Partly driven by the political instability in Bangladesh, India's textile hub, Tiruppur, is experiencing a growth in orders from the US and UK after nearly two challenging years. The region's 5,000 apparel export units are now operating at 95 per cent capacity, a significant jump from 60-65 per cent capacity witnessed a few months ago.
KM Subramanian, President, Tiruppur Exporters Association (TEA), notes, new buyers from the UK are actively seeking samples from the region’s exporters with talks set to resume early next year. US-based companies are also redirecting orders to India, especially for the upcoming Spring season, as they diversify away from Bangladesh.
From Rs 35,000 in FY 2024, Tirupur's revenue is projected to rise to Rs 40,000 crore in FY 2025. India's apparel exports rose by 35 per cent to $1.22 billion in Oct’24 compared to $908.78 million a year earlier, signaling a broader trend of increased demand.
Punit Lalbhai, Vice Chairman and Executive Director, Arvind Ltd, affirms, credible garment manufacturers are experiencing high demand, making India a preferred sourcing destination for global buyers. Sanjay Jain, Chairman, Indian Chamber of Commerce's National Committee on Textiles, adds, US demand is bouncing back, following a period of reduced imports post-pandemic. Apparel exports are likely to grow to $18.5-$19 billion in FY25 up from $16 billion in FY24, with momentum expected to continue over the next two years, he projects.
Sudhir Dhingra, Owner, Orient Craft, observes, while many orders are shifting from Bangladesh to India, smaller Indian manufacturers may struggle to handle the volume. The government needs to introduce new incentives, such as a Production Linked Incentive (PLI) for garment manufacturing, and a better access to working capital loans for smaller units to capitalise on the opportunity, he adds.
The current political unrest has prompted many global brands to diversify supply chains, with India emerging as a key alternative, avers Lalbhai. UK clients are already increasing their sourcing from India in anticipation of the FTA, which could eliminate the current 12 per cent duty differential favoring Bangladesh, adds Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director, Gokaldas Exports.
Indian exporters are witnessing a positive trend as US brands recover from excess inventory and start purchasing again, notes Ganapathi. Inventory levels have reached a low, prompting renewed demand, and the uptick in US apparel imports, benefitting Indian manufacturers, he adds.
