India’s textile and garment exports to the US plummeted 28.7 per cent year-on-year in February 2026, marking the sixth consecutive month of decline since the imposition of reciprocal tariff in August 2025, per an industry analysis.
According to figures collated by the Confederation of Indian Textile Industry (CITI), exports to India’s largest market for textiles and garments dropped to $0.63 billion.
While India’s contraction was significant, largely owing to the 25 per cent reciprocal tariff (removed after the February 20 Supreme Court verdict and later replaced with a global tariff of 10 per cent) and another 25 per cent penal tariffs for its Russian oil imports (which were removed on February 7), other major exporting countries saw varying results.
China, which was at the receiving end of multiple and fast changing tariff in the US through 2025, posted a steeper decline of 45.2 per cent in February 2026, with exports falling to $1.04 billion. Vietnam, slapped with a lower 20 per cent reciprocal tariff by the US last year, demonstrated notable resilience, posting a 5 per cent growth to reach $1.35 billion in February 2026.
With the landmark US Supreme Court ruling on February 20 striking down the US reciprocal tariff, exporters welcomed the potential reprieve, but remain cautious regarding the speed of a market recovery.
“We missed out on the spring orders. Now summer is also going to be over. Hopefully, we can do some catching up in a couple of months,” a Delhi based exporter said.
When demand compresses at the top of the chain, no amount of duty advantage saves you, noted Sanjay Jain, MD, TT Ltd. “The American consumer is pulling back. And when demand compresses at the top of the chain, no amount of duty advantage saves you,” Jain said.
India’s goods exports in February 2026 stood at $36.61 billion, down 0.8 per cent y-o-y from $36.91 billion in February 2025. In CY25, India’s exports of textiles and garments posted a marginal 1 per cent increase to $9.68 billion.
