# Apparel and footwear and Textiles and leather Garments and shoes are cut and sewn from fabric and leather, so the textile mills are the apparel industry's main supplier: about ₹34 of every ₹100 of Indian apparel output goes to textiles and leather, and both sides share the same export markets, US tariff risk and government schemes. Source page: https://www.materialinsights.org/links/apparel-and-footwear-and-textiles-and-leather/ [Apparel and footwear](https://www.materialinsights.org/industries/apparel/) (industry) and [Textiles and leather](https://www.materialinsights.org/industries/textiles/) (industry): 4 relationships. ## How they are linked ### 1. Buys from *Physical flow · Strong · Apparel and footwear buy from textiles and leather* Fabric, yarn, trims and finished leather are the main materials in clothing and footwear, so garment and shoe makers spend a large part of their revenue with textile and leather firms. - **₹34.4** of every ₹100 of apparel and footwear output, all rounds (India 2022) - **₹25.2** bought directly This is the second-largest inter-industry link on the site. Prices pass through only slowly: in India's wholesale price index the monthly correlation is about 0.07 and the 12-month correlation about 0.28, with textiles leading by a month, so fabric cost changes reach garment prices weakly and with a delay. Sources: [OECD](https://www.oecd.org/en/data/datasets/input-output-tables.html); [Material Insights (World Bank, FRED, IMF data)](https://www.materialinsights.org/industries/apparel/price-links/) ### 2. Industry input *Physical flow · Medium · Textiles and leather to garment and footwear makers* Fabric mills supply garment makers, and leather and mesh suppliers supply shoe makers; the site rates the dependence 3 of 5 for both, because fabric and leather are available from many mills and countries. - **3** enterprise types in apparel and footwear that depend on textiles and leather - **3 of 5** highest criticality, for fabric mills and footwear material makers Cut-make-trim factories rate only 2 of 5, since they process fabric rather than depend on a particular mill. The dependence is less about scarcity than about supplier choice, lead time and quality. Enterprise types that depend on it: - Fabric mills supplying garment makers: yarn and fabric (criticality 3 of 5) - Footwear material and sole makers: leather and mesh uppers (criticality 3 of 5) - Cut-make-trim garment factories: fabric (criticality 2 of 5) Sources: [Material Insights](https://www.materialinsights.org/industries/apparel/materials/) ### 3. US market exposure *Shared risk · High in India · US tariffs hit garment makers and their fabric suppliers together* The United States is a key market, taking a third of India's garment exports, so US tariffs cut orders for garment makers and, through them, for the textile mills that supply them. - **33%** US share of India's garment exports, 2024 - **50%** total US tariff on Indian goods from 27 August 2025 - **18%** reciprocal US tariff on select Indian goods after the extra 25% was removed, 7 February 2026 The apparel export council said in August 2025 that the industry could not absorb a 50% duty and that it would hit micro and medium firms selling mainly to the US hardest. The removal of the additional 25% in February 2026 left an 18% reciprocal rate on goods including textiles, apparel and footwear, and the episode showed how one market's policy can move the whole Indian textile chain. Sources: [The Week (PTI)](https://www.theweek.in/wire-updates/business/2025/08/07/dcm19-biz-india-us-tariff-apparel.html); [KPMG](https://kpmg.com/us/en/taxnewsflash/news/2026/02/united-states-removes-tariffs-imports-india.html) ### 4. Fibre to fashion policy *Policy · High in India · Indian schemes target the whole chain from fibre to garment* India's textile policy treats spinning, weaving and garmenting as one value chain, with incentives for man-made fibre garments and fabrics and integrated parks that put mills and garment factories on one site. - **₹10,683 crore** approved outlay of the PLI scheme for textiles - **7** PM MITRA integrated textile parks, ₹4,445 crore over seven years to 2027-28 - **USD 37.8 billion** India's textile and apparel exports including handicrafts, 2024-25 The PLI scheme had 74 selected applicants proposing ₹28,711 crore of investment, though of 40 that reported investment only 22 had reached threshold levels by late 2025. The government's Vision 2030 target is USD 100 billion of exports, which would need garment makers to source much more fabric, especially man-made fibre, at home. Sources: [Technical Textiles (Ministry of Textiles release)](https://www.technicaltextiles.in/?p=29072) ## For investors ### Key learnings 1. Fabric and leather are the apparel industry's largest input, about ₹34.4 of each ₹100 of output, so mill capacity and quality shape garment exporters' competitiveness. 2. Price pass-through is slow and weak, with a 12-month correlation of about 0.28, so margin squeezes appear when fibre costs jump quickly. 3. The US took 33% of India's garment exports in 2024, so US tariff changes move garment makers and their mills together. ### What to track - **Cotton and polyester fibre prices**: Rising fibre costs squeeze garment margins with a lag (Weekly · Cotton Corporation of India, ICE cotton, PTA prices) - **India's garment exports to the US**: Show the effect of tariff changes on the whole chain (Monthly · Ministry of Commerce, AEPC) - **PLI and PM MITRA investment progress**: Indicates growth in domestic fabric supply for garment makers (Quarterly · Ministry of Textiles) ## For policymakers ### Key learnings 1. India's schemes, a ₹10,683 crore PLI and seven PM MITRA parks, aim to integrate fibre, fabric and garments, which suits a chain where apparel buys a third of its output value from textiles. 2. Export dependence on one market is a shared risk: the 50% US tariff in 2025 hit garment makers and their fabric suppliers together. 3. Reaching USD 100 billion of exports by 2030 from USD 37.8 billion in 2024-25 needs much more domestic man-made fibre fabric. ### What to track - **Textile and apparel exports by market**: Shows diversification away from the US (Monthly · Ministry of Commerce) - **Fabric imports for export garments**: High imports mean the domestic fabric base is not keeping up (Monthly · Ministry of Commerce trade data) ## India India exported about USD 37.8 billion of textiles and apparel including handicrafts in 2024-25, the US took 33% of its garment exports in 2024, and its PLI scheme and seven PM MITRA parks aim to integrate mills and garment makers. ## Sources 1. [OECD Input-Output Tables 2025 edition, India 2022](https://www.oecd.org/en/data/datasets/input-output-tables.html), OECD 2. [Apparel and footwear: materials](https://www.materialinsights.org/industries/apparel/materials/), Material Insights (2026) 3. [50 pc US tariff on Indian apparel exports could be death knell for small firms: AEPC](https://www.theweek.in/wire-updates/business/2025/08/07/dcm19-biz-india-us-tariff-apparel.html), The Week (PTI) (2025) 4. [United States removes additional tariffs on imports from India](https://kpmg.com/us/en/taxnewsflash/news/2026/02/united-states-removes-tariffs-imports-india.html), KPMG (2026) 5. [Year end review 2025 of Ministry of Textiles](https://www.technicaltextiles.in/?p=29072), Technical Textiles (Ministry of Textiles release) (2025) 6. [Price correlation, Material Insights](https://www.materialinsights.org/industries/apparel/price-links/), Material Insights (World Bank, FRED, IMF data)