India’s textiles and apparel exports remain below FY22 high

India’s textiles and apparel exports remained below their FY22 high in FY25, reaching US$17 billion against US$14 billion in FY22. Ministry of Textiles data show FY25 exports were US$1 billion, or about 16%, below the peak, while the stated FY30 target is US$100 billion.

Why are India’s textile and apparel exports still below the FY22 high?

India’s textile and apparel exports are below the FY22 high because the US$14 billion achieved in FY22 was followed by three years in a narrower US$16 billion to US$17 billion range. The recorded series shows US$17 billion in FY23, US$16 billion in FY24 and US$17 billion in FY25, compared with the US$14 billion FY22 high. India’s textile and apparel exports therefore recovered US$1 billion from FY24 to FY25, but did not regain the US$1 billion decline immediately after FY22.

The longer record also shows that FY22 was an unusually high point relative to earlier years. Exports were US$17 billion in FY18, US$16 billion in FY19, US$14 billion in FY20 and US$10 billion in FY21 before rising to US$14 billion in FY22. The FY25 result was equal to FY18 and FY23, and US$1 billion above FY19, but it remained US$1 billion under FY22. That pattern means progress toward the FY30 target depends on sustained growth beyond the levels recorded in the three most recent completed financial years.

How large is the gap between India’s textile and apparel exports and the FY30 target?

India’s textile and apparel exports need to add US$13 billion from the FY25 base to reach the US$100 billion FY30 forecast. The target is about 2.7 times the FY25 export value of US$17 billion. On a simple compound-growth calculation across FY25 to FY30, that increase implies annual growth of roughly 22%, rather than the broadly flat outcome between FY23 and FY25.

The target sits within a government roadmap of US$150 billion in textile production and US$100 billion in textile exports by 2030. The source also says the textiles and apparel industry contributed about 2% of India’s gross domestic product and about 11% of manufacturing gross value added, or GVA, as of August 2025. GVA measures the value generated by an industry after deducting intermediate inputs. The export aspiration therefore depends on overseas sales as well as capacity, processing, product development and supply-chain value addition.

The available FY26 figures show early-period activity but are not a full-year comparison. The annual export chart reports US$1 billion for FY26 up to June 2025, while the more detailed April-June 2025 category data report US$1.40 billion of textiles and apparel including handicrafts. The difference in stated totals and labels means the figures should be read according to their specified coverage, rather than treated as directly identical measures. Neither partial-year figure establishes whether FY26 will exceed FY25’s US$17 billion.

Which categories account for India’s textile and apparel exports?

Ready-made garments were the largest category in India’s textile and apparel exports in April-June 2025, accounting for 45% of the US$1.40 billion total including handicrafts. Ready-made garments, or RMG, contributed US$1.193 billion during the quarter. Cotton textiles followed with US$1.860 billion, or 30%, while man-made textiles supplied US$1.167 billion, or 12%.

These three categories accounted for 87% of the April-June 2025 total by the stated shares, indicating that garments and fibre-based textiles drive most reported export value. RMG was US$1.333 billion larger than cotton textiles in that period. A sustained rise toward US$100 billion would consequently require growth in the leading garment and cotton categories, while remaining categories, including handicrafts and technical textiles, would need to contribute to a broader export base.

Technical textiles offer one stated route for diversification. Technical textiles are fabrics and materials designed for functional performance in uses such as automotive, healthcare, construction and industrial applications, rather than primarily appearance. India’s technical-textile market was valued at US$19 billion in 2024 and is projected to reach US$15 billion by 2026. Separately, the National Technical Textiles Mission has a US$10 billion export objective, while current technical-textile exports are stated at US$1 billion to US$1 billion.

What plans could lift India’s textile and apparel exports?

India’s textile and apparel exports could gain from trade access, integrated manufacturing parks and production-linked incentives, but the source presents these as plans and policy mechanisms rather than completed export outcomes. The India-United Kingdom Free Trade Agreement provides duty-free access for 99% of goods, according to the source. It specifically identifies home textiles as a beneficiary because the category had faced a 12% UK tariff, and says India could double its UK home-textile market share within three years.

The UK market was already material for garments, with India exporting US$1.2 billion of garments there in the prior year and ranking among the top four suppliers. The India-UK Comprehensive Economic Trade Agreement is expected to raise technical-textile exports to the UK to US$1 billion by 2030 from US$140 million, supported by 100% duty-free access. The source also states that India is pursuing export-market diversification with the European Union and emerging economies in response to global trade challenges, including recent US tariffs.

Capacity-building measures are designed to affect costs, scale and product capability. The Prime Minister Mega Integrated Textile Region and Apparel, or PM MITRA, scheme aims to establish seven integrated textile parks through 2027-28 with approved investment of Rs. 4,445 crore and expected attracted investment of Rs. 85,370 crore. The Virudhunagar, Tamil Nadu park has a Rs. 1,894 crore plan, is targeted for completion by September 2026, and is expected to attract Rs. 10,000 crore of investment and create one lakh jobs. These projects must be completed, attract the projected investment and secure export orders for their capacity to translate into higher export value.

Conclusion

India’s textile and apparel exports have not yet resumed the FY22 trajectory: FY25 exports of US$17 billion matched FY23 but were US$1 billion below FY22’s US$14 billion. The US$100 billion FY30 target requires a US$13 billion increase from FY25, with ready-made garments, cotton textiles and man-made textiles forming 87% of the reported April-June 2025 export mix by share.

The next evidence to watch is the full FY26 export outcome, since only US$1 billion through June 2025 is shown in the annual series and US$1.40 billion is reported for April-June including handicrafts. Progress will also depend on disclosed implementation milestones: the Virudhunagar PM MITRA park is targeted for September 2026, and the India-UK trade arrangements are intended to improve duty-free market access and lift technical-textile exports by 2030.