Tariff Tailwinds: Tirupur Gains As US Shifts From China
India’s textile sector is experiencing an unexpected revival as shifting global trade dynamics, particularly US tariffs on China, Vietnam, and Bangladesh has derived international apparel brands to source more from India. This redirection of supply chains has positioned India as a viable alternative, especially for cotton-based and knitwear products.
India’s knitwear capital Tirupur has emerged at the forefront of this boom. Exports from the city surged to a record Rs 40,000 crore in FY25, rebounding from an 11% dip the previous year. Buying agents report a sharp rise in orders from global giants such as Walmart, Marks & Spencer, Tommy Hilfiger, Next, Warner Bros, and Primark.
Industry sources estimate that up to 15% of US-bound orders have moved from China to India in recent months, as American brands seek suppliers who can meet tight delivery schedules and offer tariff advantages.
The shift is not driven by tariffs alone. Political unrest in Bangladesh has forced the shutdown of over 50 garment units in key hubs like Chattogram. Meanwhile, rising production costs in China and war-related disruptions in Eastern Europe have pushed brands to diversify sourcing.
Despite the upswing, India faces stiff competition. China still enjoys a 15% cost advantage, largely due to lower polyester costs and industrial scale. India’s high cotton prices and underdeveloped synthetic fibre ecosystem limit its ability to compete in fast-fashion segments, where man-made fibres (MMF) dominate.
While India’s MMF exports are gradually increasing, they remain modest compared to countries like Vietnam, which has rapidly expanded its MMF infrastructure.
Experts warn that this window of opportunity is narrow. To sustain momentum, India must ramp up investments in textile machinery, fibre diversification, innovation, and ESG compliance.
Sustainability is becoming a decisive factor for global buyers. Eco-friendly production, ethical labour practices, and supply chain transparency are now prerequisites for long-term engagement.
The Union Budget 2025–26 has increased the textiles ministry’s allocation to Rs 5,272 crore, signaling policy focus. However, industry stakeholders stress the need for targeted support, such as PLI schemes, skill development, and infrastructure upgrades, to build long-term resilience.
As the world’s supply chains realign, India’s centuries-old textile legacy is being woven into a new global fabric. But turning this moment into momentum will require more than tradition, it will demand agility, ambition, and alignment with global trends.
