Textiles and garment exports decline 2.2% to $35.8 billion in 2025-26

India’s textiles and garment exports fell 2.2 per cent to $35.8 billion in 2025-26, led by fall in March due to the Iran War, the Global Trade Research Initiative (GTRI) said.

The declining pattern is visible across major segments — cotton textiles (- 3.9 per cent), ready-made garments (- 1.4 per cent), and carpets (- 5.3 per cent). Only handicrafts grew slightly by 1.5 per cent during the fiscal.

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In rupee terms too, the exports fell 2.1 per cent during the last fiscal. The contrast between Rupee and dollar growth highlights a deeper structural concern, GTRI said.

Man-made textiles show a 3.6 per cent rise in Rupee terms but a 0.8 per cent decline in dollar terms, and garments show a 2.9 per cent INR increase despite a 1.4 per cent dollar contraction.

This suggests currency depreciation, and not competitiveness. is behind the apparent growth, he said adding in real terms, India is losing market share or failing to expand in key global markets, particularly in labour-intensive sectors where it should be gaining ground.

As per the government data, handicrafts excluding handmade carpets recorded the highest growth among major categories, rising by 6.1% from Rs 14,945.5 crore to Rs 15,855.1 crore.

The export expansion was geographically broad-based, with growth reported in more than 120 destinations during April 2025 to February 2026. A notable growth has been observed in key markets such as UAE (22.3%), UK (7.8%), Germany (9.9%), Spain (15.5%), Japan (20.6%), Egypt (38.3%), Nigeria (21.4%), Senegal (54.4%), and Sudan (205.6%).

The government extended export promotion measures such as the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme and the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme beyond March 31, 2026, providing continued cost competitiveness to exporters.

India’s FTA agenda also saw major progress during 2025–26, with important implications for the textile and apparel sector. The India–EFTA TEPA entered into force on 1 October 2025; the India–UK CETA was signed in July 2025; the India–Oman CEPA in December 2025; the India–New Zealand FTA was announced on 22 December 2025; and the India–EU FTA was concluded on 27 January 2026.