India's textile exports, including handicrafts, grew by 2.1% to reach ₹3.16 lakh crore in FY 2025-26. Supported by government schemes like RoSCTL and RoDTEP, the growth was primarily driven by ready-made garments and man-made textiles. The expansion covered over 120 global markets, aided by recent Free Trade Agreements (FTAs). For competitive exams, this highlights India's trade resilience, the performance of the manufacturing sector, and the positive impact of export-promotion policies on global supply chains.
India's total textile exports, including handicrafts, registered a 2.1% growth in the financial year 2025-26. The export value rose from ₹3,09,859.3 crore to ₹3,16,334.9 crore. The Ministry of Textiles released this data, highlighting the sector's steady performance despite global economic uncertainties.
The data covers the Indian financial year from April 2025 to March 2026. Export growth was observed across more than 120 global destinations, with notable spikes in markets like the UAE, UK, Germany, and Japan.
The Ministry of Textiles compiled and released the data. Key beneficiaries include domestic manufacturers, weavers, and exporters. International trading partners like the UAE, UK, and the European Union are heavily involved due to active trade agreements.
The growth is achieved through a mix of international demand and supportive domestic policies. Government schemes like RoSCTL and RoDTEP refund embedded taxes and duties to exporters, making Indian textiles cheaper abroad. Simultaneously, FTAs reduce tariff barriers in partner countries.
For exams, this relates directly to the GS Paper 3 syllabus (Indian Economy, Growth, and Trade). The textile sector is India’s second-largest employer after agriculture. Sustained export growth ensures job creation, foreign exchange accumulation, and rural development, particularly empowering women.
The Indian textile industry is one of the oldest in the country. In 1999, the government launched the TUFS to upgrade machinery. More recently, in 2021, the PM MITRA park scheme was introduced to create world-class textile infrastructure.
In FY 2023-24, exports faced headwinds due to global inflation and reduced discretionary spending in the West. However, the continuous extension of the RoDTEP scheme stabilized the sector, leading to the current recovery in 2025-26.
The textile sector heavily relies on the "Cotton Belt" of India, grown on the black soil (Regur soil) of the Deccan Plateau. Economically, this links to the concept of "Comparative Advantage" in international trade.
With the conclusion of major trade agreements like the India-EU FTA and Oman CEPA, India’s preferential market access will widen. This is expected to attract more Foreign Direct Investment (FDI) and boost capabilities in technical textiles.
Core Concept: Free Trade Agreements (FTAs) & RoDTEP Scheme
Q1. Which category was the largest contributor to India's textile exports in FY 2025-26?
A) Cotton Yarn
B) Ready-Made Garments (RMG)
C) Handicrafts
D) Man-made fabrics
Answer: B
Explanation: Ready-Made Garments (RMG) remained the largest contributor, growing by 2.9% to roughly ₹1.39 lakh crore.
Q2. The RoDTEP scheme, which supports textile exports, is compliant with the rules of which international organization?
A) World Bank
B) International Monetary Fund (IMF)
C) World Trade Organization (WTO)
D) United Nations Conference on Trade and Development (UNCTAD)
Answer: C
Explanation: RoDTEP was introduced to replace the MEIS scheme specifically to ensure compliance with WTO norms on export subsidies.
Q3. By what percentage did India's total textile exports grow in the financial year 2025-26?
A) 1.5%
B) 2.1%
C) 3.6%
D) 6.1%
Answer: B
Explanation: India's total textile exports grew by 2.1% to reach ₹3,16,334.9 crore in FY 2025-26.
Q4. Which of the following soils is most suitable for cultivating cotton, the primary raw material for India's textile industry?
A) Alluvial Soil
B) Red Soil
C) Laterite Soil
D) Black Soil (Regur)
Answer: D
Explanation: Black soil, also known as Regur soil, found heavily in the Deccan Plateau, is ideal for cotton cultivation due to its high moisture retention capacity.
Q5. Which segment registered the highest growth rate among the value-added textile categories in FY 2025-26?
A) Man-made yarn
B) Ready-Made Garments
C) Handicrafts (excluding carpets)
D) Cotton fabrics
Answer: C
Explanation: Handicrafts (excluding handmade carpets) emerged as the fastest-growing category among major segments, expanding by 6.1%.
Q6. Consider the following countries:
1. UAE
2. UK
3. Japan
In which of these destinations did Indian textile exports see notable growth in FY 2025-26?
A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) 1, 2, and 3
Answer: D
Explanation: Export growth was broad-based across 120+ markets, with significant percentage increases recorded in the UAE, UK, and Japan.
PYQ 1:
With reference to the international trade of India at present, which of the following statements is/are correct?
1. India's exports of Ready-Made Garments (RMG) constitute the largest share of its textile exports.
2. The RoSCTL scheme is exclusively meant for the electronics manufacturing sector.
Select the correct answer using the code given below:
A) 1 only
B) 2 only
C) Both 1 and 2
D) Neither 1 nor 2
Answer: A
Explanation: Statement 1 is correct based on recent trade data. Statement 2 is incorrect because the RoSCTL scheme is specifically designed for the rebate of taxes in the export of garments and made-ups (textiles).
PYQ 2:
Assertion (A): The Indian government introduced the RoDTEP scheme to boost merchandise exports.
Reason (R): RoDTEP refunds embedded taxes and duties that were previously non-creditable, making Indian products globally competitive.
A) Both A and R are true and R is the correct explanation of A.
B) Both A and R are true but R is not the correct explanation of A.
C) A is true but R is false.
D) A is false but R is true.
Answer: A
Explanation: The reason correctly explains the mechanism of how the assertion is achieved. Refunding un-credited taxes lowers the final cost of the product, thereby directly boosting exports.
Question: Analyze the factors contributing to the resilience of India's textile exports. How can recent Free Trade Agreements (FTAs) and domestic policy measures further strengthen this sector? (250 words)
For Prelims, focus on the specific government schemes (RoDTEP, RoSCTL) and their WTO compliance aspect. For Mains (GS Paper 3), use the 2.1% growth figure and RMG dominance as an introductory data point for answers related to the manufacturing sector, employment generation, and foreign trade policy.