Ind-Ra Report Claims Strong Growth For India’s Garment Exports In FY26

New Delhi, Feb 12 (KNN) India's readymade garment exports are expected to show significant improvement in fiscal year 2025-2026, according to a new outlook report released by India Ratings and Research (Ind-Ra).

The positive forecast is attributed to increasing demand from key importing nations, including the United States, United Kingdom, and European Union, with restocking activities showing momentum since the third quarter of the current financial year.

The report highlights India's growing market share in global textile exports, driven by importers adopting a China-Plus-One sourcing strategy and ongoing geopolitical challenges in competing export nations, particularly Bangladesh.

Political instability in Bangladesh, coupled with increased U.S. tariffs on other exporting countries, is expected to redirect more textile orders toward India, though the report emphasises that adequate infrastructure and production capacity will be crucial for capitalising on these opportunities.

Looking ahead to FY26, Ind-Ra anticipates enhanced government support measures to strengthen India's textile infrastructure, focusing on downstream capacity investments and global market competitiveness.

The report specifically notes that integrated downstream players are better positioned than upstream operators to secure additional orders in the evolving market landscape.

On the domestic front, Indian textile and apparel demand is projected to maintain robust growth of 9-10 per cent year-on-year in 2025-2026, supported by an expected 7 per cent annual increase in private final consumption expenditure.

The outlook concludes with a positive note on profitability, suggesting that EBITDA margins could see year-on-year improvement in FY26, driven by better gross margins, increased capacity utilisation, and anticipated stability in raw material prices.

(KNN Bureau)