India’s Textile Triumph: Stitching Success Amid Falling Cotton Prices and Global Shifts....

~ Sumon Mukhopadhyay.

========================

Introduction: India’s Moment in the Global Textile Spotlight:

In the ever-evolving fabric of global trade, India’s readymade garment industry is emerging as a formidable force, poised to redefine the $1.7 trillion apparel market. 

A confluence of falling cotton prices, driven by robust domestic production, and disruptions in Bangladesh’s garment sector is creating a unique opportunity for Indian manufacturers. 

Companies like Kewal Kiran Clothing Ltr (Rs.430.95) and Raymond Lifestyle Ltd (Rs.1034.60) are capitalizing on these tailwinds, blending cost advantages with quality and sustainability to capture global attention. 

As the United States’ tariff policies evolve under the incoming Trump administration, India’s garment giants are weaving a narrative of resilience and ambition, ready to claim a larger share of the world’s wardrobe.

Falling Cotton Prices: A Boon for Readymade Garments:

Cotton, the cornerstone of India’s readymade garment industry, is experiencing a welcome price decline, fueled by strong supply forecasts. 

The Cotton Association of India (CAI) recently revised the country’s cotton production estimate upward to 291.35 lakh bales for the 2024-25 season, driven by increased output in Odisha. This marginal increase, coupled with global supply improvements, has led to a 0.27% drop in cotton candy futures to ₹54,520, as reported by Reuters on May 29, 2025. While yarn prices have also softened, the real impact is felt in readymade garment production, where lower cotton costs directly enhance margins.

For companies like Kewal Kiran Clothing Ltd, known for youth-centric brands like Killer and Lawman, and Raymond Lifestyle Ltd, a leader in premium menswear, this cost relief is transformative. Reduced input costs allow these firms to offer competitive pricing to global buyers while maintaining profitability. 

The CAI’s downward revision of cotton consumption to 307 lakh bales and exports to 15 lakh bales (a sharp decline from 28.36 lakh bales last season) signals a supply surplus, further easing price pressures. This dynamic empowers Indian garment makers to pursue new export markets, from Europe to Southeast Asia, with renewed confidence.

Bangladesh’s Garment Crisis: India’s Strategic Gain:

Bangladesh, the world’s second-largest readymade garment exporter, is grappling with a perfect storm of challenges: political unrest, a crippling energy crisis, and a ban on garment exports through key land routes, particularly via India’s northeastern borders. 

This restriction, rooted in regional trade and security policies, has disrupted supply chains, delaying shipments and inflating costs. 

Combined with labor unrest and power shortages, these issues are eroding Bangladesh’s low-cost advantage, prompting global brands like H&M and Zara to diversify their sourcing.

India, with its robust infrastructure, stable policy environment, and growing adherence to international labor and environmental standards, is seizing this opportunity. 

The ban on Bangladeshi garments via land routes has directly boosted Indian exporters, particularly in high-demand categories like casual and formal wear. Industry estimates suggest India’s garment exports could grow by 8-10% annually through 2027, driven by this shift. 

Companies like Raymond Lifestyle, with its premium offerings, and Kewal Kiran, catering to the youth market, are expected to see increased order books, going forward as global buyers prioritize reliability and quality over rock-bottom prices.

Navigating the US Tariff Landscape: A Path to Premium Markets:

The United States, a critical market for Indian readymade garments, presents a complex tariff environment, especially with the Trump administration’s 2025 trade policies. 

Proposed tariffs include a 10-20% blanket rate on all imports and up to 60% on Chinese goods, while India faces standard Most Favored Nation (MFN) tariffs of 10-20% on apparel, lacking the duty-free access some competitors enjoy. 

Despite this, India’s garment industry is turning challenges into opportunities. The CAI’s projection of a 13.36 lakh bale drop in cotton exports to 15 lakh bales reflects sluggish trade but also frees up domestic supply for value-added garment production, aligning with global demand for premium and sustainable apparel.

The “China Plus One” strategy is driving brands to shift sourcing from China, where tariffs are steepest, to India, where quality and compliance are improving. Raymond Lifestyle’s tailored suits and sustainable fabrics resonate in the US premium segment, where price sensitivity is lower. 

Brands like Raymond Lifestyle, which cater to the premium menswear segment, are poised to benefit. Their focus on design, branding, and sustainability helps them command better prices globally, somewhat neutralizing the tariff disadvantage.

Meanwhile, Kewal Kiran, targeting youth and mid-segment fashion, may find more success in price-sensitive but emerging export markets like the Middle East, Southeast Asia, and Latin America, where tariff burdens are lighter.

India’s garment exports to the US reached $4.2 billion in 2024, a 5.6% increase, per the Confederation of Indian Textile Industry (CITI), with further growth expected as Bangladesh’s reliability falters.

Conclusion: Weaving a Global Legacy:

India’s readymade garment industry is at a defining moment, where global disruptions and domestic strengths are aligning to create a vibrant opportunity. Falling cotton prices, underpinned by a projected 291.35 lakh bale harvest, are bolstering margins, while Bangladesh’s export ban and supply chain woes are redirecting global orders to India. Even the US tariff regime, though challenging, is being navigated with strategic focus on premium, sustainable garments.

For companies like Kewal Kiran Ltd and Raymond Lifestyle Ltd, the fabric of opportunity is real. Strategic investments, smart sourcing, and branding can help them turn this temporary advantage into long-term global relevance. 

As the world’s apparel supply chain reorients, India’s looms are spinning a story of ambition, resilience, and triumph—ready to dress the globe in quality and style. The loom is set, and it’s time to weave a success story.