Garment exporters in Tiruppur are hopeful of bagging more orders in 2023 as India’s economic pact with Australia has come into force and India is expected to sign a trade agreement with the UK soon.
K.M. Subramanian, president of Tiruppur Exporters’ Association, told The Hindu that India exported garments worth ₹600 crore in 2020 and almost ₹900 crore in 2021. Tiruppur has nearly 60% share in this.
In 2022, exports to Australia from India crossed ₹600 crore between January and June. It is expected to have touched another ₹600 crore during the remaining period.
With the economic pact coming into effect from December 29, garment exports from India to Australia is expected to see almost 30% growth in the first year as Indian apparel products now have duty-free access to Australia.
Another major trade agreement that is expected to be signed soon is between India and the UK. “Officials have indicated that the garment sector will benefit from the agreement, when it is signed,” he said. If an India - UK trade agreement is implemented, Tiruppur garment exporters will see another 30% growth in orders. So, the New Year will see Tiruppur registering significant jump in exports, he said.
Though the garment industry in Tiruppur is largely cotton-based, the manufacturers have started experimenting with manmade fibre (MMF) and in another three years, the share of MMF-based products in Tiruppur will go up. This will bring orders to the knitwear exporters all through the year, he said.
