India’s textile exports maintained positive momentum during the first four months of FY2026-27, but a steep decline in apparel shipments pulled down the overall textile and apparel export performance. Combined exports fell 1.84% year-on-year to USD 11.96 billion during April-July 2026, according to an analysis by the Confederation of Indian Textile Industry (CITI).
The divergence between the two segments was significant. Textile exports increased 5.38% to USD 7.01 billion during the period, while apparel exports declined 10.52% to USD 4.95 billion. In the corresponding period last year, the combined segment had generated USD 12.18 billion in exports.
July 2026, however, brought a modest improvement. Combined textile and apparel exports rose 1.44% year-on-year to USD 3.14 billion. Textile shipments increased 5.94% to USD 1.87 billion, while apparel exports contracted at a slower pace of 4.48%, reaching USD 1.28 billion.
Cotton-based products continued to support textile exports. Shipments of cotton yarn, fabrics, made-ups and handloom products grew 8.4% in July to USD 1.11 billion. The man-made fibre segment was comparatively subdued, with exports of man-made yarn, fabrics and made-ups rising just 0.45% to USD 424.13 million.
Handicrafts emerged as one of the strongest-performing categories. Exports, excluding handmade carpets, increased 15.55% year-on-year to USD 177.06 million in July. For April-July, the segment recorded a much stronger 30.48% growth, taking exports to USD 719.88 million.
Not all segments shared this positive trend. Jute manufacturing exports, including floor coverings, declined 14.95% in July and 13.8% during April-July. Carpet exports also remained under pressure, falling 1.47% in July, although cumulative exports for April-July were marginally higher by 0.27%.
On the import side, India’s dependence on overseas supplies of raw cotton and waste increased sharply. Imports of these materials surged 46.01% year-on-year to USD 175.67 million in July and were up 53.63% at USD 588.75 million during April-July.
Imports of textile yarn, fabrics and made-ups presented a more mixed picture, increasing 1.64% in July but registering a marginal 0.99% decline over the April-July period.
The textile and apparel sector’s subdued overall performance also stands in contrast to India’s broader merchandise export growth. Merchandise exports increased 19.63% in July and 17.04% during April-July. As a result, textiles and apparel accounted for 7.11% of total merchandise exports in July and 6.88% during the April-July period.
