The shifting global appetite for Indian Textiles: Trends and Opportunities
Rajeev Gupta suggests, this is India’s window to claim a larger role. But ambition must be matched with action.
The world is in the midst of a quiet but significant shift in the way it views and sources textiles. This change is not sudden. It is a gradual evolution driven by new trade realities, changing consumer consciousness and the growing importance of sustainability. For India, this transformation brings both promise and responsibility. Responsibility to uphold the centuries-old legacy of craftsmanship while meeting modern demands of scale, quality and environmental care. India has long been a recognised player in the global textile and apparel space. The country holds a 4.2 per cent share in the global textile and apparel trade, with apparel alone accounting for 3 per cent. In the financial year 2023–24, India exported textiles worth 34.4 billion dollars. Its top export destinations are the United States, the European Union, the United Arab Emirates, Bangladesh and even China itself. Yet despite this standing, India has never fully capitalised on its potential to be a leader in this field. Today, as global demand patterns shift and buyers look for more than just cost advantages, India’s opportunity to reposition itself has never been clearer. The global appetite is no longer going to get satisfied by low-cost mass production alone, it demands stories of artisanship, ecological mindfulness and fair practices woven into every thread.
A world redefining its textile priorities
The global textiles and apparel market is projected to touch 1.53 trillion dollars by 2033, growing at a rate of nearly 5.8 per cent every year. Behind this growth lies a fundamental change in priorities. Price competitiveness is still important, but it no longer reigns supreme. Buyers in key markets such as the United States and the European Union, which together account for a significant share of global textile imports, are now driven by other concerns. They want supply chains that are reliable, sustainable and transparent. They want production processes that meet rigorous environmental and labour standards. They want traceability, certifications and proof of responsible sourcing.
China remains the largest supplier, holding 30 per cent of the global apparel trade. But the ground under China’s feet is slowly shifting. Rising labour costs, supply chain disruptions and geopolitical frictions are forcing global retailers and fashion brands to rethink their dependence on one country. This has opened the door for other nations. India is among the few that can walk through this door with scale and ambition.
India’s inherent strengths are hard to overlook. It has a rich supply of cotton and jute. It has a vast domestic market. Its manufacturing ecosystem spans the entire value chain from fibre to garment. But what matters now is whether India can convert these strengths into globally competitive capabilities that meet the new demands of buyers.
Sustainability as a global imperative
Sustainability is no longer an option. It has become a non-negotiable requirement for those who want to stay relevant in the global textile trade. Brands and retailers are under intense scrutiny from regulators, investors and customers who want to see real action on climate and social responsibility. The demand is clear: use recycled fibres, produce eco-certified yarns, reduce water and energy consumption. This will ensure fair labour practices and provide full traceability of materials.
For Indian textile manufacturers, this shift brings both a challenge and an opportunity. The challenge is that most of India’s apparel units are small or medium-sized businesses. In fact, more than 80 percent of them fall into this category. Many of these units do not have enough money or resources to invest in green technologies or get important global certifications like GOTS or OEKO-TEX. The opportunity, however, lies in the growing appetite for sustainable products. Global buyers are eager for partners who can provide organic cotton, recycled polyester and innovative eco-friendly blends. India is among the largest producers of organic cotton. Its traditional strengths in natural fibres can be turned into a competitive advantage if supported by modern processing and certification systems.
Sustainability also brings the promise of higher value realisation. Products made from recycled or certified materials fetch premium prices and offer long-term supplier relationships with top global brands. This is the new playing field where India must compete.
Policy support and export readiness
Recognising this shift, the Indian government has taken measures to build an ecosystem that supports global competitiveness. The Production Linked Incentive (PLI) scheme is one such initiative aimed at boosting the production of man-made fibres and technical textiles. This is important because while India has excelled in cotton, global demand is moving towards synthetic and value-added fabrics, especially for industrial and technical applications.
The PM MITRA scheme is another significant step. It envisions seven integrated textile parks that offer state-of-the-art infrastructure, common processing facilities and better logistics connectivity. This could reduce production and transport costs and will improve turnaround time, which can eventually help India become a preferred sourcing destination. Efficient logistics matter in a world where buyers expect just-in-time deliveries and quick replenishment cycles.
Skill development is also on the agenda. The SAMARTH scheme is designed to train workers in modern textile production techniques. A skilled workforce is essential because the future of textiles will be shaped by automation, smart machinery and green processes that require new expertise.
However, these policy efforts must overcome structural challenges. One of the biggest is the high cost of capital. Interest rates in India hover around 9 percent, significantly higher than China or Vietnam, where rates range between 3 and 4.5 percent. This makes it expensive for Indian manufacturers to invest in new technologies, expand capacities or improve sustainability credentials. Unless this gap is addressed, whether through interest subsidies, lower borrowing costs or foreign direct investment, India’s textile industry may struggle to scale up to global expectations.
The rise of value added and technical textiles
One of the most promising developments in global textile demand is the growing importance of value-added and technical textiles. Buyers are moving away from generic, mass-produced fabrics towards differentiated products that offer functionality, innovation and performance. These include medical textiles, geotextiles for construction and protective fabrics for industrial use. The market for such textiles is expanding rapidly and India is beginning to recognise its potential.
The domestic market for technical textiles is already worth 22 billion dollars and is set to grow further. The government has identified this as a sunrise sector and is encouraging research and investment. Companies that can develop high-performance fabrics with specialised properties stand to gain not only in the domestic market but also in exports, where demand is surging. Similarly, the global fashion industry’s shift towards sustainable fashion is creating new openings for India. Major brands are sourcing garments made from organic fibres, biodegradable materials and low-impact dyes. India’s strength in organic cotton, coupled with its tradition of natural dyeing and handloom techniques, can be turned into premium products for niche global markets.
But to truly benefit from these opportunities, India must invest in technology, innovation and global marketing. It must move beyond the perception of being a low-cost supplier and establish itself as a partner that offers quality, creativity and responsibility.
Challenges that cannot be ignored
The road to becoming a preferred global supplier is not without obstacles. India’s textile industry remains fragmented because of thousands of small units operating without standardisation or modernisation. This results in uneven quality, inconsistent delivery times and low productivity compared to competitors like Bangladesh or Vietnam, which have built large-scale, export-oriented apparel clusters.
Infrastructure gaps also persist. Port congestion, high logistics costs and bureaucratic customs procedures make it harder for Indian exporters to meet the quick turnaround expectations of global buyers. The promise of PM MITRA parks can help, but broader reforms in transport and trade facilitation are necessary.
Most importantly, the lack of affordable capital continues to limit investment in sustainability and modern technology. Without financial support mechanisms such as green financing, interest subvention, or technology upgrade funds, small and medium exporters will struggle to meet the new demands of global markets. Buyer perception is another challenge. India is still largely seen as a reliable but basic supplier. This image needs to change. The country must present itself as a source of innovation, certified sustainability and technical excellence. This requires active branding, participation in international trade fairs and partnerships with global retailers to showcase India’s evolving capabilities.
A defining moment for India’s textile future
The elements of this transformation are already visible. India has the raw material base, the skilled workforce, the policy support, and the growing expertise in sustainability and technical textiles. What it needs now is focused execution. The MSME sector must be brought into the fold of modern practices. Infrastructure and logistics must improve. The cost of capital must fall to competitive levels. And the world must see India not as a backup supplier but as a partner of first choice.
The journey will not be simple. The challenges are real and the global competition is fierce. But if India stays committed to this path, the rewards will be lasting. The country can secure a larger share of the global textile and apparel market, meet the rising demands of sustainability and innovation, and ensure that its textile industry plays a defining role in the future of global trade.
A perspective from the industry
The global market is no longer asking who can supply the cheapest T-shirt or the fastest-made bedsheet. The questions today are deeper. They are about how responsibly the cotton was grown, whether the factory met water conservation norms, and if every link in the chain can be traced and verified.
For Indian exporters, this represents a turning point. India is no longer competing with just price; it is competing with conscience, technology and credibility. Buyers are ready to shift orders from old strongholds like China, but only if they find reliable and forward-looking partners elsewhere. This is India’s window to claim a larger role. But ambition must be matched with action. The industry knows that unless India builds scale, invests in green technology and creates integrated world-class facilities, this opportunity may slip away. The government’s schemes are timely, but their impact will depend on how quickly and effectively they reach the small and medium players.
The decision rests now with Indian manufacturers, policymakers and investors. If they align their efforts, India’s textile sector could well define the next chapter of global trade. This is not merely the future of fabric. It is the fabric of India’s future.
About the author:
Rajeev Gupta is the Joint Managing Director of RSWM. RSWM, the flagship company of LNJ Bhilwara Group, is one of the leading manufacturers and exporters of synthetic, cotton and blended spun yarns in India. Under the leadership of Riju Jhunjhunwala, Chairman and Managing Director of RSWM, the textile company exports a wide range of fabric and yarns to over 70 countries across the globe.
