Mr. Santosh Katariya
President,
CMAI
FVC Media Team had the privilege to speak with Mr. Santosh Katariya, President of the Clothing Manufacturers Association of India (CMAI), for an exclusive interview on the current state and future outlook of India’s apparel industry. In this conversation, he shares valuable insights on the performance of the kidswear, womenswear, and menswear segments as of July 2026, following the highly successful 83rd National Garment Fair (Kidswear Edition).
How would you describe the current state of the Indian apparel industry? What key factors are driving or constraining growth across kidswear, womenswear, and menswear?
India’s apparel market reached ~US$ 100 Bn in FY2025-26, growing 6% YoY, and is projected to reach US$ 180 Bn by FY2030-31 at a 9% CAGR. This is largely driven by the growth of consumption in Tier 2 and Tier 3 markets. E-commerce has also played a role – opening up choices and products till recently not available to these markets. The future continues to look bright for the Domestic Sector, though a few challenges remain:
- GST has been rationalised into two slabs:
- 5% for garments up to Rs. 2,500
- 18% for garments above Rs. 2,500
Whilst the resultant simplification is welcome. However, the higher GST on premium apparel remains an industry concern. The Ethnic wear segments and the Woolen Garments segment have been the most hit, with consumers making price-based decisions rather than quality or fashion.
- Continuing uncertainty regarding the Middle Eastern War has dampened Consumer confidence to spend, and Apparel is one of the primary industries to be hit.
- Shortage of skilled manpower is an important obstacle to expansion and growth.
- Apparel exports are unfortunately remaining stagnant at around US$15 billion, and several factors, such as the wars, tariffs, etc., are impacting our growth. However, the upcoming FTAs and the improving ties with the US are indicating a brighter period going ahead.
The 83rd NGF Kidswear Edition in June 2026 saw strong participation with over 630 brands. How is kidswear performing in terms of sales growth, demand, and innovation? What trends do you see through 2026 and beyond?
The Kidswear segment is valued at app. US$21 billion, and is growing at around 9% per annum, which is higher than the growth rate seen in the other segments. This is possibly due to its very characteristic of having constantly growing consumers requiring new clothes every 6 months. The typical thinking of the Indian parent, of first buying for their children before buying for themselves, is also an important factor.
The 83rd NGF (Kidswear) witnessed a very enthusiastic response from the trade, with a high level of footfalls and serious buying. Most participants reported good and better than expected orders. Trends indicate a continuation of the 9% growth seen in the segment.
The NGF has once again proved to be a mood changer for the Domestic Industry.
How has the womenswear market performed in the first half of 2026? Are there notable shifts in demand for ethnic, western, or fusion styles?
Womenswear remains the largest apparel category in India, with a market size of ~US$ 48 Bn in FY2025-26, accounting for over 40% of the total apparel market.
Ethnic wear continues to dominate the category, while fusion wear and contemporary ethnic are the fastest-growing sub-segments, driven by increasing demand for versatile and occasion-led fashion.
Digital commerce, social media, and influencer-led trends are reshaping consumer preferences, while Tier II and III cities are emerging as key growth markets for branded womenswear.
Considering the fast-changing and unpredictability of Women’s wear fashions, Retailers typically tend to be more conservative in their inventory holding in this category.
How is menswear faring in 2026 compared to previous years? Which categories are showing stronger momentum, and what role are Tier II/III markets playing?
Menswear is the second-largest apparel category, with an estimated market size of ~US$ 44 Bn in FY2025-26. Menswear continues to be one of the most stable apparel segments, supported by sustained demand.
The category is witnessing a clear shift from need-based purchasing to lifestyle-led consumption, with consumers increasingly investing in quality, fit and branded products.
Demand for smart casuals, athleisure and premium occasion wear is growing rapidly. This trend is seen in virtually all markets, irrespective of the geographical or income strata classifications.
What are the biggest challenges facing manufacturers today? Where do you see the greatest opportunities for CMAI members?
Increasing raw material costs and the availability of skilled labour are the biggest challenges faced by our members, combined with the increasing credit periods extended in the industry.
The maximum opportunity for CMAI members is to develop a combination format of FOB supplies to corporates, developing value proposition-based Brands, and initiate the sustainability processes in their operations.
How are Indian exporters positioned amid global low single-digit growth and supply chain shifts? Are there gains in the US, UK, or the Middle East?
Exports have remained stagnant for the last several years. However, we seem to be at a turning point today – with FTAs likely to be implemented with the UK, EU, Australia, and the US Trade Deal finally taking shape. I see a bright future ahead for Indian Apparel exports.
What are your expectations for each segment in the rest of 2026 and 2027? How will CMAI events and initiatives like skilling and ESG help?
As mentioned, the scenario is looking upbeat for the coming year in all segments – and CMAI Fairs can play a pivotal role in harnessing the potential provided by the environment and circumstance for its members. Additional and newer initiatives by CMAI, especially in the field of Skilling and Sustainability – through ECO-STITCH, will provide a further boost to energizing its members to face the future with better preparedness and confidence.
What is your vision for strengthening India’s apparel ecosystem and balancing domestic growth with global competitiveness?
As CMAI’s President, I see my role and vision based on 4 pillars:
- Continue building Brands of India as the flagship platform for taking Indian apparel brands to international markets.
- Position sustainability as a core pillar of India’s apparel industry’s future competitiveness.
- Accelerate digital transformation through AI adoption, technology awareness, and member capacity building.
- Continue building an inclusive industry platform that supports MSMEs, large manufacturers, brands, and retailers alike.
