PERHAPS NO OTHER Indian city or town has been as affected by the US tariffs as Tiruppur, the country’s largest textile and knitwear hub that lies in the west of Tamil Nadu—a municipality that accounts for a third of all ready-to-wear garment exports from India, over half of all textile exports and nearly 70 per cent of all knitwear exports from this country. Just how severe, KM Subramanian, president of the Tiruppur Exporters’ Association, can tell you. He also runs KM Knitwear Private Limited, one of the largest manufacturing units in all of Tiruppur, which exports garments to several small-to- mid-range brands in the US as well as being the oldest suppliers to Primark in the UK. “The concept of one-city-one-business is well 15 SEPTEMBER 2025 adopted by Tiruppur. Last financial year, we completed ₹45,000 crore of export, which is approximately 68 per cent of India’s knit-wear exports, all from this one town. Apart from that, we are also manufacturing 30,000 crore worth of domestic garments,” says Subramanian. “Every year, our exports were growing by about 15 per cent, in terms of overall business growth for all of Tiruppur. We were therefore very confident that we would hit our target of ₹100,000 crore by 2030. But this new tariff, from 25 per cent to 50 per cent, has become another hurdle for our town to cross, which we shall.”
Nearly 35 per cent of all manufactured goods in Tiruppur are bound for America, which has also earned it a nickname: ‘Dollar City of India’. But the flow of the dollar has already begun to stagnate, with buyers in the US preferring to deal with many of India’s neighbouring manufacturers, such as Vietnam, Cambodia, Bangladesh and Sri Lanka, all of whose tariff rate re- mains at 25 per cent. “Export to America alone contributes about 35 per cent of Tiruppur’s business, which is about ₹12-15,000 crore overall. From that, we are set to lose ₹3,000-4,000 crore of busi- ness, another ₹3,000-4,000 crore of stock goods which are under production and goods currently in the shipping lines. It’s all been heavily affected,” says Subramanian, whose own garment com- pany shipped ₹600 crore of garments in the previous financial year, 30 per cent of which was to the US.
His American buyers are negotiating down. “I have already started giving 3-5 per cent discount for their stock goods. That’s the only way, sacrifice our margins so they lift the goods. That won’t help in the long run because these buyers can always look towards our neighbours to manufacture for cheaper,” he says.
Subramanian is aware of fellow business owners in Tirup- pur in deeper distress—entire production lines frozen in some factories, many others struggling to pay their workers. He estimates that Tiruppur’s textile business employs a million workers, 65 per cent of whom are locals. KM Knitwear alone has 5,000 workers on their books. “They will always be safe. I will not let them suffer,” he says.
In order for the others to bounce back, Subramanian is hop- ing for a lifting hand from the Central government in the form of subsidies. “That is one solution, for the short term. We have asked the government to give us a subsidy, like they had given us during the Covid-19 pandemic. Like interest suspension by 5 per cent. Like a manufacturing rebate of 5 per cent or emergency credit loans. That’s our plea to the Centre,” says Subramanian. “But in the long run, we hope that on October 14, there’s good news from the Supreme Court of the US, something favourable for India, that will cause a renegotiation in the tariffs. That is what we are hoping for.”
Subramanian, though, has great belief in Tiruppur, and its uncanny ability to adapt in the face of major setbacks. “We have overcome many, many fires. We came through Covid, then there was the major issue last year: shortage of containers and the steep rise in shipping costs. There was also the war in Ukraine that af- fected us badly. And now it is the case of the American president’s tariffs,” says Subramanian. “Always Tiruppur has managed to find a way and this time will not be any different. Mark my words, soon enough we will be back to recording a 15 per cent growth annually as a business.”
A spinning machine at KM Knitwear, Tiruppur
AT THE OTHER side of the country, in Noida, sewing machines are whirring more cautiously these days. Known as the ‘City of Apparels’, the threat of US tariffs isn’t loud here yet, but it is real. Noida depends heavily on Ameri- can orders, and the tariffs have already cast a shadow across its fac- tory floors. For thousands of workers, the fear is not just of shrink- ing exports but of decreasing salaries, with job losses looming if orders continue to fall.
Exporters express confidence in being able to tide through for now—even if it means offering hefty discounts to move their fin- ished products. Long days are spent on anxious calls with Ameri- can buyers, who now want even more discounts to continue trad- ing. “When 25 per cent tariffs were first imposed, our American buyers became cautious, waiting to gauge both demand and Trump’s next move. Some new orders were cancelled, and for existing stock, they demanded a 12.5 per cent discount, which we accepted. Now, with tariffs at 50 per cent, new orders have stopped completely, and buyers are pushing for even deeper price cuts,” says Lalit Thukral, president of the Noida Apparel Export Cluster and owner of Twenty Second Miles, which employs around 500 workers. He adds that since August 27, when the 50 per cent tar- iffs took effect, their American partners have already redirected about 20 per cent of the products they had sourced from India to countries like Bangladesh, China, Vietnam, and Sri Lanka.
India’s apparel export industry is worth about $16 billion—of which around $5.4 billion is tied to the US. In Noida alone, the in- dustry is valued at ₹55,000 crore, with around 20 per cent linked to the American market. Noida, Thukral says, houses around 4,500 apparel manufacturing factories, employing roughly 11 lakh people directly or indirectly, a majority of whom are women. “At the current rate of tariffs, we cannot survive. Noida’s textile indus- try has been built over years of hard work, but if this continues, it could all be lost in a matter of months. We will see at least 20 per cent of our factories in Noida shutting down if there is no relief in the next couple of months, and that will mean job losses in lakhs,” Thukral says.
Workers at Meenu Creation LLP, Noida, September 1, 2025 (Photo: Ashish Sharma)
Aman Peshawari, the CEO of Meenu Creation LLP, an apparel firm based in Sector 65, Noida, promises to protect employees, yet the industry knows that without a trade deal or policy relief soon, lost orders and cost-cutting may ripple across the city’s garment hubs.“The scenario is still fluid. Buyers are asking for discounts, and our profits have taken a hit. There have been some talks of job cuts, but right now, we haven’t had to let go of anyone. Our prime focus at present is efficiency—how to utilise our resources best to scale up production for other countries,” Peshawari says. Meenu Creations employs around 5,000 people, mostly migrants, and supplies to US retail chains like QVC and Coldwater Creek.
“The US makes up only a small part of our business, but it car- ries significant value,” Peshawari adds. “American buyers place bulk orders, unlike European clients, who order smaller, frag- mented quantities. That’s why Trump’s tariffs hit us so sharply.”
Exploring alternative markets, exporters say, is not as simple as it sounds. An exporter who has worked with the US for decades understands the price points, fabrics, machinery requirements, and market trends—knowledge that cannot be transferred overnight to another region. Europe is different, the Middle East is different.
“It took us nearly four decades to build the US market. But, if necessary, we will look to other European countries. In fact, we have already started that process. A buyer-seller meet is scheduled in London on November 18, after which we plan to visit Belgium and Dubai as well,” Thukral says.
Industry leaders are appealing to the government for urgent
intervention, warning that without support, thousands of work- ers and their families in Noida could face job losses.“We thought India could be the alternative to China in apparel exports. But these tariffs are breaking our backbone. Growth has stalled, and the domestic market cannot absorb the volume we used to send to the US. We need a 10-12 per cent direct subsidy to stay competi- tive,” says Peshawari. Thukral adds that exporters should also get a one-year income-tax waiver. “We cannot afford to lose our US buyers to Bangladesh, Vietnam, or China. It’s easy to lose a client, but very hard to win them back,” he says.
On the factory floor, the stakes are deeply personal. “During Covid, sir took care of all of us and didn’t lay off a single employee. I’m confident he will make sure no jobs are lost here now either,” Dinesh Pandey, the HR manager of Meenu Creation LLP, says, as workers in the background give finishing touches to several garments before they are ready to be shipped out.
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