India’s Textile Exports Decline in FY26 Amid Global Demand Slowdown and Trade Pressures

The performance of India’s textile exports has witnessed a downturn in FY26, as the sector faced declining global demand and increasing trade-related challenges. Both textiles and apparel segments recorded contraction, reflecting a broader slowdown in international markets throughout the fiscal year. The reduction in India’s textile exports has been driven by weaker overseas demand, reduced ordering activity, and heightened competition from other exporting nations. These factors have collectively impacted export volumes, putting pressure on manufacturers and exporters across the value chain. The situation exacerbated in March 2026, when exports fell sharply on a year-on-year basis. This drop highlighted ongoing structural challenges, including tariff-related pressures, shifting global sourcing trends, and subdued demand from key international markets. Exporters in the sector have also been affected by pricing pressures and rising competition, which have made it difficult to maintain previous growth levels. As a result, overall shipment performance remained weak across major textile and apparel categories.

Despite these challenges, India’s textile exports continue to hold strategic importance in global trade. Industry stakeholders are now focusing on diversification into new markets, value-added products, and innovation-driven manufacturing to regain competitiveness. Policy support, trade facilitation measures, and improved global demand conditions are expected to play a crucial role in the recovery of the sector in the coming months