You may use the Serre-Swan theorem: It says there is an equivalence between the category of finite rank projective $C^{\infty}(X)$-modules and the category of finite rank real smooth vector bundles on $X$.
If $di: T(X) \rightarrow i^*T(Y)$ is the tangent mapping and $N_X(Y):=coker(di)$, the Serre-Swan theorem proves the following: Let
$$di^*: T(X)^* \rightarrow (i^*T(Y))^*$$
be the corresponding map of projective $C^{\infty}(X)$-modules. Since $T(X)^*$ is projective and $di^*$ is injective it follows $di^*$ splits and you get an isomorphism
$$S1.\text{ }T(X)^* \oplus N_X(Y)^* \cong (i^*T(Y))^*$$
and $(i^*T(Y))^*$ is a trivial $C^{\infty}(X)$-module of rank $n$ since $T(Y)$ is the trivial vector bundle of rank $n$. It follows there is an isomorphism of vector bundles
$$T(X) \oplus N_X(Y) \cong (i^*T(Y)).$$
Note: If $R$ is a commutative unital ring and $P$ is a finite rank projective $R$-module it follows for any surjection $\phi: M \rightarrow N$ of left $R$-modules and any map $g:P \rightarrow N$ there is a lift $g^*: P \rightarrow M$ with $g^* \circ \phi=g$. A similar result holds dually for injections. Apply this result to the map $di^*$ to get the splitting in $S1$.
Example: If $\phi: R^n \rightarrow P \rightarrow 0$ is a surjection with $P$ a projective $R$-module, there is a section $s:P \rightarrow R^n$
with $p \circ s= Id_P$ the identity map. Let $\psi:= s \circ p$. It follows
$$ \psi \circ \psi = s \circ p \circ s \circ p = s \circ p = \psi,$$
hence $\psi \in End_R(R^n)$ is an idempotent. It follows $R^n \cong ker(\psi)\oplus im(\psi) \cong Q \oplus P$ where $Q:=ker(\phi)$. Since $T(X)^*$ and $N_X(Y)^*$ are projective modules this argument implies the splitting in $S1$.
This type of reasoning proves the result in general: If
$$0 \rightarrow E \rightarrow F \rightarrow G \rightarrow 0$$
is an exact sequence of finite rank vector bundles on $X$ it follows
$$S2.\text{ }0 \rightarrow E^* \rightarrow F^* \rightarrow G^* \rightarrow 0$$
is an exact sequence of projective $C^{\infty}(X)$-modules. It follows $S2$ splits. Hence there is an isomorphism $F\cong E\oplus G$.
Note: The Serre-Swan theorem is a classical result in differential geometry relating finite rank vector bundles on manifolds to finite rank projective modules on commutative rings. Similar result hold for complex holomorphic vector bundles on complex manifolds and algebraic vector bundles on algebraic varieties.
https://en.wikipedia.org/wiki/Serre%E2%80%93Swan_theorem