India could unlock an additional $3 billion to $7 billion in garment exports from its existing manufacturing capacity by transforming its fragmented textile and garment manufacturing ecosystem into a more coordinated production network, according to a new white paper by Vector Consulting Group.
Titled The Missing Stitch: India’s Unfinished Garment Export Story, the white paper was launched at Bharat Tex 2026 in New Delhi. The report calls for a structural shift in the way textile and garment manufacturers plan and coordinate production.
According to the white paper, India is the world’s second-largest producer of textiles and garments but accounts for only around 4% of global textiles and garments trade. This is despite supplying a global garment market valued at $1.45 trillion.
The study estimates that 35% to 45% of fabric produced by Indian mills is exported without further value addition. Vector Consulting Group identifies this as a major opportunity to expand India’s downstream garment manufacturing and export potential.
The report states that weak financial returns in the industry are linked less to labour costs, trade agreements or duty structures and more to the fragmented way fabric manufacturers and garment makers operate. Independent planning, disconnected information flows and misaligned quality processes are cited as factors contributing to value leakage across the supply chain.
The white paper further highlights that sewing efficiency at standalone garment manufacturers and integrated textile companies generally ranges between 58% and 70% of planned levels. On-Time In-Full (OTIF) performance remains between 60% and 80%, compared with the high-90% reliability levels expected by global garment retailers.
To meet existing service levels, manufacturers may also airfreight up to 20% of orders, adding to operating costs and putting further pressure on profitability.
To address these challenges, the report proposes a production ecosystem model. Under this approach, fabric manufacturers would coordinate planning, information, quality, inventory and commercial decisions across partner garment manufacturers.
Vector estimates that better coordination across independent firms could improve sewing efficiency to between 80% and 85%. This, in turn, could increase factory operating profits by 80% to 200%.
The white paper projects that these productivity gains could raise India’s garment exports from $16 billion to between $19 billion and $23 billion. This would potentially unlock $3 billion to $7 billion in additional exports without requiring additional manufacturing capacity.
P. Senthilkumar, Senior Partner, Vector Consulting Group, said India’s textile industry has the capability to compete globally and that the next opportunity lies in building a coordinated production ecosystem.
The white paper was launched during an industry panel discussion at Bharat Tex 2026, where industry leaders discussed the structural changes required to improve value addition, strengthen competitiveness and accelerate India’s garment exports.
Vector Consulting Group is an India-based management consulting firm with more than 200 consultants. Since 2006, the company has worked with organisations across operations, supply chain and distribution, retail and B2B sales, new product development and project management.
The firm’s textile sector clients include Arvind Fashions, Brandix, Blackberrys, Dollar Industries, Pratibha Syntex and Raymond Textiles, among others.
