The Confederation of Indian Textile Industry (CITI) looks forward to the spinning segment being brought under the purview of the Textile Expansion and Employment Mission (TEEM) to increase the global competitiveness of India’s textile and apparel sector.

The Textile Expansion and Employment Scheme was announced in the latest Union Budget by the Hon’ble Finance Minister Nirmala Sitharaman, as part of the ‘Integrated Programme’ being planned for the growth of the textile sector. The Scheme aims to “modernise traditional clusters with capital support for machinery, technology upgradation and common testing and certification centres”.

“A balanced and synchronised development, from fibre to finished products, is critical for realising the Government’s vision of scaling India’s textile and apparel industry to $350 billion, including $ 100 billion exports, by 2030,” CITI Chairman Ashwin Chandran said.

“Inclusion of the spinning segment within the ambit of the Textile Expansion and Employment Mission will enhance efficiency and ensure that upstream capabilities are fully aligned with the Mission’s downstream expansion strategy.”

With TEEM acting as a catalyst for expansion and modernisation in weaving, processing and garmenting, downstream segments will require a consistent supply of high-quality, specialised, and sustainable yarn.
The absence of parallel modernisation in spinning will raise the risk of:
• Supply misalignment within the domestic value chain.
• Increased dependence on imported yarn.
• Loss of value addition within the country.

As per industry estimates, nearly 25% of India’s installed spindle capacity is currently lying idle. This situation is not merely a reflection of demand slowdown but is also attributable to technological obsolescence, high energy intensity, lower productivity levels, and limited capability to produce value-added and specialty yarn required by modern downstream segments.

A recent report commissioned by CITI has highlighted that the pace of expansion and modernisation in the Indian spinning industry has considerably slowed and remains below the replacement level needed to keep pace with global technological advancements. In 2024, the share of modern spindles (equipment less than 10 years old) in India stood at 26%, compared to the global average of 33%, and significantly below key competitors such as China (40%) and Vietnam (38%).

The tentative cost of producing yarn in a modern mill is Rs 1.2 per count per KG, whereas in a 10-year-old mill, it is about Rs 1.8 per count per KG. Further, modern technology can result in:
• Productivity going up by 25%
• Quality improvement by 20%
• Power consumption reduced by 15%
• Raw Material realisation improving by 1.5%.

These improvements are critical for strengthening India’s competitiveness in both domestic and export markets.

India’s textile and apparel exports declined 2.21% in dollar terms on a year-to-year basis in the financial year 2025-26.