Apparel manufacturing in India contracted 5.6% year on year in the April-September period, weighed down by subdued demand, particularly in the US, and high input costs, even as textile production registered strong growth on robust demand for yarn and fabric.
Domestic textile production grew 17.4% year-on-year in September and 13.1% in the first half of FY27. In contrast, apparel production declined 5.2% in September and 5.6% in the April-September period, according to the latest Index of Industrial Production (IIP) data from the statistics ministry.
Yarn prices rose by around 15% in the April-September period. The textile industry’s strong performance has been driven primarily by upstream segments, particularly cotton yarn, which recorded healthy double-digit export growth in the first half of FY27. The home textile segment, which is mostly export-oriented, has also rebounded following the removal of tariff-related disruptions, lending support to fabric and textile production. The outlook is beginning to improve, supported by expanding export opportunities and better order flows.
