As India strengthens its position as a key global hub for apparel sourcing, the US International Trade Commission (USITC) attributes its industry growth to India's political stability, which appeals strongly to US buyers.
According to the Ministry of Commerce and Industry, India’s stability enables it to manage risks and meet production deadlines of the complex global garment chains, making it an increasingly attractive sourcing destination.
Over the past decade, India's share in US apparel imports has grown steadily from 4 per cent in 2013 to 5.8 per cent in 2023. In 2023, India exported $4.6 billion in apparel to the US, positioning it as the fourth-largest supplier. This trend reflects rising confidence in Indian-made garments as the US shifts some sourcing away from China.
Political stability is essential for maintaining efficient supply chains, particularly in time-sensitive industries like apparel, the USITC report highlights. While disruptions and delays due to political unrest often impact apparel supply chains in countries like Bangladesh, India’s relatively stable environment provides a dependable alternative, especially in high-value, fashion-focused apparel.
India’s competitiveness in the apparel industry is driven by several factors, including vertical integration, which allows it to manage all stages of production from cotton farming to garment manufacturing. This self-reliance limits dependency on external suppliers, enabling more efficient and reliable production.
Additionally, India’s large, skilled labor force excels in producing high-quality, customised garments that are increasingly popular in global markets. Government initiatives such as the Production Linked Incentive (PLI) Scheme have further bolstered India’s manufacturing capabilities by encouraging investments in technology and innovation, expanding production capacity to meet rising demand.
India’s focus on cotton-based garments, supported by its role as one of the world’s largest cotton producers, offers a competitive edge in the US market, where cotton apparel remains in high demand. This focus aligns with India's established strengths and provides a valuable niche in the broader US apparel market.
The USITC report compares India with other major US apparel suppliers, such as Vietnam, Bangladesh, Indonesia, and Pakistan. Vietnam holds 17.8 per cent of the US market, excelling in both cotton and synthetic fiber garments but facing rising labor costs. Bangladesh benefits from low labor costs and duty-free access to the US but is hindered by political instability. India, on the other hand, boasts advantages like vertical integration, skilled labor, and government support, though challenges remain in labor costs, infrastructure, and limited capacity for man-made fibers.
As India addresses challenges related to labor productivity, fiber diversification, and infrastructure, its apparel sector is positioned for further growth in the US market. With its focus on reliability, high-quality production, and political stability, India is emerging as a strong and dependable partner for US buyers in an increasingly competitive global apparel industry.
