INDIAN FASHION RETAIL MARKET

The size of the Indian apparel market in FY 2022 was US$ 65 billion. The domestic apparel market is expected to grow at a CAGR of 12.3% and this growth will be driven by an increase in both the per capita consumption and the average spend on apparel. Meanwhile, growing movement towards sustainability in fashion has pushed the fashion industry to innovate through the value chain...

- Amit Gugnani , Tanishka Tandon

The size of the Indian apparel market is US$ 65.3 billion in the year 2022 and is expected to grow at a CAGR of 12.3%, reaching US$ 168 billion by FY 2031. The market opened up after a low FY21 to increased optimism and a pent up demand to reach pre-covid levels. Increasing share of e-commerce also helped in the growth of the market.

Indian Economy-Sneak Peak

One of the fastest growing economies in the world, India is the world's 6th largest economy in real terms and 3rd largest in PPP terms. India is expected to be in the top 3 global economies by the year 2032. India's real Gross Domestic Product (GDP) has sustained an average growth between 6% and 7% since FY 1991. Since FY 2015, India has become the fastest-growing economy in the G20 and is expected to grow at approx. 6% in FY 2023. The real growth rate declined to 4% in FY 2020 and witnessed a degrowth of 7.3% in FY 2021 due to the outbreak of the COVID-19 pandemic, which led to the imposition of lockdowns towards the last quarter of FY 2020 and a major part of the first quarter of FY 2021 leading to tension in the economy.

India's nominal GDP is expected to cross US $5 trillion by 2027. Several structural factors are likely to contribute to India's economic growth. These include favorable demographics, reduced dependency ratio, rapidly rising education levels, steady urbanization, growing young and working population, IT revolution, increasing penetration of mobile and Internet infrastructure, increasing aspirations and affordability,etc.