Author: Nelema Cona

Figure 2: World Bank Climate Change Knowledge Portal, 2021.

The country has a range of climate zones, from tropical warmth in the south to cold weather in the north. “The northern states of India have slightly higher temperatures than other same altitude areas during the winter season” (A Brief Summary on Climate of India, n.d.). This variability enables the production of a wide range of textiles, including lightweight cotton fabrics for hot and humid climates and warmer woolen materials for cooler northern areas. The monsoon season, which runs from June to September, is significant in agriculture, influencing cotton and other textile crops. “Wet tropical areas are located along the western coast, and a semi-arid climate extends in a strip up the country’s center and across the northwest. Contrary to the stereotypical heat associated with India, the northern mountainous regions, including the cold, arid, and windswept Himalayas, can see extreme cold” (India: Discover its Diverse Climate and Geography, 2019). Cotton is an essential raw material in the garment industry, therefore, the timing and severity of the monsoon may have a significant influence on goods and service levels. In Figure 2, “The country is influenced by the presence of the Himalayas in the northern part of the country and the Thar Desert in the west. The Himalayan Mountains act as a barrier to winds from Central Asia and China, enabling India’s climate to be warmer than other countries at similar latitudes.  The northern part of the country is characterized by a continental climate with hot summers and cold winters. The coastal regions of the country, however, experience warmer temperatures with little variation throughout the year and frequent rainfall” (World Bank Climate Change Knowledge Portal, 2021). Furthermore, climate impacts fashion trends; for example, light, breathable textiles are fashionable during the summer, whereas heavier materials are preferred in the winter. In addition, increased knowledge of sustainable fashion is influencing how customers and merchants approach clothes, particularly as climate challenges become more serious. Brands are increasingly focused on eco-friendly materials that are appropriate for India’s diverse climate, attracting environmentally aware customers.

The level of risk associated with international retailing in India is influenced by macroeconomic forces such as economic instability and global crises (Strickler, 2022). The Covid-19 pandemic, for example, caused significant economic risk for businesses in India. Between 2013 and 2018, India’s retail market was growing steadily, but it took a sharp decline in 2020 due to the global pandemic. According to Statista, India’s retail market is not expected to recover to pre-Covid levels until 2026 (Jones, 2023). The pandemic caused disruptions in the supply chain, including delays in transportation, which made it difficult for retailers to get products and inventory (Palavi, 2022). During this time, consumer behavior also shifted, with many people focusing only on essential items, which changed demand patterns (Palavi, 2022). Additionally, India faces structural economic challenges due to non-performing assets and bad loans, which further increase risks for international retailing in the country (Huang, 2023). These factors show that the risks in the Indian retail market are significant, especially in times of global uncertainty.

The political risk of doing retail business in India presents both opportunities and challenges due to the country’s changing political and regulatory environment. India’s regulatory landscape is constantly evolving, with frequent policy changes affecting foreign direct investment (FDI), e-commerce, and digital payments. The country also has local sourcing requirements and a push for data localization, which increases the complexity of compliance (Singh & Kumar, 2022). Additionally, rising economic nationalism, driven by initiatives like “Make in India” and “Vocal for Local,” creates barriers for foreign companies, especially with tariffs and trade restrictions (Sharma, 2021). Social and cultural norms are also important, as businesses must consider religious practices, local traditions, and state-level differences. A failure to navigate these norms can lead to public backlash (Patel, 2023). While regulatory reforms like the Goods and Services Tax (GST) and labor law changes aim to simplify business, they can also create challenges during the transition period (Gupta & Rao, 2020). Successful businesses in India adapt to local market conditions, stay alert to policy shifts, and manage operations in line with both national and regional priorities (Bose, 2019).

India’s IT industry is a major contributor to the economy, making up 7.4% of the GDP in 2022. It plays a significant role in global outsourcing, providing 56% of the total services. The Indian textile industry also holds a key place in the world market, with a 4.7% share in global textiles and clothing exports (Satish Kumar R, 2018). Cities like Bengaluru, often called the “Silicon Valley of India,” have become centers for software development, information technology, and digital services. India has made major progress in sectors like artificial intelligence, fintech, and e-commerce. “Technology has been instrumental in transforming e-commerce into a thriving industry, bridging urban-rural divides and democratizing access to services once confined to metropolitan cities” (Chacko et al., 2020). Companies like Paytm, Zomato, and Flipkart are leading in innovation, and government initiatives like Digital India are boosting digitization, giving millions of people access to the tech world, and encouraging entrepreneurship. “Young and educated, growing Indian middle class makes the biggest markets in the world” (Khurana, 2022). India’s advancements in software development and e-commerce, along with its strong IT sector, position it to have a significant impact on future global IT trends.

When it comes to shopping, women in India are increasingly turning to online platforms for their clothing purchases. “India’s clothing market plays a significant role in the national economy (Sabhya D. 2023). Websites like Myntra, Flipkart, and Amazon are popular choices, offering a wide range of apparel for all ages and styles. “more people choosing to shop online rather than in brick-and-mortar stores” (Chacko et al., 2020). Myntra, in particular, is one of the leading e-commerce sites for fashion in India. It is known for its large selection of international and local brands and a user-friendly shopping experience. According to a report by Statista (2023), Myntra accounts for a large share of the online fashion market in India, with millions of users buying clothes, accessories, and footwear. As digital shopping grows, more women are embracing e-commerce for convenience, variety, and exclusive online discounts.

Figure 6: (Indian Textiles: Nature & Making, 2024)

India is rich in natural resources and has experienced steady GDP growth of around 5.8% for 20 consecutive years (Fiksel et al., 2021). The service sector is a key part of the country’s economy, with Indian IT companies providing services worldwide. Agriculture plays an important role, providing food and employment for a large part of the population (Kumar et al., 2020). The Indian Textile Corporation is one of the largest textile companies globally, producing everything from fiber to ready-made garments. India is known for its abundance of natural resources, such as cotton, jute, silk, and gold, which are important for both domestic consumption and international exports. Gold, in particular, plays a big role in India’s natural resources, being highly valued and used not only in jewelry but also as a form of investment and cultural symbol (Google Arts & Culture, 2023). Indian fabric designers and weavers are recognized worldwide for their fine craftsmanship (Satish Kumar R, 2018). The balance of payments crisis in 1991 led the government to liberalize the economy, encouraging foreign investment and trade. Some of India’s key natural resources also include mica, diamonds, oil, natural gas, arable land, and chromite.

India has a wide range of indigenous products, like textiles and wooden crafts, which are sold worldwide, especially in the United States. The export of clothing from India has grown significantly due to the variety of products offered, with major retailers such as JC Penney, Target, and Calvin Klein sourcing from India (Satish Kumar R, 2018). The Indian textile market is valued at $16 billion, making up around 6% of the global market. These products appeal to consumers looking for unique and sustainable items. In recent years, India’s economic growth has created a strong consumer market for foreign retailers (Manveer M. & Sang-Eun B., 2011). India’s growing trade relations with countries like Bangladesh and Nepal could help expand its exports to the United States. Collaboration in sustainable fashion between India and Bangladesh could lead to environmentally friendly products. The rise of digital platforms like Amazon and Alibaba has also changed the way companies operate, emphasizing the importance of online business (Khurana, 2022). Additionally, India’s textile exports saw a significant increase in knitwear, with exports growing by 21.94% in 2020-21.

Figure 1: Map of India showing major geographical regions. (National Geographic, 2014)

“India, is a country that occupies the greater part of South Asia. It is made up of 28 states and eight union territories, and its national capital is New Delhi” (Calkins & Allchin, 2018). India’s geography is incredibly diverse, featuring everything from the towering Himalayas in the north to the fertile Indo-Gangetic Plain, the dry Thar Desert in the northwest, and the lush Western Ghats on the west coast. It has a mix of tropical climates with wet and dry areas, and the northern parts experience a humid tropical climate. As National Geographic (2014) notes, India is surrounded by water on three sides, bordered by the Bay of Bengal to the southeast and the Arabian Sea to the southwest, with the Himalayas rising in the north. The central region includes the high Deccan Plateau, while the eastern coast is known for its river deltas and tropical islands like the Andaman and Nicobar Islands. India is flanked by the Bay of Bengal, the Arabian Sea, and the Indian Ocean and shares borders with several countries, such as “borders with Bangladesh, China, Nepal, Bhutan, Myanmar, and Pakistan in the north” (India: Discover its Diverse Climate and Geography, 2019). The varied landscapes and climatic zones play a crucial role in shaping the country’s agriculture, wildlife, and overall environmental landscape. The diverse landscapes and climate zones are essential in shaping the country’s agriculture, wildlife, and overall environmental conditions.

India’s cultural geography and complex economic landscape have a huge impact on global garment and textile commerce. “The Constitution of India recognizes 22 languages as scheduled languages, including Hindi, Bengali, Telugu, Marathi, Tamil, Urdu, and others” (Vedanta, 2024). The country is well-known for its vibrant traditions, regional fashions, and different wear preferences, which represent the several states’ languages, religions, and customs. Traditional clothing like saris, dhotis, and kurta pajamas, for example, vary widely between regions, appealing to both local and worldwide markets. In addition to cultural aspects, India’s economic geography is crucial to the textile industry. “The buzzing cities of Mumbai, Kolkata, Chennai, and Delhi contain a melting pot of rapid economic development and technological innovation, with a notable example being the continually expanding telecommunications sector” (Scroope, 2018). The interrelationship of urban areas like Mumbai and Delhi attracts individuals from rural regions seeking opportunities, while those rural areas contribute crucial food and supplies to the city. Economically, India is a member of the G8, and it is widely acknowledged as an active rising market that influences global economic trends essential to the G8. With its rapid economic expansion and large customer base, India has a considerable effect on global economic dynamics. Furthermore, India’s participation in sustainable development projects aligns with the G8’s priorities for climate change, energy security, and environmental sustainability. Also, different states are interdependent, with industrialized regions relying on agricultural supplies from states like Punjab. This dependency promotes commerce and helps to balance growth throughout the country. With a fast-rising economy, India has emerged as a key hub for textile manufacture and commerce. Vedanta (2024) highlights that regional crops and spices contribute to diverse cuisines. Cities such as Mumbai, Delhi, and Bangalore serve as important centers for fashion and textile commerce, drawing worldwide firms aiming to reach a large consumer base. The economic variety between urban and rural locations impacts purchasing behavior, with premium companies catering to rich consumers in cities and more economical options accessible in smaller towns.