Tamil Nadu tops in overall textile exports from India. Second is Gujarat, which has prominent textile hubs like Surat, Ahmedabad and Vapi, and third is Maharashtra with hubs like Mumbai, Ichalkaranji, Solapur and Bhiwandi.
However all 29 states and seven union territories are known for their own strength and specialization in textile and clothing. Among the 1,399 operational textile mills, 752 were in Tamil Nadu, followed by Maharashtra (135) and Andhra Pradesh (112).
Under the Amended Technology Upgradation Fund Scheme (ATUFS), launched last year, there are benefits in terms of a one time capital subsidy of 15 per cent for the garmenting and technical textiles segments with a cap of Rs 30 crores.
Besides, there is a 10 per cent capital subsidy for segments like weaving, processing, jute, silk and handlooms with a subsidy cap of Rs 20 crores for setting up new textile units or for expansion of existing units with benchmarked technology.
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 3 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.