Synopsis

India's apparel market is set for major growth. It is expected to reach Rs 16 lakh crore by 2029-30. Rising incomes and online shopping are key drivers. Value fashion brands are expanding rapidly. E-commerce will also see significant growth. Recent GST changes will boost affordability for many shoppers.

India's apparel retail market is set for a significant expansion over the next five years, with industry size projected to touch nearly Rs 16 lakh crore by 2029-30, driven by rising disposable incomes, rapid digitalisation and strong growth in value fashion and e-commerce, according to a CareEdge Ratings report.

The apparel market, estimated at Rs 9.30 lakh crore in 2024-25, has grown at a compound annual growth rate (CAGR) of around 7 per cent since 2017-18.

Organised retail currently accounts for approximately 41 per cent of the total market and is expected to grow at a faster pace of 10-13%, supported by increasing consumer preference for branded apparel, the entry of international brands and the expansion of structured retail formats.

A key driver of growth is the value fashion segment, which is benefiting from rising brand awareness and consumer price sensitivity.

Value fashion, estimated at Rs 3.5 lakh crore in 2023-24, is expected to grow at a CAGR of 7 per cent to reach Rs 5.0 lakh crore by 2029-30.

Retailers such as Zudio, Max Fashion and Reliance's Yousta are aggressively expanding their store networks, particularly in Tier-2 and Tier-3 cities, which are emerging as major consumption hubs, it said.