Mumbai: The economic recession in America and Europe is having a serious impact on the exporters of Tirupur, the country’s major apparel hub. Tiruppur exporters are not seeing the expected Christmas and New Year demand from the US and Europe due to recession and persistent high inflation.
Tirupur station in Tamil Nadu accounts for fifty-five percent of the country’s apparel exports. Exporters from Tiruppur claim that global apparel brands which have been buying fashion apparel at eight to ten dollars per item are opting for cheaper apparel at two to three dollars this time.
In addition to the Russia-Ukraine war, the US and Europe are currently experiencing high inflation due to supply disruptions, and interest rates are currently running high. An official of the Tiruppur Exporters Association said such a situation was seen earlier during the financial crisis of 2008-09.
Not only from America and Europe but also from Australia, the demand for Christmas related clothes is seen to be sluggish. The demand related to Christmas and New Year is being seen 40 percent less this year.
He said, usually orders for Christmas start coming from September, but this year the situation is critical.