Having crossed Rs 20, 482 crore by October, India’s apparel exports are expected to rise to Rs 30,000 crore by December 2025, registering a 15-18 per cent monthly growth.
A rise in international demand for knitwear garments has revitalized production in Tiruppur's textile units, following several challenging years. In FY2022-23, knitwear exports from the region's knitwear exports grew ti Rs 34,350 crore.
However, exports from the sector were once again hit during 2023-24 due to the Russia-Ukraine war alongwith economic slowdowns in Western markets, rising freight costs and higher electricity charges. Despite these challenges, political shifts in the US, changes in trade relations with China, and unrest in Bangladesh, exports continue to create new trade opportunities for India, says Kumar Duraisamy, Joint Secretary, Tirupur Exporters' Association (TEA).
The expiration of Bangladesh's free trade agreement (FTA) with the EU in 2027 has prompted many foreign buyers to shift their attention to India, exporters point out. The country is also set to complete negotiations for an FTA with the UK, offering small, medium, and micro enterprises an opportunity to recover, says Kumar.
The positive trend is also seen across India’s ready-made garment (RMG) industry, with RMG exports growing by 5.2 per cent growth in December 2024 compared to the same month in 2023, according to A Sakthivel, Vice-Chairman, Apparel Export Promotion Council (AEPC). From April to December 2024, India’s overall RMG exports rose by 13.2 per cent Y-o-Y to Rs 94,936 crore. Meanwhile, the Tiruppur knitwear sector is expected to grow by 15 per cent this fiscal year, pushing exports beyond Rs 40,000 crore, he adds.
Manufacturers believe India's RMG sector could achieve even greater success with additional government support. MP Mauthurathinam, President, Tiruppur Exporters and Manufacturers Association (TEAMA) urges the government to remove the tax on cotton imports, establish more FTAs, and reduce bank interest rates to fully capitalize on these opportunities.
Currently, India ranks sixth in garment exports, accounting for just 3.9 per cent of global exports, while Bangladesh holds 12 per cent, and China dominates with 36 per cent. With the right announcements in the upcoming budget, the apparel industry in India could reach new heights, Muthurathinam signs off.
