India’s textile and apparel industry (domestic and exports) is expected to more than triple in value over the next decade, rising from the current INR3,270bn (US$70bn) to INR10,32bn (US$220bn) by 2020.
The forecast, which is part of new research released by management consultancy Technopak Advisors, also calculates that the domestic apparel retail market was worth INR1,540bn (US$33bn) in 2009 and is likely to reach INR4,700bn (US$100bn) by 2020.
Domestic growth will be driven by a rising population, increasing income levels, rapid urbanisation, improving demographics, increased organised players and higher penetration of retailers into smaller cities.
The research also points out that while men’s wear has the majority share of the apparel market (at 43%), women’s wear is growing at a faster rate. This means women’s wear is set to see its portion of the market rise from its current 37% stake to 43% in 2020.
The data, which was presented at Technopak’s Leadership Forum, notes that global textile and apparel trade is recovering after a slump during the economic recession. It is expected to reach US$1 trillion by 2020 from the current US$510bn. The growth in trade is driven by increased outsourcing by western/developed countries towards lower cost countries in Asia.
This sourcing shift could help India increase its export share in world trade from the current 4.5% to 8% (worth US$80bn) by 2020.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataBut is also means investments to the tune of INR3,200bn (US$68bn) will be needed across the textile supply chain by 2020 to tap into the bigger market. Investment required in the garment sector by 2020 is around US$14bn, Technopak calculates.
