The industry thanked the Government of Tamil Nadu led by your goodself for creating a separate department exclusively for Textiles for the first time in Indian history to enhance modernization, sustainability and a globally competitive textile sector, focusing on technical textiles, spinning and garmenting. On behalf of the entire textile value chain, they also respectfully conveyed their heartfelt gratitude to the Hon’ble Chief Minister.
Major Tamil Nadu Textile Policies Reforms
• Removal of 1% market committee Cess on seed cotton, cotton waste and cotton lint that prevailed since 1959; advising CCI to commence depot sale to benefit the small and medium Spinning mills in Tami Nadu
• Implementation of the PM MITRA Park at Virudhunagar, one of the seven parks approved by the Ministry of Textiles.
• Including machinery in addition to infrastructure and making the mini textile park scheme investment friendly and thereby attracting huge investments
• Launching sustainable cotton mission for increasing the cotton production and productivity in Tamil Nadu
• Announced launching a mega Viscose Staple Fibre production factory near Tuticorin to strengthen the competitiveness of Viscose Staple Fibre value chain in Tamil Nadu that accounts 70% of viscose staple fibre being consumed in the State.
The Hon’ble Deputy Chief Minister, Thiru Udhayanidhi Stalin released Tamil Nadu New Integrated Textile Policy 2025-26 on 29th January 2026 at Coimbatore, The Unique benefits extended under the policy are
1. 6% Interest Subvention for all the spinning machines
2. 20% Capital Subsidy for 1,000 looms to modernize as shuttleless looms with Electronic Jacquard
3. 50% Capital Subsidy to upgrade 3,000 Powerlooms as raiper shuttleless looms
4. 5% to 25% Subsidy to establishment of worksheds for shuttleless looms in powerloom clusters.
5. 25% Capital Investment Subsidy to set up New Textile Processing units (Dyeing, Printing and Finishing) and IETPs and 25% for Expansion / Modernisation / Upgradation of existing Textile Processing Units and IETPs
6. 25% Capital Investment Subsidy for setting up of manufacturing facility for non-conventional fibres/yarn such as Banana, water hyacinth, bamboo, hemp, flax, pineapple fibre, etc.,
7. Allocation of Rs 15 Crores to accelerate growth and promote diversification into Technical Textiles and Rs 25 Crores for Research and Business Development Fund for Technical Textiles and Man Made Fibre.
8. 50% Capital Investment Subsidy for purchase of brand new fully computerized cutting machine with CAD / CAM Software.
Power related reforms
1. Continuation of annual banking facility for wind power generations to enhance the performance of Tamil Nadu textile industry.
2. Permitting to continue operating old wind mills of 20 years and above with annual banking facility
3. Free electricity units was increased from 200 units to 300 units for handloom sector and from 750 units to 1000 units for power loom sector.
4. The Peak Hour charges for LT (Low Tension) industrial consumers were waived. Extended 50% concession in the Network Charges for the LT Consumers having Rooftop Solar.
Schemes benefitted the Tamil Nadu textile industry by continuously persuading the Government of India, through Hon’ble Minister for Textiles, Thiru R Gandhi, as well as through Hon’ble Members of Parliament;
• The 11% import duty imposed on long-staple cotton was completely withdrawn. For other cotton varieties, duty exemptions were granted during the period April–October 2022 and August–December 2025.
• The Quality Control Order (QCOs) regulations imposed on Man-Made Fibre, Filaments and Yarns were withdrawn.
• The GST rate on Man-Made Fibre was reduced from 18% to 5%, and MMF yarn from 12% to 5%.
• During periods of COVID and the 50% Tariff imposed by US and economic recession, financial assistance and other relief measures were provided.
For implementing such historic and landmark schemes, on behalf of the entire Textile Industry, we respectfully convey our heartfelt gratitude and sincere thanks to the Honorable Chief Minister of Tamil Nadu.
• The Confederation of Indian Textile Industry, (CITI), Delhi
• The Cotton Textiles Export Promotion Council, (TEXPROCIL), Mumbai
• Manmade and Technical Textiles Export Promotion Council (MATEXIL), Mumbai
• Powerloom Development & Export Promotion Council (PDEXCIL), Mumbai
• The Southern India Mills Association, (SIMA), Coimbatore
• The South India Textile Research Association, (SITRA), Coimbatore
• The Confederation of Indian Industry – Textiles Division, Delhi
• Tiruppur Exporters Association, (TEA), Tiruppur
• Karur Textile Manufacturer Exporters’ Association, (KTMEA), Karur
• Tamil Nadu Spinning Mills Association (TASMA), Dindigul
• The South India Spinners Association (SISPA), Coimbatore
• The Recycled Textile Federation, (RTF), Coimbatore
• Indian Texpreneurs Association (ITF), Coimbatore
• Open End Spinning Mills Association (OSMA), Coimbatore
• Dyers Association of Tiruppur (DAT), Tiruppur
• Rajapalayam Spinners Forum (RSF), Rajapalayam
