Indian Textile Sector Grows 2.1% in FY 2025–26, Strengthening Global Export Position
India’s textile industry recorded a growth of 2.1% during Financial Year 2025–26, reflecting the sector’s resilience and sustained competitiveness amid changing global trade conditions. According to the Ministry of Textiles, the country’s total textile exports, including handicrafts, increased from more than ₹3.09 lakh crore in FY 2024–25 to over ₹3.16 lakh crore in FY 2025–26, highlighting steady international demand for Indian textile products.
The latest performance demonstrates the continued importance of the textile and apparel sector as one of India’s largest employment generators and a major contributor to manufacturing exports. Despite global economic uncertainties and evolving trade patterns, Indian textile manufacturers have maintained strong market presence across key export destinations.
Among the various segments, ready-made garments (RMG) of all textiles remained the largest contributor to export earnings during the financial year. The segment continued to benefit from strong demand in international markets supported by India’s diversified manufacturing base and expanding production capabilities.
In addition to garments, cotton yarn, fabrics, made-ups, and handloom products also delivered stable export performance. These segments continue to play a vital role in sustaining India’s textile export ecosystem and supporting millions of workers across spinning, weaving, processing, and garment manufacturing industries.
Industry observers note that India’s integrated textile value chain remains one of its biggest strengths. From fibre and yarn production to fabric processing and finished apparel manufacturing, the country maintains a broad industrial base that enables flexibility and competitive pricing in global markets.
Government policy support has remained a key factor behind the sector’s stability and growth. The Ministry of Textiles highlighted continued export facilitation measures designed to improve competitiveness and reduce cost pressures for exporters.
Among the important initiatives, 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 31 March 2026 has provided confidence to exporters and manufacturers. These schemes are aimed at reducing embedded taxes and improving the international competitiveness of Indian textile products.
India’s Free Trade Agreement (FTA) strategy also recorded major progress during FY 2025–26, creating fresh opportunities for the textile and apparel industry. The government’s continued engagement with international trade partners is expected to strengthen preferential market access for Indian exporters and reduce tariff disadvantages in strategic global markets.
Industry stakeholders believe that expanded FTA coverage could support stronger supply-chain integration and encourage investment across textile manufacturing clusters. Improved trade access is also expected to help Indian exporters compete more effectively with other leading textile-producing nations.
The growth momentum comes at a time when global buyers are increasingly seeking reliable sourcing destinations that can deliver quality, scale, sustainability, and diversified supply chains. India’s strong manufacturing ecosystem, availability of raw materials, skilled workforce, and supportive policy environment continue to enhance its attractiveness as a sourcing destination.
Textiles remain one of India’s most strategic sectors, supporting employment generation across urban and rural regions while contributing significantly to foreign exchange earnings. The sector also plays an important role in promoting value-added manufacturing and strengthening the country’s industrial development goals.
With steady export growth, continued policy support, and expanding trade opportunities through FTAs, India’s textile sector is expected to maintain positive momentum in the coming years. The latest FY 2025–26 performance reinforces confidence in the industry’s ability to expand exports, generate employment, and strengthen India’s position as a leading global textile manufacturing hub.
