As per Annual Survey of Industry, Ministry of Statistics & PI, State/UT-wise, including Tamil Nadu, total number of spinning mills, number of spinning mills in operation and others is attached given below. Ministry of Textiles does not maintain data of closed spinning mills separately. The key initiatives taken by the Government to support spinning mills in the country includes following:

1. Technology Up-gradation and Modernization:

• Amended Technology Upgradation Fund Scheme (ATUFS) to provide credit-linked Capital Investment Subsidies (CIS) to textile units for purchasing benchmarked machinery, helping mills modernize and reduce their environmental footprint.
• Spinning Mill Modernization Schemes: State-specific initiatives, such as those in Tamil Nadu, offer interest subsidies for replacing machinery older than five years.
• Mini Textile Park Schemes: Subsidies for developing infrastructure, buildings, and machinery for smaller units.

2. Raw Material Supply and Price Stabilization:

• Cotton Corporation of India (CCI) Support: The government directs CCI to sell cotton stocks purchased under the Minimum Support Price (MSP) directly to MSME-category spinning mills to ensure availability.  
• Special Sales/Discounts: CCI offers discounts (e.g., Rs. 300/- per candy) to MSME mills, cooperative sector mills, and Khadi industries to boost competitiveness.
• Yarn Supply Scheme (YSS): Ensures availability of raw materials at “mill gate prices” to handloom weavers, indirectly supporting steady demand for yarn.
• Kasturi Cotton Initiative: Focuses on branding, traceability, and certification to promote Indian cotton quality, benefiting the entire supply chain from farm to mill.

3. Financial Assistance and Incentives:

• Production Linked Incentive (PLI) Scheme: Encourages production of high-value Man-Made Fiber (MMF) fabrics and technical textiles, attracting investment and promoting eco-friendly manufacturing.
• Rebate of State and Central Taxes and Levies (RoSCTL): Provides tax rebates on exported garments and made-ups, boosting downstream demand for yarn.
• Interest Equalization Schemes: Increased rates for pre- and post-shipment credit to support MSME exporters.
• Special Package for Textiles (2016): Included measures like additional production subsidies under ATUFS, EPF contribution support, and tax concessions.

4. Infrastructure Development:

• PM-MITRA Parks: Establishment of 7 Mega Integrated Textile Region and Apparel Parks with world-class, plug-and-play facilities to reduce logistics costs and improve efficiency.
• Integrated Processing Development Scheme (IPDS): Supports new and upgraded Common Effluent Treatment Plants (CETPs) to help mills meet environmental standards.

5. SAMARTH Scheme (Scheme for Capacity Building in Textile Sector): Aims to provide demand–driven, placement-oriented training to create a skilled workforce for the sector.

These initiatives collectively address the need for upgraded technology, skilled manpower, rising raw material costs, and un-integrated supply chains.

India’s “Preparation and Spinning of Textile Fibres (1311)” sector, as per the Annual Survey of Industries (ASI) by the Ministry of Statistics & Programme Implementation (MOSPI), reflects a phase of gradual structural adjustment between 2019-20 and 2023-24. The total number of factories marginally declined from 5,373 to 5,166, while operational factories dropped more noticeably from 3,979 to 3,702, indicating pressure on active production capacity. At the same time, the number of non-operational or “other” units increased from 1,394 to 1,464, suggesting temporary shutdowns or stress within the segment.

State-wise, Tamil Nadu remained the dominant hub despite a decline in operational units from 1,995 to 1,672, while Maharashtra showed recovery with operational factories rising from 294 to 357 over the period. Gujarat maintained a strong and relatively stable base, increasing its total factories to 516 with 357 operational units in 2023-24. Haryana and Punjab also showed improvement in operational units in the latest year, pointing to regional resilience. In contrast, states like Karnataka and Rajasthan witnessed fluctuations, reflecting uneven production trends.

Overall, the data highlights a consolidating spinning sector in India, where leading states continue to anchor production, even as the industry navigates shifts in capacity utilisation, regional dynamics, and operational efficiency.

Source : Annual Survey of Industries (ASI), M/o Statistics & Programme Implementation (MOSPI)

Note 1: Others* – Factories with fixed assets but not maintaining its staff and not having production for 3 years, or non-existence,or de-registration, or out of coverage etc.

Note 2: The above data pertains to the data coverage of the Annual Survey of Industries which extends to the entire Factory Sector comprising industrial units (called factories) registered under the Sections 2(m)(i) and 2(m)(ii) of the Factories Act, 1948, wherein a ‘Factory’, which is the primary statistical unit of enumeration for the ASI

This information was provided by THE MINISTER FOR TEXTILES GIRIRAJ SINGH in a written reply to a question in Lok Sabha.

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