Tiruppur Knitwear Exports Put Market Diversification in Focus

08 October 2026: Tiruppur knitwear exports declined nearly 5% in FY2025-26, strengthening the case for a wider customer base for the Tamil Nadu garment hub. Figures reported on June 10, 2026, linked the slowdown partly to US tariff uncertainty, while subsequent trade-agreement discussions focused on how exporters could qualify for preferential access.

What happened to Tiruppur knitwear exports?

Screen Print India’s FY26 knitwear export report, citing Tiruppur Exporters’ Association data, put exports at approximately INR 42,544 crore, compared with INR 44,747 crore in FY2024-25. That represents a decline of about 4.92%.

The report described stronger business in the first half of FY26, followed by more cautious order placements after US tariff announcements. It also recorded other pressures, including conflicts and higher input costs. 

These figures provide a reason to examine market concentration, rather than evidence that exporters should abandon established American customers. A wider customer base could reduce exposure to a disruption in any one destination.

Trade agreements require more than a new buyer

The UK and European Union offer a useful starting point for understanding the distinction between a trade agreement and a commercially usable tariff preference.

The UK government published the UK-India trade agreement text on July 24, 2025. Its rules of origin specify the processing requirements and supporting documents that products need to qualify for agreed preferences. Exporters should check the applicable tariff treatment and implementation position before promising a buyer lower duties.

That practical issue also featured in the AEPC Tiruppur FTA seminar reported in August 2026. Product classification, sourcing decisions and origin records belong in order planning, not merely in paperwork prepared before shipment.

For Europe, the European Commission’s agreement record states that negotiations concluded on January 27, 2026. It also records the Commission’s September 11 proposal to the Council for signature and conclusion. 

Product diversification needs buyer-specific preparation

A broader product mix needs a separate commercial assessment. An exporter considering man-made-fibre garments should establish the buyer’s specifications, production requirements and expected margins before committing investment. 

Sustainability-related preparation also predates the latest tariff discussion. Screen Print India reported TEA’s Textile Exchange membership in September 2023, describing an effort to share information about sustainable manufacturing and international buyer requirements, including with smaller exporters.

The practical response is to assess new destinations alongside product capability, documentation and costs. Diversification can spread commercial risk, but neither a trade agreement nor a new fabric category guarantees profitable business. Tiruppur’s next orders will depend on whether individual manufacturers can meet the requirements of the buyers they approach.