The Indian denimwear market is currently facing an oversupply situation in the aftermath of the capacity expansion post-2011, which in turn was due to lower incubation after the demand for denim fabric picked up as a result of a recovery in the country's economy. India is now being looked upon by a number of global denim manufacturers as an emerging export region, owing to its high availability of cotton, quality standards, cost-effectiveness, and a large pool of skilled workforce. Fibre2Fashion presents an overview of the market.
First, let's look at the elementary facts: the global market for denim is forecast by observers to top a phenomenal $64.1 billion in another four years. In this backdrop, the Indian denim industry too has shown continual growth over the years. Currently, the country has a denim manufacturing capacity of around 1.2 billion metres per annum operating at a utilisation level of about 80-85 per cent. Yet, despite the impressive numbers, the Indian denim manufacturing industry contributes a paltry 5 per cent to the global market, in essence reflecting the overall performance of the country's textiles industry. However, denim is the only segment in the Indian textiles industry that has the potential to grow manifold compared to others.
India is being looked upon by an increasing number of global denim manufacturers as an emerging denim export region, owing to its high availability of cotton, quality standards, cost-effectiveness, and a large pool of skilled workforce. Moreover, denim jeans manufacturing costs are substantially lower in India as compared to other developed/developing nations.
On the domestic front, the denimwear market is now being driven by a number of factors: favourable demographics, increasing disposable incomes, westernisation of work culture, and a rise in the popularity of denim jeans as business casualwear. And with unabated globalisation, young India prefers denim as part of essential dailywear. All these factors augur well for growth.