India’s organised apparel retail sector is primed for solid growth this year, fueled by the recent GST rationalisation. As Crisil Ratings highlights, lowering the GST rate to a uniform 5% for garments priced up to ₹2,500 extends the affordability of branded fashion deeper into tier-2 and tier-3 markets.
Analysts project this policy will add up to 200 basis points to retailer revenues, anchoring sector growth at a strong 13-14% for the year. The new slab especially benefits price-conscious buyers, reviving demand and generating fresh employment—particularly among female workers in stitching and tailoring.
While mid-premium and fast-fashion segments are set to gain, the shift to 18% GST on garments above ₹2,500 restricts premium product momentum, dampening sales in segments like wedding wear and handlooms.
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With 35% of organised sales in the premium bracket, the rebalancing of rates invites sharper competition and wider consumption. Ultimately, this timely GST reform positions India’s apparel retailers for resilient, inclusive sectoral expansion.
CREDITS: This piece of info is automated generated by the internet and has not been edited and reviewed by us.
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