India’s textile sector could see strong export growth in the coming years. A new report by Jefferies says global brands are looking beyond China for their sourcing needs.
This shift could benefit India. However, the country faces one major challenge. India needs to increase its focus on man-made fibres (MMF).
China+1 strategy may boost Indian textile exports
Global companies are following a “China+1” strategy. They are adding new manufacturing and sourcing locations outside China.
India is well placed to benefit from this trend. The country has a large textile industry and a strong supply chain.
India also has access to raw materials and a skilled workforce. Government support could further help the sector.
According to Jefferies, India’s textile and apparel exports are worth around USD 37 billion.
The global textile and apparel market is much larger. It is currently worth more than USD 900 billion.
Apparel makes up about 60 per cent of global textile and apparel trade. This gives Indian exporters a large market to target.
Man-made fibres remain a key challenge
India has a strong cotton textile industry. However, global demand is changing.
More buyers are looking for man-made fibre (MMF) apparel. Demand is also rising for sportswear, athleisure and technical textiles.
India has a smaller presence in these segments.
As a result, the country may need to increase MMF production. It will also need more capacity to make MMF-based garments.
Jefferies believes this shift will be important for India’s future export growth.
Home textiles offer major opportunities
Home textiles are another bright spot for India.
The segment accounts for around 7–10 per cent of global textile and apparel trade. Demand is supported by housing growth and renovation spending.
Consumers are also spending more on home décor and premium products.
India already has a strong position in the US market.
Indian companies have an estimated 45–60 per cent share in key US home textile categories. These include bed linen and towels.
However, India’s share in the UK and European markets is much lower.
Its share in key categories is estimated at around 5–25 per cent. Therefore, there is significant room for growth.
FTAs could improve export prospects
Free Trade Agreements could give Indian exporters another advantage.
The India-UK Free Trade Agreement came into effect in July 2026. It could improve access for Indian textile companies in the UK market.
A possible India-European Union FTA could provide another boost. Jefferies expects such an agreement could take effect from 2027.
Together, these markets represent a major opportunity for Indian exporters.
The UK and EU could provide preferential access to a textile and apparel import market worth around USD 220 billion.
India can gain market share
The US, EU and UK are among the world’s biggest apparel markets.
Together, they account for more than USD 300 billion in apparel imports.
Cotton remains important in these markets. For example, cotton accounts for around **43 per cent of EU apparel
