Knitwear exports from Tirupur saw a 15 per cent growth to Rs17,817 crore ($2.95 billion) in the 2013-14 financial year, after a 7 per cent drop to Rs13,709.83 crore ($2.52 billion) in 2012-13.
The industry exported $2.73 billion worth of goods in 2011-12, according to Tirupur Exporters Association President A Sakthivel.
Exports from Tirupur's knitwear hub, which have been stagnating for three years in a row, has now started to inch higher, growing by about 30 per cent in rupee terms and 15 per cent in dollar terms.
The higher growth in knitwear exports from the country is attributed to increased manufacturing costs in China, which went up by 15-18%, better compliance norms and penetration of newer markets.
A decline in the value of the rupee and increased purchasing power in the EU markets combined with the revival of the US market also helped the spike in exports.
In the last fiscal, new markets contributed around Rs600 crore to the overall revenue, said Sakthivel.
According to Sakthivel, a free trade agreement with Europe, Canada, Israel and other countries and changes the policies has the potential to double exports in the next 3-4 years.
The knitwear industry is also one of the major sources of employment in Tirupur, employing around four lakh people.