India’s Textile Exports Set To Gain Momentum On Global Demand Recovery: Motilal Oswal

New Delhi, Jun 23 (KNN) India’s textile and apparel exports are expected to gain momentum in the coming years, supported by declining Chinese export share, improving global demand conditions and new trade agreements, according to a report by Motilal Oswal.
 
Improving Global Demand to Boost Orders
 
The report said global apparel retailers are becoming more optimistic, supported by stabilising inventories, better sell-through trends and a gradual recovery in discretionary demand in key markets like the US and Europe. 
 
This improved outlook is expected to enhance sourcing visibility and ordering cycles, benefiting Indian textile exporters through stronger order inflows, higher capacity utilisation and improved margins, reported ANI.
 
India–UK FTA Seen as Key Near-Term Catalyst
 
A key near-term catalyst is the India–UK FTA, which is expected to improve the competitiveness of Indian textile and apparel exports in the UK market. 
 
The UK imports nearly USD 20 billion worth of apparel annually, but India holds only about a 6 percent share due to an 8–12 percent tariff disadvantage compared with competitors like Bangladesh, Turkey and Cambodia that benefit from preferential access.
 
Duty Removal to Level Playing Field
 
The report said eliminating import duties under the proposed FTA would help level the playing field for Indian exporters and strengthen their position in a key global sourcing market. 
 
It added that India could mirror Vietnam’s experience, which leveraged trade agreements to significantly expand its role in global apparel supply chains.
 
Declining China Share Creates Opportunity
 
Structural shifts in global trade are also favouring India, with China’s share of global apparel exports falling from 37 percent in 2014 to 29 percent in 2024 due to rising costs and diversification by global brands. 
 
Its share of US apparel imports also declined from 37 percent in 2019 to 22 percent in 2023, creating space for other exporters. 
 
The report said India is well positioned to benefit from this shift, supported by the China+1 strategy, expanding capacity, improved infrastructure and policy support such as the textile PLI scheme and mega textile parks.
 
Stronger Policy Push and Trade Agreements Support Outlook
 
While countries such as Bangladesh and Vietnam have historically benefited from lower costs and preferential trade access, India’s position is improving due to recent trade agreements, expanding manufacturing scale and continued policy support for export competitiveness. 
 
The report added that India’s apparel exports to the UK are expected to grow steadily over the medium term as global brands diversify sourcing in line with shifting supply chains and trade realignments.
 
(KNN Bureau)