Total garment exports from the country registered 4.8% increase in February and 1.7 % in March compared with the year-earlier period.
K.M. Subramanian, president of TEA, said that Bangladesh will have duty-free access to Europe till 2027. With India expected to sign a trade agreement with the U.K., Indian garments will be competitive and hence, large retailers are already looking for suppliers and booking factories in India. Tiruppur is expected to see almost 10% growth in exports in the coming months.
According to Kumar Duraisamy, joint secretary of TEA, small retailers in Europe have exhausted their inventory and are buying now. Further, almost 20% of MSME exporters in Tiruppur went out of business because of the decline in orders last year. Hence, the existing units are running to full capacity now, are planning capacity additions and there is almost 20% labour shortage in Tiruppur.