RMG exports down by 2.6% in Aug’ 25 over Aug’24

In August, there was a rush to export as much goods as possible before the revised US Tariff was implemented, but real impact will be known in September, said an official of a garment exporter in Tiruppur
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SIVA SARAVANAN S

Readymade Garment exports from India in August 2025 decreased by 2.6 per cent y-o-y as compared to August 2024, but increased by 9 per cent as compared to August 2023.

Cumulative RMG exports for the period April- August 2025 was $6.7 billion, a growth of 5.8 per cent over April-August 2024 and a growth of 13.3 per cent over April- August 2023, according to data from Apparel Exporters Promotion Council.

There was a marginal increase in the exports in August ($1.23 billion) when compared with July’s value at $1.38 billion.

In August, there was a rush to export as much goods as possible before the revised US Tariff was implemented, but real impact will be known in September, said an official of a garment exporter in Tiruppur.

Mithileshwar Thakur, Secretary General AEPC on RMG export performance, said, India’s RMG exports in 2025 reflects the resilience and adaptability of the Indian apparel industry amid global headwinds. While the sector continues to face challenges such as fluctuating demand in key markets. rising input costs and geo-political disruptions, Indian exporters have shown commendable agility in catering to diversified markets and value-added product segments, he added.

Import demand & trend

On import demand and trend in the US, the largest apparel market, Thakur said that in Q1 2025, imports of apparels into the US from China fell sharply to $2.39 billion, down 36.5 per cent from $3.76 billion in Q1 2024. However, India’s RMG exports to the US continued to show its resilience by registering growth of 11 per cent till June in the current fiscal.

With tariffs on Indian textiles higher than its competing countries like Bangladesh, Cambodia, and Indonesia/Malaysia, Indian exporters are offering discounts to retain US buyers and cover fixed costs, absorbing short-term losses while hoping that future negotiations ease the 50 per cent tariff pressure and prevent buyers from moving to other competing countries facing lower reciprocal tariff in the US market.

However, if the existing reciprocal tariff level persists, exporters may not be able to continue offering discounts in the long term, which could ultimately lead to the Indian apparel industry losing market share in the US, he said.

“The readymade garments industry experienced a year-on-year decline of ~2.3 per cent in exports in August 2025, following the implementation of a 25 per cent tariff on exports to the US on August 1. The decrease was driven by reduced offtake from US customers, amid uncertainty about consumer demand in the US due to potential price hikes.

“With an additional 25 per cent tariff imposed on India from August 27 onwards, exports from India to the US will further decline in the remaining seven months of the fiscal. However, the overall impact for fiscal 2026 will be cushioned due to a 5.8 per cent year-on-year growth in exports witnessed for the first five months of the fiscal, as well as limited capacities in the value-added garments available with the competing nations like Bangladesh, Vietnam, and China,” said Gautam Shahi, Director, Crisil Ratings.

“The readymade garments industry experienced a year-on-year decline of 2.3 per cent in exports in August 2025, following the implementation of a 25 per cent tariff on exports to the US on August 1. The decrease was driven by reduced offtake from US customers, amid uncertainty about consumer demand in the US due to potential price hikes. With an additional 25 per cent tariff imposed on India from August 27 onwards, exports from India to the US will further decline in the remaining seven months of the fiscal. However, the overall impact for fiscal 2026 will be cushioned due to a 5.8 per cent year-on-year growth in exports witnessed for the first five months of the fiscal, as well as limited capacities in the value-added garments available with the competing nations like Bangladesh, Vietnam, and China, ” said Gautam Shahi, Director – Crisil Ratings.

Published on September 24, 2025