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Tiruppur textile exporters welcome India–US trade deal

Tiruppur Textile Exporters Welcome India–US Trade Deal
Tiruppur’s textile export sector welcomes the India–US trade deal, expecting improved market access and export growth opportunities.

Textile exporters in Tamil Nadu’s Tiruppur have welcomed the India–US framework trade agreement, saying it will significantly improve the competitiveness of Indian textile and garment manufacturers against key rivals such as China and Bangladesh. Exporters also expect the clearance of orders worth nearly ₹4,000 crore that had been put on hold due to high tariffs.

Under the agreement, US tariffs on Indian textile exports have been reduced from 50% to 18%, offering immediate relief to exporters who had been facing margin pressure and order uncertainty. K M Subramanian, President of the Tiruppur Exporters’ Association (TEA), described the joint statement issued by India and the United States as “significant” and said the industry has welcomed the move as it opens the door for substantial growth.

“This deal will provide major growth for Tiruppur alone. Over the next five years, we expect exports from Tiruppur to double,” Subramanian said, noting that Tiruppur’s garment exports are currently valued at around ₹15,000 crore. Subramanian, who is also the Founder-Chairman of Tiruppur-based K M Knitwear Pvt Ltd, expressed optimism about job creation. “At present, about one million people are employed in the industry. If the current momentum continues, we expect an additional five lakh jobs to be created over the next three to five years,” he said.

Commenting on near-term prospects, Subramanian said the impact of the tariff reduction would become visible within the next three months. “After that, we will see good growth in garment shipments from Tamil Nadu. Tiruppur’s growth trajectory will be much stronger from now on,” he added. Durai Palanisamy, President of the Southern India Mills’ Association (SIMA), said free trade agreements with the US and Europe would trigger higher demand for Indian textiles, driven by improved competitiveness in global markets.

Subramanian also noted that exporters and buyers were working together to clear existing orders that had been deferred. “Once commitments are made, existing stocks will be cleared on mutual understanding between buyers and exporters,” he said. Echoing similar views, M Rathinasamy, Founder of Tiruppur-based Starlight Exporters, said apparel orders that had earlier shifted to Bangladesh and other competing countries were likely to return. “After this deal, we expect to receive more orders from the United States, and work on pending orders should resume soon,” he said.

Tiruppur has long been recognized as one of India’s leading hubs for textile and garment manufacturing, supplying finished apparel to major markets such as Europe and the United States. The cluster accounts for over 55% of India’s total cotton knitwear exports, underscoring its critical role in the country’s textile export ecosystem.

News Courtesy : Hindustan Times

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