NEW DELHI, India: India’s textile and garment exports declined by 2.2 per cent to $35.8 billion in the 2025–26 fiscal year, reflecting pressure across major segments amid global disruptions, according to the Global Trade Research Initiative (GTRI).
The downturn was evident in core categories, with cotton textiles dropping 3.9 per cent, ready-made garments falling 1.4 per cent, and carpets declining 5.3 per cent. Handicrafts were the only segment to post growth, rising modestly by 1.5 per cent.
Structural concerns emerge
In rupee terms, exports also slipped by 2.1 per cent, with analysts pointing to deeper structural issues behind the trend. While some segments showed growth in local currency, this did not translate into gains in dollar terms.
GTRI noted that man-made textiles recorded a 3.6 per cent increase in rupee terms but a 0.8 per cent decline in dollar terms, while garments rose 2.9 per cent in rupees despite a 1.4 per cent contraction in dollar value.
“This suggests currency depreciation, and not competitiveness,” the report said, adding that India may be losing market share in labour-intensive sectors.
Mixed performance across markets
Government data showed that handicrafts excluding carpets performed strongly, rising 6.1 per cent. Export growth was also reported across more than 120 destinations, with notable gains in markets including the UAE, UK, Germany and Japan.
Authorities have extended export support schemes such as RoSCTL and RoDTEP, while advancing multiple free trade agreements to improve market access.
Despite these efforts, the latest figures highlight ongoing challenges for India’s textile sector in a competitive global environment.
