Indian apparel industry is expecting positive growth in the coming years mainly due to the removal of excise duty on branded garments and madeups along with expected revival of overall economy.
A report released by Care Research, a leading research and analysis provider in India, states that domestic garment industry is expected to grow at around eight percent year-on-year from US$ 37.35 billion in fiscal year 2012-13 to US$ 50.62 billion in fiscal year 2015-16.
The growth in Indian clothing sector would be primarily driven by the upsurge in the Indian economy coupled with the rising per capita disposable income, says the report.
According to the research report, factors like the changing fashion trends, growing consumer class, rising urbanization, increasing retail penetration and the increasing share of the designer wear together have led to the growth in the apparel industry of India. Agreeing with the research report, the president of CMAI, Mr. Rahul Mehta told fibre2fashion, “Though, we believe that the growth in the domestic clothing sector is going to be difficult and not automatic, we feel that there is a possibility of growth up to US$ 100-120 billion by 2020.”
“The growth in Indian garment industry could be mainly because the markets are improving, the excise duty on branded garments and madeups has been removed so the prices of apparels are likely to come down and overall economic sentiments have also gone up,” he adds. The report of Care Research also attributes the growth in domestic apparel sector to resumption of zero excise duty on readymade garments and madeups, expected revival in the overall economy and faster clearance of investment proposal of foreign retail brands.
Indian apparel industry grew at an average of 10 percent from US$ 23.23 billion in fiscal year 2007 to US$ 37.35 billion in fiscal year 2012.
