The Indian apparel market will grow over four-fold to attain a staggering size of $200 billion by 2025 with the country becoming the fastest growing market along with China, according to a report by management consultancy firm Wazir.
The report says the combined size of Chinese and Indian apparel markets will become bigger than that of the US and the European Union, as the per capita spend on apparel in these two developed markets will rise at a much slower rate.
In 2012, the size of the Indian apparel market was $45 billion. India and China will be the fastest growing markets, growing in double digits and would become the biggest consumer market with a mammoth share of 27 per cent, it said.
“India would have a big consumption growth due to population growth. It would be irrespective of export market,” Wazir Advisor’s Joint Managing Director Prashant Agrawal said.
According to the report, the global apparel market would grow to $2.1 trillion by 2025 from its present size of $1.1 trillion. With the changes in global macro-economic conditions and demographics, it would be important for Indian manufacturers to be present at the right location at the right time.
On the one hand, high domestic consumption is going to throw up significant business opportunities, while, on the other, a slowdown in Chinese exports will provide an opportunity to exporters to fill the void, provided they are able to scale up and match the expectations of buyers.
With this potential, India will emerge as a favoured destination for investment in textile and apparel sectors, both by local and international companies, the report added.
India would have to invest in the sector which would be for the future market. Apart from that, it would have to expand the domestic brand with retail chain, said Mr. Agrawal.