India’s textile and apparel exports slipped in February 2026 as subdued global demand and pricing pressures hit shipments from one of the country’s key manufacturing sectors, domestic industry data showed, underscoring near‑term challenges for exporters even as policy shifts promise future gains.
According to analysis by the Confederation of Indian Textile Industry (CITI), combined textile and apparel exports registered a year‑on‑year decline in February, with textile shipments marginally lower and apparel exports contracting more sharply compared with the same month a year earlier, reflecting weakening orders from major markets. February export figures indicated a contraction of roughly 4.26 % for textiles and apparel overall, with textile exports down about 0.3 % and apparel exports shedding around 8.6 % in the month, according to preliminary quick estimates.
Sector analysts said the downturn in apparel shipments was evident against the backdrop of softer retail demand in key import markets, particularly the United States and parts of Europe, where tariff shifts and cost competition have reshaped sourcing strategies over recent quarters. Market tracker data have previously highlighted significant volatility in U.S. apparel imports from India as buyers adjusted to tariff changes, contributing to uneven monthly performance.
Also Read: India’s Textile Recycling Market Could Reach $3.5 Billion By 2030
Despite the February contraction, cumulative figures for the year to date paint a varied picture. Some export promotion bodies reported that ready‑made garment (RMG) shipments saw modest growth in the April 2025–February 2026 period, underpinned by gains in markets such as the UAE, Saudi Arabia, Italy and Japan, even as exports to the U.S. weighed on overall performance.
Industry stakeholders point to a mix of external headwinds and internal strengths shaping the current outlook. Global supply chain disruptions and geopolitical tensions have pushed up freight costs and delivery lead times, pressuring margins for exporters, while demand uncertainty in developed markets has dampened order books. At the same time, India’s textile and apparel sector has benefited from policy initiatives aimed at boosting competitiveness, including infrastructure investments and export incentives rolled out under government‑led schemes.
Looking ahead, trade policy developments could offer a structural lift to Indian exporters. New trade pacts, including the recently concluded India–European Union Free Trade Agreement, are expected to eliminate or significantly reduce tariffs on Indian apparel and textile goods into Europe once ratified, potentially narrowing competitiveness gaps with regional suppliers and opening doors for higher shipment volumes in coming years.
For now, exporters are navigating through a period of adjustment marked by monthly volatility and shifting demand patterns, even as broader strategies to diversify markets and deepen trade ties seek to bolster India’s footprint in the global textile and apparel trade.
