Here is the complete speech of Mr. M. Sankar, Chairman, TMMA(I), delivered during the 65th Annual General Meeting on September 19, 2025, at Mumbai.
Our Dear Mr. Rohit Kansalji (IAS), Additional Secretary, Ministry of Textiles, Government of India; Dr. M. Beena Mam, Textile Commissioner; my esteemed colleagues on the dais; distinguished guests; and friends.
A very warm and heartfelt welcome to all of you at the 65th Annual General Meeting of the Textile Machinery Manufacturers’ Association (India).
On behalf of the Association, I extend my sincere gratitude to Mr. Rohit Kansalji, & Dr. M. Beena Mam, for graciously accepting our invitation to be the Chief Guest and Guest of Honour. We are deeply honoured by their presence, especially considering their demanding schedules.
We eagerly anticipate their invaluable insights and guidance, which will be crucial for steering the Textile Engineering Industry towards greater dynamism and success.
Before we proceed with the formal approval of the Annual Report and audited financial statements, I would like to offer a concise overview of the Textile Engineering Industry and highlight the Association’s key contributions over the past year. TEI Played key role in making Indian Textiles highly competitive globally by offering technology which are advanced . More to come with the support of GOI .
Global and Domestic Economic Overview
The fiscal year from April 2024 to March 2025 has been a period marked by considerable challenges, significant lessons, and new opportunities. Globally, the growth has moderated after a robust post-pandemic recovery. While inflation has eased, it remained uneven across regions. Advanced economies have struggled with high interest rates and subdued demand, whereas emerging markets, particularly those in Asia, with India at the forefront, have emerged as the main engines of global expansion. At the same time, geopolitical uncertainties, from the prolonged Russia-Ukraine conflict to instability in the Middle East, have reshaped trade flows and forced companies worldwide to rethink their supply chains.
The global economy expanded at a modest 3.1%, a step down from the previous year. Yet, it displayed remarkable resilience, with emerging markets contributing more than two-thirds of this growth. Inflation moderated to 5.4% on average, but wage pressures, commodity shocks, and volatile oil markets reminded us that stability is far from guaranteed. Against this global backdrop, India truly stood out for its strength and resilience. Our economy grew at a robust 6.5% in real terms during 2024-25, powered by strong domestic demand, healthy investment, and a vibrant services sector. This performance makes us not only one of the fastest-growing large economies but also a beacon of stability amid global turbulence.
Performance of the Textile Engineering Industry
Turning to our own sector, the Textile Engineering Industry (TEI) faced a demanding year. Production saw a notable decline of nearly 29%, reaching ₹10,461 crores compared to ₹14,639 crores in the preceding year. While specific segments such as spinning, hosiery, and accessories experienced sharp downturns, some areas like synthetics, weaving preparatory, and processing equipment recorded growth. Exports of textile machinery were severely impacted, falling by almost 50%, while imports modestly declined due to international supply chain disruptions. Our capacity utilisation, which has been above 80% in recent years, slipped closer to 60%, a clear reflection of the cautious market sentiment and challenging external environment.
Despite these setbacks, there were encouraging signs of resilience. Domestic demand, though subdued, was supported by brownfield projects, and our share in meeting domestic demand has steadily risen over the past five years, from 28% to 36%. This demonstrates the growing strength of our indigenous manufacturing capabilities and our industry’s commitment to self-reliance.
On the policy front, the conclusion of the Amended Technology Upgradation Fund Scheme in 2022 has left our industry awaiting a new framework. However, we appreciate the government’s selective engagement with stakeholders, including discussions to align with the ‘Make in India’ initiative. We also commend the recent rationalisation of GST for the textile industry. As we collectively envision a ₹28 lakh crore (USD 350 billion) Indian textile industry, we believe that the following three policy reforms will be instrumental in accelerating our efforts:
- Quicker GST Refunds to the user Industry : The current delay in recovering the 18% GST on input credits against the 5% paid by our user industry ties up significant capital. A substantially reduced turnaround time for these refunds would unlock vital funds for the industry there by better cashflow .
- Export Funding: We must urgently explore mechanisms where our members can secure funding from international banks at significantly lower interest rates. This is crucial to enhancing our export competitiveness. The Indian Development and Economic Assistance Scheme (IDEAS) is an initiative that provides loans to other countries to fund projects carried out by Indian companies, but its current multi-step and multi-departmental process is slow and causes India to miss out on export opportunities. To address this, a new approach is recommended that involves being more proactive by collaborating with Indian industries to identify potential projects abroad and establishing “pre-approved” loans for these sectors, in addition to creating a single joint task force to act as a “single window” for all project approvals, replacing the current sequential system with a faster and more streamlined one.
- Incentives for Indian Textile Exporters: To mitigate the burden of penalising US tariffs, it is essential to provide targeted incentives to Indian textile exporters, ensuring they remain competitive in this key market.
We shall continue to advocate for a comprehensive policy framework that supports the long-term growth of the textile machinery sector and helps reduce our nation’s reliance on imports.
Impact of reciprocal tariffs:
Following the imposition of reciprocal tariffs by the United States, India’s textile exports have faced significant headwinds, challenging a sector that had shown consistent growth. While overall textile and apparel exports grew in FY25, recent data paints a concerning picture. In August 2025, textile exports contracted by 2.73% year-on-year, with a sequential decline of 5.44% in exports to the US from July to August, particularly impacting ready-made garments, which fell by 7.77%. This has directly affected major textile clusters like Tirupur, Ludhiana, Panipat, Karur & other parts of country , which are now experiencing reduced orders and pricing pressures. The home textiles segment has been especially vulnerable as US buyers look for alternative sourcing options. This downturn, following the tariffs, indicates a pressing need to address these trade barriers urgently to safeguard India’s textile export industry and its vital role in the global supply chain.
Conclusion and Acknowledgements
Friends, the story of the past year is one of resilience under immense pressure. While the global economy slowed, India continued its forward march. While our industry contracted, we have identified new areas of strength and opportunities. The lessons are clear: we must continue to invest in innovation, strengthen domestic capabilities, enhance our partnership with the government, and proactively adapt to new global dynamics.
As I prepare to lay down my office as Chairman at the conclusion of this Annual General Meeting, I must express my profound gratitude to my fellow office bearers, Mr. Prashant Mangukia, Mr. Shailesh Wani, and Mr. Chintan Thumar. Their active assistance has been indispensable. I also thank the members of the Executive Council for their support and the entire Association membership for entrusting me with this responsibility.
I extend my heartfelt congratulations to the incoming Chairman, Mr. Prashant Mangukia, and his new team of office bearers, Mr. Chintan Thumar, Mr. N. K. Brahmachari, and Mr. Ganesh Shenoy. I wish them a highly successful and fruitful tenure. I would also like to sincerely thank the past chairmen of TMMA, for their constant guidance and support.
My thanks also go to the ITAMMA and the India ITME Society for their unwavering support in all our activities. Finally, I wish to commend the excellent work of the TMMA Secretariat, led by our Executive Director, Mr. Sachin Kumar.
Export and R&D Awards
As is our tradition, we will now proceed with the presentation of the Export and R&D Awards. We will be honouring our members for their outstanding achievements in Export Excellence, segmented export performance, and groundbreaking R&D for the year 2024-25. I extend my advance congratulations to all the award winners for their extraordinary efforts in promoting exports and advancing the textile engineering arena.
Immediately after our business session, I request our Distinguished Guest, Mr. Rohit KansalJi , Dr.Beena Mam and our Guest of Honour, to present the awards and address the gathering.
Thank you all.