Tiruppur and Noida’s apparel export industries are experiencing a significant increase in demand from international clothing brands.
As political unrest in Bangladesh continues, international clothing brands are increasingly turning to India for their production needs, leading to a significant surge in orders for the Tiruppur and Noida apparel industries.
Tiruppur, a key textile hub in Tamil Nadu, and the Noida apparel cluster are both experiencing a notable increase in demand. According to a media outlet, Tiruppur’s knitwear export industry has secured orders worth Rs 450 crore over the past two weeks from brands in Germany, the Netherlands, and Poland. This uptick is driven by the instability in Bangladesh.
Major retailers such as KiK, Zeeman, and Pepco have urgently placed orders for garments priced around $3 each, with delivery required before the Christmas and New Year holidays, as reported by KM Subramanian, president of the Tiruppur Exporters’ Association (TEA). Subramanian described the current surge in demand for knitwear as unprecedented, noting that brands typically place holiday orders months in advance.
The increase in orders includes various knitted garments like kids’ wear, nightwear, tops, and pyjamas. Subramanian added that global brands are also conducting social audits at 10 newly selected knitwear factories in Tiruppur. Completion of these audits by mid-September could lead to further orders in the New Year if the factories meet global standards.
Similarly, the Noida Apparel Export Cluster (NAEC) has reported a 15% rise in orders from Zara over the past month compared to last year. Zara’s orders include women’s tops and dresses priced between $5 and $9, with a delivery timeline of 60 days—a tight schedule for such large orders at this time of year.
A Sakthivel, head of the southern region of the Apparel Export Promotion Council, noted that some brands have shifted their orders from Bangladesh to Tiruppur due to the unrest. He added that India could see even more orders if the government finalizes a free trade agreement (FTA) with the European Union. Currently, Bangladesh’s FTA with the EU gives it a competitive edge.
India’s apparel export sector is narrowing the gap with Bangladesh. In FY24, India exported $14.5 billion worth of apparel, with $3.9 billion in readymade garment exports for Q1 FY25. While Bangladesh’s garment exports were about 3.2 times those of India in FY24, this ratio decreased to 2.5 times in the first quarter of FY25, reflecting India’s growing market share.
In response to the unrest in Bangladesh, the Indian government has paused the India-Bangladesh Friendship Pipeline (IBFP) construction project. This pause could impact the supply of diesel, a crucial resource for Bangladesh’s textile sector, potentially disrupting garment production in the country.