India Becomes Top Supplier of Cotton Products to US

India Becomes Top Supplier of Cotton Products to US

Why in News? 

According to the U.S. Department of Agriculture (USDA) report, India became the largest supplier of cotton products to the United States in 2025, overtaking China.

Highlights of USDA Report 2025

• According to the “Cotton: World Markets and Trade” report published by the United States Department of Agriculture (USDA), India became the largest supplier of cotton products to the United States in 2025, surpassing China. 
• India exported about 0.6 million tonnes of cotton-based products (including apparel and home textiles) to the U.S. market in 2025, while Chinese exports declined to about 0.5 million tonnes. 
• China’s share in U.S. cotton product imports has steadily declined. Chinese exports to the U.S. fell sharply from their peak around 2010, and imports have decreased by about 60% since that peak. 
• India’s textile and apparel sector is a key export industry, with total textile exports estimated at about $36.6 billion, of which ready-made garments account for around $16.1 billion (44%). 

Reasons Behind India’s Rising Cotton Textile Exports

• • Geopolitical Shifts: The US UFLPA restrictions on China’s Xinjiang region forced American brands to pivot. India filled this gap, reaching a record $11.49 billion in textile exports to the US in FY25.
  • Raw Material Base: India is the largest cotton producer globally, accounting for nearly 23% of global cotton production. Cotton is cultivated on about 13.06 million hectares, producing around 29–33 million bales annually (170 kg each).

• Supply Diversification: Rising labour costs in China and U.S.–China trade tensions have encouraged global brands to diversify sourcing. India has benefited from “China+1 strategy”, capturing larger shares of export markets such as the United States and the European Union. 

• Vertical Integration: India controls the entire value chain from farm to fashion. Unlike competitors, Indian mills perform spinning, weaving, and garmenting in-house, reducing lead times by 15%.
• Government Schemes: Programs like PM MITRA and PLI have infused billions into infrastructure. These “Mega Parks” aim to lower logistics costs from 14% to 8% of total production value.
• Labour Arbitrage: India offers a massive, skilled workforce. Manufacturing costs remain roughly 20% lower than in China, making India the preferred hub for high-volume basic apparel.
• Sustainability Focus: India leads in Organic Cotton production. Adoption of BCI standards appeals to ESG-conscious US retailers like Walmart and Gap, securing long-term contracts.
• Export Incentives: The RoSCTL scheme provides rebates on embedded taxes. This financial cushion allows Indian exporters to stay competitive against zero-duty nations like Bangladesh and Vietnam.
• Digital Traceability: Indian firms now use blockchain to track cotton origins. This transparency ensures compliance with strict US import laws, boosting buyer confidence in Indian textiles.

India’s Cotton Cultivation Status 

• About: Cotton is one of India’s most important commercial and cash crops, forming the backbone of the textile and apparel industry. The crop supports the livelihood of over 6 million farmers and millions of workers.

• Agro-Climatic Needs: Cotton is a Kharif crop requiring 21°C–30°C temperatures and 50–100 cm rainfall. It thrives in the Black Soil (Regur) of the Deccan Plateau and alluvial soils of the North.
• Sowing & Varieties: Planting occurs between April and June. India predominantly uses Bt Cotton (genetically modified), which accounts for over 95% of the total acreage to resist bollworm pests.
• Harvesting: Picked between October and March, the raw “kapas” is sent for ginning to separate lint from seeds.
• Cultivation: Around 67% of India’s cotton area is rain-fed, mainly in central and southern regions, while irrigated areas provide higher yields.

• Area: Cotton is cultivated on approximately 12.7 million hectares of land in India (2024), making it one of the largest crop areas among commercial crops. 
• Agro-Climatic Zones: Cotton cultivation in India is divided into three major agro-climatic zones: the Northern Zone (Punjab, Haryana, Rajasthan), Central Zone (Gujarat, Maharashtra, Madhya Pradesh), and Southern Zone (Telangana, Andhra Pradesh, Karnataka, Tamil Nadu). 
• Major States: The leading cotton-producing states include Gujarat, Maharashtra, Telangana, Rajasthan, and Karnataka. Gujarat produces about 152 lakh tonnes, followed by Maharashtra (around 140 lakh tonnes) and Telangana (about 81 lakh tonnes).
  • The top three states—Gujarat, Maharashtra, and Telangana—account for nearly 60% of India’s total cotton production. These states benefit from favorable black soil, warm climate, and improved seed technologies such as Bt cotton hybrids. 
• Export Volume: India exported about 16.08 lakh tonnes of cotton in FY 2024-25, representing roughly 0.91% of total domestic production. Although production is large, most cotton is consumed by the domestic textile industry. 
• Major Exporters: Key export markets for Indian cotton and cotton yarn include Bangladesh, Vietnam, China, and Turkey, which rely on India’s raw cotton and yarn for their garment manufacturing industries.