Executive Summary
This report details the growth of India's textile and apparel exports, which reached ₹3,25,339 crore in 2025–26 with a CAGR of 4.5% since 2019. It outlines government initiatives to bolster competitiveness through fiscal relief, infrastructure development, and sustainability programs. Key deadlines include the expiration of cotton customs duty exemptions on 31 October 2026 and the extension of export tax remission schemes until 30 September 2026.
Key Points / Main Content
Export Performance and Regional Data
Sector Growth: Exports grew by 1.8% in the last year, reaching more than 100 global destinations.
Leading Regions: Tamil Nadu and Gujarat are the top exporting states; Tiruppur is the leading district, contributing ₹38,677 crore in 2025–26.
MSME Health: Of the 3.6 million registered MSMEs, only 0.32% (7,894 units) shut down between 2023 and 2026, resulting in 59,374 lost jobs.
Fiscal and Trade Policy
Duty Exemptions: Temporary customs duty exemptions are in place for cotton (under Heading 5201) until 31 October 2026 and for man-made fibre (MMF) inputs like PTA and MEG.
Export Incentives: The RoDTEP and RoSCTL schemes have been extended to 30 September 2026 to support exporter liquidity.
Trade Agreements: India has 16 active FTAs, including the India-UK CETA; negotiations with the EU have concluded, and a new FTA has been signed with New Zealand.
Infrastructure and Technology Schemes
Cluster Development: Older schemes like SITP and IPDS are being subsumed under the Textile Cluster Development Scheme (TCDS) to complete 50 sanctioned projects.
Modernization: The Amended Technology Upgradation Fund Scheme (ATUFS) is currently clearing committed liabilities for units generated up to March 2022.
Strategic Initiatives: Ongoing implementation of PM MITRA Parks, the PLI Scheme for Textiles, and the National Technical Textiles Mission (NTTM).
Sustainability and Circularity
Tex-Eco Initiative: Announced in the 2026-27 Budget to promote textile waste management, recycling, and circular economy technologies.
Regulatory Framework: An ESG Task Force has been formed to address sustainable production and international quality certifications.
Global Partnerships: Collaborative projects with UNIDO and UNEP aim to eliminate hazardous chemicals and implement Life Cycle Assessment (LCA) methodologies.
Impact Analysis
Textile and Apparel ExportersImpact: Beneficiaries of extended tax remissions (RoDTEP/RoSCTL) and reduced input costs through customs duty exemptions on cotton and MMF.
Action Required: Must align production with new ESG standards and utilize duty exemptions before the Q3 2026 deadlines.
Micro, Small, and Medium Enterprises (MSMEs)Impact: Access to capacity building via the SAMARTH scheme and interest subventions under the Export Promotion Mission.
Action Required: Continue registration on the Udyam Portal to maintain eligibility for government support and credit schemes.
State Governments and Industrial ParksImpact: Significant central funding (over ₹1,800 crore for SITP) provided to states like Gujarat, Maharashtra, and Tamil Nadu for infrastructure.
Action Required: State agencies must ensure the timely completion of ongoing projects under the TCDS umbrella and the Integrated Processing Development Scheme (IPDS).
Key Entities Referenced
Ministry of Textiles: The primary government body responsible for formulating policy, planning, and supporting the development and export growth of the textile and apparel industry.
Textile Cluster Development Scheme (TCDS): An umbrella scheme designed to enhance the competitiveness of the textile industry by facilitating environmentally friendly processing standards and supporting infrastructure projects.
PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks Scheme: A major initiative aimed at strengthening the sector's competitiveness by developing large-scale, integrated textile parks across the country.
Remission of Duties and Taxes on Exported Products (RODTEP) Scheme: An export support measure extended by the government to neutralize the burden of duties and taxes on exported textile goods.
Udyam Portal: The official registration platform used by the government to track and support Micro, Small, and Medium Enterprises (MSMEs) active in the textile sector.
Ministry of Textiles
GARMENT EXPORTS
प्रव तथ: 11 AUG 2026 1:34PM by PIB Delhi
India’s exports of textiles and apparel, including handicrafts, registered a Compound Annual Growth Rate
(CAGR) of about 4.5% during the period from 2019–20 to 2025–26, increasing from ₹2,49,250 crore in
2019–20 to ₹3,25,339 crore in 2025–26. The year-wise details of exports of textiles and ready-made
garments including from 2019-20 to 2025-26 are mentioned below:
India's textile & apparel including handicrafts exports (Value in INR Crore)
Year 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
Export Value 249250 233304 331330 294289 297004 319573 325339
Source: DGCIS, Provisional Data (Rounded Off)
The detail of export value from the major exporting States, is given below. Textile and readymade
garments, including handicrafts, were exported from 548 districts across the country in 2025-26. The top
ten textile and readymade garment exporting districts, including handicrafts, during 2025–26 were
Tiruppur (₹38,677 crore), Gautam Buddha Nagar (₹21,095 crore), Bengaluru Urban (₹16,205 crore),
Gurugram (₹15,104 crore), Mumbai (₹12,479 crore), Panipat (₹11,448 crore), Surat (₹10,478 crore),
Ahmedabad (₹9,366 crore), Ludhiana (₹7,099 crore) and Thane (₹6,321 crore).
(Source: DGCIS, Provisional Data (Rounded Off))
The Government remains engaged with various stakeholders, including Export Promotion Councils
(EPCs) and industry associations, on assessment of the impact on competitiveness of the sector. Despite
challenges, India’s exports of textiles and apparel, including handicrafts, stood at ₹3,25,339 Crore in
2025–26, registering a growth of 1.8 per cent over ₹3,19,573.2 Crore in 2024–25. Export growth was
recorded in more than 100 destinations during the year (Source: DGCI&S). The Government has taken
several measures to support the industry including temporary exemption from customs duty on import of
Cotton falling under Customs Tariff Heading 5201 from 1 June to 31 October 2026; the temporary
exemption from customs duties on key inputs in the man-made fibre (MMF) value chain, including
Purified Terephthalic Acid (PTA) and Mono-Ethylene Glycol (MEG); rationalisation of GST rates in the
manmade fibre (MMF) value chain etc.
s. on 31.03.2026, a total of 36,00,012 Micro, Small and Medium Enterprises (MSMEs) were
registered and active on the Udyam Portal in the textile sector (NIC 2-digit codes 13 and 14) since
the portals launch on 01.07.2020. During the period from 01.04.2023 to 31.03.2026, a total of
24,73,634 MSMEs were registered in the textile sector (NIC 2-digit codes 13 and 14) on the portal,
while 7,894 MSME units were reported to have shut down due to various reasons during the same
period. Thus, the number of MSMEs reported as shut down constitutes only around 0.32% of the
total MSMEs registered during the last three years. State-wise details of MSMEs in the textilessector reported as shut down and the corresponding impact on employment as reported on the
Udyam Registration Portal during the period from 01.04.2023 to 31.03.2026, are given below.
In order to facilitate the Indian Textile Industry to become globally competitive using environmentally
friendly processing standards and technology, the Ministry implemented Scheme for Integrated Textile
Park (SITP) upto 31.03.2021; however, the Scheme has now been subsumed under the umbrella Scheme
of Textile Cluster Development Scheme (TCDS) for completing ongoing projects only. Under the scheme,
50 projects have been sanctioned of which 33 projects have successfully been completed. Further, in order
to facilitate the textile industry to meet the required environmental standards and to support new Common
Effluent Treatment Plants (CETP)/ upgradation of CETPs in existing processing clusters as well as new
processing parks specially in the Coastal Zones, the Ministry implemented Integrated Processing
Development Scheme (IPDS) upto 31.03.2021; however, the Scheme is now being implemented for
completing ongoing projects only. The details of fund utilisation under SITP and CPCDS component of
TCDS and IPDS are given below.
In addition, Amended Technology Upgradation Fund Scheme (ATUFS) was launched in January 2016
which was valid till 31st March, 2022. Currently only committed liabilities are being cleared under
ATUFS for UIDs generated till 31.03.2022. During the period from 2016-17 to 2025-26, under the scheme
(ATUFS), an expenditure of ₹8611.82 Crore has been incurred.
The Government has undertaken several initiatives to help textile units meet international quality,
environmental and sustainability standards, including the Tex-Eco Initiative announced in the Union
Budget 2026-27 to promote circular economy technologies and textile waste management, recycling,
sustainable packaging, and the development of recycled fibers and high-value products across India. An
Environment, Social, and Governance (ESG) Task Force has been constituted to address issues related to
sustainable production, certifications, and exports while facilitating industry knowledge sharing through
platforms like Circular Samvaad and the Cluster Exchange Mechanism. The Textiles Committee has
signed an MoU with the Standing Conference of Public Enterprises (SCOPE) and Government e-
Marketplace (GeM) to promote the procurement of upcycled products." Other Global pilot projects
include (i) Eliminating Hazardous Chemicals from Textile Fashion Supply Chain, implemented in
partnership with UNIDO and funded by the Global Environment Facility (GEF) to eliminate hazardous
chemicals and reduce greenhouse gas emissions and waste in the fashion supply chain; and (ii)
Accelerating the Transition of Indian Textile Sector towards Circularity (In-Tex India), implemented in
collaboration with UNEP to scale circular business models using Life Cycle Assessment (LCA) and
Product Environmental Footprint (PEF) methodologies.
The Government has implemented several schemes and undertaken various initiatives to strengthen
competitiveness of the Textile and Apparel sector. These include the PM Mega Integrated Textile Regions
and Apparel (PM MITRA) Parks Scheme, the Production Linked Incentive (PLI) Scheme for Textiles, the
National Technical Textiles Mission (NTTM), SAMARTH—Scheme for Capacity Building in the Textile
Sector, and the launch of various components including Market Access Support and interest subvention
under the Export Promotion Mission etc. On exports, the government has extended the Remission of
Duties and Taxes on Exported Products (RODTEP) Scheme & Rebate of State and Central Taxes and
Levies (RoSCTL) Scheme up to 30 September 2026; and launched the Resilience & Logistics Intervention
for Export Facilitation (RELIEF) Scheme etc. The Government has also adopted a focused export-
promotion and market-diversification strategy covering 40 priority countries. Sixteen Free Trade
Agreements (FTAs), including the India–United Kingdom Comprehensive Economic and Trade
Agreement (CETA), are already in force. In addition, the FTA negotiations with the European Union (EU)
have been successfully concluded, while India has signed an FTA with New Zealand. These agreements
provide an opportunity for Indian textiles and apparel sector to enhance their exports and undertake
market diversification.Collectively, these measures have helped diversify export markets, improve market access and quality
standards and enhance the competitiveness of Indian exporters, particularly Micro, Small and Medium
Enterprises (MSMEs).
India's state-wise textile & apparel including Handicrafts exports (value in INR Crore)
Sl State Name 2019- 2020- 2021- 2022- 2023- 2024- 2025-26
No. 20 21 22 23 24 25
1 TAMIL NADU 49421 45923 65008 64162 59370 67863 68792
2 GUJARAT 36405 37501 54858 40466 47603 50150 50947
3 HARYANA 23246 22168 31444 29871 30156 34843 35060
4 MAHARASHTRA 30433 29629 39911 32102 35004 33611 32842
5 UTTAR PRADESH 22330 20157 27221 29593 28464 31804 34829
6 KARNATAKA 17521 14172 20391 23350 22669 23961 24890
7 RAJASTHAN 9759 9056 13823 12702 13448 14560 15009
8 PUNJAB 10753 9719 15739 12043 12421 11820 12306
9 MADHYA 8026 9891 15711 10798 11510 11749 11752
PRADESH
10 WEST BENGAL 7279 6672 9449 9704 9001 9629 9849
REST OF THE 34079 28417 37775 29499 27356 29582 29063
STATES
GRAND TOTAL 249250 233304 331330 294289 297004 319573 325339
Source: DGCIS, Provisional Data (Rounded Off)
State Wise Total MSMEs Shut Down and Employment recorded against these Units on Udyam
registration portal during 01/04/2023 to 31/03/2026 in Textile Sector(NIC 2 Digit 13 & 14)
Sl. State Total number of Employment
No. MSME unites1 ANDAMAN AND NICOBAR ISLANDS 7 10
2 ANDHRA PRADESH 283 1330
3 ARUNACHAL PRADESH 4 14
4 ASSAM 79 1425
5 BIHAR 209 1299
6 CHANDIGARH 5 13
7 CHHATTISGARH 40 177
8 DELHI 54 358
9 GOA 13 50
10 GUJARAT 1402 9038
11 HARYANA 108 823
12 HIMACHAL PRADESH 32 76
13 JAMMU AND KASHMIR 174 886
14 JHARKHAND 74 380
15 KARNATAKA 467 3306
16 KERALA 235 844
17 LADAKH 6 27
18 LAKSHADWEEP 0 0
19 MADHYA PRADESH 162 709
20 MAHARASHTRA 1276 6628
21 MANIPUR 44 306
22 MEGHALAYA 0 023 MIZORAM 1 4
24 NAGALAND 3 38
25 ODISHA 150 1670
26 PUDUCHERRY 19 89
27 PUNJAB 87 590
28 RAJASTHAN 552 2429
29 SIKKIM 1 4
30 TAMIL NADU 1309 17869
31 TELANGANA 329 2283
32 THE DADRA AND NAGAR HAVELI 6 19
AND DAMAN AND DIU
33 TRIPURA 1 35
34 UTTAR PRADESH 440 4161
35 UTTARAKHAND 33 648
36 WEST BENGAL 289 1836
Total:- 7894 59374
( Source DCMSME)
Scheme State Approved Released & Utilized
GoI Share GoI share (₹ in
crore)
(₹ in crore)1.Textile Cluster Development Scheme Andhra 160.00 114.00
(TCDS) Pradesh
Assam 40.00 20.00
i. Scheme for Integrated Textile Park
(SITP)
Gujarat 516.00 432.00
Himachal 38.76 34.88
Pradesh
J&K 39.70 35.73
Karnataka 32.01 32.01
Maharashtra 451.47 404.45
Punjab 116.56 112.00
Rajasthan 104.06 100.06
Tamil Nadu 222.65 147.95
Telangana 49.69 46.08
West Bengal 68.06 56.86
TOTAL 1838.96 1536.02
ii.ComprehensivePowerloom Cluster Tamil Nadu 40.05 40.05
Development Scheme (CPCDS)
Maharashtra 50.00 44.55
Gujarat 50.00 29.06
Karnataka 29.51 1.09
TOTAL 169.56 114.752.Integrated Processing Development Gujarat 73.19 54.84
Scheme
Rajasthan 273.09 159.85
(IPDS)
TOTAL 346.28 214.69
This information was provided by THE MINISTER OF STATE FOR TEXTILES SHRI PABITRA
MARGHERITA in a written reply to a question in Lok Sabha today.
*****
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(Lok Sabha US Q3864)
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