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Corporate Update

Government Withdraws QCO On Viscose Staple Fibre To Boost Raw Material Access For Textile Sector

The Ministry of Textiles has withdrawn the Quality Control Order for Viscose Staple Fibre, delivering a major relief to textile manufacturers across the value chain. The decision took effect immediately after detailed consultations with the Bureau of Indian Standards and industry bodies. It addresses long standing concerns related to restricted supply, increased operational costs and limited sourcing flexibility for spinners and downstream players.

Industry leaders have repeatedly highlighted that QCO compliance created bottlenecks in the import of VSF, a critical raw material used for apparel, home textiles and nonwoven applications. The removal of this mandate is expected to ease availability and stabilise input prices at a time when mills are navigating fluctuating global fibre markets.

The development aligns closely with India’s Vision 2030 for the textile and apparel sector, which targets US$100 billion in exports and aims to expand the overall domestic and global market footprint to US$350 billion. Improved access to VSF is likely to strengthen India’s competitive position in MMF rich product segments, where global demand continues to rise at close to 5% annually.

Textile manufacturers believe the policy shift will support capacity utilisation, enhance flexibility in sourcing certified global suppliers and reduce compliance burdens on MSMEs. Exporters expect quicker turnaround in product development and stronger integration with global value chains.

The Ministry has underlined its commitment to evidence-based policy interventions that stimulate domestic manufacturing, job creation and long-term sectoral growth. The decision is seen as an important step in reinforcing India’s goal of becoming a leading global hub for sustainable and high value textile production.

The development aligns closely with India’s Vision 2030 for the textile and apparel sector, which targets US$100 billion in exports and aims to expand the overall domestic and global market footprint to US$350 billion. Improved access to VSF is likely to strengthen India’s competitive position in MMF rich product segments, where global demand continues to rise at close to 5% annually.

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