India’s textile and apparel (T&A) exports are facing a tough season as trade tensions with the United States deepen. In September 2025, exports plunged 10.34% year-on-year, the steepest monthly fall following Washington’s 50% reciprocal tariffs imposed in August. This sharp decline underscores the growing strain on India’s textile sector — a cornerstone of its export economy.

According to data from the Ministry of Commerce and Industry, India’s total textile and apparel exports for April–September 2025 stood at $17.74 billion, showing only 0.39% growth compared to the same period last year. Apparel exports managed a modest 3.42% rise to $7.76 billion, while textile exports eased 1.85%, landing at $9.97 billion.

However, the bigger concern lies beneath the surface — a shifting trade balance and rising dependency on imported raw materials. Imports of raw cotton and waste surged 41.75%, reflecting how domestic shortages and tariff pressures are pushing manufacturers to rely on inbound supplies. Similarly, imports of textile yarn, fabrics, and made-ups grew 10.02%, highlighting a potential structural imbalance in India’s textile value chain.

Within the textile segment, cotton yarn, fabrics, made-ups, and handloom exports slipped 2.57%, totaling $5.8 billion for H1 FY26. Exports of man-made yarn and fabrics dropped slightly by 0.20%, while carpet exports fell 1.60%. The steepest monthly decline came in September, when cotton yarn and handloom exports fell 11.66% and carpets 15.28%, respectively.

The broader data paints a concerning picture: while apparel exports remain resilient, the textile backbone of the industry is showing signs of fatigue. The sector’s share in India’s total merchandise exports dropped to 8.06%, down from 8.27% last year — a subtle but significant indicator of lost competitiveness.

In the previous fiscal year (FY25), India’s apparel exports rose 10.03%, reaching $15.99 billion, while textile exports grew 3.61% to $20.62 billion. But with the ongoing tariff battle and import dependence increasing, sustaining this growth will be a challenge.

Conclusion:

India’s textile and apparel sector, once a symbol of steady export growth, is now grappling with tariff-driven volatility. The 10% export fall in September 2025 signals not just short-term turbulence but also long-term structural challenges — including supply chain disruptions and rising import reliance. For policymakers and industry leaders, the path forward lies in strengthening domestic raw material ecosystems, diversifying export destinations, and negotiating fairer trade terms to protect India’s textile future.