TIRUPUR: The multi-million dollar textile industry in Tirupur had to brace successive blows - Brexit, demonetisation and GST slowing down the business. But sailing through all the troubles, the industry has set an ambitious goal of achieving Rs 40,000-crore export target this year. Tirupur Exporters Association (TEA) President Raja M Shanmugam shares the challenges and opportunities for the Tirupur industrialists in the coming years.
The introduction of GST has hit all the industries hard. But there were no options but to fall in line. In case of the textile industry, there were certain anomalies in the GST, especially the 18% tax levied to job work. But the Union Finance Ministry has corrected it after hearing from the stakeholders including TEA. By reducing GST to 5%, it has come on par with that of the other areas like dyeing and compacting. Tirupur textile units fell short of achieving their target last fiscal.
The industry fell short by Rs 4,000 crore of its target of Rs 30,000 crore. But the prime reason was Brexit because the international value of Pound had fallen up to 25%.
With 50% of knitwear export in the Country contributed by Tirupur, the dollar city stands sixth in the international market. Export is the important for Tirupur. But the domestic trade has scaled five times bigger in last five years.
The exponential growth happened because there was conceptual change in the demand of dresses from the conservative side in the Country. The State Government is proposing to introduce a textile policy. The Government has understood its importance lately. Apart from contributing immensely to the State's economy, the textile sector has been creating more jobs, especially among the women, next to the farming industry. Many States already have such policy. More investments will flow into the State in due to the policy, he further added.