The Global Trade Research Initiative (GTRI) has said that India’s export of textiles and garment saw a 2.2% decline in dollar terms and 2.1% fall in rupee terms in the fiscal year 2025-26, due to contraction in shipments of key labour-intensive segments such as cotton and garments. 

GTRI said the contraction was visible across major categories, with cotton textiles falling 3.9 per cent, ready-made garments declining 1.4 per cent and carpets dropping 5.3 per cent. It said only handicrafts registered marginal growth of 1.5 per cent during the fiscal. It noted that the contrast between Rupee and dollar growth highlights a deeper structural concern.  

GTRI founder Ajay Srivastava said India is exporting more in value terms domestically, but earning fewer dollars globally. For instance, man-made textiles show a 3.6 per cent rise in rupee terms but a 0.8 per cent decline in dollar terms, and garments show a 2.9 per cent increase in rupee terms despite a 1.4 per cent dollar contraction. 

He said this suggests that currency depreciation and not competitiveness is behind the apparent growth, and added that in real terms, India is losing market share or failing to expand in key global markets, particularly in labour-intensive sectors where it should be gaining ground. He said the data shows stagnation or decline in core segments, despite initiatives on production-linked incentives, logistics improvements, and trade facilitation. So, he said the government must urgently investigate bottlenecks.