India’s textile exports, including handicrafts, rose to ₹3,16,334.9 crore in the financial year 2025–26, up from ₹3,09,859.3 crore in FY 2024–25, registering a growth of 2.1% and underscoring the sector’s resilience amid evolving global trade conditions.
According to data released by the Press Information Bureau, the steady increase reflects sustained demand for Indian textile products across international markets, as well as the country’s ability to remain competitive across a wide range of product segments despite economic uncertainties and shifting sourcing patterns worldwide.
Ready-made garments (RMG) continued to dominate India’s textile export basket, maintaining their position as the largest contributor. Exports in this category increased to ₹1,39,349.6 crore in FY26 from ₹1,35,427.6 crore in FY25, marking a growth of 2.9%.
The performance highlights consistent global demand for India’s apparel offerings, supported by established manufacturing capabilities and strong buyer relationships in key markets.
Cotton-based products, including yarn, fabrics, made-ups and handloom items, showed stable but slower growth. Exports in this segment reached ₹1,02,399.7 crore in FY26, compared to ₹1,02,002.8 crore in the previous year, reflecting a marginal increase of 0.4%.
While cotton continues to be a cornerstone of India’s textile industry, the relatively modest growth suggests increasing competition and changing consumption trends in global markets.
In contrast, man-made textiles demonstrated stronger expansion, pointing to a gradual shift in demand toward synthetic and blended materials. Exports of man-made yarn, fabrics and made-ups rose by 3.6%, increasing from ₹41,196.0 crore in FY25 to ₹42,687.8 crore in FY26. Industry experts note that this growth aligns with global preferences for performance-based textiles and cost-efficient alternatives to natural fibres.
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Among value-added segments, handicrafts excluding handmade carpets emerged as the fastest-growing category. Exports climbed by 6.1%, rising from ₹14,945.5 crore to ₹15,855.1 crore. The strong performance reflects growing international demand for artisanal and handcrafted products, particularly in premium and niche markets where design, craftsmanship and cultural value play a significant role.
India’s textile export growth was not confined to a few regions but was broadly distributed across global markets. During the period from April 2025 to February 2026, export growth was recorded in more than 120 destinations compared to the same period in the previous year, indicating a wide geographical spread and diversification of demand.
Key markets showed notable increases, with exports to the United Arab Emirates rising by 22.3%, the United Kingdom by 7.8%, Germany by 9.9%, and Spain by 15.5%. In Asia, Japan recorded a growth of 20.6%, while in Africa and the Middle East, countries such as Egypt saw a 38.3% increase. Emerging markets delivered even stronger gains, with Nigeria growing by 21.4%, Senegal by 54.4%, and Sudan recording a sharp surge of 205.6%.
Analysts say the expansion across both developed and emerging economies highlights India’s ability to tap into diverse markets and reduce dependence on traditional export destinations, thereby strengthening the overall resilience of the sector.
Government support has remained a key driver behind the sector’s steady performance. Export facilitation measures, including the extension of the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme and the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme beyond March 31, 2026, have helped maintain cost competitiveness for Indian exporters in the global marketplace.
At the same time, India has made significant progress on its free trade agreement (FTA) agenda during FY26, with important implications for the textile and apparel sector. The India–EFTA Trade and Economic Partnership Agreement came into force on October 1, 2025, while the India–UK Comprehensive Economic and Trade Agreement was signed in July 2025.
Additional milestones include the India–Oman Comprehensive Economic Partnership Agreement in December 2025, the announcement of the India–New Zealand FTA on December 22, 2025, and the conclusion of the India–EU FTA on January 27, 2026.
These agreements are expected to enhance preferential market access, reduce tariff disadvantages and support deeper integration into global supply chains. Industry stakeholders believe that improved trade conditions will create new opportunities for textiles, apparel, handicrafts and technical textiles, while also encouraging investment and technology collaboration.
The continued growth in textile exports, supported by policy initiatives and expanding global partnerships, underscores the Indian government’s commitment to strengthening the sector. As the industry moves toward higher value-added production and sustainable manufacturing practices, it is expected to play an increasingly important role in driving export growth, employment generation and economic development in the years ahead.
