Garment exports have the potential to grow 25% next year: ITF

Indian garment exports have the potential for a 25% increase next year and will better performance in the three major markets - USA, UK, and the European Union.

Prabhu Dhamodharan, convenor of the Indian Texpreneurs Federation (ITF), said in a press release that garment exporters are exploring new opportunities under the India–UK trade agreement, including setting up offices and design studios in London. Encouraging buyer responses will translate into higher orders from January. With regard to the European Union, implementation of the India–EU trade agreement next financial year will drive double-digit apparel export growth.

In the American market, with tariff concerns easing, India has an opportunity to regain the recently lost 2% market share within the coming quarter. A limited India–U.S. trade agreement, if finalised, will eventually help raise India’s traditional market share from 6% to 8%.

“With greater stability expected across these three major markets, we anticipate India’s monthly apparel exports rising from $1.2 billion to $1.5 billion in 2027 — a 25% increase. Indian exporters are simultaneously strengthening global competitiveness through technology, automation, and productivity improvements, positioning the industry for renewed export growth,” he said.

Total purchase of readymade garments by the U.S. declined 7.42% to $ 49.1 billion during January–August 2026. However, August recorded marginal growth of 0.46%, indicating early signs of market recovery. India’s apparel exports to the U.S. fell sharply by 26.4% to $ 2.7 billion, compared with 29.4% decline for China, 4.4% for Bangladesh and 0.8% for Vietnam. However, Cambodia grew 6.9% and Indonesia 2.6%, reflecting intense competition.

India’s traditional 6% U.S. market share dropped to 4% in August. Uncertainty over additional U.S. tariffs linked to Russian oil purchases had delayed orders from American buyers. Despite relatively stable volumes in other markets, India’s overall apparel exports declined around 7% during the first half of the current financial year. The recent indication that additional Russia-related tariffs will not be imposed for now has improved confidence among Indian exporters, he added.