India loses global market share as apparel exports fall over seven years

NEW DELHI : Despite notable growth in recent months, India remains the only major textile-exporting country to have seen a decline in apparel exports over the past seven years. During this period, India has also lost significant share in the global apparel market.

Apparel exports rose 10 per cent in FY25 to $15.9 billion, supported by strong demand from the US and Europe. Slower shipments from Bangladesh also helped Indian apparel exporters gain some ground. According to World Trade Organization (WTO) data, India’s exports grew 6.5 per cent to $16.36 billion in calendar year 2024. In the first two months of the current fiscal, apparel exports registered a 12.8 per cent rise.

However, among the top nine apparel-exporting nations, India is the only one to have recorded a decline in shipments compared to 2017. That year, India’s apparel exports stood at $18.41 billion, which dropped to $16.36 billion in 2024. Exports had slumped to $12.97 billion by 2020 and have been gradually recovering since then.

Meanwhile, global textile exports increased from $454 billion in 2017 to $557 billion in 2024. Competitor countries such as China, Bangladesh, Vietnam, Turkey, Cambodia, and Indonesia have all expanded their apparel exports during this period.

“India has posted a negative CAGR in apparel exports during the period, while the rest of the major textile exporters have improved their shipments,” said Sanjay Jain, Chair of the ICC National Textiles Committee. India’s share in the global apparel market fell from 4.05 per cent in 2017 to 2.94 per cent in 2024.

China, which has been gradually moving away from labour-intensive textile manufacturing due to rising labour costs, saw its apparel export share drop from 34.86 per cent to 29.64 per cent in the same period. This shift presented an opportunity for others to fill the gap.

However, India failed to capitalise on that space. Countries that successfully increased their market share during this time include Bangladesh, Vietnam, Cambodia, and Pakistan.