India’s textile industry is seeing positive developments in 2026, supported by stronger export opportunities, new trade agreements and renewed investment in manufacturing.

The India–UK Free Trade Agreement came into force on 15 July 2026, removing tariffs on Indian textiles and apparel entering the UK for qualifying products. Meanwhile, India and the EU concluded their FTA negotiations in January 2026, creating the potential for improved access to the large European market.

India’s textile and apparel exports also increased in FY2025–26, while new textile-sector project announcements reached ₹44,019 crore for the year ending December 2025, according to CMIE data analysed by Business Standard.

The government has also temporarily removed customs duties on cotton imports until 30 October 2026, supporting raw-material availability for the textile industry.

What This Means for Buyers

For international buyers, India is becoming an increasingly attractive sourcing destination for home textiles, garments, towels, rugs, bed linen, kitchen linen and other textile products.

Alongside manufactured orders, buyers can also explore ready-stock, export-surplus and stocklot textiles for faster sourcing and competitive bulk purchasing.

2026 could be an important year for global buyers looking to diversify their textile sourcing to India.

Source:

• India–UK FTA: Effective 15 July 2026; around 99% of India’s exports receive zero-duty access under the agreement. Press Information /bureau
• India–EU FTA: Concluded in January 2026; textiles are among the sectors receiving improved market access. Press Information Bureau
• ₹44,019 crore textile investment: Business Standard analysis of CMIE data, covering the year ending December 2025. Business Standard
• Cotton import duty: India suspended the 11% cotton import duty until 30 October 2026 to improve raw-material availability for textile exporters. Reuters