📉 India’s Textile & Apparel Exports Decline in January 2026

Kokila Chokkanathan
India’s textile and apparel exports — a key segment of the nation’s merchandise exports — registered a decline of 3.75 % in january 2026 compared with the same month last year. Combined shipments of textiles and apparel stood at US $3,275.44 million in january 2026, down from US $3,403.19 million in january 2025.

🔎 Breakdown of Sector Performance

  • Textile exports were down 3.68 % year‑on‑year.
  • Apparel exports dropped 3.84 % compared with january 2025.
  • Key product segments such as cotton yarn, fabrics, made‑ups, and handloom items also experienced a slowdown.
  • Some categories like man‑made yarn, fabrics and made‑ups showed minor growth of about 1.01 %.
Segments with notable declines included:

  • Carpet exports — down around 12.05 %
  • Jute manufactured products — dropped approximately 18.92 %
  • Handicrafts (excluding carpets) — decreased by 2.70 %
📊 Longer‑Term Trends & Cumulative Performance

Although january figures showed contraction, the broader trade data show mixed performance over the longer period:

  • From April 2025 to January 2026, textile exports registered a -2.35 % decline, while apparel exports saw a 1.59 % growth compared with the same period last year.
  • The combined exports for the April–January period still registered a marginal decline of -0.65 %.
  • The sector’s share of total indian exports also dipped slightly — from 9.37 % in january 2025 to 8.96 % in january 2026.
🇺🇸 Impact of High US Tariffs

One major headwind for the sector in early 2026 has been high import tariffs imposed by the United States, which is traditionally one of India’s largest export markets for textiles and apparel. These tariffs, which remained in place through early february, hurt the competitiveness of indian goods in global markets and contributed to the reduced shipment volumes in January.

Industry stakeholders have pointed out that higher duties make indian textile and apparel products less price‑competitive relative to exporters from countries like bangladesh or Vietnam, particularly in tariff‑sensitive markets like the US.

🌟 Outlook Brightens After US Tariff Reduction

Despite the near‑term decline, the export outlook is turning more positive following recent developments in trade policy:

📉 US Tariff Reduction Effective february 7

A reduction in US textile and apparel tariffs that came into effect on February 7, 2026 is expected to help restore competitiveness for indian exporters. This diplomatic and trade move is seen as a boost to future export volumes, especially in markets where indian products were previously losing share due to tariff disadvantages.

Industry analysts and export bodies suggest that this tariff adjustment could lead to a recovery in shipments in the coming months as indian exporters regain pricing parity and orders begin to return.

🧵 Sector Views: Resilience and Long‑Term Potential

Key voices in the textile industry have highlighted underlying strengths for India’s apparel segment:

  • The ready‑made garment (RMG) sector has shown resilience, with some export figures indicating year‑on‑year growth when compared with earlier periods.
  • India’s extensive manufacturing base, growing global trade network, and future trade agreements are seen as positive structural factors for export expansion.
Analysts also note that while global volatility and tariff pressures have dampened exports recently, the long‑term outlook remains constructive, particularly if tariff barriers continue to ease and new free trade deals take effect.

📌 Summary

Indicator

January 2026

January 2025

Textile exports

↓ 3.68 %

—

Apparel exports

↓ 3.84 %

—

Total textiles & apparel exports

↓ 3.75 % (US $3.28 bn)

US $3.40 bn

Key takeaway: Exports saw a moderate decline in january mainly due to tariff‑related pressures, but recent US tariff reductions are expected to improve competitiveness and boost shipments in the months ahead.

 

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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