Ten units will come up at the Cuddalore processing park in Tamil Nadu at an investment of Rs 1000 crores. Once the park is commissioned, it will encourage stitching units to set up shop nearby, triggering more investments in future. The textile sector in Tamil Nadu has production facilities across the textile value chain. Every year Tirupur knitwear units invest approximately Rs 1000 crores toward minor expansion work.

But the garment sector has faced a downward trend over the last couple of years. The subsidy coming from the Technology Upgradation Fund Scheme for power loom units has dwindled. Further, Tamil Nadu has yet to announce a textile policy.

Production of Tamil Nadu textile manufacturers is expected to reach Rs 75,000 crores by 2020. Right now it’s Rs 50,000 crores. Currently India is looking to add around three to 3.5 million spindles a year against an average number of 2.5 million spindles over the past five years. The southern region is expected to contribute to about one million and more spindles every year.

Spinning, handloom, power looms and garments are the four pillars of the textile sector in Tamil Nadu. Among the 1,399 operational Indian textile mills, 752 are in Tamil Nadu.