India’s textile and garment exports to the US plummeted 28.7 per cent year-on-year (y-o-y) in February 2026, marking the sixth consecutive month of decline since the imposition of reciprocal tariffs in August 2025, per an industry analysis.
According to figures collated by industry body Confederation of Indian Textile Industry (CITI), exports to India’s largest market for textiles and garments dropped to $0.63 billion. The downturn reflects a combination of US reciprocal tariffs and waning consumer confidence that has created a challenging environment for global suppliers, industry sources said.
While India’s contraction was significant, largely owing to the 25 per cent reciprocal tariffs (removed after the February 20 Supreme Court verdict and later replaced with a global tariff of 10 per cent) and another 25 per cent penal tariffs for its Russian oil imports (which were removed on February 7), other major exporting countries saw varying results.
Blow to others
China, which was at the receiving end of multiple and fast-changing tariffs in the US through 2025, posted a steeper decline of 45.2 per cent in February 2026, with exports falling to $1.04 billion.
Vietnam, slapped with a lower 20 per cent reciprocal tariff by the US last year, demonstrated notable resilience, posting a 5 per cent growth to reach $1.35 billion in February 2026.
With the landmark US Supreme Court ruling on February 20 striking down the US reciprocal tariffs, exporters welcome the potential reprieve, but remain cautious regarding the speed of a market recovery.
“We missed out on the spring orders. Now summer is also going to be over. Hopefully, we can do some catching up in a couple of months,” a Delhi-based exporter told businessline.
When demand compresses at the top of the chain, no amount of duty advantage saves you, noted Sanjay Jain, Managing Director, TT Ltd. “The American consumer is pulling back. And when demand compresses at the top of the chain, no amount of duty advantage saves you,” Jain pointed out.
India’s goods exports in February 2026 stood at $36.61 billion, marking a marginal 0.8 per cent decline year-on-year from $36.91 billion in February 2025.
In calendar year 2025, India’s exports of textiles and garments posted a marginal 1 per cent increase to $9.68 billion.
Published on April 10, 2026