India’s apparel and textile industry, valued at $180 billion and growing at 9–10% annually, is shifting focus from expansion to execution, sustainability, and exports. Despite employing over 45 million workers and producing 22 billion garments yearly, exports remain stagnant at $37 billion, underscoring the need for reforms and global competitiveness.
India’s apparel sector, one of the country’s largest employment generators, is at a defining inflection point. Analysts note that the next phase of growth will depend on execution choices rather than headline capacity additions.
The Union Budget 2026–27 has reinforced this direction, emphasizing exports, skilling, sustainability, and technology adoption. While India is the second-largest cotton producer and has the second-largest spinning capacity globally, exports have stagnated at around $37 billion for nearly a decade. Competing hubs like Bangladesh and Vietnam have steadily gained market share, highlighting the urgency for India to reposition itself.
Industry experts believe that fast-fashion, premium apparel, and e-commerce will drive demand, especially in Tier-2 and Tier-3 cities, supported by rising disposable incomes and Gen-Z’s influence.
Major Takeaways
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India’s apparel market valued at $180 billion, growing at 9–10% annually
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Employs over 45 million people, producing 22 billion garments yearly
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Exports stagnant at $37 billion despite global opportunities
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Union Budget 2026–27 focuses on exports, sustainability, and skilling
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Bangladesh and Vietnam gaining global apparel market share
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Fast-fashion, premium, and e-commerce segments expected to fuel growth
Conclusion
India’s apparel sector is poised for transformative success, but execution will be key. By prioritizing sustainability, technology, and exports, the industry can reclaim its competitive edge and weave richer success stories in the global fashion landscape.
Sources: Hindustan Times, ETRetail, Indian Retailer