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US tariff causes 12% dip in India's textile & apparel exports

18 Nov '25
3 min read
US tariff causes 12% dip in India's textile & apparel exports
Pic: Shutterstock.com

Insights

  • India's textile and apparel exports are sliding as the US reciprocal tariff continues to erode competitiveness, driving a sharp 12.9 per cent fall in October.
  • Both textiles and apparel are weakening, even as raw cotton imports surge.
  • The sector's share in overall exports is narrowing, signalling persistent pressure on margins and supply chain planning.
India’s textile and apparel (T&A) exports continued its downward trend in October 2025. It was the second month after the 50 per cent reciprocal tariff was imposed in two tranches during August. The external trade dipped 12.91 per cent in October after fall of 10.34 per cent in September 2025. The country’s textile and apparel exports recorded decline of 1.57 per cent during the first seven months of the current fiscal 2025–26 (April–March).

The T&A shipments declined to $2.666 billion in October 2025, down from $3.061 billion in October 2024. Total T&A exports stood at $20.401 billion in April– October 2025, compared to $20.728 billion during the same period last year.

According to an analysis by the Confederation of Indian Textile Industry (CITI), shipments of both segments—textiles and apparel—saw a steep fall in October 2025. Apparel exports dropped 12.88 per cent to $1,069.42 million, down from $1,227.58 million in October 2024, while textile exports fell 12.92 per cent to $1,596.99 million from $1,833.96 million.

During April–September 2025, apparel exports inched up 1.13 per cent to $8.832 billion from $8.733 billion, while textile exports eased 3.54 per cent to $11.569 billion from $11.994 billion.

The share of T&A in India’s total merchandise exports fell to 8.02 per cent during April–September 2025, compared to 8.20 per cent in the same period last year, according to the latest trade data released by the Ministry of Commerce and Industry.

Within the textiles segment, exports of cotton yarn, fabrics, made-ups, and handloom products declined 4.18 per cent to $6.702 billion in the first seven months of FY26. Exports of man-made yarn, fabrics, and made-ups dropped 1.98 per cent to $2.787 billion, while carpet exports decreased 3.93 per cent to $857.42 million.

In October 2025, exports of cotton yarn, fabrics, made-ups, and handloom products fell 13.31 per cent to $906.48 million, while exports of man-made yarn, fabrics, and made-ups dropped 11.75 per cent to $386.53 million. Carpet exports declined 15.80 per cent to $123.59 million.

Imports of raw cotton and waste surged 50.51 per cent to $910.73 million during April– October 2025, compared to $605.09 million in the same period of the previous fiscal. Imports of textile yarn, fabrics, and made-ups rose 8.22 per cent, from $1,426.36 million to $1,543.67 million.

In October 2025, imports of raw cotton and waste increased 83.26 per cent, from $127.70 million to $234.02 million. Imports of textile yarn, fabrics, and made-ups eased 1.17 per cent to $226.55 million.

In FY25, India’s apparel exports rose 10.03 per cent to $15.989 billion, while textile exports grew 3.61 per cent to $20.617 billion. Imports of raw cotton and waste surged 103.67 per cent to $1.219 billion, and imports of textile yarn, fabrics, and made-ups increased 8.69 per cent to $2.476 billion.

In FY24, India’s T&A exports stood at $34.430 billion, marking a 3.24 per cent decline from $35.581 billion in FY23. Imports of raw cotton and waste were valued at $598.63 million in FY24, down 58.39 per cent from $1.439 billion in FY23. Imports of textile yarn, fabrics, and made-ups also fell 12.98 per cent to $2.277 billion.

ALCHEMPro News Desk (KUL)

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