International 05-05-2025 Hits: 147

India’s Apparel Exports: Big Potential, Low Share

International 05-05-2025 Hits: 147

International 05-05-2025 Hits: 147

Despite having the world’s second-largest vertically integrated textile industry, India’s share in global apparel exports remains below 5%.

The reasons are well-known—high logistics costs, bureaucratic hurdles, fragmented manufacturing, and a slower adoption of modern compliance and efficiency standards compared to competitors like Bangladesh and Vietnam.

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Here are three key tips for India to break out of this stagnation and capture a larger share of the global market:

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1. Specialization Over Generalization

Indian exporters often produce a wide range of products instead of dominating specific categories. Bangladesh mastered knitwear; Vietnam excels in synthetics and sportswear, while China dominates technical textiles.

India should build clear product specialization in key categories like sustainable cotton, performance wear, or value-added synthetics rather than trying to be a generalist.

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2. Scale & Efficiency Through Consolidation

The industry is highly fragmented, with thousands of small to mid-sized players lacking scale efficiency. This limits productivity, investment in automation, and global competitiveness.

India should promote large-scale apparel manufacturing clusters with plug-and-play infrastructure like those in China or Vietnam, making it easier for brands to source at scale.

Faster adoption of AI-driven automation, smart factories, and digitized supply chains will be key to improving lead times and cost competitiveness.

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3. Proactive Trade & Investment Strategy

Unlike Vietnam, India does not have an FTA with the EU or the US, making its exports more expensive due to tariffs.

India must accelerate trade agreements and strengthen its positioning in global supply chains, especially as brands look for China+1 alternatives.

Foreign investment in apparel manufacturing must be encouraged, particularly in high-tech and sustainable production facilities.

If India takes these steps seriously, I see no reason why it can’t push past the 5% global market share mark and become a true powerhouse in apparel exports.

CREDITS: Cem Altan | President | International Apparel Federation (IAF).

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