India’s textile and apparel exports decline 3.75% in January, but outlook improves following the India–US interim trade agreement.
India’s textile and apparel exports declined in January on a year-on-year basis, mainly due to elevated tariffs imposed by the United States, which remained in effect until February 7 and weighed on export competitiveness.
Data released by the Confederation of Indian Textile Industry showed that textile exports fell by 3.68 per cent in January 2026 compared with the same month last year, while apparel exports declined by 3.84 per cent. Combined exports of textiles and apparel stood at USD 3,275.44 million during the month, down from USD 3,403.19 million a year earlier, reflecting an overall contraction of 3.75 per cent.
The slowdown was evident across several major product categories. Exports of cotton yarn, fabrics, made-ups and handloom products declined by 4.15 per cent to USD 995.58 million from USD 1,038.69 million in January 2025. Carpet exports recorded a sharper fall of 12.05 per cent to USD 118.99 million, while shipments of jute manufactured products, including floor coverings, dropped by 18.92 per cent. Handicrafts excluding handmade carpets also registered a decline of 2.70 per cent during the period.
In contrast, exports of man-made yarn, fabrics and made-ups showed relative resilience, posting marginal growth of 1.01 per cent to USD 430.29 million in January 2026 compared with USD 425.97 million a year earlier.
Cumulative data for the April 2025 to January 2026 period indicated that textile exports declined by 2.35 per cent, while apparel exports grew by 1.59 per cent compared with the corresponding period of the previous financial year. Despite the growth in apparel shipments, combined textile and apparel exports during the ten-month period registered a marginal decline of 0.65 per cent year-on-year.
The sector’s contribution to India’s overall exports also weakened. Textile and apparel exports accounted for 8.96 per cent of total exports in January 2026, compared with 9.37 per cent in January 2025. For the April to January period, the share declined to 8.13 per cent from 8.36 per cent a year earlier.
On the import front, cotton raw and waste imports rose by 12.33 per cent in January 2026 and surged by 72.36 per cent during the April 2025 to January 2026 period, indicating higher raw material demand or supply-side adjustments within the domestic industry.
Industry outlook is expected to improve following the reduction in US tariffs announced on February 7, which is likely to enhance India’s export competitiveness and support a recovery in textile and apparel shipments in the coming months.