Tamil Nadu eyes Rs 1,000 cr investments in technical textiles by 2030

Tamil Nadu is launching an initiative to secure Rs 1,000 crore in investments within the technical textiles segment by 2030. Spearheaded by the state’s Department of Handlooms, Textiles, Khadi, and Handicrafts, this initiative marks a departure from traditional cotton-centric manufacturing toward high-value, functional applications. With the state currently contributing roughly one-third of India’s textile business, the government is incentivizing Micro, Small, and Medium Enterprises (MSMEs) to diversify into specialized products tailored for the automotive, healthcare, sports, agriculture, and construction sectors.

Recent developments underscore this momentum, as firms have already formalized MoUs worth Rs 123 crore. TN Venkatesh, Principal Secretary points out, the state is planning to establish at least five industrial units across four major regions over the next three years, complemented by a dedicated Centre of Excellence for athleisure products. Industry experts, including Durai Palanisamy, Chairperson, Southern India Mills Association (SIMA), have suggested, transitioning current interest subvention schemes into 15 per cent capital subsidies could further accelerate this shift.

As Tamil Nadu aims to capture a larger share of the national export target, currently set at $21 billion the focus on man-made fiber and technical applications is expected to give the necessary margin resilience in a competitive global apparel market.  A dominant force in India’s textile ecosystem, Tamil Nadu leads in cotton yarn, spinning, and garment production. Its growth strategy now focuses on diversifying into technical textiles and man-made fibers to achieve a $1 trillion economy by 2031, supported by the New Integrated Textile Policy 2025-26 and infrastructure initiatives.