India’s apparel exports registered modest growth of 1.5% year-on-year in dollar terms during April–December FY 2025–26, according to a report released by ICRA on Tuesday. The agency attributed the subdued performance primarily to tariff-related pressures in the United States, which dampened demand.
In rupee terms, however, export growth was relatively stronger at 5.8%, supported by the depreciation of the Indian currency over the period.
The report noted that exports to the United States declined by approximately 6% in dollar terms during the first nine months of FY 2025–26, reflecting the continued impact of tariffs on trade flows. This weakness was partially offset by increased shipments to alternative markets, including Europe and the UAE.
India’s total apparel exports stood at around US $16 billion in FY2024–25, accounting for nearly 3% of global trade. The United States and Europe—including the European Union and the United Kingdom—remain the country’s principal export destinations, contributing roughly 32–33% and 31%–32% of shipments, respectively.
By contrast, import volumes in the United States declined by 3%–4% during the same period, underscoring the adverse effects of tariff measures on demand, the report added.
