After a notable decline in April, India's ready-made garment (RMG) exports are rebounding in May. Exporters in Tiruppur are witnessing an increase in export values, although full-volume recovery may take time. Key global players like Walmart, H&M, Tommy Hilfiger, and Target are placing orders in this textile hub. 

Export values rise, volumes lag 

Exports Recover in May; While export values are rising, volumes remain subdued by 5-10%, as reported by the Tirupur Exporters Association (TEA). However, sales are anticipated to bounce back by June. Remarkably, despite reduced demand, Tiruppur's capacity has expanded by 20% due to government policies. 

Walmart's sourcing commitment boosts optimism

The region is optimistic about Walmart's commitment to source $10 billion worth of goods from India annually by 2027. With declining US inflation and fuel prices, an improvement in order flow is expected. The demand downturn was primarily influenced by the Russia-Ukraine war and inflation in Europe. 

Notably, the US holds the largest share of India's knitwear exports (32%), followed by EU nations (30%), the UK (9%), and others (30%). 

Government schemes have contributed to a 20% capacity increase, and the industry eagerly awaits potential benefits from a PLI-2 scheme.