India’s textile and apparel exports to the United States saw a significant decline in the first half of the year
Recent trade data from the U.S. OTEXA shows that from January to June 2026, India’s textile and apparel exports to the U.S. took a big plunge, signaling a new round of shifts in the global textile supply chain.
The data shows that in the first half of the year, India’s textile and apparel exports to the U.S. totaled $4.1 billion, down from $5.35 billion in the same period last year, a year-on-year drop of 23.3%, meaning $1.25 billion in orders were lost. The decline is more than three times the overall drop in U.S. textile and apparel imports, putting India well below the industry average. India’s share of the U.S. textile and apparel import market fell from 10.4% last year to 8.6%, shrinking its market share by 1.8 percentage points.
Looking at it comparatively, ASEAN’s exports of textiles and clothing to the U.S. are actually going up against the trend, with a 4.5% year-on-year increase in the first half of the year, reaching $1.534 billion. Bangladesh slightly overtook India in U.S. textile and clothing exports, while Southeast Asian producers are taking on a lot of U.S. orders that used to go to India. The trend of orders ‘moving east’ is clear, and Asia’s textile export map is being reshaped faster.
Industry analysts believe that the main reason for the export slump comes from the uncertainty in tariff policies. During the main ordering period in the first half of the year, India has long faced the risk of high import tariffs. Even though the U.S. lowered tariffs in February, many brands and buyers, to hedge against the risk, had already allocated long-cycle clothing orders to Southeast Asian countries like Vietnam and Indonesia, where the tariff environment is more stable. Once orders move, they tend to stick, and with production schedules locked in, it’s hard for them to come back to India in the short term. On top of that, weak U.S. domestic clothing consumption and continual inventory cuts by retailers have all contributed to the significant loss of Indian textile orders to the U.S.
To hedge against the impact of the U.S. market downturn, India’s textile industry is accelerating the implementation of a market diversification strategy, exploring emerging markets in Europe, the Middle East, and Africa. At the same time, measures such as reducing import tariffs on raw cotton are being taken to lower domestic spinning and weaving production costs and enhance industry competitiveness.
Looking ahead, the trajectory of U.S. tariffs and the inventory cycles of overseas retailers will continue to influence the global distribution of textile orders, and the trend of regional shifts in the supply chain is expected to persist.
Post time: Aug-18-2026
