Italy is the fifth largest exporter of textile and apparel products globally. Over the last five years, Italy’s total T&A exports declined at a CAGR of 1.3% to touch $33.9 billion in 2017, while imports have reduced at a CAGR of 0.3% to touch $25 billion. Italy’s T&A trade balance recorded a deficit of $8.9 billion in 2017.
Apparel is the largest imported category by Italy, representing 61% of total textile and apparel imports (2017). This is followed by man-made textiles with a share of 17%. Top 10 suppliers accounted for ~71% of textile and apparel imports by Italy. China & HK is the largest supplier accounting for 21% share, followed by Germany with a share of 8%, and Spain and France with a share of 7% each. In terms of y-o-y exports to Italy, all countries’ exports have grown, excluding Turkey, Romania and Belgium. India’s exports to Italy grew at 6% y-o-y.
India was the 9th largest supplier of textile and apparel products to Italy in 2017. India’s exports of T&A to Italy stood at $0.8 billion in 2017. Even though India’s exports of textile and apparel products witnessed a growth of 
1% over the last five years, its share remained stagnant at ~3%. Apparel is the largest category with a share of 46% in India’s T&A exports to Italy. This is followed by cotton textiles and manmade textiles having share of 20% and 18% respectively.
Italy is one of the major importers of apparel products in the world. India, being a significant manufacturer of garments, holds a miniscule share in these imports which has remained stagnant over the last few years.
In recent years, China, the largest supplier for Italy, has seen a sustained rise in its wages, opening up opportunities for India to increase its share in Italy’s apparel imports.
Apart from this, the category of man-made textiles offers huge potential for India to increase its market share in Italy. It can increase its export competitiveness by investing in MMF-based textile manufacturing processes, thereby increasing its market base.
