Textile, apparel export see sharp decline in October; government rescinds QCO on viscose fibres

With the U.S. tariffs hitting hard, apparel and textile exports saw a 12.91% slump in October compared with last October.

While textile shipments last month were worth $1,597 million, apparel exports were $1,069.42 million, as against $1,833 million (textiles) and $1,227 million (apparel) in October 2024.

Exports of jute and carpets dropped 27.27% and 15.8% respectively, and cotton yarn, fabrics, and made-ups went down 13.31%.

“Many buyers in the U.S. who were placing orders with us regularly are still doing so. But, we are supplying at heavy discounts,” said A. Sakthivel, vice chairman of the Apparel Export Promotion Council (AEPC).

The garment exporters got the spring season orders. But the summer orders are slow. Things may improve with a bilateral trade agreement expected soon and the support measures announced by the Indian government, said Mithileshwar Thankur, secretary general of the AEPC.

The Cotton Textiles Export Promotion Council Executive Director Siddhartha Rajagopal said yarn exports to China did see a slight improvement. But supplies to other markets slumped. Fabric movement is also sluggish. Exporters were earlier front-loading the goods, and hence there was a good movement in August-September. They are offering 15% to 25% discount now to the U.S. buyers. “One season is gone. In markets other than the U.S., the competition is high,” he said.

He urged the Central government to look at the textile industry as one integrated value chain and offer financial support to the entire value chain.

Meanwhile, in a notification issued on Tuesday (November 18, 2025), the Union Ministry of Textiles rescinded the order issued on December 29, 2022, thus removing the Quality Control Order on viscose staple fibres.

Removal of the QCO will strengthen the manmade fibre ecosystem and benefit the industry in the long-run. The tariff issue should be resolved to address the current challenges, said Durai Palanisamy, chairman of the Southern India Mills’ Association.

Viscose staple fibre and several speciality fibres within this order are critical inputs for several value-added garments and made-ups. Revoking the QCO for viscose fibres and polyester yarn and fibres will address the price and availability concerns raised by the users of these raw materials in the MMF segment. This measure will contribute significantly to raising the competitiveness of the Indian textile and apparel sector, said Ashwin Chandran, chairman of the Confederation of Indian Textile Industry.

The Textile Ministry also said on Tuesday (November 18) that 17 new applications for a cumulative investment of ₹2,374 crore were approved under the Production Linked Incentive Scheme, round three. The proposed projects are expected to achieve projected sales of over ₹12,893 crore and generate employment for about 22,646 persons in the coming years.

The PLI Scheme for Textiles was notified on September 24, 2021, with an approved outlay of ₹10,683 crore to promote the production of MMF apparel and fabrics, and products of technical textiles.