Garment exporters from Tiripur in Tamil Nadu are staring at a 15 per cent growth for the October-December quarter and are expecting international sales for the current fiscal to surpass the previous financial year’s total of Rs 25,000 crore.
Pent-up demand after a period of decreased spending by the consumers coupled with anti-China sentiment amongst the buyers has resulted in a strong revival of demand, reports Times of India.
Moreover, a favourable INR/Euro ratio has also aided the traders considering that the European Union is one of the largest importers of garments from Tirupur.
Furthermore, American embargo on exports from China and knitwear made from Chinese cotton is also reportedly turning advantageous for Indian traders and exporters.
Tirupur town employs around 6 lakh workers, which includes around 3 lakh individuals who belong to other states. A Sakhtivel, head of Apparel Exports Promotion Council remarked, “Exports are back, with a bang. The growth that we are seeing is here to stay.”
Raja Shanmugham, head of Tirupur Exports Association, believes that exports will enhance 15 per cent by volume and 10 per cent by value in the ongoing quarter. However, he remained cautious of the ongoing trends given that certain European nations are witnessing further waves of Covid-19 infections and is apprehensive that it might impact the Christmas sales.
Given that 40 per cent of Tirupur’s goods are usually circulated to the local markets, he claimed, “Domestic demand is matching exports. We expect domestic supplies to overtake exports, if the present demand continues.”
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.