The Global Investment Meet (GIM) may turn into a bonanza for one of Tamil Nadu’s most prominent and labour intensive sectors, in terms of new projects in all the right places. The textiles and apparel sector of the state is likely to get a cumulative investment of Rs 4,500 crores and these investments would primarily be higher up the value chain. The investments, it is believed would give a significant boost in terms of employment generation and stimulus to ancillary industries. Tamil Nadu has long been a textile hub, however, its strength has laid in the extensive spinning industry, which comprises of almost 40 per cent of India’s spinning capacity.
As Manickam Ramaswami of Loyal Textiles, one of the largest textile companies in India says that the bulk of this investment is likely to come in the garment and the apparels sector because that is where the opportunity is. He added that they themselves were signing MoUs for investment worth Rs 150-220 crores at the GIM.
Industry experts state that if this is the case with investment, it would greatly benefit Tamil Nadu and the state’s workers. New projects higher up the value chain would also strengthen the sector, which already has elements of the whole textile value chain from cotton to garment making. These new projects could also help soak up the slack in demand for yarn due to China’s burning out.
