A delegation comprising 16 textile associations representing the entire textile value chain, led by Rajkumar, Former Chairman of the Confederation of Indian Textile Industry (CITI) and Southern India Mills’ Association (SIMA), and Vice-Chairman of the South India Textile Research Association (SITRA), met MK Stalin, Chief Minister of Tamil Nadu, on 6 February 2026 to thank him for the unique and proactive policy interventions undertaken by his government.
In a letter submitted to the Chief Minister, the associations expressed their gratitude for the creation of a separate department exclusively for textiles—the first of its kind in India—to promote modernization, sustainability, and global competitiveness in the sector, with a focus on technical textiles, spinning, and garmenting. The letter conveyed appreciation on behalf of the entire textile value chain.
The major Tamil Nadu textile policy reforms highlighted in the letter include:
- Removal of the 1% market committee cess on seed cotton, cotton waste, and cotton lint that had prevailed since 1959, and advising the CCI to commence depot sales to benefit small and medium spinning mills in Tamil Nadu.
- Implementation of the PM MITRA Park at Virudhunagar, one of the seven parks approved by the Ministry of Textiles.
- Inclusion of machinery in addition to infrastructure in the mini textile park scheme, making it investment-friendly and attracting significant investment.
- Launching a sustainable cotton mission to increase cotton production and productivity in the state.
- Announcement of a mega Viscose Staple Fibre production factory near Tuticorin to strengthen the competitiveness of the Viscose Staple Fibre value chain, which accounts for 70% of viscose staple fibre consumption in Tamil Nadu.
The delegation also thanked Deputy Chief Minister Udhayanidhi Stalin for the release of the Tamil Nadu New Integrated Textile Policy 2025-26 on 29 January 2026 at Coimbatore.
The letter outlined the unique benefits extended under the policy, including:
- 6% interest subvention for all spinning machines.
- 20% capital subsidy for 1,000 looms to modernize as shuttleless looms with electronic jacquard.
- 50% capital subsidy to upgrade 3,000 powerlooms as raiper shuttleless looms.
- 5–25% subsidy for the establishment of worksheds for shuttleless looms in powerloom clusters.
- 25% capital investment subsidy to set up new textile processing units (dyeing, printing, and finishing) and IETPs, and 25% for expansion, modernization, or upgradation of existing units.
- 25% capital investment subsidy for setting up manufacturing facilities for non-conventional fibres/yarns such as banana, water hyacinth, bamboo, hemp, flax, pineapple fibre, etc.
- Allocation of Rs 15 crore to accelerate growth and promote diversification into technical textiles, and Rs 25 crore for research and business development for technical textiles and man-made fibres.
- 50% capital investment subsidy for purchasing brand-new fully computerized cutting machines with CAD/CAM software.
The associations also appreciated power-related reforms, including:
- Continuation of the annual banking facility for wind power generation to enhance the performance of the Tamil Nadu textile industry.
- Permission to continue operating old windmills of 20 years and above with the annual banking facility.
- Increase in free electricity units from 200 to 300 units for the handloom sector and from 750 to 1,000 units for the powerloom sector.
- Waiver of peak-hour charges for LT (low-tension) industrial consumers and a 50% concession in network charges for LT consumers with rooftop solar.
The delegation noted that these reforms benefited the Tamil Nadu textile industry through persistent engagement with the Government of India, the Ministry of Textiles, and Members of Parliament. Specific interventions included:
- Complete withdrawal of the 11% import duty on long-staple cotton, along with duty exemptions on other cotton varieties during April–October 2022 and August–December 2025.
- Withdrawal of Quality Control Order (QCO) regulations on man-made fibre, filaments, and yarns.
- Reduction of GST on man-made fibre from 18% to 5%, and on MMF yarn from 12% to 5%.
- Provision of financial assistance and relief measures during COVID and economic slowdowns, including periods affected by 50% US tariffs.
On behalf of the entire textile industry, the 16 associations expressed their thanks to the Chief Minister for implementing these historic and landmark initiatives.
The 16 associations represented in the delegation were:
- Confederation of Indian Textile Industry (CITI), Delhi
- Cotton Textiles Export Promotion Council (TEXPROCIL), Mumbai
- Manmade and Technical Textiles Export Promotion Council (MATEXIL), Mumbai
- Powerloom Development & Export Promotion Council (PDEXCIL), Mumbai
- Southern India Mills’ Association (SIMA), Coimbatore
- South India Textile Research Association (SITRA), Coimbatore
- 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
- South India Spinners Association (SISPA), Coimbatore
- 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
