India’s textiles and garment exports declined by 2.2% to $35.8 billion in the financial year 2025–26, according to a report released by the Global Trade Research Initiative (GTRI). The think tank attributed the fall primarily to reduced shipments in key export categories such as cotton textiles, garments, and carpets.
The data showed that the decline was broad-based across major segments of the sector. Cotton textiles dropped by 3.9%, ready-made garments fell by 1.4%, and carpet exports saw a sharper contraction of 5.3%. Among the major categories, only handicrafts recorded marginal growth of about 1.5% during the fiscal year, indicating limited positive momentum in the overall sector.
GTRI noted that while export values in Indian rupee terms showed slight increases in some categories, dollar-denominated earnings reflected a decline. The think tank explained that this divergence highlights a structural issue, where currency depreciation is influencing value trends rather than genuine improvements in global competitiveness.
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Ajay Srivastava, founder of GTRI, said that sectors like man-made textiles and garments showed growth in rupee terms but still recorded declines in dollar earnings. For example, man-made textiles rose by 3.6% in rupee terms but fell by 0.8% in dollar value, while garments increased 2.9% in rupee terms despite a 1.4% decline in dollar terms.
He further stated that this pattern suggests India may not be gaining market share in key global markets, particularly in labour-intensive industries where stronger performance is expected. According to him, the data raises concerns about whether current reforms are effectively translating into export growth despite policy measures such as production-linked incentives and logistics improvements.
The report also called for urgent policy attention, stating that persistent stagnation or decline in core export segments needs deeper examination. GTRI emphasized that addressing structural bottlenecks will be essential for improving India’s long-term export competitiveness and sustaining growth in the textiles and garment sector.
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