Textiles, Garment Exports Decline 2.2 Percent in 2025-26, According to GTRI Data

Textile Exports Decline in India

The country's textile and garment exports have seen a significant downturn in the fiscal year 2025-26, with a decline of 2.2 per cent to USD 35.8 billion. A report released by the think tank GTRI on Saturday highlighted the contraction in shipments of key segments such as cotton.

According to the report, the decline in exports is visible across major segments, including cotton textiles, which saw a drop of 3.9 per cent, ready-made garments, which declined by 1.4 per cent, and carpets, which experienced a contraction of 5.3 per cent. In contrast, handicrafts showed a slight growth of 1.5 per cent during the fiscal year.

The report also pointed out a discrepancy in the growth of exports when viewed in Indian Rupee (INR) and USD terms. The Global Trade Research Initiative (GTRI) stated that this highlights a deeper structural concern. According to the report, India is exporting more in value terms domestically but earning fewer dollars globally.

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The founder of GTRI, Ajay Srivastava, attributed this trend to currency depreciation rather than a decline in competitiveness. He pointed out that in real terms, India is losing market share or failing to expand in key global markets, particularly in labour-intensive sectors where it should be gaining ground.

Srivastava raised a critical policy question: why are ongoing reforms not translating into export growth? Despite initiatives on production-linked incentives, logistics improvements, and trade facilitation, the data shows stagnation or decline in core segments. He urged the government to urgently investigate bottlenecks to address the issue.