Evaluate the role of industrial clusters such as Tiruppur in employment generation, and suggest measures to improve their global competitiveness.

An industrial cluster is a group of related firms in one place that share suppliers, skills and infrastructure. Tiruppur, India's "knitwear capital", shows that clusters can create jobs at scale. Whether those jobs last now depends on how competitive the cluster is.

Role in employment: strengths

• Mass jobs for less-skilled workers: the knitwear clusters of Ludhiana, Kolkata and Tiruppur together employ nearly 24 lakh people [1].
• Inclusive work: about 70% of Tiruppur's textile workers are women and people from marginalised sections [2].
• Jobs tied to exports: Tiruppur's exports were estimated at ₹30,000 crore in FY22. The Centre wants to create 75 textile hubs like Tiruppur [2].
• Linkages: spinning, dyeing, trims and logistics create indirect jobs around the core units.

Role in employment: limitations

• Fragile margins: about 54% of apparel firms are absorbing 5%–7% textile inflation rather than raising prices [3].
• Import threat: Tiruppur makers have flagged rising garment imports from China as a risk to MSME jobs [3].
• Uneven input costs: 76 textile products are under QCOs (Quality Control Orders, which require BIS certification). Only inputs imported for export production get exemptions [4]. Units selling only in India get no such relief.
• Informality: most jobs are in MSMEs with weak social security, so they are easily lost when demand falls.

Verdict: clusters are strong at creating jobs but weak at keeping them. Their jobs depend on thin margins.

Measures for global competitiveness

• Scale: PM MITRA Parks (7 parks, ₹4,445 crore) bring the whole value chain to one site, with about 20 lakh jobs envisaged [5].
• Product shift: use the PLI scheme for man-made fibre (MMF) and technical textiles to move into higher-value products.
• Input costs: review QCOs that only restrict supply, and extend export-style input relief to small domestic units [4].
• Trade defence: file data-backed anti-dumping petitions with DGTR, and enforce rules of origin so goods are not routed through third countries.
• Market access: use FTAs (India–UK CETA, India–EU) to close the duty gap with rivals.
• Upgrading: common facility centres, skilling, and green compliance such as zero liquid discharge.

Tiruppur shows that clusters are central to labour-intensive growth. Lower input costs, scale through PM MITRA and better market access can turn them from low-margin job creators into globally competitive ones. That would serve SDG 8 (decent work) and the goal of Viksit Bharat.