Briefing Document: Tamil Nadu New Integrated Textile Policy 2019
Date: October 26, 2023
Source: Excerpts from "Tamil Nadu New Integrated Textile Policy 2019.pdf"
Prepared for: Stakeholders in Tamil Nadu Textile Industry, Government Officials, Potential Investors
Executive Summary
The Tamil Nadu New Integrated Textile Policy 2019 outlines the state government's strategic vision and comprehensive objectives to sustain and enhance Tamil Nadu's leadership in India's textile industry. It responds to challenges such as obsolete technology, skill gaps, and environmental concerns, while offering targeted incentives across the textile value chain. The policy emphasizes inclusivity, investment promotion, and export growth.
Main Themes and Key Highlights
- Sustaining Tamil Nadu’s Leadership: Tamil Nadu contributes significantly to national textile output—46% spinning capacity, 60% yarn export, employing 31 lakh people. The policy aims to maintain this leadership.
- Need for Policy Renewal: The previous 1998 policy was outdated. The new policy responds to global trade shifts and competing state incentives, aligning with Vision 2023 to target 14% growth in manufacturing.
- Objectives:
- Promote full value chain from fibre to fashion
- Encourage cotton productivity
- Promote modern, green technology
- Double textile exports and foster technical textiles
- Focus Areas: Design development, green processing sector, decentralized garmenting, technical textiles, skill training, and handloom preservation.
- Sector-Specific Incentives:
- Spinning: 2% interest subvention for modernization
- Handloom: Free electricity, GI registration, Handloom Mark, Silk Parks
- Power Loom: Credit-linked capital subsidy, insurance, welfare schemes
- Processing: 15% subsidy for ZLD infrastructure, IPDS support
- Knitting & Garmenting: 15% investment subsidy, SPELSGU support
- Technical Textiles: 15% subsidy, SITP grants, 100% stamp duty exemption
- Textile Parks: SITP support, 50% stamp duty exemption
- Standard Incentives: Capital subsidies, tax/stamp duty exemptions under Industrial and MSME policies.
- Southern District Package: 5% extra capital subsidy, 100% stamp duty waiver, land facilitation by SIPCOT for eligible projects.
- Skill Development: Industrial collaboration for training, TNSDC alignment, curriculum support, and women’s employment focus.
- Single Window Clearance: Fast-track approvals under the TN Business Facilitation Act, with district and state committees.
- State Textile Advisory Committee: Minister-led, representing all sub-sectors, meets periodically to steer policy implementation.
- Supporting Infrastructure: Subsidies for energy/water audits, innovation, hostels, and ESI facilities in clusters.
- Labour Welfare: Coordination with the Labour Department to address concerns within legal provisions.
- GST Optimization: State will work to ensure favorable outcomes from GST reforms for the textile sector.
- Export Promotion: Branding, district export strategies, export cluster development, international textile fair support, and creation of an Export Promotion Fund.
- FDI Facilitation: Full support for FDI with 100% automatic route and policy incentives applicable to foreign-invested units.
Conclusion
The Tamil Nadu New Integrated Textile Policy 2019 provides a future-ready framework to boost the state’s textile industry through modernization, skill-building, and sustainable practices. It aims to cement Tamil Nadu’s leadership position while making it globally competitive and environmentally responsible.
📌 Frequently Asked Questions
1. What is the primary goal of the Tamil Nadu New Integrated Textile Policy 2019?
To sustain Tamil Nadu's leadership in the Indian textile industry and achieve sustainable growth across the entire value chain, focusing on inclusive regional development.
2. Why was a new textile policy necessary in 2019, replacing the 1998 policy?
The 1998 policy was outdated and broad. The new policy addresses global trade changes and offers dynamic incentives aligned with Vision 2023.
3. What are the key focus areas of intervention outlined in the 2019 policy?
Design development, eco-friendly processing, decentralized garmenting clusters, technical textiles, skill development, and handloom sector preservation.
4. What specific incentives are being offered to modernize the spinning sector?
A 2% interest subvention for upgrading machinery installed at least 15 years ago, to improve productivity and reduce costs.
5. How does the new policy support the handloom sector?
Incentives include free electricity, government scheme linkages, GI registration, Handloom Mark, Silk Parks, infrastructure support, insurance, and credit schemes.
6. What measures are being taken to enhance the power loom sector?
Subsidies for shuttle-less looms, free electricity, PowerTex India support, infrastructure aid, skill development, insurance, and welfare assistance.
7. How does the government address challenges in the processing sector?
Focus on environmental compliance through ZLD infrastructure subsidies, processing park support, R&D in effluent management, and cluster development in backward districts.
8. What steps are being taken to promote investment, exports, and skill development?
Capital subsidies, single-window clearances, export cluster development, international fairs, skill mission alignment, women-centric skilling, and FDI facilitation through an FDI Cell.
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