The apparel and readymade garment industry has urged the new Tamil Nadu government to fast-track affordable rental housing projects for garment workers, particularly migrant and women workers, stating that adequate housing has become critical for sustaining the growth of the State’s labour-intensive textile sector.
A. Sakthivel, Chairman of the Apparel Export Promotion Council, in a letter to Chief Minister C Joseph Vijay, said the Tiruppur knitwear cluster alone provides direct employment to over 10 lakh workers, nearly 65 per cent of whom are women, and that the sector’s continued expansion depends heavily on ensuring safe and affordable accommodation facilities for the workforce.
The industry body 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. It has also sought reclassification of worker hostels under residential electricity tariffs to reduce operational costs and improve affordability for workers.
The apparel sector, dominated by micro, small and medium enterprises (MSMEs), is one of Tamil Nadu’s largest employment generators 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 enhanced welfare initiatives.
Apart from labour welfare measures, the industry has sought dedicated financial support for export-oriented MSMEs, improved access to working capital, subsidies for modernisation and automation and better road and rail connectivity to the ports of Thoothukudi and Chennai.
The sector has also requested support for renewable energy adoption, Zero Liquid Discharge systems and Common Effluent Treatment Plants, besides simplification of regulatory compliances through a robust single-window clearance mechanism.
Sakthivel said the Tiruppur cluster has set a target of achieving ₹1 lakh crore in exports by 2030 and expressed confidence that stronger government support for labour welfare and infrastructure would help realise the goal while creating substantial employment opportunities across Tamil Nadu.
Published on May 11, 2026