From Tradition to Tech: The New Age of Indian Apparel Industry

India's apparel industry stands at a unique point, poised between vast opportunities and undeniable structural challenges. Today, the sector is brimming with growth potential, thanks to robust domestic demand, an expanding export footprint, and a rich, diverse manufacturing base. Strategic initiatives such as the Production Linked Incentive (PLI) scheme and the MITRA parks are laying down a strong foundation for large-scale, integrated, and globally competitive textile hubs.

At the same time, the industry faces pressing challenges. Rising raw material costs, labour shortages, complex regulations, and global tariff uncertainties continue to weigh down momentum. Furthermore, while India is increasingly being seen as a viable alternative to China and Bangladesh for global sourcing, due to shifting geopolitical alignments, India’s ability to fully capitalize on this shift will depend on how swiftly we can resolve these external disruptions and build internal resilience.

India’s Position in Global Apparel Trade: Strengths & Shortcomings

India enjoys a powerful value proposition, strong cotton production, a vertically integrated supply chain from fibre to fashion, and a long-standing cultural commitment to sustainability. Yet, our country’s global market share in apparel remains below 3 percent, lagging behind countries like China (with its scale), Bangladesh (with its cost competitiveness), and Vietnam (with its speed and compliance standards).

To truly elevate our global standing, we must shift our focus from low-margin, basic commodities to high-value, fashion-driven exports. This requires faster adoption of advanced technologies, investment in workforce upskilling, simplified business operations, and, crucially, upgraded infrastructure, especially the development of new sea ports to improve logistics and lead times.

Tackling Tariff Volatility Through Diversification and Diplomacy

American tariff policies have created short-term pricing and order unpredictability. However, I believe India’s strong domestic market and global demand will cushion long-term impact. The key is strategic diversification, exploring Free Trade Agreement (FTA) markets like the UK, EU, Middle East, and Japan, while also working toward stable, long-term USD contracts to minimize financial volatility.

Moreover, government schemes like PLI, MITRA, faster export refunds, and proactive trade diplomacy will offer much-needed stability. A push from the highest levels, as seen in our Prime Minister's call to prioritize Indian-made products, adds further encouragement to domestic manufacturing and consumer confidence.

With sustained focus on value, technology, and sustainability, we can stitch a future where Indian apparel is not only made for the world, but leads it.

Tech-Driven Transformation in Apparel

Technology is rapidly transforming every aspect of our industry, from design to delivery. Artificial Intelligence is enabling brands to forecast fashion trends by analyzing consumer behaviour in real-time. In manufacturing, AI-powered automation is enhancing efficiency, reducing errors, and lowering costs.

When integrated with ERP systems, AI allows for smart planning, predictive maintenance, and real-time decision-making. In the supply chain, it offers full visibility, smarter inventory control, and demand forecasting. In e-commerce, it’s powering personalization, dynamic pricing, and superior customer experience. The end result? A faster, leaner, and more responsive apparel industry ready to meet changing market demands.

Post-Pandemic Consumer Shifts: Value, Comfort & Consciousness

Post-pandemic, the Indian consumer has become more value-conscious yet brand-aware. Comfort wear, sustainable materials, and the convenience of online shopping are now major influences on buying decisions. Athleisure and functional clothing have transitioned from niche to norm.

Looking ahead, I foresee long-term trends toward quality over quantity, increased trust in e-commerce-first brands, and a heightened demand for transparency and ethical sourcing. These shifts present new avenues for brands willing to invest in authenticity and customer engagement.

Sustainability at Scale
Sustainability is not a new concept for India; it’s deeply embedded in our culture. But to scale it affordably for the broader market, we must strike the right balance between cost, consumer awareness, and ESG implementation.

On the environmental front, embracing renewable energy, water recycling, organic fabrics, and circular waste management can lower long-term costs. Socially, fair wages, safe working conditions, and skilling initiatives are not just ethical imperatives; they're business enablers. Governance practices like traceable supply chains and third-party certifications enhance credibility and investor trust.

With the right mix of scale, incentives, and a growing eco-conscious customer base, sustainable apparel in India is not just possible, it’s inevitable.

Upskilling, the Cornerstone of Competitive Advantage

India’s youthful, tech-savvy workforce is one of its greatest advantages. However, since the apparel sector is largely MSME-driven, targeted skilling programs are essential. We need more institutes like NIFT and ATDC, and industry-academia collaborations in rural and semi-urban apparel parks.

Continuous, hands-on training will boost productivity, reduce rejection rates, and future-proof our workforce. This is not just a social investment, it’s a strategic imperative for global competitiveness.

A Leadership Lesson - Adaptability is Everything

If there’s one leadership lesson that has stood the test of time in my career, it is adaptability. In our industry, change is constant, be it in consumer trends, trade regulations, or technology. The ability to learn continuously and stay closely connected with every layer of the supply chain has helped me navigate uncertainty and stay ahead.

To aspiring entrepreneurs and startups entering the apparel space: success demands a blend of vision, resilience, innovation, and customer obsession. Stay financially disciplined, lead with purpose, and never stop learning. The apparel industry rewards those who are agile, insightful, and courageous enough to reimagine what’s possible.

Today, India’s apparel industry has all the right ingredients, scale, skill, and spirit, to become a global leader. But realizing this potential will require bold leadership, collaborative innovation, and policy support. With sustained focus on value, technology, and sustainability, we can stitch a future where Indian apparel is not only made for the world, but leads it.

About the Author - Dr. G. Loganathan is the Managing Director of The Imperial – Wholesale Apparel Suppliers. With over two decades of experience in the apparel and textile sector, he is known for his strategic foresight and commitment to sustainable growth in the industry.