India’s share of global apparel exports remains around 3%, even as China’s dominance in the international clothing market has weakened, highlighting significant scope for India to expand its presence, according to a recent industry report.
China continues to account for the largest share of global apparel exports, but rising production costs, changing sourcing strategies and the China+1 approach adopted by international buyers are encouraging brands to diversify their supply chains.
The report said India has several advantages that could support higher apparel exports, including a large textile manufacturing base, availability of raw materials and an established domestic supply chain. However, India’s relatively modest share indicates that these strengths have yet to translate into a proportionate increase in global market penetration.
Free Trade Agreements (FTAs) could provide an additional boost by improving market access and making Indian garments more competitive in key export destinations. Greater utilisation of existing trade agreements and faster implementation of new pacts could help Indian manufacturers attract global sourcing orders.
The report also highlighted the need to improve scale, productivity, logistics, compliance and turnaround times to compete more effectively with major apparel-exporting countries such as China, Bangladesh and Vietnam.
The global shift towards supply-chain diversification presents an opportunity for India to increase its role in international apparel sourcing. Industry players are expected to benefit from growing demand for alternative manufacturing locations, provided India can address cost and competitiveness challenges.
With global buyers continuing to diversify sourcing under the China+1 strategy, the report suggests that FTAs, manufacturing scale and stronger supply-chain capabilities could help India raise its share of the global apparel export market.