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IN INDIA'S KNITWEAR CAPITAL, A SURVIVAL ACT

October 10, 2025

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Mint Chennai

Hit by Trump's tariffs, textile manufacturers in Tiruppur are renegotiating deals while scouting for newer markets

- N. MADHAVAN

IN INDIA'S KNITWEAR CAPITAL, A SURVIVAL ACT

The manufacturing floor at Estee Exports India, a major exporter from Tiruppur. Even before the US hit India with 50% tariffs, Tiruppur was facing serious structural challenges.

(N. MADHAVAN)

It was not easy for N.C. John Garments Pvt. Ltd, a tiny textile manufacturer with ₹30 crore in revenue, to become a supplier to Walt Disney Company. Negotiations stretched for over three years; many apparel samples were exchanged. The company's sustainable manufacturing efforts worked in the end-it uses natural and recycled raw material and operates its plant entirely on renewable energy.

The American entertainment giant placed its first order with this Tiruppur-based company earlier this year.

For Alexander Job Neroth, N.C. John Garments' director, the joy was short-lived. On 27 August, US President Donald Trump punished India for buying Russian oil, slapping additional tariffs on textile imports and taking the rate up to 50%. The high tariffs made Indian textile exports uncompetitive compared to other Asian economies such as Bangladesh, Vietnam, Cambodia and Sri Lanka.

"We did not anticipate such high tariffs," said Neroth. But he couldn't let the Walt Disney order slip through as well. "I renegotiated with the buyer, offered a large discount, and continued to supply at wafer thin margins," he added.

This narrative runs across all companies in the town, known as India's knitwear capital. As much as 34% of Tiruppur's ₹44,747 crore in exports are generated from the US.

While Indian exporters do not want to lose their customers, the buyers cannot switch suppliers right away. In the minimum, it takes at least 90 days for buyers to vet new suppliers and then place orders. So, both the sides, in many cases, have renegotiated, keeping supplies intact, said A. Sakthivel, honorary chairman, Tiruppur Exporters Association, an industry body. Some buyers have even agreed to share the losses.

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