Global apparel trade, estimated at $500 billion, remains highly dependent on demand from the European Union (EU) and the United States of America (US), which together account for over 50% of global imports. Combined apparel imports by the EU and the US are estimated to have declined by 3-5% YoY in 7M CY2026. EU apparel imports however grew by around 6% YoY in 7M CY2026, supported by retailer restocking, while US import volumes declined by around 9% amid weak consumption and higher inflation.

Exhibit 3: Quarterly revenue and profitability trend for ICRA’s sample of apparel exporters (INR cr.)

Source: Ace Equity, Annual Reports and Published Results, ICRA Research. Note: Based on ICRA’s sample of 13 listed companies involved in apparel exports;