Orders from global brands Mango, Zara and H&M for garment makers n Tiruppur and Noida have declined by 25 per cent due to suspension of operations in Russia. Zara-owner Inditex has closed 502 shops in Russia besides stopping online sales a fortnight ago. H&M has also suspended operations in Russia, while Mango has also temporarily closed its 120 shops in Russia.

This has led to a 15 per cent decline in fresh orders, says Lalit Thukral, President, Noida Apparel Export Cluster. The apparel export cluster houses 3,000 units, with an annual turnover of nearly Rs 30,000 crore. Raja Shanmugam, President, Tirupur Exporters' Association adds, fresh orders from brands like Zara, Mango, H&M have dropped 25 per cent since Russia’s invasion of Ukraine. Shipments through the Black Sea have also come to a grinding halt and exporters are now sending garments by air. This has shot up air freight rates upto Rs 500 per kg from Rs 150 per kg.

Exporters are worried about Q1 of FY23 as they do not know how long the war will continue and how the world will react to it, adds Shanmugam. In current fiscal, Tirupur exporters expect to exports garments worth Rs 3,000 crore while they have set a target of Rs 40,000 crore in FY23.