US Textile Demand Slump: India Exports Fall 29%, Vietnam Gains Ground
PUNE: India’s textile and apparel exports to the US dropped sharply in February, highlighting weak demand and growing competitive pressure from Asian peers.
According to data from the Office of Textiles and Apparel, US imports from India declined 28.7% year-on-year. In comparison, imports from Bangladesh fell 16.4%, while Vietnam recorded a 5% increase. China saw the steepest drop, with imports plunging 45.2%, as per analysis by the Confederation of Indian Textile Industries (CITI).
The sharper decline has raised concerns about India losing market share in the US, particularly to Bangladesh and Vietnam.
“The US trade data till February 2026 shows India is losing share faster than Bangladesh, while Vietnam is consolidating gains,” said Chandrima Chatterjee, Secretary General of CITI.
The fall comes despite the rollback of additional US tariffs in February 2026, suggesting that the benefits are yet to reflect in export orders. Exporters say many US buyers had already shifted sourcing to other countries during the tariff period and are slow to return.
“A lot of US buyers moved away from India to hedge risks due to high tariffs. We have managed to regain only about 40% of them,” said Rajat Jaipuria, Managing Director of Rajalaxmi Cotton Mills. He added that a pickup in shipments may be visible from May–June, given the typical 90–120 day order-to-shipment cycle.
Industry experts attribute the decline to tariff-driven inflation in the US, which dampened consumer demand in 2025, leading to lower import volumes compared to 2024.
“This is largely the fallout of US tariffs that became effective from August. Buyers held back orders while waiting for clarity. Since February data reflects shipments made earlier, the sharp fall is not surprising and should ease going forward,” said Sanjay Jain, Chairman of the National Textile Committee at the Indian Chamber of Commerce.
CITI noted that the current trend also reflects structural challenges, with global buyers diversifying sourcing bases, especially toward Vietnam.
The slowdown is already impacting company performance. Firms with high exposure to the US market reported over 50% decline in profit growth in Q3, due to weak demand, underutilised capacities, and margin pressure from high fixed costs.
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