Rupee Depreciation Boosts Textile Exports in 2025-2026 Amidst Market Challenges
India's textile and apparel exports declined by 2% year-on-year in FY2025-2026, totaling $35.80 billion, down from $36.61 billion in FY25. Despite this, a significant rupee depreciation against the US dollar (from 86.60 to 94.83) aided exporters. While orders from the US faced challenges due to tariff threats, demand from China, Bangladesh, and Sri Lanka improved, balancing regional trade. The industry hopes for a market revival with Free Trade Agreements (FTAs) and the end of the US-Iran war, with AEPC planning buyer-seller meets in the EU.
Key Points
- India's textile and apparel exports saw a 2% decline in FY2025-2026, reaching $35.80 billion.
- The depreciation of the Indian rupee against the US dollar significantly aided exporters during this period.
- While US orders faced tariff-related challenges, demand from other Asian markets like China and Bangladesh improved.
- The industry anticipates a revival in the market, driven by Free Trade Agreements and the resolution of the US-Iran conflict.
- AEPC plans to organize buyer-seller meets in EU countries to leverage FTA opportunities.
Exam Facts
- Textile and apparel exports in FY2025-2026: $35.80 billion.
- Rupee exchange rate: 86.60 per dollar on April 2, 2025, ended at 94.83 on March 31, 2026.
- Organization mentioned: Apparel Export Promotion Council (AEPC).
- Executive director of Cotton Textiles Export Promotion Council: Siddhartha Rajagopal.
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