Industry News

India's textile industry needs to move beyond capacity expansion and focus on higher-value products, automation and diversification to strengthen its global competitiveness, according to Southern India Mills' Association (SIMA) chairman Durai Palanisamy. He said investment across man-made fibres, technical textiles and recycled products would help the industry make better use of emerging export opportunities.

Although India's textile sector has traditionally been built around natural fibres, particularly cotton, changes in global demand call for a stronger presence across the value chain, Palanisamy said in a statement issued after SIMA's annual general meeting in Coimbatore on September 22.

He urged manufacturers to improve productivity through advanced technology and innovation while expanding into sustainable and value-added products. Market diversification would also help the industry benefit from opportunities arising from India's free trade agreements, he said.

Volatile cotton prices remain a constraint for mills considering such investments. Cotton accounts for around 65-70 per cent of yarn manufacturing costs, according to Palanisamy. He called for measures to curb speculation in raw material prices and urged the government to consider permanently removing the 11 per cent cotton import duty. He also proposed changing the Cotton Corporation of India's role to place greater emphasis on maintaining price stability.

Palanisamy welcomed recent policy measures affecting the sector, including changes to quality control orders, revisions to the production-linked incentive scheme and export support. He said sustained attention to raw material costs, technology and product development would be important for the industry's next phase of growth.

Palanisamy, executive director of Pallava Textiles, was unanimously re-elected SIMA chairman for 2026-27 at the association's 67th annual general meeting. S Krishnakumar was re-elected deputy chairman and K Sivaraj vice-chairman.