CITI Calls For Spinning Sector Inclusion In TEEM To Boost Textile Value Chain

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. Concerns Over Spinning Capacity 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 Currently, about 25 per cent of India’s spindle capacity remains idle due to outdated technology, high energy consumption, and low productivity, according to industry estimates cited by CITI.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 per cent of India’s spindles are modern, compared with the global average of 33 per cent and higher shares in countries such as China (40 per cent) and Vietnam (38 per cent). Benefits of Modernisation 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 per cent, improve quality by 20 per cent, reduce power consumption by 15 per cent, and enhance raw material realisation by 1.5 per cent—factors critical to strengthening India’s competitiveness in domestic and export markets. However, India’s textile and apparel exports declined by 2.21 per cent year-on-year in FY26 (in dollar terms). (KNN Bureau)