India dominates textile production yet fails to capitalize on global apparel opportunities due to fragmented manufacturing. The global apparel market will hit $1.84 trillion by 2025, representing 1.65% of global GDP. Shifting trade patterns, Bangladesh’s instability, and Chinese tariffs create a perfect opening for Indian manufacturers to scale up now.
Bangladesh’s Rise and India’s Missed Opportunity
India lost ground in apparel manufacturing because small production units could not compete globally. Meanwhile, Bangladesh built massive garment factories with government backing, becoming a ready-made garment export powerhouse. Political turmoil now threatens Bangladesh’s position, forcing global retailers to seek alternatives.
Market Shifts Create Opportunity
Disruptions in traditional sourcing markets have major brands like Primark, Target, and Walmart actively seeking new partners. These retailers demand factories with 1,000+ machines to guarantee consistent quality and volume. India can capture this business only by quickly establishing large-scale operations.
Scale or Fail
India’s historically small factories cannot fulfill bulk orders from global brands. Manufacturers must build extensive production facilities to handle large volumes efficiently.
The government supports this transition through its Production-Linked Incentive scheme, allocating ₹10,683 crore over five years to strengthen manufacturing in MMF apparel, fabrics, and technical textiles. So far, 64 applications propose ₹19,798 crore in investments with ₹1,93,926 crore in expected turnover. Manufacturers must leverage these incentives before competitors claim them.
Strategic Factory Locations
Successful large-scale manufacturing requires abundant labor and government support. States like Jharkhand, Bihar, Odisha, and Madhya Pradesh offer ideal conditions – large workforces at competitive wages plus substantial subsidies for employment generation and capital expenses.
Industry leaders Orient Craft, Shahi Exports, and Arvind Limited have already established operations in these regions. Manufacturers who delay will miss both incentives and strategic positioning.
India’s Current Market Position
India ranks sixth globally in textile and apparel exports with 3.9% market share. The sector generates 8.21% of India’s total exports, with the USA and European Union buying nearly half of these goods.
Beyond economics, the industry directly employs 45 million people and supports over 100 million livelihoods, including many women and rural workers. Expanding manufacturing capacity serves both economic and social goals, aligning with national initiatives like Make in India and Women Empowerment.
Geopolitical Challenges
Recent export growth faced headwinds from the Red Sea crisis and Bangladesh’s instability, disrupting shipments in early 2024. Large-scale production facilities would create resilience against such disruptions and establish India as a reliable supplier.
Limited Window of Opportunity
The current trade environment will not last forever. Competing nations are rushing to capture the same business. Indian manufacturers must act decisively to establish large production facilities, utilize state incentives, and build sustainable manufacturing ecosystems.
With government backing, available workers, and increasing global demand, conditions are ideal for expansion. Failing to scale quickly means watching other emerging markets seize this opportunity.
Mass Production, Massive Potential
India’s apparel future depends on building efficient, competitive large-scale factories. The opportunity exists now – execution must follow promptly. The blueprint is clear — invest in scale, embrace technology, secure government incentives, and position India as the next global apparel manufacturing hub.
Manufacturers who seize this opportunity are going to transform the businesses they operate and India’s position in the world market for apparel. Inevitably, the sector will converge around bigger, more productive producers, leaving those who hesitate behind.
Due to current disruptions in global supply chains, Indian manufacturers now have a special chance to reclaim market share that was previously held by competitors. The goal is to radically reposition India in the global apparel manufacturing industry, not just grow current enterprises.
For too long, India has remained fragmented while watching neighbors build massive production facilities that attract the world’s largest brands. The current political and economic circumstances have created a unique convergence of factors favoring Indian expansion.
Retailers no longer want to concentrate sourcing in single countries after experiencing pandemic and political disruptions. They seek diversified, resilient supply chains with partners who can deliver scale, consistency, and compliance.
India possesses every ingredient needed for success – textile expertise, growing labor pools in developing states, improving infrastructure, and government support through targeted incentives. The missing element has been large-scale manufacturing facilities that can compete with regional powerhouses.
Forward-thinking manufacturers are already responding. New factories with 1,000+ machine capacities are under construction in states offering attractive subsidies. These early movers will secure prime opportunities while latecomers may find themselves permanently locked out as brands establish new long-term relationships.
This pivotal moment demands immediate action. Manufacturers must pursue ambitious expansion plans, leverage government incentives, and recruit workforces in emerging industrial regions. The future belongs to those willing to invest in scale now, rather than incrementally growing outdated facilities.
India is reaching a turning point. Immediate, significant investment in large-scale facilities is the first step toward achieving global leadership in the garment manufacturing industry.