Tamil Nadu’s textile industry is facing a critical juncture as it seeks to expand and diversify its portfolio in line with emerging global opportunities. Currently, the sector heavily relies on cotton and synthetic materials sourced from outside the state, with limited value addition and branding capabilities. To address this challenge and compete with countries like China, Bangladesh, Vietnam, and Indonesia, a 15-member Confederation of Indian Industry (CII) delegation from Tamil Nadu visited Taiwan to explore trade opportunities.
Taiwan, known for its focus on technical textiles, especially in athleisure and outdoor wear, has been a global leader in this sector for around 25 years. With approximately 80% of Taiwan’s textile exports in technical textiles, there is significant potential for collaboration and growth between Taiwan and Tamil Nadu. The CII delegation explored avenues for investment, joint ventures, and technology transfers during their visit. In return, a Taiwanese delegation is scheduled to visit Tamil Nadu early next year.
The collaboration between Taiwan and Tamil Nadu is expected to benefit both sides. Taiwan, through its “China Plus One” policy, aims to diversify its manufacturing destinations, and India, particularly Tamil Nadu, with its conducive business environment and synergies, can offer an attractive proposition. By capitalizing on Taiwan’s technical expertise and Tamil Nadu’s production capacity, the partnership has the potential to double India’s exports in the technical textiles category.
Tamil Nadu, recognizing the need to shift towards man-made fibers, has already announced special incentives and subsidies for textile units under the state’s industrial policy. The state government is also expected to unveil a revised textile policy to further encourage investments in man-made fiber units with smaller investments.
The collaboration between Taiwan and Tamil Nadu holds promises of growth, innovation, and global competitiveness for the textile industry in Tamil Nadu. With Taiwan’s expertise and Tamil Nadu’s favorable business environment, it is anticipated that the partnership will open doors to new opportunities and drive the sector’s transformation towards technical textiles.
