Textile Exports Surge in FY26: Government Initiatives Fuel 1.8% Growth as India Expands Global Reach

Textile Exports Surge in FY26: Government Initiatives Fuel 1.8% Growth as India Expands Global Reach​

The Indian textile and apparel sector registered steady growth in the fiscal year 2025-26, driven by significant government support and diversification efforts. Exports of textiles and apparel, encompassing handicrafts, reached ₹3,25,339 crore in 2025-26. This marked a solid increase of 1.8 per cent over the previous fiscal year's exports, which stood at ₹3,19,573.2 crore.

The robust performance saw export growth recorded across more than 100 countries, highlighting the industry's deepening global presence. The government has rolled out multiple comprehensive schemes to bolster the sector's competitiveness and ensure export readiness on a global scale.

Targeted Policy Interventions Drive Sector Strength​

To enhance the global standing of textiles and apparel, the government implemented several key initiatives. These include the PM Mega Integrated Textile Regions and Apparel Parks Scheme and the Production Linked Incentive Scheme for Textiles. Further support comes through the National Technical Textiles Mission and SAMARTH, a scheme dedicated to Capacity Building in the Textile Sector.

Addressing evolving international challenges, various measures were recently introduced to provide necessary resilience. These temporary concessions include the extension of Remission of Duties and Taxes on Exported Products Scheme up to 30 September 2026. Additionally, there is a temporary exemption from customs duty on specific inputs, such as Purified Terephthalic Acid and Mono-Ethylene Glycol, in the man-made fibre (MMF) value chain until October 31, 2026.

Strategic Export Market Diversification and Agreements​

A focused export promotion strategy is actively covering 40 priority countries. The sector benefits from existing trade relationships, with sixteen Free Trade Agreements (FTAs) already in place, including the India-United Kingdom Comprehensive Economic and Trade Agreement (CETA).

Furthermore, successful FTA negotiations have been concluded with the European Union, and India has signed an agreement with New Zealand. These strategic agreements present substantial opportunities for Indian textiles to expand their market reach and diversify their export base internationally.

Strengthening Supply Chain Resilience through Relief Initiatives​

Recognizing the disruptions caused by geopolitical shifts in West Asia, a specialized intervention was launched. The Resilience & Logistics Intervention for Export Facilitation (RELIEF) initiative was introduced specifically to support exporters impacted by these evolving maritime logistics challenges across the Gulf and adjoining regions.

The commitment to exporter stability is further demonstrated by the extension of the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme. This scheme, which provides a rebate on embedded taxes for garments and made-ups, has been extended for another six months until 30 September 2026, ensuring policy predictability.

Advancing Industry Reach and Ecosystem Showcase​

The Ministry of Textiles established six Textile Export Facilitation Centres (TEFCs) to bolster sector competitiveness. A crucial effort involves the India Immersive Experience Programme, designed via the National Institute of Fashion Technology, to showcase India's vibrant textiles, handicrafts, and design ecosystem to global institutions.

The success of district-level promotion was evident as products from over 500 districts were exported in 2025-26. The government has adopted a focused approach involving 100 champion and 100 aspirational Textiles Districts to improve planning and implementation support at the grassroots level.

India Establishes Global Hub Status​

The sector’s industry depth was showcased during the third edition of Bharat Tex, held from July 14th to 17th, 2026. This global mega textiles event successfully brought together stakeholders across the entire textile value chain. The Summit also fostered collaborative dialogue on growth potential and district unlocking, concluding a successful meeting that included representatives from industry, academia, and State Governments/UTs.

Collectively, these comprehensive measures are reported to have strengthened supply-chain resilience, diversified export markets, and improved market access for Indian exporters, especially Micro, Small and Medium Enterprises (MSMEs).