SIMA applauds Tamil Nadu budget 2025-26 that boosts yarn, textile sector

The Southern India Mills Association (SIMA) has welcomed the Tamil Nadu Budget 2025-26, highlighting its strong support for the yarn and textile industry. SIMA chairman S K Sundararaman praised chief minister M K Stalin for allocations aimed at strengthening the sector’s competitiveness.

Tamil Nadu, contributing 45 per cent of India’s spinning capacity, has faced multiple challenges in recent years. The budget addresses these concerns with Rs 30 crore allocated to modernizing powerlooms into shuttleless looms, enhancing yarn consumption and fabric quality. Additionally, Rs 50 crore over five years will support common facility centers with computerized fabric cutting machines, benefiting MSME garment hubs like Tiruppur and Karur.

The budget also earmarks Rs 15 crore for the Tamil Nadu Technical Textile Mission, encouraging mills to diversify into high-value segments, and Rs 20 crore for infrastructure development in powerloom clusters.

Sundararaman lauded the government’s commitment to modernization, stating that these measures would improve yarn demand, increase value addition, and sustain Tamil Nadu’s leadership in textiles. He termed the budget a model for other states, ensuring long-term growth for the industry.