In a recent statement, A Sakthivel, in-charge of the Apparel Export Promotion Council (Southern Region), reported a substantial increase in knitwear exports from Tiruppur.

The quarter ending July saw a rise of Rs 400 crore in exports, contributing to India's overall 13.8 per cent growth in apparel exports for the month.

Sakthivel noted increased exports from Tiruppur to several key markets, including the USA, Australia, Korea, Japan, and Europe. However, he cautioned against expectations of large-scale order shifts from Bangladesh, despite its current political climate.

The 11 per cent duty-free advantage Bangladesh enjoys under Free Trade Agreements (FTAs) continues to give it a competitive edge over India in the international apparel market.

To address this disparity, efforts are underway to establish new FTAs. Sakthivel highlighted the imminent signing of an FTA between India and the UK, which is expected to boost Tiruppur's growth significantly.

Official figures released by the council show that India's apparel exports from April to July reached USD 5.13 billion (approximately Rs 42,800 crore), marking an average growth of 7.6 per cent.

July 2024 alone saw exports increase by Rs 1,400 crore to Rs 10,677 crore compared to the same month in the previous year.

KM Subramanian, President, Tiruppur Exporters' Association, expressed optimism about the sector's prospects. He projected that Tiruppur's exports could reach up to Rs 40,000 crore this year, up from Rs 33,500 crore in 2023, representing at least a 10 per cent growth.

While challenges remain in competing with countries benefiting from preferential trade agreements, the Indian apparel export sector, particularly in Tiruppur, shows promising signs of growth and resilience in the global market.

Published on: 17th August 2024

Source: Knn