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India’s apparel industry stands at a critical inflection point in the global textile value chain. With the World Trade Organization (WTO) projecting the global apparel market value to grow from $557.50 billion in 2023 to $597.83 billion in 2024, registering a robust 7.08% growth, the sector is entering a phase of renewed optimism and fierce competition. The market signals are clear: demand is rising, and supply chain shifts are redistributing global dominance.

A close examination of the 2024 apparel market data, as compiled by Bangladesh Apparel Exchange (BAE) using WTO figures, reveals some key trends.

China’s Waning Dominance

China continues to lead the global apparel trade, but the trend line is no longer upward. Its market share declined from 34.86% in 2017 to a projected 29.64% in 2024. While it still contributes significantly—$165.24 billion in 2024—this represents only a 0.30% increase over 2023, suggesting stagnation amid rising labor costs, environmental regulations, and geopolitical shifts. China’s earlier dominance (over one-third of the global market) has now given way to a slow but steady contraction, opening doors for emerging economies.

Bangladesh and Vietnam: Gaining Ground Strategically

Bangladesh has carved out a significant position for itself with consistent growth. From 6.46% share in 2017, it peaked at 7.87% in 2022, though it’s expected to slightly retreat to 6.90% in 2024. Yet its year-on-year growth in 2024 is 0.21%, signaling resilience.

Vietnam, with its strong ties to Western markets and diversified manufacturing base, is seeing a modest upward movement, with 6.08% market share in 2024, up from 5.81% in 2022. However, the real standout is its market value growth of 9.34% in 2024, indicating growing trust among global buyers.

India: Positioned for a Breakout, but Momentum Needed

India, with a market value of $19.11 billion in 2024, shows only a 0.20% year-on-year increase and a 3.23% global market share. These numbers reflect a paradox. Despite India’s vast textile infrastructure, skilled labor force, and rich heritage in apparel production, its global performance remains underwhelming.

Several factors contribute to this—logistical bottlenecks, policy uncertainty, and competition from nimble ASEAN economies. Yet, this also means India has immense untapped potential. Strategic policy intervention, increased automation, and aggressive trade negotiations could push India into a stronger growth orbit.

Cambodia, Indonesia, and Pakistan: Silent Climbers

Countries like Cambodia and Indonesia have shown remarkable growth trajectories. Cambodia’s apparel exports are projected to grow by 24.19% in 2024, making it a quiet disruptor. Similarly, Indonesia shows a healthy 9.38% growth, although its global share remains modest at 1.54%.

Pakistan, while facing economic challenges, is forecasted to grow its apparel exports by 9.14%, supported by low-cost production and preferential access to Western markets.

The US Market: A Consumer Not a Contender

While the US commands over $7 billion in export value, it holds just 1.26% of the global market share, highlighting its role primarily as a major importer rather than a manufacturer in the global apparel value chain. This asymmetry underscores opportunities for other exporting nations to fill the supply gaps for American retailers.

Strategic Takeaways

The data points to a global rebalancing of apparel trade. As China slowly relinquishes its dominance, a multi-polar apparel sourcing network is emerging. India is well-positioned but needs a sharper strategy—focused on:

Upgrading to value-added apparel categories

Leveraging FTAs (like India-UAE CEPA and potential India-EU deals)

Strengthening sustainability standards and traceability

Digitizing MSME-led garment clusters

Enhancing port and logistics infrastructure for faster turnaround

The apparel industry is entering a new phase marked by competitive decentralization. India’s challenge is not capability—but conversion. With the right focus, it can rise to become a top-three apparel exporter in the world, not merely by volume, but by value, brand, and resilience.

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