Over the past two weeks, the knitwear export industry in Tiruppur has secured orders worth Rs 450 crore as brands from Germany, the Netherlands, and Poland turn to India amidst Bangladesh’s political instability, as per a report byThe Economic Times.
Retailers like KiK, Zeeman, and Pepco have placed urgent orders for garments priced around $3 each, with delivery set before Christmas and New Year, says KM Subramanian, President, Tiruppur Exporters’ Association (TEA).
These orders include a range of knitted garments, such as kids' wear, nightwear, tops, and pyjamas. This surge in demand, particularly before Christmas, is unusual for the Tiruppur hub, as brands typically place orders in December and January for the spring/fall season or in June and July for the holiday season, notes Subramanian.
Additionally, global brands have initiated social audits at 10 newly selected knitwear factories in Tiruppur, signaling the potential for more orders. The audits are expected to be completed by mid-September, and if these factories meet global standards, more orders will likely follow in the New Year.
The Noida Apparel Export Cluster (NAEC) reported a 15 per cent increase in orders from Zara over the past month, compared to the same period last year. Zara has placed large orders for women’s tops and dresses, priced between $5 and $9, with tight delivery timelines of 60 days, an unusual surge at this time of year.
A Sakthivel, Head-Southern Region, Apparel Export Promotion Council, attributes some of this order rerouting from Bangladesh to India’s stable conditions. However, India could capture even more orders if a free trade agreement (FTA) with the European Union is finalised, as Bangladesh benefits from its existing FTA with the EU, he emphasises.
In FY24, India's apparel exports grew to $14.5 billion with RMG exports hitting $3.9 billion in Q1 FY24. The ratio between India’s and Bangladesh’s apparel exports narrowed to 2.5 times in Q1 FY25, indicating India’s growing global market share.
