India's textile and apparel exports grew 1.8% to ₹3.25 lakh crore in the 2025-26 fiscal year. This growth comes despite global economic uncertainty, supported by government schemes and duty relief measures. Investors should monitor how these policy supports and new trade pacts influence the margins of major textile exporters in the coming quarters.
Detailed Coverage
India's textile and apparel industry, which includes handicrafts, recorded a modest export growth of 1.8% to reach ₹3.25 lakh crore for the fiscal year 2025-26. According to data from the Directorate General of Commercial Intelligence and Statistics presented by the Ministry of Textiles, this performance reflects the sector's ability to maintain trade levels despite global economic instability and ongoing geopolitical challenges.
Government Initiatives and Support Schemes
The government has deployed a series of policy interventions to support domestic exporters and enhance competitiveness. Major programs such as the PM Mega Integrated Textile Regions and Apparel (PM MITRA) parks and the Production Linked Incentive (PLI) scheme remain central to these efforts. Additionally, skill development programs like SAMARTH and the National Technical Textiles Mission continue to be key areas of focus for long-term capacity building.
To provide stability to exporters, the government extended the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme until September 30, 2026. Simultaneously, the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for apparel and made-ups has been extended for six months. These moves are intended to offer better cost predictability for businesses operating in a volatile global trade environment.
Raw Material and Logistics Adjustments
Operational costs have been a significant concern for the industry, prompting the government to take specific steps to ease margin pressure. Import duties on raw cotton were waived until October 31, 2026, to help manage input costs. Furthermore, the industry has benefited from exemptions on essential man-made fibre inputs, specifically Purified Terephthalic Acid (PTA) and Mono-Ethylene Glycol (MEG). Rationalization of the Goods and Services Tax (GST) in the man-made fibre segment was also completed to correct structural imbalances.
Logistics challenges, particularly those stemming from shipping disruptions in West Asia, are being addressed through the RELIEF initiative. Beyond immediate operational fixes, the government is pursuing a market diversification strategy across 40 countries. Recent trade agreements with the United Kingdom and New Zealand, alongside ongoing negotiations with the European Union, are part of a broader effort to expand the footprint of Indian goods.
For investors, the primary monitorable remains whether these policy measures can translate into stronger profit margins for listed textile companies. While export volumes have shown resilience, the eventual impact on company balance sheets will depend on the sustained demand in international markets and the ability of firms to utilize these government incentives effectively to compete with regional manufacturing hubs.