CHENNAI: Tiruppur, which is largest knitwear industry hub in India, has reported annual export revenue of Rs 42,544.40 crore in FY2025-26 against Rs 44,747 crore in FY2024-25, a decline of 4.91% year-on-year.
The Indian apparel and textile industry is the third-largest exporter of ready-made garments to the United States. In April 2025, the US imposed a tariff of 66% on these products, although its implementation was subsequently suspended for 90 days. The uncertainty surrounding the tariff led to a slowdown in demand from US buyers, adversely affecting business activity across the industry.
Tiruppur exports nearly 90% of its cotton garments to the United States, while the remaining 5–10% consists of garments made from man-made fibres. The sector has also been affected by the prolonged conflict in West Asia, which has disrupted traditional shipping routes and forced exporters to use the longer route via the Cape of Good Hope for shipments to the US. In addition, rising prices of natural gas and crude oil have increased production and logistics costs, while shortages of critical chemicals and packaging materials have further strained the industry's operations.
KM Subramanian, President of Tiruppur Exporters’ Association, said, “The decline was mainly due to the impact of tariff-related issued to the US and disruptions caused by the ongoing West Asia crisis, which affected global trade and shipping movements. Despite these challenges, Tiruppur achieving exports of over Rs 42,500 crore reflects the strength and resilience of the Tiruppur garment industry.”
"Tiruppur has strong growth opportunities through effective use of FTAs, the current increase in export orders, the growing demand for man-made fibre (MMF) garments, and the industry’s continued focus on sustainability," he added.