India exports less than one-third of its apparel production while tiny countries like Bangladesh or Vietnam export almost twice as much as India. India’s apparel exports grew around 35 per cent over the last five financial years. However, during the current year, there has been negative growth as of December 2017. The present market conditions indicate that during the full-year, negative growth will only be higher.

Imports into the country, on the other hand, increased by around 82 per cent during the last five years and by 20.64 per cent during April-December 2017. Indications are that the import surge will grow further during the rest of the year. The country’s major export markets have been sluggish because of a slowdown in global economy. During 2017, total garment imports into the US, which is India’s largest single export market, declined by 0.49 per cent compared to the previous year.

India has been specifically targeted by the US in the matter of export subsidies. Textile and clothing exports are likely to be among the first victims since that is an area where India is fairly competitive and has a significant presence in the US market.