Textile Exports Surge by 1.8 Percent; Government Bolsters Sector with Policy Extensions amid Global Headwinds

Textile Exports Surge by 1.8 Percent; Government Bolsters Sector with Policy Extensions amid Global Headwinds​

The Indian textile and apparel industry demonstrated remarkable resilience in the recent fiscal year, achieving growth despite persistent global market fluctuations and input cost pressures. Export revenues for textiles and apparel, including handicrafts, stood at ₹3,25,339.0 crore in 2025-26. This figure represents a solid growth of 1.8 per cent when compared to the previous year's total of ₹3,19,573.2 crore.

The sector’s global reach was significantly expanded during 2025-26, with exports recording growth in more than 100 diverse international destinations. This sustained performance underscores the industry's deep penetration and growing competitive edge on the world stage.

Sustained Growth Amid Global Headwinds​

Despite facing challenges related to fluctuating global demand and variations in input costs, the textile sector maintained a positive trajectory. The consistent growth across multiple international markets highlights the robustness of the Indian manufacturing base.

Key regional hubs contributed strongly to this national performance. Exports from Madhya Pradesh reached ₹11,751.7 crore in 2025-26, showing marginal increases compared to ₹11,748.9 crore recorded in 2024-25. Bihar also saw an uptick, with exports growing to ₹409.0 crore, up from ₹375.6 crore the previous year.

Critical Government Interventions and Market Facilitation​

The government has deployed a comprehensive suite of schemes aimed at fostering sustainable growth and enhancing the global competitiveness of the textile value chain. These initiatives encompass major programs such as the PM MITRA Parks Scheme and the Production Linked Incentive (PLI) Scheme, alongside specialized support like the National Technical Textiles Mission.

Policy interventions were tailored to address external shocks. The RELIEF (Resilience and Logistics Intervention for Export Facilitation) measure was launched on March 19, 2026. This intervention is specifically designed to assist exporters who are affected by maritime challenges in the Gulf region or conflict arising in West Asia/Middle East.

To augment domestic availability and support local producers, the import of Cotton falling under Customs Tariff Heading 5201 has been exempted from June 1 to October 31, 2026.

Strengthening Trade Links and Policy Predictability​

India’s international trade agreements are playing a crucial role in market diversification. The country currently maintains sixteen active Free Trade Agreements (FTAs), including the comprehensive India-United Kingdom Economic and Trade Agreement (CETA). Furthermore, successful negotiations concluded an FTA with the European Union, and an FTA was signed with New Zealand, providing new avenues for export expansion.

To ensure continuity and predictability in the sector, the government has extended two vital schemes. Both the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme and the Remission of Duties and Taxes on Export Products (RoDTEP) Scheme have been extended for a further six months, running until 30 September 2026.

These policies, alongside other supportive frameworks such as Niryat Protsahan and Niryat Disha, are instrumental in generating employment and strengthening supply-chain resilience across the textile value chain.