India’s garment exports could increase by 25% in 2027, driven by improved demand in the United States, the United Kingdom and the European Union, according to the Indian Texpreneurs Federation (ITF).

ITF convenor Prabhu Dhamodharan said monthly apparel exports could rise from $1.2 billion to $1.5 billion as trade conditions improve and new opportunities emerge. The India-UK trade agreement and the proposed India-EU trade deal are expected to support export growth.

In the US market, easing tariff concerns could help Indian exporters recover lost market share. However, India’s apparel exports to the US fell 26.4% to $2.7 billion during January–August 2026, reflecting challenges and intense competition from other manufacturing countries.

Indian garment manufacturers are also investing in technology, automation and productivity improvements to strengthen global competitiveness. Greater trade stability and stronger buyer demand could support the sector’s recovery and boost export performance in 2027.