India’s textile and apparel export sector is staging a significant late-year recovery, driven overwhelmingly by the value-added apparel segment. While the cumulative exports for the fiscal year (April-November ’25) remain marginally in the red at -0.35 per cent compared to the previous year, November ’25 shipments delivered a powerful monthly growth of 9.40 per cent overall. This turnaround was spearheaded by Apparel, which grew by an impressive 11.27 per cent in November, easily surpassing the 7.99 per cent rise in the base textiles segment. This monthly data offers much-needed optimism following a period where cumulative Textiles exports recorded a -2.27 per cent degrowth.
Value-addition and market diversification drive growth
The robust performance in Ready-Made Garments (RMG) highlights the success of product value-addition initiatives. This segment, which saw cumulative growth inch up to 2.28 per cent (April-November ’25), is benefiting from the government’s comprehensive strategy to diversify beyond traditional Western buyers. Data shows strong momentum in non-traditional markets like Hong Kong (+69 per cent) and Egypt (+27 per cent) in H1, FY26. According to the Confederation of Indian Textile Industry (CITI), the focus is now on manufacturing high-value man-made fibre (MMF) apparel and technical textiles, aligning with the revised Production Linked Incentive (PLI) Scheme. Amendments in October ’25 reduced the minimum investment limit by 50 per cent and lowered the incremental turnover criteria, aiming to boost investment by Rs 2 lakh crore and reduce entry barriers for MSMEs seeking to scale up in these advanced segments.
The structural shift is towards future-ready textiles. The Technical Textiles segment, which is supported by the PLI scheme and the establishment of PM-MITRA Parks, represents a major opportunity. These products, used in automotive, healthcare, and industrial applications, are projected to grow substantially. This move up the value chain, away from basic cotton yarn, is key to sustained growth. A strong signal of commitment is the India-UK Comprehensive Economic and Trade Agreement (CETA), signed in July 2025, which aims to reduce trade barriers and enhance market access, a crucial step for achieving the sector’s long-term export goals.
