Trade pacts, geopolitics and a young consumer base are reshaping how India shops and designs fashion

As India signs new trade agreements, deepens global economic partnerships, and positions itself as a manufacturing and consumption powerhouse, the impact is beginning to show far beyond balance sheets, shaping how Indian consumers dress, shop, and define identity.

As India continues on its path as a growing economy, brands are increasingly reading consumer demand through a wider macro lens. According to Anuradha Chandrasekhar, co-founder of trend intelligence platform ICH NEXT, fashion consumption today is influenced by political positioning, trade relationships, and India’s growing global confidence, alongside traditional economic indicators.

“These larger cultural and economic nuances — whether it’s international trade relationships, the country’s political stance, or where India is focusing its tourism and cultural investments — end up subconsciously guiding consumer behaviour,” Chandrasekhar said. She added that trend forecasting can no longer rely only on what is selling today, but must track early signals from upcoming global and domestic events that shape the intent to change or evolve.

Kanika Vohra, co-founder of ICH NEXT, said this confidence is translating into consumption choices. Indian fusion wear has emerged as a strong identity marker for Gen Z, reflecting a renewed sense of national pride. Unlike earlier generations that leaned heavily towards Western fashion, younger consumers are increasingly embracing Indian aesthetics alongside global silhouettes, signalling a deeper cultural alignment with India’s rising global stature.

For businesses, this shift has clear commercial consequences. While global trend reports continue to influence fashion cycles, many fail to account for India’s climate, body diversity, festive calendar, and regional consumption patterns — factors that become more critical as domestic demand expands and export ambitions grow under new trade frameworks.

Anne Etienne Reboul, CEO of Peclers Paris, underscored the need for localisation even in a globalised economy. “Global analysis alone is not enough. To create real impact, it must be adapted to local cultures, physical specificities, colour preferences, and histories,” she said.

Against this backdrop of changing consumption dynamics, ICH NEXT and Peclers Paris have launched a new India-focused trend forecasting report for western fashion categories, aimed at helping brands decode how macroeconomic, political, and cultural shifts are reshaping India’s fashion and lifestyle market.