India's textile and apparel exports to the United States experienced a significant decline of 28.7% in February 2026, as reported by the Office of Textiles and Apparel. This drop is stark compared to a 16.4% decrease from Bangladesh and a 5% increase from Vietnam, highlighting India's struggle in maintaining market share. The steepest decline was observed in imports from China, which fell by 45.2%. Despite the rollback of additional tariffs in February, the benefits have not yet translated into increased orders, leaving exporters to grapple with lost clients who shifted their sourcing to countries with lower tariffs. Rajat Jaipuria, managing director of Rajalaxmi Cotton Mills, noted that only 40% of US buyers have returned to India, and while some recovery is expected by May-June, the overall uncertainty continues to impact company earnings. The Confederation of Indian Textile Industries indicated that the decline is indicative of a lag effect from the tariff rollback and structural gaps in the industry. Consequently, key clusters are facing underutilization of capacities, with listed apparel and home textiles reporting over 50% decline in profit after tax growth, reflecting a sharp demand compression and margin squeeze.