India’s apparel industry is anticipating stronger sales during the 2026 festive season, although rising garment imports from China remain a concern for domestic manufacturers, particularly in Tiruppur.

According to a survey by the Cloth Manufacturers Association of India (CMAI), 52% of its nearly 7,000 members expect sales to increase compared with last year. Around 30% anticipate sales to remain unchanged, while just under 20% expect a decline.

CMAI former president and chief mentor Rahul Mehta said festive sales could improve as Deepavali approaches. Despite textile inflation of 5% to 7%, declining raw material prices and improved global conditions are supporting industry confidence. Strong retailer bookings at CMAI’s National Garment Fairs have also strengthened expectations.

Indian wear is expected to lead festive-season growth, followed by western casual wear. Online apparel sales are also anticipated to gain momentum.

However, rising input costs continue to pressure profitability. The CMAI survey found that approximately 54% of respondents were absorbing higher costs by reducing margins, while around 35% had increased prices. This suggests that stronger sales may not necessarily translate into higher profits for manufacturers and retailers.

Meanwhile, garment imports from China are increasing. According to the South India Hosiery Manufacturers Association, cotton ready-made garment imports from China reached ₹508.64 crore during April–August, compared with ₹283.65 crore in the corresponding period last year.

Industry representatives said traders are placing more orders with Chinese suppliers, creating additional challenges for domestic manufacturers. With distributors and consumers potentially reluctant to accept higher prices, manufacturers in Tiruppur may consider revising prices after the festive season.

The coming months will be important for India's apparel industry as businesses balance festive demand, rising import competition and continued pressure on profit margins.