Revenue Growth for Tamil Nadu Garment Exporters Will Be 8–10%
Tamil Nadu’s readymade garment (RMG) exporters are projected to experience an 8–10% revenue growth, reaching approximately ₹43,000 crore (around $5.11 billion) in the current fiscal year. This positive outlook is attributed to robust order inflows and increasing demand, particularly from key export markets in the United States and Europe.
The state’s RMG sector, which accounts for over 30% of India’s RMG exports, is expected to see a 6–7% volume growth. This growth is primarily driven by the Tirupur region, renowned as India’s knitwear hub, benefiting from improved demand in the US and Europe.
Additionally, the government’s extension of the export incentive scheme, providing rebates on state and central taxes and levies for apparel, garments, and made-ups until March 31, 2026, is anticipated to enhance cost competitiveness and support exporters in securing more orders.
Operating profitability is also expected to improve by 25–30 basis points, reaching approximately 10.5%, due to better operating leverage, slight increases in realizations, and stable yarn prices.
Overall, the combination of favorable market conditions, supportive government policies, and strategic positioning in key export markets positions Tamil Nadu’s RMG exporters for a successful fiscal year.
