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Indian Garment Exports Show Resilience Amid Global Challenges: AEPC

The Apparel Export Promotion Council (AEPC) reports that India's ready-made garment (RMG) exports grew 1.6% year-on-year during April-January 2025-26, demonstrating sector resilience. Chairman Dr A Sakthivel attributed a temporary January decline to high US tariffs, which forced exporters to offer steep discounts and led to order losses. The AEPC is advocating for stronger policy support, having met with the RBI Governor to propose a dedicated export policy and enhanced financial schemes for MSMEs. With FTAs in place with 37 countries, India aims to leverage its manufacturing strengths to expand global market share in the coming decade.

Key Points: India's RMG Exports Grow 1.6% in FY25, AEPC Seeks Policy Support

  • RMG exports grew 1.6% in Apr-Jan FY25
  • High US tariffs caused January order loss
  • AEPC met RBI for MSME export policy
  • Proposed 5% interest subsidy for exporters
  • India has FTAs with 37 countries
2 min read

Ready-made garment export figures show resilience of apparel sector: AEPC

Apparel exports show resilience with 1.6% growth in FY25. AEPC Chairman highlights tariff pressures, meets RBI for MSME export policy & finance support.

"Just to retain customers, many of RMG exporters attempted to absorb part of the cost pressures by offering discounts up to even 20 per cent. - Dr A Sakthivel, Chairman, AEPC"

New Delhi, Feb 17

The Apparel Export Promotion Council on Tuesday said the latest ready-made garment figures show resilience of Indian apparel exporters, who continue to navigate challenging international conditions.

On a cumulative basis, RMG exports during April-January 2025-26 stood at $13,129.1 million, registering a growth of 1.6 per cent over the corresponding period of April-January 2024-25 and a significant growth of 13.3 per cent compared to April-January 2023-24.

RMG exports also showed a positive growth of 7.2 per cent when compared with January 2024, indicating underlying strength and recovery momentum in the industry despite persistent global headwinds, said Dr A Sakthivel, Chairman, AEPC.

The temporary decline in January exports can largely be attributed to high US tariff pressures and ongoing global volatility, which have disrupted order flows and created uncertainty across key markets.

"Just to retain customers, many of RMG exporters attempted to absorb part of the cost pressures by offering discounts up to even 20 per cent. However, with tariff levels rising to nearly 50 per cent, the price disadvantage became too significant, resulting in a loss of orders to competing sourcing destinations," said Sakthivel.

India has now signed free trade agreements (FTAs) with 37 countries, creating unprecedented market access for the textile and apparel sector.

The coming decade presents a strategic window for India to leverage its inherent strengths - including a strong manufacturing base, skilled workforce, and integrated value chain - to accelerate export growth and expand its global market share, said Sakthivel.

He also underscored that MSMEs form the backbone of the apparel sector and require targeted policy support to enhance competitiveness and sustain growth.

AEPC Chairman on Monday met the Reserve Bank of India (RBI) Governor Sanjay Malhotra, and advocated for a dedicated export policy tailored specifically for the MSME sector.

He proposed introducing a Special Interest Package Scheme aimed at improving access to affordable finance and strengthening the growth trajectory of smaller exporters.

To address export finance constraints, Dr. Sakthivel requested an increase in the Interest Equalisation Scheme from the existing 2.75 per cent to 5 per cent for manufacturing exporters.

He also urged the RBI to consider removing the current cap of Rs 50 lakh and to enhance eligibility limits under the scheme through a graded structure linked to turnover and export performance.

- IANS

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Reader Comments

R
Rajesh Q
Good to see growth, but absorbing 20% discounts just to retain customers? That's a race to the bottom. Our exporters need to build brands, not just be cheap suppliers. The FTAs are a step in the right direction for better market access.
D
David E
Interesting read from an Indian perspective. The US tariff pressures are a global issue. The data suggests India's apparel sector is holding its ground better than some competitors. The skilled workforce point is key for long-term competitiveness.
A
Anjali F
My cousin runs a small garment unit in Tiruppur. The finance issue is real! Banks are hesitant. Increasing the Interest Equalisation Scheme to 5% and removing the Rs 50 lakh cap would be a game-changer for lakhs of small businesses. Government should act fast.
K
Karthik V
Resilience is right. Navigating 50% tariffs from the US is no joke. Shows the quality and reliability of Indian manufacturers that they're still growing. We need to diversify to other markets too. FTAs with 37 countries is a solid foundation.
S
Sarah B
As someone who sources fabrics, the integrated value chain in India is a major advantage over places like Bangladesh or Vietnam. The recovery momentum is promising. Hope the sector gets the policy support it needs.

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