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How the India–EU FTA Can Transform Tiruppur’s Apparel Exports

How the India–EU FTA Can Transform Tiruppur’s Apparel Exports

Tiruppur, India’s largest apparel and ready-made garment exporting hub, stands as a powerful symbol of enterprise-led growth, employment generation, and global manufacturing excellence. The cluster currently exports apparel worth approximately USD 1.74 billion to the European Union, accounting for nearly 22.9% of India’s total textile and apparel exports to the EU. This performance underlines Tiruppur’s strategic importance in India’s export economy and its deep integration with European supply chains.

The apparel sector remains one of India’s most labour-intensive industries and a critical engine of employment. Tiruppur alone provides livelihoods to over one million people, with women comprising nearly 70% of the workforce. Over the years, the cluster has emerged as a backbone of employment-led export growth, while simultaneously establishing global leadership in sustainability, compliance, and responsible manufacturing practices.

What sets Tiruppur apart is its organically evolved and fully integrated fibre-to-fashion ecosystem. The cluster is home to approximately 2,500 registered exporters and over 20,000 ancillary units, encompassing a range of activities from spinning and knitting to processing, garmenting, and logistics. In the financial year 2024–25, Tiruppur achieved an export turnover of approximately ₹45,000 crore. Globally, the cluster is recognised for its strong adherence to environmental, social, and governance (ESG) standards. Significant investments have been made in zero-liquid-discharge processes, renewable energy adoption, water stewardship, and sustainable production systems, positioning Tiruppur as one of the most environmentally responsible textile clusters in the world.

Despite these strengths, Indian apparel exports continue to face tariff disadvantages in the European Union when compared to competing sourcing nations that enjoy preferential market access. These persistent tariff barriers have a direct impact on price competitiveness, order volumes, and long-term buyer commitments. Recognising this structural challenge, the Tiruppur Exporters’ Association (TEA) has consistently advocated for comprehensive zero-duty access for apparel products under the proposed India–EU Free Trade Agreement.

As negotiations between India and the European Union move closer to conclusion, TEA has expressed strong optimism and confidence in the visionary leadership of the Hon’ble Prime Minister of India to secure zero-duty access for the apparel sector. Such an outcome is critical for safeguarding large-scale employment, strengthening MSME-driven manufacturing clusters, and expanding India’s presence across all 27 EU member countries.

With Tiruppur already contributing nearly 30% of India’s apparel exports to the European Union, the signing of the India–EU FTA is expected to be a decisive turning point for the textile and apparel sector. The agreement has the potential to unlock higher export growth, drive deeper value addition, and reinforce India’s position as a reliable and sustainable sourcing destination. Tiruppur, in particular, is poised to emerge as one of the biggest beneficiaries, leveraging its scale, compliance standards, and integrated ecosystem.

The Tiruppur Exporters’ Association has placed on record its sincere appreciation for the Government of India’s focused and forward-looking efforts in advancing the India–EU Free Trade Agreement. These steps reflect a clear commitment to strengthening domestic manufacturing, boosting exports, and empowering employment-intensive sectors that form the backbone of the Indian economy.

Looking ahead, TEA firmly believes that the India–EU FTA will play a pivotal role in achieving the national target of ₹9 lakh crore in textile and apparel exports by 2030. More importantly, it will help lay a strong foundation for Vision 2047, positioning India as a global leader in sustainable manufacturing, inclusive growth, and export excellence.

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