Tamil Nadu Chief Minister M.K. Stalin has announced a 20% capital subsidy for the purchase of advanced textile and garment machinery, as part of the State Government’s efforts to strengthen its textile industry. The scheme will have an annual allocation of Rs. 30 crore (US $ 3.26 million).
Stalin made the announcement while addressing the International Textile Conference at the CODISSIA Trade Fair Complex in Coimbatore via video conferencing. He highlighted Tamil Nadu’s position as India’s second-largest economy and emphasised the State’s commitment to inclusive growth.
The Chief Minister noted that the textile sector in Tamil Nadu has recorded rapid growth, comparable to other key industries such as automobiles, information technology and footwear manufacturing. “Tamil Nadu has been India’s largest exporter of readymade garments for the past five years, contributing 33% of the nation’s total textile trade,” he said, adding that the sector directly employs 31 lakh workers, of whom over 60% are women, underscoring its role in women’s empowerment.
Recalling the creation of a dedicated Department of Textiles, Stalin congratulated Minister for Handlooms and Textiles R. Gandhi and officials for their efforts in positioning Tamil Nadu’s textile industry on the global stage. He also outlined proactive measures to mitigate challenges arising from the 50% tariff imposed by the United States, including exploring alternative markets and urging the Union Government to remove the 11% import duty on cotton.
The Chief Minister expressed confidence that the conference would attract international investments, particularly in the context of India-European Union trade agreements. He added that previous textile conferences held in Coimbatore, Madurai and Thoothukudi had resulted in investments worth Rs. 9,764 crore (US $ 1.06 billion), while the current event is expected to see the signing of 55 MoUs valued at Rs. 915 crore (US $ 99.48 million).
In announcing the 20% capital subsidy, Stalin said it would support the purchase of state-of-the-art weaving and knitting machinery, aiming to enhance productivity and competitiveness. He concluded by inviting global entrepreneurs to invest in Tamil Nadu, citing the State’s world-class infrastructure and conducive investment climate, and wished the conference success.
