South India Mills’ Association praises Tamil Nadu budget.
The Tamil Nadu textile industry, facing stiff competition from other states, has welcomed several key announcements in the recent state budget that aim to boost its competitiveness and retain its position as the country's leader.
Modernization support: The industry hails the 6 per cent interest subsidy for spinning segment modernization with a budget of Rs 500 crores, calling it crucial to upgrade the aging machinery (2/3rd over 15 years old) and face future challenges.
Technical textiles & MMF focus: The increase in special capacity subsidy from 15 per cent to 25 per cent for technical textiles, recycled products, and MMF manufacturing is seen as a major push for these growth areas, attracting investments and global brands.
Textile park development: Allocation of funds for Virudhunagar PM MITRA Park (Rs 1683 crores, 2 lakh jobs), Salem Textile Park (Rs 800 crores, 8000 jobs), and 10 mini textile parks (Rs 20 crores) is expected to enhance competitiveness, attract investments, and create rural jobs, especially for women.
Handlooms & handicrafts: The Rs 227 crore integrated complex for exhibition, design, and incubation in Chennai is seen as a significant boost for these sectors.
Employment & skill development: The 10 per cent payroll subsidy for new units employing 500+ women, physically challenged, and transgenders is lauded for creating job opportunities. International skill development centers, free Wi-Fi in key cities, and IT park development are welcomed for further boosting skilled workforce and attracting businesses.
Sustainability & global reach: The vision for 100 billion units of renewable energy by 2030 and conducting a global start-up summit are seen as positive steps towards sustainability and attracting global investors, potentially boosting exports.
Overall, the Tamil Nadu textile industry views the budget as a positive step towards addressing its challenges and retaining its leadership position. The various initiatives are expected to attract investments, create jobs, and modernize the sector, making it more competitive in the global market.