The Indian denim market is growing between eight to nine per cent a year.

India has long been a leader in denim fabrics and more recently the domestic jeans market has been expanding steadily, in fact, more quickly than the rate of global expansion.

With an annual capacity of over 1600 million meters, India has the second largest installed capacity for denim fabrics in the world, behind China. The estimated total number of denim fabric mills currently in operation in the country is over 50 in the organized segment, which is around 60 per cent greater than it was ten years ago. About 850 million meters to 900 million meters of the total capacity of Indian denim fabric is consumed domestically, including production of local jeans for export. The remaining fabric is exported to nations like Bangladesh, Colombia, Venezuela, Egypt, and Sri Lanka, among others.

In order to expand denim manufacturing capabilities, some mills are also investing in spindles in order to capture additional domestic and international markets and lessen their dependence on the market for yarns. With the aid of this backward integration, businesses have been able to better manage the availability of raw materials and schedule timely, cost-effective manufacturing. Newer businesses are striving to expand while the larger, more recognizable mills continue to consolidate.