The global market value of the apparels industry is estimated at USD 1.45 Trillion in 2021.

The global apparels market is projected to grow at a CAGR of 3.25%, to attain a total market value of USD 1.7 Trillion by 2026. The key segments accounting for ~80% of the market are women’s and men’s wear apparels. Sportswear is an emerging product segment, estimated to grow from a market size of USD 217 Bn in 2021 to USD 270 Bn in 2026, growing at a CAGR of 4.5% as compared to the industry growth rate of 3.25%.

Of the USD 1.36 Trillion market, the size of global imports of apparels and ready-mades garments is more than USD 410 Billion.

The global imports of apparels and ready-made garments increased from USD 383 Bn in 2016 to USD 429 Bn in 2019. The top 10 product lines which accounted for approximately 80% of global apparels exports are (i) Women’s & Men’s suits, blazers, jackets, trousers, (ii) Winterwear articles like, Jerseys, pullovers, cardigans, waistcoats, etc., (iii) T-shirts, singlets, vests, etc., (iv) Women’s & Men’s overcoats, cloaks, wind-cheaters, wind-jackets, etc., (v) Men’s & Women’s shirts, blouses, shirt-blouses, etc., (vi) Tracksuits, ski-suits, swimwear, etc., and (vii) Garments made of coated, laminated, wadding, felt and non-woven textiles. A detailed list of products being imported globally is elaborated in annexure 1.

North America and Europe are the key import markets accounting for more than 75% of global imports of apparels. Other key markets with appreciable share in apparels imports are Japan, Australia, Russia, China and South Korea.

Other mid-size import markets with a high rate of growth of imports are Spain, Netherlands, Poland, Canada, South Korea, Switzerland, Austria, Russia, UAE, Mexico, Czech Republic, Portugal, Hungary, Israel, Romania, Brazil, etc. The key exporters of apparels and ready-made garments which pose competition to India and UP’s apparels exporters are China, Bangladesh, Vietnam, Germany, Italy, Turkey, Spain, France and Netherlands.

Apparels exports from Uttar Pradesh grew from INR 8.31 Th. Cr. in 2015-16 to INR 13.53 Th. Cr. in 2020-21, growing at a CAGR of ~11% in the last 4 years.

Apparels is one of the key products being exported from Uttar Pradesh. UP’s share in India’s apparels exports increased from 7.5% in 2015-16 to 12.3% in 2019-20. On an average, UP contributes to ~12.1% of India’s exports in this sector, averaged for the last 3 years. Apparels is also the 3rd largest sector in terms of exports from Uttar Pradesh, contributing ~9.7% to UP’s total exports.

Uttar Pradesh is an active exporter of both HS 61 and HS 62, Apparels and clothing accessories, knitted & crocheted and not knitted & crocheted. The products categorized under HS chapter 62, i.e., Apparels and clothing accessories, not knitted or crocheted contribute to ~80% of the apparel’s export of the state.
From a raw material perspective, the key products being exported are apparels made up of synthetic or man-made fibers, followed by articles made of cotton fibers in the HS 62 product segment. For HS 61, products made of cotton are the leading contributors of UP’s apparels exports. For boosting apparels exports, the exporters may strategically scale-up exports of ready-made garments and accessories, not knitted or crocheted and undertake product development & export diversification exercises for knitted/ crocheted apparels. The top 5 products in both the segments that account for ~ 50% to 60% of state’s average exports of apparels are illustrated in the figure below: (all figures in USD Mn, 3-year average) (Source: Official website of Directorate General of Commercial Intelligence & Statistics, Data dissemination portal) A detailed list of products being exported from Uttar Pradesh is attached in Annexure 2.

Europe is the key export destination for apparels exported from Uttar Pradesh, followed by North America and Asia. Asia, Europe and North America together account for 95% of apparels exports from Uttar Pradesh

Select 10 markets account for 80% of UP’s apparels exports globally. The key markets served by apparels exporters from Uttar Pradesh are USA (28%), UK (13%), Spain (9%), Germany (9%), France (6%), UAE (6%), Denmark (4%), Netherlands (3%), Italy (2%), Sweden (2%), Saudi Arabia (2%) and Australia (2%). UP’s exports have also showcased appreciable diversification to markets like, Israel, Sweden, Greece, Nigeria, Ireland, Qatar, Nepal, Somalia, Senegal, Sri Lanka, Kyrgyzstan, Jordan etc. with a high rate of growth during the last 4 years. The heatmap in figure 7 illustrates the distribution of Uttar Pradesh’s apparels exports across the globe. A list of markets that are being catered by UP’s exports is detailed in Annexure 3.

Key export opportunities are identified for apparels exporters of Uttar Pradesh in terms of potential for scaling up of exports and export diversification opportunities as shown in figure 8. For scaling up of exports, the markets being catered by UP’s exporters at present (contributing ~66% of UP’s exports or top 10 markets) are identified. For export diversification, market opportunities are identified based on their share in global imports. At a market level, existing products and new products are identified for scaling up and diversification of exports. A comprehensive list of product level opportunities in the identified target markets is detailed in annexure 4.

G.B. Nagar in Uttar Pradesh has emerged as one of the key hubs of apparels manufacturing in the state. The district contributes to approximately 90% of the manufacturing output from Uttar Pradesh. G.B. Nagar has also been identified as the ODOP district for ready made garments.
The presence of enabling ecosystem for apparels sector in G.B. Nagar further supports the growth of the district as an apparels export hub. The presence and proximity to supporting infrastructure like, Export Promotion Industrial Park (EPIP) – Noida, World Trade Centre – Greater Noida, etc. and institutions like, Northern India Textile Research Association (NITRA) – Ghaziabad, Noida Apparel Export Cluster (NAEC), etc. The proximity of G.B. Nagar with the IGI airport, ICDs at Dadri and Tughlaqabad enables fast paced movement of goods. The upcoming transportation and logistics projects in the district like, Multi-modal logistics hub, Jewar airport will further improve the logistics ease for exporters of the state and G.B. Nagar in particular. G.B. Nagar also lies on the western and eastern dedicated freight corridors. Other key apparels manufacturing districts in the state are Ghaziabad, Kanpur, Unnao, Meerut, Mathura, Agra and Lucknow. The state specializes in several traditional crafts like, chikankari, zari zardozi, banarasi sarees, etc. which have been recognized as an ODOP product or have been provided a G.I. mark which may potentially support the manufacturers and exporters in branding and marketing of the products being manufactured in Uttar Pradesh. Additionally, there are several export promotion councils and industry associations which support apparels and ready-made garment manufacturers and exporters through export promotion and networking support provided by them. Following is an indicative list of institutions which actively engage with apparels manufacturers and exporters:

a G.I. mark which may potentially support the manufacturers and exporters in branding and marketing of the products being manufactured in Uttar Pradesh. Additionally, there are several export promotion councils and industry associations which support apparels and ready-made garment manufacturers and exporters through export promotion and networking support provided by them. Following is an indicative list of institutions which actively engage with apparels manufacturers and exporters:

The state government provides several incentives to apparels and textiles manufacturers through the Handloom, Powerloom, Silk, Textile & Garmenting Policy 2017: Govt. of Uttar Pradesh. Export oriented incentives like, marketing development assistance, certification cost subsidies, gateway port subsidies are provided through the Uttar Pradesh Export Promotion Policy 2020-25.
The central government also provides several incentives under RoSCTL, ATUFS, Samarth scheme and Market Access Initiative scheme. The central government also notified the Production Linked Incentive (PLI) Scheme for apparels and ready-made garments manufacturers. A brief summary of the incentives provided under these policies are detailed below: Handloom, Powerloom, Silk, Textile & Garmenting Policy 2017: Government of Uttar Pradesh

Handloom, Powerloom, Silk, Textile & Garmenting Policy 2017: Government of Uttar Pradesh

Export oriented incentives offered by the Government of Uttar Pradesh under Marketing Development Assistance and Gateway port subsidy

Central government policies and schemes for Apparel manufacturers and Exporters