TN Govt boosts textile sector with new policy, budget allocation

Tamil Nadu's government unveiled its Integrated Textile Policy 2025-26 and allocated Rs 1,943 crore in the interim budget to enhance the state's textile industry, a key driver in its goal of achieving a USD 1 trillion economy by 2031.

The Government of Tamil Nadu has been implementing a series of strategic policy initiatives and extending targeted benefits to enhance the global competitiveness of the state's textile industry, which constitutes one-third of India's total textile business. Recognised as a key driver of economic growth, the textile sector is poised to play a pivotal role in realising Tamil Nadu's vision of achieving a USD 1 trillion economy by 2031.

New Policy and Budget to Bolster Textile Sector

According to the release, Tamil Nadu Deputy Chief Minister Udhayanidhi Stalin unveiled the Tamil Nadu Integrated Textile Policy 2025-26 on January 29 at the inaugural function of the International Textile Summit 360, a two-day maiden event organised by the government in Coimbatore. The Interim Budget announced today by Minister of Finance Thangam Thennarasu has allocated Rs 1,943 Crore exclusively for Handlooms and Textiles, apart from allocating an equal amount for MSMEs and Rs 4,282 Crore for industries that would also benefit the textile industry.

Industry Welcomes Government Initiatives

In a press release issued here today, Durai Palanisamy, Chairman, The Southern India Mills Association (SIMA), has welcomed the interim budget and thanked Tamil Nadu Chief Minister M.K. Stalin for giving significant support for the implementation of various policy measures included in the Integrated Textile Policy and encouraging modernisation, infrastructure development, and employment generation.

Focus on Modernisation and Technical Textiles

Durai has welcomed the allocation of Rs 6 Crore for establishing an Advanced Quality Testing Laboratory at the South India Textile Research Association (SITRA), Coimbatore, to promote athleisure and other technical textile manufacturing in the state.

He has stated that adequate funds have been allocated to establish Handloom Parks, modernise Powerlooms, install shuttleless looms, and attract new investment in processing technical textiles and garmenting.

Support for Renewable Energy Sector

He also welcomed the proposal to release the 'New Integrated Renewable Energy Policy' to enhance renewable energy capacity in the State, with a budget allocation of Rs 18,091 crores. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)