Dear Friends,

As the year 2025 draws to a close, India’s textiles and clothing sector presents a mixed but strategically Even with the negative headlines, global trade has not collapsed but is in transition. The absence of a sharp escalation in retaliatory tariffs has created a more stable environment, allowing trade to continue and rewarding businesses that can adapt to changing conditions.

For India, trade remains a key growth driver. To safeguard its sovereignty, India has avoided plurilateral agreements and instead pursued bilateral and regional FTAs with the UAE, Australia, Oman, EFTA and the UK, with an FTA with the EU imminent, boosting confidence among Indian businesses.

Despite the positive sentiments, the textiles and clothing sector has faced recent pressure, with weak export demand and a marginal decline in shipments. US tariffs have further affected competitiveness, particularly for denim and cotton-based products.

Meeting with the newly appointed Textile Commissioner

I, along with Executive Director, Dr. Siddhartha Rajagopal, met and welcomed the newly appointed Textile Commissioner, Smt. Vrunda Manohar Desai at the Office of the Textile Commissioner in Mumbai on 20th January 2026. 

We took the occasion to brief her about the opportunities and challenges facing the textile sector. We also shared the industry’s expectations in terms of policy support, infrastructure development, market access, and measures to enhance India’s export performance. The meeting was constructive and forward-looking, setting the tone for continued engagement and collaboration between the industry and the Office of the Textile Commissioner.

Meetings with Government Officials

The Government has constituted a Committee, chaired by former Secretary Shri Neeraj Kumar Gupta, along with Shri S. R. Baruah and Shri Vivek Ranjan as Members, to review the notified rates under the RoDTEP scheme. The Committee has been tasked with engaging stakeholders, assessing export conditions and existing rate structures, and recommending appropriate ceiling rates and modalities across product categories, including textiles and clothing. The Committee’s report is expected to be submitted to the Government by 31 March 2026.

To capture ground realities, the Committee held interactive meetings with industry and trade associations in Ludhiana on 26 December 2025 and Ahmedabad on 5 January 2026, facilitated by the Council. These interactions enabled member exporters to share inputs on rate adequacy, classification issues, procedures and global competitive pressures, which will help shape the Committee’s recommendations.

In addition, the Council was part of a delegation that met the Hon’ble Agriculture Minister, Shri Shivraj Singh Chouhan, on 9 January 2026 to seek permanent removal of cotton import duty, citing declining domestic production, rising costs and the resulting loss of export competitiveness.

Heimtextil 2026

Heimtextil 2026, the leading international fair for home and contract textiles, was held from 13–16 January 2026 in Frankfurt, Germany. The fair reflected a sense of measured optimism among Indian participants. To encourage Indian exhibitors and gain first-hand insights into current market trends in the growing home textile sector, a delegation from the Ministry of Textiles, Government of India, led by Shri Akhilesh Kumar, Deputy Director General, along with Shri Purnesh Gururani, Director (Fibre), Ministry of Textiles, and Shri Kishan Singh Ghughtyal, Joint Director, National Jute Board, visited the fair.

On the opening day, the India Pavilion was inaugurated by Ms. Suchita Kishore, Consul General of India, accompanied by members of the Ministry of Textiles delegation. TEXPROCIL was represented by Shri Ravi Sam, Vice Chairman; Dr. Siddhartha Rajagopal, Executive Director; and Shri Rajesh Satam, Joint Director, along with leading TEXPROCIL members and executive heads or representatives of other Export Promotion Councils participating in the fair.

With around 3,000 exhibitors and over 48,000 visitors, Heimtextil 2026 reaffirmed its role as a key platform shaping future textile design and innovation. Over 575 Indian exhibitors, including 117 Council members, participated and valued the exposure to global markets.

Government initiatives

A meeting on “Enhancing Global Competitiveness through Branding in the Indian Textile Sector” was held in hybrid mode under the chairmanship of the Trade Advisor was held on 6th January to discuss strengthening branding as a key driver of India’s global textile and apparel presence. The discussions focused on addressing branding gaps and building strong national and regional identities to improve global visibility and export value realisation.

To support exporters, especially MSMEs, the Government has announced several measures including interest support on export credit, collateral-free guarantees, and the launch of the Market Access Support (MAS) intervention under the Export Promotion Mission to promote overseas market access through trade fairs and Buyer–Seller Meets. Export incentives have also been extended to exports through the postal route via ICEGATE, benefiting MSMEs and e-commerce exporters. 

The Council has submitted constructive suggestions on the MAS guidelines to ensure wider participation, realistic timelines, adequate airfare support and recognition of textiles and clothing as a priority sector, the highlights of which are featured in this Newsletter. The Council has taken up industry concerns related to the newly implemented Labour Codes and welcomes the launch of the TEX RAMPS Scheme, which will support research, monitoring, innovation and capacity building across the textile value chain.

Trade Data

According to quick estimates released by the Ministry of Commerce & Industry, exports of cotton yarn, fabrics, made-ups and handloom products declined by 3.96% in December 2025 compared to the same month last year. On a cumulative basis, exports of cotton textiles during April–November 2025 fell by 3.35%, reflecting the impact of subdued global consumption, trade frictions and pricing pressures through much of the year.

During April–November 2025, textile exports declined by 2.19%, while apparel exports recorded a growth of 2.36%, resulting in a marginal overall contraction of 0.26% in combined textiles and apparel exports. The decline in December points to short-term weakness, while the cumulative fall indicates a prolonged slowdown in cotton textiles. Overall exports remained largely flat, indicating resilience but limited growth momentum. 

Kasturi Cotton Bharat

Under the national branding initiative Kasturi Cotton Bharat, the Council continues to strengthen India’s premium cotton identity through focused outreach and awareness programmes in major Cotton growing areas and clusters. Detailed accounts of these initiatives have been featured in the Newsletter.

I earnestly encourage the user industry to actively embrace and promote the Kasturi Cotton brand across the value chain, thereby enhancing the global brand equity of India’s cotton textiles.

Way Forward

Friends, going forward, it is recommended that exporters focus on diversifying into new markets and expanding product lines into segments such as tents, sleeping bags and similar products, while making effective use of free trade agreements to grow our share in the global trade. Feedback from fellow exporters at Heimtextil 2026 indicates encouraging order enquiries from markets such as UK, Poland, Russia, Norway and Switzerland. To align with evolving global demand and succeed in the period ahead, it will be essential to manage expectations carefully, consistently over-deliver on commitments, and ensure timely and reliable fulfilment of orders.

:: TEXPROCIL ::