India’s apparel market is expected to grow by 11 to 12 per cent in the next seven years. The market grew at a compounded annual growth rate (CAGR) of 10 per cent from 2005 to 2017.

India’s domestic market has performed better than the largest consumption regions like the US, EU and Japan, where depressed economic conditions have led to lower demand and growth.

India’s apparel industry is dominated by the ready-to-wear category, which has a 84 per cent share and which is further growing at a CAGR of ten per cent to 11 per cent. The ready-to-stitch market is also gaining momentum as more and more men who have been buying premium or luxury readymade clothing brands want to wear a shirt or a trouser that fits them perfectly. The ready-to-stitch market is expected to grow at a CAGR of seven per cent till 2025.

However, apparel exports have taken a beating from October 2017 onwards. The introduction of the goods and services tax (GST) resulted in non-refund of several embedded taxes. Consequently, apparel exports for the financial year ’18 declined by four per cent from the previous year. The downturn continues this fiscal year with a month-on-month decline of ten per cent.