Tiny retailers in Europe have exhausted their stocks and are now buying, says Kumar Duraisamy, joint secretary of TEA. | Photo credit: SIVA SARAVANAN S
Apparel exports from Tiruppur witnessed a pick-up in February-March this year after over a year of failing demand.
Data available from Tiruppur Exporters Association (TEA) shows that knitwear exports from Tiruppur increased by 6.4% in February this year and 5.6% in March this year in dollar terms compared to the year-ago period.
The country’s total apparel exports grew 4.8% in February and 1.7% in March compared to the year-ago period.
KM Subramanian, president of TEA, said that Bangladesh will have duty-free access to Europe by 2027. With India expected to sign a trade deal with the UK, Indian clothing will be competitive and immense retailers are already looking for suppliers and making factory reservations in India. Tiruppur is expected to record almost 10% growth in exports in the coming months.
According to Kumar Duraisamy, joint secretary of TEA, diminutive retailers in Europe have exhausted their stocks and are now making purchases. Moreover, almost 20% of MSME exporters in Tiruppur went bankrupt due to decline in orders last year. Accordingly, the existing units are currently operating at full capacity, plans to boost production capacity and Tiruppur has a labor shortage of almost 20%.
