The Federation of Labor Unions in Tiruppur attributes the current challenges faced by the knitwear industry in the city to the detrimental policies of the Union Government.

According to the Union, the adverse effects of demonetisation and the implementation of Goods and Services Tax (GST) have had a profound impact on the cotton and textile sector. The industry has been grappling with the repercussions since the introduction of GST in India on July 1, 2017.

Furthermore, the decision by the Indian government to permit imports of cotton garments from Bangladesh has exacerbated the situation. This shift has prompted traders and cloth merchants to favor cheaper garment imports, resulting in substantial losses for the Tiruppur knitwear industry, according to the unions.

The struggles faced by small garment units and labor unions have been evident for several months, with laborers and entrepreneurs alike keenly aware of the challenges. Despite Tiruppur's significant growth, driven by the diligent efforts of entrepreneurs and the support of laborers, the industry now faces a critical juncture.

The city has emerged as a hub for migrant workers from various districts and states, fueled by economic growth and employment opportunities. However, the landscape began to shift in the early 2010s with the ascent of the new Bharatiya Janata Party government. Their economic decisions directly impacted small units in Tiruppur, precipitating the challenges now faced by the industry.

The volatility in yarn prices has only compounded the hardships for small-scale garment units, leaving entrepreneurs grappling with an array of issues. The release underscores the pressing issues plaguing the industry, emphasising the urgent need for solutions to safeguard its future.