India’s denim industry is showing early signs of recovery, driven by growing demand in rural markets, even as fashion brands and urban retailers continue to face challenges following the pandemic.
According to the 2019 Business of Fashion and McKinsey report, India’s denim production and consumption had been growing at a compound annual growth rate (CAGR) of 15%. However, the COVID-19 crisis significantly disrupted the country’s fashion sector, leaving manufacturers with underutilized production capacity and weakening demand from major apparel brands.
During a recent Carved in Blue webinar, executives from leading Indian denim manufacturers discussed the current market outlook and recovery prospects.
Aamir Akhtar, CEO of Arvind, explained that many global and domestic brands are still carrying unsold spring inventories and are repurposing existing stock rather than placing new orders. As a result, fresh demand for denim fabrics remains subdued.
Aditya Goyal, CEO and Managing Director of Anuhba Industries, said most Indian denim mills are expected to operate at only 45–55% of their production capacity over the coming months, reflecting cautious market conditions.
Rural Markets Lead Denim Recovery
While urban demand remains weak due to unemployment and economic uncertainty, rural India has emerged as a bright spot for the denim industry.
Executives noted that denim is increasingly being purchased as durable workwear in rural regions, where government support programs and continued agricultural activity have helped sustain consumer spending. This has accelerated the recovery of basic, commodity denim products compared to premium fashion denim.
Optimism for Future Growth
Despite weaker sales caused by changing consumer lifestyles during the pandemic, industry leaders remain optimistic about the long-term outlook.
Subir Mukherjee, Business Head of Bhaskar Denim, believes denim remains one of the world’s most resilient apparel categories and expects demand to rebound as economic conditions improve and consumer confidence returns.
