Market Research Report

India Apparel & Footwear Market Key Takeaways

• The India apparel & footwear market size was valued at USD 64 billion in 2025 and is projected to grow from USD 69 billion in 2026 to USD 112 billion by 2032.
• The market is projected to register a CAGR of 8.4% during 2026–2032.
• By category, apparel leads the market with around 72% market share in 2026.
• By distribution channel, store-based retailing is dominant with around 84% market share in 2026.
• The industry is fragmented, with the top five players collectively accounting for approximately 5% of the market share in 2026.

India Apparel & Footwear Market Size and Outlook

The India apparel & footwear industry was valued at USD 64 billion in 2025 and is currently standing at USD 69 billion in 2026. The industry is projected to grow to USD 112 billion by 2032, showcasing a CAGR of around 8.4% during the forecast period, i.e., 2026–32.

The industry is witnessing sustained expansion, supported by strong domestic consumption, rising export competitiveness, and favourable government initiatives that continue to strengthen the country's manufacturing and retail ecosystem. As of 2025, India's textile and apparel sector contributes approximately 2.3% to the national GDP, 13% to industrial production, and 12% of the country's total exports.

During FY 2023–24, India exported USD 34.4 billion worth of textile products, while the sector remained the second-largest employer after agriculture, providing direct employment to more than 45 million people. Furthermore, the continued expansion of organized retail, increasing penetration of branded apparel and footwear across Tier II, Tier III, and Tier IV cities, and the growing adoption of omnichannel retail strategies are expected to support long-term demand across the apparel and footwear market.

Policy reforms introduced during 2025 and 2026 are further improving the operating environment for manufacturers and retailers. Under the GST 2.0 reforms implemented from September 2025, apparel and footwear continue to attract a concessional tax, while manmade fibre and yarn also moved to the same rate, reducing input tax disparities across the textile value chain. These measures are expected to improve affordability, support production efficiencies, and encourage higher formal sector participation across the industry.

India's export outlook has strengthened considerably following a series of trade agreements signed during 2026. The India European Union free trade agreement provides zero duty access for textiles, apparel, leather, and footwear, while the India United Kingdom Comprehensive Economic and Trade Agreement eliminates duties on nearly all eligible exports, including leather and footwear. The interim trade agreement with the United States has also reduced reciprocal tariffs, improving export competitiveness and creating fresh opportunities for domestic manufacturers.

Collectively, these policy reforms, expanding manufacturing capabilities, and improving market access are strengthening India's position as a leading apparel and footwear production and consumption hub. Supported by rising domestic demand, a favourable trade environment, and continued investments across the textile and leather value chains, the market is expected to witness sustained long term growth while enhancing its competitiveness in both domestic and international markets.

India Apparel & Footwear Market Key Indicators

• As of 2025-26 season, the government increased the minimum support price for long staple cotton to USD 85 per quintal, representing a 7% year on year increase. The revision aims to support cotton cultivation while ensuring stable raw material availability for textile manufacturers.
• Bata India crossed 700 franchise stores by March 2026 and announced plans to expand its network to approximately 3,000 outlets over the next three to five years, reflecting the continued expansion of organized apparel and footwear retail across smaller Indian cities.
• Infrastructure works have commenced across all seven PM MITRA mega textile parks, supported by government investment of approximately USD 523 million through 2027-28. The integrated parks are expected to strengthen large scale textile manufacturing, improve logistics efficiency, and attract additional private investment across the textile value chain.
• India's textile exports, including handicrafts, increased from approximately USD 36.45 billion in FY2024-25 to USD 37.22 billion in FY2025-26, registering 2.1% growth. Ready-made garment exports also increased by 2.9%, reflecting sustained global demand for Indian apparel products.

India Apparel & Footwear Market Scope

India Apparel & Footwear Market Growth Drivers

Rising Disposable Incomes and Premiumization Driving Value Led Consumption

Rising disposable incomes, evolving fashion preferences, and increasing consumer inclination toward premium products are driving the growth of the India apparel & footwear market. Consumers are increasingly spending on branded apparel, athleisure, premium footwear, and fashion-oriented collections, while improving affordability and greater organized retail penetration across Tier II, Tier III, and Tier IV cities are expanding the addressable customer base. This shift is encouraging manufacturers and retailers to broaden their product portfolios across premium and value segments, supported by continuous product innovation and brand differentiation.

The growing preference for branded products is reflected in recent industry performance. In February 2026, Bata India reported a 13% year-on-year increase in quarterly profit, driven by strong festive demand, while Metro Brands and Campus Activewear also recorded healthy earnings growth during the same period. On the supply side, government initiatives are further strengthening domestic manufacturing capabilities. By April 2026, 74 companies had been approved under the Production Linked Incentive (PLI) Scheme for Textiles, while the Indian Footwear and Leather Development Programme (IFLDP) allocated approximately USD 178 million for infrastructure development and technology upgradation through March 2026. These developments are enhancing manufacturing competitiveness and supporting sustained growth across India's apparel and footwear industry.