The study estimated that by March 2010, the capacity of the synthetic fibre industry would be 1,789 million kg against 1,659 million kg at the end of 2007-08.
The slowdown had stalled 11 projects involving an investment of Rs 3,500 crore, CMIE data shows.
The new projects, which were announced in the second quarter of this fiscal, included S Kumars' cotton viscose polyester weaving unit at Dhar (Madhya Pradesh), Samosaran Yarns' project at Thane in Mumbai and Patodia Filaments' polyester plant at Dadra and Nagar Haveli.
After struggling with the slowdown for almost a year, things have started looking up for the sector.
"Exports in the second half are expected to improve with exporters receiving orders from the western markets," Confederation of Indian Textiles Industry Secretary General D K Nair said.
The exports, which account for about one-third of the textile industry, were about USD 21 billion during 2008-09.
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