The children's wear industry in India is set to be worth INR800bn (US$15.4bn) by 2015 if growth continues at the current rate, according to the country's Associated Chambers of Commerce and Industry of India (Assocham).

The sector is growing at a compound annual growth rate of 20% from current levels of INR380bn, making it one of the fastest growing markets, Assocham said. The industry body added that demand for children's fashion has percolated down to Tier II and Tier III cities like Dehradun, Chandigarh, Pune, Nashik and Indore.

Its research found an increasing preference for branded apparel, and a shift away from functional products, reflected in the rise in disposable incomes and the increasing influence of foreign culture.

It also found that children are becoming increasingly independent buyers. "Influenced by mass media and peer pressure, today's kids are more informed and self-conscious," said Assocham.

The branded children's wear segment is currently worth INR50bn, and is growing at 25% a year, it added.