TN Budget 2026-27: Announcement of Design Institute and Technology Center to Boost Textile Sector
Tiruppur/Erode: The DMK-led Tamil Nadu government has allocated ₹1,678 crore to the Textiles Department in the 2026-27 budget. Aiming to modernize the textile industry and enhance its global competitiveness, the government has made several key announcements. These include the establishment of the 'Tamil Nadu Institute of Design' at a cost of ₹60 crore and the 'Tiruppur Textiles Technology Center' at a cost of ₹10 crore.
The budget also announced the launch of the 'Technical Textiles Transformation Scheme.' This scheme will be implemented in collaboration with international academic and research institutions and with financial support from the Tamil Nadu Technical Textiles Mission. Through this initiative, entrepreneurs, Micro, Small, and Medium Enterprises (MSMEs), and textile manufacturers will be provided with technical training, technology transfer, international expertise, market insights, innovation support, and business mentorship.
Reacting to the budget, A. Sakthivel, Chairman of the Apparel Export Promotion Council (AEPC), stated that the budget reflects the government's commitment to transparent governance, the timely implementation of development schemes, and inclusive economic growth. He noted that the new industrial policy, TN Single Window 3.0, the expansion of SIPCOT industrial parks at a cost of ₹3,500 crore, and the allocation for the textile sector would enhance the ease of doing business, attract investment, strengthen the manufacturing sector, and boost export competitiveness. According to him, these initiatives will also accelerate the goal of transforming Tamil Nadu into a $1.5 trillion economy by 2035-36.
K., President of the Tiruppur Exporters Association (TEA)... M. Subramanian stated that the proposed Tiruppur Textiles Technology Center would further strengthen Tiruppur's position as the country's leading knitwear export hub. He also expressed the expectation that the government would take a swift decision on other pending demands of the industry, including the establishment of a Knitwear Board and a trade center. Meanwhile, TEA Joint Secretary Kumar Duraiswamy reiterated the demand for a special budgetary provision for the education of migrant workers' children and expressed hope that the government would soon take positive steps in this regard as well.
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