India’s Apparel Market Projected to Reach $146.3 Billion by 2029, Says CMAI Report

Kidswear and womenswear set to outpace menswear as demand for casualwear, comfort-focused clothing and branded apparel expands

Kidswear and Womenswear Lead Projected Growth

India’s apparel market is expected to expand at an annual rate of 9% between 2025 and 2029, reaching $146.3 billion from $95.7 billion, according to a CMAI report.

The projected growth is attributed to consumers upgrading their wardrobes, shifting from unorganised to organised retail and entering branded apparel consumption for the first time.

Menswear remained the largest segment in 2025, valued at $38.5 billion, followed by womenswear at $35.6 billion and kidswear at $21.6 billion. However, the growth outlook indicates a faster expansion in kidswear and womenswear over the forecast period.

Kidswear is projected to grow at an annual rate of 9.4% through 2029, while womenswear is expected to expand by 8.9% and menswear by 8.5%. By 2029, womenswear is projected to reach $55 billion, while kidswear is expected to approach $34 billion.

Casualwear Accounts for the Largest Consumption Share

Casualwear emerged as the largest apparel consumption segment in 2025, accounting for 31% of the market. Ethnic wear represented 27%, while formalwear accounted for 26%.

The report highlights increasing demand for athleisure, denims, T-shirts and functional clothing, reflecting consumer preferences for comfort and versatility.

In womenswear, workforce participation, athleisure and Indo-Western styles are expected to support market growth. Kidswear demand is being driven by sportswear and activity-specific clothing.

Despite these evolving preferences, traditional wear continues to hold a significant position in womenswear, accounting for around 60% of the segment.

Physical Retail Continues to Dominate Apparel Sales

Physical retail is expected to remain a central distribution channel even as online apparel sales grow.

Offline channels accounted for 83% of India's apparel sales in 2025, valued at $79.4 billion. Online sales stood at $16.3 billion, indicating that the market continues to rely heavily on physical stores alongside digital channels.

The figures point towards an omnichannel retail environment in which offline and online channels both contribute to apparel sales.

Survey Covers More Than 10,000 Consumers

The CMAI study is based on a survey of 10,929 consumers across 16 states. Its findings outline the projected expansion of India's apparel market and changing demand patterns across product segments, clothing styles and distribution channels through 2029.