India is among the top suppliers of textile and apparel products to Indonesia. Cotton textiles are the largest category, with a share of 65 per cent in India’s textile and apparel exports to Indonesia. This is followed by manmade textiles and apparel having a share of 20 per cent and seven per cent respectively.
There was a decrease in India’s exports in 2015 due to mounting competition from other countries like China, Korea, the US, etc. However, since the last three years India’s exports to Indonesia are again increasing. India’s exports to Indonesia have increased at a CAGR of seven per cent over the last five years. However, the share has remained two or three per cent during the same period of time.
With a share of about 42 per cent, China is the leading textile and apparel supplier to Indonesia, but it is now focusing more on the domestic market as manufacturing costs in China are increasing. This India an opportunity to grab China’s share and increase its exports to Indonesia.
Cotton was the largest exported commodity to Indonesia from India, but Indonesia is now shifting its focus from cotton-based to manmade textiles. India has the opportunity to increase its share of manmade textiles by focusing on exports of polyester filaments and viscose staple fiber.