Geopolitical Risks Weigh On Tirupur’s Export Performance
India’s knitwear capital, Tirupur, faced a challenging fiscal year in 2025-26 as geopolitical tensions, trade uncertainties and rising logistics costs impacted export performance. The cluster recorded exports worth Rs 42,544.40 crore during the year, compared to Rs 44,747 crore in FY2024-25, reflecting a decline of 4.91%.
The slowdown comes at a time when global apparel supply chains are grappling with shifting trade policies and heightened geopolitical risks. Industry stakeholders point to uncertainty in the US market, one of Tirupur’s key export destinations, as a major factor affecting order flows during the year.
The proposed tariff hike on apparel imports into the United States created caution among buyers, resulting in delayed purchasing decisions and reduced sourcing activity. Given Tirupur’s strong dependence on the US market, the impact was felt across the value chain, from manufacturers to exporters.
Adding to the pressure, the prolonged conflict in West Asia disrupted established shipping routes, forcing exporters to reroute cargo via the Cape of Good Hope. The longer transit times increased freight costs and extended delivery schedules, affecting the competitiveness of Indian garment exports.
Manufacturers also contended with elevated input costs driven by higher crude oil and natural gas prices. Supply constraints for key chemicals and packaging materials further added to operational challenges during the year.
Despite the difficult environment, industry leaders believe Tirupur has demonstrated remarkable resilience. The cluster continued to maintain export volumes above Rs 42,500 crore, underscoring its strong manufacturing base, diversified product capabilities and long-standing relationships with global buyers.
Looking ahead, exporters are optimistic about growth prospects. Increased utilisation of India’s free trade agreements, a gradual improvement in order bookings, rising international demand for man-made fibre (MMF) garments and continued investments in sustainable manufacturing are expected to support future expansion.
Industry observers believe Tirupur is well-positioned to benefit from global sourcing diversification trends, particularly as international brands seek reliable and compliant manufacturing partners. With sustainability, product innovation and MMF-based apparel emerging as key growth drivers, the cluster is expected to regain momentum once global trade conditions stabilise.
While FY26 proved challenging, Tirupur’s exporters remain confident that the industry’s adaptability and focus on value-added manufacturing will help strengthen its position in the global apparel market.
