Despite the Indian rupee depreciating by nearly 46% against the U.S. dollar over the past decade, India’s textile and apparel exports have recorded only modest growth, highlighting the challenges posed by rising global competition and weak demand.
Industry officials noted that when the rupee was trading at around Rs 65 per U.S. dollar in FY 2014-15, annual textile and garment exports were almost US $30 billion, according to Commerce Ministry statistics.
However, the rupee was at 86.60 on April 2, 2025 and ended 2025-2026 at 94.83 on March 31 this year.
Textile and apparel recorded a 2% year-on-year decline in exports in FY 2025-26 compared with the previous year. Exports were valued at US $35.80 billion in FY 2025-26, down from US $36.61 billion in FY 2024-25.
In essence, exports have shown limited growth, while apparel shipments have been particularly affected, especially over the last couple of years.
According to industry representatives, this impact has been felt more acutely by MSME exporters. Some industry stakeholders believe that, in terms of export volumes, shipments between FY 2014-15 and FY 2025-26 may have declined by nearly one-third.
India’s textile and apparel exports grew at a CAGR of 1.78%, rising from US $29.47 billion in FY 2014-15 to US $35.80 billion in FY 2025-26. Exports peaked at US $37.54 billion in FY 2021-22 before declining by 2% in the last financial year, according to data from the Union Commerce Ministry.
Meanwhile, according to data compiled by the Southern India Mills Association (SIMA) based on government statistics, exports were valued at US $37 billion in FY 2014-15, crossed US $40 billion in FY 2021-22, fell to US $36.44 billion in FY 2024-25, and closed FY 2025-26 at US $35.78 billion.
“When U.S. orders fell in 2025-26, demand from China, Bangladesh, and Sri Lanka improved. Consequently, there was a regional balance to some extent. In terms of volume, exports may have grown marginally between FY 2024-25 and FY 2025-26, despite severe supply chain disruptions,” said Siddhartha Rajagopal, Executive Director of the Cotton Textiles Export Promotion Council.
“Though exports to Africa shot up for a few months last fiscal, it was one of the most uncertain periods for textile and garment exporters. We are in Japan now and talking to buyers,” said K. Sakthivel, Chairman of the Powerloom Development Export Promotion Council.
