Garment manufacturing in India: A story of growth and promise
Report by ApparelOutlook.net
In a modest workshop in Mumbai’s garment hub, 28-year-old Anita deftly binds the final stitches on a batch of vibrant kurtas. Her skilled hands bring each design to life—a reflection not just of fashion, but of India’s expanding garment manufacturing industry. Families like Anita’s rely on this sector for steady income, empowerment, and hope. Their stories mirror the resurgence of garment manufacturing in India, now poised for global prominence.
From Heritage to High Growth
India has long been a textile and apparel powerhouse, rooted in centuries-old craft — from handloom to high fashion. Today, it stands as the fourth-largest exporter of textiles and clothing globally, contributing around 2.3% of the nation’s GDP and directly employing over 45 million workers
In FY2023–24, apparel exports soared to US$ 35.58 billion, accounting for 8.21% of India’s total exports. The domestic textile and apparel market achieved a remarkable CAGR of 14.6%, growing from US$ 172.3 billion in 2022 to an expected US$ 387.3 billion by 2028.
What’s Fueling the Momentum?
1. Export Growth : In just the first half of 2024–25, ready-made garment exports rose 11.6% to US$8.73 billion, led by booming orders from the US and UK.
2. Government Support & Policy Push: Ambitious schemes like PLI, MITRA, and SITP are boosting production capacity and modernizing infrastructure. The government’s vision—targeting US$ 100 billion in apparel exports by 2030 and US$ 350 billion in market size—is reshaping the sector.
3. Rising Sustainability: India leads in organic cotton production and sustainability efforts. With 300+ GOTS-certified units and programs like circular economy practices, it’s positioning itself for the green future of fashion.
4. Tech & Innovation: Automation, AI, smart textiles, and digitization are transforming manufacturing. AI-powered design, digital printing, and 3D knitting improve efficiency and meet evolving global trends.
5. Global Shifts Favor India: Tariffs imposed on competitors and diversification of sourcing have made India a preferred alternative for global brands.
Navigating Challenges
While India’s apparel industry shows strong growth, it faces key hurdles:
High Costs: Production costs remain higher than competitors like Bangladesh.
Raw Material Volatility: Rising cotton prices and imports strain margins.
Trade Barriers: U.S. tariffs and export costs threaten competitiveness.
Labor Turnover: Skilled labor shortages continue in major hubs like Tiruppur.
Global Ranking: Where does India stand?
According to IBEF and World Population Review, India is the 6th largest exporter in the world for textiles and apparel combined, commanding around 3.9% of global market share as of 2023. In FY 2023–24, India’s textile and apparel exports peaked at US$ 35.58 billion, contributing 8.21% to India’s total exports.
Garment-Specific Exports
When zeroing in specifically on garment (clothing) exports:
According to Textile Insights, India ranks as the 5th largest garment exporter, with US$ 15 billion in garment exports (approximately 3% of the global garment trade) as of 2023.
Another source lists India as the 4th largest garment exporter, with a 5% global share, though this may include a broader range of apparel categories.
Year-over-year, India’s garment exports are showing growth—analysts reported an 11.3% increase in May, signaling strong momentum, according to The Times of India.
The Road Ahead: India’s garment manufacturing sector enjoys strong tailwinds—driven by export demand, policy support, sustainability trends, and technology. Projected to hit US$ 350 billion by 2030, it stands as a beacon of employment, innovation, and economic growth.
Information Source: IBEF, Asia Garment Hub, Fibre2Fashion, IMARC Group, vibeevest.com, Reuters, Financial Times, The Times of India
