Wazir Advisors Survey Highlights Optimism in Indian Textile Industry but Mixed Views on USD 100 Billion Export Goal
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Bharat Tex 2026 Sentiment Barometer Finds Strong Confidence in Growth, While Export Target and EU Compliance Readiness Draw Cautious Responses
A new Indian Textile and Apparel Industry Sentiment Barometer released by Wazir Advisors indicates that industry participants remain optimistic about the sector’s medium-term growth prospects while expressing limited confidence in achieving the government's USD 100 Bn export target by FY31. The findings are based on structured conversations with 102 senior industry participants conducted during Bharat Tex 2026 in New Delhi.
Industry Outlook Remains Positive
Gurugram, 6 August 2026 – Wazir Advisors has released the Indian Textile and Apparel Industry Sentiment Barometer, based on structured conversations with 102 senior industry participants during Bharat Tex 2026 in New Delhi.
According to the survey, 92% of respondents expressed optimism about the textile and apparel sector's prospects over the next three to four years. Yarn and apparel manufacturers were unanimously positive. Respondents attributed this outlook to structural factors, including supply chain diversification away from China and changing global sourcing patterns, which they expect to continue benefiting the industry.
Mixed Sentiment on the USD 100 Billion Export Target
The survey recorded a different response regarding the government's USD 100 Bn export target.
Only 42% of respondents believe the target is achievable by FY31, while 34% consider it unlikely. The report notes that FY26 textile and apparel exports were approximately USD 36 Bn. Achieving USD 100 Bn by FY31 would require compound annual growth of about 23% over five consecutive years from a base that grew under 2% in the previous year.
Varun Vaid, Executive Director at Wazir Advisors, said:
"The industry has rarely been this confident and this unconvinced at the same time. 92% expect a strong three to four years, but only 42% believe USD 100 billion is reachable by FY31, and fewer than half think the industry is ready for what the EU is about to ask of it. That tells us how the constraints have moved. Market access was the old problem and the FTAs have or will largely fixed it. What decides the next five years is execution: infrastructure that actually gets commissioned, and traceability and reporting systems in place before ESPR and Digital Product Passport rules start determining who stays on buyer panels. That window is about two years wide."
Sustainability Readiness and Compliance
The survey found that sustainability readiness remains an area where industry confidence is comparatively lower.
A total of 47% of respondents consider the industry well or fully prepared for evolving global sustainability and compliance requirements, while 17% described the industry as only slightly prepared.
The report notes that the European Union's Ecodesign for Sustainable Products Regulation (ESPR) and Digital Product Passport rules for textiles are scheduled to take effect in 2027 and 2028. Wazir Advisors stated that these compliance requirements fall within the same period during which the industry expects benefits from Free Trade Agreements (FTAs), making compliance a market-access consideration.
Positive Outlook on FTAs and Investment
Trade agreements received the strongest response in the survey.
According to the findings, 94% of respondents expect recent and upcoming FTAs to have a positive impact on their business. The survey was conducted during the same week that the India-UK CETA came into force on 15 July. The India-EU FTA is expected to become operational by early 2027.
The survey also found that 77% of companies plan to increase investment during the next 12 to 18 months. Respondents increasingly linked investment plans to expected FTA-driven demand rather than only current order books.
Additionally, 80% said the present policy environment supports growth, citing PLI, PM MITRA and improving market access.
Sentiment Scores
Using a comparable scale across six pillars, the survey recorded the following scores:
- FTA advantage: +60
- Industry outlook: +55
- Policy environment: +47
- Investment appetite: +43
- Sustainability readiness: +17
- Conviction on the USD 100 Bn export target: +6
According to Wazir Advisors, market access and credibility to expand India's export base are now established, while execution remains the determining factor for future growth.