Image for representational purposes.
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Chennai: Knitwear exporters in Tiruppur and in the textile hub of Coimbatore have welcomed the India-EU FTA, saying the deal will not just increase India’s exports to the European Union, but enables the players here to effectively compete with key supplier countries like Bangladesh, Turkiye, and Vietnam.
Tiruppur Exporters’ Association (TEA) President KM Subramanian told DH that the industry hopes to increase its exports to the EU market from the current 25%, to 40% within a couple of years of the agreement coming into operation. Subramanian said increasing capacities for exporters was not a big deal and that they can operationalise a new factory in about six months.
“This is a welcome development for us. Already, 25% of our exports go to Europe and we only hope that the FTA will give us further advantage. Since we supply quality products and most of the European brands already buy from Tiruppur, we only hope to increase the quantity. We also believe new brands will come to us,” Subramanian said.
He added that exporters are already expanding capacities by opening new factories in several parts of Tamil Nadu, including the PM-MITRA park in Virudhunagar, and in the Cauvery Delta districts at the instance of the state government.
Global advantage
The FTA will also enhance global competitiveness, giving an edge to suppliers from Tiruppur. “We will now have advantage over Bangladesh and Vietnam, our main competitors. Once the FTA is operationalised, there will no duty which will help us compete better. It will only be about quality, not price,” another exporter added.
The FTA has come at a time when the knitwear hub has lost thousands of crores due to the US imposing 50% tariff on Indian imports. “The US is a market that is irreplaceable due to sheer volumes. But the EU is a standalone market, and this agreement will help us make inroads into that market,” he added.
The Southern India Mills Association (SIMA) said the FTA would enable India to effectively compete with key supplier countries such as Bangladesh, Turkiye, and Vietnam, which currently command shares of about 21%, 10%, and 5%, respectively.