A textile cluster is being set up with 40 units near Kariapatti in Virudhunagar district near Madurai. This is likely to provide employment to around 2,000 people.

While sectors such as engineering and automobiles are non-starters in the region, industries manufacturing tyres, rubber parts, garments, knitting and hosiery, powerloom and ancillary units are functioning in the industrial estates at K. Pudur, Kappalur and Uranganpatti and outside.

While the textile park near Vadipatti is functioning well, it is not the case with industries in K. Pudur and.

Many small and cottage units are no more viable due to competition from cheaper goods imported from China. Modernisation of plants requires huge capital and expertise but the lack of support from the government and pressure from financial institutions has forced many entrepreneurs to wound up their business.