Tiruppur Garment Exports Poised for Major Growth Under New India-US Trade Deal
The textile hub of Tiruppur in Tamil Nadu is on the cusp of a significant export boom, with industry leaders projecting that shipments to the United States will double to approximately Rs 30,000 crore over the next three years. This optimistic forecast follows the finalization of the first phase of the India-US bilateral trade framework, which was announced on Saturday.
Trade Framework to Fuel Exponential Growth
K M Subramanian, President of the Tiruppur Exporters' Association, welcomed the agreement, stating it holds immense significance for the region's economic trajectory. "This deal will give a huge growth for Tiruppur over the next 5 years," Subramanian emphasized. He noted that current garment exports from Tamil Nadu to the US stand at about Rs 15,000 crore annually, a figure expected to reach Rs 30,000 crore by 2027.
The framework involves mutual reductions in import duties on various goods, designed specifically to enhance two-way trade between the nations. Subramanian, who also serves as founder-chairman of K M Knitwear Pvt Ltd, anticipates the tangible effects of this agreement will become visible within the next three months. "After that we will be able to see a good growth for garments made in India that will be exported from Tamil Nadu. Tiruppur's growth will be on a higher trajectory," he added.
Massive Job Creation Expected in Textile Sector
Beyond export revenue, the trade deal is projected to generate substantial employment opportunities. The industry currently employs around 10 lakh people in the region. With expanded export orders and increased production capacity, an additional 5 lakh jobs are expected to be created over the next three to five years.
This represents a 50% increase in the workforce, highlighting the deal's potential to significantly boost local economies and livelihoods in Tamil Nadu's textile belt.
Competitive Advantage and Order Diversion
M Rathinasamy, founder of Starrlight Exporters, another Tiruppur-based entrepreneur, explained how the agreement will shift competitive dynamics. "Earlier, some of the orders were going to Bangladesh and other countries. After this deal, we will be getting more orders from the United States," Rathinasamy stated. He expressed confidence that the sector would receive a large volume of new orders directly attributable to the revised trade terms.
The Tiruppur Exporters' Association, which represents approximately 1,135 knitwear exporters operating in Tiruppur and neighboring regions, plays a crucial role in coordinating this export-focused industry. The association's members primarily specialize in cotton knitwear, a product category expected to see substantial demand growth under the new framework.
Industry representatives unanimously agree that the India-US trade agreement marks a pivotal moment for Tiruppur's textile sector. The combination of reduced tariffs, increased market access, and competitive repositioning against other exporting nations creates a perfect storm for growth. As implementation progresses, all eyes will be on this Tamil Nadu hub to deliver on its projected doubling of exports and massive job creation over the coming years.
