India's textile hub of Tiruppur is experiencing a remarkable resurgence, with apparel export units operating at near-maximum capacity and receiving a surge of orders from the United States and United Kingdom.

The region's 5,000 export units are currently running at 95 per cent capacity, a significant improvement from just months ago when they were operating at 60-65 per cent capacity.

The current momentum is driven by multiple factors, including potential trade developments and geopolitical dynamics in the region.

US-based companies are increasingly turning to Indian suppliers, partly due to political instability in Bangladesh.

According to K M Subramanian, President, Tiruppur Exporters Association, the sector anticipates a revenue increase from Rs 35,000 crore in fiscal year 2024 to Rs 40,000 crore in fiscal year 2025.

Official data from the commerce ministry indicates a substantial 35 per cent surge in apparel exports in October, reaching USD 1.22 billion compared to USD 908.78 million in the same period last year.

The potential India-UK Free Trade Agreement is generating additional optimism, with British buyers already seeking samples and exploring increased sourcing opportunities.

The global textile landscape is clearly shifting, with countries like Vietnam and Bangladesh approaching sourcing saturation.

India appears well-positioned to fill this gap, offering a compelling alternative for international brands seeking to diversify their supply chains.

Published on: 26th November 2024 

Source: knn india