Textile exporters based in Tamil Nadu’s Tiruppur have welcomed the India-US framework trade agreement, saying that it helped the textile manufacturing sector to compete with countries such as China and Bangladesh and also expressing hope that orders worth ₹4,000 crore held back would be cleared after the lowering of tariffs that came with the agreement.
Textile exporters were facing tariffs of 50%, which came down to 18% on Saturday.
Tiruppur Exporters’ Association president K M Subramanian said the joint statement by India and the United States was “significant” and they “we welcome it” as it provided prospects for huge growth.
“This (deal) will provide major growth for Tiruppur alone. Over the next 5 years, we expect the exports from Tiruppur to double ,” he said, adding that Tiruppur export garments were currently valued at ₹15,000 crore.
Subramanian, also the Founder-Chairman of Tiruppur-based clothing manufacturer K M Knitwear Pvt Ltd, was hopeful that the deal would increase job opportunities. “Currently about a million people are employed in the industry and I am hopeful that another half a million workforce will be added in the next three to five years if the momentum continues,” he said.
On the short-term impacts, he said, “It would be visible in the next 3 months. After the three months, we will be able to see good growth for the garments that will be shipped from Tamil Nadu. Tiruppur’s growth will be on a higher trajectory from now on.”
{{/usCountry}}On the short-term impacts, he said, “It would be visible in the next 3 months. After the three months, we will be able to see good growth for the garments that will be shipped from Tamil Nadu. Tiruppur’s growth will be on a higher trajectory from now on.”
{{/usCountry}}South Indian Mills Association president Durai Palanisamy said the FTA with US and Europe will trigger more demand from the textile exporters due to the increased competition in the sector.
Subramanian added that the existing orders would be cleared on mutual understanding between the buyer and the exporter.
“Once the commitment has been made, existing stocks will be cleared,” he said.
Tiruppur-based Starlight Exporters Founder M Rathinasamy, said, “Earlier, the apparel manufacturing orders were going to Bangladesh and other countries. But, after this deal, we will be getting more orders (from the United States). He was also hopeful that work on pending orders would resume soon.”
Tiruppur has long been recognised as a hub for the manufacture and export of textiles in the country. Many of the manufacturers supply finished apparels to Europe and the United States, the two big markets.
Over 55% of the country’s total cotton knitwear imports are from Tiruppur.