Having achieved exports worth Rs 400 billion in FY25, the knitwear industry in Tirupur, anticipates these exports to rise by around 25 per cent in the upcoming fiscal year. This optimistic outlook is fueled by international buyers seeking to diversify their sourcing away from Bangladesh and China due to political instability and the ongoing US tariff disputes.

According to the Apparel Export Promotion Council (AEPC), buyers are increasingly placing orders with Indian companies. Dr A Sakthivel, Vice Chairman, AEPC, notes, domestic firms are experiencing a growth in orders from the US and the UK, two crucial export markets for Tirupur.

This increase is attributed to expectations of favorable terms arising from India's ongoing bilateral trade discussions with these two nations. India is currently engaged in trade negotiations with the US, with a deal anticipated to be finalized later this year.

India’s comprehensive presence across the entire supply chain, from raw materials to finished goods, coupled with quicker order execution and recent enhancements in quality, has boosted the confidence of international buyers in Indian suppliers. This is also contributing significantly to the rise in order volumes, states Dr Sakthivel. This positive trend is expected to continue despite prevailing global uncertainties, he adds.

In FY25, the Tirupur knitwear cluster recorded a 20 per cent rise in exports reaching Rs 400 billios. Around 45 per cent of these shipments were destined for Europe, and 30 per cent for the United States. RMG exports from India grew by 10 per cent to Rs 1.36 trillion in FY25. Notably, knitwear exports constituted 49 per cent of this total, marking a significant increase from the previous year.