Ready-made garment exports in September 2026 stood at $1.1 billion, registering a 13.7 per cent increase over September 2025.  | Photo Credit: PERIASAMY M

Indian ready-made garment (RMG) exporters are facing a 25-30 per cent decline in orders from the US for the Christmas and New Year shopping season, even as improved demand from the UK and Europe offers major relief to the industry.

High inflation in the US amid geopolitical uncertainties has made buyers cautious about holiday-season purchases, prompting major customers to reduce orders, according to industry sources. The weakness in the US market has weighed on India’s apparel exports in dollar terms during the first half of the current fiscal.

RMG exports in September 2026 stood at $1.1 billion, registering a 13.7 per cent increase over September 2025. However, cumulative exports during April-September 2026-27 declined 6.2 per cent to $7.2 billion from $7.7 billion in the corresponding period last fiscal, according to the Apparel Export Promotion Council (AEPC).

In rupee terms, exports during September rose 22.9 per cent year-on-year to ₹10,824.6 crore. For the first six months of the fiscal, exports increased 3.4 per cent to ₹69,300 crore from ₹67,001 crore, reflecting the divergence between dollar and rupee earnings.

“We have seen a 25-30 per cent decline in export orders for Christmas and New Year to the US,” said a large RMG exporter in Tiruppur. Orders for the year-end season in the US and Europe typically begin translating into shipments in September and October. This year, however, exporters started shipping earlier to ensure that garments reach retail shelves by November, given the longer transit times caused by diversions around the Cape of Good Hope instead of the Suez Canal, industry sources said.

Ramu Shanmugam, CEO of Clothing Connections and Chairman of the IT Wing Subcommittee of the Tiruppur Exporters’ Association (TEA), said September and October are traditionally among the most important order and shipment windows as buyers prepare for the Christmas, winter and early-spring selling seasons.

Compared with September 2025, when the US tariff shock disrupted trade, fresh orders from American buyers were being held back or renegotiated this year, he said. “Exporters lost many customers and orders or were busy doling out substantial discounts to save the factory from shutting down,” he told businessline.

Despite the weakness in the US market, improved order traction from the UK and Europe has provided some optimism to Indian exporters.

The positive growth in September exports also points to a better order environment than the uncertainty that prevailed during the corresponding period last year, although buyers remain price-sensitive and cautious about commitments, Shanmugam said.

“Last year the tariff was a major issue. This year, with the FTA in place for the UK and positive news on the EU FTA, there is good traction from customers. Overall, it is positive,” said R Rajkumar, Vice-Chairman and Managing Director of Best Corporation (P) Ltd, Tiruppur.

A Sakthivel, Chairman of AEPC, said India’s apparel exports were under pressure on two fronts.

Exports to the US were declining sharply, with the possibility of additional tariffs adding to concerns. In the EU, demand remained firm, but Europe-bound shipments were particularly exposed to logistics disruptions, with freight costs more than doubling and risks in the Red Sea increasing.

With maritime trade through the Suez Canal gradually recovering over the past month, RMG exporters are hopeful that conditions could improve in the second half of the current fiscal.

Published on October 19, 2026