Garment exports from Tirupur in February and March this year saw growth after battling a downturn in demand for more than a year.
Data available with the Tirupur Exporters’ Association (TEA) show knitwear exports from Tirupur grew 6.4 per cent in February and 5.6 per cent in March this year in dollar terms compared with the year-earlier period.
Total garment exports from the country saw 4.8 per cent growth in February and 1.7 per cent in March compared with the year-earlier month.
K.M. Subramanian, president of Tirupur Exporters Association (TEA), said that Bangladesh will have duty-free access to Europe till 2027. With India expected to sign a trade agreement with the U.K., Indian garments will be competitive and hence, large retailers are already looking for suppliers and booking factories in India. Tirupur is expected to see almost 10 per cent growth in exports in the coming months.
According to Kumar Duraisamy, joint secretary of TEA, small retailers in Europe have exhausted their inventory and are buying now. Further, almost 20 per cent of MSME exporters in Tirupur went out of business because of the decline in orders last year. Hence, the existing units are running to full capacity now, are planning capacity additions and there is almost 20 per cent labour shortage in Tirupur.