India’s upstream textile exports are accelerating, but a 6.2% first-half decline in garment shipments shows that the country has yet to translate stronger fibre and fabric performance into broad apparel growth.
India’s combined textile and apparel exports increased 17.5% year on year to about $3.08 billion in September 2026, supported by a broad rebound across cotton, man-made textiles and garments.
Textile exports alone jumped 19.9% to $1.95 billion, while apparel shipments rose 13.7% to $1.13 billion, according to Commerce Ministry data compiled by industry sources. India’s overall merchandise exports increased even faster, reaching $44.4 billion in September from $36.08 billion a year earlier.
Upstream sectors drive the half-year
The stronger September performance masks a significant divergence during April–September FY2026/27.
Textile exports increased 9.1% to $10.87 billion, led by cotton yarn, fabrics, made-ups and handloom products, which rose 8.9% to about $6.3 billion. Man-made yarn, fabrics and made-ups increased 4.2% to $2.5 billion.
Apparel exports, however, declined 6.2% to $7.28 billion, limiting total textile and apparel export growth to just 2.4%, at $18.16 billion.
Cotton imports rise sharply
India is simultaneously importing more raw cotton. Cotton raw-material and waste imports surged 63% to around $1.1 billion during April–September, including an 80.9% increase in September alone.
The government has temporarily exempted raw cotton imports from customs duty through October 31, 2026, while also reducing input constraints in the man-made-fibre chain through measures covering PTA and MEG.
Pakistan competitiveness takeaway
India’s performance matters for Pakistan because its competitiveness is strengthening simultaneously in cotton textiles, MMF products and upstream materials.
Pakistan’s recent advantage has been stronger garment growth, but India’s expanding fibre and fabric base, policy support and scale could translate into stronger downstream competition.
Pakistan therefore needs to defend garment momentum while upgrading MMF capability, product development, processing efficiency and fabric innovation. The regional contest is increasingly about who can convert fibre and fabric strength into higher-value finished exports—not simply who can produce the most yarn or cloth.
