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Indian Fashion Industry Statistics

India's fashion industry rapidly grows into a global textile powerhouse.

Key Statistics

The online fashion retail market in India is projected to reach $43 billion by 2025.

Fashion is the first category for 30% of new online shoppers in India.

Approximately 25% of all e-commerce gross merchandise value (GMV) in India comes from fashion.

Myntra holds roughly 60-70% market share in the premium online fashion segment.

The Direct-to-Consumer (D2C) fashion market in India is expected to become a $40 billion-plus opportunity by 2025.

E-commerce penetration in Indian apparel retail stands at about 12-15%.

+94 more statistics in this report

Jannik Lindner
December 20, 2025

Key Insights

Essential data points from our research

The Indian textile and apparel industry is expected to reach $190 billion by 2025-26.

India contributes approximately 2.3% to the country's GDP through the textile sector.

The domestic apparel market is projected to reach $105.50 billion in 2024.

India is the largest producer of cotton in the world.

India is the second-largest producer of silk globally.

India has the highest area under cotton cultivation in the world, representing about ~39% of the world area.

The online fashion retail market in India is projected to reach $43 billion by 2025.

Fashion is the first category for 30% of new online shoppers in India.

Approximately 25% of all e-commerce gross merchandise value (GMV) in India comes from fashion.

The Indian ethnic wear market is estimated to be worth over $20 billion.

Women's ethnic wear constitutes 71% of the total ethnic wear market.

The Indian wedding market, a driver of fashion, is valued at $50 billion annually.

The textile sector creates direct employment for 45 million people.

100 million people are employed in allied textile industries in India.

India generates more than 7,800 kilotonnes of textile waste annually.

Verified Data Points
From sarees to sportswear, India’s fashion industry is sprinting toward a projected $190 billion by 2025-26, fueled by a $105.5 billion domestic apparel market, $44.4 billion in exports, world-leading raw material production and manufacturing capacity, booming online and D2C channels expected to reach roughly $43 billion and $40 billion by 2025, and strong policy support like 100% automatic FDI and a ₹10,683 crore PLI scheme that together are transforming it into a global textile powerhouse creating millions of jobs and driving growth in sustainability and technical textiles.

E-commerce & Digital Retail

  • The online fashion retail market in India is projected to reach $43 billion by 2025.
  • Fashion is the first category for 30% of new online shoppers in India.
  • Approximately 25% of all e-commerce gross merchandise value (GMV) in India comes from fashion.
  • Myntra holds roughly 60-70% market share in the premium online fashion segment.
  • The Direct-to-Consumer (D2C) fashion market in India is expected to become a $40 billion-plus opportunity by 2025.
  • E-commerce penetration in Indian apparel retail stands at about 12-15%.
  • Tier 2 and Tier 3 cities contribute over 50% of total fashion e-commerce sales.
  • Social commerce in fashion is expected to grow at a CAGR of 55-60% from FY20-25.
  • 1 in 3 deliveries for Amazon India is a fashion product.
  • Online returns in the Indian fashion category average between 25% to 30%.
  • The average transaction value (ATV) for online fashion in India is approximately ₹1000-₹1200.
  • Mobile apps account for over 80% of fashion transactions in India.
  • Flipkart Fashion aims to onboard 20,000 new sellers specifically for apparel.
  • Search volume for ‘Sustainable Fashion’ has grown by 120% YoY on Indian search engines.
  • Nykaa Fashion saw a GMV growth of 168% YoY in recent quarters.
  • Reliance’s Ajio reports receiving orders from 20,000 pin codes across India.
  • Live commerce in fashion is still in nascent stages, contributing less than 1% to sales.
  • Menswear is the fastest-growing online category in tier-2 cities.
  • The online footwear market in India is expanding at a CAGR of 16%.
  • Nearly 60% of online fashion shoppers in India are under the age of 30.

Interpretation

India’s online fashion market is sprinting toward a multibillion dollar future, driven by mobile first shoppers under thirty and the buying power of tier two and tier three cities, dominated at the premium end by Myntra and exploding in D2C and social commerce, yet still hampered by only about twelve to fifteen percent ecommerce penetration and high return rates, so the smart brands that solve logistics, cut returns and sell sustainability will take the biggest slice of this boom.

Employment, Sustainability & Labor

  • The textile sector creates direct employment for 45 million people.
  • 100 million people are employed in allied textile industries in India.
  • India generates more than 7,800 kilotonnes of textile waste annually.
  • 51% of global organic cotton production comes from India.
  • The handloom sector employs 3.5 million people, 72% of whom are women.
  • Approximately 60-70% of the total workforce in the garment manufacturing sector consists of women.
  • Tirupur, a major textile hub, treats and recycles 90% of the water used in processing.
  • Project SU.RE (Sustainable Resolution) was signed by 16 of India’s top fashion brands.
  • Only about 59% of textile waste in India finds its way back into the recycling industry.
  • The textile industry accounts for 8-10% of India's total energy consumption.
  • Khadi and Village Industries Commission (KVIC) created over 1.75 lakh new jobs in FY22.
  • Post-consumer domestic textile waste in India is estimated at 5100 kilotonnes.
  • Minimum wages in the garment sector vary by state but average around ₹9,000 to ₹10,000 per month.
  • The “Samarth” scheme aims to train 10 lakh youth in the textile sector.
  • Less than 1% of clothing material is recycled into new clothing globally; India aims to improve this via new clusters.
  • India has over 1,200 GOTS (Global Organic Textile Standard) certified facilities.
  • Panipat recycles the world's cast-off woolens, handling over 100,000 tons of waste fabric.
  • The government has set up 7 PM MITRA parks to generate 20 lakh jobs.
  • Over 4.3 million people are employed specifically in the sericulture (silk) sector.
  • Use of MMCF (Man-Made Cellulosic Fibers) is growing, with India being a key sourcing hub for viscose.

Interpretation

India's textile sector is a colossal, woman-powered loom, directly employing 45 million people and over 140 million when allied industries are counted, leading the world in organic cotton and hosting 1,200-plus GOTS facilities while hubs like Tirupur and Panipat and initiatives such as Project SU.RE, Samarth and seven PM MITRA parks showcase recycling, water efficiency and job-creation efforts, yet it still produces thousands of kilotonnes of waste, recycles only about 59% domestically and under 1% back into new clothing globally, pays modest wages and consumes hefty energy—so its next stitch must be toward genuine circularity, fair pay and cleaner production.

Luxury, Ethnic & Consumer Trends

  • The Indian ethnic wear market is estimated to be worth over $20 billion.
  • Women's ethnic wear constitutes 71% of the total ethnic wear market.
  • The Indian wedding market, a driver of fashion, is valued at $50 billion annually.
  • India’s luxury market is expected to grow 3.5 times the current size by 2030.
  • Saree sales constitute nearly 33% of the total women’s apparel market retail value.
  • Aditya Birla Fashion acquired a 51% stake in the house of Sabyasachi for ₹398 crore.
  • The branded jewelry market in India is expected to touch $100 billion by 2025.
  • 89% of Indian luxury consumers reside in non-metro cities.
  • Reliance Brands Limited (RBL) operates roughly 650 points of sale for luxury brands.
  • The luxury sneaker market in India is witnessing a 25-30% year-on-year growth.
  • Manish Malhotra’s brand valuation was pegged at roughly ₹144 crore (revenue) pre-Reliance investment.
  • Delhi and Mumbai account for 45% of the total luxury market in India.
  • FabIndia, a major ethnic retailer, has over 327 stores across 118 cities.
  • The kidswear market in India is growing at a CAGR of 8.1%, partly driven by luxury/ethnic mini-me trends.
  • Manyavar (Vedant Fashions) controls a significant share of the organized men’s wedding wear market.
  • Christian Dior’s 2023 Fall show at Gateway of India was the first official calendar show by a European luxury house in India.
  • High Net Worth Individuals (HNWIs) in India is expected to rise by 80% by 2031, fueling fashion luxury.
  • Demand for 'Indo-Western' fusion wear has grown by 15% CAGR.
  • The resale/pre-loved luxury market in India is growing but accounts for less than 2% of total luxury.
  • Khadi sales by KVIC (Khadi and Village Industries Commission) crossed ₹1.15 lakh crore in FY22.

Interpretation

India's fashion industry is both proudly traditional and feverishly aspirational, with ethnic wear topping $20 billion and women's styles making up 71 percent of that pie as sarees alone represent about a third of women's retail, weddings fueling a $50 billion annual boom that props up household names from Manyavar to FabIndia's 327 stores, marquee deals like Aditya Birla's Sabyasachi stake and Reliance's bet on Manish Malhotra after a pre investment valuation near ₹144 crore underline a luxury rush that could grow 3.5 times by 2030, supported by a projected 80 percent rise in HNWIs, 89 percent of luxury buyers living outside metros, roughly 650 points of sale by Reliance Brands, a 25 to 30 percent annual surge in luxury sneakers, a branded jewelry market headed for $100 billion, a 15 percent CAGR in Indo Western fusion, an 8.1 percent CAGR in kidswear, Dior staging a landmark Gateway of India calendar show, resale still under two percent, and Khadi sales by KVIC topping ₹1.15 lakh crore.

Market Size & Economic Impact

  • The Indian textile and apparel industry is expected to reach $190 billion by 2025-26.
  • India contributes approximately 2.3% to the country's GDP through the textile sector.
  • The domestic apparel market is projected to reach $105.50 billion in 2024.
  • India is the world's 6th largest exporter of textiles and apparel.
  • The industry accounts for 13% of India’s industrial production.
  • Textile and apparel exports from India stood at $44.4 billion in FY 2022.
  • The Indian fashion retail market is expected to grow at a CAGR of 10% to reach $115-125 billion by 2025.
  • 100% FDI is allowed in the textile sector under the automatic route.
  • The PLI (Production Linked Incentive) Scheme for Textiles has an approved outlay of ₹10,683 crore.
  • India’s contribution to global textile and apparel trade is approximately 4%.
  • The market is expected to grow annually by 3.81% (CAGR 2024-2028).
  • Technical textiles in India is a segment growing at 8% per annum.
  • By 2030, India is predicted to become the third-largest consumer market for apparel.
  • The ready-made garment (RMG) sector creates the largest volume of exports within the textile space.
  • Per capita expenditure on apparel in India is expected to reach $64 by 2025.
  • The textile industry is the second-largest employment generator in India after agriculture.
  • Men's apparel holds the largest share of the Indian apparel market.
  • India aims to achieve $100 billion in textile exports by 2030.
  • The share of organized retail in Indian apparel is expected to reach 35% by 2025.
  • Apparel constitutes approximately 7% of the total household expenditure in India.

Interpretation

With policy fuel like 100% FDI and the Rs 10,683 crore PLI scheme, rising per capita apparel spend, expanding organized retail and fast growing technical textiles, and a strong ready made garment export base that already makes India the world's sixth largest exporter, the Indian textile and apparel industry is on track to weave a roughly $190 billion market by 2025 to 2026, more than double exports toward a $100 billion target by 2030, and become the third largest apparel consumer market while continuing to power employment and industrial production.

Textiles & Production Capabilities

  • India is the largest producer of cotton in the world.
  • India is the second-largest producer of silk globally.
  • India has the highest area under cotton cultivation in the world, representing about ~39% of the world area.
  • India is the largest producer of jute in the world.
  • The country produces 95% of the world's hand-woven fabric.
  • India has an installed capacity of over 50 million spindles in the organized sector.
  • Man-made fiber production in India was recorded at 2,056 million kg in FY22.
  • India accounts for 14% of the world’s production of textile fibres and yarns.
  • There are over 3,400 textile mills in the non-small scale industry sector in India.
  • India produces all four varieties of silk: Mulberry, Eri, Tasar, and Muga.
  • Tamil Nadu accounts for the largest spinning capacity in India, contributing over 40%.
  • India is the second-largest producer of polyester filament yarn globally.
  • The installed power loom capacity in India is approximately 2.3 million units.
  • Muga silk exhibits a geographic indication (GI) tag and is produced only in Assam.
  • India’s denim fabric manufacturing capacity is roughly 1.5 billion meters per annum.
  • The state of Gujarat produces about 30% of the country’s cotton.
  • The technical textiles market in India is the 5th largest in the world.
  • India is the largest producer of coarse, raw wool in the world.
  • Ludhiana is known as the Manchester of India for its hosiery production dominance.
  • India produces about 6,000 million kg of cotton yarn annually.

Interpretation

With the largest cotton and jute harvests, all four native silks, world-leading hand‑woven output and staggering spindle, loom and denim capacities, India simultaneously keeps centuries-old craft alive and runs a modern textile engine that clothes the world.

References

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