Tirupur, India’s textile hub, is experiencing a resurgence of fortunes after a two-year lull. A surge in orders from the US and UK, coupled with political instability in neighbouring Bangladesh, has breathed new life into the city’s 5,000 apparel export units. These units are now operating at a robust 95% capacity.
K M Subramanian, President of the Tirupur Exporters Association (TEA), revealed that new UK apparel buyers are actively seeking samples in anticipation of the much-awaited India-UK Free Trade Agreement (FTA). The Union Commerce Ministry has confirmed that FTA negotiations will resume early next year.
“The units are not only securing orders from the US for the upcoming Spring season but are also benefiting from US-based companies diversifying their sourcing away from Bangladesh,” Subramanian added.
India’s apparel exports surged by an impressive 35% in October 2023, reaching $1.22 billion compared to $908.78 million a year earlier. This upward trend is expected to continue, with Tirupur alone aiming to increase its revenue from Rs 35,000 crore in FY24 to Rs 40,000 crore in FY25.
Industry leaders like Punit Lalbhai, Vice Chairman and Executive Director of Arvind Ltd, and Sanjay Jain, Chairman of the Indian Chamber of Commerce National Committee on Textiles, have expressed optimism about the future of the Indian apparel industry. They attribute the positive outlook to factors such as increased demand, India’s favourable position as a sourcing destination, and the potential benefits of the India-UK FTA.
However, challenges remain. Sudhir Dhingra, owner of Gurugram-based exporter Orient Craft, highlighted the infrastructure limitations of many Indian textile makers, particularly smaller units. He emphasized the need for government incentives like the Production Linked Incentive (PLI) scheme and increased working capital loans to fully capitalize on the opportunities presented by Bangladesh’s political instability.
Industry experts like Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director of Gokaldas Exports, believe that the India-UK FTA will further accelerate growth and attract more UK-based customers.
As the global apparel industry continues to evolve, India’s textile sector, particularly Tirupur, is poised to play a pivotal role, leveraging its skilled workforce, competitive costs, and strategic location to secure a significant share of the global market.
