The United States is the world’s second-largest market for textiles and apparel (T&A), accounting for 15% of global T&A exports. For India, the U.S. is the largest export destination, making up 28.5% of India’s total T&A exports between January and November 2024. As India continues to strengthen its position in the U.S. market, the Confederation of Indian Textile Industry (CITI) is urging for enhanced trade ties between the two nations to further boost exports and secure market share.
India’s Position in the U.S. Market
India ranks as the third-largest supplier of T&A products to the U.S. after China and Vietnam, with a 10.8% share of the U.S.’s total T&A imports valued at US$118.4 billion. Despite China’s dominant 25.6% share, a significant trend is emerging. U.S. imports from China have been declining at a compound annual growth rate (CAGR) of 9.4% over the last five years (2020-2024), while imports from India have grown at a CAGR of 9.1% during the same period. This shift presents a significant opportunity for India to further expand its market share in the U.S.
Trade Balance and Commodity Insights
The trade balance between the U.S. and India in T&A remains strongly in India’s favor. In 2024, U.S. T&A imports from India stood at approximately US$10.8 billion, whereas U.S. exports to India were only US$0.41 billion. India primarily imports fiber products from the U.S., with cotton accounting for 50.6% of the total U.S. T&A exports to India. On the other hand, India’s exports to the U.S. are primarily in apparel and home textiles, which make up 81.5% of total shipments.
Strategic Recommendations for Growth
Experts suggest that India has a golden opportunity to strengthen its position in the U.S. market, especially with recent U.S. policy shifts, including increased tariffs on key competitors like China, Mexico, and Canada. To maximize this opportunity, India should pursue a Zero-for-Zero trade agreement with the U.S. for T&A products, ensuring safeguards for sensitive goods.
A zero-duty structure would provide Indian exporters with a level playing field against competitors like Vietnam, which already benefits from duty concessions.
This could lead to a significant increase in India’s T&A exports to the U.S., potentially reaching US$16 billion within the next three years.
Securing Cotton Imports
Given India’s reliance on cotton imports from the U.S., a duty-free access mechanism with quota safeguards could ensure a balanced trade relationship and secure India’s cotton supply while maintaining fair trade practices.
With strategic negotiations and industry-government collaboration, India is poised to seize this transformative opportunity in the U.S. T&A market.
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