to expand at a faster pace of 10–13% over the coming years. This growth is being supported by increasing consumer preference for branded clothing, structured retail formats, and the rising presence of international fashion brands in the country.
Domestic retailers such as Zudio, Max Fashion, and Reliance’s Yousta are actively scaling up their store networks, with a strong focus on Tier-2 and Tier-3 cities. These emerging urban centres are expected to become key consumption hubs as purchasing power and fashion awareness continue to rise.
E-commerce and Omnichannel Gain Momentum
Online channels are playing an increasingly important role in the apparel retail landscape. E-commerce currently contributes about 22% of organised apparel sales and is projected to increase its share to nearly 25% by FY30. This would translate into a market size of approximately ₹5 lakh crore (US$ 60.2 billion).
Higher internet penetration, widespread smartphone usage, and greater digital engagement—particularly among younger consumers—are accelerating the shift toward digital-first and omnichannel retail strategies across the sector.
Improving Demand Outlook and Policy Support
Although the apparel industry faced demand headwinds during FY25 due to inflationary pressures, sales momentum improved during the festive and wedding seasons, aided by higher footfalls and a recovery in consumer sentiment. CareEdge Ratings also highlighted that recent changes to the Goods and Services Tax (GST), including a lower tax rate on apparel priced below ₹2,500, are expected to enhance affordability and further support growth in the value fashion segment.
Summary:
India’s apparel retail market is expected to grow to nearly ₹16 lakh crore (US$ 193 billion) by FY30, driven by rising incomes, faster growth in organised retail, expanding e-commerce penetration, and strong demand from Tier-2 and Tier-3 cities. Policy support and improving consumer sentiment are likely to further strengthen the sector’s long-term growth outlook.
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