India's Textile Export Challenges: A Deep Dive

India's textile exports fell by 2.2% to USD 35.8 billion in 2025-26 due to declining shipments in key segments such as cotton. In domestic currency terms, the exports also fell slightly. GTRI highlights the disparity between INR and USD growth, suggesting structural issues and currency depreciation as primary factors.

India's textile and garment exports experienced a 2.2% decline, reaching USD 35.8 billion in the fiscal year 2025-26, according to a report by the Global Trade Research Initiative (GTRI). The drop reflects a significant contraction in several key sectors, including cotton, which fell by 3.9%.

Even in rupee terms, the industry saw a marginal decline of 2.1%, with various segments such as ready-made garments and carpets witnessing reduced shipments. The only area of growth was in handicrafts, which rose slightly by 1.5%. This contrast between domestic and international currency valuations reveals underlying economic concerns.

Ajay Srivastava of GTRI pointed out the issue of currency depreciation overshadowing apparent growth in value terms. Despite measures like production incentives and improved logistics, India's competitiveness in global markets remains under strain. The government is urged to address policy reforms to stimulate real export growth.