Industry body seeks worker hostels, welfare measures, and policy support for Tamil Nadu’s knitwear sector

The apparel and readymade garment industry has requested the new Tamil Nadu government to accelerate affordable rental housing projects for garment workers in Tiruppur, particularly migrant and women workers. Industry representatives stated that access to affordable housing remains important for sustaining the growth of the labour-intensive textile sector.

In a letter addressed to Chief Minister C Joseph Vijay, Apparel Export Promotion Council Chairman A Sakthivel stated that the Tiruppur knitwear cluster alone provides direct employment to more than 10 lakh workers, of whom nearly 65 per cent are women.

According to the industry body, continued expansion of the sector depends on ensuring safe and affordable accommodation facilities for the workforce. AEPC requested the State government to provide a 50 per cent capital subsidy for the construction of worker hostels, while supporting the remaining project cost through interest subvention.

The industry body also sought reclassification of worker hostels under residential electricity tariffs to reduce operational costs and improve affordability for workers.

The apparel sector, largely comprising micro, small and medium enterprises (MSMEs), is identified as one of Tamil Nadu’s largest employment-generating industries after agriculture. The Tiruppur cluster contributes nearly 68 per cent of India’s knitwear exports and generates business exceeding ₹70,000 crore annually in domestic and international markets.

Industry representatives also called for measures to improve women’s workforce participation through safe transport facilities and expanded welfare initiatives.

In addition to housing support, the sector requested policy assistance for renewable energy adoption, Zero Liquid Discharge systems, and Common Effluent Treatment Plants. The industry also sought simplification of regulatory compliances through a single-window clearance mechanism.

Sakthivel stated that the Tiruppur cluster has set a target of achieving ₹1 lakh crore in exports by 2030. He also expressed confidence that stronger government support for labour welfare and infrastructure would help achieve the target while generating employment opportunities across Tamil Nadu.