The Indian textile industry is entering a new phase of transformation, with diversification, technology adoption, sustainability and value addition emerging as key drivers of long-term global competitiveness, according to Mr. Durai Palanisamy, re-elected Chairman of The Southern India Mills’ Association (SIMA).
While India has traditionally been built on natural fibres, particularly cotton, the evolving global market is creating a need for a stronger presence across the textile value chain, including man-made fibres (MMF), technical textiles, recycled fibres, sustainable products and value-added products.
Mr. Durai said the future growth of the Indian textile industry would depend not only on capacity expansion but also on producing high-value products with greater efficiency through innovation, productivity, advanced technology, sustainability and market diversification. These measures, he said, would help the industry maximise emerging opportunities arising from India’s Free Trade Agreements.
In a press release, Mr. Durai expressed his gratitude to the NDA Government for giving priority to the textile industry through a range of growth-oriented policies and measures, including:
- Rationalisation of GST across the textile value chain.
- Withdrawal of QCOs on cotton, MMF fibres, filaments and yarns.
- Retention of the annual banking system and reduction of related charges in relation to power.
- Extension of the export obligation period under Advance Authorisation.
- Launch of the Mission for Cotton Productivity.
- Revisions to the PLI Scheme, including lower investment and turnover thresholds.
- Progress on FTAs with the EU, UK, New Zealand, Oman and other countries.
- Export credit support, RoDTEP restoration and extension of RoSCTL.
- Temporary exemption of cotton from 11% import duty.
- Rollback of the punitive U.S. tariff from 50% to 18%.
- Reduction of Hank Yarn Obligation from 30% to 20%.
- Rejection of anti-dumping duty recommendations on elastomeric filament yarn.
- Introduction of ECLGS 5.0 to address liquidity constraints, providing fully collateral-free additional credit of up to 20% of peak working capital, subject to a maximum of Rs 100 crore per borrower, with a tenure of up to five years till 31 March 2027 and a one-year moratorium on principal loan repayment.
- Withdrawal of the proposed 3.48% power tariff increase in Tamil Nadu.
SIMA seeks measures on cotton price volatility
Mr. Durai also appealed to the Government to address the growing volatility in cotton prices, noting that cotton constitutes around 65–70% of yarn manufacturing cost.
He emphasised the need to curb speculation in raw material prices to provide a level playing field across the textile value chain. He urged the Government to consider two policy interventions.
The first is the permanent removal of the 11% import duty on all varieties of cotton with immediate effect, which he said would help curb the import parity price policy adopted by multinational Cotton Corporation of India and Cotton Trade.
The second is for the Government to consider changing the role of the Cotton Corporation of India (CCI) on par with China National Cotton Reserves Corporation, which maintains more than a year of stock and seeks to maintain stability in prices.
New SIMA office-bearers for 2026-27
Earlier, at the 67th Annual General Meeting of The Southern India Mills’ Association (SIMA), held at the SIMA premises in Coimbatore on 22 September 2026, Mr. Durai Palanisamy, Executive Director, Pallava Textiles P Limited, Erode, was unanimously re-elected as Chairman for 2026-27.
Mr. Durai holds an MBA in International Business from Southern New Hampshire University and a Bachelor of Technology in Textile Technology from PSG College of Technology. He is the Vice-President of CII, Erode Zone, and is also a member of the Committee of Administration of the Manmade and Technical Textiles Export Promotion Council (MATEXIL).
Mr. S. Krishnakumar, Managing Director, Sulochana Cotton Spinning Mills P Ltd., Tiruppur, was unanimously re-elected as Deputy Chairman for 2026-27. He holds a B.A. in Psychology from P.S.G. Arts College, Coimbatore, and entered the business in the late 1980s.
His company focuses on sustainable fashion and 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, was unanimously re-elected as Vice-Chairman for 2026-27. He holds a B.Tech. in Textiles from the USA and entered the business in the late 1990s.
Sivaraj Spinning Mills operates across a four-product portfolio comprising yarn, woven fabric, knitted fabric and readymade garments, with a focus on transforming traditional manufacturing into modern retail branding.
The new leadership comes at a time when the Indian textile industry is seeking greater technology adoption, automation, product diversification and value addition across the manufacturing value chain.