India’s textiles and garment exports plunged 2.2 per cent to $35.8 billion in 2025-26 due to contraction in shipments of key segments like cotton, according to the Global Trade Research Initiative (GTRI).
In rupee terms too, the exports fell 2.1 per cent during the last fiscal.
According to GTRI, the downward trend is evident in three major categories: carpets (-5.3 per cent), ready-made clothing (-1.4 per cent), and cotton textiles (-3.9 per cent). During the fiscal year, only handicrafts experienced barely 1.5 per cent growth.
The disparity between the growth of the INR and the USD reveals a deeper structural issue, GTRI pointed out. Ajay Srivastava, Founder, GTRI, feels India is making less money abroad while exporting more goods locally.
For example, clothing shows a 2.9 per cent INR growth despite a 1.4 per cent USD contraction, and man-made textiles show a 3.6 per cent increase in INR but a 0.8 per cent drop in dollar terms, he said.
He further said that in actual terms, India is losing market share or failing to develop in important international markets, especially in labour-intensive sectors where it should be gaining ground. This shows that currency depreciation rather than competitiveness is underlying the apparent rise.
“This raises a critical policy question: why are ongoing reforms not translating into export growth? Despite initiatives on production-linked incentives, logistics improvements, and trade facilitation, the data shows stagnation or decline in core segments. The government must urgently investigate bottlenecks,” Srivastava added.
Meanwhile, it is worth noting that Indian textile and clothing market is expected to reach $2.3 billion at a 10 per cent compound annual growth rate (CAGR) by 2030, as per India Brand Equity Foundation (IBEF).
With exports projected to hit $100 billion, India is one of the top five exporters in the world in a number of textile categories. Moreover, as of August 2025, the textile and clothing sector accounts for roughly 11 per cent of manufacturing GVA (Gross Value Added) and 2 per cent of India’s GDP.