Indian clothing exporters are reporting that orders from the US for the Christmas and New Year holiday selling period have dropped by 25-30%, although stronger buying from the UK and Europe is giving the sector considerable relief.
Industry sources say persistent US inflation, combined with geopolitical uncertainty, has left retailers wary of festive-season spending, leading several large customers to trim their purchasing.
The soft American market has dragged on India’s apparel shipments, measured in dollars, over the first half of the current fiscal year.
According to the Apparel Export Promotion Council (AEPC), garment exports in September 2026 totalled $1.1 billion, up 13.7% over September 2025.
Cumulative shipments for April-September 2026-27 nonetheless fell 6.2% to $7.2 billion, from $7.7 billion in the same period of the previous fiscal.
“Export orders to the US for Christmas and New Year have fallen by 25-30%,” said a leading apparel exporter based in Tiruppur.
Year-end orders from American and European buyers usually begin converting into shipments in September and October.
This season, industry sources said, exporters dispatched goods sooner to get garments onto shop shelves by November, since vessels rerouted around the Cape of Good Hope rather than through the Suez Canal take longer to arrive.
Ramu Shanmugam, Chief Executive of Clothing Connections said September and October have traditionally ranked among the busiest order and shipping windows, as buyers plan for Christmas, winter and early spring trading.
He noted that, unlike September 2025, when the US tariff shock upset trade, American buyers this year were holding back fresh orders or reopening terms.
Many exporters either lost customers and orders or were forced into heavy discounting just to keep their factories open.
Europe provides a measure of comfort
Even with the US downturn, firmer order flow from the UK and Europe has lifted spirits among Indian suppliers.
Shanmugam said September’s growth points to a healthier order climate than the uncertainty seen a year earlier, though buyers remain price-conscious and reluctant to commit.
R Rajkumar, vice-chairman and managing director of Best Corporation (P) Ltd in Tiruppur, said tariffs dominated last year’s concerns.
With a free trade agreement (FTA) now operating with the UK and encouraging signals on an EU deal, he said, customers are showing healthy interest, and the overall outlook is positive.
A Sakthivel, chairman of AEPC, said Indian apparel exports face pressure on two fronts. Shipments to the US are falling steeply, with the threat of further tariffs adding to unease.
“In the EU, demand holds firm, but Europe-bound cargoes are especially vulnerable to logistics disruption, as freight rates have more than doubled and Red Sea risks have grown,” Hindu Business Line reported.
Exporters are hopeful of improvement in the second half of the fiscal year, as shipping through the Suez Canal has been recovering steadily over the past month.
Image courtesy: Advance Denim
