SIMA chair calls for faster automation, diversification and value addition in Indian textiles

# What SIMA said and why it matters

Association (SIMA) framed the near-term roadmap for India's textile industry around three practical shifts: accelerate automation, expand value addition across the textile chain, and diversify into new fibre and product segments. SIMA's re-elected chairman, Durai Palanisamy, set this out while recognising recent government policy moves that help competitiveness.

# Government actions SIMA welcomed

Palansamy listed several policy steps the association sees as positive for industry resilience and export potential:

• Rationalisation of GST across the textile value chain.
• Withdrawal of QCOs on cotton, MMF fibres, filaments and yarns.
• Retention of annual banking system for power and related charge reductions.
• Extension of export obligation period under Advance Authorisation.
• Launch of a Mission for Cotton Productivity.
• Revisions to the Production Linked Incentive (PLI) scheme lowering investment and turnover thresholds.
• Progress on FTAs with the EU, UK, New Zealand, Oman and others.
• Export credit support measures including RoDTEP restoration and RoSCTL extension.

• Introduction of ECLGS 5.0 to provide additional collateral-free credit for working capital through March 31, 2027.
• Withdrawal of a proposed power tariff increase in Tamil Nadu.

These measures are cited by SIMA as improving the operating and export environment, and supporting investments in higher-value production.

# Cotton-price volatility is the immediate problem

Despite policy wins, SIMA flagged cotton-price volatility as a critical challenge. Cotton accounts for roughly two-thirds of yarn manufacturing cost in the association's view, so wide swings undermine competitiveness and planning across the value chain.

S. Krishnakumar, SIMA's deputy chairman and managing director of Sulochana Cotton Spinning Mills, made two specific appeals:

• Reconsider the Cotton Corporation of India's role, potentially on a model similar to China National Cotton Reserves Corporation, to stabilise supply and prices rather than enable speculation.

Those requests aim to reduce raw-material-driven margin risk and create a more level playing field for domestic yarn and fabric makers.

# Leadership and industry focus

At SIMA's 67th Annual General Meeting (Coimbatore, September 22, 2026) the leadership team was returned to office: Durai Palanisamy as chairman, S. Krishnakumar as deputy chairman, and K. Sivaraj as vice-chairman. Brief background details reported by SIMA:

• K. Sivaraj: Managing Director of Sivaraj Spinning Mills with a product portfolio spanning yarn to garments and a strategic focus on modernisation.

Their stated priorities align on technology adoption, sustainability and moving toward higher-value finishing and specialised products.

# Practical implications for mills and buyers

For manufacturers: invest selectively in automation and processes that raise yield, reduce energy/labour cost and permit product-mix shifts into MMF and technical textiles. For policymakers: stabilise raw-material markets and preserve trade and credit measures that lower the cost barrier for technology upgrades. For buyers and converters: anticipate more Indian suppliers pitching higher-value, recycled and technical textile options as the industry adapts.

SIMA's message is operational: the sector should use policy tailwinds to modernise factories and climb the value chain while seeking further government steps to stabilise cotton supply and prices.