Health and safety legislation: - These laws are aimed to ensuring the workplace to be safe reasonable standard.


  1. Fibre production is energy intensive and calls for a heavy consumption of water Environmental issues surrounding the fibre are unclear, although "it is thought that a significant number of production chemicals (including the base ingredient acrylonitrile) have a high potential for creating environmental problems if discharged
  2. According to Fletcher, there are four main environmental impacts of fiber production: use of petrochemicals (non-renewable resource); high level of energy consumption (contributing to global warming); potential toxic air and water emissions such as "heavy metal cobalt; manganese salts; sodium bromide and titanium dioxide" (Fletcher, Eco Textiles); and the environmental cost associated in slow biodegradability (Fletcher, Eco Textiles).


AFTER the study of all above things we got the conclusion pestle analysis is a useful strategic tool for formulating business strategies , marketing planning, business and product development it ensures that organization performance is aligning positively external forces of change that could impact on business changes. and we had study about the PESTLE analysis of fiber industry means political factor, economical factor, social factor, technological factor, environmental factor and legal fator of fiber industry which anayze and describe a framework of macro environmental factor used in the environmental scanning component of strategic management.


  • About fiber industry:-
  • About pestle analysis:-
  • Political effect:-
  • Economical effect:-
  • social effect:-
  • Technological effect:-
  • legal effect:-
  • Environmental effect:-