India’s Textile, Apparel Exports to US Slide Sharply in Jan-Feb 2026

Why It Matters

The plunge erodes India’s share of the lucrative US market, reshaping competitive dynamics among Asian suppliers and prompting Indian firms to reassess pricing and sourcing strategies. It also signals broader weakness in US consumer demand for imported apparel, affecting supply‑chain planning across the sector.

Key Takeaways

• India's US apparel exports fell 28.7% in Feb 2026.
• Jan‑Feb 2026 total value dropped to $1.34 billion.
• Vietnam gained market share, reaching $2.99 billion.
• China’s US shipments halved, down 45% in Feb.
• Weak US retailer inventories likely driving order slowdown.

Pulse Analysis

The latest US import data underscores a pronounced shift in the competitive landscape of apparel sourcing. India, once the second‑largest supplier after China, saw its shipments tumble to $1.34 billion for Jan‑Feb 2026, a 20% slide from the previous year. Vietnam’s steady 5% growth lifted its two‑month total to $2.99 billion, while China’s exports to the United States were slashed by nearly half. This divergence reflects a broader recalibration among buyers who are trimming inventory levels after a pandemic‑driven surge and seeking cost‑effective alternatives.

Several factors are converging to depress Indian exports. US retailers are confronting excess stock, prompting tighter order windows and heightened price sensitivity. At the same time, the strengthening of the Indian rupee against the dollar has squeezed margins for exporters, making Vietnam’s comparatively lower labor costs and favorable trade agreements more attractive. Additionally, ongoing supply‑chain disruptions and the lingering effects of tariff uncertainties have nudged buyers toward suppliers with more resilient logistics networks, further eroding India’s foothold.

For Indian textile manufacturers, the data signals an urgent need to pivot. Emphasizing higher‑value, differentiated products—such as technical fabrics or sustainable collections—could offset price pressure and restore buyer confidence. Strategic investments in automation and digital order management may also improve lead times and reduce cost exposure. Policymakers might consider targeted export incentives or currency hedging support to bolster competitiveness. If India can adapt quickly, it could recapture lost market share as US retailers eventually replenish inventories and resume normal ordering cycles.