Indian textile industry is entering a new phase of transformation where diversification, technology adoption, sustainability and value addition will be the key drivers of long term global competitiveness. While India has traditionally has been built on natural fibres, particularly cotton, the rapidly evolving global market demands a stronger presence across the entire textile value chain including MMF, Technical Textiles, Recycled Fibres, Sustainable products and value-addition to further strengthen India’s position in the global Textile and Apparel market.
The future growth of the Indian textile industry will depend not only on expanding capacity, but producing high value products with greater efficiency through Innovation, productivity, advanced technology, sustainability and market diversification. These measures will enable the industry to maximise the emerging opportunities arising from India’s Free Trade Agreements.
In a Press Release issued here today, the re-elected Chairman of SIMA, Mr Durai Palanisamy, expressed this gratitude to the NDA Government for always giving high priority for the textile industry by announcing numerous growth oriented policies including
- Rationalisation of GST across the textile value chain.
- Withdrawal of QCOs on cotton, MMF fibres, filaments and yarns.
- Retention of the annual banking system and reduction of related charges, in relation to power.
- Extension of export obligation period under Advance Authorisation.
- Launch of the Mission for Cotton Productivity.
- Revisions to the PLI Scheme, including lower investment and turnover thresholds.
- Progress on FTAs with the EU, UK, New Zealand, Oman and other countries.
- Export credit support, RoDTEP restoration and extension of RoSCTL.
- Temporary exemption of cotton from 11% import duty.
- Rollback of punitive U.S. tariff from 50% to 18%.
- Reduction of Hank Yarn Obligation from 30% to 20%.
- Rejection of anti-dumping duty recommendations on elastomeric filament yarn.
- Introduction of ECLGS 5.0 to address liquidity constraints providing fully collateral free additional credit upto 20% of peak working capital, subject to a maximum of Rs 100 Cr per borrower with a tenure of upto five years till 31st March 2027 and a one year moratorium on principal loan repayment.
- Withdrawal of the proposed 3.48% power tariff increase in Tamil Nadu
Mr Durai further, appealed to the Government to address the growing volatility in cotton prices as it constitutes around 65-70% yarn manufacturing cost. He emphasised that curbing speculation in the raw material prices is essential to provide a level playing field for the entire textile value chain and urged the Government to consider the following policy interventions:
- Permanently removal of 11% import duty on all varieties of cotton with immediate effect to curb import parity price policy adopted by multinational Cotton Corporation of India and Cotton Trade.
- Government may consider changing the role of CCI on par with China National Cotton Reserves Corporation that maintains more than a year of stock and always maintain stability in prices.
Earlier at the 67th Annual General Meeting of The Southern India Mills’ Association (SIMA), held at SIMA premises, Coimbatore, on 22nd September, 2026 Mr. Durai Palanisamy, Executive Director, Pallava Textiles P Limited, Erode, was unanimously re-elected as the Chairman for the year 2026-27. He holds MBA in International Business from Southern New Hampshire University and Bachelor of Technology in Textile Technology from PSG College of Technology. He is the Vice-President of CII, Erode Zone. He is also in the Committee of Administration of Manmade and Technical Textiles Export Promotion Council (MATEXIL).
Mr. S. Krishnakumar, Managing Director, Sulochana Cotton Spinning Mills P Ltd., Tiruppur, was unanimously re-elected as the Deputy Chairman for the year 2026-27. He holds B.A. Psychology from P.S.G. Arts College Coimbatore and entered the business in the late 80’s. Focusing on sustainable fashion, his company primarily converts used PET bottles into recycled yarns and fabrics. He also heads the newly formed Tirupur Yarn Manufacturers Association.
Mr K Sivaraj, Managing Director, Sivaraj Spinning Mills (P) Ltd, Dindigul was unanimously re-elected as the Vice-Chairman for the year 2026-27. He holds B.Tech. Textiles from USA and entered the business in the late 90s. Sivaraj Spinning Mills is a leading player in the domestic market across its four-product portfolio, yarn, woven fabric, knitted fabric, and readymade garments while strategically focusing on transforming traditional manufacturing into modern retail branding.
