Tamil Nadu Chief Minister M.K. Stalin has announced a 20 percent capital subsidy for textile companies purchasing state‑of‑the‑art machinery, as part of efforts to strengthen the competitiveness of the state’s textile industry.
The announcement came during the International Textile Industry Conference held at the Coimbatore Kodisila campus, which the Chief Minister inaugurated via video link from Chennai.
Under the new incentive, textile units will receive a subsidy equal to 20 percent of the cost of advanced machinery they procure. To support consistent implementation, the state government has earmarked an annual allocation of ₹30 crore for the programme. The move aims to encourage modernisation and productivity improvements within the sector, which is a key contributor to Tamil Nadu’s industrial output and export earnings.
Stalin reiterated that the DMK government is actively pursuing measures to upgrade the textile industry, which employs millions of workers and forms the backbone of many local economies across the state. The subsidy is expected to help smaller and medium‑sized enterprises adopt newer technology, enhance quality standards, and remain competitive in both domestic and global markets.
Industry representatives welcomed the announcement, saying access to subsidised machinery could reduce costs and spur investments in automation and advanced production lines. Officials noted that such support is especially timely as units face challenges related to rising input costs and global competition.