Tirupur’s knitwear exports fell by some 19 per cent in the third quarter.
There was a contraction in demand in key markets such as the US and the European Union during the December 2022 quarter despite buying seasons such as Thanksgiving Day, Christmas, and New Year.
Though the order placement is gradually increasing, and January 2023 saw some increases, these are not promising and the declining trend is expected to continue in the fourth quarter. In dollar terms, knitwear exports from Tiruppur declined by ten per cent when compared with December 2021. Overall, knitwear exports from India fell two per cent during December 2022 as against December 2021.The declining trend for Tirupur exporters started in August 2022 as an impact of the Russian-Ukraine war. Tirupur accounts for about 55 per cent of knitwear exports from India.
High inflationary conditions and recessionary trends in key markets of the US and EU kept the textile and apparel demand subdued in 2022, especially the latter half. Volume growth in most markets remained in negative to nil zone, with market size increase happening due to higher product costs. These dwindling orders have caused some financial stress for exporters in Tirupur and the industry has requested for an increase in interest subvention.