With a new textile policy on the horizon, stakeholders from Tamil Nadu’s textile industry have called on the state government for support in modernizing outdated powerloom units and addressing operational challenges. Industry representatives have highlighted the urgent need for investment in machinery or retrofitting of traditional powerlooms to maintain competitiveness in the evolving market.

Additionally, the industry has appealed for state assistance in managing Common Effluent Treatment Plants (CETPs), with particular focus on improving sludge management and disposal processes.

Recently, the Tamil Nadu Department of Handlooms, Handicrafts, Textiles, and Khadi held discussions with local textile associations in Chennai. A department official shared that multiple rounds of talks have been held with stakeholders, and an updated textile policy is expected to be announced soon. The new policy aims to meet the contemporary needs of the industry and will build upon the 2019 textile policy, with particular emphasis on supporting units with turnovers under Rs 50 crore in the man-made fibre (MMF) sector.

To foster growth, the state has also issued orders for the creation of 10 mini textile parks. Additionally, the approval of an integrated textile park near Salem by the Central government is expected to provide solutions for regional processing industries.

As one of the largest textile manufacturing hubs in the world, Tamil Nadu accounts for a significant share—one-third—of India’s textile business. The sector has created millions of jobs, including for workers from other states. Earlier this year, R. Gandhi, Minister of Handlooms and Textiles, presented a policy note highlighting various benefits for the handlooms, handicrafts, textiles, and khadi sectors.

The new textile policy also aims to further strengthen Tiruppur’s position in the global apparel value chain. Known for its Rs 35,000 crore export business and Rs 25,000 crore in domestic trade, Tiruppur is expected to lead in Environmental and Social Governance (ESG) practices, attracting further investments. The garment sector in Tiruppur is notable for its predominantly female workforce, comprising 80% of employees.

However, rising electricity costs have become a growing concern for industry stakeholders, with textile units currently paying approximately Rs 9.5 per unit, significantly impacting their operational costs. Associations in Coimbatore and Tiruppur have called for government support to aid struggling mills. S.K. Sundararaman, Chairman of the Southern India Mills’ Association, highlighted that only 60% of textile mills in Tamil Nadu are operational. He stressed that the state risks losing out to investment-friendly policies in Gujarat, Maharashtra, and Madhya Pradesh if timely interventions are not made, warning of potential severe setbacks for Tamil Nadu’s textile sector.