Uncertainty due to the Russia-Ukraine may lead to a 25 per cent decline in garment exports from Tirupur and Noida in FY23. As per a Textile Today report, European brands have slashed garment offtake from Tiruppur by almost 25 per cent. The garment hub annually exports Rs 35,000 crore worth goods. Raja Shanmugam, President, Tirupur Exporters Association (TEA) says, export volumes from Tiruppur have declined as yarn prices have increased 110 per cent since 2020.
Most units in Tirrupur are MSMEs. With rise in yarn prices, delivering goods on time is becoming difficult. But foreign buyers rely on India because of stability in country. Meanwhile units in Noida have seen a 15 per cent drop in orders from Europe, says Lalit Thukral, President, Noida Apparel Export Cluster. Spanish fashion retailer Inditex that owns the Zara has closed 502 shops in Russia besides stopping online sales a fortnight ago. H&M has also halted operations in Russia while Spanish retailer Mango has temporarily closed 120 shops in the country.
