Knitwear exports from Tiruppur are projected to surpass Rs 40,000 crore in FY25, alongside Rs 27,000 crore in domestic sales, says A Satkthivel, Vice President, Apparel Export Promotion Council and Founder, Tiruppur Exporters Association (TEA).
Accounting for 54 per cent of India’s knitwear exports, Tiruppur continue to capitalize on shifting global trade dynamics despite past challenges from COVID-19, demonetization, GST, and global economic slowdowns, adds Sakthivel. The US-China trade war and unrest in Bangladesh are creating new opportunities for Tiruppur's exporters, he states further.
The expiration of Bangladesh's EU FTA in 2027 further enhances Tiruppur's prospects. Currently, Tiruppur exports 35 per cent of its production to the EU, 35 per cent to the US, and 10 per cent to the Middle East and Canada. Bangladesh's FTA advantage allows them to supply goods 10.5 per cent cheaper than India.
India's ongoing FTAs with the UK and EU, and those signed with Australia and the UAE, will benefit Tiruppur. If the UK and EU negotiations succeed and Bangladesh's EU FTA expires, India’s growth is likely to reach 35-40 per cent annually, affirms Sakthivel
Currently ranked sixth in global garment exports with a 3.9 per cent market share, India trails Bangladesh's 12 per cent. Its key competitors include Vietnam, Cambodia, Sri Lanka, and Taiwan. China dominates with a 36 per cent share, plus indirect exports, according to Kumar Duraisamy, Joint Secretary, TEA.
Tiruppur's focus on adapting to global trade shifts and securing advantageous FTAs positions it for substantial future growth in the competitive apparel export market.
