The Ready-made Garments (RMG) industry has remained the mainstay of India’s textile exports. According to PIB, RMG exports rose to USD 1.34 billion in July 2025, up from USD 1.28 billion in July 2024, reflecting 4.75% YoY growth. Despite the unprecedented and uncertain global macroeconomic environment, the sector has exhibited resilience and validated India's proposition as a trusted sourcing destination for international buyers.
The US and EU continue to be the two largest consumer markets. Crucially, India is favourably positioned to command a larger share of the global fashion supply chain, especially in the light of the "China +1" sourcing strategy (partly in response to supply chain and geopolitical issues) that many brands are adopting.
But for India, fully tapping this momentum will not be about just volume and cost competitiveness for apparel exports, but rather, it will be about premium, sustainable, and innovation-led apparel exports.
The China+1 Advantage: Riding on the New Market Share
Global brands are actively reducing their dependency on China for garment manufacturing. Some analysts estimate that India could gain as much as 5% additional market share in US apparel imports over the next three years (with scale and reliability).
In order to achieve this, India needs to improve two key areas of its ecosystem: speed-to-market and compliance. Buyers today are looking for suppliers who can navigate stricter ESG norms, transparency in their supply chains, and quick turnarounds on fast-evolving consumer trends.
Emerging Trends in Premium & Sustainable Fashion
The global apparel industry is shifting from disposable fast fashion to quality, sustainable clothing. This transition is well-positioned to align with India's manufacturing capabilities in natural fibres, artisanal techniques, and advanced capabilities in eco-friendly practices, including organic cotton, natural dyes, and recycled-based manufacturing. Premium categories such as linen shirts, fashion knitwear, and ethically sourced fashion can become India's play over the long term in developed markets where there is consumer willingness to pay for sustainable clothing.
Leveraging Policy and Technology
Indian government support is already an added tailwind through schemes like PLI for textiles and PM MITRA parks, focused on creating integrated "fibre-to-fashion" hubs. Simultaneously, MSME-dominated clusters like Tirupur (cotton knitwear) and Ludhiana (wool-based knitwear) are upgrading traditional machinery and adopting digital design, 3D printing and automated cutting. These changes will not only improve efficiencies for exporters, but also give Indian exporters capabilities in customisation and small batch premium production - all segments growing rapidly in international interest.
The Path Forward: From Supplier to Brand Leader
The new inflexion point for India will be to change identity from a supplier of mass-market basics, into a supplier/brands sporting a strategic, planned approach. Establishing Indian brands globally, growing sustainable fashion certifications, and investing in design-led exports will be important initiatives. If India can combine its traditional strengths with innovation and sustainability, India’s RMG industry can evolve from a volume-led success story to a value-led global player, one that doesn’t just clothe the world, but also shapes the future of fashion.
Sources:
Ministry of Textiles, Textile Export Data FY25
Confederation of Indian Textile Industry (CITI), Analysis 2025
IBEF Textile Report August 2025
Deccan Chronicle, Apparel Exports Analysis July 2025
MATEXIL, Statewise Textile Export Trends April 2025
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