The Indian denim industry has emerged as a global force, evolving from a modest beginning in the 1980s to becoming a vital part of the international denim market. Denim, once synonymous with durable workwear, has transformed into a fashion staple, deeply ingrained in global culture and lifestyles. Today, India stands as the third-largest denim producer worldwide, with Gujarat at its helm, producing 60–70% of the country’s denim fabric.
Over the years, the Indian denim market has witnessed remarkable growth, boasting an annual growth rate of 8–9%. By 2026, the market is expected to reach $9.15 billion, up from $6.15 billion in FY2023. This growth is fueled by factors like rising disposable income, urbanization, and increasing demand for versatile clothing across urban and rural areas. However, the path is not without its hurdles.
Geopolitical uncertainties, fluctuating market conditions, and rising raw material costs pose significant challenges. According to Vedant Agarwal, CEO of Suryalakshmi Cotton Mills Ltd, shorter lead times demanded by buyers are a double-edged sword—reducing inventory costs but lowering manufacturing efficiency. These dynamics are shaping the strategies of Indian manufacturers.
Suryalakshmi Cotton Mills, a pioneer in India’s denim industry, has been instrumental in producing premium denim for global and domestic brands. Similarly, Sitaram Spinners Pvt. Ltd., a key player in the yarn segment, emphasizes the critical impact of raw material costs. Executive Director Gautam Ganeriwal highlights that spandex, polyester, and cotton prices in India are significantly higher than global averages, making competitive pricing a challenge for Indian manufacturers.
Despite these challenges, sustainability has become the cornerstone of India’s denim production. Indian mills are adopting eco-friendly practices, recycling polyester and rayon fibers, and experimenting with sustainable materials like Tencel, Modal, and Ecovera. “Sustainability is not an option; it is a necessity,” says Ganeriwal, reflecting the industry’s commitment to green manufacturing practices.
Technological innovation is another driving force. Advanced production techniques, functional finishes, and smart textiles are redefining denim’s scope, catering to the evolving tastes of global consumers. Agarwal notes that Indian mills are not just following trends but setting benchmarks in sustainable and innovative denim production, making India a hub for cutting-edge design and manufacturing.
The growing influence of western fashion, coupled with rising aspirations among younger consumers, has further propelled denim’s popularity. The industry is seeing increased competition as manufacturers innovate to cater to diverse preferences, from urban fashionistas to rural customers.
Innovation extends beyond design to include product diversification. Denim manufacturers are exploring new blends, smart textiles, and functional finishes that cater to emerging trends. As Ganeriwal suggests, India has the potential to become a global center for denim innovation by investing in technology and R&D, creating products that set global standards.
Export growth is another key area of focus. While domestic demand has been strong, the industry must expand its global footprint to achieve its full potential. Addressing high raw material costs, streamlining supply chains, and capitalizing on anticipated global market recovery are critical steps in this direction.
The industry’s future looks promising, driven by rising per capita consumption, improved manufacturing capabilities, and alignment with global sustainability standards. Indian denim manufacturers are now delivering products that rival global quality benchmarks, positioning India as a major player in the international denim market.
As Ganeriwal concludes, “With declining interest rates in the US and increased per capita consumption in Western markets, the global denim industry is poised for recovery. This resurgence will undoubtedly benefit Indian manufacturers, enabling them to overcome recent challenges and achieve sustained growth.”
The Indian denim industry’s journey exemplifies resilience and adaptability, balancing challenges with opportunities to emerge as a leader in the global denim landscape.