Apparel export seen dipping in FY26

According to ICRA, if the recently imposed tariffs by the US continue, revenues of apparel exporters may fall by 6-9% in FY2026, despite support from the Free Trade Agreement (FTA) with the UK and diversion of supplies to other geographies. The agency also forecasts a decline in operating profit margins to around 7.5% in FY2026 from 10% in FY2025, as weaker operating performance in the second half of the fiscal year is expected to reduce operational efficiencies. ICRA added that India currently holds a modest 6% share in the US apparel import market. Exporters are expected to work hard to retain their market position, as losing share could make recovery difficult, as per a report.

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