Tiruppur Exporters Fear 1.5 Lakh Job Losses, ₹ 12,000 Crore Revenue Hit as Us Tarifs Loom – CNBC TV18

Tiruppur, a Town in Western Tamil Nadu also know as India’s Knitwear Capital, FACES A Clouded Future as New Us Tarifs Risk disruptting its Export-Driven Economy. Nearly 40% of the Town’s Garments Shipments Go to the US, and A Fresh 25% Duty Hike Has Has Exporters Fearing Losses of Several Thousand Crores, Possible Factory Shutdowns, and Large-Seclant Job Cuts.

The Industrial Town Accounts for Nearly 68% of India’s Total Knitwear Exports, Generating an expert Turnover of ₹ 44,747 Crore in Fy25 and Empling Nearly One Milling Workers. The town is the backbone of India’s apparel expenses, Catering to Global Majors Such as Gap and Walmart. But with the us imposing an additional 25% tariff scheduled to kick in from aug

“Each order cycle is about 120 days. CNBC-TV18.

The US Market Contributes Nearly ₹ 12,000 Crore Annually to Tiruppur’s Exports, and The Immediati Blow is Alredy Visible, He Added.

Cost Pressures Mounting

Exporters are now Facing an impossible choice: eater absorb “When the first 25% tariff was announced, we were alredy 5–6% Costlier than competing neighbouring counties like vietnam and bangladesh. With the second 25%, it is simply not viable.

The ripple effects extended beyond balance sheets. The Knitwear Hub has About 2,500 Exporters and 20,000 Standalone Factories, with an ecosystem spanning knitting, dyeing, packaging, labelling, and sewing. Exporters warn that 1–1.5 lakh jobs could be lost if orders dry up. “Some units may survive by finding alternate boyers, but for many – comfortly that supplying expertly to the US -This Could Be the End,” Duraisamy Noted.

Also read: Us tarifs push Indian textiles into cost disadvantage; Market Share at Risk: Elara Capital

But he is Quick to add that the garment hub has been facing a shortage of labore, and that a part of the jobs loss can be absorbed by other units, especially that not dependent on the us as a market.

Adding to the pain, experts work on razor-thin margins due to intenses global competition. Core items like undergarments and baby suits are produced year-ear, while seasonal and fast-fashion items are supplied directly to big retailers. A Sudden Hike in Tariffs Makes These Contracts Unviable.

Exporters are exploring the UK, EU, and Australia as alternative destinations. The recently signed uk free trade agrement (FTA) and the expected eu fta offer some hope. But these markets, they say, cannot comments for the Sheer Scale of the Us Orders. “No other market can replace the quantities that the us absorbs. Same, “Duraisamy said, adding that only those who can absorb these costs will be able to survive.

At the same time, subramaniam struck a note of cautious optimism. Tiruppur, He Pointed Out, Offers Specialized Fashion and Knitwear manufacturing that few global hubs can replicate. “For fashion, they have to come here

For now, Nearly ₹ 2,000 – ₹ 3,000 Crore Women of Shipments are stuck in the pipeline, Awaiting Negotiations with importants.

Please for Government Support

The experts are seeking urgent relife. REPRESTENTIVES From Tea Have Alredy Met Tamil Nadu Chief Minister Mk Stalin, Who recently Wrote to the Center Pressing for Support to Protect TiruPpur’s Economy. Stalin has ulged the union government to provide an assistance package, Including Interest Subvention and Moratoriums, on the lines of what brazil extended to its expenses.

Exporters are calling for a two-year moratorium on loan repayments, a 20–30% Increase in Credit Limits, and Subsidies to Keep Factories Running. They are also requested rating agencies not to downgrade affected companies, which would make make access to creedit even harder.

These textile merchants are hoping that the center steps in with a relieve package. Otherwise, they are worked this single turn into a livelihood cris for a hub that only recently Recently Recovered from Shocks of Demonetisation, GST and the Covid-19 Pandemic.

For now, India’s Knitwear Capital Waits Anxious – Caught Between Global Trade Headwinds and the Hope of Swift Policy Support to Keep Its Looms Running.

Also read: India’s GDP Bold Slip Below 6% If 50% US Tarifs Continue: Goldman Sachs Economist