Textile Exports – January Shipments Dip Amid US Tariff Pressure

Textile Exports – India’s textile and apparel shipments witnessed a modest downturn in January, reflecting the impact of elevated tariffs imposed by the United States that remained effective until early February. Industry data indicates that these trade barriers weighed on export competitiveness, resulting in softer overseas demand during the month.

January Export Performance Slips

Figures released by the Confederation of Indian Textile Industry show that textile exports fell by 3.68 percent in January 2026 compared to the same month last year. Apparel exports also recorded a similar contraction of 3.84 percent over the same period.

Combined exports of textiles and garments stood at 3,275.44 million US dollars in January 2026, down from 3,403.19 million US dollars in January 2025. This represents an overall decline of 3.75 percent year-on-year, underscoring the pressure faced by exporters in a key global market.

Key Segments Report Lower Shipments

The slowdown was visible across several major product categories. Exports of cotton yarn, fabrics, made-ups, and handloom products decreased by 4.15 percent, falling to 995.58 million US dollars from 1,038.69 million US dollars a year earlier.

Carpet exports experienced a sharper drop of 12.05 percent, totaling 118.99 million US dollars in January 2026. Jute manufactured goods, including floor coverings, recorded an even steeper decline of 18.92 percent during the same period. Handicrafts, excluding handmade carpets, also saw shipments contract by 2.70 percent.

Despite the broader slowdown, the segment of man-made yarn, fabrics, and made-ups showed relative stability. Exports in this category edged up by 1.01 percent, reaching 430.29 million US dollars compared with 425.97 million US dollars in January last year. This modest growth offered a small cushion against wider declines.

April–January Trends Show Mixed Picture

Looking at the broader financial year performance from April 2025 to January 2026, textile exports registered a contraction of 2.35 percent compared with the same period in the previous fiscal year. In contrast, apparel exports grew by 1.59 percent, indicating stronger resilience in the garment segment.

However, when textiles and apparel are assessed together, cumulative exports during the April–January period showed a slight overall decline of 0.65 percent compared with April 2024 to January 2025. The mixed performance suggests that gains in apparel were not sufficient to fully offset the weakness in textile categories.

Sector Share in Total Exports Declines

The sector’s contribution to India’s overall merchandise exports also slipped. Textile and apparel exports accounted for 8.96 percent of total exports in January 2026, compared with 9.37 percent in January 2025.

For the April 2025 to January 2026 period, the share stood at 8.13 percent, lower than 8.36 percent during the corresponding period of the previous year. The reduced share reflects both the sector’s challenges and shifting dynamics in the country’s broader export basket.

Raw Material Imports Rise

On the import front, purchases of cotton raw and cotton waste rose noticeably. Imports in January 2026 increased by 12.33 percent year-on-year. Over the April 2025 to January 2026 period, these imports surged by 72.36 percent compared with the previous year.

The sharp rise in raw material imports may point to adjustments in domestic supply chains or higher input requirements within the industry. It also signals that manufacturers are preparing for potential changes in demand conditions.

Outlook After Tariff Easing

Industry observers expect conditions to improve following the reduction of US tariffs on February 7. The easing of trade barriers is likely to enhance price competitiveness for Indian exporters in the American market.

With tariff-related pressures expected to recede, exporters anticipate a gradual recovery in textile and apparel shipments in the coming months. While January’s figures reflect short-term strain, the revised trade environment may provide support to the sector as it navigates global demand fluctuations.