Continuing their strong double-digit growth, India’s apparel exports rose by 11.3 per cent Y-o-Y in May 2025, as per data by the Confederation of Indian Textile Industry (CITI). This rise comes as Western buyers increasingly turn to India as a reliable alternative to Bangladesh and China for apparel sourcing.
Export momentum picked up significantly due to political instability in Bangladesh following the ouster of the Sheikh Hasina government last August. Exports increased by 17.3 per cent in September to rise further by by 24.35 per cent in October.
Many buyers from developed countries are urging Indian suppliers to expand capacity and obtain key certifications, especially as India gains a duty advantage over China thanks to reciprocal tariffs imposed by the Trump administration.
This export boom offers much-needed relief to India’s apparel sector, which struggled through two years of weak demand after the pandemic.
India’s apparel exports declined post-COVID. Exports stagnated for about two years as consumers purchased fewer new clothes after the excessive buying during the pandemic, says Sanjay K Jain, Chairman, National Textile Committee, Indian Chamber of Commerce.
Green shoots of recovery began appearing after Bangladesh’s political upheaval, as buyers sought stability in their supply chains. Unlike India, Bangladesh’s apparel manufacturers have massive capacity to handle large orders quickly - something Indian exporters are now working to match.
Industry leaders believe India’s export growth will continue, thanks to the tariff advantage over China. There’s a huge opportunity for Indian apparel exporters. The $120 billion US market is the biggest prize. What we need is access to raw materials at competitive prices, adds Jain.
India currently holds a $10 billion share of the US market, compared to China’s $30 billion.
Meanwhile, as apparel exports accelerate, India’s raw cotton imports are also rising, with domestic cotton prices higher than global rates. According to the Cotton Association of India, cotton imports are projected to exceed 3.3 million bales (170 kg each) in 2024-25 — more than double last year’s 1.52 million bales.
