This paper tries to compare knitwear clusters in Ludhiana and Tiruppur. While Ludhiana is producing woolen knitting wear mainly for domestic market, Tiruppur concentrate on cotton knitting wear mainly for export market. There are four similarities between the two clusters. First, vertical networking among units specializing in different parts of the production process is working effectively. Second, information on market is shared among producers through intermediaries such as wholesalers, retailers and other marketing agents.Third, both clusters depend on migrant workers. Fourth, apparel industry contributes to improvement of household income in neighbouring villages. On the other hand, there is difference in the two points. First, while Ludhiana is catering mainly for the domestic market, Tiruppur is export-oriented cluster.Second, communities of owners are different in the two clusters.

Introduction

India has maintained stable economic growth since 1981. Although manufacturing sector-has developed, supplying mainly for expanding domestic market, employment in the sector has not increased dramatically. The National Manufacturing Policy announced by commerce minister in 2011 put two objectives. The share of manufacturing in GDP will be raised up to 25 percent by 2022. Further 100million employments will be created by 2022. Both are challenging. The policy pays special attention to small and medium enterprises (SMEs).

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This article was originally published in the "New Cloth Market", May, 2012.