Global brands may increase India sourcing after duty relief

Export orders from Tiruppur had decreased over the past three years as two major buyers, the US and Europe, had reduced their purchases due to a recession triggered by the pandemic and the Russia-Ukraine war.

Global brands such as Marks & Spencer, Next, Decathlon, Primark, GAP, Walmart, Pepco, and Tesco are planning to increase their sourcing from India.

Export orders from Tiruppur had decreased over the past three years as two major buyers, the US and Europe, had reduced their purchases due to a recession triggered by the pandemic and the Russia-Ukraine war.

Moreover, changes in customs duty in the Union budget are expected to significantly benefit Tiruppur, a textile production hub in Tamil Nadu. Tiruppur is already experiencing a surge in orders, with some global brands shifting their purchases from Bangladesh because of disruptions caused by social unrest there.

KM Subramanian, president of the Tiruppur Exporters Association (TEA), noted that brands with origins in other countries but a presence in Australia, such as Kmart and Target, are also purchasing large quantities of garments from Tiruppur to capitalize on the India-Australia Free Trade Agreement (FTA). Additionally, Australian brands like BIG W and Woolworths are placing orders following the FTA.

Subramanian mentioned that all global brands had conducted social audits of the factories before placing their orders. They had evaluated the living conditions of the workers and the environmental practices of the factories. Based on these assessments, they decided to place orders with Tiruppur, with brands such as Next, Decathlon, and Polish brand Pepco now sourcing from the region.

News source: Economic Times