Tirupur knitwear exports likely to touch Rs36,000 cr by FY16-17

Tirupur knitwear exports is which currently having all-India market share of 44.29 percent with outbound shipments grown to Rs20,730 crore in 2014-15, is poised to reach the target of Rs36,000 crore by 2016-17 once the industry starts exporting synthetic-based garments, which have a market throughout the year globally, said President A Shaktivel of Tirupur Exporters Association at its 25th Annual General Meeting.

Helped by input factors including favourable cotton yarn prices, knitwear exports from Tirupur increased to Rs 20,730 crore from Rs 18,000 crore in 2013-14, a growth of 15.52 per cent in Rupee terms and 15.94 per cent in terms of Foreign currency, he pointed out.

The total ready-made garment exports from India had for the first time crossed the Rs 1 Lakh crore-mark in 2014-15 to touch Rs 1.03 lakh crore, (USD 16.82 billion). Of this, knitwear exports was Rs 46,801 Crore, with a share of 45.43 per cent, Shaktivel said.

As there was volatility in the euro in the first quarter of 2015-16, the share of dollar quoted by exporters increased to 58.51 per cent against 55.41 recorded in 2014-15, he said.

The devaluation of the Chinese currency by 4 percent mainly to boost their exports had a ripple effect on all currencies globally and the rupee had also depreciated to a new two-year low of Rs.66.65 per dollar on August 25.

He further added that the China effect also prompted their main competitor Vietnam to devalue their currency Dong by one per cent.

They expect that the Comprehensive Economic Partnership Agreement with Canada and Australia will take place before end of 2015 and help increase their exports to these countries.

The association also voiced concern over the delay in entering into an Free Trade Agreement with the EU, a major market for India, stating that in 2014-15, total knitwear exports to EU was Rs 19,774 crore, with the export share of 42.25 per cent.

The association is expecting the announcement of both National Textile Policy and Tamil Nadu Textile policy soon which will definitely favour the textile sector to achieve the set target.