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In a visionary address at the Textile Leaders’ Conclave 2025 in Ahmedabad, Kulin Lalbhai, Vice Chairman of Arvind Ltd., called for the Indian textile sector to be declared a ‘national priority’—an urgent imperative, he argued, for India to emerge as a global powerhouse in the textile and apparel value chain. His speech underscored an important moment for the industry, urging stakeholders, policymakers, and entrepreneurs alike to “not just participate in, but lead the global textile game.”
The conclave, jointly hosted by JITO Ahmedabad and CII Gujarat, brought together leading textile industrialists, policymakers, investors, and supply chain experts to discuss strategies for strengthening India’s global competitiveness in textiles. Against the backdrop of evolving global sourcing patterns and a bullish domestic market, Lalbhai’s address worked as a rallying cry for transformational change.
Domestic demand meets global realignment
Lalbhai said, India is witnessing a rare convergence of macroeconomic tailwinds: growing domestic consumption, favorable global demand reallocation, and strong government backing through Production Linked Incentive (PLI) schemes, infrastructure investments, and FTAs with markets like the UAE and Australia. These elements, he said, form the perfect springboard for India to seize global leadership in textiles—a $1.4 trillion industry currently led by China but increasingly open to realignment due to geopolitical shifts and rising ESG compliance costs.
“This is a golden window—perhaps a once-in-a-generation opportunity,” Lalbhai said. “We must respond with scale, speed, and vision.”
Gujarat at the helm, from cotton yarn to fashion capital
Lalbhai positioned Gujarat—India’s largest cotton-producing and textile-exporting state—as the nucleus of this transformation. Traditionally known for spinning and yarn, the state must now focus aggressively toward value-added segments such as apparel, technical textiles, and fashion-led exports.
“Gujarat is poised to be the engine of India’s textile leap, but we must go beyond volume to value,” he noted, stressing the need for vertically integrated supply chains, state-of-the-art garmenting parks, and research-backed product innovation.
Three pillars for India’s textile rise
Lalbhai’s blueprint for global competitiveness was centered around three imperatives, all aligned with India’s broader developmental vision of Viksit Bharat@2047.
Massive expansion of garmenting capacity: India must move beyond raw material and fabric exports to become a major exporter of finished garments. Lalbhai emphasized the need for large-scale, globally compliant apparel clusters with plug-and-play infrastructure, skilled labor, and digitized production lines.
Increased adoption of Man-Made Fibres (MMF): With global fashion brands increasingly favoring MMF-based apparel due to durability and circularity concerns, India must diversify beyond cotton. “If we want to be relevant in global markets, cotton alone won’t cut it,” Lalbhai said, calling for balanced incentives and ecosystem development for polyester, viscose, and recycled fibres.
Speed and sustainability as core competencies: “Lead times and lifecycle impact will define winners,” Lalbhai stated. He advocated for nearshoring garment hubs, fast digital sampling, and green technologies such as waterless dyeing and renewable-powered plants. Sustainability, he argued, must be seen not as compliance, but as a competitive advantage.
A new textile vision
A central theme of Lalbhai’s address was inspiring the next generation to see textiles not as a legacy sector, but as a sunrise industry. “The future belongs to dreamers,” he said, calling on youth to reimagine textiles through design, tech, and entrepreneurship.
He also advocated for decentralizing manufacturing beyond traditional clusters like Tiruppur and Ludhiana. Smaller cities across UP, Odisha, MP and Assam offer untapped potential for employment, local entrepreneurship, and inclusive growth. “A national textile vision must be pan-India in spirit,” Lalbhai stressed.
Making textiles a national mission
As the Textile Leaders’ Conclave concluded, Lalbhai’s speech echoed as a call for collective ambition. For India to capture a greater share of the global textile trade—currently just 4 per cent compared to China’s 33 per cent—it must overcome structural inefficiencies, skill shortages, and fragmented value chains. Lalbhai’s message was clear: “India’s textile sector must be treated as a strategic lever of economic and geopolitical influence. Let’s elevate it to the level of national priority.” With coordinated investments, policy clarity, and innovation at scale, India has the potential not just to lead but to reshape the global textile map.
Thus as India eyes its centenary in 2047, the textile sector stands at a strategic inflection point. The roadmap outlined by Lalbhai offers not just a business plan, but a national mission—to reclaim India’s historical stature as a global textile innovator, employer, and exporter. The question now is whether the nation will rise to the moment with the urgency, unity, and scale it demands.
In the glossy world of fashion—where aesthetics and storytelling reign—the industry's financial underpinnings are quietly coming undone. The global fashion sector is facing an intensifying liquidity crisis, threatening to unravel the very fabric of how clothes are made and sold. At the heart of this crisis lies a historically transactional, power-imbalanced business model—one that is proving alarmingly ill-equipped to withstand the shocks of a changing global economy.
The crisis isn’t new, but its severity has escalated over the years. Extended payment cycles, soaring operational costs, tariff upheavals, and global supply chain disruptions have exposed the vulnerabilities of fashion’s legacy structures. Yet, while the threats are real and rising, a growing coalition of voices within the industry is calling for an overdue shift—from brittle transactionalism to a model built on collaboration, shared responsibility, and transparency.
Legacy models on life support
Fashion's business relationships have long been adversarial. Retailers and brands, traditionally the powerbrokers, often dictate unfavourable terms to suppliers—lengthy payment cycles, unilateral cancellations, and razor-thin margins. For manufacturers, this means fronting the cost of raw materials and labour, only to be paid months later. Azfar Hasan, CEO of Matrix Sourcing, doesn’t mince words, “Factories are filing claims for financing every other day, and banks are pulling out of this sector because it’s considered high risk.” This structural dysfunction, once papered over by steady demand and cheap capital, is now untenable.
Five forces squeezing fashion’s cash flow
A perfect storm is brewing, driven by a confluence of pressures that are crushing the financial flexibility of fashion players across the value chain:
1. Working capital paralysis: Retailers are struggling just as much. A Hackett Group survey revealed negative working capital metrics in the sector for the first time in a decade. With stagnant revenues and rising receivables, many retailers simply cannot pay suppliers on time. As Brad Ballentine of MAS Acme notes, “Inefficient use of working capital comes from buyers and suppliers not sitting down and talking about how to make the business better.”
2. Disrupted global transit: Geopolitical conflicts and logistical blockages—particularly in the Red Sea, Suez, and Panama Canals—have lengthened delivery timelines and tied up capital in transit. According to Drewry’s World Container Index, freight rates have jumped 173 per cent since November 2023. These shipping delays translate into higher costs and longer working capital cycles for all parties.
3. Tariff shockwaves: Tariffs are rapidly reshaping sourcing strategies. The US reimposed steep tariffs on Chinese apparel, pushing average duties to a record 69.1 per cent in May 2025. As a result, US apparel imports from China fell to $556 million—their lowest monthly level in 22 years.
Table: US apparel imports from China ($ mn)
|
Month/Year |
Value (USD Million) |
Notes |
|
Jan 2025 |
$1,690 |
Pre-tariff stock-up |
|
Apr 2025 |
$796 |
Tariff impact begins |
|
May 2025 |
$556 |
Lowest level in 22 years |
Source: USITC, May 2025
4. Rising input costs: Manufacturers are hit by volatile and rising costs of labour, energy, and raw materials. Cotton, for instance, stood at $0.92 per pound in early 2024, up sharply from a pre-2021 average of $0.65. These costs often can’t be passed down the chain, squeezing margins.
5. Inventory overhang: Retailers are also weighed down by bloated inventories. In February, H&M reported an 11 per cent YoY rise in inventory levels, driven in part by Red Sea shipping delays. Excess stock means capital is frozen, warehousing costs spike, and markdowns proliferate—hurting profitability.
A culture resistant to change
Despite the clear distress signals, the industry remains slow to adopt new operating models. Decades of mistrust, power asymmetry, and risk aversion hinder progress. Buyers are reluctant to absorb the upfront costs of new approaches, even if they promise long-term gains. Moreover, the deep transparency required for true collaboration—such as sharing point-of-sale data or factory financials—remains a cultural taboo.
Collaboration and flexibility is the way forward
A growing number of industry leaders advocate for a paradigm shift towards collaboration, flexibility, and transparency. This new approach promises enhanced efficiency, reduced working capital, and improved profits for all stakeholders.
Optimized working capital: Strategies like postponement of raw materials and joint business planning can significantly reduce capital tied up in the supply chain. Ballentine highlights cases where a "2 per cent increase in direct cost, channeling supply flexibility," led to "as much as a 10 per cent increase in gross margin."
Shared risk and rewards: Moving beyond a ‘nobody takes responsibility’ culture, collaborative models foster shared ownership and distributed risks, as outlined in reports like ‘Under the Banyan Tree’.
Transparency as a driver: True transparency, where factories share balance sheets and retailers provide point-of-sale (POS) data, is crucial. This allows both parties to understand mutual financial realities and identify opportunities for shared gains, as seen with companies like Gym Shark and New Balance.
Sustainability & innovation: A more stable and collaborative supply chain inherently reduces waste from overproduction and cancellations, aligning with growing consumer demand for sustainable and high-quality products. Agile models, exemplified by fast fashion players like Zara, demonstrate how quick response times and reduced inventory can lead to success.
Table: Benefits of supply chain collaboration
|
Aspect |
Current transactional model |
Proposed collaborative model |
|
Working Capital Use |
Inefficient, capital tied up |
Optimized, reduced strain |
|
Risk Burden |
Primarily on suppliers |
Shared between partners |
|
Trust Level |
Low, adversarial |
High, transparent |
|
Speed & Responsiveness |
Hampered by rigidity |
Enhanced by flexibility |
The stakes couldn’t be higher
The fashion industry has reached an inflection point. The existing model—built on squeezing suppliers and prioritizing short-term gains—is collapsing under its own weight. The alternative is clear: reimagine the supply chain as a partnership, not a battlefield.
This transformation won’t be easy. It requires unlearning decades of ingrained behaviours and building new capabilities in forecasting, financing, and transparency. But if the industry hopes to survive—and thrive—in a volatile world, the path forward must be stitched together with trust, shared vision, and mutual accountability. As Hasan puts it, “There’s no choice left. Either we build this together, or we lose it all—alone.”
Tonello is set to launch a captivating new capsule collection titled ‘Urban Flora’ at Kingpins New York. Highlighting the company's continuous commitment to responsibility, circularity, and aesthetic innovation within the realm of garment dyeing, the collection is inspired by a blend of introspection and vibrant street culture, Delving into the fascinating intersection of nature and the urban environment, it embodies a fresh sense of sophistication, seamlessly merging botanical expression with the raw, dynamic energy of city life.
At the core of this collection lies Wake, Tonello’s exclusive dyeing technology. As the first of its kind, Wake relies entirely on plants and vegetable waste. Peels, husks, berries, and flowers are meticulously dried, infused, and applied to garments without the use of chemical additives. This revolutionary process not only ensures safety for both people and the planet but also celebrates the inherent beauty and natural origins of color.
Expanding its chromatic palette, the collection also integrates coloring earths: mineral pigments historically revered in medieval frescoes and Renaissance masterpieces. These ancient elements are reimagined through a modern, urban lens, lending remarkable depth and richness to the collection's visual language, bridging historical artistry with contemporary design. In Urban Flora, Wake takes on a new persona. While retaining its botanical roots, it now expresses a richer, more grounded palette - colors shaped by the city’s raw surfaces, shifting light, and subtle imperfections.
This visionary approach is further amplified through a special collaboration with Cone Denim. The partnership features a curated selection of ten fabrics chosen to elevate the collection's core values. The lineup includes 100 per cent cotton, cotton/Tencel and Tencel Modal blends, recycled post-industrial waste (PIW) cotton, and a range of ecru bases. All fabrics are presented in their raw, natural state to emphasize material integrity. The thoughtful inclusion of the Pride Rainbow Selvage adds a meaningful layer, celebrating both aesthetic excellence and ethical values.
At a brainstorming session on ‘Credit Access Issues in the Textile Sector,’ Neelam Shami Rao, Secretary, Ministry of Textiles, urged industry stakeholders to develop a textile-centric credit rating system to boost credit flow in the sector.
Chaired by Rao, the session brought together industry representatives, financial institutions, and policy stakeholders to discuss potential solutions. The Ministry of Textiles has already conducted a detailed study on the credit access challenges confronting the textile sector, particularly its Micro, Small, and Medium Enterprises (MSMEs). A comprehensive document outlining these issues and proposing solutions, capturing consistently reported industry concerns, has been shared.
Organized by the Confederation of Indian Textile Industry (CITI), the session heard industry representatives highlight difficulties in securing working capital. They noted that banks often lack a nuanced understanding of the textile sector's specific characteristics, such as long payment cycles and job work arrangements. These sector-specific nuances were identified as areas requiring better recognition by financial institutions to enhance credit accessibility.
A significant hurdle identified was the prevailing risk perception of the textile industry under existing credit rating systems, which underscores the urgent need for a dedicated, textile-specific framework.
Discussions also touched upon existing funds designed to support sustainable production, including those for energy efficiency and water management. Stakeholders suggested consolidating these into a single "Green Fund" to streamline investment support for the textile sector, and industry members have been invited to submit their suggestions on this proposal.
Regarding the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme, while operated by the Department of MSME, the textile industry reported challenges in accessing it, leading to low utilization by textile MSMEs. It was recommended that disbursements under this fund be closely monitored to improve its efficiency and relevance for the sector.
Finally, acknowledging the widespread awareness and procedural hurdles related to existing credit schemes, the establishment of cluster-level credit facilitation centers was proposed as a way to simplify access for businesses.
BranDNA has collaborated with Creas F&C to introduce the Italian premium sportswear brand Hydrogen to the Chinese market. This collaboration marks a timely entry into China’s rapidly expanding outdoor sports sector, aligning Hydrogen with evolving local consumer trends.
Founded in 2003 by fashion designer Alberto Bresci, Hydrogen is recognized as Italy’s first premium performance sportswear brand. It uniquely blends high fashion aesthetics with professional sports functionality, often serving as a ‘secret weapon’ for elite athletes. Known for its iconic skull logo and bold designs, Hydrogen embodies individuality and a rebellious spirit, appealing to consumers who seek an avant-garde style and reject mediocrity.
BranDNA plans to implement localized innovations to maximize Hydrogen's opportunity in China. James Chen, CEO, BranDNA, states, this is the ideal timing for Hydrogen to enter China. Chinese consumers are demanding greater personalization and fashion sense in outdoor and sportswear, and Hydrogen perfectly meets this demand.
BranDNA and its predecessors have represented over 40 global brands in China, including current brands like Body Glove, Dakine, 7 For All Mankind, BCBGMAXAZRIA, Ben Sherman, Porsche Design, Bric’s, and Borghese.
According to the ‘2024 Sports & Outdoor Industry White Paper’ by Xiaohongshu (RED), the rise of fashionable sports-outdoor gear is a top trend in China, with products increasingly blending into everyday lifestyles. Hydrogen’s trekking line caters to the refined ‘quiet outdoor’ Gorpcore styles resonating with global fashion movements, while its Active Outdoor collection, designed for trail running, represents its most energetic and performance-driven offering.
Harry Woo, Senior Vice President, Creas F&C, avers, BranDNA’s strong track record in developing premium fashion and lifestyle sports brands in China, such as Roberto Cavalli, Nike 360, and Nike Golf, made them the ideal strategic partner for Hydrogen. This collaboration will not only drive Hydrogen’s growth in China but also support its broader global expansion, he adds.
Hydrogen’s official China launch is set for Spring/Summer 2026. BranDNA specializes in providing end-to-end management for international fashion and beauty brands entering China, covering retail, wholesale, product development, marketing, HR, and back-office operations.
Founded in Padua, Italy, in 2003, Hydrogen was acquired by Creas F&C Group in 2022 and now has a presence in 25 countries worldwide.
Future of the iconic UK high street chain with 281 shops, Claire's hangs in the balance as reports suggest up to a third of its stores could be shuttered. The popular accessories retailer is facing ‘significant’ store closures amidst mounting financial difficulties, according to recent reports.
Claire's has brought in Interpath Advisory to consult on a potential sale and restructuring of its UK operations. Having stores in major cities like Birmingham, the retail chain is reportedly at risk of closing approximately 90 stores in a deal aimed at salvaging the remainder of the business.
A significant driver of these concerns is a looming $440 million debt repayment due in December 2026. The company's financial struggles are evident in its most recent accounts, which show a net loss of $5.8 million in the year ending March 2024. The retailer’s turnover also decined to $169 million. Directors cited ‘general economic conditions like inflation, currency rates, labor supply and transportation capacity’ as factors impacting the company's operating and product costs.
Adding to the complexity, advisors at Houlihan Lokey and Alvarez and Marsal are reportedly working on a separate deal that could see Claire's American operations seek bankruptcy protection for the second time in seven years.
This potential wave of closures for Claire's mirrors a broader trend impacting the retail sector. Latest data on store closures indicates, In CY 2024, 13,479 shops across high streets, main shopping destinations, towns, and small shopping parades permanently closed their doors. This marks a significant 28.4 per cent increase from the 10,494 closures recorded in 2023. Independent retailers, typically small businesses operating between one and five stores accounted for 84.1 per cent of all store closures in 2024, with their closures soaring by over 45 per cent, according to the Centre for Retail Research.
The challenges facing Claire's underscore the volatile landscape for traditional brick-and-mortar retailers grappling with economic pressures and evolving consumer habits.
Tamil Nadu is positioning itself as a prime destination for significant investments from Taiwanese companies in the burgeoning technical textiles sector, said V Arun Roy, Secretary of Industries, Investment Promotion and Commerce for the state of Tamil Nadu at the Tamil Nadu – Taiwan Technical Textiles Partnership Summit in Coimbatore.
At the seminar organized by the Confederation of Indian Industry (CII), the Tiruppur Exporters Association, and the Tamil Nadu government, Roy highlighted the state's strong existing ties with Taiwan. He noted, Taiwanese firms have already made substantial investments in Tamil Nadu's electronics and footwear industries. Since 2021, the Tamil Nadu Government and Taiwanese companies have inked 21 MoUs, representing a total investment of $1.4 billion in the state.
Roy emphasized, technical textiles represent the ‘next potential sector’ for such collaborations. He specifically pointed to the PM MITRA Park at Virudhunagar, which will feature dedicated zones and plug-and-play facilities for technical textiles. He urged both Indian and Taiwanese companies to consider investing in this park.
The region's existing textile strength provides a solid foundation. Garment exports from the Tiruppur and Coimbatore districts grew by 20 per cent in FY24-25, reaching approximately Rs 45,000 crore. This growth momentum continued into the first quarter of the current fiscal year, registering a 12 per cent increase, with exports projected to rise by 15 per cent this year. However, the needs to tap opportunities in technical textiles and man-made fibers (MMF) sectors as these offer more opportunities in value addition, Roy emphasized.
Maheshwari Ravikumar, Director – Handlooms. Tamil Nadu, outlined several government initiatives to boost the sector. The Tamil Nadu Government is in the process of issuing an order to offer a capital subsidy for the processing sector, she stated. Additionally, the state plans to introduce technical textile courses in polytechnics and industrial training institutes. The government is also currently reviewing recommendations from a report submitted by Wazir Advisors aimed at promoting sportswear and athleisure production within the state.
The Summit facilitated over 55 one-on-one business meetings between Indian and Taiwanese companies in Coimbatore on Monday. These direct interactions are expected to pave the way for future partnerships and investments in this high-growth sector.
Parent company of the emerging streetwear house Formrunner Apparel Inc, FBC Holding, Inc has entered into a significant strategic collaboration with rapidly growing and culturally influential streewear brand dzerted to provide the brand’s merchandize at FBCD’s flagship retail store-Studio 22 in Chandler, Arizona.
This partnership provides customers with immediate access to a brand previously only available online. The collaboration extends beyond mere shelf placement, forming a strategic alliance between two purpose-driven fashion labels. Formrunner Apparel and dzerted are already planning an exclusive, limited-run co-branded capsule collection. The initial drop will feature a signature clothing piece and a matching accessory, embodying the creative DNA of both brands. This collection will be available both in-store and online, creating new revenue streams and broadening exposure for FBCD’s expanding retail and e-commerce ecosystem.
Lisa Nelson, President and CEO, FBC Holding, Inc, says, this partnership is a high-impact win for the company which is not only strengthening its bottom line but also increasing customer foot traffic, and injecting fresh energy into its brand experience—all while aligning with a powerful force in the streetwear community.
The timing of this partnership is strategic, as the global streetwear market is projected to grow at a Compound Annual Growth Rate (CAGR) of 9.4 per cent. Valued at $187.5 billion in 2024, the market is expected to exceed $230 billion by 2030, driven by limited-edition drops, social media influence, and a generational shift towards expressive, urban fashion.
With its clear strategy and growing retail footprint, FBC Holding, Inc is well-positioned to capitalize on this trend. Studio 22’s success with exclusive, fast-moving inventory, particularly brands like dzerted, validates FBCD’s competitive edge in both local and digital marketplaces. This success offers current and prospective investors an inside look at a thriving, culture-forward industry.
The collaboration aligns with FBCD’s mission to build a vertical fashion ecosystem that includes in-house labels, exclusive partnerships, and direct-to-consumer platforms. Dzerted’s proven audience engagement, product sell-through rates, and brand equity immediately contribute measurable value to this ecosystem. Furthermore, the introduction of dzerted inventory has already led to increased foot traffic, higher in-store conversion rates, and a boost in retail revenue at Studio 22, solidifying its reputation as a must-visit fashion hub in Arizona. This partnership is anticipated to have a material impact on future quarters, especially with the upcoming co-branded capsule collection.
Once a paragon of India’s textile prowess, Tiruppur—the country’s undisputed ‘Knitwear Capital’—is confronting a multi-layered crisis that could unravel decades of industrial growth. While the surface numbers tell a story of booming trade and robust exports, ground realities reveal serious structural flaws threatening the very future of this iconic manufacturing cluster.
As India sets its sights on achieving $100 billion in textile exports, the fate of Tiruppur becomes central to this vision. But unless urgent corrective action is taken, the region could go from a global export engine to a cautionary tale of missed opportunities.
Growth meets ground reality
Tiruppur’s performance in FY25 seems, at first glance, enviable. Knitwear exports reached a record Rs 39,618 crore, up nearly 20 per cent from the previous fiscal year. Domestic consumption added another Rs 30,000 crore to the region’s textile economy. With over 20,000 production units and more than 600,000 direct workers, the cluster’s sheer scale is impressive.
Table: Tiruppur knitwear at a glance
|
Fiscal Year (FY) |
Knitwear exports (Rs cr) |
Growth (%) |
|
2020 |
27,280 |
- |
|
2024 |
33,045 |
21.13% |
|
2025 |
39,618 |
19.89% |
Yet, beneath these numbers lie deep-rooted challenges—outdated machinery, labor shortages, unfair international competition, and policy mismatches—all of which threaten to choke future growth.
What’s holding tiruppur back?
Technology lag and MSME constraints: Despite their critical role in exports, most of Tiruppur’s textile units operate with outdated machinery. Industry estimates indicate at least 50 per cent of capital investment is needed to modernize. Of the 2,500 export units in Tiruppur, nearly 2,400 are MSMEs contributing only half the cluster’s export earnings. While the top 100 exporters have the capital to innovate and expand, the rest struggle to stay afloat in a rapidly evolving global market.
The uneven global playing field: India’s textile exporters face stiff competition from countries like Bangladesh, which enjoy duty-free access to key Western markets as part of their LDC status. Furthermore, these competitors receive more generous state subsidies—on electricity, machinery, and logistics—making their products cheaper and more appealing to international buyers.
Labor woes and rising wage pressures: The industry is experiencing a persistent labor shortage, with an estimated deficit of 100,000 to 150,000 workers. This problem has worsened post-election, as migrant laborers delay or avoid returning to the region. Adding to the challenge, wage levels in Tiruppur range from Rs 15,000 to Rs 18,000 per month—nearly double that of competitors like Bangladesh, where wages can be as low as Rs 8,000. This cost burden erodes price competitiveness on the global stage.
Infrastructure limitations disincentivize buyers: Tiruppur lacks direct international air connectivity. Global buyers from markets like New York or London must fly into Chennai or Bengaluru, then travel hours by road to reach Tiruppur. The absence of seamless logistics not only adds time and cost but also reduces the frequency of factory visits and increases dependency on middlemen.
Government schemes falling short
Despite a slew of government initiatives, tangible benefits for Tiruppur’s MSMEs remain limited. For example, the National Technical Textiles Mission has seen only Rs 509 crore spent out of Rs 1,480 crore as of January 2025. The Technology Upgradation Fund Scheme (TUFS) remains dormant, with no updates since March 2022. The PLI Scheme targets large-scale MMF producers, excluding most of Tiruppur’s cotton-centric MSMEs due to its high Rs 100 crore investment threshold. These gaps in policy design and execution leave smaller players stranded, with little incentive or means to modernize.
Charting a new course
To keep Tiruppur from slipping into stagnation, a comprehensive, region-focused strategy is imperative.
To begin with it needs MSME-focused technology upgradation scheme. That means, a revamped TUFS tailored to MSMEs is essential—one that provides credit-linked subsidies, reduced collateral requirements, and easy access to machinery finance. Without this, modernization will remain a pipe dream for smaller units.
It needs aggregation and workforce development. Encouraging cluster-based approaches—such as MSME cooperatives and producer groups—can help smaller units pool resources, bargain better, and access new markets. Simultaneously, dedicated skill centers should be set up within Tiruppur to create a steady supply of trained labor aligned with market needs.
Tiruppur also needs either a direct international airport or an overhauled Coimbatore airport with faster last-mile road and rail connectivity. Such upgrades would drastically improve buyer access and improve global confidence. Meanwhile India must negotiate bilateral trade agreements that replicate the benefits LDCs enjoy in key markets. Additionally, subsidies for energy, digitalization, and sustainable practices will help Tiruppur compete more equitably with its international peers.
Moreover, financial literacy, digital adoption, and corporate governance training for MSMEs can unlock new funding avenues and improve transparency. Special loan windows with low-interest rates and longer tenures can empower these businesses to scale.
Why Tiruppur matters to India’s textile dream
Tiruppur isn’t just a local success story—it’s a national strategic asset. Contributing 90 per cent of India’s cotton knitwear exports, it plays a critical role in India’s journey toward a $100 billion textile export target. But this trajectory is not guaranteed. With aging machinery, rising costs, and global headwinds, Tiruppur's competitive advantage is fraying. The next five years will be crucial—not just for the cluster’s survival, but for the credibility of India's textile policy itself.
In this race against time, India must stitch together a policy fabric that supports scale, sustainability, and inclusive growth. Only then can Tiruppur retain its crown—and help India become a true global leader in apparel and textiles.
For decades, the fashion and apparel world has returned to a seemingly settled argument: does mass production sacrifice quality, and is Made-to-Measure (MTM) the only path to excellence? The answer, long framed as a straightforward binary, is now being re-examined in the light of evolving manufacturing models, technological advancements, and a renewed focus on human capital. Beneath the surface lies a far more nuanced truth—one that pivots less on format, and more on investment, intent, and execution.
A tale of two philosophies
At the heart of the debate is a philosophical divergence in production logic. Mass manufacturing prioritizes efficiency—streamlined operations, standardized processes, and economies of scale. This system powers much of the global fashion industry, churning out garments at a fraction of the cost of custom apparel. However, it often attracts criticism for promoting speed over skill, and volume over value.
MTM, by contrast, embodies an artisanal approach. With its bespoke fittings, skilled tailoring, and time-intensive production cycles, it’s considered the gold standard of craftsmanship. ‘Fit, finesse, and finish’, says one industry veteran, aren’t just incidental—they’re built into the process. But is that distinction as definitive as it once seemed?
The mass production myth
Contrary to popular belief, mass production does not inherently preclude quality. It is, however, deeply influenced by the operational choices and priorities of the manufacturer. “Mass production and high quality can coexist,” affirms a seasoned production head at a global apparel brand. “But only if we invest in our people and choose to aim higher.”
The primary challenge with large-scale production lies in its vulnerability to systemic flaws. One mistake in an early stage of the production line—be it in cutting, stitching, or quality control—can replicate across thousands of units. This is what leads to the frequent product recalls that plague fast fashion brands. Yet, this vulnerability is not inevitable.
Advanced manufacturers have shown that a combination of smart automation, continuous upskilling, and rigorous quality protocols can deliver products that rival bespoke tailoring. When individual sewers are trained not just to perform a task, but to understand why precision matters, the outcome shifts dramatically.
The economics of accessibility
Much of mass production’s appeal lies in its economics. By distributing fixed costs across high volumes and leveraging standardized designs and machines, the per-unit cost of garments drops sharply. This makes clothing accessible to a wider demographic and fuels the explosive growth of global fashion markets.
In contrast, MTM garments command a premium—often five to ten times higher than their off-the-rack counterparts. The higher price accounts for personalized fittings, skilled labor, and, frequently, a blend of machine and hand-sewn craftsmanship. For many consumers, particularly in mature markets, the allure lies in individuality and perceived superior quality.
The divergent paths of mass production and MTM are reflected in market data. The global garment manufacturing market—dominated by mass production—is expected to grow from $439.29 billion in 2024 to $517.74 billion by 2033, at a CAGR of 1.84 per cent. This scale-driven model shows steady, if unspectacular, growth. By contrast, the MTM market is booming. Projected to increase from $54.76 billion in 2024 to $124.55 billion by 2033, it’s growing at a CAGR of 9.56 per cent.
Table: Made-to-Measure market growth (2024–2033)
|
Year |
Market size ($ bn) |
CAGR (2025-2033) |
|
2024 |
54.76 |
9.56% |
|
2025 (Projected) |
59.99 |
|
|
2033 (Projected) |
124.55 |
Sources: Global Growth Insights, 2025
This rise is due to three trends: a 65 per cent rise in consumer demand for personalization, a 60 per cent increase in digital customization technologies, and a 58 per cent shift towards sustainability-oriented buying behavior.
Quality: Intrinsic vs. Perceived
Consumer perception of “quality” is a complex interplay of variables—fabric, construction, brand equity, and even fit. MTM often wins the perception battle by delivering a garment that not only looks better but feels like it was made for the wearer—because it was.
Mass-produced garments, even when technically sound, are often seen as generic. Yet, several high-end brands that operate at scale are proving otherwise. Through strategic investment in lean manufacturing, automation, and workforce development, they’ve managed to maintain both volume and consistency. Brands sourcing from these advanced suppliers—often located in Bangladesh, Vietnam, and parts of India—can meet demanding global quality benchmarks.
For example, take vertically integrated manufacturers working with global mid-premium brands. These companies employ real-time defect tracking, AI-based inspection systems, and worker feedback loops. Many are also integrating sustainable practices—using organic fibers, water-saving dyeing methods, and ethical labor models. These improvements often translate into higher worker satisfaction and lower turnover—factors closely tied to garment quality. Sustainability and quality, once considered trade-offs in the mass market, are increasingly complementary.
The Verdict: Quality is a choice
So, is MTM better than mass production?
The answer is, it depends. What determines quality is not how a garment is produced, but why and with what commitment. When cost-efficiency trumps all else, mass production can fall short. But when factories prioritize excellence—through training, quality control, and respect for their workforce—the results can rival any atelier.
Meanwhile, MTM’s allure will continue to grow among consumers who value fit, expression, and exclusivity. Its higher cost structure may limit accessibility, but its cultural and aesthetic value is undeniable. Both models serve distinct, yet increasingly overlapping, market segments. MTM is learning from the efficiencies of mass production, while mass manufacturers are adopting craftsmanship principles once thought exclusive to bespoke tailors. Indeed, the future isn’t about choosing one over the other—it’s about integrating the best of both.
