Indian garment exporters are facing a 25–30% decline in US orders for the Christmas and New Year shopping season. High inflation and geopolitical uncertainty have made American buyers cautious. However, stronger demand from the UK and Europe is offering some relief to the Indian apparel industry.

According to the Apparel Export Promotion Council (AEPC), India’s ready-made garment exports reached $1.1 billion in September 2026, marking a 13.7% increase year-on-year. Despite this growth, exports during April–September FY2026-27 fell 6.2% to $7.2 billion, compared with $7.7 billion in the same period last year.

Exporters in Tiruppur report that US buyers are delaying or renegotiating orders. Meanwhile, longer shipping routes around the Cape of Good Hope have increased transit times, forcing manufacturers to dispatch garments earlier to meet retail deadlines.

UK and European Markets Offer Relief

Improved demand from the UK and Europe is providing fresh opportunities for Indian garment manufacturers. Positive developments in India’s trade relations with the UK and progress towards an India–EU free trade agreement have also improved business sentiment.

However, exporters continue to face challenges from rising freight costs, geopolitical risks and uncertainty over potential US tariffs. Industry leaders remain hopeful that the gradual recovery of shipping through the Suez Canal will ease logistics pressure.

With US demand under pressure, stronger European orders could help Indian garment exporters improve performance in the second half of FY2026-27.