Garment exporters in Tamil Nadu’s textile hub Tiruppur expect shipments to the United States to double to about Rs 30,000 crore over the next three years following the India-US trade framework, industry representatives told PTI.
They also indicated that the sector could generate about 5 lakh additional jobs over the next three to five years as export orders and production expand.
India and the United States on Saturday announced that they have finalised the framework for the first phase of the bilateral trade agreement under which both sides will reduce import duties on a number of goods to boost two-way trade.
Tiruppur Exporters' Association president K M Subramanian said, “We welcome it. This deal assumes significance as it will give a huge growth for Tiruppur over the next 5 years.”
He said garment exports from Tamil Nadu are currently valued at about Rs 15,000 crore and are expected to double to Rs 30,000 crore over the next three years following the agreement.
Subramanian, also founder-chairman of Tiruppur-based clothing manufacturer K M Knitwear Pvt Ltd, said the impact of the deal is expected to be visible over the next three months.
“After that we will be able to see a good growth for (India made) garments that will be exported from Tamil Nadu. Tiruppur's growth will be on a higher trajectory,” he said.
On employment, he said, “Currently, about 10 lakh people are employed in this industry. It will witness addition of another 5 lakh jobs over the next 3 to 5 years.”
Another Tiruppur-based entrepreneur and founder of Starrlight Exporters, M Rathinasamy, said, “Earlier, some of the orders were going to Bangladesh and other countries. After this deal, we will be getting more orders (from the United States).”
“We expect that we will be getting a large number of orders on account of this deal,” he added.
The Tiruppur Exporters' Association represents exporters of cotton knitwear operating in Tiruppur and neighbouring regions and currently represents about 1,135 knitwear exporters.
The TOI Business Desk is a vigilant and dedicated team of journal...
Read MoreThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
Read Less
Start a Conversation
Post comment