India Apparel Market to Reach $146.3 Billion by 2029

The Clothing Manufacturers Association of India (CMAI) and 1Lattice project the domestic apparel market will grow 9% annually to reach $146.3 billion by 2029, rising from $95.7 billion in 2025. This growth rate exceeds those of the United States, China, the United Kingdom, and the European Union.

Expansion is driven by increased consumption in rural areas and smaller towns, with rural India contributing 58% of the total market value in 2025. While menswear remains the largest segment, kidswear is expected to experience the highest annual growth at 9.4%. Other growth drivers include a shift toward casualwear and increased demand in womenswear.

Physical retail continues to dominate the industry, accounting for 83% of sales in 2025. The findings are based on a survey of more than 10,000 consumers across 16 states. CMAI President Santosh Katariya noted that growth will increasingly come from markets beyond the metros, while chief mentor Rahul Mehta observed a blurring of traditional category boundaries in consumption.