The market is projected to grow 9% annually, with kidswear and womenswear expanding amid rising demand for casual, comfortable and versatile clothing.
India’s apparel market is projected to grow from $95.7 billion in 2025 to $146.3 billion by 2029, representing annual growth of 9%, according to a report by the Clothing Manufacturers Association of India (CMAI). Womenswear and kidswear are expected to record strong growth, while consumer preferences continue to shift towards casual, comfortable and versatile clothing.
The report attributes the market’s expansion to consumers upgrading their wardrobes, the transition from unorganised to organised retail, and more consumers entering branded apparel consumption for the first time.
Kidswear and Womenswear Set for Faster Growth
Menswear remained India’s largest apparel segment in 2025, valued at $38.5 billion, followed by womenswear at $35.6 billion and kidswear at $21.6 billion. However, projected growth rates indicate a gradual shift in the market’s composition.
Kidswear is expected to grow at an annual rate of 9.4% through 2029, followed by womenswear at 8.9% and menswear at 8.5%. Womenswear is projected to reach $55 billion by 2029, while kidswear is expected to approach $34 billion.
Casualwear Leads Apparel Consumption
Casualwear accounted for 31% of India’s apparel market in 2025, making it the largest consumption segment. Ethnic wear represented 27%, while formalwear accounted for 26%.
Growing demand for athleisure, denim, T-shirts and functional clothing reflects consumers’ preference for comfort and versatility, the report noted.
Within womenswear, workforce participation, athleisure and Indo-Western styles are expected to support market growth. Kidswear demand is being supported by sportswear and activity-specific clothing. Traditional wear nevertheless remains significant, accounting for around 60% of the womenswear segment.
Physical Retail Continues to Dominate Distribution
Despite the growth of online shopping, physical retail is expected to remain central to apparel distribution in India.
Offline channels accounted for 83% of apparel sales in 2025, valued at $79.4 billion. Online sales stood at $16.3 billion. The figures indicate that the market continues to rely heavily on physical stores alongside expanding digital channels, pointing towards an omnichannel retail environment.