fashion industry boom.pptx an economics project

ertainly! Below is an extremely detailed analysis of India’s Fashion Boom from an economic perspective, covering historical context, growth drivers, market segmentation, challenges, and future trends. India’s Fashion Boom: An Economic Analysis 1. Introduction India’s fashion industry is undergoing a massive transformation, evolving from a traditional, unorganized sector to a globalized, digitally-driven, and high-growth market. The industry is a key contributor to India’s GDP, employment, and exports, fueled by: Demographic dividend (65% population under 35) Rising disposable incomes (per capita income doubling since 2014) E-commerce & social media penetration Government & private sector investments Key Segments of India’s Fashion Industry Segment Description Market Share (2024) Growth Rate (CAGR) Ethnic Wear Sarees, lehengas, kurta sets 35% 8-10% Western Wear Jeans, shirts, dresses 25% 12-15% Fast Fashion Zara, H&M, Shein (before ban) 15% 20%+ Luxury Fashion Gucci, Louis Vuitton, Sabyasachi 5% 18% Sustainable Fashion Organic fabrics, upcycled clothing 3% 25%+ Sportswear & Athleisure Nike, Puma, local brands 10% 15% (Source: Bain & Co., Statista, Indian Textile Ministry) 2. Economic Drivers of India’s Fashion Boom A. Macroeconomic Factors GDP Growth & Rising Incomes India’s per capita income rose from $1,500 (2014) to ~$2,600 (2024). Middle-class expansion: 600M people by 2030 (Brookings Institute). Urbanization: 35% urban population (2024), expected to reach 50% by 2050. E-commerce & Digital Payments Revolution Myntra, Ajio, Nykaa Fashion dominate online fashion (~$30B market by 2025). UPI & BNPL (Buy Now, Pay Later): 40% of fashion purchases are digital. Social Commerce: Meesho, Instagram Shopping driving Tier 2-3 sales. Foreign Direct Investment (FDI) in Retail 100% FDI allowed in single-brand retail (e.g., H&M, Uniqlo). Reliance & Aditya Birla Group partnering with global brands (e.g., Gap, Superdry). Government Policies Boosting Fashion Make in India: Incentives for textile manufacturing. PM-MITRA Parks: 7 mega textile hubs with ₹4,445Cr investment. Reduced GST on apparel: 5% (below ₹1,000) & 12% (above ₹1,000). B. Socio-Cultural Shifts Youth & Aspirational Consumption Gen Z & Millennials (18-35 age group) = 52% of India’s population. Demand for fast fashion, athleisure, and global trends. Influence of Bollywood & Social Media Celebrity brands: HRX (Hrithik), Manyavar (Virat Kohli), Wrogn (Kohli). Instagram & YouTube influencers: 70% of Gen Z buyers follow fashion influencers. Wedding & Festive Demand $50B wedding industry (2nd largest globally). Festive sales (Diwali, Eid) contribute 40% of annual fashion revenue. 3. Economic Impact of India’s Fashion Industry A. Contribution to GDP & Employment Textile & apparel sector = 2.3% of India’s GDP (~$165B). Largest employer after agriculture: 45M+ direct jobs, 100M+ indirect (handloom, retail, logistics). Exports: $44B (2023), 2nd largest textile exporter after Ch