Kolkata: India’s apparel exports grew by a modest 1.5% year-on-year in dollar terms during April- December 2025, as the US tariffs weighed on demand, ICRA said in a report on Tuesday. The growth was a stronger 5.8% in rupee terms amid the currency’s fall.
Exports to the US declined by around 6% in dollar terms during the first nine months of FY26, reflecting the impact of tariff pressures on demand. This was partly offset by increased shipments to other geographies such as Europe and the UAE, the report said.
It did not share the actual export value.
In FY25, India’s apparel exports stood at around $16 billion, accounting for nearly 3% of global trade. The US and Europe (including the EU and the UK) remain key markets, contributing about 32-33% and 31-32% share, respectively.
Globally, apparel trade is estimated at around $550 billion, with the US and Europe accounting for nearly 50% of total imports. Trade to these regions is estimated to have grown by 5-6% year-on-year in the first 11 months of 2025, led by around 9% growth in the EU amid higher restocking by retailers. In contrast, US import volumes declined by 3-4% due to the adverse impact of tariffs, the report said.
