Global companies including Walmart, Pepco, Tesco, GAP, Decathlon, Marks & Spencer, and Next intend to increase their sourcing from India. Over the past three years, Tiruppur’s export orders have decreased due to a reduction in purchases by two key consumers, the US and Europe, as a result of the recession brought on by the pandemic and the Russia-Ukraine war.
Furthermore, Tiruppur, a centre of textile production in Tamil Nadu, is probably going to get a big boost from the customs duty changes in the Union budget. Tiruppur is already dealing with a surge of orders as a result of several international firms pulling their purchases out of Bangladesh because social upheaval there is affecting manufacturing.
According to KM Subramanian, president of the Tiruppur Exporters Association (TEA), brands like Kmart and Target, which may have originated in other nations but are present in Australia, are also purchasing big quantities of clothing from Tiruppur in order to benefit from the India-Australia Free Trade Agreement. Additionally, orders are being placed following the FTA by Australian brands including Woolworths and BIG W.
According to Subramanian, before making an order, all major worldwide brands conducted social audits of the factories. According to him, customers from around the world view India as a more reliable sourcing nation than others like Bangladesh.
Certain raw materials used in the fashion industry were eliminated or had their import charges reduced by the budget, but only if they were exported as completed goods from India.
According to Subramanian, the new orders will probably result in a 10 per cent boost in exports from Tiruppur this fiscal year. The garments centre generated 33,500 crore in revenue in FY ’24. In Tiruppur, there are around 6,000 knitwear and knitwear-accessory units.
Global companies including Walmart, Pepco, Tesco, GAP, Decathlon, Marks & Spencer, and Next intend to increase their sourcing from India. Over the past three years, Tiruppur’s export orders have decreased due to a reduction in purchases by two key consumers, the US and Europe, as a result of the recession brought on by the pandemic and the Russia-Ukraine war.
