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Next Big Opportunity for Indian Textile &Apparel: Strategic focus on key product categories for US market share

SanjayJain TT Limited 1

 

A compelling analysis by Sanjay K Jain, Chairman of the ICC National Textile Committee at the Indian Chamber of Commerce, shines a spotlight on a transformative opportunity for India's textile and garment export sector. His analysis into the top textile and apparel items imported by the USA from China in 2024 reveals a significant price advantage for India, fuelled by reciprocal tariffs between the US and China. This price gap, even with potential future adjustments, positions India favourably to capture a substantial portion of the US market, currently dominated by Chinese suppliers. Jain emphasizes that securing consistent access to essential raw materials for Indian garment exporters is the linchpin to realizing this potential.

Untapped Potential: India's miniscule share in high-value US imports

Despite its robust textile manufacturing base, India's current share in the US imports of these high-demand categories is surprisingly low compared to China. Jain's analysis underscores this disparity, highlighting the immense untapped potential waiting to be unlocked.

"The data speaks volumes about the opportunities we are missing," states Sanjay K Jain. "The tariff advantage provides a crucial window, but we must address the fundamental need for readily available and competitively priced raw materials for our garment manufacturers to truly capitalize on this situation."

Strategic Focus: Identifying high-potential product categories

Jain's analysis goes beyond a general overview, pinpointing specific Harmonized System Nomenclature (HSN) codes and product categories where India possesses a particularly strong potential to increase its market share in the USA.

Key Data on USA Imports from China (2024) and India's Position

S.No

HS Code

Commodity

USA's Imports from World (US$ Mn)

USA's Imports from China (US$ Mn)

China's Share (%)

India's Share (%)

1

630790

Made-up articles of textile materials, incl. dress patterns, n.e.s.

5,170.70

3,453.72

66.80%

2.90%

2

630710

Blankets and travelling rugs of synthetic fibres (excl. electric, table covers, bedspreads, etc.)

1,374.37

1,261.70

91.80%

2.20%

3

611596

Full-length or knee-length stockings, socks and other hosiery, incl. footwear

1,532.77

1,095.28

71.50%

2.50%

4

611020

Jerseys, pullovers, cardigans, waistcoats and similar articles, of cotton, knitted or crocheted

7,411.20

1,043.15

14.10%

5.80%

5

611030

Jerseys, pullovers, cardigans, waistcoats and similar articles, of man-made fibres, knitted

4,837.28

995.51

20.60%

0.60%

6

620462

Women's or girls' trousers, bib and brace overalls, breeches and shorts of cotton (excl. knitted)

4,011.92

674.59

16.80%

3.10%

7

630232

Bedlinen of man-made fibres (excl. printed, knitted or crocheted)

782.96

653.39

83.50%

6.30%

8

621210

Brassieres of all types of textile materials, whether or not elasticated, incl. knitted

2,119.78

579.47

27.30%

1.30%

9

630392

Curtains, incl. drapes, and interior blinds, curtain or bed valances of synthetic fibres

1,129.38

559.08

49.50%

1.10%

10

620443

Women's or girls' dresses of synthetic fibres (excl. knitted or crocheted and petticoats)

1,131.78

511.95

45.20%

9.90%

11

611610

Gloves, mittens and mitts, impregnated, coated, covered or laminated with plastics or rubber

852.01

502.45

59.00%

1.20%

12

620240

Women's or girls' overcoats, car-coats, capes, cloaks, anoraks, incl. ski jackets, wind-cheaters

1,346.76

456.27

33.90%

0.60%

13

610832

Women's or girls' nightdresses and pyjamas of man-made fibres, knitted or crocheted

994.75

446.52

44.90%

1.60%

14

620140

Men's or boys' overcoats, car-coats, capes, cloaks, anoraks, incl. ski jackets, wind-cheaters

1,466.97

440.03

30.00%

1.30%

15

630260

Toilet linen and kitchen linen, of terry towelling or similar terry fabrics of cotton

2,121.52

417.55

19.70%

40.60%

16

611430

Special garments for professional, sporting or other purposes, n.e.s., of man-made fibres

1,023.99

404.08

39.50%

0.90%

17

620343

Men's or boys' trousers, bib and brace overalls, breeches and shorts of synthetic fibres

2,300.22

377.44

16.40%

0.90%

18

611012

Jerseys, pullovers, cardigans, waistcoats and similar articles, of hair of Kashmir 'Cashmere'

511.99

354.15

69.20%

0.00%

Source: Analysis by Sanjay K Jain, ICC National Textile Committee, based on 2024 USA Import Data.

Made-up Articles of Textile Materials (HSN Code 630790): This category, encompassing a wide array of textile products including dress patterns, showcases a massive import volume from China ($3.45 billion) with India's share being a meager 2.9%. The significant price difference post-tariffs makes this a prime target for Indian manufacturers, provided they have access to diverse textile raw materials.

Blankets and Travelling Rugs of Synthetic Fibres (HSN Code 630710): With China commanding a 91.8% share of the US import market in this segment, the potential for India is substantial. The high import volume ($1.26 billion from China) coupled with the tariff advantage could make Indian exports significantly more competitive, assuming availability of synthetic fibre raw materials.

Jerseys, Pullovers, Cardigans, Waistcoats (Knitted - HSN 611020 & Man-Made Fibres - HSN 611030): While India has a slightly better footing in cotton knitted garments (5.8% share), its presence in man-made fibre knitted garments is negligible (0.6%). Given the substantial US imports from China in both categories ($1.04 billion and $995.51 million respectively), focusing on strengthening the supply chain for both cotton and synthetic yarns could yield significant gains.

Women's or Girls' Trousers of Cotton (HSN Code 620462) & Synthetic Fibres Dresses (HSN Code 620443): These apparel categories also present considerable opportunities. China's strong hold ($674.59 million and $511.95 million respectively) contrasts sharply with India's smaller shares (3.1% and 9.9%). Access to quality woven cotton and synthetic fabrics will be crucial for Indian manufacturers to effectively compete.

The Raw Material Imperative: The key to unlocking India's export potential

Jain emphasizes that the tariff advantage alone is insufficient. The ability of Indian garment exporters to effectively compete hinges on consistent access to high-quality raw materials at competitive prices.

A Call to Action: Seizing the moment for economic growth

Jain's analysis serves as a clear call to action for the Indian textile industry and policymakers. By strategically focusing on the identified high-potential product categories and addressing the critical need for readily available raw materials, India can transform the current trade dynamics and significantly increase its share in the lucrative US market.

"This is a pivotal moment for the Indian textile sector," concludes Sanjay K Jain. "We have a unique opportunity to leverage the changing global trade landscape to our advantage. By working collaboratively to strengthen our raw material base and empower our garment exporters, India can finally realize its true potential in the global textile arena." The question remains whether India will seize this golden opportunity or allow it to slip away, as has happened in the past.

 
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