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The Asia-Pacific region has long been at the forefront of the global textile and apparel (T&A) market, playing a pivotal role in shaping trade dynamics worldwide. Following the abolishment of the Agreement on Textiles and Clothing (ATC) in 2005, the region experienced rapid expansion, surpassing global growth rates. However, recent challenges, including the COVID-19 pandemic and regional conflicts, have brought about significant disruptions, reshaping the competitive landscape and posing new challenges for key players in the industry.

Historically, the Asia-Pacific region has exhibited robust growth in T&A trade, boasting a compound annual growth rate (CAGR) of 4.5 per cent over the last two decades, outpacing the global average of 3.52 per cent. In the first decade post-ATC, the region's growth rate soared to 7.30 per cent, with its contribution to global T&A trade steadily increasing. However, the onset of the COVID-19 pandemic and regional conflicts has led to a downturn in recent years, disrupting supply chains and dampening consumer demand.

The COVID-19 pandemic and the Russia-Ukraine conflict have triggered widespread inflation and cost-of-living crises, prompting consumers to cut back on discretionary spending, including textile purchases. This has resulted in decreased exports from Asian nations, exacerbating the challenges faced by the region's T&A industry. Internal issues, such as concerns regarding wages and working conditions in countries like Bangladesh and China, have further compounded these challenges, contributing to significant fluctuations in trade volumes.

To better understand the dynamics of trade in textiles, apparel, and home textiles in the Asia-Pacific region, we analyze the growth, competitiveness, and market shares of the top 13 countries over an 8-year period. China emerges as the dominant player in textiles, commanding a share of 36.35 per cent of the global market, followed by India, Vietnam, the Republic of Korea, Japan, Australia, and Pakistan. While China maintains its position as the market leader with consistent growth, India exhibits stability in its market presence, fluctuating between 9 per cent to 11 per cent of global export share.

The Asia-Pacific region continues to be a powerhouse in the global T&A market, despite facing significant challenges in recent years. While the COVID-19 pandemic and regional conflicts have disrupted trade patterns and dampened demand, the region's key players are adapting to these changes and seeking new opportunities for growth. By addressing internal challenges and fostering innovation, the Asia-Pacific T&A industry can navigate the current landscape and emerge stronger in the post-pandemic era.