India’s Textile & Apparel (T&A) Exports Dip in January Amid Rising US Tariff Pressure.
The Indian textile and apparel sector (T&C)— long regarded as a resilient backbone of the nation’s export economy was tested— experienced a clear cut downturn in export performance in January.

The plausible explanation is; A cumulative effect of global tariff headwinds, shifting demand patterns in key markets, and durable global supply-chain challenges appears to have impeded shipment growth right at the start of the year.

Dr. A Sakthivel, Chairman AEPC met Shri Sanjay Malhotra, Governor, Reserve Bank of India in Mumbai today and requested for a separate export policy for the MSMEs sector. Chairman AEPC proposed that a dedicated Special Interest Package Scheme be introduced for MSMEs. Currently, banks determine lending rates based on their internal policies and balance sheet considerations, leading to inconsistencies and higher borrowing costs.

Chairman AEPC meeting with the RBI Governor assumes important as India has signed FTA with 37 countries the next decade is going to the India’s advantages in apparel and textiles and it is time to leverage this for boosting exports from the country.

FTAs: India’s Textile Gateway to Global Value Chains

India is in a sweet spot 
India’s Free Trade Agreements (FTAs) are increasingly anchoring progressive domestic textile reforms to global market realities. 
Policy interventions; By aligning internal policy improvements with external trade commitments, FTAs are helping Indian textile manufacturers compete on a reasonable ;level playing field internationally allowing Indian exporters integration in the global supply chains against a fractured global.

Laying a reasonable argument l Indian exporters get a relief

India will be the engine to drive world growth: PM
India US trade deal is a fruition of 9 months labour.
What a relief!
‘Tariff concessions Makes India’s Textile Exports More Competitive’
Reassuring pact: Includes yarn forward provision
The India-US trade arrangement will expand cotton demand rather than hurt domestic growers, commerce and industry minister Piyush Goyal said on Friday, while asserting Indian farmers stand to gain from rising textile exports which comes from behind.

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US to Extend Bangladesh-Like Yarn, Cotton Benefits to India

US to Give Yarn, Cotton Benefits to India, as with B’desh: Goyal
India’s textile sector not a looser: Matching Relief l No impact on cotton farmers

Quick data point: As things stand today 
US total cotton exports $5b vs India’s $50b textile exports to US aim going forward.

India’s apparel industry is entering a more demanding phase in 2026. Global buyers are changing how and where they source, and India is being taken more seriously as supply chains diversify beyond a few traditional hubs.
At the same time, trade developments such as the India EU FTA impact on garments and improving market access discussions with the US are creating a stronger opening for India apparel exports. Reducing tariff barriers may help Indian vendors to compete better, but the key advantage is in quality and on-time delivery.

A delegation led by Dr. A. Sakthivel, Chairman, Apparel Export Promotion Council (AEPC), along with key representatives of the Tiruppur textile cluster and industry associations, met Shri Piyush Goyal, Hon’ble Minister of Commerce & Industry, Government of India, and Jitin Prasada, Hon’ble Union Minister of State for Commerce & Industry, on 11 February 2026.

The delegation included Mr. K. M. Subramanian, President, Tiruppur Exporters’ Association (TEA); Mr. Elangovan, Vice President, TEA; P.P.K. Paramasivam, Advisory Committee Member; Mr. R. Ramu, Executive Committee Member, TEA; and representatives from ten textile associations, comprising around 45 members in total.

India’s journey towards Viksit Bharat @2047 is not just about economic growth- it’s about building future-ready skills, inclusive opportunities, and sustainable livelihoods.

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On behalf of the entire textile and apparel industry, AEPC welcomes the India- US joint statement on the trade deal and the revocation of 25 % additional duty imposed earlier pursuant to the Executive Order 14239 with effect from 12:01 EST Feb 7, 2026. 
We warmly extend our sincere gratitude and deep appreciation to the Hon’ble Prime Minister Shri Narendra Modi for his visionary leadership, and to the Hon’ble Minister of Commerce & Industry, Shri Piyush Goyal for his relentless efforts in successfully concluding the landmark trade agreement with the USA. 

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Yes, India’s textile and apparel industry is projected to reach ~$350 billion by 2030, powered by domestic consumption, export diversification, PM MITRA Parks, and the PLI scheme.
But growth headlines don’t tell the full story.

The real story lies in the pressure points beneath the numbers.