India’s textile exports, including handicrafts, increased by 2.1% in the financial year 2025-26, reaching ₹3.16 lakh crore compared to ₹3.09 lakh crore in the previous year, according to data released by the Ministry of Textiles on Wednesday. This growth occurred despite significant challenges posed by steep US tariffs, which were implemented from April 2025 and escalated to 50% by late August 2025.

The modest expansion demonstrates the sector’s resilience amid a complex global trade environment. Ready-made garments (RMG), the largest contributor to textile exports, grew by 2.9% to ₹1.39 lakh crore, underscoring continued overseas demand for this segment. In contrast, traditional textile categories such as cotton yarn, fabrics, made-ups, and handloom products showed minimal growth, edging up 0.4% to about ₹1.02 lakh crore, reflecting subdued momentum in these conventional areas.

Meanwhile, higher-value and non-traditional textile segments experienced relatively stronger gains. Man-made textiles, which include synthetic and blended yarns and fabrics, increased by 3.6% to ₹42,688 crore, signaling a shifting preference in global markets toward these products. The handicrafts sector, excluding handmade carpets, registered the highest growth among major categories, rising 6.1% to ₹15,855 crore, indicating growing international interest in artisanal and niche products.

The Ministry noted that export growth was observed in more than 120 destinations from April 2025 to February 2026 compared to the previous year, reflecting wider geographic diversification. Key markets showing notable export increases included the UAE (22.3%), UK (7.8%), Germany (9.9%), Spain (15.5%), Japan (20.6%), Egypt (33.8%), Nigeria (21.4%), Senegal (54.4%), and Sudan (20.6%).

Officials attributed the sector’s performance partly to government support through export facilitation measures and remission schemes, such as the extension of the Rebate of State and Central Taxes and Levies, which helped mitigate some trade barriers. Despite the US imposing reciprocal tariffs that significantly increased import duties on most Indian textile products, India was able to maintain overall export growth, highlighting the sector’s adaptability and sustained competitiveness in diverse global markets.