Archive · 7 Sep 2026
Indian Apparel Industry Expects Strong Festival Sales Despite Cost Pressures
India’s clothing industry expects people to buy more clothes during the upcoming festival season.
A survey found that most clothing companies expect sales to rise or remain steady.
Traditional Indian clothes such as kurtas, salwar suits and churidars are expected to be especially popular.
Casual western clothes such as T-shirts and jeans may also sell well.
Retailers placed strong orders at recent garment fairs.
Better economic conditions, a reasonable monsoon and positive consumer feelings are supporting the outlook.
However, the materials used to make clothes have become more expensive.
Many companies are accepting smaller profits instead of raising prices.
Online clothing shopping is also expected to become more important.
Nearly 52% of Clothing Manufacturers Association of India members expect higher festive-season sales than last year.
Another 30% expect sales to match last year, while fewer than 20% anticipate declines.
Indian ethnic wear, including salwar suits, churidars and kurtas, is expected to lead growth.
About 54% of respondents are absorbing higher raw-material costs through lower margins, while 35% have raised prices.
Online sales, currently around 12% of apparel sales, are also expected to grow during the festive season.
- Who
- The Indian apparel industry and members of the Clothing Manufacturers Association of India.
- What
- The industry expects strong festive-season sales, led by Indian ethnic wear, but faces pressure from rising input costs.
- When
- The outlook concerns the upcoming festival season; the survey findings were released on September 7, 2026.
- Where
- India.
- Why
- Improving macroeconomic conditions, a reasonable monsoon, positive consumer sentiment and strong retailer orders are supporting demand, while higher raw-material costs threaten profitability.
Sales Growth Optimism
Profitability Concerns
Festive demand
Sales Growth Optimism
The industry expects stronger demand, supported by retailer orders, improving macroeconomic conditions, a reasonable monsoon and positive consumer sentiment.
Profitability Concerns
Higher sales may not translate into proportionally higher profits because rising raw-material costs are continuing to pressure margins.
Pricing strategy
Sales Growth Optimism
Strong demand could support sales across Indian ethnic wear, western casual wear and online channels.
Profitability Concerns
Around 54% of respondents are cutting margins to absorb higher costs, while only about 35% have raised prices.
- Higher sales expected
- Nearly 52% of surveyed members expect sales above last year’s level.
- Sales matching last year
- About 30% expect to match last year’s performance.
- Expected declines
- Fewer than 20% anticipate lower sales.
- Leading category
- Indian wear, including salwar suits, churidars and kurtas, was identified by 45% of respondents as the strongest-performing category.
- Cost absorption
- Around 54% of respondents are absorbing higher raw-material costs by reducing margins.
- Price increases
- About 35% of respondents have increased prices.
- Online share
- Online channels currently account for around 12% of apparel sales.