TCF POST Analysis
NEW DELHI – India’s Textile and Clothing (T&C) sector experienced starkly different performance trends over the first quarters (April–June) of the 2025–26 and 2026–27 fiscal years. While the first quarter (Q1) in 2025 saw encouraging growth in clothing and a slight dip in textiles, the same period this year saw a reversal, with textiles showing resilience while clothing exports faced a sharp downturn.
Q1 (April–June) 2026 Comparative Performance
The table below shows the year-over-year (YoY) shifts in export values:
| Category | Apr–June 2025 (US$ Mn) | Apr–June 2026 (US$ Mn) | Status |
| Textiles | 4,889.79 | 5,143.60 | Growth: 5.19% |
| Clothing | 4,192.60 | 3,670.95 | Degrowth: -12.44% |
| Total T&C | 9,082.39 | 8,814.55 | Degrowth: -2.95% |
Trend Analysis (YoY)
- The 2025 Growth Narrative: During the April–June 2025 quarter, the sector was driven by a strong performance in clothing, which grew by 8.91% compared to 2024. This growth helped the total T&C sector achieve a cumulative increase of 3.37% over the same period in 2024, reaching a total of US$ 9 billion. Despite a minor decline of -0.94% in textile exports during that specific quarter, the strength in clothing ensured an overall positive trajectory.
- The 2026 Reversal: In a notable shift, the April–June 2026 quarter recorded a 2.95% decline in total T&C exports. This reversal was primarily caused by a significant 12.44% degrowth in clothing exports. Conversely, the textile segment provided a much-needed buffer, rebounding with a 5.19% growth rate.
- Internal Sector Drivers (2026): Within the textile segment during 2026, specific sub-sectors demonstrated high potential:
- Handicrafts: Experienced explosive growth of 36.23%, totaling US$ 542.84 million.
- Cotton Products: Maintained steady demand, growing by 3.71% to reach US$ 2,965.94 million.
- Man-made Fibers: Continued a slow growth trend of 1.08%.
Sectoral Impacts
The divergence between these two years highlights the volatility currently facing the Indian T&C market. While the 2025 fiscal year began with clothing-led optimism, the 2026 fiscal year has been marked by a reliance on textile manufacturing to offset clothing losses. Consequently, the T&C sector’s share of total national commodity exports contracted significantly, falling to 6.82% in Q1 2026 from 8.14% in Q1 2025, even as national commodity exports overall saw double-digit growth.
