India’s Apparel Exports Take a Hit: 15% Drop in Q2 FY26
Based on reports from the Confederation of Indian Textile Industry (CITI), India’s apparel exports declined by 14.8% during the second quarter (July–September) of the financial year 2025–26, falling to $3.09 billion.
The main drivers of this drop were weakening global demand and new U.S. tariffs, which have also intensified competition from rival nations like Bangladesh and Vietnam
India’s apparel exports have declined by 14.8% in Q2 FY26 (July-September) due to softened global demand and reduced orders from key markets.
Key Statistics:
Q2 FY26 Exports: $3.09 billion (down 14.8%)
H1 FY26 Growth: 3.4% (reflecting earlier recovery)
Full-Year Forecast: 6-9% decline expected due to tariffs and global headwinds
Reasons Behind the Decline:
Rising US Tariffs: Increased costs affecting Indian exports
Low-Cost Competition: Tough competition from producers like Bangladesh and Vietnam
Weaker Consumer Spending: Reduced demand in key markets like the US and EU
Impact on Investors:
Export-Focused Companies: Lower margins and weaker cash flows expected
Textile and Apparel Stocks: Pressure on stocks unless demand recovers or new markets are tapped
Diversification Need: Highlights India’s dependence on few export destinations
Outlook:
The future looks challenging for India’s apparel exports unless global demand improves or companies diversify their markets. This may affect companies relying heavily on exports.
Team- Intellex Strategic Consulting Private Limited
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