Textile exports increase by 5.19% in Q1, FY27: CITI

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India’s textile sector continues to show a performance dichotomy, characterized by strong growth in upstream commodities contrasting with mounting cost pressures in the manufacturing chain. As per the Confederation of Indian Textile Industry (CITI) analysis for Q1, FY27, total textile exports increased 5.19 per cent during the quarter. This positive growth was boosted by a strong export performance in June 2026, where overall textile shipments increased 9.64 per cent Y-o-Y year-on-year. Notably, the handicrafts segment spearheaded this momentum, growing 59.7 per cent to $208.31 million, while core staples including cotton yarn, fabrics, and handloom products recorded an 8.82 per cent increase, reaching $1.01 billion.

Despite these gains, the sector faces challenges due to the volatility in input pricing. Manufacturers have contended with an approximate 20 per cent increase in yarn prices since late 2025. While upstream textile producers have successfully adjusted to these inflationary pressures, garment manufacturers struggle to pass these costs to the end consumer, limiting overall margin expansion.

Import data further reveal this shifting pattern, with domestic reliance on foreign raw materials intensifying; imports of raw cotton and waste increased by 151.02 per cent to $185.08 million in June. As the industry faces this complex pricing environment, stakeholders remain focused on increasing value-addition to reduce the impact of rising raw material costs on finished goods competitiveness.