The United States stands as the world’s second-largest market for textiles and apparel (T&A), accounting for 15% of global T&A exports. For India, the USA is the single largest export destination, contributing to 28.5% of India’s total T&A exports between January and November 2024.
India’s Position in the US Market
India is the third-largest supplier of T&A products to the USA after China and Vietnam, holding a 10.8% share of the US’s total T&A imports valued at US$ 118.4 billion. In contrast, China remains the dominant supplier with a 25.6% share. However, a significant trend is emerging—while US imports from China have declined at a CAGR of 9.4% over the last five years(2024 to 2020) while imports from India have grown at a CAGR of 9.1% during the same period, highlighting a window of opportunity for India to strengthen its position in the US market.
Trade Balance & Commodity Insights
The US-India trade balance in T&A remains strongly in India’s favor. In 2024, US T&A imports from India stood at approximately US$ 10.8 billion, whereas US exports to India were limited to just US$ 0.41 billion. Notably, India primarily imports fiber products from the USA, with cotton making up 50.6% of total US T&A exports to India. Conversely, India’s exports to the US are dominated by apparel and home textiles, accounting for 81.5% of total shipments.
Strategic Recommendations
Industry experts suggest that India has a golden opportunity to expand its footprint in the US market, especially in light of recent US policy shifts increasing tariffs on key competitors like China, Mexico, and Canada. To capitalize on this momentum, India should explore a Zero-for-Zero trade agreement with the USA for T&A products with necessary safeguards for sensitive products.
Boosting Indian T&A Exports
• A zero-duty structure would create a level playing field for Indian exporters against Vietnam, which benefits from duty concessions.
• With reduced tariffs, India’s T&A exports to the USA could surge to US$ 16 billion within the next three years.
Securing Cotton Imports
• As India remains dependent on cotton imports from the USA, a duty-free access mechanism with quota safeguards could ensure a balanced trade approach.
• With strategic negotiations and industry-government collaboration, India is well-positioned to seize this transformative opportunity in the US T&A market.
