Tiruppur, often referred to as India’s knitwear capital, plays a vital role in the country’s textile sector. Generating over ₹70,000 crore in trade annually, it contributes 90% of India’s cotton knitwear exports and 54% of overall knitwear exports. However, despite its significance, Tiruppur faces a complex landscape of global competition, labour issues, and infrastructure bottlenecks,…
Tiruppur, often referred to as India’s knitwear capital, plays a vital role in the country’s textile sector. Generating over ₹70,000 crore in trade annually, it contributes 90% of India’s cotton knitwear exports and 54% of overall knitwear exports. However, despite its significance, Tiruppur faces a complex landscape of global competition, labour issues, and infrastructure bottlenecks, while also being poised for major growth if supported effectively.
Economic Snapshot
Indicator
Details
Total Trade Volume
₹70,000 crore
Share in Cotton Knitwear Exports
90%
Share in Overall Knitwear Exports
54%
Major Products
T-shirts, innerwear, casualwear, sportswear
Employment Dependency
>600,000 workers, heavily reliant on migrant labour
Key Challenges
Challenge Area
Details
Global Competition
Bangladesh benefits from LDC duty-free access, making its products cheaper.
Technology Gap
Requires ~50% increase in capex for modernization to remain competitive.
Labour Shortages
Estimated 100,000–150,000 workers short due to election season and better options at home.
Capital Accessibility
MSMEs struggle to afford large investments mandated by PLI and other schemes.
Infrastructure
Poor logistics and limited connectivity discourage international buyers from visiting.
Government Initiatives and Gaps
Scheme/Policy
Current Impact
National Technical Textiles Mission
Limited impact on MSMEs; uptake remains low.
Technology Upgradation Fund Scheme (TUFS)
Benefits not reaching small units effectively.
Production-Linked Incentive (PLI) Scheme
Capital-intensive, difficult for small players to qualify.
Skill India Mission
Potentially useful but needs better execution at the cluster level.
Expert Recommendations:
Introduce dedicated tech-upgradation support for MSMEs.
Create financial aggregation platforms to pool investments and improve credit access.
Improve transport and buyer engagement infrastructure.
Growth Opportunities
Opportunity
Potential Benefit
$100 Billion Export Target by 2030
Tiruppur can significantly contribute with right support.
India-UK Free Trade Agreement
Improved market access and export incentives.
Workforce Upskilling
Training initiatives can bridge skill gaps and improve productivity.
Domestic Demand Surge
Rising awareness and demand for Indian-made apparel can drive local sales.
Strategic Recommendations
MSME-Centric Policies: Develop financial models and incentives suited to the capital structure of small and medium units.
Tech & Automation: Provide subsidized loans or shared infrastructure for modern machinery and digitalization.
Worker Retention Schemes: Introduce seasonal worker welfare programs and incentives to ensure migrant worker return.
Logistics and Access: Upgrade roads, digital connectivity, and facilitate buyer visits through regional trade centers.
Global Positioning: Market Tiruppur as a sustainable and reliable sourcing destination under a unified textile export brand.
Conclusion
Tiruppur remains a cornerstone of India’s textile export strategy, but it stands at a crossroads. With targeted government support, infrastructure improvements, and empowerment of MSMEs, it can not only retain its leadership but also expand its footprint in the global apparel market. If well-leveraged, the cluster can be a model for balanced industrial growth—rooted in tradition, yet equipped for the future.
Glottis Limited 
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