page_title: Erode
section_title: Economy
hierarchical_section_title: Erode / Economy
caption_attribution_description: English: Rugs on sale in Erode, India.
context_page_description: Erode is a city in the Indian state of Tamil Nadu. The seventh largest urban agglomeration in the state, it is also the administrative headquarters of the Erode district. Administered by a municipal corporation since 2009, Erode is a part of the Erode Lok Sabha constituency that elects its member of parliament. Located on the banks of River Kaveri, it is situated centrally on South Indian Peninsula, about 400 kilometres southwest of its state capital Chennai and about 80 kilometres east of Coimbatore and about 50 kilometres east of Tiruppur. Erode is an agricultural, textile and a BPO hub and among the largest producers of turmeric, hand-loom and knitwear, and food products.
context_section_description: Erode district's gross domestic product (GDP) grew at 15.5% in 2008 ahead of the state's GDP growth by 4%. According to Indian Census of 2001, urban workforce participation rate for Erode is 35% with growth in secondary and tertiary sectors and a corresponding decrease in the primary sector. Major employment is provided by textile industry, turmeric industry and oil and rice mills with 69% of its workforce employed in tertiary sector.
  Erode is famous for several markets. Erode has the country's largest turmeric market. Erode Turmeric has finally received GI tag from the Geographical Indication in 2019. Prices for the whole of India are fixed in Erode Turmeric Market. Erode has the countries largest textile market one is Abdul Gani Textile Market and another one is Texvalley.
  PDEXCIL (Powerloom Development & Export Promotion Council) has set up its regional office in the city under the Ministry of Textiles, Government of India. It is a non-profit organisation working for the development of Powerloom Industry and promoting export of Fabrics and made ups from Powerloom Manufacturers.
  Erode is also famous for its cattle markets. There are four major notable cattle markets in the district. One of them is located in the core city and is known as Karungalpalayam Cattle Market, which is one of the largest cattle market in the state.
  As of 2001, the district had two industrial estates with 60 tanneries, 165 lock manufacturing and several cotton spinning mills. While hand loom weaving and carpet manufacturing flourished in early days, emergence of power loom led to 24,189 small scale and 59 large scale units by 2000.
  The district is also rich in agriculture.The city is one of the largest manufacturer of food products in the state. Many food product manufacturers and poultries have established their base in and around the city.
  Erode is famously known as "Turmeric City" or "Yellow City" on account of production of turmeric in the state. It also has one of the largest markets for coconut. and coconut oil production in South India. Erode stands second in leather processing in the state, next to Ambur. Paper manufacturing companies like Seshasayee paper boards are located on banks of river Kaveri. Sugarcane processing industry here complements paper manufacturing from bagasse. Additionally, several small and medium scale industries like dal mills, cotton mills, vanaspathi manufacturers, wax, screen printing and printing presses are located in the city.
  Erode has one of the three electric loco sheds under the Southern Railway, carrying out various major and minor maintenance schedules of electric locomotives.  Electric loco shed, Erode is now housing the largest fleet of WAP-4 in Indian Railways and it caters to many long-distance electric trains. It has a diesel loco shed too.
  The Nethaji Market is an important wholesale and retail central market for vegetables and fruits in the city. Originally, the market was functioning along two major roads in the north of the clock tower area. It originated in the Chozha era. In 1935, Erode City Municipal Corporation constructed the market shops along RKV Road near Old Busstand. Recently, Erode City Municipal Corporation has planned to shift the wholesale market to the outskirts of the city considering the traffic congestion and road infrastructure of this area.
caption: Fabrics and rugs made in Erode are famous throughout India and are exported
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