India’s textile mills shift gears as US cotton imports rise amid domestic supply crunch

India’s textile industry is turning to US Upland cotton imports to manage domestic supply constraints and maintain global competitiveness in apparel production. Latest USDA data points to a massive rise in US Upland export sales, with India being a major buyer, stepping up imports to compensate for an anticipated domestic production shortfall (projected to be the lowest in 15 years due to weather and crop diversion) and to meet its rising mill consumption.

This reliance on imported fiber is notable, as India is historically the world's second-largest cotton producer. The financial imperative driving this shift is clear: while US Pima cotton sales for luxury markets saw a decline, the robust volume of cheaper, reliable Upland cotton allows Indian mills to feed the massive demand for fast fashion and basic apparel from global markets, particularly as Vietnam and Bangladesh also rapidly expand their US cotton orders.

This strategy helps maintain cost-competitiveness, especially as Indian textile and apparel exports face challenges like a steep 50 per cent US tariff on most goods and a lack of preferential trade agreements, which have caused a double-digit decline in apparel exports in recent months, squeezing margins for major textile hubs like Tirupur and Surat. The current focus remains on ensuring uninterrupted raw material supply to hit the ambitious target of making the industry a $350 billion powerhouse by 2030, leveraging the imported Upland cotton to compete on price and volume.