The Government of Tamil Nadu has earmarked Rs 1,943 crore (US $ 214 million) for the handlooms and textiles sector in its Interim Budget presented on 17th February, signalling continued policy backing for one of the state’s most significant industries.
Presenting the Budget, Finance Minister Thangam Thennarasu also announced an equal allocation of Rs 1,943 crore (US $ 214 million) for micro, small and medium enterprises (MSMEs), alongside Rs 4,282 crore (US $ 472 million) for the industries sector. Industry representatives noted that these broader allocations are also expected to benefit the textile value chain.
In a statement, The Southern India Mills Association (SIMA) welcomed the measures. Its Chairman, Durai Palanisamy, expressed appreciation to Chief Minister M. K. Stalin for extending substantial support towards implementing policy initiatives under the Integrated Textile Policy, with a focus on modernisation, infrastructure development and employment generation.
Palanisamy further welcomed the allocation of Rs 6 crore (US $ 661,000) for the establishment of an Advanced Quality Testing Laboratory at the South India Textile Research Association (SITRA) in Coimbatore. He stated that the facility would strengthen the state’s capabilities in athleisure and technical textiles manufacturing.
He also noted that adequate funding had been provided for the creation of Handloom Parks, the modernisation of powerlooms, installation of shuttleless looms and measures to attract fresh investment in processing, technical textiles and garmenting.
The SIMA Chairman additionally welcomed the proposed rollout of a New Integrated Renewable Energy Policy, backed by a budget allocation of Rs 18,091 crore (US $ 1.99 billion), stating that enhanced renewable capacity would support the energy-intensive textile sector.
The state government has, in recent years, implemented a series of strategic policy measures aimed at enhancing the global competitiveness of its textile industry, which accounts for roughly one-third of India’s total textile business. Officials view the sector as central to Tamil Nadu’s ambition of achieving a US $ 1 trillion economy by 2031.
Separately, Deputy Chief Minister Udhayanidhi Stalin unveiled the Tamil Nadu Integrated Textile Policy 2025–26 on 29th January at the inaugural session of the International Textile Summit 360, a two-day event organised by the state government in Coimbatore.
