“Brands are more willing to source high-value or fashion items from India compared to less politically stable countries, as they are confident they will be able to produce and receive their products,” the report noted.
India’s domestic market still accounts for about four-fifths of production.
India’s political stability is a key factor for US buyers, making the country a reliable choice for sourcing apparel, a report by the US International Trade Commission noted.
Praising India’s competitiveness, particularly in cotton garments, the report says key challenges for the industry that hinder scalability include increased labour costs, small production units and expensive logistics.
Praising India’s competitiveness, particularly in cotton garments, the report outlines key challenges for the industry that hinder scalability. These include increased labour costs, small production units and expensive logistics.
The limited capacity for manufacturing man-made fibre (MMF) garments restricts India’s growth potential as well, with some brands perceiving the country as overly specialised in cotton products, the USITC report observed.
The report also compares India with other leading garment exporters, including Bangladesh, Pakistan, Indonesia, and Cambodia, noting that these countries, along with Vietnam, have gained market share from China over the past decade.
China’s share in US apparel imports has significantly dropped from 37.7 per cent in 2013 to 21.3 per cent in 2023. During the same period, India’s share grew from 4 per cent to 5.8 per cent, with exports to the United States reaching $4.6 billion last year.
The United States remains India’s largest market for apparel exports. One of India’s key advantages lies in its vertical integration, particularly in the cotton garment sector. The availability of most inputs domestically enhances the country’s appeal as a reliable supplier with a comprehensive value chain, the USITC report said.
With a third of India’s apparel exports heading to the United States, the country has solidified its position as the fourth-largest supplier to the US market. However, addressing challenges related to labour costs, production capacity and MMF manufacturing will be essential for sustaining and expanding this momentum, it added.
Fibre2Fashion News Desk (DS)
