Tamil Nadu is in the process of drafting a new textile policy. Textile units want improved infrastructure for weaving and processing capabilities. Competing states like Gujarat have built strong capacities in yarn spinning through state-sponsored subsidies to build factories.

The state’s textile units are seeking subsidies for companies venturing into weaving and processing units, which are areas in apparel-making that lead to value addition as well as higher margins for businesses. Incidentally weaving and processing are weak spots in the Tamil Nadu apparel supply chain, which need to be addressed.

In Tamil Nadu, weaving clusters like Salem still run on obsolete technologies involving power looms, which have been surpassed by automatic looms manufactured by Sulzer. The latest advancement is in air jet loom, which constitutes only a tenth of the looms used in Tamil Nadu, while there has been higher adoption of such looms in other states. Mill owners in Tamil Nadu want a policy specific to manufacturing competitiveness in the spinning sector in order to compete with the kind of factories coming up in Gujarat.

Production of Tamil Nadu textile manufacturers is expected to reach Rs 75,000 crores by 2020. Right now it’s Rs 50,000 crores. A textile policy will help sustain as well as improve the existing production units in the state. Technology in manufacturing units will improve and make them more energy efficient.