Fashion pulse: India - March 2026

Consumer prices (March)

Fashion prices in India rose 2.81 percent year-on-year in March, below the overall inflation rate of 3.40 percent, according to India’s National Statistical Office (NSO). The clothing and footwear category, which carries a 6.53 percent weight in India’s consumer price index, has remained relatively stable, with inflation well contained despite broader price pressures. Rural areas saw slightly higher overall inflation at 3.63 percent compared to 3.11 percent in urban areas, according to the NSO. The divergence reflects different consumption patterns and supply chain dynamics between India’s urban centres and its vast rural market.

Retail sales (February)

India’s retail sector grew 9 percent year-on-year in February, according to the Retailers Association of India (RAI). The apparel and clothing segment emerged as the top-performing category with 12 percent growth, outpacing all other retail segments. Western and eastern India led with 10 percent growth each, followed by northern India at 9 percent and southern India at 8 percent, according to RAI. The strong apparel performance reflects India’s growing consumer market and expanding middle class.

Macro context (March)

Unemployment rose to 5.1 percent in March, a five-month high, according to the Periodic Labour Force Survey (PLFS) published by India’s National Statistical Office. Urban unemployment stood at 6.8 percent compared to 4.3 percent in rural areas. The Reserve Bank of India (RBI) held its repo rate at 5.25 percent, while the rupee traded at approximately 93.39 to the dollar. Upstream in the supply chain, wholesale prices for textile manufacturing rose 4.91 percent in March according to the Wholesale Price Index (WPI), while finished wearing apparel wholesale inflation was a more moderate 1.81 percent, according to the Department for Promotion of Industry and Internal Trade (DPIIT). The gap suggests manufacturers are absorbing rising input costs.

The bottom line: India’s fashion retail is one of the strongest growth stories in the Fashion pulse series, with apparel sales growing 12 percent while consumer inflation remains moderate at 2.81 percent. The gap between textile input inflation at 4.91 percent and finished garment inflation at 1.81 percent signals margin pressure for manufacturers, even as retail demand remains robust.

Note: The figures in this article are based on different reporting periods. Some indicators are already available for March, while others are reported with a time lag due to survey and publication cycles. This is common practice in official statistics and nevertheless allows for a reliable assessment of current market trends.