The designer wear business in India is set to grow at a compound annual growth rate (CAGR) of 40%, hitting INR110bn (US2.26bn) by 2020, according to a leading industry body.

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) made the claim in a new report, Trends in Indian Designer Wear Industry. The current value of the industry is reckoned to be about INR7.2bn, the report said.

“The designer wear industry in India is driven by higher disposable incomes, leading to rising purchasing power, emergence of mall culture, changing sense of style, dressing and growing fashion consciousness among urbanites,” said D S Rawat, secretary general of ASSOCHAM.

“A huge growth potential is foreseen in the market as more and more people are buying branded products and apparels, and exhibit a strong desire for individuality in their self-expression as dressing has become one of the important aspects of one’s identity and overall personality.”

The report says that the global designer wear industry is poised to grow at a CAGR of about 12% over the same timescale, reaching INR6.1trn by 2020.

India’s share of the industry is currently reckoned to be only 0.32%, but the report predicts that this will rise to 1.7% by 2020.