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UK buyers want Tirupur exporters to act fast

UK-based buyers want garment exporters based in Tirupur to ship orders before Britain leaves the European Union. Buyers want to avoid losses in the face of possible changes in import and export tariffs in the UK once Britain exits the EU. The Brexit deal is set to be sealed on March 29. It is uncertain, though, how exporters can respond to the request since garments cannot be manufactured overnight.

Britain is one of the major importers of apparel goods from India. For the Tirupur knitwear industry, such exports account for about 12 per cent of their business. Goods worth Rs 3,000 crores are exported from the cluster a year. Trade bodies like the Apparel Export Promotion Council have urged the government to take immediate steps to enter a free trade agreement with the UK once the Brexit deal is completed. They feel since there is a strong preference for Indian apparels among buyers and chain stores in Britain, it will be possible to sign an agreement with Britain.

Brexit is only impacting a limited number of Indian businesses operating and investing in the UK. These include manufacturing companies that rely on just-in-time supply chains and who trade between the UK and the EU.

 
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