Case Study on Tirpur - Knitting Hub of India

TirCase Study of Tirupur

Contents 1. Prelude: 2. Tamilnadu – a Brief 3. Comibatore – Industrial District of Tamilnadu 4. Tirupur – Banian City 4.1 History (Supported by Video) 4.2 Industry around Tirupur 4.3 Composition of Industrial Growth 4.4 Infrastructure 4.5 Growth Factors (Supported by Video) 4.6 Incentives & Resources 4.7 Role of Support Institutions (Supported by Video) 4.8 Issues of Governance (Supported by Video) 4.9 Environment Issues (Supported by Video) 4.10 Innovations Achieved & Planned (Supported by Video) 4.11 Access to Venture Capital 4.12 Overall Assessment 4.13 Future Outlook References

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1. Prelude: The Multi-Fiber Arrangement (MFA) and other earlier agreements through quantitative restrictions govern the International trade in textiles and clothing for more than three decades now. One of the major milestones of the Uruguay Round was the Agreement on Textiles and Clothing (ATC) which provides for the dismantling of these restrictions. Under the ATC, the MFA restrictions are to be phased out over a ‘ten year’ period and are scheduled to end by the year 2005. The Global textile and clothing trade has increased by around 60 times, from less than $6 billion in 1962 to $395 billion in 2003. Of the total trade, more than 57 percent is trade in clothing and the rest in textiles. As world textile trade has increased by 30 times and trade in apparel has grown by more than 100 times, apparel trade has taken the lion’s share of total world Textile and clothing trade. Asia is a major player in the clothing sector which accounts for more than 27 percent of trade in Western Europe and North America. In fact such a hold in these markets by Asia in spite of Quota Restrictions highlights the opportunities for Asian Region in the Post MFA regime. In general, it is seen that the developing countries have a comparative advantage in textiles and clothing trade. This advantage helps them to look beyond exports of traditional primary commodities. Moreover,...