Tirupur expects 25% jump in exports in FY26 from China, Bangladesh diversification

Tirupur knitwear industry, which exported goods worth Rs 40,000 crore in 2024-25 financial year (FY25), expects around 25% growth in the next fiscal as buyers diversify purchases from Bangladesh and China amid political turmoil and ongoing US tariff war. According to the exporters' body, buyers are increasingly placing orders with domestic companies. Dr A Sakthivel, vice chairman of Apparel Export Promotion Council (AEPC) told TOI that domestic companies are witnessing more orders from the US and UK, two key export destinations for Tirupur, as they expect favourable terms from India's bilateral trade pacts with these two countries. Currently India is in talks with the US on a trade deal with the US with the deal expected to finalise later this year.“India’s presence in the complete supply chain from raw material to finished goods, quicker execution of orders and recent improvements in quality has increased the confidence of Indian suppliers. That too is contributing to the increase of orders,” he said, adding it is expected to maintain a similar trajectory despite global uncertainties. The Tirupur cluster recorded 20% growth in the previous year (FY25) with Rs 40,000 crore and roughly shipped 45% materials to Europe and 30% to the US. India’s readymade garment (RMG) sector registered 10% growth in exports during the fiscal year 2024 -25 with total goods worth $16 billion (approximately Rs 1,36,000 crore). Out of this 49% were knit sector exports, significant increase from the previous year.