In a silver lining to the ailing industry, Ready-Made Garments (RMG) exports registered a 3 per cent year-on-year (y-o-y) increase in December 2025 at $1.5 billion compared with December 2024. RMG exports in December 2025 also rose 16 per cent compared with December 2023.
The US tariffs on the textile sector took effect on August 27. Consequently, exports declined y-o-y in September and October. However, exports rebounded strongly in November and posted marginal growth in December, according to Apparel Export Promotion Council (AEPC) data.
The growth has been driven by the industry diversifying into other markets, especially West Asia , and aided by favourable currency movements, sources said.
RMG exports for the April-December 2025 period stood at $11.58 billion, a 2.4 per cent increase over April- December 2024, and a 14.2 per cent growth compared with April-December 2023, the data shows.
Commenting on the exports data, A Sakthivel, Chairman, AEPC, said the December export growth reflects both resilience and adaptability of the industry in a challenging global environment.
“While demand in key international markets such as the US has been uneven due to inflationary pressures and geopolitical uncertainties, Indian apparel exporters have held their ground through product diversification, improved compliance and a stronger focus on value-added segments,” he said.
On the outlook for exports in 2026, “We are cautiously optimistic. With global demand expected to improve gradually, India is well-positioned to gain market share due to its reliable supply chain, compliance standards, and growing design capabilities. With sustained policy support and continued industry efforts, we are confident that the apparel sector will return to a stronger growth trajectory in the coming time.”
Thirukkumaran Natarajan, Chairman of Tiruppur-based Esstee Exports India Pvt Ltd and Secretary of the Tiruppur Exporters Association, said exporters are offering discounts ranging from 15 per cent to 20 per cent to retain customers in the US market. While this has helped the industry, other markets have also contributed to growth, he said.
With India-EU FTA likely to be concluded within a fortnight and UK FTA about to be implemented shortly, the Indian apparel industry will have a tremendous edge in market access to these developed economies, holding a substantial share in the Indian apparel export basket, which in turn will hugely boost our export prospects, he said.
04:48 PM, Jan 19