India’s textile and apparel sector continued its growth trajectory in FY 2025-26, with exports, including handicrafts, reaching ₹3,25,339 crore, up from ₹2,97,004 crore in FY 2023-24, registering a compound annual growth rate (CAGR) of 4.7% over the two-year period.
The figures were shared by Minister of State for Textiles Shri Pabitra Margherita in a written reply in the Lok Sabha, highlighting the sector’s resilience amid evolving global trade dynamics and the impact of various government initiatives aimed at enhancing export competitiveness.
Ready-Made Garments Continue to Lead
Among major export categories, ready-made garments remained India’s largest textile export segment, increasing from ₹1,20,305 crore in FY24 to ₹1,39,350 crore in FY26.
Other key export categories included:
- Cotton Textiles: ₹1,02,427 crore
- Man-Made Textiles: ₹46,254 crore
- Carpets: ₹12,887 crore
- Jute Products: ₹3,381 crore
- Silk Products: ₹2,262 crore
- Wool & Woollen Textiles: ₹1,566 crore
- Handloom Products: ₹1,359 crore
- Handicrafts (excluding handmade carpets): ₹15,855 crore
Overall textile and apparel exports stood at ₹3,09,484 crore, while exports including handicrafts touched ₹3,25,339 crore during FY26.
USA Remains India’s Largest Export Market
The United States continued to be India’s largest export destination for textiles and apparel, accounting for exports worth ₹85,910 crore during FY26.
Other leading markets included:
- Bangladesh: ₹24,445 crore
- United Arab Emirates: ₹20,775 crore
- United Kingdom: ₹19,652 crore
- Germany: ₹13,200 crore
- Netherlands: ₹10,461 crore
- Spain: ₹9,651 crore
- France: ₹9,074 crore
- Italy: ₹7,407 crore
- Sri Lanka: ₹6,997 crore
The Ministry noted that India’s textile and apparel exports recorded growth across more than 100 countries during FY 2025-26 compared with the previous financial year.
Government Continues Export Promotion Measures
The Government stated that it continues to monitor export performance closely while working with industry stakeholders to strengthen the sector’s global competitiveness.
Several flagship initiatives are supporting export growth, including:
- PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks Scheme
- Production Linked Incentive (PLI) Scheme for Textiles
- National Technical Textiles Mission (NTTM)
- SAMARTH – Scheme for Capacity Building in the Textile Sector
- Silk Samagra-2
- National Handloom Development Programme
- National Handicrafts Development Programme
- Comprehensive Handicrafts Cluster Development Scheme
- Rebate of State and Central Taxes and Levies (RoSCTL)
- Remission of Duties and Taxes on Exported Products (RoDTEP)
- Export Promotion Mission (EPM)
- Credit Guarantee Scheme for Exporters (CGSE)
FTAs and Market Diversification Strengthen Export Outlook
India has also adopted a market diversification strategy targeting 40 priority countries.
The Ministry highlighted that 16 Free Trade Agreements (FTAs) are currently in force, including the India–United Kingdom Comprehensive Economic and Trade Agreement (CETA). In addition, negotiations with the European Union have concluded successfully, while an FTA has also been signed with New Zealand, opening new opportunities for India’s textile exporters.
Measures to Improve Supply Chain Resilience
To address global logistics disruptions, the Government launched the Resilience & Logistics Intervention for Export Facilitation (RELIEF) initiative under the Export Promotion Mission on 19 March 2026, supporting exporters impacted by geopolitical developments in West Asia and maritime disruptions in the Gulf region.
Additional measures include the temporary customs duty exemption on cotton imports from 1 June to 31 October 2026 to improve raw material availability, along with the approval of the Mission for Cotton Productivity (2026–2031) aimed at enhancing productivity and improving cotton quality.
The Government also extended the RoSCTL Scheme until 30 September 2026, providing policy stability and continued support to apparel and made-up exporters through reimbursement of embedded taxes and levies.
With continued policy support, expanding global market access, and stronger manufacturing capabilities, India’s textile and apparel industry is expected to further strengthen its position as a leading global sourcing destination.