Tirupur, India’s knitwear capital, is feeling the pinch from the latest US tariffs, but apparel exporters in the city are already exploring new avenues to sustain growth. Times Now spoke to several manufacturers and exporters who said that while the number of new orders had reduced, the traders were already on the lookout for “newer, flexible markets”.
“Tirupur is the most affected. 30% of our textile exports worth 12,000 crores are to the US. Now we are at the brink of losing 2,000 – 3,000 crores in this. We’ll have to find newer flexible markets,” Subramanian, a textile manufacturer and exporter from Tirupur, said.
He added, “Around 10% of exporters from Tirupur are completely dependent on the US for sales. They are being compelled to find new buyers now. It’s not easy to find a new market with good buyers. It takes time. They are trying their best.”
Muthurathinam, another apparel manufacturer and exporter from Tirupur, said, “Tirupur is the most affected due to this rise in tariffs. 35-40% of our exports are to the US. We are suffering a lot because of the increased tariff. The number of new orders has reduced. Existing buyers have requested to pause the orders for the time being. An apparel which used to cost Rs 100 will now be sold at Rs 150 in the US. The people of America are also getting affected by this. They have to spend extra to buy Indian clothes.”
He appealed for government support. “Like how the government helped us during COVID times, the government has to help us get through this phase too. Special schemes and subsidies should be announced for MSMEs especially in the textile sector. It’ll take us two years to find new markets. The Union Government should help us during this crisis period.”
Tirupur – India’s Knitwear Export Hub
Tirupur’s strength lies in its production of knitwear, with the city being the leading source of cotton knitwear exports for India, shipping products to the US, Europe, Australia, and Canada. Known as the “Dollar City,” Tirupur contributes significantly to India’s foreign exchange, leveraging its strategic location and access to high-quality cotton.
Tariffs Disrupt Recent Revival
Just months ago, Tirupur’s apparel units were witnessing a revival after nearly two years of slow demand. A surge in orders from the US and UK, aided by political unrest in Bangladesh, had factories operating at 95% capacity.
KM Subramanian, president of the Tirupur Exporters Association (TEA), said new buyers from the UK are seeking samples in anticipation of a soon-to-be-signed Free Trade Agreement (FTA) between India and the UK.
“The units are getting orders from the US for the upcoming Spring season. A few months ago, the units were operating at 60-65% capacity. But that has changed now,” he said, adding that US companies previously sourcing from Bangladesh are increasingly turning to Indian suppliers.
Tirupur clocked a revenue of Rs 35,000 crore in FY24, which was expected to rise to Rs 40,000 crore in FY25. India’s apparel exports surged 35% in October to $1.22 billion from $908.78 million a year earlier, according to the commerce ministry.