Tirupur Textile Hub Sees Record Growth but Faces Rising Structural Challenges
By yash chouhan 2025-06-25 18:30:14
Tirupur’s Textile Boom Faces New Growth Challenges Despite Record Trade
Tirupur, located on the banks of the Noyyal River in western Tamil Nadu, may appear to be a quiet town at first glance, but it is widely recognised as a major hub in India’s textile industry. Often referred to as the “Knitwear Capital of India,” the city plays a dominant role in global apparel exports.
The Tirupur textile cluster recorded a total trade of around ₹70,000 crore in FY25. It contributes nearly 90% of India’s cotton knitwear exports and about 54% of the country’s woven garment exports. In FY25 alone, knitwear exports from the region touched a record ₹39,618 crore, up from ₹33,045 crore in FY24 and ₹27,280 crore in FY20.
Despite this strong performance, the sector is currently facing multiple challenges. Industry stakeholders point to issues such as shortage of skilled labour, infrastructure constraints, and the need for technology upgrades as key concerns for future growth. Additionally, global competitiveness has been affected due to duty advantages enjoyed by competing countries like Bangladesh.
The growth of Tirupur’s export ecosystem has been gradual but steady. Starting with small-scale exports in the 1980s, the industry expanded rapidly after international buyers began sourcing from the region. Over time, improvements in dyeing technology and manufacturing processes helped transform Tirupur into a large-scale export hub.
While exports have reached nearly ₹40,000 crore in FY25 and domestic consumption stands at around ₹30,000 crore, the industry now faces the challenge of sustaining this momentum amid global competition and structural bottlenecks.
