India Rayon Fibers Market Overview, 2030

India is the world’s second-largest producer of rayon, with the market having witnessed substantial growth due to increasing demand from both domestic and international consumers. The country’s rayon production is predominantly based on the viscose process, where wood pulp is chemically treated to produce the fiber. The traditional dry-wet spinning process is employed, where wood pulp is dissolved in caustic soda, and then regenerated into fibers by passing the solution through a spinning nozzle. The industry is governed by the Ministry of Textiles, with regulations regarding environmental impact, worker safety, and sustainable practices under the Textile Committee and Central Pollution Control Board (CPCB). There has been a push for more sustainable practices through government initiatives, such as the National Policy on Textiles and Apparel which aims to modernize the sector and enhance the usage of eco-friendly production methods. The Goods and Services Tax (GST) on rayon fabrics has been a matter of discussion, with the sector often advocating for reduced tax rates to support growth and competitiveness. Global competition from countries like China, Indonesia, and Thailand has put pressure on Indian manufacturers to improve quality, productivity, and environmental standards. Labor issues in unorganized sectors also pose a challenge, with workers often facing poor working conditions. To counter this, the Indian government has introduced programs to facilitate easier access to finance for textile SMEs (small and medium-sized enterprises), as well as capacity-building initiatives.

According to the research report India Rayon Fiber Market Overview, 2030, published by Bonafide Research, the India Rayon Fiber market is anticipated to grow at more than 8.75% CAGR from 2025 to 2030. India has established itself as one of the leading manufacturers of rayon fiber, with a well-integrated supply chain spanning raw material procurement, fiber production, and textile manufacturing. The primary raw material for rayon production in India is wood pulp, largely imported due to domestic shortages of high-quality pulp, particularly from countries like Indonesia, the USA, and Canada. The rayon supply chain in India is highly fragmented, with large integrated mills at the top, mid-sized textile companies handling weaving and dyeing, and smaller decentralized units engaged in spinning and knitting. On the import side, India imports not only wood pulp but also chemical inputs required for the viscose process, and with raw material costs and environmental regulations shifting globally, these dynamics shape trade patterns. Rapid urbanization, the growth of the fashion and textile industry, and rising disposable income are contributing to the growth of this market. Indian consumers are shifting towards affordable luxury in their apparel choices, and rayon fabricsespecially those blended with cotton, polyester, and spandex have become highly popular in ready-to-wear and mass-market fashion. India is witnessing innovations in rayon blends, where rayon is combined with natural fibers like cotton or synthetics like polyester to enhance strength, stretchability, and durability. The increasing competition from countries like China, which also produce rayon at large scales, may put additional pressure on India's market share, particularly in price-sensitive markets.

Viscose is a highly versatile fiber, popular for its affordability, soft texture, and silk-like appearance, making it a go-to material in India’s garment industry. Its ability to breathe and absorb moisture makes it particularly suited for India’s hot and humid climate. Viscose is widely used for casual wear, ready-to-wear garments, sarees, salwar kameez, and home textiles like bed linens and towels. Advancements in viscose production in India are centered around improving water management systems, reducing chemical waste, and shifting to more sustainable sources of wood pulp, especially as the domestic market grapples with rising concerns over deforestation and resource depletion. modal fabrics tend to have a soft and silky feel, but they are more moisture-wicking than viscose, which makes them particularly comfortable in India’s tropical weather. Despite its advantages, modal production in India is still relatively limited compared to viscose. There is increasing investment in technological advancements aimed at improving modal’s production efficiency, particularly by integrating environmentally friendly technologies that minimize the use of harsh chemicals and reduce environmental impact. Lyocell is highly breathable, hypoallergenic, and moisture-wicking, making it an excellent option for India’s tropical climate. Innovations in raw material sourcing, such as the use of eucalyptus trees and other sustainably grown wood for modal and lyocell, will shape the future of these fibers in India. Advancements in spinning technology and the development of closed-loop recycling systems could pave the way for more efficient, cost-effective production processes, expanding the reach of more sustainable fibers in the market.

India’s fashion-conscious population especially among the urban middle class is increasingly opting for rayon as an alternative to expensive natural fibers like silk. Rayon offers a silk-like texture at a fraction of the price, making it a popular choice for bridal wear and special occasion garments. The versatility of rayon allows it to be used across various fashion categories, from ethnic wear in regions like North India to western casuals in cities like Mumbai and Bengaluru. Rayon’s moisture-wicking properties make it suitable for both summer wear and winter collections in India’s diverse climate, where demand for breathable fabrics is high. Advances in rayon blend technologies are also pushing innovation in comfort-driven apparel, where stretch, drapability, and durability are key features. Rayon fabrics are favored for their silky feel and easy maintenance, which are crucial in home textiles where comfort and aesthetics matter the most. In the bedding segment, rayon fibers are often blended with cotton to produce luxurious yet affordable bed sheets, comforters, and pillow covers, especially in regions with a hot and humid climate. The growing real estate boom and rising disposable incomes in Tier-2 and Tier-3 cities are driving demand for high-quality home furnishings, where rayon is increasingly favored for its cost-effective luxurious feel. Rayon’s moisture-regulating qualities make it an attractive option for products like mattress covers and bedspreads, which are required to withstand humidity while providing comfort. The increasing health awareness in India, especially after the COVID-19 pandemic, has led to a greater focus on hygienic products, creating opportunities for rayon to penetrate the market. Rayon-based nonwoven fabrics are also used in disposable medical products, such as masks, gowns, and protective clothing. India’s large rural population also represents a growing market for affordable hygiene products such as sanitary napkins, which is fueling demand for rayon-based sanitary solutions.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Rayon Fibers Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type
• Viscose
• Modal
• Lyocell
• Others

By Application
• Apparel
• Home Textiles
• Healthcare & Hygiene
• Others

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.