Export of readymade garments is expected to see an improvement in 2025-2026, according to textile sector outlook for FY26 by the India Ratings and Research (Ind-Ra).
The outlook says the year-on-year improvement in textile export volumes will be led by demand growth in key importing nations, such as the U.S., the U.K. and the EU, as “restocking has picked up” from the third quarter of the current financial year.
“With the likely improving y-o-y import volumes globally, India’s market share shall continue to increase, given the China-Plus-One sourcing strategy being adopted by most importers and the ongoing geo-political issues in other exporting countries, especially Bangladesh, which have led to increased enquiries into India,” it said.
Political issues in Bangladesh and increasing tariffs by the U.S. on other exporting nations will play a key role in improving India’s export market share in the textile space. However, the industry needs adequate infrastructure and capacities to capitalise the prospects, it added.
The Ind-Ra expects enhanced support measures by the government to improve India’s infrastructure in FY26 in terms of boosting investments in downstream capacities and competitiveness in the global market. “Integrated downstream players are better placed than upstream players in obtaining incremental orders,” the Ind-Ra said in a press release.
The domestic demand for Indian textiles and apparels will maintain 9%-10% year-on-year growth in 2025-2026, “led by continued growth in the private final consumption expenditure in India at around 7% yoy.”
Overall, “EBITDA margins could improve yoy in FY26 on better gross margins and increased capacity utilisation, supported by likely stable raw material prices.”
Meanwhile, Sanjay K. Jain, chairman of the national expert committee on textiles of the Indian Chamber of Commerce, told The Hindu there is no textile inflation for the last two years and there is no visible signs of a 10 % growth in the domestic market.
Published - February 11, 2025 10:11 pm IST
