Tiruppur Knitwear Exports Decline 4.92% in FY26 Amid Tariff-Related Uncertainty
10 June 2026: After registering a 20% increase in 2024-25, Tiruppur’s knitwear export sector witnessed a reversal in 2025-26, with exports declining nearly 5% as uncertainty linked to US tariffs affected order placements during the second half of the fiscal year.
As per Tiruppur Exporters’ Association (TEA) data, exports from the country’s largest knitwear hub fell 4.92% to Rs.42,544 crore in FY26 from Rs.44,747 crore in the previous year. Industry representatives, however, described the performance as resilient given the range of global challenges faced by exporters, including the Russia-Ukraine war, the West Asia conflict and tariff-related concerns in the United States.
“Achieving an export turnover of Rs.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 the Tiruppur-based Eastern Global Clothing.
Exporters said the first half of FY26 remained comparatively strong, while business conditions slowed during the second half as buyers adopted a cautious approach following tariff announcements in the US market.
The industry also experienced the effects of the West Asia conflict, which increased prices of key raw materials and added to cost pressures.
Despite the decline in exports, industry participants remain optimistic about the outlook for the current fiscal year. Order inflows from both the US and European markets have shown improvement in recent months, indicating a recovery in demand.
Stakeholders are also closely monitoring 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 improve competitiveness and support the next phase of export growth.
A. Sakthivel, Chairman of Apparel Export Promotion Council, said the sector could grow 12-14 per cent in the current fiscal, supported by trade agreements and a stronger order pipeline. “Things are better now with a good order book for the industry,” he said.
