India apparel exports slide 12.44% in Q1 FY27 as textile shipments cushion combined 2.95% dip
India's textile and apparel exports fell 2.95% in Q1 FY27 (Apr-Jun 2026), dragged by a 12.44% drop in apparel on West Asia war disruption and high input costs. Textile exports rose 5.19% as makers passed on prices, with yarn up 20% since November. June apparel fell 11.25% while textiles grew 9.64%.
What happened
Confederation of Indian Textile Industry (CITI) · India's textile and apparel exports declined 2.95% in Q1 FY27, with apparel down 12.44% on West Asia war
Key facts
- textile exports +5.19% Q1
- apparel exports -12.44% Q1
- combined -2.95% Apr-Jun 2026
- June textile +9.64%
- June apparel -11.25%
- yarn prices +20% since Nov
Why this matters
The apparel weakness against textile resilience signals acquisition or vertical-integration opportunities in yarn and fabric capacity to hedge against volatile finished-goods demand and geopolitical shipping risk.
What to watch
- West Asia conflict escalation/ceasefire and Red Sea shipping insurance rates
- Cotton and yarn price index trajectory through Q2 FY27
- July-Aug monthly apparel export prints for trend confirmation
- US/EU festive-season order book placements (Aug-Sep)
- Rupee movement vs competitor currencies (BDT, VND)
- Domestic apparel exporters hedge freight and diversify away from West Asia routes toward EU/US direct lanes
- Textile spinners lock in forward yarn contracts to capture price momentum before demand elasticity bites
- Government/industry bodies (AEPC) likely lobby for export incentives, RoDTEP top-ups, or freight subsidies
- Retailers sourcing from India renegotiate contracts or shift marginal volume to Bangladesh/Vietnam