India threads ahead: Apparel exports soar as West moves away from China, Bangladesh

With Western nations gradually moving away from traditional apparel powerhouses, India’s textile and garment industry is experiencing an unprecedented wave of momentum.

Once considered a supporting player in the global apparel market, India is now stepping confidently into the spotlight, weaving a success story that blends quality, capacity, resilience, and strategic foresight.

In the first five months of 2025, India's apparel exports have recorded a double-digit year-on-year growth, signalling a remarkable recovery and realignment.

Major brands and retailers from the United States, the European Union (EU), and other key markets are increasingly turning to Indian manufacturers to meet demand—driven not only by geopolitical considerations but also by India's growing capabilities and reputation for reliability.

A new global pivot

The recalibration of global supply chains began during the pandemic but has only accelerated in the past two years.

Rising labour costs in China, a focus on ‘China plus one’ sourcing strategies, and concerns over political tensions have prompted Western buyers to spread their risks.

Bangladesh, while still an important sourcing hub, has seen temporary slowdowns due to domestic factors. Into this space has stepped India—quietly yet assuredly.

Indian apparel exporters have capitalised on the moment with agility.

From Tiruppur and Ludhiana to Noida and Surat, textile clusters across the country have reported full order books, expanded capacities, and a surge in international inquiries.

According to data from the Ministry of Commerce, apparel exports touched $9.1 billion in the first half of FY25, up nearly 20% from the same period last year.

Building on strengths

India’s edge in the apparel sector lies in its vertical integration and diverse product range.

Unlike many competing countries, India enjoys a full textile value chain—from raw cotton production and spinning to weaving, dyeing, printing, and garmenting.

This makes it uniquely equipped to offer comprehensive sourcing solutions to global clients.

Moreover, Indian exporters have matured beyond basic garments to cater to high-value and fashion-forward segments.

Technical textiles, sustainable fabrics, and value-added garments with embroidery, prints, and design innovations have become key growth drivers.

India is no longer just a bulk supplier of t-shirts and trousers—it is a creative force collaborating with international fashion labels on collections that demand both scale and finesse.

The rise in demand for sustainable and ethical sourcing has also played to India’s advantage.

The country’s strong footprint in organic cotton, natural dyes, and eco-friendly manufacturing processes has drawn brands eager to meet environmental, social, and governance (ESG) benchmarks.

Indian firms certified by global standards like GOTS, OEKO-TEX, and SA8000 are increasingly preferred by European and American buyers.

Government policy tailwinds

The surge in apparel exports is not accidental—it is underpinned by strategic government support.

Flagship initiatives like the Production Linked Incentive (PLI) Scheme for textiles and the PM MITRA Parks are reshaping the contours of the Indian textile landscape.

These programmes aim to bolster scale, create world-class infrastructure, and foster innovation-led growth.

The recent Free Trade Agreements (FTAs) with the United Arab Emirates (UAE) and Australia, as well as ongoing negotiations with the UK and European Union, are further opening doors for Indian apparel in lucrative markets.

Exporters now enjoy lower tariffs, faster clearances, and smoother logistics, allowing them to compete more effectively against regional rivals.

India’s customs procedures and port connectivity have also seen significant upgrades, making supply chains leaner and more predictable.

In addition, the push for digitisation and skill development under schemes like SAMARTH is strengthening the industry's human capital.

A spotlight on innovation

What sets India’s apparel exporters apart in 2025 is their embrace of innovation.

Factories are deploying advanced technologies such as AI-powered pattern design, automated cutting systems, 3D virtual sampling, and real-time production monitoring to enhance efficiency and reduce lead times.

This tech-enabled transformation is not just limited to production.

On the marketing front, Indian brands and exporters are leveraging e-commerce platforms and B2B digital trade fairs to access new markets, particularly in Latin America, Africa, and Southeast Asia.

Many mid-sized firms have also invested in their own in-house design studios and R&D teams, allowing them to interpret trends and customise offerings for global brands at speed.

As the global fashion cycle becomes faster and more dynamic, India’s ability to deliver ‘speed to market’ is turning into a powerful competitive asset.

MSMEs at the forefront

While large exporters are scaling up rapidly, the real success story lies in the performance of India’s micro, small and medium enterprises (MSMEs).

These companies, often family-run and deeply embedded in local clusters, have shown incredible adaptability.

By forming producer groups, joining export consortia, and participating in trade delegations, they have been able to tap into export opportunities that were once out of reach.

States like Tamil Nadu, Gujarat, Punjab, and West Bengal are actively nurturing these enterprises through skilling, credit facilitation, and export-readiness programmes.

The result is a more inclusive and geographically diversified export ecosystem, which bodes well for long-term stability.

Global buyers take notice

Major global fashion retailers such as H&M, Zara, Uniqlo, Marks & Spencer, and Gap have stepped up their sourcing from India in recent quarters.

Several are now exploring strategic partnerships with Indian manufacturers to secure long-term supply reliability.

In parallel, luxury and high-street fashion brands are scouting Indian vendors known for intricate handwork and artisanal expertise—an area in which India remains unmatched.

Interestingly, there is also a resurgence of interest in Indian heritage crafts and handlooms, reimagined for contemporary markets.

Exporters are blending traditional techniques like chikankari, ikat, and block printing with modern silhouettes, finding resonance in niche but premium segments globally.

Looking ahead

India’s apparel export growth in 2025 is not just a flash in the pan—it is part of a broader, sustained evolution.

With geopolitical shifts creating new alignments and trade routes, India stands well-positioned to cement its role as a global apparel powerhouse.

Its strengths—in scale, skill, sustainability, and policy support—form a solid foundation for long-term leadership in the global fashion economy.

As Western nations continue to diversify sourcing, India is not merely filling the gap—it is redefining the opportunity.

With every shipment that leaves its ports, India is weaving not just garments but a new chapter of economic ambition, global relevance, and textile excellence.