TN Boosts Textiles With New Policy, Rs 1943 Crore Outlay
The Government of Tamil Nadu has unveiled a series of strategic policy initiatives and budgetary measures aimed at strengthening the global competitiveness of the state’s textile industry, which accounts for nearly one-third of India’s total textile business. Recognised as a key pillar of economic growth, the sector is expected to play a significant role in achieving Tamil Nadu’s vision of becoming a US$ 1 trillion economy by 2031.
On January 29, Deputy Chief Minister Udhayanidhi Stalin launched the Tamil Nadu Integrated Textile Policy 2025–26 at the inaugural International Textile Summit 360 held in Coimbatore. The two-day summit marked a major step in aligning industry stakeholders with the government’s long-term roadmap for sustainable and technology-driven growth in textiles.
In the Interim Budget presented by Finance Minister Thangam Thennarasu, Rs 1,943 crore has been earmarked exclusively for handlooms and textiles. An equivalent allocation has been made for MSMEs, while Rs 4,282 crore has been set aside for industries, which is also expected to benefit the textile value chain through infrastructure and industrial development support.
Welcoming the budget, Durai Palanisamy, Chairman of The Southern India Mills Association (SIMA), expressed appreciation to Chief Minister M. K. Stalin for prioritising the implementation of measures outlined in the Integrated Textile Policy. He noted that the provisions would accelerate modernisation, infrastructure expansion and employment generation across the sector.
Palanisamy also lauded the allocation of Rs 6 crore for establishing an Advanced Quality Testing Laboratory at the South India Textile Research Association (SITRA) in Coimbatore. The facility is expected to support the growth of athleisure and technical textile manufacturing, enabling the state’s producers to meet evolving global standards.
According to industry representatives, the budget further provides for the development of Handloom Parks, modernisation of powerlooms, installation of shuttleless looms and incentives to attract fresh investments in technical textiles and garmenting. These initiatives are aimed at enhancing productivity, promoting value addition and strengthening Tamil Nadu’s position as a leading textile hub.
In addition, the government has proposed the release of a New Integrated Renewable Energy Policy, backed by a substantial allocation of Rs 18,091 crore, to boost renewable energy capacity in the state. The move is expected to provide sustainable and cost-efficient energy solutions for energy-intensive industries, including textiles.
