Tirupur Exporters’ Association explained that in the current financial year, political changes in the United States, its altered trade ties with China, and the unrest in Bangladesh had created new trade opportunities for India.
The surge in international demand for knitwear garments in recent months has revitalised production in Tirupur’s textile units. Tirupur’s knitwear exports had faced several challenges in recent years due to demonetisation, GST, and the impact of Covid. However, following the pandemic, the sector saw a significant recovery, with knitwear exports from Tirupur reaching Rs 343.50 billion in the 2022-23 financial year. Despite this, factors such as the Russia-Ukraine war, economic slowdowns in the West, rising freight charges, and increasing electricity costs led to a decline in the garment sector’s performance in 2023-24.
Kumar Duraisamy, the Joint Secretary of the Tirupur Exporters’ Association, explained that in the current financial year, political changes in the United States, its altered trade ties with China, and the unrest in Bangladesh had created new trade opportunities for India. As a result, exports crossed Rs 204.82 billion in October and surpassed Rs 300 billion by December. Duraisamy mentioned that exports had been increasing by 15-18 per cent each month compared to the previous financial year.
Exporters also noted that Bangladesh’s free trade agreement (FTA) with the European Union (EU) would expire in 2027, leading major foreign buyers to shift their focus to India, resulting in increased orders. Moreover, negotiations for an FTA with the UK were in the final stages, which had generated optimism among exporters. Duraisamy highlighted that this was a great opportunity for small, medium, and micro enterprises to regain their prominence.
A Sakthivel, vice-chairman of the Apparel Export Promotion Council (AEPC), observed that a positive trend could be seen across India in the readymade garment (RMG) exports during the current fiscal year. The exports of readymade garments in December 2024 showed a growth of 15.2 per cent in rupee terms compared to December 2023. The total exports for the period from April to December 2024 amounted to Rs 949.36 billion, reflecting a growth of 13.2 per cent compared to the same period the previous year. Sakthivel anticipated that the growth trajectory would continue, and expected the Tirupur knitwear sector to achieve an overall growth of 15 per cent compared to the previous fiscal year. He predicted that this growth would push exports from Tirupur beyond Rs 400 billion.
Manufacturers expressed that India’s RMG sector had the potential to achieve even greater success with additional government support. M P Muthurathinam, president of the Tirupur Exporters and Manufacturers Association (TEAMA), stressed the importance of support from the Union government to fully capitalise on the opportunities. He suggested removing the tax on cotton imports, establishing more FTAs with various countries to boost exports, and reducing bank interest rates. Muthurathinam also noted that India currently ranked sixth in garment exports, accounting for only 3.9 per cent of global exports, while Bangladesh held around 12 per cent, and China dominated with 36 per cent. He expressed hope that positive announcements from the Union government in the upcoming budget could help the apparel industry reach new heights.