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The future outlook for the Indian apparel business remains optimistic By Vasundhara Sanger Posted on 31 January 2023 India is a land of incredible diversity, and its multiculturalism is reflected in the country’s rich heritage of textiles and apparel, celebrated worldwide. The alchemy of Indian clothing is enchanting and pure artistry, and even if Indian apparel has evolved with time, its inherent culture is intact. The extraordinary variety of the country’s attires and dressing styles is the epitome of elegance that has stood the test of time and trend. Indian apparel in the annals of history The history of Indian textiles and apparel is one of the oldest in the world. The saga dates back to ancient times, even as early as 2500 BCE when people mainly adorned locally grown cotton clothing in the Harappan era. The first Indian cotton cloth mill, established in 1818 at Fort Gloaster near Kolkata, unfortunately, ended as a failed venture. Decades later, the Bombay Spinning and Weaving Company came up around 1854 and is known to be the proper foundation of the modern cotton industry in India. During the early British rule, the Indian handicraft and textile industries supplied about a quarter of all manufactured goods worldwide. However, with the advent of the Industrial Revolution, India’s indigenous textile industry suffered a setback as machine-made fabrics from England began dominating the domestic market. After India’s independence in 1947, the government implemented policies to promote the domestic textile industry. In the 1980s and 1990s, India's apparel industry expanded because of economic liberalisation and export market growth. Today, India is one of the world's largest producers and exporters of textiles and apparel, with a strong presence in domestic and international markets. Present scenario of the apparel industry in India and the world In the 21st century, while the rapid growth of information technology popularised the corporate look, the revival of the ethnocultural style became quite dominant. Hollywood stars, industry captains, tennis aces and politicians have worn Indian clothing to shows and events and helped popularise it further. Over time, the Indian fashion industry has spread its wings to the extent that it is as good as the international fashion industry and has become one of India's most popular revenue-generating industries. Despite the challenges that the Indian apparel industry faces due to growing competition from other countries, it is expected to continue to grow, powered by the increasing demand for Indian-made garments and an emergent e-commerce market. The domestic textile and apparel industry stood at $152 bn in 2021, growing at a CAGR of 12% to reach $225 bn by 2025. Furthermore, the government of India has approved the setting up of seven Pradhan Mantri Mega Integrated Textile Region and Apparel Parks in Greenfield/Brownfield sites with an outlay of ₹4,445 crore for seven years up to 2027–28. Additionally, the government’s Production-linked Incentive scheme for textile products is to help companies emerge as global champions in the textile industry. Thus, these measures will help India turn into a global market leader. Notably, the Indian apparel market recorded US$ 40 billion in 2020 and is projected to scale up to US$ 135 billion by 2025; this is significant as it places India’s apparel industry on the global market. Besides, the share of textiles, apparel and handicrafts in India's total exports was 11.4% in 2020–21, and the country holds a 4% share of the global trade in textiles and apparel. In connection with exports, India registered the highest textile exports in FY22, earning US$ 44.4 billion (Invest India). Nonetheless, at the end of 2022, the industry encountered a crisis as consumers in the United States, Europe, and other large markets curtailed expenses on clothing following a rise in inflation after the war in Ukraine. Notwithstanding, as per the FICCI-Wazir report, the Indian textile and apparel market is likely to reach US$ 250 billion by 2025–26, and the global textile and apparel trade is expected to touch US$ 1,000 billion by 2025–26. The report also underlined key international trends impacting the textile and apparel industry, which included a focus on sustainability and circular fashion, the 'China+1' strategy of global brands providing an opportunity for countries like India to augment their export share. The revenue of the global apparel market amounted to about 1.5 trillion U.S. dollars in 2021 and was predicted to escalate to around $ 2 trillion by 2026. The United States and China account for most of this demand, generating more income than other countries (Statista). How India can influence the global apparel industry Since India is one of the world's largest producers of textiles and apparel, and with its large and growing workforce, the country can become a major clothing supplier to the global market. Considering sustainability, consumers—particularly millennials and Gen Z -- are increasingly concerned about the environmental impact of the products they purchase. This creates opportunities for Indian apparel companies that can fulfil their commitment to sustainability through environmentally friendly production methods and materials. Finally, in addition to low labour costs that will make Indian apparel more attractive to price-sensitive consumers around the world, the Indian textile and apparel sector's embracing digitalisation (automation, data analytics etc) will provide greater access to global markets.

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