India Set to Reclaim Global Textile Dominance

India's textile sector is on the verge of a resurgence in the global market, driven by policy reforms, new trade agreements, and strong domestic demand. A report by Emkay Research outlines key growth drivers and the potential benefits from FTAs and government initiatives in reinforcing this growth trend.

India is strategically positioned to recapture its lost dominance in the global textiles and apparel industry, bolstered by significant policy reforms, upcoming free trade agreements (FTAs), and favorable tariffs, according to a detailed exploration by Emkay Research. These measures, coupled with robust domestic demand, are expected to propel India’s industry back to the forefront.

Historically a powerhouse, India's share in the global apparel trade has stagnated at 3-4% over the past 15 years, noted the report. Now, with the sector at a pivotal juncture, several structural developments like the enhancement of the domestic man-made fiber ecosystem and the introduction of Production Linked Incentive (PLI) schemes, could mark a turnaround.

The research highlighted India's competitive edge with tariff advantages in the U.S. compared to China, bolstered by GST reforms and a burgeoning domestic market. Noteworthy opportunities lie in upcoming FTAs with the EU and UK aimed at removing import duties on Indian textiles, potentially boosting the country's market share over rivals like Bangladesh and Vietnam.