The textile hub of Tiruppur, known as India’s knitwear capital, is facing a major setback after the United States imposed a 50% tariff on Indian imports, severely affecting its export prospects. Industry leaders are now appealing to both the Central and State governments for urgent intervention to cushion the blow.
Tiruppur contributes exports worth ₹45,000 crore globally, of which nearly ₹15,000 crore is bound for the US. With the tariff in place, many American buyers have either held back orders or demanded steep discounts.
“Tiruppur accounts for 68% of India’s knitted garment exports. The new tariff has disrupted our shipments and business with the US,” said Tirukumaran, General Secretary of the Tiruppur Exporters Association. “We have sought fiscal support from the Centre, including help from Finance Minister Nirmala Sitharaman. The full impact will unfold in the coming weeks, but we fear the consequences will be serious.”
At present, factories are continuing production, but exporters are forced to ship goods at heavy discounts. “We are with the government and understand negotiations take time. But support is needed to ensure survival until a solution is reached,” Tirukumaran added.
Exporters say both the Union and Tamil Nadu governments must act quickly. “Almost all Tiruppur manufacturers depend heavily on the US. It would help if we received interest-free loans to tide over this crisis,” said Viswanathan, Managing Director of Prosper Exports.
Workers too are worried about their livelihoods. “Production has slowed down. If this continues, jobs will be at risk. Tiruppur has no alternative employment for us,” said Thangaraj, a factory worker with over a decade of experience.
Tamil Nadu Chief Minister MK Stalin has accused the Centre of ignoring the plight of exporters. He wrote to Prime Minister Narendra Modi on August 16, highlighting the threat of mass layoffs in export-dependent sectors and urging a special relief package. On Tuesday, Stalin reiterated that while Tiruppur industries are reeling under tariffs, Gujarat refineries continue to benefit from cheap Russian oil.
