India’s Textile Industry Reaches Nearly US$ 190 Billion In FY26: Rubix Report
India’s textile industry expanded to nearly US$ 190 billion in FY2026 and is targeting US$ 350 billion by 2030, supported by domestic demand, manufacturing investments and export opportunities, according to a report by Rubix Data Sciences.
The report noted that the sector remains a major employment generator, even as the central government considers a proposed Rs 40,000-crore, five-year Textile Expansion and Employment (TEEM) Scheme to support machinery upgrades, advanced technology adoption and the modernisation of traditional clusters.
Textile exports, including handicrafts, grew 10.3% year-on-year during April–August 2026, following a 2.7% decline to US$ 35.8 billion in FY2026. Imports rose 17.1% to US$ 9.6 billion during FY2026, although India remained a net exporter, with outbound shipments nearly 3.7 times the value of imports.
Readymade garments accounted for 44% of textile exports, while man-made fibre textiles contributed 15%, the report said.
“India’s textile industry has shown resilience, with exports growing 10.3% in April–August 2026 after a 2.7% decline in dollar terms in FY2026,” said Tushar Bhaskar, President of Rubix Data Sciences. He added that uncertainty in the US market, rising cotton yarn prices and freight disruptions were adding to the pressure, highlighting the need to diversify export destinations and improve cost competitiveness.
The US remained India’s largest textile export destination in FY2026, accounting for 31% of shipments, followed by the European Union at nearly 16%. Shipments to the US declined approximately 7% during the year, while exports to major European markets grew 9%, according to the report.
The report said trade dynamics shifted after the US introduced an additional 10% duty under Section 301 measures in July 2026 concerning forced-labour enforcement, while broader trade negotiations stalled. It also noted that manufacturers were working to diversify their markets. Raymond Lifestyle plans to reduce the US share of its exports from 65% to 55–60% within two years, while Kitex Garments aims to lower its exposure from nearly 100% to 30–35% over the next two to three years.
Rising input costs have also affected the domestic textile value chain. Cotton yarn prices increased by approximately 60%, from Rs 250 per kg in early 2026 to Rs 400 per kg in September. The report cited a decline in domestic cotton production to 290.91 lakh bales in the 2025–26 season, compared with 352.48 lakh bales in 2020–21. To support mills, authorities granted an exemption from the 11% cotton import duty through October 31, 2026.
Investment proposals under the seven approved PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks reached Rs 68,590 crore by August 2026, with major proposed investments from companies including Grasim Industries and Vardhman Textiles.
