India’s denim is witnessing one of the fastest growth as an apparel fabric segment in India, up from 700 million meters in 2010 to 1.2 billion meters in 2015. Yet, there is a gap of 300 million meters in India for the denim industry to tap its full export potential. The denim industry is growing at a compounded annual growth rate of 13 to 15 per cent in a year when overall apparel growth rate is being pegged at three to five per cent this fiscal, down from 12 to 15 per cent for the past couple of years.

Denim makes up 35 per cent of total textile exports from India and is expected to rise to 45 per cent of total exports by 2020; production is also expected to increase to 1.5 billion meters by 2020. While the total denim capacity in the country is about 1.2 billion meters per annum, the utilisation is at around 900 million meters per annum, of which 250 million meters would be exports.

The Indian denim industry is gradually looking to increase its share of exports. As an apparel segment, denim’s growth has been more in the domestic market than in exports.