In 2024, retailers in the United States and the European Union (EU) placed more orders for cotton clothing from Vietnam rather than Bangladesh and China. India also benefited during this time, growing by 20 per cent year over year from April to December of the current fiscal year.
Last year, China’s market share in the US fell from 21.8 per cent to 20.8 per cent, a 1 per cent decrease from 2022. In the US, a one per cent market share is equivalent to over US $ 794 million (Rs. 6,900 crore) in sales, according to Prabhu Dhamodharan, Convenor of the Indian Texpreneurs Federation (ITF).
Each competing country gained between 0.2 per cent and 0.6 per cent from this China Plus One move, which divided China’s lost share across other nations. According to him, India’s market share increased by 0.2 per cent, reaching 5.9 per cent at present.
Data issued by the Ministry of Commerce & Industry indicates that exports of cotton yarn, textiles, made-ups, and handloom items from India increased by 11.98 per cent in December 2024 compared to December 2023, according to the Cotton Textiles Export Promotion Council (Texprocil).
Indian cotton yarn, fabrics, makeup, and handloom goods saw a 2.82 per cent increase between April and December 2024. Over the first nine months of the current fiscal year, the apparel industry grew by 11.5 per cent.
According to Dhamodharan, the US Government has imposed new tariffs on small packages coming from China. E-platform businesses will face difficulties as a result, which will reduce the competitiveness of small-parcel exports from China.
He added that India is seeing a spike in enquiries and that apparel exporters are seeing an improvement in order visibility from the US, which will “open up big opportunities for India to bet on e-commerce fashion exports.”
He said that Indian apparel exporters are seeing an increase in enquiries and improved order visibility as a result of brands launching new product categories that were not previously produced in India.
However, Vietnam has started purchasing more cotton from the US than India. “Indian cotton costs more than those in the United States. Vietnam also purchases from West Africa and Brazil”, according to an insider.
Vietnam is not purchasing since the price of the Intercontinental Exchange (ICE) is between 66 and 68 US cents per pound. Another industry expert added that limited amounts of yarn had been imported into India, but that it too does not apply customs duties.
The current price of cotton benchmark futures is 67.4 US cents a pound, or US $ 534 (Rs. 46,375) a candy of 356 kg. Benchmark cotton Shankar-6 is sold in India for US $ 616.55 (Rs. 53,550) per candy.
