Textile and Garment Exports Decline 2.2% in 2025-26: Latest GTRI Data Reveals

India's Textile Exports Decline for Second Consecutive Fiscal Year

India's textile and garment exports fell 2.2 per cent to USD 35.8 billion in 2025-26, according to a recent report from the think tank Global Trade Research Initiative (GTRI). This decline is attributed to a contraction in shipments of key segments such as cotton. In rupee terms, the exports fell 2.1 per cent during the last fiscal year.

The report highlights a declining pattern across major segments, including cotton textiles (-3.9 per cent), ready-made garments (-1.4 per cent), and carpets (-5.3 per cent). On the other hand, handicrafts showed a slight growth of 1.5 per cent during the fiscal year.

The contrast between INR and USD growth highlights a deeper structural concern, GTRI said. According to the report, India is exporting more in value terms domestically, but earning fewer dollars globally. For instance, man-made textiles showed a 3.6 per cent rise in INR but a 0.8 per cent decline in dollar terms, and garments showed a 2.9 per cent INR increase despite a 1.4 per cent dollar contraction.

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This suggests that currency depreciation and not competitiveness is behind the apparent growth, according to GTRI. The report adds that in real terms, India is losing market share or failing to expand in key global markets, particularly in labour-intensive sectors where it should be gaining ground.

GTRI's founder, Ajay Srivastava, emphasized the need for the government to investigate bottlenecks in export growth. Despite initiatives on production-linked incentives, logistics improvements, and trade facilitation, the data shows stagnation or decline in core segments. This raises a critical policy question: why are ongoing reforms not translating into export growth?