High US tariffs weigh on India’s textile, apparel exports in January

High tariffs from the United States dampened India's textile and apparel exports, as it has come to see in the Confederation of Indian Textile Industry’s (CITI) latest data report that showed a decline of 3.68% in textile exports and 3.84% fall in apparel exports in January 2026 compared with January 2025. Overall, combined exports of textiles and apparel plunged 3.75% to $3,275.44 million in January 2026, from $3,403.19 million in January 2025.

According to the report, the decline was mainly seen across key textile segments, with exports of cotton yarn, fabrics, made-ups, and handloom products falling 4.15% to $995.58 million in January 2026 from $1,038.69 million in January 2025. Carpet exports also saw a decrease of 12.05% to $118.99 million, while exports of jute-manufactured products, including floor coverings, dropped significantly by 18.92% during the same period. Exports of handicrafts, excluding handmade carpets, also declined 2.70%.

However, exports of man-made yarn, fabrics, and made-ups recorded a slight growth of 1.01%, rising to $430.29 million in January 2026 compared with $425.97 million in January 2025. During the period from April 2025 to January 2026, textile exports declined 2.35%, while apparel exports grew 1.59% compared with the same period of the previous financial year. Cumulative textile and apparel exports during April 2025 to January 2026 registered a marginal decline of 0.65% compared with April 2024 to January 2025.

Recently, the US lowered its tariffs on India to 18% and removed the additional tariffs imposed due to Russian oil imports. Following the announcement, the shares of Textlile and yarn making companies rallied over 10%.