Indian Textile Exports Slip in January, But US Tariff Relief Sparks Recovery Hopes
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India’s textile and apparel sector began the year on a cautious note, with exports declining 3.75 per cent year-on-year in January 2026, weighed down largely by high tariffs imposed by the United States until February 7. The tariff burden eroded price competitiveness, particularly in the world’s largest consumer market, resulting in softer shipments across major categories.
Combined textile and apparel exports stood at $3,275.44 million in January 2026, compared with $3,403.19 million in January 2025. Textile exports alone fell 3.68 per cent, while apparel exports declined 3.84 per cent, according to data released by the Confederation of Indian textile industry (CITI). The downturn was broad-based:
- Cotton yarn, fabrics, made-ups and handloom products fell 4.15 per cent
- Carpet exports dropped sharply by 12.05 per cent
- Jute manufactured products declined 18.92 per cent
- Handicrafts (excluding carpets) slipped 2.70 per cent
One bright spot emerged in man-made yarns and fabrics, which posted a modest 1.01 per cent growth, reflecting gradual diversification toward synthetic and blended segments.
Mixed Trends in the Financial Year So Far
Looking at the broader April 2025–January 2026 period, the picture remains nuanced. Textile exports recorded a 2.35 per cent decline, while apparel exports managed a 1.59 per cent growth. However, combined exports for the period still saw a marginal 0.65 per cent contraction compared with the previous year. The sector’s share in India’s total exports also slipped:
- January 2026: 8.96 per cent (vs. 9.37 per cent last year)
- April–January FY26: 8.13 per cent (vs. 8.36 per cent previously)
Meanwhile, cotton raw and waste imports surged 12.33 per cent in January and an impressive 72.36 per cent during April–January, indicating rising domestic raw material demand and possible inventory rebuilding by mills.
US Interim Deal: A Turning Point Ahead?
The mood, however, is shifting. The United States’ decision to reduce tariffs effective February 7 is widely seen as a structural positive for Indian exporters. The easing of trade barriers is expected to restore competitiveness in key categories and revive order flows in the coming months. Industry observers believe the tariff rollback could:
- Improve price parity with competing Asian suppliers
- Accelerate recovery in cotton-based exports
- Support apparel shipment growth in the next quarter
- Stabilise the sector’s export share in India’s overall trade basket
While January’s numbers reflect short-term headwinds, the medium-term outlook appears brighter. With improved trade terms and sustained demand in global markets, India’s textile and apparel industry may be poised for a gradual rebound, turning early-year weakness into a platform for renewed export momentum.
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