For years, global fashion brands have depended on China for its scale and supply chain efficiency. But with rising costs and geopolitical risks, the search for alternate sourcing hubs is gaining urgency. India, once seen primarily as a textile heritage center, is fast emerging as a serious manufacturing contender.
Why India Now?
It’s not just about affordable labor. India is building an ecosystem rooted in policy support, infrastructure, and technological advancement—offering a long-term, stable base for global supply chains. At the India-France CEO Forum, Prime Minister Modi affirmed India’s role as a preferred alternative for companies diversifying from China.
From Heritage to High-Tech
India’s textile legacy is well known. Today, it’s transitioning to modern, export-driven apparel manufacturing. The sector contributes 2.3% to India’s GDP and 10.5% to exports, directly employing over 45 million people.
The goal: Hit $100 billion in exports by 2030. With FY24 exports at $34.4 billion and FY25 already at $21.35 billion in six months, that goal looks increasingly realistic.
Policy Push & Infrastructure Growth
The Production Linked Incentive (PLI) scheme and PM MITRA textile parks are transforming India’s manufacturing capabilities. These initiatives focus on end-to-end textile ecosystems—reducing lead times and improving cost-efficiency.
12 new industrial parks and investments in textile machinery modernization are further boosting capacity.
Global Brands Are Noticing
The global apparel market is projected to reach $2.37 trillion by 2030, with India’s domestic market alone expected to touch $350 billion. Labour remains cost-effective, and the workforce is skilled in textile manufacturing, drawing from generational knowledge.
With FDI crossing $4.5 billion and full foreign ownership allowed, India is becoming more attractive—not just for sourcing, but for setting up long-term operations.
Sustainability Is a Strategic Edge
Sustainability is now a necessity, not a trend. India’s commitment to circularity and environmental compliance—highlighted at Bharat Tex 2024—makes it a future-ready partner. Schemes like Weaver MUDRA also empower traditional artisans, blending heritage with innovation.
India vs China? Not Quite
China remains unmatched in speed and infrastructure. But India is no longer a fallback—it’s becoming a standalone, resilient supply hub. With policy and industry in sync, India is steadily earning its place as a global apparel powerhouse.
Closing Thought
This isn’t just about de-risking from China. It’s about India rising on its own merit—ready to meet the world’s demand with reliability, scalability, and a deep-rooted textile tradition.
Pawan Gupta, CEO & Co-founder – Fashinza.
