In Aug. 2014, U.S. textile and apparel imports from India totaled $4.54 billion, up from $4.26 billion in Aug. 2013, making India the U.S.’s third largest source for textile and apparel imports, behind first place China and second place Vietnam.
The 7 percent increase contrasts sharply with the 2 percent annual growth the sector has seen on average during the last five years. While the United States is India’s largest export market, the U.S.’s increasing demand for product is just part of the recipe fueling India’s export business. The India Express reported that outside factors, like the steady decline of China’s exports to major markets, labor tensions in Cambodia, currency appreciation in Indonesia and factory safety concerns in Bangladesh, coupled with India’s improving raw materials supply chain, is helping to transform the country to a go-to sourcing partner.
In fact, that renewed global confidence in India appears to have a positive effect on the country’s domestic cotton supplies. The U.S. Department of Agriculture reported last month that India is projected to be the world’s top cotton grower in 2014, nabbing first place from China for the first time in over three decades.