Exporters of ready-made garments (RMGs) in Tirupur want to press the Central Government for a free trade agreement (FTA) with the United States after the recent regime change. This will be facilitated by the cordial ties between the Central Government and US President-elect Donald Trump, according to A Sakthivel, chairperson of the Apparel Made-Ups and Home Furnishing Sector Skill Council (AMHSSC) and in-charge of the Apparel Export Promotion Council (Southern Regional).
The largest significant market for Indian exports of ready-made clothing is the United States. For instance, US $ 2,564.8 million worth of ready-made clothing was shipped to the USA alone between April and September of this year. Given the government transition, an FTA with the USA would be extremely beneficial to India’s RMG sector. The Central Government will be asked to implement an FTA because of the mutual relationship between India’s administration and US President-elect Donald Trump, opined Sakthivel.
India’s exports are still rising, indicating expansion in several important areas. With an impressive growth rate of 7.28 per cent, the total expected exports from April to October 2024 would be US $ 468.27 billion, up from US $ 436.48 billion over the same period the previous year. A notable development was the significant 35.06 per cent growth in exports of total RMG, which went from US $ 0.91 billion in October 2023 to US $ 1.23 billion in October 2024. RMG exports at US $ 8,732.6 million for the April–October 2024 period represent an 11.6 per cent increase over the same period the previous year, he added.
This steady growth from month to month highlights the export industry’s resilience, especially in RMG. Sakthivel is adamant that by the conclusion of this fiscal year, another 15-20 per cent growth can be accomplished. This optimistic trend is the result of efforts to ensure that goods are delivered on time and with quality. If all goes according to plan, Tiruppur’s exports will reach Rs 40,000 crore (US $ 4.73 billion) this year.
Since the USA purchases 30 per cent of Tirupur knitwear exports, the FTA will enable exporters to compete with other nations for orders, according to KM Subramanian, President of the Tiruppur Exporter’s Association.
