India's Textile Exports Increase 2.1% to ₹3.16 Trillion Despite US Tariffs
India's textile exports grow 2.1% to ₹3.16 trn in FY26 despite US tariffs
Business Standard
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India's textile exports, including handicrafts, rose by 2.1% to ₹3.16 trillion in FY26, despite facing increased tariffs from the US, its largest export market. The growth was driven by strong demand across over 120 destinations, particularly in the UAE, UK, and Germany.
- 01Textile exports grew to ₹3.16 trillion in FY26, up 2.1% from ₹3.09 trillion in FY25.
- 02US tariffs escalated from 10% to 50% during the financial year, impacting exports.
- 03Ready-made garments contributed significantly, increasing by 2.9% to ₹1.39 trillion.
- 04Key markets like Egypt and Sudan saw remarkable growth rates of 38.3% and 205.6%, respectively.
- 05Upcoming Free Trade Agreements with the UK and EU are expected to enhance market access.
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India's textile exports, which encompass handicrafts, grew by 2.1% to ₹3.16 trillion (approximately $38 billion USD) in the financial year ending March 2026, up from ₹3.09 trillion the previous year. This growth occurred despite the imposition of steep tariffs by the United States, which is India's largest export market. Tariffs began at 10% on April 2, 2025, escalating to 50% by August 2025, before a temporary reduction in February 2026 due to a Supreme Court ruling. The textile ministry noted that demand remained robust, with exports increasing to over 120 destinations. Significant growth was observed in markets such as the UAE (22.3%), the UK (7.8%), and Germany (9.9%). Ready-made garments remained the largest segment, contributing ₹1.39 trillion to exports, while handicrafts saw a 6.1% increase. The Apparel Export Promotion Council's chairman highlighted the resilience of the industry and the importance of upcoming Free Trade Agreements (FTAs) with the UK and EU, which are expected to boost competitiveness. Continued government support through export facilitation measures is also crucial for sustaining this momentum.
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The growth in textile exports supports job creation in the sector and contributes to India's economic stability. It also indicates potential for higher wages and employment opportunities for workers in the textile industry.
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