Wazir Advisors has launched its Annual Indian Textile and Apparel Industry Report 2026, delivering a detailed evaluation of global and domestic sector performance, structural transformations, and the outlook for the coming year. The Gurugram-based consultancy highlights how geopolitical developments, tariff imbalances, evolving sourcing strategies, and soft consumer demand influenced the industry landscape in 2025.
The report estimates the global apparel market at approximately US$ 1.9 trillion in 2025, while global textile and apparel trade reached nearly US$ 900 billion. Sourcing patterns continued to shift as buyers diversified supply chains beyond China. Elevated US tariffs contributed to a slowdown in apparel imports, further reshaping trade flows.
India Market Overview
India’s textile and apparel market is projected at US$ 194 billion in 2025-26, reflecting around 5 percent year-on-year growth. Domestic consumption remains the foundation of the sector, accounting for close to 80 percent of total market value. Exports are estimated at US$ 37 billion, remaining largely stable compared to the previous year.
To reach the Government of India’s US$ 100 billion export target by 2030-31, the report stresses the need for faster expansion, stronger FTA-led market access, and greater competitiveness in man-made fibres and value-added categories.
Policy and Investment Momentum
The study points to robust investment activity across the value chain, supported by developments under the PM MITRA initiative. GST rationalisation, continuation of export incentives, and focused support for technical textiles helped reduce cost pressures and encouraged capacity building.
Outlook for 2026
Demand conditions are expected to improve gradually, although global recovery may remain uneven. India’s domestic demand is likely to provide relative stability. Competitiveness will increasingly depend on compliance, quality, operational agility, and speed to market. Progress in trade agreements such as India-UK and India-EU FTAs is anticipated to open new export avenues over the medium term.
Varun Vaid, Business Director at Wazir Advisors, noted that structural shifts in policy, tariffs, and sourcing behaviour are reinforcing the importance of resilience and value chain upgradation, especially in man-made fibre capabilities.
The report features extensive production and trade data, category-level analysis, state-wise export performance, and insights on leading Indian textile and apparel companies, positioning it as a comprehensive industry reference.
