Indian Textile and Apparel Industry Report 2026 by Wazir Advisors

Wazir Advisors has published its Annual Indian Textile and Apparel Industry Report 2026, providing an overview of global and domestic industry performance, major structural developments, and near-term expectations for the sector.

The report evaluates the global textile and apparel environment, outlining how geopolitical factors, tariff imbalances, shifting sourcing strategies, and muted consumer demand influenced industry outcomes during 2025. It estimates the global apparel market at approximately US$ 1.9 trillion in 2025, while global textile and apparel trade reached nearly US$ 900 billion. The analysis notes continued diversification of sourcing by international buyers as reliance on China declined, alongside the impact of higher US tariffs, which contributed to slower growth in apparel imports.

Within India, the textile and apparel market is assessed at US$ 194 billion in 2025–26, reflecting year-on-year growth of around 5%. The domestic market continues to account for nearly 80% of total industry value, underscoring its role as the sector’s primary demand driver. India’s textile and apparel exports are estimated at US$ 37 billion in 2025–26, remaining broadly unchanged from the previous year. The report observes that meeting the Government of India’s US$ 100 billion export target by 2030–31 will require faster export growth, expanded market access through free trade agreements, and stronger competitiveness in man-made fibre and value-added product segments.

The study also reviews policy and investment developments during 2025, highlighting strong investment commitments across the industry, supported by progress under the PM MITRA scheme. Measures such as GST rationalisation, the extension of export incentive programmes, and focused support for technical textiles are cited as factors helping to ease cost pressures and promote long-term capacity expansion.

Looking ahead to 2026, the report projects a cautious improvement in demand conditions. While global consumption recovery is expected to remain uneven, domestic demand in India is likely to offer relative stability. The report notes that increasing focus on compliance, quality, operational flexibility, and speed to market is expected to reshape competitiveness. Progress on key free trade agreements, including India–UK and India–EU, is anticipated to support export growth over the medium term.

Commenting on the report, Varun Vaid, Business Director, Wazir Advisors, said,
“2025 was a year of structural transition for the global textile and apparel industry. Policy shifts, tariff actions, and changing sourcing strategies have reinforced the need for agility and resilience. For India, the opportunity remains strong, but growth will increasingly depend on moving up the value chain, strengthening man-made fibre capabilities, and building flexible operating models that align with evolving buyer expectations.”

The report also features detailed production and trade data, category-wise performance assessments, state-level export analysis, and a review of leading Indian textile and apparel companies, positioning it as a reference resource for industry stakeholders.