New Delhi, India | April 25, 2026
India’s textile and apparel exports witnessed a decline in the financial year 2025–26, raising fresh concerns about the sector’s global competitiveness. According to a report by Global Trade Research Initiative (GTRI), the country’s total textile and garment exports fell by 2.2% to $35.8 billion, while exports in rupee terms dropped by 2.1%.
The downturn highlights ongoing challenges in one of India’s key labor-intensive industries, even as policymakers continue to push for export-led growth.
Broad-Based Decline Across Key Segments
The report noted that the slowdown was visible across most major categories:
- Cotton textiles declined by 3.9%
- Ready-made garments dropped by 1.4%
- Carpet exports fell by 5.3%
- Handicrafts provided limited relief, rising by 1.5%
The data suggests that the decline is not isolated but reflects a broader trend affecting multiple segments of the textile value chain.
Currency Gap Raises Deeper Concerns
Ajay Srivastava highlighted a critical issue: the divergence between export performance measured in rupees versus US dollars.
He noted that while exports appear stronger in domestic currency terms, earnings in dollar terms are declining, signaling underlying weaknesses in global competitiveness.
For example:
- Man-made textiles showed 3.6% growth in rupees, but 0.8% decline in dollars
- Garment exports rose 2.9% in rupees, but fell 1.4% in dollar terms
This gap suggests that currency fluctuations—particularly a weaker rupee—are masking the real performance of exports.
Losing Ground in Global Markets
According to GTRI, the data indicates that India may be:
- Losing market share globally
- Struggling to expand into new export markets
- Facing rising competition from other manufacturing economies
These concerns are particularly significant for labor-intensive sectors, where India is expected to have a competitive advantage.
Policy Questions and Industry Challenges
The report raises important policy questions for the government, especially given ongoing initiatives such as the Production Linked Incentive Scheme (PLI), logistics reforms, and efforts to improve ease of doing business.
Despite these measures, export growth remains subdued, prompting calls for:
- Identification of structural bottlenecks
- Improved trade facilitation
- Stronger global market access strategies
What Lies Ahead?
Experts suggest that addressing these challenges will be crucial for:
- Reviving export momentum
- Supporting employment in textile hubs
- Strengthening India’s position in global supply chains
The GTRI report urges immediate action to ensure that India’s textile and apparel sector can regain competitiveness and capitalize on global demand opportunities.
