Tamil Nadu, the backbone of India’s textiles and clothing (T&C) industry, accounts for a third of the nation's textile business, including 47 per cent of spinning capacity and 60 per cent of yarn exports. Despite its dominance, the spinning sector faces challenges due to outdated infrastructure, market sluggishness, geopolitical issues, and high logistics costs. Of the 46 million spindles in India, Tamil Nadu houses 19 million, with over 12 million spindles older than 15 years.
To address this, the Government of Tamil Nadu has announced a policy to modernize spinning units. As per Government Order (GO Ms No 166) dated December 9, 2024, spinners can avail a 6 per cent interest subvention for modernizing spinning machines over 15 years old for five years. This initiative aims to revive the spinning segment and boost competitiveness.
SK Sundararaman, Chairman of the Southern India Mills Association (SIMA), expressed gratitude to Chief Minister Thiru MK Stalin and Handlooms & Textiles Minister Thiru R Gandhi for introducing this critical policy. He highlighted the crisis in Tamil Nadu’s textile industry caused by incentives in competing states, market slowdown, and labor shortages. The modernization will enhance productivity, improve yarn quality, and support high-value-added fabric production, strengthening Tamil Nadu’s global competitiveness.
The government has allocated Rs 10 crore for FY 2024-25, with 60 per cent designated for ring frame modernization, 15 per cent for air jet or electro spinning, and 25 per cent for open-end spinning. This allocation will particularly benefit segments producing viscose staple fiber (VSF) and recycled yarn, vital to downstream sectors in Erode and Karur.
The modernization initiative promises to strengthen Tamil Nadu’s textile industry, supporting economic growth and ensuring a level playing field for the State amidst national and international competition.
