The knitwear industry in Tiruppur has not recovered from the double whammy of demonetisation and GST implementation. With a stack of government policies blocking their way, the manufacturers feel that it is a matter of time before many units shut shop.
THE knitwear industry in what is perhaps India’s most resilient town, Tiruppur, is gasping for survival. A combination of factors—bad policy; poor implementation; promises the Central and State governments have failed to deliver on; sudden spikes in raw material costs; strict enforcement of environmental laws; dwindling access to organised credit; competition from emerging players such as Bangladesh, Vietnam and Sri Lanka; and mounting production time demands of buyers who are familiar with how the industry operates—is driving the industry into a downward spiral.
Exports from Tiruppur, which accounts for about 50 per cent of the total knitwear exports from India, were growing around 10 per cent annually until about last year. Each year, the town added 15,000 to 20,000 jobs in the process. But the past year witnessed a decline, of 7 per cent, for the first time since 2011: the BY R.K. RADHAKRISHNAN value of exports fell to Rs.24,000 crore in 2017-18 from Rs.26,000 crore in 2016-17. Although India was in a major growth mode after the cessation of the Multi Fibre Arrangement in 2004, which governed the world textile trade for three decades until 2004, it is now struggling to hold on to the nearly 4 per cent market share because of competition and favourable policies implemented in Vietnam, Bangladesh and Turkey.
It does not look that good this
A FABRIC UNIT IN TIRUPPUR that was closed down.