India has overtaken China as the largest supplier of cotton products, including apparel and home textiles, to the United States in 2025. The shift reflects higher US tariffs on Chinese goods, reduced dependence on China by American firms, and India’s stronger position in textile manufacturing and compliance systems. The development is for global trade, textile exports, and supply chain realignment.
India’s Rise in US Cotton Imports
US cotton product imports remained flat in 2025 at 3.3 million tonnes, close to the 15-year average. Imports from China fell to about 0.5 million tonnes, while imports from India rose to around 0.6 million tonnes. This made India the leading supplier to the US market for cotton products during the year.
Role of Tariffs and Supply Chain Shifts
The US imposed several rounds of tariffs on China, ranging from 10% to 125%. Tariffs on other countries were lower. This widened the cost gap and encouraged US buyers to diversify sourcing away from China. Countries such as Vietnam, Bangladesh, Pakistan, Mexico and Cambodia also gained market share. US firms have further reduced reliance on China due to the Uyghur Forced Labor Prevention Act and rising geopolitical risk.
India’s Competitive Advantage
India benefits from a vertically integrated textile supply chain. This helps firms meet traceability and compliance standards more effectively. Such integration supports exports of yarn, fabric, garments and home textiles. India’s position has improved as global buyers seek alternative suppliers with lower policy risk and stronger compliance capacity.
Outlook for 2026 and Global Cotton Market
US cotton product imports are expected to rise in 2026 due to low retailer inventories and stable consumer demand. Globally, cotton production for 2025-26 is forecast at 121 million bales, while consumption is projected at 118.6 million bales. Global trade is estimated at 43.9 million bales, and ending stocks are expected to rise to 76.4 million bales, indicating continued supply pressure in the market.
Last Modified: April 28, 2026