Short Description
India’s textile and apparel exports declined in January due to lingering US tariffs, but a recent tariff cut promises recovery. Full analysis inside.
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3 minutes, 15 seconds
Main Article
India’s crucial textile and apparel sector faced headwinds in January 2026, with exports declining by 3.75% compared to the same month last year. Data from the Confederation of Indian Textile Industry (CITI) reveals this dip was largely driven by high tariffs imposed by the United States, which impacted export competitiveness right up until February 7. Key segments felt the pressure: cotton yarn and fabric exports fell by 4.15%, while more specialized exports like carpets plummeted by over 12%. This underperformance dragged the sector’s share of India’s total exports down from 9.37% to 8.96% year-on-year, highlighting a significant soft patch for a major global supplier.
The breakdown of the data shows a sector under strain but with nuanced trends. While overall figures were down, apparel exports showed resilience in the broader April-January period, registering a 1.59% growth. Conversely, textile exports during the same timeframe saw a 2.35% decline. An interesting counterpoint is the sharp 72% surge in imports of cotton raw and waste from April 2025 to January 2026, suggesting either stockpiling or adjustments to domestic supply chains ahead of anticipated policy shifts. The immediate cause of the January slump is clear: the US tariffs created a pricing disadvantage in one of India’s largest markets, directly leading to lower shipment volumes.
However, the outlook for Indian textiles has brightened considerably. The key change is the United States’ decision to reduce these tariffs effective February 7. This policy shift is expected to restore India’s cost-competitiveness in the American market, potentially reversing the recent decline. Industry analysts now forecast a recovery in export orders and shipment volumes in the coming months. This anticipated rebound is crucial not just for India’s trade balance but also for the millions employed in its textile manufacturing ecosystem, offering a clearer path forward after a period of uncertainty.
Short Summary
India’s textile exports fell in January 2026 due to US tariffs, which suppressed competitiveness. While apparel showed some annual growth, textiles declined. The recent US tariff reduction is set to improve the outlook, promising a recovery in shipments and restoring India’s position in a key global market. The sector’s performance is now poised for a positive shift.
