India's textile sector demonstrated robust growth in the first five months of FY27, with cumulative exports reaching ₹1.43 lakh crore, registering 10.3% growth over the corresponding period of the previous year. According to reports from Business Standard, this performance reflects the sector's continued strength and diversified growth across multiple textile segments. The textile growth contributed to India's overall merchandise export surge, with total exports jumping 26.1% year-on-year to $43.8 billion in August, accelerating from 19.6% growth in July, as reported by The Economic Times.
August 2026 specifically showed exceptional performance with total textile exports increasing by 16.1% year-on-year to ₹29,776 crore, compared with ₹25,656 crore in August 2025. As reported by Business Standard, this monthly growth was broad-based across several major textile segments, indicating strong demand across the sector. The strong August performance helped drive India's overall merchandise export acceleration, with the merchandise trade deficit narrowing to $26.9 billion from $32 billion in July, according to The Economic Times.
The growth was particularly strong in specific textile segments during August 2026. According to Business Standard, cotton yarn, fabrics, made-ups and handloom products grew by 24.1%, while man-made yarn, fabrics and made-ups increased by 19.9%. Carpet exports recorded growth of 15.0%, and handicrafts, excluding handmade carpets, registered particularly strong growth of 41.4%. This diversified growth across multiple textile categories demonstrates the sector's resilience and adaptability to market conditions.
The cumulative performance during April-August 2026 remained encouraging across all major textile categories. As reported by Business Standard, cotton textiles grew by 18.0%, man-made textiles by 13.6%, carpets by 11.9% and handicrafts by 44.0%. Ready-made garments of all textiles also maintained positive momentum, growing by 6.1% during the month. The sustained growth trajectory across different textile segments indicates the sector's ability to capitalize on various market opportunities and maintain competitive positioning in global markets.
