India's apparel retail market poised to reach US$ 193 billion by FY30: CareEdge
- IBEF
- January 19, 2026
India’s apparel retail market is poised for robust expansion over the next five years, with the segment expected to grow to nearly Rs. 16 lakh crore (US$ 193 billion) by FY30, according to a report by CareEdge Ratings. The market was estimated at Rs. 9.30 lakh crore (US$ 112 billion) in FY25, having expanded at a compound annual growth rate (CAGR) of around 7% since FY18, supported by rising disposable incomes, rapid digitalisation, and sustained demand across multiple apparel categories. Organised retail currently accounts for about 41% of the overall apparel retail market and is projected to grow at a faster pace of 10–13%, as consumers increasingly prefer branded apparel and structured retail formats, alongside a growing presence of international brands. Retailers such as Zudio, Max Fashion, and Reliance’s Yousta are actively expanding their retail footprint, particularly in Tier-2 and Tier-3 cities, which are expected to emerge as major consumption hubs in the coming years.
The e-commerce channel, which currently accounts for about 22% of organised apparel retail, is projected to raise its share to nearly 25% by FY30, translating into a market size of around Rs. 5 lakh crore (US$ 60.2 billion), supported by growing internet penetration and smartphone adoption. Rising digital engagement and the influence of younger consumers on fashion preferences are accelerating the shift towards digital-first and omnichannel retail strategies. While the apparel sector faced demand pressures during 2024-25 due to inflationary conditions, sales momentum improved during the festive and wedding seasons, supported by higher footfalls and improving consumer sentiment. CareEdge Ratings also noted that recent Goods and Services Tax (GST) changes, including a lower tax rate on apparel priced below Rs. 2,500 (US$ 30.1), are expected to enhance affordability and further strengthen growth prospects for the value fashion segment.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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