When Tamil Nadu’s Dollar Town hangs by a thread

Once the fabric of India’s export story, Tiruppur now stitches its future with fragile yarn stretched thin by geopolitics and shrinking orders

- SHINE JACOB

Tiruppur is known as India’s knitwear capital, sometimes even called Dollar Town for its export-driven economy. Tucked away in the heart of the city is the Khaderpet wholesale apparel market, a living stage that reflects the mood of this export hub, often jolted by global geopolitics.

Though catering largely to domestic trade, the market mirrors the state of export manufacturing in Tiruppur. The narrow lanes of Khaderpet, once buzzing and splashed with coloured fabrics, surplus stock, and shop signs flaunting export connections, now look deserted. An outsider would usually be greeted by lively chaos here, but the energy has dimmed — a direct fallout of dwindling US export orders for the coming summer season.

The reasons: A likely ₹2,000 crore hit to Tiruppur exporters this year, with the US accounting for more than ₹15,000 crore of their total revenue; thinning Trump’s 50 per cent tariffs.

He adds that exporters are still shipping to American buyers, choosing to absorb losses for the sake of long-term ties. “Buyers are seeking heavy discounts — 15-20 percent to cover the penalties. On top of that, Bangladesh and Vietnam are tough rivals. Still, we're continuing with summer orders, as companies have already sunk big investments into the supply chain,” says Sakthivel.