The Indian textile and apparel industry is riding high on the latest report from the US International Trade Commission (USITC). The report highlights India’s growing prominence as a reliable and competitive source of apparel for American buyers.
A key factor driving this shift is India’s political stability. The USITC noted that brands are increasingly comfortable sourcing high-value and fashion items from India, recognizing the country’s ability to consistently produce and deliver products. This confidence is a significant advantage over other less stable sourcing destinations.
While China’s dominance in the US apparel market has declined, India has steadily gained ground, increasing its market share from 4% to 5.8% between 2013 and 2023. With exports worth $4.6 billion last year, India now ranks as the fourth-largest apparel supplier to the US.
India’s strong vertical integration, particularly in cotton garments and high-value-added products, has been a major contributor to its competitiveness. The availability of domestic inputs has helped mitigate risks associated with global supply chain disruptions.
However, the industry still faces challenges such as rising labour costs, small-scale manufacturing units, and high logistics costs. The USITC report also noted that some brands perceive India as well-suited for cotton products but less so for man-made fibre (MMF) goods, which has limited increased sourcing from the country.
Despite these challenges, the Indian textile and apparel industry remains optimistic. Mithileshwar Thakur, Secretary General of the Apparel Export Promotion Council (AEPC), expressed satisfaction with the USITC’s recognition of India’s reliability and product differentiation. He emphasised that India’s ability to manufacture all items within the value chain makes it a resilient and dependable sourcing partner.
As the global apparel landscape continues to evolve, India’s growing prominence as a reliable and competitive sourcing destination is poised to further strengthen its position in the international market.
