Indian apparel exports (in USD terms) grew by 1.5% YoY during 10M FY2026, despite tariffs imposed by the US. A depreciating rupee supported a 5.8% growth in INR terms; while exports to the US declined by around 6% in USD terms. This was offset by increased exports to other geographies (like the UK, the UAE, etc.). While the reduction in US tariffs and signing of FTA with EU and UK are positives, an early resolution of West Asia conflict will be critical for improvement in overall trade sentiments.

• Global apparel exports, estimated at around $550 billion, are largely influenced by the imports from the EU and US, which make up around 50% of global trade. Imports from both these geographies collectively are estimated to have risen by 5-6% (YoY) in 11M CY2025. Imports by the EU are likely to have grown by around 9% over this period with higher restocking by retailers. However, there has been a moderation in volumes imported by the US (-3 to -4%) due to the adverse effect of tariffs on consumer demand.
• India’s apparel exports, which stood at around USD 16 billion in FY2025, represent around 3% of global trade. India’s export grew by a modest 1.5% YoY in 10M FY2026 due to the heightened US tariffs. The US and Europe (including EU and UK) continue to be the major markets for Indian apparel exporters, accounting for 32-33% and 31-32% share, respectively.

Exhibit 1: Movement in global apparel trade (past & projected)

Source: UN Comtrade, Department of Commerce, CMIE, ICRA estimates