India's FY2025-26 textile export data sends conflicting signals: 2.1% rise or 2.2% decline
India's Ministry of Textiles reports FY2025-26 textile and handicraft exports rose 2.1% to about $33.5 billion, while the Global Trade Research Initiative counts textiles and garments at $35.8 billion, down 2.2%. GTRI argues the apparent growth reflects a weaker rupee, not stronger competitiveness.
Two readings of the same fiscal year
India closed FY2025-26 with textile and apparel export figures that point in opposite directions depending on the source and the currency used. India's Ministry of Textiles, cited by Fibre2Fashion and TV BRICS, reported that textile and handicraft exports rose 2.1 per cent to about $33.5 billion, up from roughly $32.9 billion a year earlier, calling the result a sign of sustained global demand for Indian textiles. The Global Trade Research Initiative (GTRI), quoted by Asia News Network, put textiles and garment exports at $35.8 billion, a 2.2 per cent decline, with the drop concentrated in March and linked to the Iran war.
The two datasets cover slightly different baskets, but the core disagreement is about direction. GTRI said exports also fell 2.1 per cent in rupee terms and argued that segment-level growth reflects a weaker rupee rather than stronger competitiveness, warning that India is losing market share in labour-intensive segments where it should be gaining ground.
Segment performance
Ready-made garments remained the largest category. The Ministry data and TV BRICS reported a 2.9 per cent rise, from ₹1,35,427.6 crore to ₹1,39,349.6 crore, or about $14.3 billion to $14.7 billion. Man-made yarn, fabrics and made-ups gained 3.6 per cent in rupee terms to ₹42,687.8 crore, around $4.5 billion. Cotton yarn, fabrics, made-ups and handloom products edged up 0.4 per cent to ₹1,02,399.7 crore, or about $10.8 billion. Handicrafts excluding handmade carpets grew fastest at 6.1 per cent, from ₹14,945.5 crore to ₹15,855.1 crore.
GTRI read the same period differently. It reported cotton textiles down 3.9 per cent, ready-made garments down 1.4 per cent and carpets down 5.3 per cent in dollar terms, with only handicrafts up 1.5 per cent. Man-made textiles rose 3.6 per cent in rupees but slipped 0.8 per cent in dollars, and garments gained 2.9 per cent in rupees while contracting 1.4 per cent in dollars. That gap, GTRI said, points to currency depreciation rather than genuine market-share gains.
Markets and trade agreements
Both accounts agree that exports expanded across more than 120 destinations between April 2025 and February 2026. The strongest gains came in the United Arab Emirates (22.3 per cent), the United Kingdom (7.8 per cent), Germany (9.9 per cent), Spain (15.5 per cent), Japan (20.6 per cent), Egypt (38.3 per cent), Nigeria (21.4 per cent), Senegal (54.4 per cent) and Sudan (205.6 per cent).
New Delhi extended the RoSCTL and RoDTEP export-support schemes beyond 31 March 2026 to preserve cost competitiveness. India also advanced its trade-agreement agenda: the India-UK CETA was signed in July 2025, the India-EFTA TEPA entered into force on 1 October 2025, the India-Oman CEPA followed in December 2025, the India-New Zealand FTA was announced on 22 December 2025, and the India-EU FTA was concluded on 27 January 2026. Fibre2Fashion said these deals should improve preferential market access, lower tariff barriers and open opportunities for apparel, handicrafts and technical textiles.
