Europe is the key market for Tirupur. The EU and the US, together, constitute 70 per cent of the market for knitwear exporters. Tirupur boasts of a Rs 46,000 crore annual apparel business and houses the entire ecosystem that supports the industry. In the five years between 2012 and 2017, annual exports increased from Rs 10,500 crores to Rs 26,000 crores. The knitwear industry in Tirupur is largely in the micro, small and medium enterprises segment. However, its profile is witnessing gradual changes. Of the 1500-odd direct exporters, the number of exporting units with more than a Rs 100 crore turnover is more than what it was a few years ago and there are at least 20 units with more than a Rs 500 crore turnover.

Yet, all has not been well for the last three years. Export growth is not up to the expected level, investments have been need-based, and there is a struggle to be price-competitive. The incentives that the industry received before implementation of GST through different schemes worked out to nearly 13.2 per cent. This was reduced to 5.7 per cent after GST.

The inherent strengths of Tirupur, and its focus on efficiency and technology, have helped it sustain exports for the last two years.