India’s textile and apparel exports reach ₹3.25 lakh crore in 2025-26

Exports rise to a new high

India’s textile and apparel exports, including handicrafts, increased to ₹3,25,339 crore in 2025-26 from ₹2,97,004 crore in 2023-24, according to information presented to Parliament. The sector recorded a compound annual growth rate of 4.7% over the period, extending its role as a major component of the country’s merchandise trade.

Minister of State for Textiles Pabitra Margherita disclosed the figures in a written reply to a question in the Lok Sabha. He said exports to more than 100 countries grew in 2025-26 compared with 2024-25. The United States, Bangladesh, the United Arab Emirates, the United Kingdom and Germany remained the five leading destinations for Indian textile and apparel shipments.

Policy support spans production and market access

The government said it regularly monitors textile and apparel exports and works with exporters and other industry stakeholders to reduce the effects of operational challenges. Its stated priorities include improving production capacity, export competitiveness and access to overseas markets.

Programs supporting the industry include the PM Mega Integrated Textile Regions and Apparel Parks scheme, the Production Linked Incentive scheme, the National Technical Textiles Mission and Samarth, a capacity-building program for the textile sector. The policy portfolio also covers Silk Samagra-2, national programs for handloom and handicraft development, the Comprehensive Handicrafts Cluster Development Scheme, RoSCTL, RoDTEP, the Export Promotion Mission and a credit guarantee scheme for exporters.

Diversification and trade agreements

India has adopted an export-promotion and market-diversification strategy covering 40 priority countries. The minister said 16 free trade agreements are currently in force, including the India-United Kingdom Comprehensive Economic and Trade Agreement. Concluded agreements with the European Union and New Zealand are expected by the government to create further opportunities for the textile and apparel industry to increase exports and enter new markets.

The destination mix shows that the industry remains exposed to demand conditions in both mature consumer markets and regional manufacturing hubs. The United States, United Kingdom and Germany are major end markets, while Bangladesh is an important center for apparel production. Growth across more than 100 destinations indicates a broader geographical base, although the parliamentary response did not provide country-level values or product-level growth rates.

Relief measures address logistics and cotton supply

Exporters have also faced disruption linked to conflict in West Asia and the Middle East and to maritime transport difficulties in the Gulf. The government launched a relief initiative under the Export Promotion Mission on 19 March 2026 to support affected businesses. The source did not specify the financial size of the assistance or eligibility details.

To increase the domestic availability of raw material for textile and apparel production, India temporarily waived customs duty on cotton imports from 1 June to 31 October 2026. The government has also approved a Mission for Cotton Productivity for 2026-27 through 2030-31. The mission is intended to address constraints in the cotton sector, raise productivity and resolve quality problems. For mills and apparel manufacturers, the combination of import relief and domestic productivity measures targets both immediate supply needs and longer-term raw-material competitiveness.