India’s textile and apparel export sector has hit a rough patch, with several exporters reporting marked declines in shipments in October. According to a recent survey by the Confederation of Indian Textile Industry (CITI), approximately one-third of exporting firms in the sector have experienced a drop of around 50 % in turnover over the past three months compared to April–June.
While official monthly export data for textile alone in October is still being parsed, this survey signals deep stress in the sector, especially as major export markets impose higher tariffs and global order flows slow. Many exporters point to the rise in tariffs by the United States International Trade Commission (USITC) and weakening consumption in key markets as major drags.
Key-factors behind the drop
- Exporters are citing tariff pressure in major importing markets. The US has raised duties on certain Indian textile exports, increasing the competitive burden.
- Global demand softness: As international retail demand slows, firms dependent on large overseas orders are feeling the chill.
- Supply-chain and input pressures: Rising input costs, manpower shortages, and logistics disruptions are adding to the export bottleneck.
- Concentration risk: With a few large markets absorbing a big chunk of Indian textile exports, any policy or demand shock in that market has an outsized effect.
Implications for the industry and economy
This decline in textile exports comes at a time when the Indian merchandise trade data already shows significant stress — India’s overall merchandise exports for October were reported to be down ~11.8 % year-on-year, leading to a widening trade deficit. The Economic Times
For India’s textile sector — which is a major employer and a key contributor to the nation’s export basket — these export headwinds could translate into:
- Revenue pressure for small and medium textile exporters (SMEs)
- Employment risks, especially in clusters concentrated in states such as Gujarat, Tamil Nadu and Maharashtra
- Motivation for the government to expedite support measures: subsidies, freight incentives, duty reliefs, and improved infrastructure
- Re-examination of export destinations and product diversification to reduce dependence on a few large markets
Outlook & what to watch
- Whether the government introduces fresh incentives targeting export industries (including textiles) in its upcoming announcements.
- How quickly the textile and apparel exporters pivot to newer markets (for example, Southeast Asia, Africa, Latin America) where demand might be less tariff-sensitive.
- The speed at which the industry will adopt higher value-added fabrics, technical textiles and niche apparel segments to maintain competitiveness.
- Monitoring of monthly export datasets (by the Directorate General of Commercial Intelligence & Statistics (DGCIS)) to confirm the full scale of the drop in October for textiles and garments.
Bottom line
India’s textile export engine, which has long been a strong pillar for employment and foreign exchange-earnings, is encountering a noticeable slowdown this October. With about a third of firms reporting dramatic turnover decline, industry stakeholders and policymakers will need to respond swiftly. The sooner the structural shift and market diversification happen, the better the sector’s resilience in the face of global headwinds.
