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Home News Tiruppur Knits a Resilient Comeback: Weaving Success Amidst Currency Fluctuations

Tiruppur Knits a Resilient Comeback: Weaving Success Amidst Currency Fluctuations

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Tiruppur Knits a Resilient Comeback: Weaving Success Amidst Currency Fluctuations

Tiruppur, India’s knitwear capital, is experiencing a remarkable export surge, defying economic headwinds and solidifying its position in the global textile landscape. While the Indian rupee’s depreciation against the US dollar has raised concerns for many sectors, it has inadvertently fueled Tiruppur’s export growth. Between April and December of the current financial year, exports from this Tamil Nadu hub reached an impressive ₹26,000 crore, nearing last year’s total of ₹30,690 crore. Projections for 2024-25 estimate a potential leap to ₹35,000-40,000 crore, reinforcing Tiruppur’s dominance, accounting for 55% of India’s knitwear exports.

This export boom is partially attributed to the rupee’s near 3% depreciation against the dollar in 2024, making Indian knitwear more competitive internationally. The Tiruppur Exporters’ Association (TEA) estimates that currency fluctuations alone account for approximately 5% of this growth. This positive trend is mirrored nationally, with Indian apparel exports witnessing a 10% year-on-year increase in November, reaching $1.1 billion. Strong import growth in key markets like the US, EU, and UK has driven orders from major global retailers.

TEA President, KM Subramanian, highlights the impressive client roster, including retail giants like Primark, Tesco, Next, Marks & Spencer, Warner Bros., Walmart, and Tommy Hilfiger, along with Australian and European brands like Target, Woolworths, and Duns. The UAE has also emerged as a significant market, facilitated by a free-trade agreement that streamlines exports to Africa via West Asia.

Beyond currency advantages, Tiruppur’s success is deeply rooted in its commitment to sustainable practices. The town’s carbon-negative status, achieved through significant investments in green energy, zero liquid discharge systems, and extensive tree planting, has resonated with global buyers increasingly prioritizing ESG (environmental, social, and governance) compliance.

Technological advancements have also played a crucial role. The adoption of AI-driven manufacturing has boosted production capacity from 45% to 65%, marking a significant improvement after a challenging 2023-24, where exports dipped by 11% to ₹30,690 crore due to global disruptions.

Geopolitical factors are further contributing to Tiruppur’s resurgence. The “China Plus One” strategy, encouraging supply chain diversification, is diverting business towards India. Political instability in Bangladesh, another major textile producer, has further strengthened Tiruppur’s position.

Sanjay K Jain, Managing Director of TT Limited and Chairman of the Indian Chambers of Commerce’s National Committee, pointed to a surge in imports by key markets in October, with the US and EU registering a 22% year-on-year increase and the UK a 5% rise. He noted that the rupee depreciation benefits the entire textile chain, with approximately 50% of the gain being passed on to buyers. Tiruppur’s story is one of resilience, adaptability, and a commitment to sustainable and technologically advanced manufacturing, positioning it for continued success in the global textile market.