India is steadily positioning itself as a preferred global sourcing hub for apparel, especially as international buyers diversify away from traditional centers like China and Bangladesh. In line with this shift, India’s garment exports recorded impressive year-on-year growth in April (14.4%) and May (11.3%) 2025, underscoring the sector’s rising global relevance. Recognizing this momentum and the opportunities it presents, India Business and Trade hosted a high-level webinar on “Made in India, Worn Worldwide: Emerging Opportunities in Apparel Exports” on 22nd May 2025.
The session brought together top policymakers, industry leaders, and exporters to explore how India can navigate changing global trade dynamics—especially in the U.S. and EU markets—and address critical supply-side challenges. The discussion focused on key issues such as product diversification, sustainability, trade policy, infrastructure, and technology. Before delving into the expert insights shared during the session, it’s essential to understand the evolving landscape of India’s apparel trade and its export potential.
India is rapidly emerging as a reliable alternative for apparel sourcing, particularly as Western buyers diversify away from traditional hubs like Bangladesh and China. According to data from the Confederation of Indian Textile Industry (CITI), India’s garment exports posted a robust 11.3% year-on-year growth in May 2025, following a 14.4% surge in April. In FY24, the textile and apparel sector contributed 8.21% to the country’s total exports, highlighting its growing strategic importance.
Backed by a strong raw material base, a skilled workforce of 45 million, and projected to reach a market size of US$ 350 billion by 2030, the sector remains central to India’s economic growth ambitions. Recognizing this potential, India Business and Trade organized a webinar titled “Made in India, Worn Worldwide: Emerging Opportunities in Apparel Exports” on 22nd May 2025. The session brought together policymakers, industry leaders, and exporters to explore how India can capitalize on shifting global dynamics—particularly in the US market—and chart a roadmap for sustainable export growth.
Before diving into the key insights from the webinar, let’s take a closer look at the evolving landscape of India’s apparel industry.
India ranked as the 6th largest exporter of textiles and apparel globally in 2023. The sector, including handicrafts, accounted for a significant 8.21% of India’s total exports in 2023-24.
Export performance is influenced by various factors, including global demand, domestic consumption, order flows, and logistics. In early 2024, exports were initially subdued due to geopolitical disruptions in the Red Sea, which impacted export movements during January, February, and March.
Currently, India’s apparel market is stitching together a strong growth story, projected to hit US$109.45 billion in 2025 with a CAGR of 3.26% through 2029. Women’s apparel is leading the charge, contributing nearly half the market at US$53.13 billion. While the U.S. tops global charts, India is making strides with per capita revenue of US$75.25 and an expected volume of 41.4 billion pieces by 2029. Notably, 98% of sales will come from the non-luxury segment, reflecting a booming demand for affordable fashion. Adding to the momentum is a growing shift toward sustainable, ethically made clothing, driven by conscious Indian consumers.
The overall export of textiles and apparel (including handicrafts) grew by 7% during the April-October period of FY 2024-25, reaching US$ 21,358 million, compared to US$ 20,007 million in the same period of FY 2023-24. Major textile and apparel export destinations for India are USA, EU and UK with around 53% share in total textile and apparel exports in FY 2023-24
Among export categories, Ready-Made Garments (RMG) led with US$ 8,733 million, contributing 41% to total exports during April-October FY 2024-25. This was followed by cotton textiles (33%, US$ 7,082 million) and man-made textiles (15%, US$ 3,105 million). While exports of most key commodities increased during this period, wool and handloom exports declined by 19% and 6%, respectively, compared to the corresponding period in FY 2023-24.
Export of Textile & Apparel Including Handicrafts (Apr-Oct)
Source: DGCIS, figures in US$ million*
A substantial portion of textile imports is driven by re-exports and industry requirements for raw materials. As of FY2023-24 India’s textile and apparel imports declined by approximately 15%, falling to US$8,946 million from US$10,481 million in FY 2022-23.
During the April-October period of FY 2024-25, overall imports of textiles and apparel (including handicrafts) registered a marginal 1% decline, reaching US$5,425 million, compared to US$5,464 million in the same period of FY 2023-24.
Import of Textile & Apparel Including Handicrafts (Apr-Oct)
The “man-made textiles” category remained the largest contributor, accounting for 34% (US$ 1,859 million) of total imports during April-October FY 2024-25, primarily due to a demand-supply gap in this sector.
A notable rise in “cotton textile imports”, particularly “long-staple cotton fiber”, suggests an expansion in domestic production capacity. This trend reflects increasing consumption and a move toward greater self-reliance in the industry.
India’s Textile & Apparel export share in India’s overall exports
Source: DGCIS, Value in US$ million
Speaking on recent US-China trade agreement involving significant tariff reductions — from 125% to 10% by China on US goods, and from 145% to 30% by the US on Chinese, Mithileshwar Thakur, Secretary General of the Apparel Export Promotion Council (AEPC) said – “With the recent US-China tariff reductions, the gap between Indian and Chinese export competitiveness has narrowed. However, rather than relying on shifting global trade policies, India must focus on strengthening its internal ecosystem to position itself as a reliable and scalable sourcing hub. This includes expediting the Bilateral Trade Agreement (BTA) with the US, boosting investment in upstream industries like processing and weaving, and addressing key constraints such as labor shortages and limited production capacity. India also needs to realign with global market trends by moving from a cotton-dominant export focus (currently 60:40 in favor of cotton) to man-made fibers (MMF), which globally account for over 70% of demand. Expanding the export product basket and accelerating the implementation of initiatives like the PM Mitra Parks will be crucial. Moreover, industries should shift to labor-surplus states such as Madhya Pradesh, Odisha, and Bihar, which offer strong textile policies and a ready workforce.”
Shobhit Bhushan, Managing Director at Fluidic Fashion shared his insights on Cotton based products that hold the greatest promise for India in the short to medium term stating – “India has strong potential in cotton-based products, given its status as a major exporter of raw cotton. However, it still lags behind countries like Bangladesh, Vietnam, and Cambodia in converting this advantage into competitive finished goods. To bridge this gap, India must focus on increasing value-added production in cotton textiles. Additionally, there’s a growing need to diversify into performance fabrics and smart clothing—segments that offer greater utility and innovation. By integrating fashion technology into garments, such as sports-tech applications, Indian apparel can move beyond being seen as just basic wearables. This shift will enhance product value and global appeal, helping India evolve from a cotton supplier to a leader in advanced textile manufacturing.”
Commenting on global sustainability and traceability standards, Prashant Aggarwal Wazir, MD of Wazir Advisors says – “Sustainability and traceability are no longer optional—regardless of a company’s size, aligning with global ESG norms is essential. Every business must develop an ESG roadmap, focusing on environmental aspects like water, chemical, and energy usage, and tracking their reduction over time. Social responsibility, especially workforce welfare, must also be prioritized—beyond legal compliance, it’s about doing what’s right. To support smaller players, the government should implement clear policies and funding mechanisms. A pilot program—say, for 500 factories—can help establish sustainable standards and provide financial assistance. Without structured support, smaller manufacturers may struggle to comply, risking long-term viability in a market that increasingly demands responsible practices.”
Rahul Mehta, Mentor at Clothing Manufacturers Association of India addressed how India can leverage existing and future Free Trade Agreements (FTAs) to enhance its global apparel export competitiveness stating – “Trade agreements alone cannot drive a significant surge in exports—they are just one of many factors. The real priority is expanding India’s product base. While our overall garment export share may seem small (around 3.75–4%), in our current niche segment, it likely stands closer to 12–15%. However, growth within this limited scope has its ceiling. Without diversification, we can’t expect a major jump in market share.
Another issue is complacency. We often assume that any positive global shift—like the end of quotas or the “China Plus One” strategy—will automatically benefit India. But such changes apply to our competitors too. Real progress requires proactive strategy, not assumptions that buyers will come rushing without effort.”
Sharing his insights on steps that are being taken by exporters to improve India’s supply chain responsiveness Mahesh N. Sanil, Executive Director and CEO at Powerloom Development and Export Promotion Council says – “To boost export competitiveness, companies must focus on four key areas. First, diversify sourcing to reduce dependence on single locations and mitigate risks. Second, invest in technology—MSMEs and large firms alike should adopt digital solutions to improve supply chain visibility, track shipments, and optimize logistics. Third, upgrade infrastructure, including transport networks, warehouses, and ports, to cut transit times and costs. Finally, invest in specialized logistics like cold chain systems to meet specific industry needs and ensure timely delivery to global markets.
Despite its strong global standing, several key challenges must be addressed for India to secure the top position in the textile and apparel industry.
India’s textile and apparel industry continues to grow, supported by strong government initiatives such as PM MITRA Parks, the PLI Scheme, and the National Technical Textiles Mission. Policies like RoSCTL, FTAs, and custom duty reductions aim to enhance export competitiveness and boost manufacturing. While challenges like high raw material costs and global economic uncertainties persist, efforts in infrastructure, skilling, and innovation are driving progress. With increasing domestic production, strategic trade agreements, and a focus on sustainability, India is gearing up to strengthen its position as a global textile leader, ensuring long-term growth and self-reliance in the sector.
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