India textile exports hit ₹3.25 lakh crore in 2025–26, up 4.7% CAGR
Synopsis
India's textile and apparel exports crossed ₹3.25 lakh crore in 2025–26, growing at a 4.7% CAGR — but the more telling detail is that growth spread across 100-plus countries, signalling a deliberate market-diversification push backed by 16 active FTAs, a cotton duty waiver, and a new logistics relief scheme for Gulf-disruption-hit exporters.
Key Takeaways
India's textile and apparel exports (including handicrafts) reached ₹3,25,339 crore in 2025–26 , up from ₹2,97,004 crore in 2023–24 .
The sector registered a CAGR of 4.7% over the two-year period, as disclosed in the Lok Sabha on 28 July 2025 .
Export growth was recorded across more than 100 countries ; top five destinations were the US , Bangladesh , UAE , UK , and Germany .
16 Free Trade Agreements in force — including the India–UK CETA and concluded FTAs with the EU and New Zealand — are expected to further boost market access.
Customs duty on cotton imports temporarily exempted from 1 June to 31 October 2026 to ease raw material supply.
The RELIEF scheme, launched 19 March 2026 , supports exporters hit by West Asia/Middle East conflict and Gulf maritime disruptions.
India's textile and apparel exports, including handicrafts, rose to ₹3,25,339 crore in 2025–26, up from ₹2,97,004 crore in 2023–24, registering a compound annual growth rate (CAGR) of 4.7% over the period, the government informed Parliament on Tuesday, 28 July 2025. Minister of State for Textiles Pabitra Margherita disclosed the figures in a written reply to a question in the Lok Sabha.
Key Export Destinations
The United States, Bangladesh, the UAE, the United Kingdom, and Germany were the top five destinations for Indian textile and apparel exports in 2025–26. Notably, export growth was recorded across more than 100 countries compared with the previous year, signalling broad-based demand rather than dependence on a handful of markets.
Government Schemes Driving Growth
The government attributed the export surge to a clutch of active schemes and initiatives. These include the PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks Scheme, the Production-Linked Incentive (PLI) Scheme, the National Technical Textiles Mission, and SAMARTH — the Scheme for Capacity Building in the Textile Sector. Handloom and handicraft segments are supported through the National Handloom Development Programme, the National Handicrafts Development Programme, and the Comprehensive Handicrafts Cluster Development Scheme.
On the fiscal side, the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme — in force since March 2019 and recently extended to 30 September — along with the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme continue to shore up price competitiveness for exporters. The government has also launched the Export Promotion Mission (EPM), comprising Niryat Protsahan and Niryat Disha, and a Credit Guarantee Scheme for Exporters (CGSE).
Market Diversification and Trade Agreements
A focused export-promotion strategy covering 40 priority countries is being pursued alongside 16 Free Trade Agreements (FTAs) currently in force. These include the India–United Kingdom Comprehensive Economic and Trade Agreement (CETA) and concluded FTAs with the European Union (EU) and New Zealand, which are expected to open new avenues for market diversification in the textile and apparel sector.
Addressing Supply-Side and Logistics Challenges
To cushion exporters from geopolitical headwinds, the government launched RELIEF (Resilience and Logistics Intervention for Export Facilitation) on 19 March 2026 under the Export Promotion Mission. The scheme targets exporters affected by disruptions stemming from the West Asia/Middle East conflict and maritime challenges in the Gulf region.
On the raw material front, customs duty on cotton imports has been temporarily exempted from 1 June to 31 October 2026 to augment domestic availability. Additionally, the government has approved the Mission for Cotton Productivity for 2026–27 to 2030–31 to address productivity bottlenecks and quality concerns in India's cotton sector. Minister Margherita underscored that the government continues to work with exporters and industry stakeholders to mitigate challenges and strengthen the sector's global competitiveness.
Point of View
But it trails the ambition embedded in a dozen overlapping schemes — from PM MITRA parks to PLI to RoSCTL — that collectively represent substantial fiscal outlay. The real signal worth watching is the spread across 100-plus countries: if that diversification holds, India becomes less vulnerable to a US tariff shock or a Bangladesh sourcing shift. However, the cotton duty waiver and the RELIEF scheme reveal that supply-side stress and geopolitical freight disruptions remain live risks, not solved problems. Parliament received a progress report; what it still lacks is a scheme-by-scheme jobs and output scorecard.
NationPress
28 Jul 2026
Frequently Asked Questions
How much did India's textile and apparel exports grow in 2025–26?
India's textile and apparel exports, including handicrafts, grew to ₹3,25,339 crore in 2025–26 from ₹2,97,004 crore in 2023–24, registering a CAGR of 4.7% over the period. The figures were shared by Minister of State for Textiles Pabitra Margherita in a written reply in the Lok Sabha on 28 July 2025.
Which countries are the top destinations for Indian textile exports?
The top five export destinations for Indian textiles and apparel in 2025–26 were the United States, Bangladesh, the UAE, the United Kingdom, and Germany. Growth was recorded across more than 100 countries compared with the previous year.
What government schemes are supporting India's textile export growth?
Key schemes include the PM MITRA Parks Scheme, the PLI Scheme, the National Technical Textiles Mission, SAMARTH, RoSCTL, RoDTEP, and the Export Promotion Mission (comprising Niryat Protsahan and Niryat Disha). A Credit Guarantee Scheme for Exporters (CGSE) is also in place to ease financing for exporters.
What is the RELIEF scheme launched for textile exporters?
RELIEF — Resilience and Logistics Intervention for Export Facilitation — was launched on 19 March 2026 under the Export Promotion Mission. It is designed to support textile exporters affected by disruptions caused by the West Asia/Middle East conflict and maritime challenges in the Gulf region.
How is the government addressing cotton supply for the textile sector?
Customs duty on cotton imports has been temporarily exempted from 1 June to 31 October 2026 to augment domestic availability of raw material. Additionally, the Mission for Cotton Productivity has been approved for 2026–27 to 2030–31 to improve productivity and address quality-related concerns in India's cotton sector.
