Textile, apparel exports rise 1.8% in FY26 despite global headwinds, says Ministry of Textiles

India's textile and apparel exports, including handicrafts, rose 1.8%  year-on-year to ₹3.25 lakh crore in 2025-26 despite persistent global economic uncertainties and geopolitical disruptions, with the government highlighting a series of policy interventions aimed at improving the sector's global competitiveness.

Exports from the sector stood at ₹3,25,339 crore in FY26, compared with ₹3,19,573.2 crore in the previous financial year, Ministry of Textiles informed Parliament by quoting data from the Directorate General of Commercial Intelligence and Statistics (DGCI&S).

PLI schemes led growth

The government attributed the growth to a combination of production-linked incentives, export support measures and market diversification initiatives undertaken over the past few years. 

These include the PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks Scheme, the Production Linked Incentive (PLI) Scheme for Textiles, the National Technical Textiles Mission (NTTM) and the SAMARTH scheme for skill development in the textile sector.

To support exporters amid rising global uncertainties, the Centre has also extended the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme until September 30, 2026. The Rebate of State and Central Taxes and Levies (RoSCTL) scheme for garments and made-ups has also been extended for another six months to provide policy certainty to exporters.

The government has additionally introduced temporary customs duty exemptions on raw cotton imports until October 31, 2026, as well as on key inputs used in the man-made fibre (MMF) value chain, including Purified Terephthalic Acid (PTA) and Mono-Ethylene Glycol (MEG). It has also rationalised GST rates to address the inverted duty structure in the MMF segment.

To help exporters cope with shipping disruptions triggered by geopolitical tensions in West Asia, the government has launched the Resilience & Logistics Intervention for Export Facilitation (RELIEF) initiative, aimed at easing logistics challenges and ensuring smoother movement of export consignments.

A market diversification strategy 

The government is also pursuing a market diversification strategy covering 40 priority countries. It said India's expanding network of free trade agreements, including the recently implemented trade pact with the United Kingdom, the concluded negotiations with the European Union, and the signed agreement with New Zealand, is expected to open new opportunities for Indian textile exporters.

According to the government, these initiatives have strengthened supply-chain resilience, improved market access, including through e-commerce channels, and enhanced the competitiveness of exporters, particularly micro, small and medium enterprises (MSMEs).