India faces uphill battle to boost demand in $100 billion apparel market

India’s apparel industry must focus on driving a "consumption surge" to unlock its next phase of growth, according to market analysts.

The sector is currently valued between $70 billion and $100 billion. Experts say the primary challenge is expanding the overall size of the market rather than merely shifting existing consumer spending patterns.

Boosting domestic consumption remains the critical factor for future development in the industry.

India’s projected $70 billion to $100 billion domestic market expansion represents a fundamental shift in the global textile landscape. This “consumption uplift” is not merely a battle for existing market share; it is a concerted effort to expand the total addressable market. By prioritizing the purchasing power of its 1.4 billion citizens, New Delhi is executing a strategic pivot—securing a robust domestic foundation before scaling its export offensive.

This move poses a direct challenge to the export-heavy models of Vietnam and Bangladesh. While Vietnam remains heavily leveraged to demand volatility in the United States, the European Union, and Japan, India is building a macroeconomic hedge through internal consumption. If successful, this strategy will allow Indian textile conglomerates to achieve the economies of scale and technological maturity required to undercut global competitors on both price and innovation. For policymakers in Hanoi, the emergence of India as both a consumption powerhouse and a vertically integrated manufacturing titan is a strategic headwind that demands a recalibrated long-term response.

For Vietnamese-American entrepreneurs—whether they are running import-export businesses out of Little Saigon or managing fashion retail chains—India’s pivot toward its domestic market is a significant trend to watch. This shift could ripple through their supply chains if Indian manufacturers begin prioritizing local demand over export contracts. Conversely, a more robust Indian domestic industry could lead to even stiffer competition within the U.S. market, challenging the margins of diaspora-owned firms.