Tamil Nadu textile industry seeks State budget support for growth, modernisation
The Southern India Mills Association (SIMA) has called on the Tamil Nadu government to provide adequate budgetary allocations in the upcoming State budget to address critical challenges facing the textile industry. The industry, which employs around 70 lakh people, contributes significantly to the State and national economy.
According to a press release issued by SIMA on Monday, Tamil Nadu accounts for nearly 25% of India's textile business. The State holds a prominent position across the entire value chain, including 45% of the country's spinning capacity, 22% of powerloom capacity, 70% of cotton knitted garment manufacturing, 40% of home textile manufacturing, and 12% of handloom capacity. Tamil Nadu also contributes about 28% of India's textile exports, valued at approximately $10.5 billion.
The State is home to 80% of the country's spinning machinery, spares, and accessories manufacturing capacity. The textile sector contributes over ₹4,500 crore annually to the State Goods and Services Tax (SGST).
SIMA chairman Durai Palanisamy highlighted several key challenges that require government intervention. These include gaps in textile processing, raw material availability, and the need for modernisation of manufacturing units.
One of the primary demands is the establishment of industry-led training centres to upskill the existing workforce. SIMA has urged the State government to allocate sufficient funds for this purpose, noting that a skilled workforce is essential for the industry to remain competitive.
Another critical issue is the shortage of cotton. Tamil Nadu produces only about five lakh bales of cotton annually, against a requirement of 110 lakh bales. SIMA has suggested that the State government announce a dedicated mission to promote cotton cultivation. The association also sees potential in growing specialty cotton varieties, such as Extra Long Staple (ELS), organic cotton, and naturally coloured cotton, which could enhance farmers' incomes and reduce dependence on other States.
The association further requested the introduction of suitable capital subsidy schemes to encourage replacement of obsolete technology in textile machinery. Modernisation, it said, is essential for producing high-quality and cost-effective textile products that can compete in global markets.
With technical textiles and value-added products made from man-made fibres (MMF) emerging as the fastest-growing segments globally, SIMA has recommended that the proposed Tamil Nadu Industrial Policy 2026 focus on strengthening the State's textile ecosystem. This would help increase the State's share in both national and international markets.
On the environmental front, the association drew attention to the challenges faced by textile processing units. While many processing units in Tamil Nadu have successfully adopted the Zero Liquid Discharge (ZLD) system to comply with stringent environmental norms, this has led to the accumulation of mixed salts. SIMA has asked the State government to formulate a comprehensive scheme for the safe disposal of treated waste through deep-sea outfall, wherever technically and environmentally feasible, and to establish an effective mechanism for the scientific disposal of accumulated mixed salts.
