The United States is the world’s second-largest market for textiles and apparel (T&A), accounting for 15% of global T&A exports. For India, the USA remains the largest export destination, contributing 28.5% of India’s total T&A exports between January and November 2024.
India’s Position in the US Textile Market
India ranks as the third-largest supplier of T&A products to the USA, following China and Vietnam, with a 10.8% share of the US’s total T&A imports valued at $118.4 billion. While China dominates with a 25.6% market share, a significant trend has emerged—US imports from China have declined at a CAGR of 9.4% from 2020 to 2024, whereas India’s exports have grown at a CAGR of 9.1% during the same period. This presents a strong opportunity for India to strengthen its presence in the US market.
US-India Trade Balance & Key Commodities
The US-India trade balance in T&A remains strongly in India’s favor. In 2024, US T&A imports from India amounted to approximately $10.8 billion, whereas US exports to India were limited to $0.41 billion.
- India’s Imports from the USA: Primarily fiber products, with cotton accounting for 50.6% of total US T&A exports to India.
- India’s Exports to the USA: Apparel and home textiles dominate, contributing 81.5% of total shipments.
Strategic Roadmap for Growth
India has a unique opportunity to expand its market share in the USA, especially amid recent US policy shifts increasing tariffs on competitors like China, Mexico, and Canada. To maximize this potential, CITI advocates for a “Zero-for-Zero” trade agreement for T&A products with necessary safeguards for sensitive segments.
1. Enhancing Indian T&A Exports
- A zero-duty structure would provide Indian exporters a level playing field against Vietnam, which currently benefits from duty concessions.
- Reduced tariffs could propel India’s T&A exports to the USA to $16 billion within the next three years.
2. Securing Cotton Imports
- As India depends on cotton imports from the USA, a duty-free access mechanism with quota safeguards could ensure a balanced trade approach.
With strategic negotiations and industry-government collaboration, India is well-positioned to capitalize on this transformative opportunity in the US T&A market.
