Indian Textile and Apparel Exports See Marginal Decrease in April ’25-February ’26

Why It Matters

The slowdown erodes India’s competitive edge in the global apparel supply chain and may pressure export‑focused manufacturers. Investors and policymakers will watch demand trends closely as they affect trade balances and employment.

Key Takeaways

• Textile exports fell 2.1% YoY, apparel grew 0.5%.
• Combined textile‑apparel exports slipped 1% year‑over‑year.
• February 2026 apparel exports down 8.6% YoY.
• Total export value reached $32.9 bn, below prior year.
• Decline signals demand softness in global apparel market.

Pulse Analysis

India’s textile and apparel sector has long been a pillar of the country’s export economy, accounting for roughly 10% of total merchandise trade. Recent data shows that while the broader textile segment remains resilient, global demand fluctuations—driven by slower consumer spending in key markets such as the United States and Europe—have begun to bite. Currency volatility, rising input costs, and lingering supply‑chain bottlenecks further compound the pressure, making the modest 2.1% decline in textile shipments a noteworthy signal of tightening margins.

The mixed performance between textiles and apparel reflects divergent market dynamics. Apparel’s 0.5% growth suggests niche successes in high‑value categories like technical wear and sustainable fashion, yet February’s 8.6% plunge underscores vulnerability to seasonal demand swings and inventory adjustments abroad. Meanwhile, the textile segment’s steady decline points to reduced orders for traditional fabrics, as buyers shift toward synthetic alternatives or localized sourcing. Analysts attribute part of the downturn to the appreciation of the rupee, which makes Indian goods relatively pricier, and to heightened competition from Bangladesh and Vietnam, which are capitalising on lower labor costs.

For stakeholders, the data signals a need to recalibrate strategies. Export‑oriented manufacturers may accelerate diversification into value‑added products, invest in automation, and pursue new markets in Africa and Latin America where growth prospects remain robust. Policymakers could consider targeted incentives for sustainable textile production and streamline customs procedures to restore competitiveness. If demand recovery in major apparel‑consuming economies materialises, India’s export trajectory could rebound, but short‑term caution remains prudent.