India-UK trade deal could give Tirupur knitwear exports a double digit boost
Exporters in knitwear hub Tirupur are eagerly awaiting the signing of the India-UK Free Trade Agreement as negotiations continue towards its implementation. The India Knit Fair Association predicts that the FTA could boost exports from Tirupur by 10%.
Out of the total knitwear and garments produced in factories in Tirupur, around 20% is exported to the UK, the Indian Knit Fair Association’s former president A Shaktivel told the Press Trust of India. The area’s total exports currently amount to around Rs 33,000 crore a year with a year-on-year growth rate of 20%, which could be further boosted by the FTA.
The India Knit Fair Association has predicted that Tirupur’s total exports will increase to Rs 38,000 crore a year in the 2024 financial year. Exports should then reach Rs 50,000 crore in the 2025 financial year, according to the India Knit Fair Association’s newly elected president K N Subramanian.
Negotiations have been held throughout the year to iron out the details of the agreement and the FTA is expected to be signed after the Deepavali festive season. The knitwear industry expects a significant boost to exports following the deal as it is confident that Indian goods are known for their quality. The FTA is also expected to boost the Indian apparel export market in general, among other industries.
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