India’s T&C Exports Rebound With 6.1% Growth In FY25

After weathering two challenging years of declining demand and global uncertainty, India’s textile and clothing sector has begun to script its comeback story.

After facing two consecutive years of decline, India’s textile and clothing (T&C) exports have shown a significant rebound in FY 2024–25, rising by 6.10% to reach US$ 36960.47 million. This recovery comes despite the challenging global environment marked by market volatility, geopolitical conflicts and evolving trade policies. The sector’s contribution to India’s overall exports has remained stable at 8%, underlining its consistent role in the nation’s export basket.

The United States continues to be the top destination for India’s T&C exports, followed by Bangladesh,  United Kingdom and Germany. Among the key export segments, woven and knitted apparel have led the growth trajectory, each showing encouraging performance trends.

Woven Apparel: A Resilient Export Segment
Woven apparel remains India’s largest exported textile category, registering a growth of 6.39% in FY 2024–25. Exports in this segment totaled US$ 8303.28 million, reversing the 8.12% decline observed in the previous fiscal year. Woven apparel now accounts for approximately 22% of India’s total T&C exports.

Women’s or girls’ suits and ensembles continue to dominate this category, with exports reaching US$ 3,103.89 million, a robust growth of 9.37% over the previous year. Interestingly, the second most exported item has shifted from men’s shirts to men’s suits and ensembles. The export of men’s suits and ensembles rose significantly by 12.26% to US$ 1122.22 million.

The United States remained the top export market for India’s woven apparel, with exports growing by 6.82% to US$ 2674.54 million in FY 2024–25. Notably, among the top five markets, the Netherlands recorded the highest growth in demand, with exports surging by 19.01% to US$ 391.76 million.

Knitted Apparel: Strong Double-Digit Growth
Knitted apparel exports from India also posted solid performance, registering a notable increase of 14.29% to US$ 7703.73 million in FY 2024–25. This segment now comprises approximately 21% of India’s total T&C exports.

The United States continued to be the largest market, importing US$ 2658.88 million worth of knitted apparel, a growth of 20.03% over the previous fiscal year. Knitted T-shirts led the segment, with exports reaching US$ 2375.30 million, up 12.59%. Babies’ garments followed as the second-largest product, with exports amounting to US$ 1,081.38 million and a year-on-year growth of 16.54%.

Cotton Exports: A Sector Under Strain
In contrast to the growth seen in apparel exports, India’s cotton exports declined further by 6.59% to US$ 6,333.82 million in FY 2024–25. The segment still holds a 17% share of the total T&C export basket. Bangladesh emerged as the top importer of Indian cotton, accounting for 44% share with imports worth US$ 2803.21 million, an 18.34% increase from the previous year.

However, the sharp decline in exports to China significantly impacted the cotton segment. Exports to China plummeted by 75.50% to US$ 235.74 million, largely due to reduced demand. Similarly, exports to Vietnam registered a marginal decline of 1.41%.

Within the cotton category, cotton yarn continued to be the most exported product, although exports fell by 6.01% to US$ 3553.19 million. Cotton woven fabric, on the other hand, witnessed modest growth of 4.63%, reaching US$ 1959.01 million in FY 2024–25.

Man-Made Filament (MMF): Flat Growth with Regional Shifts
MMF exports saw marginal growth of 0.5%, totaling US$ 1769.72 million and contributing 5% to India’s total T&C exports. Turkey remained the largest market, although exports to the country dropped sharply by 33% to US$ 165.03 million. Meanwhile, Brazil emerged as a key growth market for MMF exports, with shipments value soaring by 84.63% to US$ 144.41 million.

Man-Made Staple Fibre (MMSF): A Slight Dip but New Market Dynamics
MMSF exports dipped slightly by 1.58% to US$ 1,616.31 million, accounting for 4% of the total T&C exports. The USA overtook Turkey as the largest market in this category, with imports rising 10.6% to US$ 177.04 million. Exports to Turkey declined by 22.06% to US$ 158.64 million. Additionally, exports to Bangladesh increased by 8.96% to US$ 155.39 million, indicating a shift in demand trends.

Carpets: A Strong Recovery
Carpet exports surged by 11.84% to US$ 2097.71 million in FY 2024–25, making it the fifth-largest export commodity after woven apparel, knitted apparel, cotton and other made-up textiles. Carpets now contribute 6% to total T&C exports. The United States continues to dominate this segment, accounting for 59% of India’s total carpet exports. Shipments to the US increased by 13.01%, totaling US$ 1229.51 million.

Silk: A Surprising Upswing
India’s silk exports also posted an unexpected jump, growing by 31.17% to US$ 162.73 million. The UAE emerged as the largest market for silk exports, with imports from India reaching US$ 76.60 million, a steep rise of 88.04% from the previous year.

Country-wise Trends: USA Leads While China Declines Sharply
The USA reinforced its position as India’s largest T&C export market. After a 4.28% drop in FY 2023–24, exports to the US rebounded with an 11.09% growth to US$ 10663.66 million in FY 2024–25. This accounts for 29% of India’s total T&C exports. Apparel led the export portfolio to the US, totaling US$ 5333.42 million, a 13.02% increase. Carpet exports also saw a strong 13.01% rise to US$ 1,229.51 million.

China, once the sixth-largest export destination, slipped to twelfth position in FY 2024–25, primarily due to reduced demand for Indian cotton. Exports to China dropped by nearly 55% to US$ 550.29 million. Cotton exports alone fell by a staggering 74.50% to US$ 235.74 million, down from US$ 924.42 million the previous year.

Bangladesh retained its position as India’s second-largest T&C export market, with exports rising by 16.86% to US$ 3,289.73 million. The growth was largely driven by cotton exports, which increased by 18.34% to US$ 2,803.21 million.

The UAE held steady as the third-largest market, with exports totaling US$ 2,138.67 million, a growth of 7.36%. The UK followed in fourth position, recording US$ 2,010 million in exports, reflecting a 7.04% year-on-year growth.

India’s textile and clothing export sector has demonstrated remarkable resilience in FY 2024–25, withstanding multiple global headwinds. While challenges persist in segments like cotton and certain man-made fibres, robust demand for apparel, especially from key markets like the USA, Bangladesh, and the UAE has helped buoy overall export performance. With strategic policy support and market diversification, India’s T&C sector appears well-positioned for further growth in the coming years.