Why India matters

India has the potential to play a pivotal role in global fashion sourcing over the next few years. Credit: Indianfaces / Shutterstock

India’s people, traditions, and culture are uniquely inspiring. But beyond cultural admiration, India’s pro-business attitude makes it an increasingly attractive destination for fashion sourcing and investment. As global supply chains evolve, India consistently ranks high on our list of sourcing and investment opportunities.

Grey Matter Concepts is a New York-based wholesaler of men’s basics, including tshirts, underwear, sleepwear, and socks, which like many US companies sources from China, Vietnam, Cambodia, and other regions.

However, India has become an increasingly important sourcing partner. Through on-the-ground experience, we have learned what works and what doesn’t, and we see India’s potential to play a pivotal role in global fashion sourcing. 

In today’s unpredictable landscape, brands and retailers must be more strategic than ever in their sourcing decisions. The pandemic exposed vulnerabilities in just-in-time supply chain strategies, as lockdowns and fluctuating consumer demand led to severe disruptions.

In this environment, a flexible and diversified sourcing strategy is crucial. Companies must seek partnerships in countries that offer cost-effective manufacturing and prioritise business-friendly policies, reliable supply chains, and ethical labour practices. 

The global retail sector is heavily influenced by trade policies, tariffs, and geopolitical shifts, all of which impact pricing and consumer demand. Many US brands and retailers are reassessing their sourcing strategies, looking beyond traditional East and Southeast Asian manufacturing hubs. India has emerged as a key focus, particularly in textiles and fashion.

Sustainability has also become a major priority for retailers. Climate change is reshaping business practices, and companies are investing in eco-friendly initiatives. India stands out in this regard, with a growing emphasis on sustainable production processes. During recent visits to our Indian partners, we observed firsthand the commitment to integrating sustainability across operations, from materials sourcing to energy-efficient production methods. This is an area where India can further differentiate itself as a global leader.

In India, sustainability isn’t just an initiative — it’s ingrained in daily life. Preservation and recycling of resources are second nature, not something that needs to be requested or explained. Water conservation is essential, especially in the south, where shortages are common. Many mills implement water recycling systems, and even small measures, like faucets running for only a few seconds, reflect this cultural mindset. Similarly, most new factories leverage solar power, harnessing abundant sunlight to generate free electricity. Single-use plastics are also minimised, aligning with a broader commitment to environmental responsibility.

Given the country’s vast population and environmental impact, Indian mills are intensely focused on sustainable practices, not as a trend but as a necessity. Indeed, the effects of climate change are altering consumer habits in ways that industries must anticipate. As seasons shift, with longer summers and shorter winters, consumer needs will change. This evolution will affect what people wear and how they shop, eat, and engage in daily activities. Retailers and brands must proactively analyse these trends and adapt their product offerings accordingly. 

With ongoing trade shifts and uncertainties surrounding the US’s largest textile trade partners, India has a prime opportunity to establish itself as a top-tier sourcing destination. However, success will depend on its ability to build and maintain trust with global business partners.

Drawing a parallel from cricket — where legends like Sachin Tendulkar and MS Dhoni earned their reputations through consistency, reliability, and leadership —India’s textile industry must adopt the same principles. Just as these players became indispensable through performance and trust, Indian manufacturers must do the same to stand out on the global stage.

Consequently, here are some key areas for growth and improvement:

1. Timely deliveries: Punctuality is critical in international trade. Delays lead to increased costs and lost opportunities, sometimes with irreversible consequences. Indian manufacturers must prioritise on-time deliveries to compete effectively with other sourcing regions, particularly China. At my company, we stand by our motto: “a date is a date and on time is late” 
2. Speed and responsiveness: Businesses must improve lead times, sample turnaround, and overall communication. A proactive approach to addressing inquiries and fulfilling orders swiftly will strengthen India’s reputation as a reliable partner. 
3. Quality and compliance: As global trade regulations become increasingly stringent, ensuring the highest quality and compliance standards is non-negotiable. Consistency in these areas will build long-term credibility with international buyers. Moreover, with recent challenges in child labour and other labour malpractices weighing on the global textile supply chain, effective policies barring abusive labour practices are good for India and would set a standard in the developing world. 
4. Innovation and sustainability: The future of fashion lies in sustainable fibres, eco-friendly production methods, and cutting-edge fabric technology. Indian manufacturers should continue investing in innovation to stay ahead of market trends and meet evolving consumer expectations. 

India has the potential to be a dominant player in the global textile and fashion industry. By prioritising reliability, efficiency, and sustainability, Indian manufacturers can strengthen their partnerships with international brands and retailers. The opportunity is here — now is the time for India’s industry to seize it. 

Under Prime Minister Narendra Modi’s leadership, India is rapidly expanding its economic and industrial reach, creating unprecedented opportunities for businesses and workers alike. As Modi himself stated, “Make in India, Make for the World.” This vision extends beyond major cities to include remote villages, smaller developing towns, and individuals with disabilities, ensuring economic growth benefits everyone.

To put this into perspective, while the US welcomes 3.6m newborns annually, about 1% of the US population, India sees more than 24m births yearly, about 2% of India’s 1.4bn population. This emerging generation will be at the forefront of India’s expanding workforce, ready to contribute to the industries that Modi’s policies are strengthening today. For global businesses, now is the time to forge meaningful partnerships with India, tapping into a market that is both sustainable and full of potential. 

Indeed, according to Dr Keshav Kranthi, ICAC’s chief scientist, such verification and regulation “can be challenging in Asia and Africa because the crop is primarily grown by smallholder farmers”. Globally, smallholders account for more than 99% of production, he stresses.

US Cotton Trust Protocol, which is a voluntary sustainability programme and traceability platform, says the proposed EU green claims directive, which ensures that companies substantiate their claims, will also “have a significant impact” in 2025. It offers quantifiable measurements across six key sustainability metrics:

• Water use 
• Energy efficiency 
• Land use 
• Soil health 
• Soil carbon  
• Greenhouse gas emissions.  

The current demands are “pushing brands and retailers to rethink their supply chains,” it argues, adding that companies will also have to respond to “improved time to market efficiencies.” It adds that to build a “more resilient and responsible cotton industry (…) collaborative partnerships will be essential.”

Trade policy changes

Lu explains today’s fashion business is highly global and relies heavily on the frequent movement of goods and services across borders. Thus, the uncertain and protectionist nature of US trade policy during Trump’s second term could present significant challenges to the fashion industry in 2025.

“Notably, when the 7.5% Section 301 tariff was imposed on selected Chinese clothing products in 2018, the US Consumer Price Index (CPI) growth was relatively low at 1.9%. However, imposing a 20% global tariff, a 60% tariff on Chinese products, and the existing 15-30% regular tariff on clothing when the CPI is historically high is like “adding fuel to the fire,” he says.

While Crietee worries the power imbalance in the apparel supply chain will mean the biggest burden will be placed on manufacturers.

However, Randy Carr, president and CEO of emblem and patch manufacturer World Emblem, believes we will see more nearshoring come into fruition in 2025, noting there are many advantages for brands looking to nearshore operations, specifically faster turnaround times, better quality control, and overall cost savings.

“By relocating production to neighboring countries like Mexico, businesses can reduce transportation costs, shorten lead times, and gain greater oversight of manufacturing processes. Nearshoring has the potential to boost the growth of Mexican manufacturing exports to the US from $455bn today to an estimated $609bn in the next five years, according to Morgan Stanley Research,” he says.

On the other hand, Accenture’s CEO Matt Jeffers states it is important to remember nearshoring will put further pressure on price points and take time to take effect especially in new countries such as those in North Africa.

Lamar sees knowledge and partnership as being key. Companies will need to foster greater collaboration with their supply chain partners as they will be responsible for managing diligence and diverse sourcing programmes.

“Fast changing and comprehensive regulations and an uncertain tariff future (including the likelihood that new US tariffs trigger retaliatory tariffs), will mean supply chain partners need to be increasingly connected with each other and with appropriate government officials so they can both inform those policies while they are being crafted and respond to new policies that take effect.

“Winners in 2025 and beyond will be those who are ready to embrace the challenges, and who can do so while staying focused on delivering to their competitive advantage, whatever that may be,” he shares.