India’s Growing Apparel Sector Highlights New Opportunities
India’s apparel market is expected to grow along with its rapidly expanding economy, creating opportunities in both new markets and product sourcing. McKinsey & Company’s latest State of Fashion report highlights India’s ascent, listing it as one of the 10 trends to watch in the fashion industry.
The country’s GDP is expected to grow eight percent per year between 2018 and 2022, outpacing other emerging markets such as China, Turkey and Mexico. McKinsey expects its apparel market to be worth $59.3 billion in 2022, the sixth largest in the world and comparable to the UK’s projected $65 billion market and Germany’s $63.1 billion.
India’s role as a garment and textile sourcing hub for international markets is expected to grow along with its economy and apparel sector. A McKinsey survey found that 41 percent of chief procurement officers plan on expanding their sourcing from the country as labor costs are lower than China and comparable to Vietnam, and raw materials are readily available.
For more on McKinsey’s insights on the Indian market, click here.