India’s textile exports recorded a 2.1% increase in FY26, reflecting steady global demand recovery and improved competitiveness across key product segments. The sector’s outlook is expected to strengthen further as free trade agreements (FTAs) open wider market access and reduce tariff barriers in major export destinations.
Growth was supported by stronger shipments of garments, home textiles, yarn, and technical textiles, along with improved order flows from markets such as the United States, Europe, and parts of Asia. Exporters also benefited from supply chain diversification trends, with global buyers seeking alternatives to concentrated sourcing bases.
Industry leaders believe recently signed and proposed FTAs could provide a significant boost by lowering duties, simplifying trade procedures, and enhancing long-term sourcing confidence. Preferential access to markets such as the UAE, Australia, the UK, and the European Union could help Indian exporters compete more effectively against regional rivals.
Despite the positive momentum, challenges remain from volatile raw material prices, freight costs, and shifting consumer demand in advanced economies. Exporters have also called for continued policy support, including faster refunds, infrastructure upgrades, and lower financing costs.
Analysts say the modest FY26 growth may mark the beginning of a broader recovery cycle, with FTAs likely to play a central role in expanding India’s global textile market share over the coming years.
