April20 , 2026

    Tamil Nadu government set to launch new textile policy with focus on modernisation

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    The Tamil Nadu government is poised to unveil a comprehensive textile policy tailored to address key issues plaguing the state’s textile and apparel sector.

    A senior official from the Department of Handlooms, Handicrafts, Textiles, and Khadi confirmed that the policy is in its final drafting stages, with discussions held in Chennai recently with industry stakeholders to fine-tune the details.

    The upcoming policy will build on the 2019 textile policy, aiming to make it more responsive to today’s industry demands. “It will certainly address the current issues faced by the industry,” the official emphasised, noting that this policy seeks to enhance the state’s textile ecosystem.

    Industry leaders participating in the discussions highlighted an excess production capacity across Tamil Nadu’s textile value chain, underscoring the need for a shift in policy focus towards modernising existing units.

    This modernisation push would involve upgrading traditional powerlooms with newer, more efficient machines or retrofitting current equipment to boost productivity and competitiveness.

    Additionally, sector representatives stressed the importance of addressing environmental concerns, specifically the challenges faced by Common Effluent Treatment Plants (CETPs) in managing and disposing of sludge generated during wastewater treatment.

    A significant area of concern among industry stakeholders is the recent hike in electricity tariffs. The Southern India Mills Association (SIMA) has announced plans to conduct an impact assessment, evaluating the social and economic ramifications of the increased costs.

    The association intends to submit a report to the government, seeking measures to mitigate the financial strain on textile mills, many of which are already facing heightened production costs.

    With its emphasis on sustainability and innovation, Tamil Nadu’s forthcoming textile policy is expected to reinforce the state’s position as a leading textile hub in India while addressing industry challenges through modernisation.

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