India's textile, garment exports down in FY26: What's the reason?
What's the story
India's textile and garment exports witnessed a 2.2% decline in the fiscal year 2025-26, according to the Global Trade Research Initiative (GTRI). The total export value stood at $35.8 billion during this period, with key segments like cotton witnessing a contraction in shipments. In rupee terms, the exports also fell by 2.1% during the last fiscal year.
Sectoral impact
Handicrafts saw slight growth during the fiscal year
The GTRI report highlights a declining trend across major sectors, including cotton textiles (-3.9%), ready-made garments (-1.4%), and carpets (-5.3%). However, there was a slight growth of 1.5% in handicrafts during the fiscal year. This broad-based decline points to underlying challenges in India's textile as well as garment export market.
Market dynamics
Structural concern in India's export market
Ajay Srivastava, the founder of GTRI, emphasized a deeper structural concern in India's export market. He said that while India is exporting more in value terms domestically, it is earning fewer dollars globally. For example, man-made textiles saw a 3.6% rise in INR but a 0.8% decline in dollar terms, and garments witnessed a similar trend with a 2.9% INR increase despite a 1.4% dollar contraction during the fiscal year 2025-26.
Growth factors
Currency depreciation v/s competitiveness
Srivastava suggested that the apparent growth in these sectors is due to currency depreciation rather than competitiveness. He said, "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." This highlights the challenges faced by India in maintaining its position in global textile and garment trade.