The Textile industry in India has an over whelming presence in the economic life of the country. It contributes to production, employment generation and the export earnings of the country. Indian Textiles and Clothing industry is one of the largest contributing sectors of India’s exports worldwide. It is estimated that India would secure 7 percent share in the global textile trade by 2014.The Textile industry accounts for nearly12 percent share of the country’s total exports.India’s garment exports totaled US$ 11.17 billion during the year 2009 - 10 giving it an enviable global market share of 2.99 percent.The Indian Textile exports have been projected to grow at a rate of 22 percentand attain ashare of7 percent in the globaltextile trade. However,the textile export tradeis still lagging behind and its performance needs to be strengthened in thepostliberalization era asits share in global trads is at 3%. Hence,a study was undertaken n two major textile exporting clusters of Tamil Nadu, namely Karurand Tirupur, known for home furnishings and knitted garments.A detailed analysis of the export performance of these two clusters in the post-liberalization period has been undertaken.