Political Stability Boosts India's Apparel Appeal For Exports

India's prominence as a global apparel sourcing hub has been gaining momentum, with a recent report from the US International Trade Commission (USITC) highlighting political stability as a significant factor attracting US buyers. According to the Ministry of Commerce and Industry, as global garment supply chains become increasingly complex, India's ability to guarantee production timelines and manage risks related to political instability makes it an attractive destination for sourcing apparel.

Over the past decade, India's share of US apparel imports has shown a steady increase, rising from 4 per cent in 2013 to 5.8 per cent in 2023.This growth signals India's increasing competitiveness in the high-value apparel sector, particularly as the US diversifies its sourcing away from China. In 2023 alone, India's apparel exports to the US totalled USD 4.6 billion, making it the fourth-largest apparel supplier to the US market.

This upward trend indicates growing confidence in Indian-made garments and suggests that India's apparel sector is well-positioned to capture more market share in the coming years. Political stability is essential to maintaining smooth supply chains, especially in industries like apparel, where timely deliveries are crucial. The USITC report notes that political unrest in countries such as Bangladesh often results in disruptions, strikes, and delays, making them less reliable for high-value and time-sensitive orders.

By contrast, India's relatively stable political environment has positioned it as a dependable alternative for US buyers. This shift is particularly visible in high-value, fashion-focused apparel, where quality, timely production, and dependable logistics are paramount. Several factors contribute to India's competitiveness in the apparel industry. One of these is vertical integration--India's textile industry encompasses all stages of production, from cotton farming to garment manufacturing.

This self-sufficiency reduces dependency on external suppliers, enabling a more controlled and reliable production process. India's large, skilled labour force is also a major advantage, especially in producing high-quality garments that require detailed stitching and customization, making Indian apparel highly desirable in global markets. Additionally, government policies like the Production Linked Incentive (PLI) Scheme have encouraged investment in domestic manufacturing, technology, and innovation, which has helped Indian manufacturers expand production capacity and meet growing international demand.

Another strength of India's apparel sector is its focus on cotton-based garments. As one of the largest producers of cotton globally, India has a natural advantage in manufacturing cotton-based clothing, which is in high demand in the US. This focus on cotton aligns well with India's established production strengths and offers a valuable niche within the broader US apparel market. The USITC report also compares India's strengths and challenges with other major apparel suppliers to the US, including Vietnam, Bangladesh, Indonesia, and Pakistan. Vietnam, for example, commands a 17.8 per cent share of the US apparel import market and is strong in both cotton and man-made fiber garments, though it faces rising labour costs.

Bangladesh benefits from low labour costs and duty-free access to the US but is hampered by political instability. India, by contrast, has the advantage of vertical integration, a skilled workforce, and robust government support, although it faces challenges like rising labour costs, infrastructure limitations, and a limited capacity for man-made fiber production. This comparative analysis reveals India's solid positioning as a reliable supplier in the global apparel market.

As India continues to address challenges related to labour productivity, fiber diversification, and infrastructure, its apparel industry is well-poised for further growth in the US market. With its focus on reliability, high-quality production, and political stability, India is emerging as a dependable partner for US buyers in the increasingly competitive global apparel industry. (ANI)