Tamil Nadu Government is planning to introduce a New Integrated Textile Policy to boost textile industry in the state, which is the capital of knitwear and various textile products. It will give special focus to sunrise sectors like technical textiles besides coming up with a comprehensive strategy to increase textile exports.

Tamil Nadu Deputy Chief Minister and Finance Minister , in his budget speech said that the Government will come up with a new polity to sustain, strengthen and develop handloom, powerloom and knitwear and garment sectors. However, the details of the Policy were not shared.

Meanwhile, in the 2018-19 budget the state has allocated Rs 12.40 billion for Handlooms and Textiles sectors and Rs 2.27 billion for Handicrafts and Khadi sectors.

Tirupur Exporter Association along with other industry associations had requested the state government to provide eight percent interest subsidy and 10 percent capital subsidy, under TUF Scheme in State Textile Policy. Other demands include constitution of knitwear board, incentives for setting up of technical textiles units, effluent treatment plant, dedicated power stations and power tariff subsidy.

The industry also noted that the minimum wages prescribed for apparel sector in Orissa and Telangana states are only Rs 200 per worker whereas in Tamil Nadu, the minimum wages are on higher side and this higher rate leads their garmenting units to become uncompetitive in the market.

Tamil Nadu Textile Policy is pending over a period of time, while other states like Gujarat, Maharashtra, Karnataka, Madhya Pradesh, Andhra Pradesh and Rajasthan including Odisha have announced the policy which attracted many entrepreneurs.