Tirupur Knitwear Industry Faces Challenges from Bangladesh & MMF

Tirupur, India's top knitwear hub, is facing challenges from Bangladesh and man-made fibres. The Free Trade Agreement between India and Bangladesh has allowed Bangladesh to import fabrics into India without customs duty, making them cheaper and more competitive.
Role of FTAs
Bangladesh is also exporting high-tech finished apparels to the EU and US markets at a lower cost due to its duty-free status and access to cost-effective raw materials from China.
MMF trend is on the rise
The increasing popularity of man-made fibres, which are cheaper and more durable than cotton, is also affecting Tirupur's knitwear business.
Challenges galore
Tirupur manufacturers are also facing a global demand slowdown and reduced export orders.
Tirupur manufacturers will now have to wait until the end of this year for 2024 spring-summer orders, which means that profits will not come in for a long time.