State Of The Economy 2015

Weaving a growth story

The Tiruppur textile cluster has beaten the recession and emerged stronger, besting even international rivals

There is a marked change in the mood in the Tiruppur cluster since our last visit in December 2011. Back then, plummeting retail sales in Europe had led to a slump in orders in the textile town. To make matters worse, a January 2011 Madras high court order led to the closure of nearly 700 bleaching and dyeing units accused of releasing effluent into the Noyyal river, with local exporters losing business to Bangladesh. Garment manufacturers without integrated facilities dispatched fabric to dyeing units in other parts of the country. Units which couldn’t take the heat either scaled down or shut down. Back in 2011, Tiruppur had resembled a ghost town in the middle of a work week.