Raw Material Scenario: India, China Dominate Global Textile Production

Walk into any garment factory floor, whether in Tiruppur or Ho Chi Minh City, and the first question a production manager asks is simple: where is the fabric coming from? That single question decides costs, lead times, and how competitive a country’s fashion industry can be on the world stage. Raw materials are the invisible foundation of every t-shirt, saree, and denim jacket, and a handful of countries control most of that foundation. India and China sit right at the centre of this story, dominating everything from cotton fields to synthetic fibre plants.

Cotton production leaders 🔗

Cotton is still the fibre most people associate with clothing, even though synthetics have overtaken it in global volume. On this front, India and China are locked in a close contest for the top spot, with their combined output regularly accounting for close to half of the world’s cotton supply. India is currently the world’s largest producer of cotton, with recent estimates putting its share of global output at roughly a quarter, while China follows closely as the second-largest grower. Depending on the season, weather patterns, and government procurement policies in either country, the exact ranking between the two can shift from year to year, but they consistently remain the two biggest names in the game.

This scale gives both countries something money alone cannot buy quickly: control over their own supply chain. When a spinning mill in Coimbatore or Shanghai needs raw cotton, it does not have to look far or pay a steep import premium. Cotton supports millions of livelihoods in India, from farmers in Gujarat and Maharashtra to workers in ginning and spinning units, making the crop as much a social anchor as an economic one.

Bangladesh and Vietnam’s import dependence 🔗

Not every major garment-exporting nation has this advantage. Bangladesh, despite being one of the world’s largest apparel exporters, grows almost none of its own cotton. The country depends on imports for about 98 percent of its cotton needs, sourcing raw material from as far away as West Africa, Brazil, and India itself. Vietnam faces a similar reality, importing the bulk of the cotton, yarn, and fabric its factories need, since domestic farming cannot support an export machine of that size.

This dependence is not just a footnote. It means every currency fluctuation, shipping delay, or trade policy shift abroad ripples straight into the cost sheet of a Bangladeshi or Vietnamese garment order. It is one of the reasons why, even as these countries win on labour costs and manufacturing speed, they remain structurally more vulnerable than India or China when it comes to raw material security.

Manmade fibres production 🔗

Cotton’s story is only half the picture. Since the early 2000s, polyester and other manmade fibres have overtaken cotton as the most consumed textile fibre on earth, driven by lower costs, easier blending, and functional properties like moisture-wicking and stretch. Here, the leadership picture looks quite different. China alone accounts for over 70 percent of global chemical fibre production, an almost unmatched level of dominance built on decades of investment in petrochemical and polymer infrastructure.

India holds the second position, though the gap is significant. India is the world’s second-largest producer of manmade fibres after China, with a growing base in polyester and viscose. Government-backed schemes for technical textiles and production-linked incentives are pushing this sector further, since manmade fibre garments now make up a majority share of global apparel, well ahead of cotton-based clothing.

Why manmade fibres matter more each year 🔗

The shift toward synthetics is not accidental. Cotton farming is water-intensive and vulnerable to climate swings, while manmade fibre production can be scaled up in a factory regardless of monsoon patterns. Brands sourcing activewear, technical outerwear, or budget fast fashion increasingly lean on polyester and viscose blends, which is why countries with strong petrochemical bases, like China, and increasingly India, hold growing leverage in the raw material conversation.

India’s diverse textile production 🔗

What sets India apart from most other major players is not just cotton or synthetics, it is the sheer range of natural fibres the country produces at scale. This diversity lets Indian mills and exporters serve everything from budget basics to premium silk sarees without relying on a single crop or import source.

Jute: the golden fibre 🔗

India is the leading jute goods-producing country in the world, accounting for roughly three-quarters of global output, concentrated heavily in West Bengal. Jute’s biodegradable nature has given it a second life as plastic bans spread across various markets, pushing demand for jute bags, geo-textiles, and packaging material.

Silk: the queen of textiles 🔗

On silk, India holds the number two spot globally. India is the second-largest producer of silk in the world, and it remains the only country producing all four major commercial varieties, mulberry, eri, tasar, and muga. Sericulture also supports close to ten million people across rural and semi-urban India, making it as much a livelihood story as a raw material one.

Wool: a smaller but steady presence 🔗

Wool is where India’s ranking is more modest. India sits among the top ten wool-producing countries globally, supported by one of the world’s largest sheep populations. While wool contributes a smaller share of India’s overall textile raw material base compared to cotton, jute, or silk, it still feeds a steady domestic market for shawls, carpets, and winter wear.

Strategic raw material implications 🔗

Put all of this together and a clear pattern emerges. Countries that produce their own raw material, cotton, manmade fibres, jute, silk, or wool, are not just saving on import bills. They are insulating themselves from currency shocks, shipping disruptions, and sudden price spikes that can wipe out a garment order’s profit margin overnight. India and China’s dominance across cotton and fibre production respectively gives their textile industries a structural head start that countries like Bangladesh and Vietnam simply cannot replicate without years of investment in farming and petrochemical infrastructure.

That said, raw material strength alone does not guarantee export success. Bangladesh, despite importing almost all its cotton, has built one of the world’s most efficient garment manufacturing ecosystems and remains a top global apparel exporter. This shows that raw material access is a powerful advantage, but manufacturing efficiency, labour costs, and trade agreements matter just as much in the final export equation. For India specifically, the challenge going forward is converting its raw material strength, in cotton, jute, and silk, into a bigger share of finished garment exports, rather than exporting yarn and fabric while other countries capture the value-added stitching and branding stage.

What do you think? 🔗

What do you think? If India already leads the world in cotton and jute production, what is holding it back from capturing a larger share of global garment exports the way Bangladesh has? And as manmade fibres continue replacing cotton in global fashion, should India be investing more heavily in synthetic fibre capacity to compete with China?

References

1. https://www.ibef.org/industry/textiles
2. https://www.investindia.gov.in/team-india-blogs/cotton-textile-industry-india
3. https://www.ecofinagency.com/news-agriculture/1812-51531-africa-supplied-41-of-bangladesh-cotton-imports-in-2024/2025
4. https://www.statista.com/statistics/271653/distribution-of-global-chemical-fiber-production-by-region/
5. https://www.ibef.org/news/manmade-fibre-textiles-exports-to-rise-75-by-2030-textile-industry
6. https://www.ibef.org/exports/jute-industry-india
7. https://www.ibef.org/exports/indian-silk-industry
8. https://www.ibef.org/exports/wool-industry-india