India's Rising Role in the US Apparel Market: Stability and Innovation

India is becoming a key player in the US apparel market, thanks to political stability, skilled labor, and government incentives. With a growing share of US imports, India's focus on high-value, cotton-based garments positions it well despite challenges in labor costs and infrastructure.

India's emerging status as a significant apparel sourcing hub is underscored by a recent report from the US International Trade Commission (USITC), which highlights the country's political stability as a major draw for US buyers. According to India's Ministry of Commerce and Industry, as global garment supply chains grow more intricate, India's reliability in meeting production timelines and managing risks tied to political instability renders it an appealing sourcing destination.

India's share of US apparel imports climbed from 4% in 2013 to 5.8% in 2023, reflecting its growing competitiveness in the high-value apparel sector, as the US continues diversifying its sourcing away from China. In 2023, India's apparel exports to the US reached USD 4.6 billion, making it the fourth-largest supplier to the US market, highlighting the increasing confidence in Indian-manufactured garments and the potential for further market share acquisition.

Political stability is crucial for seamless supply chains, especially in the apparel industry, where punctual deliveries are vital. The USITC report emphasizes how political unrest in nations like Bangladesh often leads to disruptions and delays, thereby diminishing their reliability for high-value and time-sensitive orders. Conversely, India's stable political landscape makes it a trustworthy alternative for US buyers, particularly in high-value, fashion-centric apparel where quality and timely production are key. India's vertical integration across the textile industry, coupled with a vast, skilled labor force, bolsters its appeal, further enhanced by government policies like the Production Linked Incentive (PLI) Scheme encouraging investment in domestic manufacturing.

(With inputs from agencies.)