Trade pacts and value-added segments sustain India’s textile exports

India’s textile and apparel sector faced a volatile global trade environment in FY25-26, managing a 2.1 per cent growth in total exports at Rs 316,334.9 crore. The man-made fiber (MMF) segment outperformed traditional categories with a 3.6 per cent growth, signaling successful industry efforts to move beyond cotton-centric offerings. This resilience was strengthened by the implementation of several trade agreements, including the India-EFTA TEPA and the India-EU FTA, which have effectively improved preferential market access. Industry analysts note that these pacts are critical for overcoming tariff disadvantages in competitive European and West Asian markets. The focus on value-added manufacturing and the formalization of trade ties with key economic blocs are providing a necessary buffer against global demand fluctuations, observed a senior trade economist.

Also, the extension of export facilitation measures, such as the RoSCTL and RoDTEP schemes, continues to provide essential liquidity support to MSMEs, ensuring the industry maintains its competitive edge despite rising input costs and complex global supply chain dynamics.

India’s textile industry is one of the nation’s largest employers, spanning a vast value chain from fiber cultivation including cotton, silk, and jute to finished apparel and technical textiles. The sector is currently undergoing a transformation supported by the Union Budget 2026-27, which prioritizes scale through mega textile parks, modernized infrastructure, and aggressive skilling initiatives. With a long-term goal of reaching significant export milestones by 2030, the industry is emphasizing technological integration, sustainable manufacturing, and deeper penetration into high-growth markets like Japan, Egypt, and the UK to diversify its global footprint.