India's textile output soars while apparel output continues to fall

According to the latest Index of Industrial Production released by the Statistics Ministry, overall industrial growth in August 2026 reached 8%, with most manufacturing groups expanding. Textile manufacturing, which supplies yarn and fabric, surged 13.1% in the same month and is up 11.9% for the fiscal year, reflecting strong upstream activity and higher yarn prices. In contrast, the wearing-apparel segment, a bellwether for exports, shrank 7.4% in August and is 5.6% lower year-to-date, a trend tied to global trade uncertainties and shifting export orders.

The sector still draws heavily from a domestic market worth roughly Rs 12.02 lakh crore, about 80% of the total. Industry leaders note that new free-trade agreements and festive-season demand could revive apparel output, while exporters like Sharad Saraf are already preparing Christmas orders. A prolonged apparel slump could affect value-addition, employment and export earnings, underscoring the need for skilled labour and flexible production capacity.