The Confederation of Indian Textile Industry (CITI) has called
for the inclusion of the spinning segment under the Textile
Expansion and Emtployment Mission (TEEM) to boost the global
competitiveness of India’s textile sector.
CITI Chairman Ashwin Chandran said, “A balanced and
synchronised development, from fibre to finished products, is
critical for realising the government’s vision of scaling India’s
textile and apparel industry to USD 350 billion, including USD
100 billion exports, by 2030.” “Inclusion of the spinning
segment within the ambit of the Textile Expansion and
Employment Mission will enhance efficiency and ensure that
upstream capabilities are fully aligned with the Mission’s
downstream expansion strategy,” Chandran added.
Announced in the Union Budget by Finance Minister Nirmala
Sitharaman, TEEM aims to modernise textile clusters through
support for machinery, technology upgrades, and testing
infrastructure.
While TEEM will drive expansion in weaving, processing, and
garmenting, CITI warned that the lack of parallel modernisation
in spinning could lead to supply mismatches, higher import
dependence, and reduced domestic value addition.
Currently, about 25 % of India’s spindle capacity remains idle
due to outdated technology, high energy consumption, and low
productivity, according to industry estimates cited by CITI.
A recent industry report commissioned by the CITI noted that
only 26 % of India’s spindles are modern, compared with the
global average of 33 % and higher shares in countries such as
China (40 %) and Vietnam (38 %).
CITI highlighted that the tentative cost of producing yarn in a
modern mill is around Rs 1.2 per count per kg, compared to
about Rs 1.8 in a 10-year-old mill.
Adoption of modern technology can increase productivity by 25
%, improve quality by 20 %, reduce power consumption by 15 %,
and enhance raw material realisation by 1.5 %—factors critical
to strengthening India’s competitiveness in domestic and export
markets.
However, India’s textile and apparel exports declined by 2.21 %
year-on-year in FY26 (in dollar terms).