Indian Garment Exports Set For Big Jump Next Year

Indian garment exports could grow by twenty-five percent next year, driven by better results in three key global markets.

Market Plans

Prabhu Dhamodharan, convenor of the Indian Texpreneurs Federation, said exporters are looking at new chances under the India-UK trade agreement. This includes setting up offices and design studios in London. Positive replies from buyers should bring in higher orders starting in January. For the European Union, a new trade agreement starting next financial year will push double-digit growth in clothing exports.

US Market Challenges

In America, tariff worries are easing, giving India a chance to win back lost market share in the coming quarter. A limited India-US trade agreement could raise India's market share from six to eight percent. Monthly apparel exports from India are expected to rise from one point two billion dollars to one point five billion dollars in 2027. U.S. ready-made garment purchases fell by seven point four-two percent to forty-nine point one billion dollars between January and August. India's exports to the U.S. dropped twenty-six point four percent to two point seven billion dollars. China saw a twenty-nine point four percent drop, while Bangladesh fell four point four percent and Vietnam dropped zero point eight percent. Cambodia grew six point nine percent and Indonesia grew two point six percent. India's traditional six percent U.S. market share dropped to four percent in August. Extra tariff fears over Russian oil purchases had delayed buyer orders. Since these extra tariffs will not happen for now, exporter confidence has grown.

Context

Trade agreements between nations often remove taxes and rules that slow down buying and selling across borders. When tariff worries fade, businesses feel safer to place big orders well in advance.