Strong merchandise growth is extending into textiles, with both cotton and man-made-fibre categories advancing as India strengthens its position in global export markets.
India’s combined merchandise and services exports reached an estimated $82.68 billion in August 2026, up 25.41% year on year, according to the Ministry of Commerce and Industry. Merchandise exports alone jumped 26.12% to $43.81 billion, from $34.74 billion a year earlier.
Services exports were estimated at $38.87 billion, compared with $31.19 billion in August 2025. The ministry notes that August services figures remain estimates because the latest Reserve Bank of India data currently extend only through July.
Cotton textiles join the growth drivers
Exports of cotton yarn, fabrics, made-ups and handloom products increased 13.79% to $1.12 billion, up from $0.99 billion in August 2025. Man-made yarn, fabrics and made-ups also recorded 9.92% year-on-year growth.
The performance places textiles alongside electronics, petroleum products, engineering goods and chemicals among the sectors contributing to August’s export expansion. Electronics rose almost 90%, engineering goods 24.86% and chemicals 16.38%.
Five-month exports accelerate
During April–August 2026/27, total merchandise exports increased 17.85% to $215.91 billion, while combined goods and services exports rose 15.55% to $399.27 billion.
The stronger exports have not eliminated external pressures. Merchandise imports reached $70.67 billion in August, leaving a $26.86 billion goods trade deficit, although that was slightly narrower than a year earlier.
Textile competitiveness gains a stronger backdrop
For Indian textile manufacturers, the August data provide a favourable demand signal just as the industry seeks stronger access to competitively priced cotton and new export markets.
The key test is whether growth extends into garments, home textiles and higher-value man-made-fibre products, rather than remaining concentrated in yarn and fabric categories. Sustained momentum would strengthen the case that India’s textile export expansion is becoming broader and more structurally competitive.
