Tamil Nadu, long a powerhouse in India's textile industry, has faced challenges maintaining its competitive edge against rival states with more attractive textile policies. However, recent announcements in the state budget aim to rejuvenate its textile sector and uphold its status as a leader in textile and clothing manufacturing nationwide.
S.K. Sundararaman, Chairman of The Southern India Mills’ Association (SIMA), commended the proactive approach of Tamil Nadu's leadership, including Chief Minister Thiru M.K. Stalin, Finance Minister Thiru Thangam Thennarasu, and Handlooms and Textiles Minister Thiru R. Gandhi, for heeding SIMA's suggestions.
Notably, the announcement of 6 per cent interest subsidy for modernizing the spinning segment, with a significant budget allocation of Rs 500 crores, stands out as a crucial measure to revitalize an industry grappling with unprecedented challenges. Sundararaman emphasized the urgency of this subsidy, especially considering that a substantial portion of Tamil Nadu's spinning capacity is over 15 years old.
Additionally, the increase in special capacity subsidies from 15 per cent to 25 per cent for technical textiles and MMF fabric and apparel manufacturing, including recycled products, underscores the state's commitment to fostering innovation and sustainability in line with global demands. This move is expected to not only incentivize local investors but also attract foreign investments, positioning Tamil Nadu as a hub for future-oriented industries.
The budget's focus on infrastructure development, such as the allocation of funds for various textile parks and research centers across different districts, promises to generate employment opportunities, particularly benefiting rural areas and marginalized groups.
Sundararaman praised initiatives like the establishment of integrated complexes and incentives for new units employing physically challenged individuals and transgenders, emphasizing the inclusive approach towards job creation.
Furthermore, the vision to increase renewable energy generation and host a global startup summit reflects Tamil Nadu's commitment to environmental sustainability and economic growth through innovation and international collaboration.
The budget's emphasis on skill development, IT infrastructure, and manufacturing facilities signals a holistic approach towards creating a conducive environment for business growth and job creation across sectors.
In summary, Tamil Nadu's state budget represents a comprehensive strategy to revitalize the textile sector, foster innovation, and create inclusive growth opportunities, positioning the state as a frontrunner in India's economic resurgence.
