10% Decline In Textile Export
Direct knitwear exports from Tirupur during the financial year 2007-08 have shown a 10 per cent decline over the previous year. The consolidated export for the year fell to Rs 9,950 crore as compared to Rs 11,000 crore registered in 2006-07. The export figures, according to the President of the Tirupur Exporters Association (TEA), Mr A. Sakthivel, were arrived at based on the shipment details compiled from the data provided by the Tirupur-based banks. The consolidated export for the year fell to Rs 9,950 crore as compared to Rs 11,000 crore registered in 2006-07.
Tirupur usually records an average annual export growth rate of 15 per cent since the dismantling of textile and apparel export quota. In that sense, the 10 per cent negative growth in exports would actually mean a net export loss of 25 per cent for the region. This is the first time after making a mark in the knitwear export map of the country in 1985, Tirupur is showing negative growth in exports and this, according to Mr Sakthivel, would put on hold any credit offtake under the Technology Upgradation Fund scheme either for modernisation or expansion.
To boost the morale of the export trade, the Centre should do away with fringe benefit tax for exports, besides reducing the rate of interest and refunding various state and local levies incurred by the export trade, Mr Sakthivel said.
