Apparel, Fashion & Retail | News & Insights

Lack of orders forces Tiruppur’s garment factories to close.

Published: August 7, 2023
Author: TEXTILE VALUE CHAIN

According to the South India Hosiery Manufacturers’ Association, about 40% of the Tiruppur hosiery production facilities that serve the domestic market have shut down due to a lack of orders.

A.C. Eswaran, president of the Association, wrote a message to the Central government stating that numerous units in Tiruppur were ceasing production due to a reduction in orders. The value of imported clothing from Bangladesh has surged 15 times over the last six years. Imports of clothing totaled 288 crore in 2016–2017 and over 4,500 crore in 2022–2033. 2011 saw the signing of a free trade agreement between India and Bangladesh. Imports from Bangladesh were subject to a 12% tax. There was no longer a duty, yet there were unconfirmed rumours that merchandise from China had entered India through Bangladesh. The government of Bangladesh provided subsidies to the clothing sector. He claimed that because local production costs were high, Tiruppur’s industries were unable to compete with imports from Bangladesh.

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