India's textile exports, including those of handicrafts, increased by 2.1% to ₹3.16 lakh crore in the financial year ended March 2026 from ₹3.09 lakh crore a year ago, the textile ministry said on Wednesday.
The growth comes despite the sector facing steep tariffs imposed by the US, its largest export destination, for most of the financial year.
The reciprocal tariff regime began with 10% on April 2, 2025 and was rapidly escalated. Rates for India rose to 25% by August 7, 2025 and to 50% by August 28, remaining at that level until early February 2026.
1 April 2026
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Following the US Supreme Court's decision against the sweeping tariffs imposed by President Donald Trump on a number of countries, the Trump administration imposed a 10% tariff on all countries from February 24 for 150 days.
This performance reflects steady global demand for Indian textile products and the continued competitiveness of the sector across major product categories, the textile ministry stated.
Export growth was registered in more than 120 destinations during April 2025 to February 2026 over the corresponding period of the previous year, indicating broad-based geographical expansion in India's textile export basket.
A notable growth has been observed in key markets such as the UAE (22.3 pc), UK (7.8 pc), Germany (9.9 pc), Spain (15.5 pc), Japan (20.6 pc), Egypt (38.3 pc), Nigeria (21.4 pc), Senegal (54.4 pc), and Sudan (205.6 pc), etc.
Among the major segments, ready-made garments (RMG) of all textiles remained the largest contributor to textile exports, increasing from ₹1.35 lakh crore to ₹1.39 lakh crore, up 2.9% year on year.
Shipments of cotton yarn, fabrics, made-ups and handloom products remained flat, recording 0.4% growth at ₹1.02 lakh crore in FY 2025-26.
Man-made yarn, fabrics and made-ups posted a stronger growth of 3.6%, with exports increasing from ₹41,196 crore in the 2024-25 fiscal to 42,687.8 crore during 2025-26.
Among value-added segments, handicrafts, excluding handmade carpets, recorded the highest growth among major categories, rising by 6.1% from ₹14,945.5 crore in FY25 to ₹15,855.1 crore during FY26.
"The steady growth in India's textile exports, particularly in the ready-made garments segment, reflects the resilience of the industry despite a challenging global environment. The expansion across a wide range of markets indicates gradual stabilisation in demand and the adaptability of Indian exporters," Apparel Export Promotion Council (AEPC) Chairman A Sakthivel told PTI.
Going forward, Sakthivel said, upcoming Free Trade Agreements with key markets such as the UK and EU are expected to provide a significant boost by enhancing competitiveness and market access.
At the same time, continued policy support through schemes will remain crucial to address cost pressures and sustain export momentum. The sector is well-positioned for stronger growth in the coming year, he added.
The government has continued to support the sector through key export facilitation and remission measures, including the extension of the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme and the RoDTEP Scheme beyond March 2026.
India's FTA agenda also saw major progress during 2025-26, with important implications for the textile and apparel sector.
Collectively, these FTA developments are expected to improve preferential market access, reduce tariff disadvantages, support supply-chain integration, and open new opportunities for textiles, apparel, handicrafts and technical textiles, thereby aiding market diversification, export growth, investment, technology partnerships, and India's deeper integration into global value chains.
The continued growth in textile exports, coupled with sustained policy support, underlines the government's commitment to strengthening the sector, promoting employment, and advancing the goal of higher value-added exports, the textile ministry stated.
