Textile Sector Expands Trade Footprint; Govt Initiatives Drive Competitiveness and Market Diversification
The Indian textile and apparel sector is showing stable growth, bolstering its presence in over 100 international markets. Exports of textiles and apparel, including handicrafts, reached ₹3,25,339 crore in the financial year 2025-26. This represents a modest yet consistent growth of 1.8 percent compared to the export value of ₹3,19,573.2 crore recorded in 2024-25.The government has responded to global challenges by implementing a robust array of schemes aimed at enhancing the sector's competitiveness and ensuring export preparedness. These initiatives span financial stability, input support, and supply chain resilience for Indian manufacturers.
Bolstering Competitiveness Through Targeted Government Support
To stabilize and strengthen the industry, several crucial policy measures have been enacted. The Rebate of State and Central Taxes and Levies (RoSCTL) Scheme, which provides a rebate on embedded taxes for garment exports, has been extended until 30 September 2026 to ensure policy predictability for exporters.Furthermore, recent interventions address specific input challenges and logistical concerns. This includes the temporary exemption from customs duties on key inputs in the man-made fibre (MMF) value chain, such as Purified Terephthalic Acid and Mono-Ethylene Glycol. The government also extended the Remission of Duties and Taxes on Exported Products Scheme up to 30 September 2026.
Securing Global Markets Through Strategic Trade Agreements
Market diversification remains a core focus for the Ministry of Textiles, with strategies targeting 40 priority countries. India has successfully concluded FTA negotiations with the European Union (EU) and signed an agreement with New Zealand, creating expanded avenues for the sector.The existing international commitments include the Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom. These trade agreements present significant opportunities for the Indian textile industry to enhance exports and deepen global market penetration beyond its current 100-plus countries.
Strengthening Supply Chains and Fostering Grassroots Growth
A major push has been placed on infrastructure building and decentralized growth across India. The Ministry of Textiles established six Textile Export Facilitation Centres (TEFCs) to streamline processes for exporters. This focus also includes the adoption of a district-led approach, with specialized support being provided to 100 champion and 100 aspirational Textiles Districts.The industry’s global presence was highlighted during Bharat Tex, a mega textiles event held from 14th to 17th July 2026. This gathering aimed to showcase India's entire textile value chain and solidify the country's position as a leading sourcing hub for apparel and textiles. The products of both textiles and handicrafts were exported from more than 500 districts in 2025-26, underscoring grassroots industrial strength.
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