Tamil Nadu, one of the leading states having a large share in India’s textile and apparel industry has come up with its budget for the fiscal year 2024-25 and it has some good announcements for the textile industry.
The State Government has increased the special capacity subsidy from 15 per cent to 25 per cent for technical textiles, MMF yarn produced from recycled products, MMF fabric and apparel manufacturing in Tamil Nadu.
There will be 6 per cent interest subsidy for modernisation of the spinning segment with a budget outlay of Rs. 500 crore, which is an attractive announcement when the spinning segment is passing through an unprecedented crisis.
Earlier the Government had extended a 2 per cent interest subsidy for spinning modernisation that has been now increased to 6 per cent. Tamil Nadu is the first state to announce a 6 per cent interest subsidy for modernisation in the country. It will bring down capital cost and encourage the spinning segment to modernise old machines.
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It is pertinent to mention here that the Tamil Nadu accounts 1/3rd of the textile business size, 45 per cent of the spinning capacity, 10 per cent of the handloom capacity. The state textile industry is of the view that Tamil Nadu has been losing its competitive advantage due to attractive textile policies of different States like Gujarat, Maharashtra, Madhya Pradesh, etc., in the country.
The Government announced that the existing textile park in Virudhunagar district will be developed at a cost of Rs. 1,683 crore while a new Integrated textile park spanning over 111 acres of land will be developed in Salem.
The anticipated investment for the park coming up in Salem was announced to stand at Rs. 800 crore. Both the textile parks combined will create 2 lakh jobs.
A 10 per cent payroll subsidy extended for new units employing 500 or more women, physically challenged and transgender people of Tamil Nadu domicile would give enormous job opportunities for the people of Tamil Nadu. The Government has set a vision of generating additional 100 billion units of renewable energy by 2030
Tamil Nadu will also conduct a global start-up summit during January 2025 to attract the eyes of global investors and also provide opportunities for boosting exports.
Dr. S.K.Sundararaman, Chairman, The Southern India Mills’ Association (SIMA) appreciated the budget and said that it will help the industry to grow further.
Bharat Tex Special Report 2026 
