India's textile and apparel sector must transition from traditional capacity-led expansion toward advanced automation, technical textiles, and diversified man-made fibre segments to secure global market share. Durai Palanisamy, Chairman, Southern India Mills' Association (SIMA) emphasized, regional spinning and weaving enterprises need to embrace high-margin product categories. Industry stakeholders note, upgrading production lines to incorporate sustainable materials and technical textiles is essential for mitigating risks associated with stagnant commoditized pricing and fierce international competition.

Confronting supply chain realities and cost pressures

Raw material volatility continues to squeeze manufacturing margins, with raw cotton accounting for up to 70 per cent of total yarn production expenses. Highlighting ongoing procurement hurdles, industry leaders have urged authorities to permanently eliminate the import tariff on raw cotton and establish a domestic reserve-management framework modeled on international inventory reserves. Securing predictable input costs and leveraging modernized automation are non-negotiable for safeguarding factory floors against external trade shocks, states Ramesh Menon, Industrial Trade Analyst. Recent adjustments in export tariffs and strategic trade agreements have provided slight relief, yet mill operators stress that comprehensive structural reforms remain vital for long-term export viability.

Enhancing competitiveness with sustainable fiber adoption

Founded in 1933, the Southern India Mills Association represents spinning, weaving, and textile manufacturing enterprises across southern India, with a heavy concentration in Tamil Nadu. The organization champions technological modernization, workforce skill development, sustainable fiber adoption, and trade policy reforms to enhance the global competitiveness of regional manufacturers.