Indian Cotton Yarn Exporters Target Greater Share in China Market at Shanghai Expo

Indian cotton yarn exporters are scaling up their market outreach in China, aiming to secure a larger market share in the world's largest textiles hub. Around 40 exhibitors are participating in the TEXPROCIL India Pavilion at the ongoing Yarn and Apparel Expo in Shanghai.

The pavilion was inaugurated on Tuesday, August 25, 2026, by Pratik Mathur, Consul General of India, alongside Snehaja, Consul (Commercial), and members of the Texprocil Committee of Administration (COA). The trade platform covers the upstream and downstream textile value chain, ranging from raw fibers and yarns to finished apparel fabrics.

Exporters at the event are showcasing products including premium 100 per cent cotton yarns, combed and compact yarns, organic-certified cotton, and speciality blends. Sharad Khemka, MD of SP Group and a Texprocil COA member, noted that a major emphasis is being placed on sustainable, traceable, and value-added cotton solutions, such as national initiatives like Kasturi Cotton Bharat.

India's cotton yarn exports to China experienced a sharp contraction in the post-Covid period due to weak demand and pricing issues. However, trade has recovered over the past couple of years. According to official data, India's exports of cotton yarn to China more than doubled during FY2025-26, rising by 112 per cent to over $460 million compared to $217 million in the previous year. China accounted for over 13.51 per cent of India's total cotton yarn exports during 2025-26.

Despite this recent recovery, overall cotton yarn exports from India during 2025-26 dipped by about 2 per cent to $2,857 million, impacted by weak demand from other traditional markets including Bangladesh, Vietnam, Italy, and Portugal. While China's current share remains below historical decade-ago levels when it commanded 30 per cent to 40 per cent of Indian yarn exports, industry stakeholders expect further growth in market share through 2026-27.

A recent update by the United States Department of Agriculture (USDA) stated that India's cotton consumption this year is largely driven by cotton yarn demand from China and cotton product demand from developed countries. The USDA reported that India's cotton yarn exports to China tripled in the first 10 months of the marketing year, with India's growth significantly outpacing other major suppliers, aided by a depreciating rupee and competitive yarn prices.

"The recent rebound in cotton yarn exports to China highlights the importance of market resilience and adaptability for Indian manufacturers. As global supply chains shift, focusing on traceable, sustainable, and value-added products like organic cotton and national initiatives will be vital for long-term export growth. Exporters must leverage competitive pricing and favorable currency dynamics to sustainably rebuild their historical market share." — Dr. Shishir Gupta, Founder & CEO, StartupLanes