The country's textiles and garment exports fell 2.2 per cent to $35.8 billion in 2025-26 due to contraction in shipments of key segments such as cotton, think tank GTRI said on Saturday.
In rupee terms too, the exports fell 2.1 per cent during the last fiscal.
GTRI said the declining pattern is visible across major segments - cotton textiles (- 3.9 per cent), ready-made garments (- 1.4 per cent), and carpets (- 5.3 per cent). Only handicrafts grew slightly by 1.5 per cent during the fiscal.
The contrast between INR and USD growth highlights a deeper structural concern, the Global Trade Research Initiative (GTRI) said.
Its founder Ajay Srivastava said India is exporting more in value terms domestically, but earning fewer dollars globally.
For instance, man-made textiles show a 3.6 per cent rise in INR(Indian Rupee) but a 0.8 per cent decline in dollar terms, and garments show a 2.9 per cent INR increase despite a 1.4 per cent dollar contraction, he said.
This suggests that currency depreciation and not competitiveness is behind the apparent growth, he said adding in real terms, India is losing market share or failing to expand in key global markets, particularly in labour-intensive sectors where it should be gaining ground.
He added this "raises a critical policy question: why are ongoing reforms not translating into export growth? Despite initiatives on production-linked incentives, logistics improvements, and trade facilitation, the data shows stagnation or decline in core segments. The government must urgently investigate bottlenecks".
Published on April 25, 2026