India’s textiles export hub Tiruppur revives after major setback

India’s textiles export hub Tiruppur revives after major setback

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During April, the rise was marginal, standing at 1.5 per cent. However, in May and June, exports saw substantial increases of over 11.4 per cent and 10 per cent, respectively.

In the 2023–24 fiscal year, Tiruppur, India’s textiles export hub, experienced a contraction of 14 per cent in knitwear exports. However, as of 2024–25, the region has returned to positive growth, driven by an increase in exports during the first three months.

The revival can be attributed to significant orders from global players such as Primark, Tesco, George at ASDA, and Decathlon. According to the Tiruppur Exporters Association (TEA), this influx of orders has led to a resurgence in export numbers.

During April, the rise was marginal, standing at 1.5 per cent. However, in May and June, exports saw substantial increases of over 11.4 per cent and 10 per cent, respectively.

TEA also reports a growing interest from other international brands, including US companies like GAP, Carter’s, and Walmart, European giants such as Next and Duns, and Australian retailers like Target and Woolworths.

President of TEA, K M Subramanian, noted, “We have observed a rise of over 10 per cent in June as well. This increase is primarily due to global majors diversifying their sourcing strategies in response to the ‘China Plus One’ policy and significant wage hikes in key markets like Bangladesh.”

Last year, Bangladesh announced a 56 per cent increase in the monthly minimum wage for garment workers, prompting global buyers to explore alternative sourcing hubs like Tiruppur.

According to TEA’s data, exports from Tiruppur totalled $294 million in April 2024, up from $290 million the previous year, and $360 million in May 2024, compared to $323 million in May 2023.

Currently, Tiruppur dominates 90 per cent of India’s cotton knitwear exports and 55 per cent of all knitwear exports.

Throughout the calendar year, excluding a 3.8 per cent decline in January, exports saw growth in all other months. February saw a 6.4 per cent increase, while March recorded approximately 5.6 per cent growth compared to the previous year.

R Senthil Kumar from Premier Agencies, an MSME based in Tiruppur, commented, “We anticipate further growth. Market conditions are stabilising following uncertainties in Europe and potential recessions in the US, which previously led to conservative order placements. The recent stabilisation of cotton prices and wage trends in Bangladesh nearing Indian rates have also supported our order volumes.”

Labour shortages have been a significant challenge for the region, although the situation has improved since recent elections. Before the polls, Tiruppur faced a 40 per cent shortage of migrant workers, which has now decreased to 10 per cent as facilities for employees have expanded.

Tiruppur’s textile industry employs 600,000 local workers and 200,000 migrants, supporting various sectors including knitting, dyeing, fabric printing, garmenting, embroidery, compacting, calendaring, and other ancillary activities.

News source: Business Standard

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