The report offers a comprehensive review of the global textile and apparel landscape, outlining how geopolitical developments, tariff imbalances, changing sourcing strategies, and weak consumer demand influenced industry performance in 2025.
Wazir Advisors, a leading management consulting firm focused on the textile and apparel sector, has published its Annual Indian Textile and Apparel Industry Report 2026, providing a detailed evaluation of global and domestic industry performance, major structural changes, and the outlook for the coming year.
The report offers a comprehensive review of the global textile and apparel landscape, outlining how geopolitical developments, tariff imbalances, changing sourcing strategies, and weak consumer demand influenced industry performance in 2025. It estimates the global apparel market at around $1.9 trillion in 2025, while global textile and apparel trade reached nearly $900 billion. The study notes significant shifts in sourcing as international buyers continued to diversify supply chains and reduce reliance on China. Higher US tariffs emerged as a key factor, contributing to a noticeable slowdown in apparel imports.
Domestically, India’s textile and apparel market is valued at $194 billion in 2025–26, reflecting a year-on-year growth of about 5 per cent. The domestic market remains the industry’s mainstay, accounting for close to 80 per cent of the overall market size. Exports are estimated at $37 billion in 2025–26, largely unchanged from the previous year. The report emphasizes that meeting the Government of India’s $100 billion export target by 2030–31 will require faster growth, improved market access through free trade agreements, and stronger competitiveness in man-made fibre and value-added segments.
The study also highlights key policy and investment trends during 2025. Robust investment activity was observed across the sector, supported by progress under the PM MITRA programme. Measures such as GST rationalisation, the extension of export incentive schemes, and focused support for technical textiles helped ease cost pressures and promote long-term capacity expansion.
Looking ahead to 2026, the report expects demand conditions to remain cautious but gradually improve. While the recovery in global consumption is likely to be uneven, domestic demand in India is expected to offer stability. Greater focus on compliance, quality, flexibility, and speed is set to reshape competitiveness. Advancements in major free trade agreements, including India–UK and India–EU, are anticipated to create meaningful export opportunities over the medium term.
Commenting on the report, 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 publication also features detailed production and trade data, category-wise performance assessments, state-level export analysis, and reviews of leading Indian textile and apparel companies, positioning it as a comprehensive reference for industry stakeholders.
With its data-driven analysis and forward-looking insights, the report aims to assist manufacturers, brands, policymakers, and investors in making informed decisions as the industry navigates a more complex and competitive global environment.