India Textile Exports Fall in FY26: Apparel Shows Slight Strength Amid Global Challenges
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India’s textile and apparel exports saw a decline of 2.22% in the financial year 2025–26 (FY26), according to government data. This fall highlights the ongoing challenges faced by the sector in the global market. The slowdown comes after a period of moderate growth in previous years, showing that the industry is currently under pressure.
A deeper look at the data shows that the textile segment declined more than apparel. Textile exports dropped by around 2.86%, while apparel exports saw a smaller decline of about 1.36% during the same period. This indicates that while both segments are affected, apparel has shown slightly better stability compared to textiles.
The situation became more serious in the last month of the financial year. In March 2026, exports fell sharply by 14.02% year-on-year, which is a significant drop. This sudden decline suggests that global demand weakened further toward the end of the year, impacting shipments from India.
Industry experts believe that such a sharp fall in monthly exports could affect production planning and future orders for exporters.
One of the major reasons behind the decline is the impact of high tariffs imposed by the United States, one of India’s biggest export markets. These tariffs have made Indian products less competitive compared to other countries.
At the same time, countries like Vietnam and Bangladesh are offering strong competition with better trade agreements and lower costs. This has made it harder for Indian exporters to maintain their market share globally.
The textile category, especially yarn and fabric exports, has been under greater pressure due to weak global demand and pricing issues. Exporters are facing:
- Lower international demand
- Price competition from other countries
- Delays in orders
In contrast, the apparel segment has performed relatively better, as it is more demand-driven and adaptable to changing fashion trends.
Despite the current decline, India’s textile sector continues to remain one of the largest employment generators and a key contributor to exports. Government initiatives like PLI schemes, PM MITRA parks, and skill development programs are expected to support long-term growth.
Experts believe that with improved trade agreements and better global demand, the sector can recover in the coming years.
The decline in India’s textile and apparel exports in FY26 shows that the sector is facing short-term global challenges, especially due to tariffs and competition. However, the relatively better performance of apparel and ongoing government support provide hope for recovery. The industry will need to focus on competitiveness, innovation, and new markets to regain growth momentum.
04:35 PM, Apr 16
Source : India Textile Exports Fall in FY26: Apparel Shows Slight Strength Amid Global Challenges
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