The Performance of Tirupur Knitwear Cluster on Trade Agreements

By : E. Bhaskaran

Page No: 186-198

Abstract
The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India (GoI) is adopting a cluster development approach for enhancing the productivity and competitiveness of Micro and Small Enterprises (MSEs) and their collective. The Knitwear Cluster in Tirupur was formed during 2003 having MSEs with many interventions by UNIDO and Government of India as well as Government of Tamil Nadu under IIUS and MSE-CDP. The objectives of this research article are: to study the Business Analytics Performance of Tirupur Knitwear Cluster in areas such as diagnostic analysis, descriptive analysis, predictive analysis and prescriptive analysis; to study the diagnostic analysis based on UNIDO intervention in before and after Cluster Development Approach (CDA) to improve the efficiency of the industries, to study the descriptive analysis performance of knitwear export between Government of India and Government of Tamil Nadu, to study the descriptive analysis and predictive analysis of knitwear export based on Number of Units, Employment, Production and Export; to study the prescriptive analysis based on regression analysis and SEM; and to study impact asssessment and make recommendations to exporters, state and the central government on improvements in exports based on trade agreements. The study results show that there is increase in number of units, employment, production and turnover after the adoption of CDA when compared to before CDA. Global market for the knitwear exports from India is estimated at around an average of Rs. 53,884 crores, and from Tamil Nadu it is INR 26,814.17 crores from the year 2016-17 to 2021-22. Recommendations include that further trade agreements should be made with other untapped countries to increase exports of India and that the Government of India and Government of Tamil Nadu should create cluster policies based on export consortia variables.

Author :
E. Bhaskaran
Joint Director (Engineering), Department of Industries and Commerce, Government of Tamil Nadu, Guindy, Chennai, Tamil Nadu, India.
 

DOI: https://doi.org/10.32381/PROD.2022.63.02.6