In the fiscal year 2023–24, Tiruppur, India’s textiles export hub, faced a significant setback with a 14% contraction in knitwear exports. However, the region has rebounded in the 2024–25 fiscal year, driven by a surge in exports during the first three months. This recovery is attributed to substantial orders from global giants such as Primark, Tesco, George at ASDA, and Decathlon. According to the Tiruppur Exporters Association (TEA), this influx of orders has revitalized export figures. In April, there was a modest increase of 1.5%. In May and June, exports showed robust growth rates of over 11.4% and 10%, respectively.
TEA also reports a growing interest from other international brands, including US companies like GAP, Carter’s, and Walmart, European giants such as Next and Duns, and Australian retailers like Target and Woolworths.
K M Subramanian, President of TEA, highlighted, “We’ve seen a rise of over 10% in June as well. This increase is mainly attributed to global majors diversifying their sourcing strategies in response to the ‘China Plus One’ policy and significant wage hikes in key markets such as Bangladesh.”
Last year, Bangladesh announced a 56 per cent increase in the monthly minimum wage for garment workers, prompting global buyers to explore alternative sourcing hubs like Tiruppur.
According to TEA’s data, exports from Tiruppur totalled $294 million in April 2024, up from $290 million the previous year, and $360 million in May 2024, compared to $323 million in May 2023.
Currently, Tiruppur dominates 90 per cent of India’s cotton knitwear exports and 55 per cent of all knitwear exports.
Throughout the calendar year, excluding a 3.8 per cent decline in January, exports saw growth in all other months. February saw a 6.4 per cent increase, while March recorded approximately 5.6 per cent growth compared to the previous year.
R Senthil Kumar from Premier Agencies, an MSME based in Tiruppur, expressed optimism about future growth. He noted that market conditions are stabilizing after uncertainties in Europe and potential recessions in the US previously resulted in cautious order placements. Additionally, the stabilization of cotton prices and wage trends in Bangladesh approaching Indian rates have further bolstered their order volumes.
Labour shortages have been a significant challenge for the region, although the situation has improved since recent elections. Before the polls, Tiruppur faced a 40 per cent shortage of migrant workers, which has now decreased to 10 per cent as facilities for employees have expanded.
Tiruppur’s textile industry employs 600,000 local workers and 200,000 migrants, supporting various sectors including knitting, dyeing, fabric printing, garmenting, embroidery, compacting, calendaring, and other ancillary activities.
