India’s Textile Exports Slip in FY26, Exposing Structural Gaps in Global Competitiveness
Share Post

India’s Textile and Garment exports witnessed a decline of 2.2% in the financial year 2025–26, falling to $35.8 billion, according to the Global Trade Research Initiative (GTRI). Although the drop appears moderate, it reflects deeper structural concerns within the sector. The contraction has been visible across key segments, with cotton textiles declining by 3.9%, ready-made garments by 1.4%, and carpets by 5.3%. Only handicrafts managed to record a slight growth of 1.5%, offering a limited positive signal amid an otherwise subdued performance.

A critical insight from the report is the divergence between rupee and dollar growth. While exports have shown some increase in Indian rupee terms, they have declined in dollar value, indicating that currency depreciation rather than genuine competitiveness is driving the apparent growth. For example, man-made textiles recorded a 3.6% increase in INR but declined by 0.8% in USD terms, while garments rose by 2.9% in INR but fell by 1.4% in dollar value. This suggests that India is not expanding its share in global markets but merely benefiting from exchange rate fluctuations.

The findings raise important questions about the effectiveness of ongoing policy measures such as the Production Linked Incentive (PLI) scheme, logistics improvements, and trade facilitation efforts. Despite these initiatives, the sector is struggling to gain momentum, particularly in labour-intensive segments where India has a natural advantage. Experts believe that addressing structural inefficiencies, improving productivity, and aligning with global demand trends will be crucial for reversing the current slowdown and strengthening India’s position in the global textile market.

04:14 PM, Apr 25

Other Related Topics

Industry Update