Annual Indian Textile & Apparel Industry Report 2026 by Wazir Advisors

Wazir Advisors, a leading management consulting firm focused on the textile and apparel sector, has published its Annual Indian Textile and Apparel Industry Report 2026, offering a detailed review of global and domestic market trends, structural shifts, and the outlook for the year ahead.

The report analyzes the global textile and apparel landscape, noting how geopolitical tensions, tariff imbalances, evolving sourcing strategies, and muted consumer demand shaped industry performance in 2025. The global apparel market reached an estimated US$ 1.9 trillion, with total textile and apparel trade around US$ 900 billion. Global buyers continued to diversify supply chains to reduce reliance on China, while higher US tariffs contributed to a slowdown in apparel imports.

On the domestic front, the Indian textile and apparel market is valued at US$ 194 billion in 2025-26, growing about 5% year-on-year. Domestic consumption continues to be the sector’s backbone, accounting for nearly 80% of the market. Indian exports are estimated at US$ 37 billion, remaining largely flat compared to the previous year. Achieving the government’s US$ 100 billion export target by 2030-31 will require accelerated growth, enhanced market access through free trade agreements (FTAs), and competitiveness in man-made fibres and value-added products.

The report also highlights policy and investment developments in 2025, including strong investment momentum under the PM MITRA program, GST rationalization, extended export incentives, and targeted support for technical textiles. These initiatives helped ease cost pressures and encouraged long-term capacity creation.

Looking ahead to 2026, the study anticipates cautious but improving demand, with domestic consumption providing stability amid uneven global recovery. Greater emphasis on compliance, quality, speed, and operational flexibility is expected to redefine competitiveness. Progress on key FTAs, such as India-UK and India-EU, is projected to expand export opportunities in the medium term.

Commenting on the report, Varun Vaid, Business Director, Wazir Advisors, said:
"2025 marked a period of structural transition for the global textile and apparel industry. Policy shifts, tariffs, and evolving sourcing patterns highlight the need for resilience. For India, growth opportunities remain strong, but future expansion will depend on moving up the value chain, strengthening man-made fibre capabilities, and adopting flexible operating models aligned with buyer expectations."

The report provides comprehensive production and trade data, category-wise performance analysis, state-level export insights, and reviews of leading Indian textile and apparel companies, serving as a strategic reference for manufacturers, brands, policymakers, and investors navigating a competitive global environment.