India's textile and apparel exports are at a turning point: global brands are accelerating procurement diversification away from China, US tariffs on India have fallen, and the India-UK and India-EU trade arrangements are improving market access. India's textile and apparel exports total about $37 billion a year, while the government has set a 2030 target of $350 billion for the entire textile industry. But India's apparel ecosystem has long been fragmented, capital costs are relatively high, and integrated manufacturing hubs spanning fiber to finished garments remain limited, leaving its global export share stagnant for years: down from 3.2% in 2010 to 3.0% in 2025. Over the same period, China's share slid from 36.9% to 27.3%, while Bangladesh and Vietnam together rose from about 7% to more than 13% — it is the latter that have truly captured the shift.

Key Points

  • India's textile and apparel exports are worth about $37 billion, and the government targets $350 billion for the textile industry by 2030.
  • US tariffs on Indian goods have fallen from a peak of 50% to roughly 10%–18%; the India-UK trade agreement and the India-EU FTA improve access, with the latter corresponding to a market of about €200 billion.
  • Based on PL Capital's coverage, Gokaldas Exports has 11 buy ratings out of 12 (91.7%), and KPR Mill has 13 buys (86.7%).

Tariffs and Trade Deals Lift Competitiveness

US tariffs on Indian goods have fallen from a peak of 50% back to roughly 10%–18%, sharply narrowing the main cost disadvantage exporters previously faced. The India-UK trade agreement eliminated India's existing tariff disadvantage in apparel, while the India-EU FTA improved the terms for entering a market worth about €200 billion. Combined with the China+1 strategy — global apparel companies actively spreading their supply chains across multiple countries — Indian manufacturers able to offer scale, delivery reliability, and cost competitiveness now have a chance to be added to sourcing lists.

Stagnant Share Exposes Structural Weaknesses

The other side of the opportunity window is India's own constraints. The apparel industry ecosystem is fragmented, making it hard to compete on efficiency with integrated sourcing destinations; capital costs are higher, discouraging large-scale investment; and the number of integrated manufacturing hubs spanning fiber to finished garments remains limited. As a result, despite India's vast domestic textile base and manufacturing capacity, its global apparel export share has essentially stood still.

Brokerage View: Which Names Are Called Out

According to PL Capital, Pearl Global, Gokaldas Exports, and KPR Mill are the main beneficiaries of this shift in the global sourcing landscape. Its rating statistics show: Gokaldas Exports has 11 buys out of 12 ratings, or 91.7%, implying 42% potential upside; Arvind has 9 buys out of 10; Pearl Global received 8 buys, 100% of its covered ratings; and KPR Mill has 13 buys, or 86.7%, with 14% potential upside.

For export-oriented secondhand clothing and textile/apparel traders, the significance of this data lies in the restructuring of order sources: as brand procurement shifts from a single origin to a multi-point layout, supplier countries with scale and delivery certainty — and their leading textile and apparel companies — are the first to be brought into the order pool, while origins lacking integration and facing high capital costs may once again watch share slip through their fingers.

Source: A Tailor-Made Opportunity? India's Apparel Stocks Get A China+1 Boost — Here's Who Benefits From The Export Win · Originally published 2026-10-01