India’s textiles and garment exports declined 2.2% year-on-year to $35.8 billion in FY2025-26, reflecting softer global demand, pricing pressures, and continued uncertainty in key overseas markets. The drop highlights the challenges faced by exporters amid slowing retail consumption and heightened competition from regional manufacturing hubs.
Apparel, home textiles, yarn, and fabric shipments were among the segments impacted during the fiscal year, with buyers in major markets such as the United States and Europe adopting cautious sourcing strategies. Rising input costs, freight volatility, and currency movements also weighed on export competitiveness.
Industry representatives said the sector remains hopeful of a recovery supported by new trade agreements, demand normalization, and diversification into emerging markets. Exporters are also focusing on value-added products, sustainability compliance, and supply chain efficiency to strengthen growth prospects in the coming year.