India’s textile sector reported an increase in exports during FY 2025–26, with total outbound shipments, including handicrafts, rising from ₹3,09,859.3 crore in FY 2024–25 to ₹3,16,334.9 crore. This represents a growth of 2.1% over the previous fiscal year.
Ready-Made Garments (RMG) of all textiles continued to account for the largest share in exports. The segment grew from ₹1,35,427.6 crore in FY 2024–25 to ₹1,39,349.6 crore in FY 2025–26, registering an increase of 2.9%.
Exports of cotton yarn, fabrics, made-ups and handloom products remained stable, reaching ₹1,02,399.7 crore in FY 2025–26 compared to ₹1,02,002.8 crore in FY 2024–25, marking a growth of 0.4%. Meanwhile, man-made yarn, fabrics and made-ups recorded a growth of 3.6%, increasing from ₹41,196.0 crore to ₹42,687.8 crore.
Among value-added categories, handicrafts excluding handmade carpets showed the highest growth rate among major segments. Exports in this category rose by 6.1%, from ₹14,945.5 crore to ₹15,855.1 crore.
Geographically, export expansion was observed across more than 120 destinations during April 2025 to February 2026 compared to the same period of the previous year. Key markets that registered growth included UAE (22.3%), UK (7.8%), Germany (9.9%), Spain (15.5%), Japan (20.6%), Egypt (38.3%), Nigeria (21.4%), Senegal (54.4%), and Sudan (205.6%).
Government support measures remained in place during the period, including the continuation of the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme and the RoDTEP Scheme beyond 31.03.2026.
Developments in India’s Free Trade Agreement (FTA) agenda also progressed during 2025–26. The India–EFTA TEPA came into effect on 1 October 2025, followed by the signing of the India–UK CETA in July 2025, the India–Oman CEPA in December 2025, and the announcement of the India–New Zealand FTA on 22 December 2025. The India–EU FTA was concluded on 27 January 2026.
These agreements are expected to improve market access, reduce tariff barriers, and support supply chain integration for textiles, apparel, handicrafts, and technical textiles, contributing to export growth and global market diversification.