India’s outlook for exports of textile and garments during the current fiscal does not appear promising. The April 2026 export figures provides the indication. What has led to this situation is the uncertainty surrounding the US – Iran peace deal to end the West – Asian war which is more than three months long.
Union Commerce Ministry data available shows that textile and apparel exports declined in April to dollar 2.88 billion. Textile exports were marginally up 2.40 percent while apparel exports fell sharply by the 6.6 percent to dollar 1.31 billion. The share T and A exports in India’s total exports came down to 6.59 percent. The figures show that the negative growth seen in the last fiscal (2025-26) continues in this fiscal as well.
Within the textile segment exports of cotton yarn fabrics made-ups marginally rose by 0.45 percent in April. Exports of man-made yarn fabrics and made-ups increased by 2.34 percent to dollar 392.77 million. Exports of ready-made garments (RMG) (cotton) including accessories fell by 10.41 percent to dollar 740.19 million compared to dollar 26.49 million. Exports of RMG man-made fabrics also declined by 12.93 percent to dollar 4.81 million while exports of RMG of other textile materials stood at dollar 255.20.
Imports of raw cotton and waste dropped by 6.10 percent to dollar 81.58 million in April 2026 compared to dollar 86.88 million in the same month last year.
Look at the export performance in 2025-26 fiscal Cumulative textiles and apparel exports one year after the US imposed high tariffs saw a de-growth of 2.21 percent over the previous year while exports in March shrunk 14.02 percent year – on – year. Textile exports recorded 2.86 percent while fall apparel exports also dropped by 1.36 percent during this period.
Coimbatore textile exporters are hoping for a recovery in orders and moderation in key input costs after the US – Iran peace deal. It expects flow of fresh orders from the US and other key markets to revive in the coming months.
Despite broader growth in May, RMG exports fell 14 percent in the US. The 4 percent in rupee terms shows weaker market demand beyond rupee depreciation. The industry attributes this to war-related uncertainty and high base as a result of a more shipment before the US tariffs took effect.
The Confederation of Indian Textiles Industry (CITI) chairman Ashwin Chandran says the uncertainty and shipping challenges have denteddemand. But he expects a recovery in August. “We expect this year to be stable position. Exporters could be benefit from rupee depreciation. Higher input costs and dollar denominated packing credits have impacted the industry” he said.
In March, textile exports recorded a minus growth (9.91 percent) over the same month last year while apparel exports followed suit with a significant de-growth 18-99 percent. Cumulatively exports of textiles and apparel declined by 14.02 percent year on year. The surge in cotton imports last fiscal was becaused the government had eased import duties for about four months from August 28 to December 31.
In November last year India’s total exports exhibited a 10.4 percent growth on the back of a jump in shipments. This was the fastest, growth in more than three years. Textiles and apparel exports also logged in a 9.40 percent increase. Thus total exports had defied Trump tariffs. November figures showed that exports had diversified, according to commerce and industry minister Piyush Goyal.
The 50 percent US tariff on Indian exports had led to a decline in exports in September and October last year due to cancellation of orders Diversification helped to mitigate the decline. As a result certain countries posted a 20 percent to 50 percent increase in exports.
Indian exporters are closely watching the US trade representative’s investigations under Section 301 of the US trade Act and the on-going talks to sign a trade deal with the US. They expect this will put them at an advantage vis-a-vis its competitors.
Exporters are not too worried with the latest proposal to impose a 12.5 percent tariffs on 54 countries, what bothers them is the same levy on China. But most of them question the investigations and argue that India is not a country that allows. US goods for exports using forced labour. India has a robust legal framework governing labour standards and committed to responsible business practices. Any concern can be addressed through constructive dialogue. Since India and the US are actively engaged in trade negotiations we are confident that both sides will work together to strengthen trade and arrive at a mutually beneficial outcome” said Ajay Sahai, Director – General Federation of Indian exporters Organisation (FIEO).
At home, in Coimbatore there are two major issues facing the open end spinning mills and MSMES. One is cotton waste exports and second high electricity tariffs. Open – end spinning mills Association has urged the Union Government to levy an export duty of Rs.200 kg on cotton waste exports, pointing to a sharp and sustained rise in the prices of comber waste, the key raw material for the mills.
The Association says the duty will improve the domestic availability at reasonable prices, Curb, “excessive” price escalation and protect the viability of spinning mills.
Comber waste prices have climbed steadily since September last year rising from Rs.102 kg to Rs.123 – 125 kg in February this year. For the last three months, comber waste has been sold at about Rs.135 kg, worsening input costs for the mills.
Tamil Nadu produces grey cotton yarn from cotton waste. OE mills across India produce about 30 lakh grey cotton yarn per month, using cotton waste sourced from spinning mills. The current shortage is attributed to risingexports of cotton waste. Exporters are running at 150 containers a month with each carrying about 23,000 kg translating into roughly 34.5 lakh kg of cotton waste moving out monthly.
Coimbatore Industrial leaders have appealed to the State government to waive this year’s electricity tariff hike for MSMES saying higher power and property costs are hurting the sector and it threatening its competitiveness.
According to President of the Coimbatore Small Industry Association (CODISSIA) the district is to home to more than 2.5 lakh MSMES. He urged the government to reduce fixed charges from the present Rs.145 per kw to one third of the current level. He also sought a 50 percent cut in property tax for industries to ease mounting operational costs. These measures are essential for the survival of MSMES amidst geo-political uncertainties and rising production costs.
