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The Development of Apparel Industrial Cluster in India A Comparison between Ludhiana and Tiruppur

The Development of Apparel Industrial Cluster in India: 
A Comparison between Ludhiana and Tiruppur

Shuji Uchikawa

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.

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