Wazir Advisors, a leading management consulting firm specializing in the textile and apparel sector, has released its Annual Indian Textile and Apparel Industry Report 2026, offering a comprehensive assessment of global and domestic industry performance, key structural shifts, and the outlook for the year ahead.
The report presents an in-depth analysis of the global textile and apparel landscape, highlighting how geopolitical developments, tariff asymmetries, evolving sourcing strategies, and subdued consumer demand shaped industry performance in 2025. According to the report, the global apparel market is estimated at ~US$ 1.9 trillion in 2025 while the global textile & apparel trade stood at nearly US$ 900 billion. The year witnessed notable shifts in sourcing patterns as global buyers continued to diversify supply chains reducing dependence on China. A key focus of the report is the impact of higher US tariffs, which led to a visible slowdown in apparel imports.
On the domestic front, the Indian textile and apparel market is estimated at US$ 194 billion in 2025-26, registering a YoY growth of about 5%. The domestic market continues to remain the backbone of the industry, contributing nearly 80% of the total market size. India’s textile and apparel exports are estimated at US$ 37 billion in 2025-26, remaining largely flat compared to the previous year. The report notes that achieving the Government of India’s ambitious US$ 100 billion export target by 2030-31 will require accelerated growth, deeper market access through FTAs, and increased competitiveness in man-made fibre and value-added segments.
The study also highlights significant policy and investment developments during 2025. Strong investment momentum was recorded with large-scale commitments across the sector, supported by progress under the PM MITRA program. Rationalization of GST, extension of export incentive schemes, and targeted support for technical textiles contributed to easing cost pressures and encouraging long-term capacity creation.
Looking ahead to 2026, the report anticipates cautious but improving demand conditions. While global consumption recovery is expected to remain uneven, domestic demand in India is likely to provide stability. Increased emphasis on compliance, quality, flexibility, and speed is expected to redefine competitiveness. Progress on key free trade agreements, including India-UK and India- EU, is projected to significantly enhance export opportunities over the medium term.
Commenting on the release, Varun Vaid, Business Director, Wazir Advisors, said, “2025 was a year of structural transition for the global textile and apparel industry. Policy shifts, tariff actions, and changing sourcing strategies have reinforced the need for agility and resilience. For India, the opportunity remains strong, but growth will increasingly depend on moving up the value chain, strengthening man-made fibre capabilities, and building flexible operating models that align with evolving buyer expectations.”
The report also includes detailed production and trade statistics, category-wise performance analysis, state-level export insights, and a review of leading Indian textile and apparel companies, making it a comprehensive reference for industry stakeholders.
With its data-driven insights and forward-looking perspective, the report aims to support manufacturers, brands, policymakers, and investors in informed decision-making as the industry navigates an increasingly complex and competitive global environment.
