The first half of 2026 proved to be a challenging period for India’s textile and apparel sector in the United States market. According to trade data released by the Office of Textiles and Apparel (OTEXA), the shipment value of India's textile and garment products to the US fell sharply by about $1.25 billion, or 23.3 per cent, compared to the corresponding period in 2025.

US textile and apparel imports from India dropped to approximately $4.10 billion during January–June 2026, down from $5.35 billion a year earlier. This contraction was more than three times the 7.1 per cent decline seen in overall US textile and apparel imports, which fell to $47.67 billion from $51.33 billion. Consequently, India's calculated share of the US import market declined to around 8.6 per cent in H1 2026, down from about 10.4 per cent in H1 2025.

Tariff-related uncertainty affecting Indian suppliers during the order-placement cycle is believed to have driven this steep decline. Prevailing conditions in late 2025 and early 2026 likely influenced US buyers' sourcing decisions for spring and summer merchandise. Even after tariff pressure eased, trade flows did not instantly reverse because sourcing commitments and production schedules are fixed well in advance.

Despite weaker overall demand, the relative performance of competing destinations suggests the decline was not purely demand-driven. ASEAN textile and apparel shipments to the US increased by 4.5 per cent year-on-year to $15.34 billion. Vietnam grew its shipments by 3 per cent to $8.78 billion, Cambodia surged 11.3 per cent to $2.68 billion, and Indonesia posted a 3.6 per cent increase to $2.69 billion. Bangladesh also outperformed India, with US imports from Bangladesh declining by 5.3 per cent to about $4.12 billion—marginally exceeding India’s figures. Meanwhile, although China recorded the largest absolute drop among major suppliers, India failed to capture the resulting vacancy, leaving competitors to gain ground instead.