India’s textile sector is entering a multi-year growth phase, with the global “China+1” sourcing shift creating opportunities for the country to expand exports and gain market share, according to a Jefferies report. However, the report identified India’s limited presence in man-made fibre (MMF) products as a structural gap.
The global textile and apparel market is valued at over US $900 billion, with apparel accounting for around 60% of total trade. India is positioned to benefit from sourcing diversification due to its integrated fibre-to-fashion ecosystem, an export base of around US $37 billion, raw material availability, skilled workforce and government support.
“Improving trade competitiveness and supply chain realignment provide a multi-year runway for export growth and market share gains,” Jefferies said.
However, India’s export mix remains skewed towards cotton-based products, while global demand is increasingly shifting towards MMF apparel and technical textiles.
Home textiles represent another opportunity, accounting for around 7–10% of global textile and apparel trade. Demand is supported by housing growth, renovation spending, premiumisation and increasing consumer focus on home aesthetics. India already has a 45–60% share in key US home textile categories such as bed linen and towels, but its share in the UK and EU remains at around 5–25%.
FTAs could further support exports. The UK FTA, effective from July 2026, and a potential India-EU FTA from 2027 could provide preferential access to a roughly US $220 billion textile and apparel import market. “Combined with China+1 sourcing, supplier consolidation, and Bangladesh’s gradual loss of LDC-linked benefits, these agreements could drive meaningful market share gains for Indian exporters,” Jefferies noted.
The US, EU and UK together account for over US $300 billion in apparel imports. Yet India holds only around 3% of EU apparel imports and 6% of the UK market. Jefferies attributed the gap to limited FTA coverage, higher logistics and compliance costs, smaller garmenting scale and a cotton-heavy product mix. India also trails Bangladesh and Vietnam in several US cotton apparel categories, while its presence in MMF apparel, sportswear and athleisure remains limited.
