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India Apparel Market Set to Reach $146.3 Billion by 2029
A new report says people in India are buying more clothes, and the market is expected to grow substantially by 2029.
Much of the growth is expected to come from rural areas and smaller cities, not just big metros.
Most clothes are still bought in physical shops rather than online.
Casual clothes are now the biggest category, though traditional clothing remains important.
Men’s clothing is currently the largest segment, but clothes for children and women are expected to grow faster.
The report says changing styles, comfort, and demand for more choices are helping drive these trends.
Researchers surveyed 10,929 consumers across 16 states.
The study’s fieldwork took place between November 2025 and February 2026.
India’s domestic apparel market is projected to grow from $95.7 billion in 2025 to $146.3 billion by 2029, at 9% annually.
Rural India accounted for 58% of apparel spending in 2025, while tier-II, tier-III and smaller markets also contributed.
Offline retail made up 83% of 2025 sales; online channels accounted for the remaining 17%.
Casualwear was the largest apparel occasion in 2025, while ethnicwear remained significant, particularly in womenswear.
Kidswear is projected to grow fastest through 2029, at 9.4% annually, followed by womenswear at 8.9% and menswear at 8.5%.
- Who
- The Clothing Manufacturers Association of India (CMAI) and 1Lattice produced the report.
- What
- A report projects India’s domestic apparel market will reach $146.3 billion by 2029.
- Where
- India.
- When
- The projections cover 2025–2029; survey fieldwork ran from November 2025 to February 2026.
- Why
- Expected growth is linked to consumption in rural areas and smaller cities, casualization, and faster growth in womenswear and kidswear.
Traditional and occasionwear
Casual and evolving fashion
Changing clothing preferences
Traditional and occasionwear
Ethnicwear remains important: it accounts for about 60% of womenswear, and weddings and celebrations support demand for traditional and Indo-Western menswear.
Casual and evolving fashion
Casualwear is the largest apparel occasion, reflecting growing preferences for comfort, versatility and clothing suited to multiple occasions.
Retail channels
Traditional and occasionwear
Physical retail remains dominant, accounting for 83% of apparel sales in 2025.
Casual and evolving fashion
Online sales accounted for 17% of the market in 2025, making e-commerce a smaller but established channel.
Key facts
- Market size, 2025
- $95.7 billion
- Projected market size, 2029
- $146.3 billion
- Projected annual growth, 2025–2029
- 9%
- Rural share of 2025 market
- $55.9 billion, or 58%
- Sales by channel in 2025
- Offline: $79.4 billion (83%); online: $16.3 billion (17%)
- Projected annual growth by segment
- Kidswear: 9.4%; womenswear: 8.9%; menswear: 8.5%
- Survey coverage
- 10,929 consumers across 16 states
Quotes
Santosh Katariya
President of the Clothing Manufacturers Association of India
“One of the most significant shifts in India’s apparel consumption is the blurring of traditional category boundaries.”
livemint.com
“The next phase of growth for India’s apparel industry will increasingly come from markets beyond the metros.”
livemint.com
Sources
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