The Tirupur Exporters' Association (TEA) has said the Tamil Nadu government's decision to form a consultative committee will help the industry.
The State Textile Consultative Committee will be headed by textile minister Gokula Indira.
TEA also welcomed the extension of state support of up to 25% of project estimates under its scheme for integrated textile processing development.
"This was a major requirement for the improvement made in the process sector," said A Sakthivel, president, TEA.
"This was a major requirement for the improvement made in the process sector," said A Sakthivel, president, TEA.
The government's new Micro, Small and Medium Enterprises (MSME) policy would also help the industry, since more than 80% of the garment sector falls under this category.
Tamil Nadu houses the country's largest spinning industry, accounting for more than 40% of the total installed capacity in India. The knitting industry comprises more than 50% of the total installed capacity and around 90% of the knitwear exports in the country are from the state.
Around 20% of the India's total export of ready-made garments is from Tamil Nadu. Tirupur is one of the biggest knitting clusters in India.