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Leading Indian management consulting firm Primus Partners has launched a detailed roadmap to boost India’s textile exports to $100 billion over the next five years.
Titled “Roadmap for $100 Billion Exports in 5 Years: Six Recommendations that Will Drive the Textile Industry,” the strategy outlines six key focus areas such as Industry 4.0 Integration; Free Trade Agreements & Market Access; Operational Subsidies; Skilling the Workforce: Scaling MSMEs; Technical Textiles Expansion.
Kanishk Maheshwari, Co-Founder and Managing Director of Primus Partners, emphasizes, these six strategic steps form a practical blueprint for India to lead global textile manufacturing. With a mix of policy reform, market diversification, investment attraction, and infrastructure upgrades, India can become a preferred sourcing hub, particularly for the US and UK.
One of the country's oldest and most vital sectors, India’s textile industry, contributes around 2.3 per cent to India’s GDP, 13 percent to industrial production, and 10.5 per cent to total exports. Globally, India ranks as the second-largest producer of textiles and apparel and the fifth-largest exporter, offering a wide range of products from garments and home textiles to technical fabrics.
As global trade dynamics evolve and new tariff frameworks take shape, this roadmap positions India’s textile sector for transformative growth. Strategic execution and government backing could unlock massive export potential, creating jobs, strengthening supply chains, and cementing India’s status as a global textile powerhouse.
Demonstrating the robustness of its circular strategy and business model despite challenges faced by the industry, Nudie Jeans released its 2024 Sustainability Report offering insights into the management of materials, production and products by the company manages its materials, production, and products.
As per this report, Nudie Jeans AB’ sales increased by 6 per cent to SEK 511 million in 2024. The brand’s revenue from its direct channels, including e-commerce and retail stores, grew by 12 per cent, making up 66 per cent of total net revenue. Although wholesale revenue decreased by 6 per cent during the year, Nudie says, it anticipates ‘modest growth’ in this channel in 2025, followed by a stronger increase thereafter.
Europe continues to be the brand's largest market, accounting for 61.7 per cent of sales. It is followed by Australia (17.9 per cent), North America (12.8 per cent), and Asia (7.6 per cent) representing the remaining sales regions.
Circular business models contributed 1 per cent of the company's total revenue. This figure includes sales of used jeans and products made from recycled post-consumer Nudie Jeans fiber sourced through the brand's Re-use program. In 2024, the brand sold 3,513 pairs of pre-owned jeans. It remains committed to using organic cotton in its production. Organic and/or Fairtrade and recycled cotton accounted for 93 per cent of the brand's total fiber usage last year.
However, the brand also explores new fabrics and fibers with suppliers to lessen the negative impact on climate and nature is an ongoing part of its design process.
Most of the cotton used by the brand to produce its denims is sourced from two suppliers; Akasya and Egecot in Aegean, Turkey. Both companies partner with farmers who cultivate cotton under certified organic standards and, more recently, regenerative organic practices. This collaboration has enabled Nudie to introduce regenerative organic cotton in select styles.
In 2024, the brand finalized the development of its first garments made from regenerative organic cotton. More styles featuring regenerative organic cotton are planned for future collections.
During the year, Nudie produced fewer denim fabrics using recycled cotton, but it plans to increase production in this area in 2025.
The brand utilized approximately 6,000 pairs of ‘second choice’ jeans – those with manufacturing defects –to create new denim fabrics. These garments were mechanically recycled by Nudie's Tunisian suppliers, Denim Authority and Swift Denim.
The repair program continues to be a key focus. Nudie ended 2024 with 33 repair shops across 20 cities and 15 repair partners in 14 cities. Repair partners contributed more than 10 percent of the yearly total repair volume.
From 73, 368 pairs in 2023, the number of jeans repaired by Nudie decreased to 68,342 pairs in 2024. Nevertheless, the brand aims to expand its overall circular business model with new external partnerships and funding from the Swedish Energy Agency.
Emerging as the top-performing apparel supplier to the United States, Bangladesh posted the strongest year-over-year growth among its global competitors in Q1, FY25.
Figures from the Office of Textiles and Apparel (OTEXA) show, Bangladesh’s apparel exports to the US increased by 26.64 per cent to $2.22 billion from January-March 2025.
India followed with a growth of 24.04 per cent in clothing exports to the US, while Pakistan, Vietnam, and China saw growth rates of 17.49 per cent, 13.96 per cent, and 4.18 per cent, respectively.
Overall, the US’ apparel imports rose to 10.95 per cent Y-o-Y to 20.05 billion during the quarter.
The volume of Bangladesh’s apparel exports to the US also increased by 25.24 per cent, indicating rising demand and production capacity. The highest volume growth was registered by India with a rise of 27.17 per cent followed by Pakistan at 19.94 per cent, Vietnam at 9.14 per cent, and China at 2.30 per cent trailed behind.
Looking at average prices per unit, Vietnam recorded the biggest increase at 4.42 per cent, followed by China (1.83 per cent) and Bangladesh (1.12 per cent). However, India and Pakistan reported -2.46 per cent and -2.04 per cent decline in prices respectively.
Asif Ashraf, Managing Director, Urmi Group and a leading apparel exporter from the country, attribtues this growth to Bangladesh's success in shipping more high-value products.
However, future performance could be impacted by Trump's recent tariff hikes, he warns. Mohiuddin Rubel, Former Director, Bangladesh Garment Manufacturers and Exporters Association (BGMEA), notes, China's export growth to the U.S. didn't keep pace with the overall rise in US apparel imports. This suggests that Bangladesh has captured some of the market share China is losing, he observed.
India's knitwear hub in Tamil Nadu, Tiruppur is staring at a huge opportunity as American buyers consider ramping up sourcing from India, especially with higher tariffs looming on other Asian hubs.
While President Trump plans to levy a 26 per cent tariff on India starting in July - lower than the 37 per cent on Bangladesh, 46 per cent on Vietnam, and a massive 145 per cent on China—this should make Indian apparel much more competitive against Bangladesh and China.
Yet, India's potential tariff advantage is running into tough realities: a lack of skilled workers, smaller factory sizes limiting efficiency, and higher overall costs.
Raft Garments wants to boost production for new orders but is bringing in advanced machines to automate stitching because finding and keeping migrant workers is incredibly difficult. Indian exporters say workers often leave after just months for smaller shops offering longer hours and better pay, something bigger manufacturers struggle to match due to foreign client demands on costs and working conditions.
This labor crunch in a nation where 90 per cent of workers are in the informal sector is a major roadblock for Prime Minister Modi's ‘Make in India’ push, especially in labor-intensive industries like garments. Tiruppur alone needs an estimated 100,000 more workers.
Cotton Blossom has set up training centers thousands of miles away to source migrant workers, but many still return home quickly.
Despite India's challenges, US companies have been diversifying supply chains away from China, and political issues have recently affected Bangladesh's appeal. As per a US Fashion Industry Association survey, India was the most popular sourcing hub in 2024, with nearly 60 per cent of brands planning to increase orders.
While tariffs could make Indian apparel competitive pricewise, India loses on scale. Bangladesh factories average 1,200 workers, while India's average 600-800. Bangladesh capacities are huge while faces capacity constraint, says Mithileshwar Thakur, India's Apparel Export Promotion Council.
Labor costs are also higher in India ($180/month) than in Bangladesh ($139), partly due to stricter overtime rules. As a result, while Walmart is reportedly doubling imports from India, price remains a sticking point. Buyers are aggressively pushing for Bangladesh-level prices, a tough ask for Indian manufacturers like Raft Garments.
Mali aims to increase its cotton production to 682,000 metric tons during the 2025-26 season, states Daniel Simeon Kelema, Agriculture Minister. Achieving this goal would depend on favorable weather conditions and the continuation of government subsidies for farmers, he adds.
In 2024-25, Mali’s cotton output declined by 4.8 per cent as heavy rainfall, widespread flooding, and crop damage significantly impacted production, avers Kelema.
During the season Mali produced 656,679 metric tons of raw cotton as against 690,000 metric tons produced in the previous year. The ministry had projected a much higher yield of 765,000 metric tons at the start of the season last May.
In March 2025, textile and apparel (T&A) imports by the US declined by 4.8 per cent from February 2025 to 7.80 billion square meter equivalents (SME). However, from March 2024, T&A imports increased by 2.2 per cent.
Latest data from OTEXA shows, textile imports by the US declined by 5.6 per cent to 6.22 billion SME in March 2025 but increased by 0.4 per cent Y-o-Y. Apparel imports declined by 2.4 per cent from February 2025 to 2.02 billion SME but rose by 7.8 per cent compared to the same period last year.
US’ total T&A imports increased by 12.8 per cent Y-o-Y to 24.6 billion SME in March 2025. This includes a 14.2 per cent rise in textile imports to 18.1 billion SME, and a 9.2 per cent increase in apparel imports to 6.4 billion SME.
For the 12 months ending in March 2025, total imports increased by 15.6 per cent over the previous year. Textile imports rose by 18.3 per cent to 83.1 billion SME, while apparel imports grew 7.8 per cent to 26.3 billion SME.
The Andhra Pradesh Government aims to strengthen the local textile industry in Kurnool by building a Micro, Small and Medium Enterprises (MSME) Park at Banavasi in Yemmiganur mandal.
A key step in the region’s industrial development, the project involves development of core infrastructure across 22 acre, expected to be completed within three months.
The remaining 50 acre will be reserved for setting up textile-focused units and an effluent treatment system, notes S Savitha, Minister for BC Welfare, Handlooms, and Textiles. The government provides 200 units of free electricity to handloom weavers and 500 units to powerloom operators, she informs. The state is also developing handlooms clusters besides organizing exhibitions with an investment of Rs 348 crore, she adds.
TG Bharat, Industries and Commerce Minister, says, the government aims to promote the use of Yemmiganur-made textiles within the industries department. It also plans to approach the Tirumala Tirupati Devasthanams to encourage adoption of locally woven shawls. The park is expected to attract textile entrepreneurs and provide employment while promoting traditional weaving in the region.
A prominent player in India’s textile industry and a subsidiary of Reliance Industries, Alok Industries has entered into a strategic partnership with Rieter India for the supply and installation of a comprehensive compact spinning system. This agreement highlights Alok’s commitment to modernizing its manufacturing capabilities with advanced technology and reinforcing its position as a global supplier of premium yarn and textile products.
The state-of-the-art spinning system includes high-performance fiber and spinning preparation equipment, fully automated lap transport systems, combing sets, G 38 fully electronic ring spinning machines with integrated compacting technology, and Rieter’s flagship X6 winding machine. This end-to-end solution will empower Alok to produce high-quality combed compact yarn with improved consistency, productivity, and overall operational efficiency.
Harsh Bapna, CEO, Alok Industries, says, this investment is a significant move toward achieving global standards in quality and operational excellence. The Rieter system introduces a new level of automation and precision to the company’s spinning operations, allowing its teams to consistently deliver high-performance yarn to the international market.
Biji Chacko, Group Chief Operating Officer, adds, this partnership with Rieter India underscores the group’s focus on innovation and excellence. More than a technological upgrade, the modernization of Unit 4 is a strategic advancement aimed at creating smarter, cleaner, and more globally competitive operations. It boosts the group’s ability to supply consistent, top-tier yarn to customers worldwide.
Aligned with goals of digitalization and sustainability, the new machinery supports Industry 4.0 practices by enabling smart operations through advanced digital monitoring, lower energy consumption, and superior process control.
Japan’s Shima Seiki Mfg, Ltd and Italy’s Lonati S p A have joined forces to accelerate digitalization and sustainability in the sock manufacturing sector. The strategic collaboration focuses on combining Shima Seiki’s APEXFiz design software and Lonati’s Orion programming software to modernize how sock designs are developed and brought to market.
Traditionally, sock production has relied heavily on physical samples for design approval and prototyping a process that consumes time, materials, and labor. The partnership aims to disrupt this model by enabling “3D Virtual Sampling,” allowing companies to visualize, verify, and adjust sock designs digitally before production begins. This eliminates the need for physical prototypes, thereby reducing costs, cutting lead times, and lowering environmental impact.
Shima Seiki’s APEXFiz, already widely used in the industry, allows designers to create and review sock designs in real time. The upcoming APEXFiz Design-Sox will offer even more specialized capabilities tailored for sock design. Meanwhile, Lonati’s Orion software, part of its Unlimitex suite, enables users to evaluate technical design data in 3D, helping identify and correct issues before production.
Both APEXFiz Design-Sox and Orion are slated for launch in June 2025. The integration of these tools will streamline the entire workflow from digital design to manufacturing enhancing efficiency, product quality, and speed to market.
By merging design creativity with technical precision, Shima Seiki and Lonati’s alliance sets a new standard for innovation in the sock industry, offering a competitive edge through sustainable and intelligent production practices.
Inditex, the parent company of fast-fashion giant Zara, remains "optimistic" about its growth prospects in the United States, even amidst rising tariffs and concerns about consumer demand, according to CEO Oscar Garcia Maceiras. This confidence comes as the company navigates a complex economic landscape and adjusts its pricing strategy in the US market.
At an annual press conference following the release of first-quarter sales figures, Garcia Maceiras emphasized Inditex's commitment to the US, stating, "By properly executing our business model, we will continue to have a very positive evolution in the US market." The US is Inditex's second-largest market after Spain, though the Americas region as a whole accounted for 18.6 per cent of global sales in 2024, a relatively smaller share compared to Spain's 15.1 per cent and the rest of Europe’s 50.6 per cent.
Inditex’s resilience despite tariff threats
Despite US President Donald Trump's tariff threats on imported goods, which sparked retaliatory measures from other countries due to concerns about global trade, Inditex maintains its resilience. Garcia Maceiras highlighted the company's diversified sourcing strategy, with products originating from 50 countries, enabling it to adapt to evolving tariff structures.
Table: Inditex sales by region (2024)
|
Region |
Share of global sales |
|
Spain |
15.10% |
|
Rest of Europe |
50.60% |
|
Americas |
18.60% |
"We are well positioned to adapt to new tariffs," Garcia Maceiras stated. While expressing optimism, Inditex also acknowledged the need to address the potential impact of tariffs on inflation. In response, Garcia Maceiras indicated that the company plans to maintain "stable prices." However, data from market research firm EDITED reveals that Zara has, in fact, increased prices in the US over the past year.
Table: Average price increases for select Zara items in the US market
|
Item Category |
March 1, Current Year Average Price (USD) |
12-Month Price Increase (%) |
|
Dress |
$86.44 |
22% |
|
Top |
$63.60 |
8% |
This data suggests that while Inditex aims for price stability, adjustments are being made to reflect market conditions. The company's strategy appears to balance the need to remain competitive with the pressures of increased tariffs and fluctuating economic conditions.
Inditex's confidence in the US market is further underscored by its ongoing expansion efforts, including the opening of a new Massimo Dutti store in Miami in November. Currently, Zara operates 97 stores in the US. Garcia Maceiras also acknowledged the challenges posed by the constantly changing geopolitical landscape, stating that the uncertainty makes long-term predictions difficult. This sentiment echoes concerns shared by other business leaders grappling with the impact of evolving US trade and foreign policies.
Stake of other fashion brands in US market
Shein, which currently dominates the US fast fashion market with an estimated 50 per cent market share, faces a unique set of challenges. Its business model relies heavily on rapid production and efficient supply chains, often sourcing from regions that could be heavily impacted by tariffs. Shein, known for its extremely low prices, will likely face significant pressure to maintain its competitive edge. The company's strategy may involve further optimizing its supply chain, diversifying its sourcing, or potentially absorbing some of the increased costs. It is likely that Shein will attempt to keep prices as low as possible, as their customer base is extremely price sensitive, and any significant price increases could cause a loss of market share.
Table: US fast fashion market share
|
Fast fashion brand |
US market share |
|
Shein |
50% |
|
H&M |
16% |
|
Zara |
13% |
|
Fashion Nova |
11% |
H&M, with an estimated 16 per cent share of the US fast fashion market, also relies on a complex global supply chain. The company has been increasingly focused on sustainability and ethical sourcing, which could provide a degree of resilience in the face of tariff-related disruptions. H&M's strategy may involve further investments in supply chain efficiency, as well as exploring alternative sourcing options. H&M has generally taken a stance of attempting to absorb cost increases where possible, to not pass them to the end consumer, however, that may change depending on the magnitude of the tariffs.
Fashion Nova, holding approximately 11 per cent of the US market, is known for its trend-driven, affordable clothing. The company's agility and ability to quickly adapt to changing consumer preferences could be an advantage in navigating tariff-related challenges. Fashion Nova, like Shein, caters to a price-conscious demographic, so significant price increases are unlikely to be well received. Therefore, they will likely seek to find alternative sourcing to mitigate costs.
All four of these major retailers will be monitoring the tariff situation closely, and it is likely that they will all be adapting their supply chains to deal with the changes. The companies are all likely to attempt to find ways to absorb costs, to avoid raising prices for the end consumer. However, if the tariffs are significant, then price increases may be unavoidable
