Knitwear exports from Tirupur are poised to surpass the Rs. 30,000-cr mark in the current financial year 2019-20, the Tirupur Exporters’ Association (TEA) has said. In 2018-19, exports from the knitwear hub are estimated to have grown by 8.3 per cent to Rs. 26,000 cr from Rs. 24,000 cr in the previous fiscal. Though the annual average export growth of 7 per cent was recorded in last year, in the last six months, the average export growth was significant at about 31.15 per cent over the corresponding period in 2017-18.
After struggling for two years, Tirupur exports have resumed back to the growth trajectory. With the continuance of positive growth trend coupled with the recent increase in RoSCTL rate and formation of stable Government, Tirupur exports is expected to cross Rs. 30,000 cr mark in 2019-20.
Meanwhile, the industry has welcomed the new textile policy and thanked the Government of Tamil Nadu for announcing the same. The policy gives a slew of incentives for the new investments, infrastructure development and also for modernising the existing spinning, weaving and processing sectors. The industry has appreciated the government for giving importance to the technical textile sector, and skill development. It would greatly help the State to further strengthen the competitiveness.
Further, Union Ministry of Textiles has amended hank yarn packing provisions decreasing the proportion of packing yarn for civil consumption in hank form from the previous 40 per cent to 30 per cent in each quarterly period. The new provision would come into effect retrospectively from January-March 2019 quarter. This will help the spinners bring down the cost and improve their competitiveness, thereby enabling ease of doing business for the entire cotton textile industry.