The Indian textile and clothing industry has been demonstrating its resilience and growth potential, time and again, marching steadily towards achieving the Government’s ambitious target of USD 350 billion by 2030. Though, the recent U.S. tariff measures have created notable challenges, the industry remains optimistic. Domestic consumption is expected to play a pivotal role in compensating for the temporary dip in exports to the U.S., ensuring steady demand for Indian textiles. Currently, the U.S. accounts for nearly 28% of India’s total textile exports, valued at around USD 11 billion.
The industry is actively working with the Government to explore new market opportunities and diversify its export base. With continued policy support, rationalisation of tax structures and strategic market access initiatives, the industry is confident of sustaining momentum both in domestic and global markets.
In a Press Release issued here today, the newly elected Chairman of The Southern India Mills Association (SIMA), Mr. Durai Palanisamy, Executive Director, Pallava Textiles P Limited has affirmed that with the right mix of innovation, competitiveness and Government support, the textile sector will not only overcome present challenges but also emerge stronger, playing a key role in India’s journey towards becoming a global textile powerhouse.
Mr. Durai has thanked the NDA Government headed by the Hon’ble Prime Minister, Shri. Narendra Modi ji for the path breaking initiatives, concentrating on addressing the structural issues affecting the survival of the industry. Appreciable initiatives include the following:
• Removal of 11% import duty on cotton till December 2025
• Implementation of “Mission for Cotton Productivity” by allocating Rs. 5,900 crores
• Slotting the entire textile value chain in 5% slab irrespective of the fibre used.
• Reduction of GST on Man made fibres and yarns from 18%,12% to 5%
• Addressing the inverted duty structure that prevailed under the GST Law.
• Providing a refund mechanism of granting 90% of the refund due in 7 days for textile products impacted by inverted duty structure.
• Constitution of a Committee to review the hurdles and examine the bottlenecks in implementing QCOs, impacting the competitiveness of the industry.
• Constitution of Committee on enhancing Cost Competitiveness and Innovation.
SIMA Chairman has stated that the historic and bold tax reform, GST 2.0, aimed at furthering the vision of “Atma Nirbhar Bharat,” would undoubtedly expand the scale of the textile industry. The accumulation of GST at 18% on textile machinery continues to be a significant burden for the highly capital-intensive textile industry, severely impacting working capital and new investments in the absence of the Technology Upgradation Scheme since 2022 due to high interest rate; resolving this accumulation issue, along with addressing the challenges arising from the implementation of QCOs on MMF and its products, are critical to enhance the industry’s competitiveness; and such measures would pave the way for sustained growth and enable the Indian textile industry to secure a larger share of the global market, Mr Durai says.
Towards this end, the newly elected Chairman has urged the next-generation industry leaders to explore emerging global markets and focus on manufacturing innovative products using MMF, the engine of growth, given the limited growth in cotton textiles, thereby enhancing indigenous business volumes.
Earlier at the 66th Annual General Meeting of The Southern India Mills’ Association (SIMA), held at SIMA premises, Coimbatore, on 11th September 2025, Mr. Durai Palanisamy, Executive Director, Pallava Textiles P Limited, Erode, has been unanimously elected as the Chairman for the year 2025-26. He holds MBA in International Business from Southern New Hampshire University and Bachelor of Technology in Textile Technology from PSG College of Technology. He is the Vice-President of CII, Erode Zone. He is also in the Committee of Administration of Manmade and Technical Textiles Export Promotion Council (MATEXIL).
Mr. S.Krishnakumar, Managing Director, Sulochana Cotton Spg Mills P Ltd., Tiruppur, has been unanimously elected as the Deputy Chairman for the year 2025-26. He holds B.A. Psychology from P.S.G. Arts College Coimbatore and entered the business in the late 80’s. Focusing on sustainable fashion, his company primarily converts used PET bottles into recycled yarns and fabrics. He also heads the newly formed Tirupur Yarn Manufacturers Association.
Mr. K Sivaraj, Managing Director, Sivaraj Spinning Mills (P) Ltd, Dindigul has been unanimously elected as the Vice-Chairman for the year 2025-26. He holds B.Tech. Textiles from USA and entered the business in the late 90s. Sivaraj Spinning Mills is a leading player in the domestic market across its four-product portfolio, yarn, woven fabric, knitted fabric, and readymade garments while strategically focusing on transforming traditional manufacturing into modern retail branding.
