The conclusion of the West Asia conflict is anticipated to significantly boost India's textile exports. A projected rise in European orders, coupled with reduced logistics and raw material costs, is expected to improve profit margins and enhance global competitiveness for Indian exporters.
The resolution of the West Asia conflict is expected to revitalize India's textile sector by improving export performance, diversifying markets, and reducing operational costs, thereby enhancing its global competitiveness.
The conclusion of the West Asia conflict is poised to provide a significant boost to India's textile exports, with industry stakeholders anticipating a rise in European orders and an improvement in profit margins. The return to normalcy in the region is expected to ease raw material costs, particularly for polyester and cotton, which had seen price increases due to the conflict.
Ashwin Chandran, Chairman of the Confederation of Indian Textile Industries (CITI), stated that the resolution will support India's efforts to diversify its textile and apparel exports beyond traditional markets. He also noted that a disruption-free Strait of Hormuz will enable more effective utilization of Free Trade Agreements (FTAs). Chandran highlighted that the previous turbulence in West Asia had negatively impacted raw material supplies, supply chains, and industrial energy, putting pressure on the predominantly MSME-dominated textile and apparel industry.
Textile and clothing exports had experienced a decline, with a 14% month-on-month decrease in March 2026 and a 3.5% decrease in April 2026. Apparel growth saw a sharp year-on-year degrowth of -11.66% in April. Polyester prices had risen by 25% since the conflict began, subsequently influencing cotton prices. India's total textile and apparel exports amounted to ₹3.16 lakh crore in 2025-26.
Vijay Agarwal, chairman of the Textile Export Promotion Council (Texprocil), anticipates that the peace agreement will lower logistics and production costs for Indian exporters, thereby increasing their global competitiveness. He noted that global buyers faced greater uncertainty due to increased war risk insurance premiums and higher freight costs, while Indian exporters contended with cash flow disruptions and discount pressures.
Exporters from Tiruppur, a major hub for cotton knitwear exports, are also looking forward to an improved order book, as the closure of the Hormuz Strait had led to delayed shipments and reduced export orders due to buyer uncertainty.