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India's Textile Exports Dip 3.75% in Jan, US Tariff Cut Sparks Hope

India's textile and apparel exports declined by 3.75% year-on-year in January 2026, largely due to high US tariffs that persisted until February 7. Key segments like cotton yarn, carpets, and jute products saw significant drops in shipments during the month. However, imports of raw cotton surged sharply, indicating strong domestic demand or supply chain adjustments. The trade outlook is now expected to improve following the recent US tariff reduction, which should boost India's export competitiveness.

Key Points: India Textile Exports Fall, US Tariff Deal to Boost Outlook

  • Exports fell 3.75% to $3.28B in Jan 2026
  • US high tariffs hurt competitiveness until Feb 7
  • Cotton yarn, carpet, jute exports saw sharp declines
  • Imports of raw cotton surged over 72% Apr-Jan
  • Outlook improves with US tariff reduction deal
3 min read

India's textile and apparel exports down by 3.75% in January, outlook improves now with India US interim deal

India's textile & apparel exports fell 3.75% in Jan 2026. US tariff reduction from Feb 7 expected to improve competitiveness & recovery.

"The tariffs impacted export competitiveness and led to lower shipments during the month."

New Delhi, February 17

India's textile and apparel exports registered a decline in January compared with the same period last year, largely due to high tariffs imposed by the United States that remained in force till February 7.

The tariffs impacted export competitiveness and led to lower shipments during the month.

According to the data shared by Confederation of Indian Textile Industry (CITI), textile exports in January have declined by -3.68 per cent, while apparel exports are down by -3.84 per cent in January 2026 compared with January 2025.

Overall, combined exports of textiles and apparel stood at 3,275.44 million US dollars in January 2026, down from 3,403.19 million US dollars in January 2025, registering a degrowth of -3.75 per cent.

The decline was mainly seen across key textile segments. Exports of cotton yarn, fabrics, made-ups, and handloom products fell by -4.15 per cent to 995.58 million US dollars in January 2026 from 1,038.69 million US dollars in January 2025.

Carpet exports also declined sharply by -12.05 per cent to 118.99 million US dollars, while exports of jute manufactured products, including floor coverings, dropped significantly by -18.92 per cent during the same period. Handicrafts, excluding handmade carpets, also saw a decline of -2.70 per cent.

However, exports of man-made yarn, fabrics, and made-ups showed some resilience and recorded a slight growth of 1.01 per cent, rising to 430.29 million US dollars in January 2026 compared with 425.97 million US dollars in January 2025.

The data further revealed that during the period from April 2025 to January 2026, textile exports registered a degrowth of -2.35 per cent, while apparel exports recorded a growth of 1.59 per cent compared with the same period of the previous financial year.

Despite this growth in apparel exports, cumulative textile and apparel exports during April 2025 to January 2026 registered a marginal decline of -0.65 per cent compared with April 2024 to January 2025.

The share of textile and apparel exports in India's total exports also declined. The sector accounted for 8.96 per cent of total exports in January 2026, compared with 9.37 per cent in January 2025.

For the April 2025 to January 2026 period, the share stood at 8.13 per cent, lower than 8.36 per cent in the same period of the previous year.

On the import side, imports of cotton raw and waste increased significantly by 12.33 per cent in January 2026 and rose sharply by 72.36 per cent during the April 2025 to January 2026 period. This increase suggests higher domestic demand for raw materials or supply adjustments within the textile industry.

Now the outlook is expected to improve going forward following the United States' reduction of tariffs on February 7. The tariff reduction is likely to improve India's export competitiveness and support recovery in textile and apparel shipments in the coming months.

- ANI

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Reader Comments

P
Priya S
The sharp decline in carpet and jute exports is really sad. These are traditional handicrafts where so many artisans pour their heart into their work. Hope the new deal helps revive these segments too. 🇮🇳
A
Aman W
Good to see the interim deal is in place. The US is a major market. But we can't keep relying on these last-minute fixes. Our trade diplomacy needs to be more proactive to prevent such shocks to our exporters.
S
Sarah B
Interesting data. The growth in man-made yarn is a silver lining. It shows adaptation and resilience in part of the industry. Maybe this is where future focus should be, alongside our traditional strengths in cotton.
K
Karthik V
The 72% jump in cotton raw imports is telling. Are our own cotton farmers getting a good price? Or is there a supply chain issue? Hope the benefits of the US deal reach the entire chain, from farmer to factory.
N
Nisha Z
While the deal is positive, let's not forget the workers who faced uncertainty for months. Job security in the textile sector is fragile. Need stronger social safety nets for such global trade-linked industries.

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