Tiruppur, the knitwear capital of India, is grappling with unprecedented challenges following the recent 50% tariff hike imposed by the United States on Indian goods. With exports already heavily dependent on the US market, the sector is facing stagnation, production halts, and mounting financial pressure.

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Export Performance

Indicator	Value / Share
Total Knitwear Exports (FY Last Year)	₹44,747 crore
Share of Exports to US	~35%
Value of Stagnating Goods	₹3,000 – ₹4,000 crore (tailored for US buyers)

Tiruppur’s knitwear industry has long been a cornerstone of India’s textile exports. However, the tariff shock is directly impacting a large chunk of its revenue base.

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Immediate Impacts

Challenge	Description
Tariff Burden	50% hike on Indian goods making exports less competitive.
Discount Strategy	Exporters offering 2–5% discounts to retain US buyers.
Production Halts	Units catering primarily to the US halting output as orders are held back.
Stagnant Inventory	₹3,000–₹4,000 crore worth of knitwear lying unsold.
Company Impact	About 30% of Tiruppur companies export 80–100% of their output to the US and are severely affected.
Buyer Uncertainty	US buyers reluctant to place new orders.

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Industry Demands

Exporters are urging the central government to intervene with supportive measures to cushion the blow:

Requested Support	Purpose
Two-Year Moratorium on Bank Loans	Relief from repayment stress during slowdown.
Emergency Credit Facilities	Ensure working capital liquidity for exporters.
Concessional Schemes	To sustain competitiveness and reduce tariff shock.

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Outlook

The situation in Tiruppur highlights the vulnerability of export-dependent industries to external policy shifts. With nearly one-third of its firms heavily reliant on the US market, the knitwear sector risks prolonged stagnation unless alternative markets are tapped and government-backed relief measures are introduced.

Despite the turbulence, Tiruppur’s resilient supply chain and strong reputation in global apparel markets offer hope. Diversification of export markets, along with digitalization and sustainability in production, could help the sector weather this difficult phase.