The Tirupur textile hub has recorded a rise in revenue of Rs 2000 crores in the past year.The export revenue in 2016-17 was Rs 26,000 crores against Rs 24,000 crores in 2015-16. The target however, was Rs 30,000 crores but that could not be achieved because of Brexit and the fall in the euro.

After the euro fell, clients from Europe wanted to buy at a reduced price that was not feasible for manufacturers. So customers reduced the quantity of orders. Demonetisation did not have a direct impact on revenue from exports. The problem was to shift from cash to wire transactions. It took more than two months for many industries in Tirupur to settle down. So, more than demonetisation, it was Brexit and the fall in the euro that impacted exports.

Meanwhile Tirupur apparel exporters fear the GST rates set for different segments of the knitwear production chain can create complexities and erode profit margins.

The differing GST scales fixed for various processes in the apparel production chain can have ramifications considering that the production chain in the Tirupur cluster remains mostly fragmented.

Complexity will arise as job work is going to be taxed at 18 per cent even though garments attract only five per cent. In Tirupur, processes like dyeing, knitting, fabrication and printing among many others are being carried out as job works.