Knitwear exports from the south Indian textile hub of Tirupur registered revenue of Rs. 10,050 crores in the first six months of the ongoing fiscal year 2014-15, growing at 16 percent compared to exports of Rs. 8,650 crores during the corresponding period of last fiscal, according to the Tirupur Exporters’ Association (TEA).
In dollar terms, knitwear exports increased at 13.35 percent year-on-year during April-September 2014, TEA president A Sakthivel said in a statement.
Mr. Sakthivel said Tirupur knitwear exports grew at the same pace as all India garment exports during the six-month period, and appreciated efforts made by Tirupur exporters in achieving high export growth rate.
The apparel industry is eagerly awaiting the announcement of the new Foreign Trade Policy 2014-19, and is also expecting announcement on continuance of 3% Interest Subvention on Packing Credit with retrospective effect from 1st April 2014, Mr. Sakthivel said.
TEA president feels that Tirupur knitwear exports would be able to achieve the same export growth rate in the second half of the ongoing fiscal year as abundant cotton crop along with dip in cotton exports favours reduction in yarn prices in the coming days.
However, the Tamil Nadu Electricity Regulatory Commission (TNERC) proposal to increase the power tariff to HT and LT consumers by 30% will have an impact on exports.
In fiscal year 2014-15, TEA expects Tirupur knitwear exports to touch Rs. 21,000 crores.
Meanwhile, TEA has the Indian Government to take necessary steps immediately so that exporters can avail General Preferential Tariff (GPT) benefits in their exports to Canada after 1st January 2015.
TEA also urged the Government to make efforts for a Free Trade Agreement (FTA) with Canada in order to recapture the Canadian market and also increase India’s exports to Canada.
Established in 1990, TEA is an association exclusively for exporters of cotton knitwear with production facilities in Tirupur. (RKS)
