According to the India Business of Fashion Report, India’s apparel market is anticipated to grow at nearly 11 per cent to reach US $85 billion by 2021. The estimates are a part of a report titled “Apparel and fashion industry and the importance of innovation and sustainability” made by Rajat Wahi, Partner, Deloitte India.
As per the report, the Indian apparel market, pegged at around USD 65 billion, is the second largest retail market after food and grocery in India. “The market grew at a CAGR of 11.5 per cent in the period from 2012-17 and it is expected to grow at nearly 11 per cent CAGR in 2017-21 period to reach a value of USD 85 billion by 2021”, said the report.
The report further elaborates on how the country’s fashion market is majorily driven by key growth drivers such as young demographics, rising urbanisation, increasing affluence and a growing middle income segment, greater brand awareness, better accessibility and availability and increased formalisation of the sector.