Tirupur, India's largest knitwear export hub, is experiencing a significant upturn in international orders for the financial year 2025-26, with exporters reporting an average 18% growth compared to the same period last year.
The Tirupur Exporters' Association (TEA) confirmed that shipments to Europe, the United States and Japan have shown remarkable recovery following two subdued years post-pandemic.
A major driver is the ongoing geopolitical shift in global supply chains. European and American retailers are actively diversifying away from China and, to some extent, Bangladesh following rising labour costs and compliance scrutiny in those markets.
"We are seeing buyers who had completely moved to Bangladesh coming back to Tirupur. The quality advantage and shorter lead times are working in our favour," said the president of TEA at a recent industry conclave.
Yarn prices have remained relatively stable, with combed cotton yarn (40s count) trading around ₹285–295 per kg in Tirupur markets. Fabric processors report healthy order books extending through March 2026.
The government's Production Linked Incentive (PLI) scheme for textiles has also begun yielding results, with several large units in Tirupur having commissioned new knitting and processing lines under the scheme.
The challenge remains skilled labour availability and rising power costs, which exporters say need urgent policy attention to sustain the current growth momentum.