Sourcing textiles from India

The Indian textile industry is extremely old and varied, dating back to several centuries. From its vibrant traditional weaves to modern chic designs, India’s textile industry is extremely dynamic and rich in history and culture. India manufacturers a wide range of fiber/yarns, from natural fibers like cotton, jute, silk, and wool, to synthetic/man-made fibers like polyester, viscose, nylon and acrylic. 

Sourcing fabrics from India can be an advantageous choice as India offers high quality yarns, competitive pricing, sustainable practices and diversity with handspun and handwoven textiles on one end and modern factory-produced clothing on the other.

Market Overview

India is among the world’s largest producers of apparel and textiles. The domestic textile and apparel industry contributes to approximately 2.3% of the country`s GDP, 13% to industrial production and 12% to exports, besides being the second-largest employer in India. Total textile exports are expected to grow at a 10% CAGR to reach $190 billion by FY 2025–2026.

The textile sector in India can be divided into two parts: 

• Organized Sector: This sector mostly uses sophisticated machinery and extensive technology for mass production.
• Unorganized Sector: The unorganized sector uses the traditional methodology. It promotes handlooms to make fabrics by artisans. 
  
  

Why source from India?

• Easy availability of Natural Resources: 51% of the World’s Organic cotton is grown in India, compared to 19% in China, as per the Textile Exchange Organic Cotton Market Report. India is also the 2^nd largest producer of silk in the world and 95% of the world’s handwoven textile comes from India. Wool production in India is also important and adds diversity to the range of eco-friendly textiles available locally.
• Diversified range of products: The country offers a wide choice of fabrics, designs and styles from intricate weaves, old traditional styles to contemporary, modern fashion, showcasing vibrant colors and intricate craftsmanship.
• Skilled workforce: Skilled labour is the reason more companies are looking at India as a sourcing destination. This skilled labor force is adept at handling a wide array of materials and designs, as well as offering bespoke solutions coupled with intricate craftsmanship, thereby delivering products that meet international standards.
• Cost effective: Due to the abundant availability of raw material as well as a skilled workforce, India is a great sourcing destination for companies looking for cost effective options while maintaining high-quality standards.
• Customization: Providing a bespoke solution is at the heart of the Indian textile industry. Manufacturers pride themselves on the ability to provide solutions that are tailormade to the clients requirements of design, material, sizes, and quantities.
• Reliable supply chain: India has well-developed supply chain and logistics facilities which enable timely delivery of small as well as bulk orders. With production facilities for thread, yarn, and textile in house, India also has skilled artisans for printing and embroidery and a well-defined industrial setup for mass and bulk production.
• Ethical sourcing practices: In the past few years, companies are focusing more and more on sustainable manufacturing and sourcing practices and India is rapidly adapting to this change. From employing eco-friendly raw material, to implementing sustainable manufacturing processes to supporting fair trade practices, India is rising to the challenge of developing an entirely sustainable textile ecosystem.
• Certified facilities: India has 1,254 Global Organic Textile Standard (GOTS) certified facilities, the largest number in any single country (China only has 220), and 449 Organic Cotton Standard (OCS) certified producers.
  
  In addition:

• 40% of Fairtrade cotton certified producers or traders are in India.
• There are 977 SA8000 certified units (compared with China’s 606 and Bangladesh’s 4)
• 217 Global Recycled Standard (GRS) certified facilities.

This enables global buyers with a focus on sustainability to source textiles from India with greater confidence.

Sourcing from India as compared to China, Bangladesh & Vietnam

As of the world’s largest producers of textiles and apparel, India presently ranks as the 4th largest manufacturer of textiles and garments in FY 2022, behind China, Bangladesh and Vietnam. China as well as India benefit from economies of scale and can offer solutions at lower costs. Bangladesh’s competitive advantage lies in its lower labour costs but the country meets a majority of its raw material demand through imports, as is the case for Vietnam.

Emerging trends: Technical Textiles

While the future of the textile industry for clothing and home furnishings looks promising due to strong domestic growth as well as increasing export demand, the sub-sector of technical textiles is also gaining prominence. India is the second largest producer of polyester in the world and the demand for technical textiles is on the rise, which is estimated to reach $42 billion by 2026. Technical textiles are used in sectors such as defense, agriculture, medical and construction.

Why Expandys?

Due to the country’s size and diversity, navigating through the Indian business landscape can be complex and challenging for international companies. From identifying a local manufacturer to assistance with negotiations and contract preparations, Expandys can help companies while meeting their requirements for quality control, ethical practices and sustainable sourcing. Furthermore, with its offices located in India, and with strong partners in China and Vietnam, Expandys can help companies identify the right sourcing strategies that align with their business goals and ethical practices.

You are interested in sourcing from India?