In India, the per capita consumption of manmade fibres is around 2.8 kg, whereas in Europe the per capita consumption is more than 7 kg. There is a wide scope for the growth of manmade fibres in India. A reduction in excise duty rate in manmade fibres would help in achieving this objective partly, since natural fibres are not subject to excise duty.

The government has recognized the need for a fibre-neutral policy for the textile industry, in order to realise the potential for growth that exists in manmade fibre-based products and also to remedy the mismatch between fibre consumption patterns in India and major importing countries. 

Manmade fibres account for 66 per cent of all fibres produced worldwide, and in Europe its 80 per cent all fibers manufactured. Their principal end-use is in clothing, carpets, household textiles and a wide range of technical products - tires, conveyor belts, fillings for sleeping bags and cold-weather clothing etc. Manmade fibres in many cases are used in blends with natural fibres such as cotton and wool. These fibres come in two main forms: continuous filament, used for weaving, knitting or carpet production; and staple, discontinuous lengths of fibre which can be spun into yarn or incorporated in uses such as fillings or nonwovens.