West Asia crisis disrupts Tiruppur shipments, strains India's textile industry
India's textile industry is facing fresh trouble as the crisis in West Asia disrupts key trade routes.
Already dealing with GST and demonetization fallout, exporters like Tiruppur are now seeing consignments to West Asia being held up, and West Asia accounts for about 5% of Tiruppur's exports.
With India holding just 3% of global apparel exports, even small setbacks can sting.
Textiles losing up to 100cr daily
It's not just about shipping delays: input costs are spiking too. Coal prices have shot up by 80%, chemicals by 20%, and The textile industry is already clocking losses of up to ₹100 crore per day.
Labor issues are piling on, with LPG shortages making it harder for factories to run smoothly and causing workers to leave.
As Aniket Dani from Crisil Intelligence points out, exports to the Middle East (which buys 11% of India's ready-made garments) could drop further if things don't improve.