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.