Ready-Made Garments Drive India’s Textile Export Growth in FY26

India’s textile export story in FY 2025–26 reflects steady, policy-backed growth rather than a dramatic surge. The latest data from the Ministry of Textiles shows a modest but broad-based expansion, with certain segments and markets outperforming others.

At the headline level, India’s textile exports, including handicrafts, rose 2.1 per cent year-on-year to Rs 3,16,334.9 crore in FY26, up from Rs 3,09,859.3 crore in FY25. This incremental growth suggests that global demand for Indian textiles remains intact, even amid shifting trade dynamics and economic uncertainties.

A key driver behind this performance continues to be the Ready-Made Garments (RMG) segment. Exports in this category grew 2.9 per cent, increasing from Rs 1,35,427.6 crore to Rs 1,39,349.6 crore. This reinforces India’s strength in value-added apparel manufacturing, where design, branding, and finishing contribute more significantly to export value compared to raw or semi-processed goods.

Other core segments showed mixed but stable trends. Cotton yarn, fabrics, made-ups, and handloom products saw marginal growth of 0.4 per cent, inching up from Rs 1,02,002.8 crore to Rs 1,02,399.7 crore. This indicates a plateauing phase for traditional textile categories, which are often more sensitive to global price fluctuations and raw material costs. In contrast, man-made yarn, fabrics, and made-ups performed better, registering a 3.6 per cent increase to Rs 42,687.8 crore, reflecting rising global preference for synthetic and blended textiles.

Among value-added categories, handicrafts excluding handmade carpets stood out as the fastest-growing segment, expanding by 6.1 per cent from Rs 14,945.5 crore to Rs 15,855.1 crore. This suggests increasing international demand for artisanal and culturally distinctive products, where India holds a competitive edge.

Geographically, India’s textile exports are becoming more diversified. Growth was recorded in over 120 destinations between April 2025 and February 2026, indicating a wider global footprint. Several markets posted strong gains, including the United Arab Emirates, United Kingdom, Germany, Spain, Japan, Egypt, Nigeria, Senegal, and Sudan. The sharp rise in exports to emerging and non-traditional markets highlights a strategic shift away from overdependence on a few key regions.

Policy support has played a significant role in sustaining this growth. The government extended key export incentive schemes such as the Rebate of State and Central Taxes and Levies (RoSCTL) and the Remission of Duties and Taxes on Exported Products (RoDTEP) beyond March 31, 2026. These measures help offset domestic tax burdens and improve price competitiveness in global markets.

Trade agreements are also shaping the sector’s future trajectory. Progress on multiple Free Trade Agreements—including those with EFTA, the United Kingdom, Oman, New Zealand, and the European Union—is expected to improve market access and integrate India more deeply into global value chains. These agreements could reduce tariffs and open new opportunities, particularly for high-value textile and apparel exports.

Summing up the trend, the ministry noted that “the continued export growth reflects policy support, expanding global reach, and rising opportunities for value-added textile products.” The data also stated that the steady performance “highlights sustained global demand for Indian textile products and the continued competitiveness of the sector across major product categories.”

(With inputs from ANI)