The Textile Industry of Tamil Nadu has a significant presence in the National and State economy. Vellore Collector R. Nanthagopal in response to the long pending demand from the people’ representative and textile industy of Gudiyatham has directed the official explore the possibility of establishing a textile park in Gudiyatham.

Feasibility study will be soon conducted in Gudiyatham to set up textile park which will give to boost the growth of textile sector.

Other than these, there were two cotton mills running in Gudiyatham. One is Thirumagal Mills Limited and other one is Rajeshwari Mills Limited; but now it has been closed.

Textile mills are concentrated in Sholinger, Gudiyatham , Kaveripakkam, and Arakkonam blocks and are manufacturing Cotton Lungi, Cotton Cloth, Towel, Dhoti and Silk sarees. These traditional units are clustered in Gudiyatham, Sholinghur and Arakkonam blocks. There are 1200 textile based enterprises in this district.

Lungi is traditional handloom item manufactured here are exported to many parts of India and to markets like Singapore, Malaysia and Middle East Countries.

The principal handloom production centers for lungi production are Bhuvangiri, Naduveerapatti, Kurinchipadi, kadayanallur, Anakaputher, Gudiyatham in Tamil Nadu