Tirupur is looking for Free Trade Agreements (FTA) with the European Union, the US, UK and Russia. Exporters in the textile hub feel lack of access to key markets is hampering sector’s growth, making India lose market share to main competitor China. China, by using the advantages available to countries with predominant EU and US markets, has increased its exports and circumvented the Indian industry’s growth prospects in the global market.

Till such time as FTAs are signed, Tirupur wants incentives to be available to the readymade garment sector, which will help create a level playing field for the industry compared to competing nations. Exports of Tirupur in the last financial year have gone down by 5.6 per cent from the previous year. Among the reasons are the changes in duty and tax structure such as GST. There is no customs duty levied in other countries, especially Bangladesh and Sri Lanka, on import of yarn to produce fabric and garments meant for exports, except in India.

Climate change too played havoc. Production of cotton remained minimal and could only meet five per cent of the requirements of Tamil Nadu spinning mills. About six lakh employees work for 6,500 knitwear and apparel units in Tirupur.