India’s RMG exports show mixed trend in January; AEPC seeks MSME policy support

The Apparel Export Promotion Council (AEPC) released an update on India’s Ready-Made Garment (RMG) export performance, pointing to resilience alongside ongoing global market challenges. The council said recent data reflects short-term pressures as well as longer-term recovery signals.

AEPC reported that RMG exports in January 2026 declined by 3.8% compared with January 2025. At the same time, exports increased by 7.2% over January 2024, indicating underlying recovery despite continued global headwinds.

For the cumulative period from April–January 2025-26, RMG exports reached USD 13,129.1 million. This represents a growth of 1.6% compared with April–January 2024-25 and an increase of 13.3% over April–January 2023-24.

Commenting on the figures, Dr. A. Sakthivel, Chairman, AEPC, said the temporary decline in January exports was largely due to high US tariff pressures and persistent global volatility, which affected order flows in key markets. He noted that several exporters attempted to retain buyers by offering discounts of up to 20%, but tariff levels rising to nearly 50% reduced competitiveness and led to a loss of orders to alternative sourcing destinations.

Dr. Sakthivel stated that India has signed Free Trade Agreements (FTAs) with 37 countries, expanding market access for the textile and apparel sector. He added that the next decade offers an opportunity to use India’s manufacturing base, workforce, and integrated value chain to support export growth.

Addressing issues faced by exporters, particularly Micro, Small and Medium Enterprises (MSMEs), Dr. Sakthivel said operational and regulatory difficulties remain, especially in dealings with banks, export finance mechanisms, and compliance systems. He said MSMEs require focused policy measures to improve competitiveness and maintain growth momentum.

AEPC said that the Chairman met the Reserve Bank of India (RBI) Governor and proposed a dedicated export policy for MSMEs, including a Special Interest Package Scheme to improve access to finance.

To ease export finance constraints, Dr. Sakthivel requested that the Interest Equalisation Scheme be raised from 2.75% to 5% for manufacturing exporters. He also asked for the removal of the current ₹50 lakh cap and suggested a graded structure linked to turnover and export performance to expand eligibility.

“The Indian apparel industry remains fundamentally strong and adaptable. With the right policy support, especially for MSMEs, and by leveraging new trade agreements, the sector is well-positioned to achieve sustainable and inclusive growth,” he added.