China’s share of world apparel exports declined from 36.9 per cent in 2010 to 27.3 per cent in 2025, while India’s share slipped marginally from 3.2 per cent to 3 per cent during the same period. Bangladesh and Vietnam, meanwhile, increased their combined share from about 7 per cent to over 13 per cent.
“The China+1 wave has led to moderation of this share by ~9.6%. This contraction in Chinese export dominance has released US$50-60bn in floating volume into the global sourcing matrix,” PL Capital said in its Textiles Sector Report.
The report said Bangladesh and Vietnam had been the main beneficiaries of this shift so far, aided by lower production costs, trade agreements and integrated manufacturing ecosystems.
“India, by contrast, still lacks integrated hubs combining fiber, fabric and fashion under one roof, and carries a materially higher cost of capital. As a result, India’s share has been broadly stagnant,” it said.
PL Capital, however, said several factors are now converging to improve India’s position, including supply-chain diversification away from China, policy support under schemes such as PLI (Public Linked Incentive) scheme and PM MITRA and better access to major export markets through trade agreements.
India’s textile and apparel exports stood at about USD 37 billion in FY26, with ready-made garments accounting for the largest share at 44 per cent. The country accounted for around 4 per cent of overall global textile and apparel exports in 2025.
The report said the opportunity would not benefit all textile companies equally, as global brands are increasingly consolidating orders with fewer and larger suppliers.
“Buyers are consolidating vendor lists around partners that can offer capacity, reliability, traceability, ESG compliance and multi-country supply resilience,” PL Capital said.
It added that scale remains a key constraint for India, with fragmented garmenting capacity, longer lead times, limited depth in man-made fibres and slower technology adoption compared with China, Vietnam and Bangladesh.
The brokerage said the next phase of growth is therefore likely to favour large, organised and execution-focused apparel manufacturers that can offer scale, faster delivery and integrated supply chains.
India’s share in global apparel exports remained largely stagnant at around 3 per cent in 2025 even as China’s share fell by nearly 10 percentage points from its 2010 peak, leaving a sizeable sourcing opportunity that India could tap through the China+1 strategy and improving trade access, according to PL Capital sector report.
