TIRUPUR: India's readymade garments (RMG) export decline in April–May 2026 was driven mainly by weaker demand in the US, with shipments to that country down 9.5% in 2025–26 vs 2024–25, pulling overall performance down.
In dollar terms, RMG exports declined 14.2% in May 2026 compared with May 2025, and fell 13.0% in the April–May 2026 period to $2,508.7 million from $2,882.8 million a year earlier. In rupee terms, the fall was comparatively milder, with cumulative exports at Rs 23,734.5 crore, down 3.6% from Rs 24,609.8 crore, indicating currency movement partly cushioned the impact.
The Tirupur Exporters Association (TEA) attributed the main drag to the US, which accounts for nearly one-third of India's total RMG exports. Exports to the US declined 9.5% in 2025-26 versus 2024-25, weighing on overall performance amid cautious retail buying and softer consumer demand.
At the same time, TEA flagged a shifting global sourcing landscape as brands reduce reliance on China. During January–April 2026, Bangladesh remained the second-largest apparel supplier to the US and stayed ahead of China for the fourth consecutive month, largely because China's shipments to the US fell by over 50%. However, Bangladesh did not fully capitalise on the shift as its own apparel exports to the US also declined in the period.
Competing sourcing destinations, including Vietnam, Indonesia and Cambodia, captured a larger share of the "China-plus-one" opportunity, TEA said. Vietnam retained its top supplier position with exports of $5.16 billion, while Indonesia grew 2.3% and Cambodia expanded 14.1%, supported by stronger cost competitiveness, broader product offerings, efficient supply chains, shorter lead times and higher buyer confidence.
Despite the overall downturn, India saw growth in several non-US markets in 2025-26, with exports to the UK rising 4.7%, UAE 6.4%, Germany 9.3%, Spain 7.5%, Italy 11.5% and Japan 23.3%, underlining the role of market diversification.
TEA said the decline reflects weaker US demand, intensified competition and the need to improve costs, productivity, logistics, lead times and market access.
