American buyers prefer apparel sourcing from India, says report

Image Courtesy: Wings2Fashion

In the midst of worries over Bangladesh’s garment industry, the US International Trade Commission (ITC) has stated that American consumers have found political stability in India to be a crucial consideration when purchasing clothing from the nation.

“Compared to less politically stable nations, brands are more inclined to source high-end or fashionable goods from India since they are sure they can manufacture and deliver their goods there,” it stated.

According to the US ITC report, the domestic industry is optimistic about the sector’s future and anticipates an increase in orders to Indian businesses, who target the local market with 80 per cent of their production.

Both the American organisation and the Indian industry have recognised capacity issues in order to produce more clothing. India, a “profiled country” that gained market share from China over the past ten years together with Bangladesh, Pakistan, Indonesia, and Cambodia, has received the all-clear from the US ITC.

China’s market share in US apparel imports decreased from 37.7 per cent in 2013 to 21.3 per cent in 2023, while India’s increased from 4 per cent to 5.8 per cent, with US $ 4.6 billion in exports last year, making it the fourth-largest supplier to Americans. The largest benefactor was Vietnam, which increased its percentage of the pie from 10 per cent ten years ago to 17.8 per cent.

Nearly one-third of India’s garment exports went to the US, which was the country’s top export destination with US $ 4.6 billion worth of exports. Since the majority of inputs are available domestically, India’s competitiveness has been acknowledged by the US ITC report due to its extensive vertical integration, particularly in the areas of cotton clothing and high-value products. However, rising labour costs, small unit sizes, and high logistics costs have been identified as challenges.

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