Textile and clothing exports from the country between April and December 2021 were up 18 % in dollar terms and almost 25 % in rupee terms compared to the corresponding period in 2019, according to data available.
Majority of the garment exporting units are MSMEs and they are labor-intensive and vulnerable to several external factors. The government should step in to bring stability to raw material prices, said the President of Tirupur Exporters’ Association (TEA) Raja M. Shanmugham.
The multi-billion dollar garment industry in Tirupur has survived another wave of Covid, without lockdowns or large-scale desertion of guest workers.
With no specific announcement in the Union Budget that will directly benefit the textile and clothing sector, the industry has said steps to support MSMEs and attract investments will benefit the textile industry too. However, there should be measures to control raw material prices, the industry associations said.
Weavers, garment manufacturers and textile mills in Tamil Nadu are struggling for the last 15 months to manage the increasing cost of raw materials.
Finance minister Nirmala Sitharaman has announced in the Union Budget that exemptions are being provided to zippers, buttons and lining materials to incentivise textile exports from India, thus making it easier for exporters to manage liquidity. But economic relief is not expected as of now as tax amount on import of these items used to be refunded.