Tirupur’s exports of readymade garments fell by 12.12 per cent from April to August compared to the corresponding time period last year. The year started with a 22.78 per cent drop in April. But exports clocked in 5.03 per cent growth in rupee terms. Exports in August 2018 grew 5.08 per cent compared to August 2017.
GST, reduction in duty drawback, and remission of state levies were responsible for export trends. The trend is expected to reverse this financial year. Exporters fear if this doesn’t happen, buyers will turn to Bangladesh, Vietnam, Ethiopia, Myanmar and once this happens bringing them back will not be easy.
Meanwhile the rupee’s continuous fall against the dollar will help exporters’ as it will narrow the price difference between Made-in-India textiles and competing nations, including Vietnam, Cambodia and Bangladesh. The development comes at a time when exporters are going to finalise agreements for the next set of orders. The gap between Tirupur and competing countries would be reduced by around two or three per cent. Currently, the gap ranges between 10 and 15 per cent.