Industry leaders describe the performance as resilient given the multiple global disruptions faced by exporters. | Photo Credit: SIVA SARAVANAN S

After registering a robust 20 per cent growth in 2024-25, Tiruppur’s knitwear export industry witnessed a reversal in 2025-26, with exports declining nearly 5 per cent as uncertainty surrounding US tariffs weighed on orders during the second half of the fiscal.

Exports from the country’s largest knitwear hub fell 4.92 per cent to ₹42,544 crore in FY26, down from ₹44,747 crore in the previous year, according to data from the Tiruppur Exporters Association.

Industry leaders, however, describe the performance as resilient given the multiple global disruptions faced by exporters, including the Russia-Ukraine war, the West Asia crisis and tariff-related concerns in the US.

“Achieving an export turnover of ₹42,544 crore in FY26 remains highly commendable and stands as a true reflection of the determination, perseverance and unwavering commitment of every stakeholder involved in Tiruppur’s export manufacturing ecosystem,” said Kumar Duraisamy, Managing Director of Tiruppur-based Eastern Global Clothing.

According to exporters, the first half of FY26 was relatively strong, but the second half saw a sharp slowdown as buyers adopted a cautious approach following tariff announcements in the US market.

N Thirukkumaran, Chairman of Esstee Exports India Ltd, said the tariff issue significantly affected business sentiment and order flows.

The industry also felt the impact of the West Asia conflict, which pushed up prices of critical raw materials and added to cost pressures. Thirukkumaran warned that a prolonged conflict could further strain the sector through higher input and logistics costs.

Despite the setback, exporters are optimistic about the outlook for the current fiscal. Order inflows from both the US and European markets have improved in recent months, signalling a recovery in demand.

Industry stakeholders are also pinning hopes on India’s ongoing trade negotiations. Duraisamy said the proposed bilateral trade agreement with the US, along with free trade agreements with the UK, Australia, New Zealand and the European Union, could help restore competitiveness and support the next phase of export growth.

A. Sakthivel, Chairman of the Apparel Export Promotion Council, said the sector could grow 12-14 per cent in the current fiscal, aided by trade agreements and a stronger order pipeline.

“Things are better now with a good order book for the industry,” he said.

Published on June 8, 2026