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Textile Hub Attracts Global Brands as Sourcing Shifts to India



In a positive development for India's textile industry, renowned global brands such as Marks & Spencer, Next, Decathlon, Primark, GAP, Walmart, Pepco, and Tesco are planning to increase their sourcing from the textile production hub of Tiruppur, Tamil Nadu. The surge in export orders comes after a decline caused by the pandemic and geopolitical events. The recent Union budget's customs duty changes, coupled with the India-Australia Free Trade Agreement, have further boosted Tiruppur's prospects. The favorable conditions and stability offered by India have attracted global buyers, with more orders expected to divert from neighboring Bangladesh.

 

Tiruppur's reputation as a reliable sourcing country has been reinforced by social auditing conducted by global brands. These audits assess worker conditions and the environmental impact of factories, ensuring ethical practices. KM Subramanian, President of Tiruppur Exporters Association (TEA), highlighted the involvement of brands like Next, Decathlon, and Pepco in sourcing from Tiruppur. The growing preference for India over other countries, notably Bangladesh, has prompted an influx of orders, with expectations of a continued shift in sourcing.

 

The Union budget's initiatives have also positively impacted the leather industry. P Rajasekaran, Business Head of Tata International's finished leather division, expressed optimism about increased exports of Indian leather products following the government's import duty waiver for shoes and leather goods. The rising demand for sustainable leather products from global brands, particularly in the US, China, and Europe, will drive the production of sustainable leather at Tata International.

 

Leading brands, such as H&M and Primark, have acknowledged India's significance in their sourcing strategy. H&M emphasized their commitment to long-term sustainability goals, while Primark welcomed progress in the customs duty reduction space. The increased interest from global brands bodes well for Tiruppur's export prospects, with a projected 10% growth expected this fiscal year.

 

The success of Tiruppur's textile industry is evident in its impressive revenue of ₹33,500 crore in the previous fiscal year. The hub boasts approximately 6,000 knitwear and knitwear-accessory units, further solidifying its position as a key player in the global textile market.

 

While Next, GAP, Decathlon, and Zara did not respond to queries regarding their sourcing plans, the overall outlook for Tiruppur remains optimistic. As the textile industry in India continues to thrive, the success story of Tiruppur serves as a testament to the country's potential as a reliable and sustainable sourcing destination for global brands.

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