India Textile Exports Fall 2% In FY26
India’s textile and apparel exports declined by around 2 percent year-on-year in 2025–26, underscoring continued pressure on one of the country’s key merchandise export sectors, according to government and industry data.
Exports stood at about US$ 35.80 billion in FY26, down from US$ 36.61 billion in FY25, despite textiles and apparel remaining among India’s top export categories.
Data from the Union Commerce Ministry shows that the sector has recorded a modest compound annual growth rate (CAGR) of around 1.78 percent since 2014–15, when exports were valued at US$ 29.47 billion. The performance peaked at US$ 37.54 billion in 2021–22 before entering a declining phase in subsequent years.
A compilation by the Southern India Mills Association (SIMA) indicates that exports, which were around US$ 37 billion in 2014–15, crossed US$ 40 billion in 2021–22, but fell to US$ 36.44 billion in 2024–25 and further to about US$ 35.78 billion in FY26.
Industry stakeholders attribute the stagnation to multiple structural and external factors, including exchange rate volatility, shifting global demand, and supply chain disruptions.
A senior export promotion council official noted that currency movement has significantly impacted export realisations, with the rupee weakening from around 86.60 in April 2025 to 94.83 by March 2026. “Exchange rate fluctuations have offset some of the competitiveness gains,” the official said.
Trade representatives also pointed to uneven global demand conditions. According to industry experts, while orders from the United States softened during FY26 amid tariff-related uncertainties, demand from markets such as China, Bangladesh and Sri Lanka provided partial offset.
“Overall volumes may have remained stable or slightly improved in some segments, but supply chain disruptions and market volatility created an uncertain environment for exporters,” said Siddhartha Rajagopal, executive director of the Cotton Textiles Export Promotion Council (Texprocil).
Exporters also highlighted temporary demand shifts across regions. K. Sakthivel, chairman of the Powerloom Development Export Promotion Council, said that while exports to Africa saw intermittent growth, the overall market environment remained unstable. “We are currently engaging with buyers in Japan, and clearer trends will emerge in the coming weeks,” he added.
From the apparel segment, Apparel Export Promotion Council (AEPC) chairman A. Sakthivel noted that US orders faced headwinds due to tariff-related concerns, although trade was not significantly disrupted. “Some buyers reduced volumes, some negotiated prices, and others deferred orders, but shipments continued,” he said.
He added that exporters are now looking to expand opportunities in Europe, particularly with upcoming buyer-seller meets planned in FTA partner countries.
Industry experts also point to the impact of a weaker rupee over the long term. While exports were around US$30 billion in 2014–15 when the rupee traded near 65 per US dollar, the sector’s growth has remained muted despite depreciation to nearly 95 per dollar in FY26. This, they say, indicates stagnation in real terms, especially for MSME exporters.
Some analysts estimate that in volume terms, exports may have declined by nearly one-third over the past decade due to shifting global production patterns and rising cost pressures.
According to Sanjay K Jain, head of the Indian Chamber of Commerce’s National Expert Committee on Textiles, apparel exports in May also reflected volatility, with a 12.98 per cent decline partly driven by weak West Asian demand and a high base effect from FY25.
Despite recent challenges, the industry remains cautiously optimistic, expecting a gradual recovery supported by new trade agreements, improved geopolitical conditions, and renewed demand in key markets.
