Garment exports from Tirupur, a major knitwear hub of the country, grew by 16.3 per cent to Rs 23,050 crores in 2015-16. Garment exports from here stood at Rs 20,730 crores in the previous fiscal. Apparel exports from the country rose eight per cent year-on-year to reach Rs 1.1 lakh crores in 2015-16, particularly due to increased orders from European Union (EU), the largest importer of Indian garments.
Exports from Tirupur are expected to sustain the growth in the current fiscal too following good demand from EU. Exporters feel this can be doubled if the Free Trade Agreement (FTA) is finalized since they have seen growth in Europe and are getting new buyers. Exports can jump to Rs 50,000 crores if the FTA with EU is in place, they say.
With China moving away from manufacturing to IT and the services sector, Tirupur's garment manufacturers are looking forward to a sustained improvement in business. The share of apparel in China’s textile exports has come down from around 15 per cent to 7 per cent in the last one year. This means there would be more opportunities for India.
The textile industry provides employment to over six lakh people in Tirupur. It is a global outsourcing hub for everything related to knitwear.