Indian textile and apparel exporters are reducing their dependence on the US market amid tariff uncertainty and declining orders. Companies are expanding into Canada, Japan, the European Union, the UK and Latin America to protect revenue and support long-term growth.

India’s textile exports fell to $35.7 billion in FY2025–26 from $36.6 billion in the previous financial year. However, exports rose 2% year-on-year to $18.16 billion during April–September 2026.

Several companies are adapting their strategies to manage the challenges. Pearl Global Industries has increased its presence in international markets, while other exporters are adjusting product mixes and sharing tariff costs with customers. Meanwhile, some exporters have reported sharp declines in US shipments during periods of high tariffs.

Industry leaders believe that new trade agreements, improved market access and a potential India-US trade deal could support recovery. However, building relationships with buyers in new markets takes time, making diversification a gradual process for Indian textile businesses.