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How To Start A Garment Business in India

How To Start A Garment Business in India

An Introduction to the Garment Industry in India

The garment industry in India is one of the oldest and has been a critical contributor to the country's economy. The sector employs over 45 million people and is one of the largest employers in the country. The industry is also one of India's most crucial export earners, with exports worth over US$ 40 billion in 2017-18.

Over the past few years, India's clothing business has grown rapidly. A relatively young population, rising incomes and social media exposure have all helped in the growth of this sector. Also, the government has helped the industry in many ways by way of subsidies and setting up special economic zones (SEZs).

How to start a garment business in India

If you want to start a garment business in India, there are a few things you need to know. The first is that the Indian market is very competitive, so you will need to have a good business plan and be able to produce high-quality garments at a competitive price. You will also need to set up a good distribution network.

These are a few things you should keep in mind when starting a garment business in India:

1. The Indian market is very competitive, so you will need to have a good business plan and be able to produce high-quality garments at a competitive price.

2. You will also need to set up a good distribution network.

3. It is essential to choose the right location for your business. India is a large country with many different states and regions, each with its unique market.

4. You must obtain the necessary licenses and permits before starting your business.

5. There are several trade associations and chambers of commerce that can provide support and assistance to businesses in India.

The benefits of starting a garment business in India

India is the second largest producer of textiles and garments in the world. The country has a rich textile and garment manufacturing tradition dating back to ancient times. India is also one of the world's largest exporters of textiles and finished garments.

There are numerous benefits to starting a garment business in India. Some of these include:

1. Low Cost of Production: India has a large pool of skilled workers, which makes labour costs affordable and helps keep overall production costs low. Also, the raw materials that are used to make clothes are readily available and priced fairly in India.

2. Favorable Government Policies: India's government has put in place several policies and programmes to help the textile and garment industry grow. Some of these are programmes like the Technology Upgradation Fund Scheme (TUFS), which gives monetary help to help modernise and upgrade the technology of existing units.

How to find the right market for your garment business in India

The Indian garment industry is vast and growing exponentially. To succeed in this market, choosing the right target market is essential. There are many factors to consider when selecting the most appropriate market for your garment business in India. These include:

1. The type of garments you produce: There is a huge demand for traditional Indian clothing such as sarees, lehengas, and kurtas, as well as Western-style apparel such as jeans, t-shirts, and dresses. A readymade garments business can prove to be a lucrative option.

2. The size of your business: The Indian garment industry is highly competitive, so it is essential to consider the size and scale of your operation. If you are a small-scale operation, it may be more challenging to compete against larger businesses. Therefore, choose a market that is appropriate for the size of your business. However, through an online garments business model, smaller businesses too can reach out to a larger market.

3. Your location: India is a large, populous country. To be successful, it is essential to select a target market that is geographically accessible. Consider both urban and rural areas when choosing your market.

4. Your resources: To be successful in the Indian garment industry, it is important to have the right tools. This means having access to good fabrics, skilled workers and the right locations for manufacture. Before making any commitments, make sure you have the resources you need to be successful in your chosen market.

5. The competition: As was already said, the Indian garment industry is very competitive, and there are already a lot of companies doing business there. So, having a USP that makes you stand out from the competition is very important.

Tips for success in the Indian garment industry

Being an extremely competitive landscape, it takes careful strategy to foray into the garment selling business. Whether you plan to start a brick-and-mortar garments selling shop or an online garment business, here are some tips for success:

1. Know your target market: The first step to success is to know your target market. You need to identify who your potential customers are and what their needs and preferences are. You can choose to stick to one niche, for instance, children's clothing or ethnic wear, or you can cater to a wider segment.

2. Research your competition: Knowing who your competition is and what they offer is essential. This will help you position your products in the market and price them accordingly.

3. Create a unique selling proposition: You need a USP for your products to stand out from the rest of the market. This could be in terms of design, quality, price, etc.

4. Focus on quality: In the Indian garment industry, quality is paramount. Your products should meet international standards to gain recognition and establish a strong foothold in the market.

5. Invest in marketing: Marketing is an essential aspect of any business, especially in the intensely competitive garment industry. You need to invest in both traditional and digital marketing channels to reach out to your target customers effectively.


If you want to start a garment business in India, there are a few things you need to keep in mind:

  1. You must research the market and determine what garments are in demand.
  2. You must set up a manufacturing unit and get the necessary licenses and permits.
  3. It would help if you created a strong marketing and sales plan.
  4. You must ensure uncompromising quality to gain visibility in this highly competitive industry segment.

If you want to start a garment business in India and need money to do so, check out the Tata Capital Business Loan section for more information on how to get money quickly to start this business.

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