The Indian textile industry is entering a new phase of transformation, with diversification, technology adoption, sustainability and value addition set to be the key drivers of long-term global competitiveness, the Southern India Mills’ Association (SIMA) said.

While India has traditionally been built around natural fibres, particularly cotton, the rapidly evolving global market demands a stronger presence across the entire textile value chain, including man-made fibres (MMF), technical textiles, recycled fibres, sustainable products and value-added products 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 also on producing high-value products with greater efficiency through innovation, productivity enhancement, advanced technology, sustainability and market diversification.

These measures will enable the industry to maximise the emerging opportunities arising from India’s Free Trade Agreements (FTAs), SIMA said.

In a press release issued on Tuesday, the re-elected Chairman of SIMA, Durai Palanisamy, expressed his gratitude to the NDA Government for giving high priority to the textile industry by announcing several growth-oriented policies, including:

  • Rationalisation of GST across the textile value chain.
  • Withdrawal of Quality Control Orders (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 the export obligation period under the Advance Authorisation Scheme.
  • Launch of the Mission for Cotton Productivity.
  • Revision of 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, restoration of RoDTEP and extension of RoSCTL.
  • Temporary exemption of cotton from the 11% import duty.
  • Reduction of the punitive U.S. tariff from 50% to 18%.
  • Reduction of the 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 by providing fully collateral-free additional credit of up to 20% of peak working capital, subject to a maximum of ₹100 crore per borrower, with a tenure of up to five years until March 31, 2027, and a one-year moratorium on principal repayment.
  • Withdrawal of the proposed 3.48% power tariff increase in Tamil Nadu.

Durai Palanisamy further appealed to the Government to address the growing volatility in cotton prices, as cotton accounts for around 65–70% of yarn manufacturing costs.

He emphasised that curbing speculation in 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:

  1. Permanently remove the 11% import duty on all varieties of cotton with immediate effect to curb the import-parity pricing policy adopted by multinational cotton traders and the Cotton Corporation of India (CCI).
  2. Consider changing the role of CCI on the lines of the China National Cotton Reserves Corporation, which maintains more than a year’s stock and seeks to maintain stability in cotton prices.

Earlier, at the 67th Annual General Meeting of SIMA held at its premises in Coimbatore on September 22, 2026, Durai Palanisamy, Executive Director of Pallava Textiles, Erode, was unanimously re-elected as Chairman for the year 2026–27.

He holds an MBA in International Business from Southern New Hampshire University and a Bachelor of Technology in Textile Technology from PSG College of Technology. He is the Vice-President of the CII, Erode Zone, and is also a member of the Committee of Administration of the Manmade and Technical Textiles Export Promotion Council (MATEXIL).

Krishnakumar, Managing Director of Sulochana Cotton Spinning Mills, Tiruppur, was unanimously re-elected as Deputy Chairman for the year 2026–27.

He holds a B.A. in Psychology from PSG Arts College, Coimbatore, and entered the business in the late 1980s. Focusing on sustainable fashion, his company primarily converts used PET bottles into recycled yarns and fabrics. He also heads the newly formed Tiruppur Yarn Manufacturers’ Association.

Sivaraj, Managing Director of Sivaraj Spinning Mills, Dindigul, was unanimously re-elected as Vice-Chairman for the year 2026–27.

He holds a B.Tech. in Textiles from the U.S. and entered the business in the late 1990s. Sivaraj Spinning Mills is a leading player in the domestic market, with a four-product portfolio comprising yarn, woven fabric, knitted fabric and readymade garments, while strategically focusing on transforming traditional manufacturing into modern retail branding.