India’s denim industry is growing at a compound annual growth rate of 15 to 18 per cent. Currently, feasible production capacity in India is a billion meters per annum considering a 85 to 90 per cent utilisation. Looking at the domestic demand, India will need to double its denim capacity in the next four to five years. India is one of the largest producers of denim. The Indian denim industry should ensure it bags orders not just for the domestic market but also that it becomes a global hub for branded denim apparel.

The industry is looking to increase its share of exports from the current 35 per cent to 45 per cent. Historically, denim has been one of the fastest growing apparel fabric segments, having grown by 500 million meters from 700 million meters in 2010 to 1.2 billion meters in 2015. Yet, there is a gap of another 300 million meters in India if the denim industry needs to tap its full export potential.

Gujarat is set to strengthen its position further as the denim hub of India with around 150 million meters per annum new manufacturing capacity added by 2020. This will be in addition to the existing capacity of 500 million meters per annum.