Tirupur exports in negative growth

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According to Tirupur Exporters Association (TEA), exports declined to Rs 9,500 crore in 2008-09 from Rs 9,950 crore in 2007-08 and Rs 11,000 crore in 2006-07, Exports from the knitwear city of Tirupur continued to show a negative growth, and the industry representatives say that their vision to become a Rs 25,000-crore industry by 2012 is ‘impossible’. The industry has also decided to hold back investments worth Rs 1,500 crore. The target was set based on the 15-20 per cent growth that the industry had witnessed till 2007-08. However, exports started declining by about 13 per cent since then. The negative growth is simply due to shifting of orders to china, Bangladesh and Vietnam, the Chinese government has increased the value-added tax (VAT) refund to 17 per cent from nine per cent, while Bangladesh offers a 15 per cent subsidy for garment exporters. Besides, the exporters get various incentives from the Bangladesh government including tax support, infrastructure and power.