Tiruppur Apparel Industry Eyes $4 Bn EU Exports After India–EU FTA Talks

Tiruppur’s apparel industry is seeking to strengthen its position in the European Union market after the conclusion of negotiations for the India–EU Free Trade Agreement (FTA). Industry representatives have indicated that the cluster’s apparel exports to the EU could potentially double to around $4 billion over the coming years.

Tiruppur exported garments worth nearly $2 billion to the EU in FY2025-26, accounting for about 37% of its total exports. Germany, France, Italy, the Scandinavian countries and Poland are among the cluster’s key European markets. Its major export products include T-shirts, polo shirts, sweat jackets and sportswear.

The proposed FTA is expected to provide zero-duty access for Indian textiles and apparel, covering products that previously attracted import duties of up to 12%. The Indian government announced on January 27, 2026, that negotiations for the agreement had been concluded.

The removal of tariffs could improve the price competitiveness of Indian exporters against countries that already have preferential or duty-free access to the EU market. Industry representatives believe this could help Tiruppur increase its apparel exports to the bloc to approximately $4 billion and raise shipment volumes over the medium term.

The EU imported textiles and apparel worth $263.5 billion globally in 2024, according to the Ministry of Textiles. India’s textile and apparel exports to the EU were valued at around $7.2 billion, with ready-made garments accounting for approximately 60% of the exports.

CareEdge Ratings has estimated that the FTA could create an additional annual export opportunity of about $4–4.5 billion for India’s ready-made garment sector over the medium term. This would depend on India increasing its share of EU apparel imports from around 5% to 8–9%.

Tiruppur has an integrated textile and apparel ecosystem covering spinning, knitting, dyeing, processing, garment manufacturing, printing, embroidery and ancillary activities. The wider cluster employs around one million people and includes approximately 1,300 garment units.

The industry’s ability to convert improved tariff access into higher exports will depend on production capacity, product diversification, compliance with European regulations, sustainability standards, delivery capabilities and buyer demand. The adoption of man-made fibres and technical textiles could also support the cluster’s expansion beyond cotton knitwear.

The agreement will require the necessary approval and ratification processes before coming into force, with implementation reportedly expected around 2027. Tiruppur’s proposed $4 billion EU export target is therefore an industry projection, while actual growth will depend on the cluster’s competitiveness and its ability to secure new European orders.