Textile Exports Rise 1.25% to $10.9 Billion in July–January FY26

The textile sector — often called the backbone of many developing economies — has posted a modest yet encouraging performance in the first seven months of FY26. Exports increased by 1.25% to reach $10.9 billion during July–January, compared to the same period last fiscal year.
At first glance, a 1.25% rise may appear minor. But in the current global economic climate — marked by slow demand, inflationary pressures, supply chain disruptions, and geopolitical tensions — even incremental growth reflects resilience. For a sector that directly and indirectly employs millions, this uptick provides cautious optimism.
Yet behind the numbers lies a more complex story: a struggle between rising costs and global competition, modernization efforts and outdated infrastructure, opportunity and vulnerability.
Breaking Down the Numbers
The $10.9 billion export figure represents shipments of various textile categories, including:
Readymade garments
Knitwear
Bed wear
Cotton yarn
Towels
Value-added apparel
Value-added segments such as garments and knitwear continued to perform relatively better compared to raw textile exports like cotton yarn. This shift indicates gradual progress toward higher-margin products — a long-standing goal for industry stakeholders.
However, global demand remains uneven. Western markets, especially in North America and Europe, are still adjusting to post-pandemic consumer behavior. Retailers are cautious with inventory, and buyers are negotiating aggressively on pricing.
In such a climate, maintaining even slight growth reflects competitive adaptability.
Global Headwinds and Industry Pressures
The global textile market is highly competitive. Countries such as China, Bangladesh, Vietnam, and India dominate global apparel exports.
Each competitor brings different advantages:
China offers scale and integrated supply chains.
Bangladesh benefits from low labor costs and trade preferences.
Vietnam has strong trade agreements with Western economies.
India combines raw material access with expanding manufacturing capacity.
To remain competitive, exporters must navigate rising energy costs, currency fluctuations, and increased compliance requirements related to sustainability and labor standards.
Energy pricing remains a critical concern. Textile production is energy-intensive, and inconsistent or expensive electricity directly affects profit margins. Many manufacturers argue that without stable energy policies, maintaining export momentum will remain difficult.
The Shift Toward Value Addition
One positive trend in FY26 is the steady contribution of value-added products. Rather than exporting raw cotton or yarn, more manufacturers are focusing on finished garments and branded apparel.
Value addition allows:
Higher export earnings per unit
Stronger brand positioning
Greater resilience against commodity price swings
Global buyers increasingly demand sustainability certifications, traceable supply chains, and environmentally friendly manufacturing processes. Companies investing in modern machinery and eco-compliant production facilities are better positioned to secure long-term contracts.
However, modernization requires capital — and access to affordable financing remains uneven across the sector.
Employment and Economic Impact
The textile industry is one of the largest employers in many emerging economies. Millions of workers depend on it for their livelihoods, particularly women in garment manufacturing roles.
Even a small export increase can have ripple effects:
Job retention in factories
Stable wages in industrial zones
Stronger foreign exchange reserves
Reduced pressure on trade deficits
Foreign exchange earnings from textiles play a vital role in stabilizing national currencies. With global financial markets volatile, export stability becomes even more critical.
Still, experts caution that relying too heavily on one sector can create vulnerability. Diversification into technology, services, and other manufacturing segments remains essential for broader economic stability.
Sustainability and ESG Pressures
International buyers are no longer focused solely on price. Environmental, Social, and Governance (ESG) standards are increasingly central to trade relationships.
Retail brands in Europe and North America demand:
Reduced carbon emissions
Water-efficient dyeing processes
Ethical labor practices
Transparent supply chains
Factories that fail to meet these standards risk losing contracts.
The push toward sustainability is both a challenge and an opportunity. While compliance costs money, it also opens doors to premium markets willing to pay more for responsibly produced goods.
Governments and industry associations are encouraging green financing initiatives and technology upgrades to meet these global benchmarks.
Currency and Policy Dynamics
Exchange rates play a significant role in export competitiveness. A weaker domestic currency can make exports cheaper internationally, boosting demand. However, it also raises the cost of imported machinery and raw materials.
Policy consistency is another crucial factor. Export incentives, tax rebates, and duty drawbacks can significantly influence profitability. Delays in rebate payments often strain manufacturers’ cash flow, especially small and medium enterprises.
Industry leaders argue that long-term policy clarity is more important than short-term incentives. Investors and international buyers prefer stable, predictable regulatory environments.
Challenges Ahead
Despite the 1.25% growth, the road ahead remains uncertain.
Key challenges include:
Sluggish global retail demand
High production costs
Limited technological innovation in smaller factories
Infrastructure bottlenecks
Climate-related disruptions affecting cotton crops
Extreme weather patterns, including floods and heatwaves, have impacted cotton production in recent years. Supply instability can increase input costs and reduce competitiveness.
Moreover, automation is transforming global manufacturing. Countries investing heavily in robotics and digital supply chains may gain an edge in productivity and efficiency.
The Path Forward
To sustain and accelerate export growth beyond 1.25%, coordinated efforts are needed.
1. Investment in Technology
Modern looms, automated cutting machines, and AI-driven inventory systems can increase efficiency and reduce waste.
2. Energy Sector Reform
Affordable and reliable energy remains a cornerstone for competitive manufacturing.
3. Skills Development
Training workers in advanced manufacturing techniques and quality control improves productivity and product standards.
4. Market Diversification
Expanding into emerging markets in Africa, the Middle East, and Southeast Asia can reduce reliance on traditional Western buyers.
5. Branding and Innovation
Moving from contract manufacturing to brand development can unlock higher profit margins.
A Measured but Meaningful Gain
The 1.25% rise to $10.9 billion is not a dramatic surge — but it is a signal of endurance.
In a turbulent global economy, stability itself is an achievement. The textile sector has shown it can adapt, even if slowly. The next challenge is turning modest resilience into sustained expansion.
If structural reforms align with global market trends, the industry could transition from incremental growth to transformative progress.
For now, the message is clear: amid headwinds, the textile engine is still running — and with the right fuel, it could accelerate further.