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Indian Fashion; India soars as the world’s second-largest producer of textiles and garments

 

By Daniel Asikpo Aug 04, 2023

 

Without a doubt, India is one of the richest countries in terms of fashion priorities. With dress patterns that charm, this beauty is yet to be replicated in the Western world especially when adorned with ornaments. Both culturally and economically, it is a multi-billion dollar industry that has grown significantly over the years.

 

 

Before we emphasize economic growth, I wouldn't fail to dive into the diversified beauty and luxury of the Indian fashion pose, especially for the women of the country. When it comes to a well-furnished and calculated fashion that fits dissent, colourful fashion trends, don't abstain from India. Though fashion has been traced to existence long ago, elegant fashion design culture dating back to the 80s was a trend among Indians though it came with heavy price tags. 

 

Indian fashion industry contributes significantly to the country's economic growth in several ways:

 

Employment Creation: With India envisioned to become the third largest country in economic growth, there is a need for a rise in per capita income. Also noted to be one of the highest employers in the country, the fashion industry provides employment to a large number of people, including designers, artisans, weavers, tailors, manufacturers, and retail workers. Thus, promotes job creation and opportunities with a reduction in the unemployment rate.

 

Infrastructure Development: Yes, fashion also boosts the real estate and infrastructural sector of the country. The growth in the fashion industry necessitates the development of infrastructure, such as manufacturing units, fashion institutes, retail spaces and even fashion show centers. This development stimulates the construction and allied industries.

 

Export Earnings:  In 2022 India was recorded to ship apparel worth $14.82 billion, with export Of ready-made garments reaching USD 16 billion with 36% Share showing a growth of 31% and 3% during 2021-22 over FY21 and FY20, Respectively. India's fashion industry exports a considerable amount of clothing and textiles to various countries. The revenue generated from these exports contributes to the country's foreign exchange earnings.

 

Foreign Investment: Investors flog into India yearly due to the growth of the fashion industry that attracts foreign investment. This leads to the establishment of production units, design studios, and retail outlets which in turn, boosts economic activities and creates a favorable business environment.

 

Promotion of Small and Medium Enterprises: SME plays a vital role in the rapid growth of India economy. The fashion industry supports many small and medium-sized enterprises, including individual artisans and weavers. This promotes entrepreneurship, increased the working-age labour force and strengthens the grassroots economy.

 

Brand Recognition: The rich cultural heritage of India's fashion easily adds success to Indian fashion designers and brands on the global stage which enhances India's brand image internationally. This leads to increased interest in other Indian products and services, further contributing to economic growth.

 

Boost to Tourism: The rich and diverse India's fashion culture and heritage attract tourists from all over the world, who often engage in shopping and purchasing traditional Indian garments and accessories. Tourism expenditure further adds to the overall economic growth

 

Indian fashion's ability to adapt to changing trends and preferences has helped it stay relevant and appealing to a wide audience. The major driver of this success has been in the female apparels which has gained vast attraction and interest globally.

 

According to ibef.com, " India is the world’s second-largest producer of textiles and garments. It is also the fifth-largest exporter of textiles spanning apparel, home and technical products. The textiles and apparel industry contributes 2.3% to the country’s GDP, 13% to industrial production and 12% to exports. Around 45 million people are working in the textile business, including 3.5 million people who work on handlooms. The Indian textile and apparel industry is expected to grow at 10% CAGR from 2019-20 to reach US$ 190 billion by 2025-26. The Indian apparel market stood at US$ 40 billion in 2020 and is expected to reach US$ 135 billion by 2025."

 

The fashion industry's contribution to India's economy can vary from year to year and depends on various factors like consumer spending, export revenues, and overall economic conditions. Research statistics show that India generates not less than $50 billion this few years from fashion.