India boosts textile exports despite global headwinds; reach expands to 111 markets

• Exports rise 10% in value terms, driven by RMG, jute segments
• Rising global demand to prop up cotton tags, lift mill utilisation

India’s textile and apparel exports, including handicrafts, showcased remarkable resilience during the first half of FY’26, reflecting the sector’s adaptability amid global inflation, high shipping costs, and trade policy shifts. As per data released by the Ministry of Textiles, exports grew by 0.1% y-o-y in April-September 2025, but more notably, the spread of export destinations widened to 111 countries, indicating successful diversification under the government’s “Make in India” and “Aatmanirbhar Bharat” initiatives.

These 111 markets together contributed USD 8,489 million, compared to USD 7,718 million a year ago — an increase of 10% in value and USD 770 million in absolute terms. Among the top-performing destinations were the UAE (+14.5%), Japan (+19%), France (+9.2%), Spain (+9%), Germany (+2.9%), and the UK (+1.5%). Emerging growth markets included Egypt (+27%), Saudi Arabia (+12.5%), and Hong Kong (+69%), underscoring India’s growing footprint beyond traditional buyers such as the US and EU.

Implications for cotton, yarn market

From a cotton trade perspective, this expansion of textile exports provides a positive demand signal for Indian spinners and mills. The key growth sectors — ready-made garments (RMG) with 3.42% growth and jute with 5.56% growth — both rely heavily on stable cotton yarn and fabric supplies. As India faces lower domestic cotton output (305 lakh bales) for 2025-26 and record imports (4.5 million bales) due to duty exemptions, mills are expected to sustain high utilisation levels through imported fibre to meet global apparel orders.

The diversification of export markets also mitigates the risk from sluggish demand in traditional Western economies. With orders increasing from the Middle East and Asia, domestic cotton consumption — currently estimated at 300 lakh bales — could gradually recover by Q2FY’26. For traders, this shift presents an opportunity to capitalise on strong yarn export margins and potential stability in domestic cotton prices, supported by mill demand.

Outlook

India’s textile export performance reinforces the underlying strength of its cotton value chain, even amid volatile global dynamics. With a broader market base, robust policy support, and steady demand for Indian cotton-based products, the country’s cotton sector is poised for a balanced yet optimistic phase in early 2026. For cotton traders and manufacturers, the key will be tracking export order flows and managing import-driven price parity, as the global trade environment continues to evolve.