India’s textile and apparel exports to the United States recorded a sharp decline in February, reflecting weak demand and intensifying competition from regional peers.

Shipments from India fell 28.7% year-on-year, significantly underperforming compared to Bangladesh, which saw a 16.4% drop, while Vietnam posted a 5% growth, according to data from the Office of Textiles and Apparel. Imports from China registered the steepest contraction at 45.2%, as per analysis by the Confederation of Indian Textile Industries.

The sharp fall has raised concerns over India’s declining market share in the US, with buyers increasingly shifting sourcing to competing markets such as Bangladesh and Vietnam. Industry experts note that despite the rollback of additional US tariffs in February 2026, the expected recovery in orders has yet to materialise.

Exporters indicate that regaining lost business remains a challenge, as many US buyers have diversified sourcing strategies amid tariff uncertainties. Rajat Jaipuria said a significant number of buyers had moved away from India to mitigate risks, with only partial recovery in client relationships so far.

The trend underscores ongoing pressure on India’s textile exports, driven by subdued demand in key markets and heightened global competition.