Fibre2Fashion explores the trade dynamics in the textile and clothing domains between India and the US.

Current scenario

The US and India are the top major contributors to the textile and clothing trade across the world. The estimated US trade with India for goods and services has reached US$ 142.1 billion in 2018 where exports and imports held out to US$ 58.9 billion and US$ 83.2 billion respectively. The total trade deficit of the US with India was US$ 24.2 billion in 2018.

India ranked 13th in the list of top US's goods export market in 2018. The total goods exports to India from US remained at US$ 33.1 billion in 2018, up by US$ 7.4 billion (i.e. 28.9%) from 2017. US exports to India accounted for very low, approximately 2 percent, compared to the total exports from the US in 2018. Cotton is the only significant textile product exported to India from the US, worth US$ 329 million, among other agricultural and food products exported. India was the 10th largest supplier of goods to the US in 2018 and exported US$ 54.4 billion worth goods to the US in 2018, up by approximately US$ 5.8 billion (i.e. 11.9%) from 2017. Indian exports to the US accounted for 2.1 percent of overall US imports in 2018.

The trade deficit of the US goods with India dropped to US$ 21.3 billion in 2018 with drop of US$ 1.6 billion as compared to 2017. The US foreign direct investment (FDI) in India kept at US$ 44.5 billion in 2017, a 15.1 percent increase from 2016 which was led by manufacturing. India had increased FDI in the United States to US$ 9.8 billion in 2017, up 11.5 percent from 2016.

For apparel, the US is one of the top importing countries across the world and India is among the top five exporting countries. The exports and imports of apparel from India reached to US$18.5 billion and US$ 839.87 million in 2018. The EU and the US accounted for 35 percent and 22 percent of India's apparel exports in the year 2018, followed by the United Arab Emirates (UAE) with a share of 20 percent. The US and the EU combinedly contributed to more than 55 percent of India's apparel exports.

India's textile and clothing exports to the US

The total Indian textile and clothing exports to the US  stood at US$ 8,220.74 million in 2018 with a significant share of apparel and home textiles. Apparel and home textiles together accounted for more than 90 percent of the total textile and clothing exports with share of 52.7 and 40.8 percent respectively. The overall Indian textile and clothing exports to the US has witnessed a growth CAGR of 4.3 percent from 2014 to 2018 and projected to reach US$ 9330.48 million by 2021.

The export of fibres has shown the highest CAGR of 8.1 percent from 2014 to 2018 and is forecasted to reach US$ 136.03 million by 2021.