The infrastructure facilities in Tiruppur will be upgraded in multiple phases to promote environmentally sustainable textile production
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The Tamil Nadu government has announced a series of initiatives to strengthen the state’s textile and apparel ecosystem, including the establishment of a Tamil Nadu Institute of Design, the creation of a Tiruppur Textiles Technology Centre (TTTC) with an investment of ₹10 crore, and a new scheme to promote technical textiles.The announcements were made in the State Budget for 2026-27, which also allocated ₹1,678 crore to the Handlooms, Handicrafts, Textiles, and Khadi Department in the revised estimates.Design InstituteThe proposed Tamil Nadu Institute of Design will be established as an institution of state importance, with active participation from industry and academia. A detailed project report will be prepared for the institute, Finance Minister N. Marie Wilson said in the budget announcement.“Despite Tamil Nadu being one of India’s largest hubs for textiles, apparel, handlooms, handicrafts, and manufacturing, it lacks a dedicated institution that integrates design education, innovation, research, product development, and entrepreneurship for these sectors,” he said.The government stated that Tamil Nadu’s contribution to technical textiles remains relatively low, despite being one of the country’s leading textile-producing States. This is mainly due to limited awareness and inadequate access to advanced technologies and international expertise.To tap into the growing opportunities in technical textiles, the government will launch the Technical Textiles Transformation Scheme for Entrepreneurs under the Tamil Nadu Technical Textiles Mission. This initiative will be implemented in collaboration with international educational and research institutions to help entrepreneurs, micro, small, and medium enterprises (MSMEs), and textile manufacturers diversify into technical textiles. It will provide international exposure, technical training, technology transfer, market intelligence, innovation support, and business mentorship, he said.The infrastructure facilities in Tiruppur will be upgraded in multiple phases to promote environmentally sustainable textile production. For this purpose, the TTTC will be established with a financial outlay of ₹10 crore, he said.Industry BoostThe Tiruppur Exporters Association said the government's initiatives would strengthen the competitiveness of Tiruppur’s knitwear and textile industry. At the same time, the association expressed confidence that the state government would favourably consider the long-pending demands of the Tiruppur knitwear industry, including the formation of the Knitwear Board, the conversion of the ₹200 crore loan extended to Common Effluent Treatment Plants for dyeing units into a subsidy, and the establishment of a regional office/procurement centre of the Cotton Corporation of India in the State.The Budget’s initiatives for the textile sector, including the proposed Tamil Nadu Institute of Design, the Technical Textiles Transformation Scheme and the upgradation of infrastructure at Tiruppur, will further strengthen innovation, value addition and the global competitiveness of one of the State’s most important manufacturing sectors, said A. Viswanathan, President, The Madras Chamber of Commerce & Industry.The Government of Tamil Nadu has been taking numerous policy initiatives and extending benefits to strengthen the global competitiveness of the Tamil Nadu Textile Industry, which accounts for one-third of the country's textile business size. The allocation of ₹1,678 Crore exclusively for Handlooms & Textiles, apart from allocating ₹2,022 Crore for Labour Welfare and Skill Development, would benefit the textile Industry, Durai Palanisamy, Chairman, The Southern India Mills Association.The Open End Spinning Mills Association Tamil Nadu (OSMA) welcomed the government's initiatives to strengthen industrial infrastructure, improve power availability, attract new investments and enhance the competitiveness of the textile industry.However, its president, G. Arulmozhi, said it was disappointing that the long-pending demand of the textile industry to reduce the Fixed Charges for LT & CT and HT electricity service connections has not been addressed in the Budget. The Association hopes that the Government will consider this request at the earliest, as it would significantly reduce operating costs and improve the competitiveness of textile manufacturers, he said.Published on August 5, 2026
