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India's Textiles and Garment Exports Fall 2.2% in FY2025-26

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India's textiles and garment exports fell by 2.2% in FY2025-26, according to the Global Trade Research Initiative (GTRI). The decline reflects weakening global demand, intensifying competition from Bangladesh, Vietnam, and other low-cost exporters, and disruptions from the West Asia conflict affecting shipping routes. Separately, India's engineering exports to West Asia recorded a 50% slump, highlighting the broader trade impact of the regional conflict. India's overall export strategy faces headwinds from rising input costs, rupee volatility, and logistics disruptions due to Houthi attacks in the Red Sea region.

Key Facts & Details

7 points
  • 1
    India's textile and garment exports fall 2.2% in FY2025-26 (GTRI data)
  • 2
    Engineering exports to West Asia slump 50% due to regional conflict
  • 3
    Competition from Bangladesh, Vietnam, and logistics disruptions impact exports

Deep Dive

  • +
    India is the world's 6th largest exporter of textiles and apparel
  • +
    The textiles sector employs over 45 million workers directly, making it the second-largest employer after agriculture
  • +
    Key export destinations include the US, EU, UK, and UAE
  • +
    The government launched the PM MITRA scheme (Mega Integrated Textile Region) to boost manufacturing
Q

Exam Focus

Likely MCQ: What was the decline in India's textiles exports in FY2025-26? → Answer: 2.2%

Related Topics

Foreign Trade

Exam Relevance & Angle

Important for Economy: India's export performance, textile industry, and trade competitiveness.

Target Exams

SBI POIBPS POSSC CGLUPSC CSERBI Grade B

Background & Context

India's textiles and apparel industry is one of the largest in the world, contributing about 2.3% to GDP and 12% to total exports. It employs over 45 million workers directly and another 60 million indirectly, making it the second-largest employer after agriculture.

The government has launched several initiatives to boost the sector, including the PM MITRA (Mega Integrated Textile Region) scheme to establish 7 mega textile parks, the Production Linked Incentive (PLI) scheme for man-made fibre and technical textiles, and the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.

Competition from Bangladesh (which benefits from EU's 'Everything But Arms' duty-free access), Vietnam (which has FTAs with the EU and CPTPP), and China continues to challenge India's market share in global apparel exports.

Related GK Concepts

Must Know
Textile ExportsPM MITRAPLI SchemeRoDTEPTrade DeficitManufacturing Competitiveness

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India's Textiles and Garment Exports Fall 2.2% in FY2025-26 — Current Affairs 2026-04-26