Tamil Nadu’s Budget 2026–27 has received a positive response from the state’s textile and export industry, with exporters and industry associations welcoming its strong focus on industrial growth, export promotion, infrastructure, innovation and skill development. At the same time, they urged the state government to introduce additional measures to address workforce and sector-specific challenges.
Dr. A. Sakthivel, Chairman of the Apparel Export Promotion Council (AEPC), welcomed the announcement of a new industrial policy and praised the allocation of ₹10 crore for the Tirupur Textile Technology Centre. He said the centre would support technology upgradation, innovation, skill development and sustainable garment manufacturing, further strengthening Tirupur’s position as India’s leading knitwear export hub.
However, Dr. Sakthivel stressed that the expected growth in exports following India’s Free Trade Agreements with 38 countries would significantly increase manpower requirements. He reiterated AEPC’s request for a comprehensive worker housing and hostel scheme, proposing a 50% capital subsidy along with the remaining 50% as loan assistance carrying a 5% interest subsidy to enable industries to develop affordable accommodation for migrant workers.
Exporters also appreciated the budget’s emphasis on artificial intelligence, innovation, youth empowerment and infrastructure development, describing them as important drivers for enhancing Tamil Nadu’s global competitiveness.
Representing the Tirupur Exporters’ Association (TEA), Kumar Duraiswamy urged the government to convert the earlier ₹200 crore interest-free loan provided for Zero Liquid Discharge (ZLD) systems into a full subsidy. He highlighted Tirupur’s pioneering role in implementing ZLD technology and maintaining high environmental compliance standards.
The textile sector also welcomed the budgetary allocation of ₹1,678 crore for handlooms and textiles and ₹2,022 crore for labour welfare and skill development, stating that these investments would strengthen the entire textile value chain.
Southern India Mills Association (SIMA) Chairman Durai Palanisamy praised initiatives such as the Technical Textiles Transformation Scheme, the establishment of the Tamil Nadu Institute of Designs, and the loom modernisation scheme. SIMA also welcomed funding for new SIPCOT industrial parks, the women entrepreneurs’ empowerment programme, the new industrial policy, and TN Single Window 3.0, which aims to accelerate industrial approvals while supporting emerging technologies and AI-driven industries.
Meanwhile, Open and Spinning Mills Association (OSMA) President G. Arulmozhi appreciated the government’s infrastructure investments, including ₹3,200 crore for SIPCOT industrial parks, ₹1,543 crore for 178 substations, ₹4,000 crore for the Coimbatore–Ariyalur industrial corridor, and ₹6,884 crore for the Green Energy Corridor. However, he noted that the industry’s long-pending demand for reducing fixed charges on LT, CT and HT power connections had not been addressed in the budget.
Overall, industry leaders said the Tamil Nadu Budget 2026–27 provides a strong platform for industrial expansion and export growth, while emphasizing the need for targeted policy support such as worker housing, power tariff relief and sector-focused initiatives to sustain the state’s leadership in textiles and apparel exports.
