India’s Apparel Exports to the US Slide in February, Raising Competitive Pressures

• India’s apparel exports to the US fell 28.7% in February, underperforming Bangladesh and Vietnam.

• Vietnam gained 5% growth, while China saw the steepest drop at 45.2%.

• India is losing US market share despite tariff rollback in February 2026.

• Exporters struggle to regain buyers; order recovery may begin by May–June.

• Weak US demand and tariff impact hurt profits, with PAT down over 50%.

India’s textile and apparel shipments to the United States contracted sharply in February, lagging behind several Asian competitors and highlighting continued softness in American demand.

Fresh figures from the US Office of Textiles and Apparel show that imports from India plunged 28.7% year-on-year during the month. In contrast, shipments from Bangladesh declined by a comparatively smaller 16.4%, while Vietnam managed to post a 5% increase. China experienced the most dramatic drop, with exports to the US tumbling 45.2%, according to analysis by the Confederation of Indian Textile Industries (CITI).

The sharper fall in Indian exports has intensified concerns within the industry that the country is ceding ground in the US market to regional rivals. Chandrima Chatterjee, secretary general of CITI, noted that trade data through February 2026 indicates India’s share is eroding more rapidly than Bangladesh’s, even as Vietnam continues to strengthen its position.

Notably, the downturn has occurred despite the rollback of additional US tariffs in February 2026. Industry executives say the expected boost from lower duties has yet to materialize in the form of stronger order flows. Many exporters are still trying to win back American buyers who diversified sourcing to mitigate tariff-related risks.

Rajat Jaipuria, managing director of Rajalaxmi Cotton Mills, said a significant number of US clients had shifted procurement away from India when tariffs were elevated. While some buyers have returned, he estimates that only about 40% have resumed sourcing from his company. He added that any meaningful pickup in shipments is likely to become visible only from May or June, given the typical 90–120 day gap between order placement and delivery.

Industry representatives also point to broader headwinds in the US retail environment. American apparel imports in 2025 trailed 2024 levels, as tariff-induced price pressures dampened consumer confidence and spending. Sanjay Jain, chairman of the National Textile Committee at the Indian Chamber of Commerce, described the recent slump as a consequence of duties that took effect in August. According to him, many buyers postponed or reduced orders to India while awaiting clarity on tariff policy. Since import data reflects shipments dispatched weeks earlier, the February contraction likely captures the tail end of that uncertainty. He expressed confidence that the decline should moderate in the coming months.

CITI further emphasized that the current weakness stems partly from a lag in the tariff rollback’s impact, as well as longer-term structural challenges that have encouraged global brands to diversify supply chains—often in favor of Vietnam.

The strain is already evident in corporate earnings. Companies with heavy exposure to the US market are reporting significant pressure on profitability. Chatterjee noted that third-quarter results from listed apparel and home textile firms show profit-after-tax growth down by more than 50%. She attributed the slump to subdued demand, underutilized production capacities in major manufacturing hubs, high fixed costs, and limited room to pass on additional expenses to buyers.

As the industry awaits a revival in US orders, exporters remain cautiously optimistic that easing trade barriers and replenishment cycles could gradually stabilize performance in the months ahead.