India's Ready-Made Garment Exports Show Mixed Trends Amid Global Economic Challenges
India's ready-made garment (RMG) export sector has displayed a complex performance pattern, with recent data revealing both declines and growth across different timeframes and markets. According to industry figures, RMG exports in February 2026 experienced a 4.7% decrease compared to the same month in 2025. However, when measured against February 2024, exports registered a 3.9% increase, indicating underlying resilience in the sector.
Cumulative Export Performance Shows Steady Growth
A Sakthivel, Chairman of the Apparel Export Promotion Council (AEPC), provided detailed insights into the broader export landscape. The cumulative RMG exports for the period spanning April 2025 to February 2026 reached ₹1,27,845.7 crore. This represents a 4.7% growth over the ₹1,22,159.6 crore recorded during the corresponding period of the previous year. Furthermore, exports demonstrated a substantial 18.3% rise compared to the ₹1,08,080.8 crore reported in the April–February timeframe of 2023-24.
"The sector has shown remarkable resilience despite facing global economic uncertainties and persistent supply chain disruptions," stated Sakthivel. He acknowledged that geopolitical tensions, particularly in regions like West Asia, have adversely impacted order flows from key international markets.
Market-Specific Export Trends Reveal Diversification
A detailed breakdown of export destinations highlights significant variations in performance:
- United States: Exports witnessed a 5.8% decline, falling from $4,309.5 million in April–January 2024-25 to $4,059.1 million in April–January 2025-26.
- United Arab Emirates: Shipments grew by 13.1%, increasing from $984.1 million to $1,112.6 million over the same comparative periods.
- Saudi Arabia: Exports surged by 16.7%, rising from $291.4 million to $340.2 million.
- Italy: A 15.1% growth was recorded, with exports moving from $293.6 million to $338 million.
- Japan: The most impressive growth was seen here, with a sharp 30.3% increase from $151.4 million to $197.2 million.
Challenges and Strategic Outlook for the Apparel Sector
The chairman highlighted several pressing challenges currently facing exporters. Rising freight rates and escalating input costs are exerting considerable pressure on profit margins, making competitive pricing in international markets more difficult.
Despite these headwinds, Sakthivel expressed "confidence in the sector's long-term prospects." He pointed to strategic initiatives that are expected to drive future growth, including:
- Market Diversification: Reducing dependency on traditional markets by expanding into new regions.
- Product Innovation: Developing value-added and specialized garment categories.
- Supply Chain Efficiencies: Implementing technological and logistical improvements.
- Leveraging Free Trade Agreements (FTAs): Utilizing recent trade pacts to gain tariff advantages and boost export competitiveness.
The Indian apparel export industry, therefore, finds itself navigating a landscape of both contraction and opportunity. While short-term fluctuations and external pressures pose challenges, the underlying growth trajectory and strategic adaptations suggest a cautiously optimistic future for this vital segment of the national economy.
