In 2024, the global textile and apparel (T&A) market was valued at approximately $875 billion, with apparel dominating the trade, accounting for around 60 per cent of the total share. According to Wazir Advisors, China ($296 billion) emerged as the leading T&A exporter, holding a significant 34 per cent share of global trade. Vietnam secured the second position with exports worth $44 billion (5.02 per cent), followed by Bangladesh at $42 billion (4.80 per cent) and India at $37 billion (4.22 per cent).
While the Russia-Ukraine war and Red Sea conflict affected consumer demand (especially in the Europe) in 2023, the global textile and apparel (T&A) trade has shown signs of recovery since the second half of 2024. Key factors contributing to this recovery include improving consumer sentiment, a gradual resurgence in demand for casual and athleisure wear, and easing supply chain disruptions. While the recovery remains cautious, it points toward a potential positive trajectory for the industry.
After a sluggish performance in recent years, India’s T&A exports have also began to recover in FY2024-25. The Ministry of Textiles has set an ambitious target of achieving $100 billion in exports by 2030-31, requiring an accelerated growth rate of 14 per cent from 2024-25 onward. However, achieving this goal will be challenging, given that the Indian T&A industry has recorded modest growth of just 2 per cent CAGR over the past five years. To strengthen its position in the global T&A trade, India must implement a range of measures to drive faster growth.
According to experts, higher costs of raw materials such as cotton, viscose, and polyester (due to import taxes along the upstream value chain) are affecting India’s competitiveness in the textile sector. Hence, reducing import duties on raw materials can lower costs, boost value addition and increase competitiveness; thus helping to capture global market share. While competitors like Bangladesh, and Vietnam have free access to such raw materials, India has imposed QCO on MMF fibre/yarn, which is acting as a non-tariff barrier on the imports of such raw materials and thus affecting their free flow. This has resulted in a shortage of some specialised fibre or yarn varieties which has also affected domestic prices. Government must ensure availability of raw materials at international competitive prices.
Signing free trade agreements (FTAs) with western nations such as the UK and the European Union could unlock significant growth potential for India’s textile and apparel sector. However, while progress is being made, the finalisation of these FTAs is taking longer than anticipated.
Another critical challenge is the adoption of advanced technologies in the Indian T&A industry, which relies heavily on imported high-speed, cutting-edge machinery due to the limited availability of high-quality locally manufactured machines. Some experts warn that implementing Bureau of Indian Standards (BIS) regulations on textile machinery may restrict access to global technology, potentially hindering industry growth, especially as international demand for T&As is poised for a strong revival. To address this, a few industry associations have urged the Union Textile Ministry to defer BIS implementation for two years.
Additionally, the government is encouraged to leverage plug-and-play infrastructure, such as the PM MITRA (PM Mega Integrated Textile Region and Apparel) parks, to attract large-scale global investors. While the Production Linked Incentive (PLI) scheme for MMF and technical textiles is already in place, the industry is now advocating for the inclusion of garments within the scheme to further bolster growth.
Factors like revival in exports, possibility of higher tariff on Chinese originating goods by US, regime change in Bangladesh impacting the country’s supply chain, etc may present a golden opportunity for the India T&A industry to foster export growth in the near future. But, is the industry ready?