India's textile exports to 111 countries record growth
By yash chouhan 2025-11-27 16:01:00
India's Textile Exports to 111 Countries Record Growth:
India's textile exports to 111 countries recorded year-on-year growth between April and September 2025, reflecting a significant shift towards reducing over-reliance on the US market. According to the latest Industry Insights Report on India's textile sector by Rubix Data Sciences, government-supported imports of Indian textiles have increased by more than 50 percent in 40 priority countries, with 38 markets registering growth of more than 50 percent.
A major catalyst for this diversification is the India-UK FTA signed in July 2025, which provides duty-free access to 99 percent of India's textile and clothing exports. This special access is expected to increase India's textile exports to the UK by 30-45 percent by 2030 and could help the country double its home textile market share in the UK within three years.
India's textile sector is entering a new phase of expansion, but it is facing one of the most turbulent times globally in years. Heavy US tariffs of up to 50 percent on Indian goods have raised the effective rate on Indian textile and clothing imports to the US to 63.9 percent. This has encouraged the industry to expand its global presence and gain new momentum in new markets.
India's growing global presence is supported by strong domestic fundamentals. The textile and clothing sector, valued at $174 billion in FY25, is projected to reach $350 billion by FY31, growing at a CAGR of 12.4 percent. However, sustaining this growth will require a more stable global trade environment, especially in India's largest export market, the US.
Nevertheless, the sector is undergoing a major transformation, driven by the rapid rise of technical textiles, its fastest-growing segment. This market is projected to grow from $29 billion in 2024 to $123 billion by 2035, driven by applications in healthcare, mobility, defense, and infrastructure. Technical textile exports reached $2.9 billion in FY25, growing at an 8% CAGR, with packtech and indutech together accounting for nearly two-thirds of the export volume.
Meanwhile, India's domestic fashion consumption landscape is also rapidly changing. Online clothing sales are projected to grow 17% in FY25 and maintain a 15% CAGR until FY30, with quick commerce also entering the fashion category. India remains an attractive market for global retailers: the report states that 27 international brands entered the country in 2024, double the number from the previous year.
The number of DPIIT-recognized textile startups increased 3.7 times between 2020 and 2024, while apparel-brand startups raised $120 million in 2025 (as of October), a 2.6 percent year-on-year increase.
As the industry is the second-largest employer in the country, the government is determined to mitigate the impact of global fluctuations through several supportive measures in the second half of 2025. These include the cancellation of QCOs on key polyester raw materials, which had increased costs by approximately 30 percent, a ₹450 billion export support package, and the extension of duty-free cotton imports until December 31, 2025. These steps come at a time when domestic cotton production has declined sharply, from 38.6 million bales in 2014-15 to 29.425 million bales in 2024-25, and imports have nearly doubled during the same period. Clarity on BIS contamination standards is still pending and remains a concern for exporters.
"India's textile sector is going through its most difficult phase in years," said Mohan Ramaswamy, co-founder and CEO of Rubix Data Sciences. "Tariffs, changing global demand, sustainability pressures, and fierce competition are changing the landscape. But the industry is responding quickly, expanding into new markets, investing in technology, moving up the value chain, and embracing circularity. At Rubix, our mission is to provide businesses with the intelligence they need to navigate these fluctuations, manage risks, and make confident decisions in a rapidly changing global economy."
As India moves towards becoming a more globally competitive textile hub, Rubix Data Sciences says continued investment in innovation, technology adoption, raw material security, and sustainable manufacturing will be crucial. With growing export diversification, increasing investor interest, and the rise of digital retail channels, India's textile industry is well-positioned to drive the next phase of the country's manufacturing-led growth.
