In the global textile manufacturing market, where countries like Bangladesh and Vietnam leverage preferential trade agreements (FTAs) to dominate export markets, India's Tiruppur stands as a remarkable anomaly. Dubbed the ‘Knitwear Capital of India’ this unassuming city in Tamil Nadu has, against all odds, transformed itself into a global manufacturing powerhouse, demonstrating an astonishing trajectory of growth and resilience.

From a modest $1.21 million in 1985 (Rs 15 crore), Tiruppur's textile exports are confirmed to have risen to over $4.71 billion (Rs 40,000 crore) in fiscal year 2024-25, almost 2,667-fold increase and a consistent 22 per cent CAGR over four decades. This phenomenal success story is not just about numbers; it's about an unparalleled ecosystem, a dedicated workforce, and a strategic vision that has allowed Tiruppur to carve out a significant niche on the world stage.

A self-contained ecosystem of efficiency

One of Tiruppur's most formidable strengths lies in its integrated industrial ecosystem. Boasting an estimated 28,000 manufacturing units, the city covers every stage of the textile value chain within its own geographical confines. From knitting and dyeing to printing, embroidery, and final garmenting, the entire process is meticulously managed within Tiruppur. This vertical integration drastically reduces lead times, cuts logistical costs, and allows for unparalleled quality control and flexibility – factors that are highly prized by global brands.

"The ability to control every aspect of production under one roof gives us a significant edge," explains A Sakthivel, President, Tiruppur Exporters' Association (TEA), a collective representing 1,400 exporters. "We can respond quickly to changing fashion trends and deliver orders with remarkable efficiency, even for complex designs and large volumes."

Dominating India's knitwear exports

Tiruppur's influence extends far beyond its export figures. In FY25, the city is projected to account for an astounding 90 per cent of India's total cotton knitwear exports and contribute a significant 55 per cent to the nation's overall knitwear exports. This dominance is not limited to international markets; Tiruppur also supplies apparel worth a staggering $3.18 billion (Rs 27,000 crore) for domestic consumption, cementing its role as a cornerstone of India's textile industry.

Empowered workforce

The economic ripple effect of Tiruppur's growth is profound. The industry directly employs 6 lakh people and indirectly supports another 2 lakh workers. What's particularly noteworthy is that 65 per cent of this direct workforce comprises semi-literate women workers from rural areas. Tiruppur has become a beacon of economic empowerment for these women, providing them with stable employment, skill development, and improved livelihoods. The industry's focus on inclusive growth has contributed significantly to social upliftment in the region.

Competing without the crutch of FTAs

Tiruppur's success story becomes even more compelling when considering the competitive landscape. Unlike major textile exporting nations such as Bangladesh and Vietnam, which benefit from extensive Free Trade Agreements (FTAs) with key markets like the European Union and the United States, India often faces tariffs on its textile exports. Despite this disadvantage, Tiruppur has consistently demonstrated robust growth.

"We are growing at a rate of 15-18 per cent annually, and in FY25, Tiruppur's exports will cross $4.71 billion," states Sakthivel with confidence. This growth is a testament to the industry's ability to offer compelling value propositions beyond just price.

Global brands take notice

The quality, reliability, and efficiency offered by Tiruppur manufacturers have not gone unnoticed by global giants. Leading apparel brands such as Walmart, Primark, Tesco, Marks & Spencer, Warner Bros, and Tommy Hilfiger are actively placing fresh and substantial orders with Tiruppur units. The city exports approximately 35 per cent of its production to the European Union, another 35 per cent to the US, and around 10 per cent to the Middle East and Canada, underscoring its broad international appeal.

Table: Knitwear export performance, Tiruppur vs. regional competitors (select years)

Resilience and innovation

There are numerous success stories within Tiruppur. For instance, many units have invested heavily in sustainable manufacturing practices, including zero-liquid discharge (ZLD) dyeing units and renewable energy sources, addressing growing environmental concerns of international buyers. This proactive approach to sustainability, often without direct government mandates, further enhances their appeal to ethically conscious brands.

Moreover, several companies have embraced technological advancements, integrating automation in various stages of production and adopting enterprise resource planning (ERP) systems to streamline operations and enhance efficiency. This continuous drive for innovation ensures that Tiruppur remains at the cutting edge of manufacturing capabilities.

What lies ahead…

While Tiruppur's journey has been extraordinary, challenges remain. The lack of FTAs continues to be a hurdle, putting Indian exporters at a tariff disadvantage. Additionally, rising labor costs and the need for continuous skill upgradation are ongoing concerns. However, the industry's historical ability to adapt and innovate suggests that Tiruppur is well-positioned to navigate these challenges.

The ‘Knitwear Capital of India’ is not just a regional success story; it's a powerful demonstration of how a focused industrial cluster, driven by entrepreneurship, innovation, and a dedicated workforce, can compete and thrive on the global stage, even without the preferential treatment enjoyed by its rivals. Tiruppur's journey serves as an inspiring blueprint for other aspiring manufacturing hubs, proving that homegrown excellence can indeed conquer global markets.