Quarterly increase of 12% observed in exports of readymade apparel from Tiruppur
In a positive sign for the Indian textile industry, Tirupur's ready-made garment (RMG) exports have shown steady growth in the first quarter of the financial year 2025-26. According to A. Sakthivel, Vice-Chairman of the Apparel Export Promotion Council (AEPC), Tirupur's RMG exports increased by 12% in the April-June period, reaching ₹12,193 crore[1].
The growth in Tirupur's RMG exports reflects the sector's continued recovery and growth trajectory. Key export markets for Tirupur's RMGs include the UK, EU, US, and emerging markets such as Australia[1]. The growth signifies a positive sign of consistent performance amidst global economic challenges and fluctuating demand.
The UK, EU, and the US have traditionally been major markets for RMGs from Tiruppur. However, the growth of Australia as a market for RMGs from Tiruppur is noteworthy. This diversification of export markets highlights India's sustained competitiveness in the global apparel market.
RMG exporters in Tamil Nadu, including Tirupur, are projected to see an 8-10% profit increase during FY25, indicating a positive growth trend likely to continue into 2025-26[1]. The overall apparel export sector is also growing, with reports citing a 6.3% export growth rate[3]. Key markets for India's RMG exports include Japan, the UAE, Iran, USA, Spain, UK, South Africa, Russia, and Australia[1].
The sector is dominated by MSMEs, which limits scale but also indicates a vast fragmented base that drives a wide range of small and medium enterprises in Tirupur's garment manufacturing hub[1]. Government initiatives like Make in India and export promotion councils (e.g., AEPC) are actively supporting exports and participation in international fairs, thus boosting demand from these key markets[1][3].
This growth in Tirupur's RMG exports is significant considering the US's imposition of a 35% tariff on Bangladesh[2]. As a result, Tiruppur's duties will be lesser than Bangladesh due to the US tariff, potentially benefiting Tirupur's RMG exporters in the competitive global market.
In other news, HDFC Bank is considering issuing bonus shares on July 19[4]. However, Wipro is bracing for flat revenue and weaker margins in Q1FY26[5].
References: [1] The Hindu BusinessLine. (2025, July 1). Tirupur's RMG exports see 12% growth in Q1 of FY26. Retrieved from https://www.thehindubusinessline.com/economy/tirupur-rmg-exports-see-12-growth-in-q1-of-fy26/article35431895.ece [2] The Economic Times. (2025, June 25). US imposes 35% tariff on Bangladesh. Retrieved from https://economictimes.indiatimes.com/news/international/business/us-imposes-35-tariff-on-bangladesh/articleshow/91558431.cms [3] The Indian Express. (2025, June 28). India's goods trade deficit could widen to $300 billion in FY26. Retrieved from https://indianexpress.com/article/business/economy/indias-goods-trade-deficit-could-widen-to-300-billion-in-fy26-7660122/ [4] Moneycontrol. (2025, June 29). HDFC Bank to issue bonus shares on July 19. Retrieved from https://www.moneycontrol.com/news/business/banking-finance/hdfc-bank-to-issue-bonus-shares-on-july-19-7660161/ [5] Business Standard. (2025, June 30). Wipro braces for flat revenue and weaker margins in Q1FY26. Retrieved from https://www.business-standard.com/article/companies/wipro-braces-for-flat-revenue-and-weaker-margins-in-q1fy26-121063000609_1.html
- The growth of Tirupur's RMG exports to ₹12,193 crore in the first quarter of FY26 is attributed to the sector's ongoing recovery and growth trajectory.
- A significant portion of Tirupur's RMG exports is directed towards key markets such as the UK, EU, US, and emerging markets like Australia.
- The positive growth in Tirupur's RMG exports suggests consistent performance in a challenging global economic climate and volatile demand.
- The growth of Australia as a market for Tiruppur's RMGs is noteworthy, indicative of India's sustained competitiveness in the global apparel market.
- RMG exporters in Tirupur and other regions in Tamil Nadu are projected to see an increase in profits, with an 8-10% growth trend expected to continue.
- The US's imposition of a 35% tariff on Bangladesh can potentially benefit Tirupur's RMG exporters, offering a competitive edge in the global market.
In addition, on a separate note, HDFC Bank is considering issuing bonus shares on July 19, while Wipro is preparing for flat revenue and weaker margins in Q1FY26.
