​ As per their “India Second-Hand Apparel Market” report, the Indian market was valued at USD ~3,500 million in 2024, growing at a CAGR of about 13.20% during the forecast period from 2025 - 2033 to reach USD million by 2033.

India, for long, has been one of the key players in the global textile and apparel industry and is currently experiencing a marked change due to the growth of the second-hand apparel market. This change can be associated with global tendencies of sustainability and the shift in the consumers’ actions. According to the Ministry of Commerce & Industry, on April 1, 2025, the textile and apparel industry contributes 2.3% to our GDP, 13% to industrial production, and 12% to exports. India exported textile items worth US$ 34.4 billion in 2023-24, with apparel constituting 42% of the export basket, followed by raw materials/semi-finished materials at 34% and finished non-apparel goods at 30%. It is also the second largest employment generator, after agriculture, with over 45 million people employed directly, including many women and the rural population. As further evidence of the inclusive nature of this industry, nearly 80% of its capacity is spread across Micro, Small, and Medium Enterprises (MSME) clusters in the country. These reasons provide a solid ground for the development of the second-hand apparel market in terms of both the economy and the environment.

Key regulations, laws, and policies related to the Second-Hand Apparel Market in India

1. Foreign Trade Policy (FTP) – Directorate General of Foreign Trade (DGFT)

 The import of worn clothing as used apparel is banned and, if allowed, can only be done through the ports of Kandla or Mumbai, but only under the licensing terms.

 Import is usually allowed for relief items, Industrial use, and for recycling purposes, and this calls for adherence to the regulation on pre-shipment inspection facilities.

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2. Bureau of Indian Standards (BIS) – Quality and Safety Norms

 While second-hand clothes are not required to meet certain BIS product certifications, all companies that deal in used clothes are, however, expected to observe cleanliness and safety measures that will minimize health risks.

 It is important for sellers to clean, fumigate, and label their products in the right manner, especially the imported or those to be sold online.

3. Environment Protection Act (1986) & Waste Management Rules

By the Solid Waste Management Rules 2016 & the Environment Protection Act, many firms that are associated with textile recycling or reselling are to follow the guidelines on the proper disposal of waste.

These laws relate to the circular economy, where the use of used clothes and other textiles is encouraged, which has an indirect link to second-hand apparel.

4. Consumer Protection Act, 2019

This Act holds the sellers of second-hand apparel, especially online businesspeople, responsible for misleading information, substandard merchandise, or information hiding.

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5. E-commerce Guidelines – Ministry of Consumer Affairs (2020)

Consumer protection regulation, especially about online-only purchase of second-hand clothing, should include requirements to disclose essential facts that may affect casual buyers’ decisions, such as the condition of the clothes being offered, the identity of the seller, return policies, etc.

Ethical business practices require it to be mandatory for the platform to indicate whether the product is refurbished, used, or new.

6. Department for Promotion of Industry and Internal Trade (DPIIT)

·      Although the current policy is still being reviewed, this policy focuses on providing support to the digital retail, thrift platforms, as well as the MSMEs, which in extension entails second-hand apparel sellers.

It is intended to standardize the policy and make business convenient for retail players irrespective of segments.

7. Goods and Services Tax (GST) Regulation

·      Second-hand apparel, if sold by registered dealers or through an online platform and if it comes under the margin scheme, is liable for 5% GST if it is an intrastate supply.

 One of the important aspects under GST norms is that every proper invoice should be prepared with the details and taxes as per the norms.

Government Support to the Textile and Apparel Industry

An initiative launched by the Indian government was the “Make in India” whereby the government adopted several policies to boost the competitiveness of the textile industry:

Production Linked Incentive (PLI) Scheme: This comes with an allocation of ₹10,683 crore and focuses on the promotion of manufacturing regarding man-made fibers and technical textiles. ​

 PM MITRA Parks: With ₹4,445 crore for 2021-2028, the government aims to develop seven Mega Integrated Textile Region and Apparel Parks for creating world-class facilities. ​

 Technology Upgradation Fund Scheme: Basically, this scheme offers grants for capital for the upgrading of technology in the MSME sector, particularly in textile sectors, whose main budget is ₹17,822 crore. ​

 Samarth Scheme: Primarily skill development; it has trained 3,82,512 no. of beneficiaries till the date of March 2025, thereby improving the workforce skills.

A Sustainable Future for India’s Apparel Industry

The clothing industry in India has now seen a new sustainable progression with the rise of the second-hand apparel market. These concerns are in sync with the country’s emerging focus on the circular economy supported by conscious eco-shoppers, affordability, and the usage of technology. After this, the government’s supportive schemes, the employment potential that the new factory offers, and MSME integration also give the company a favorable environment in which to expand. Given the recent increase in consumption in urban and semi-urban zones and endorsed by key social policies, the used clothing segment gives assurance to develop as one of the integral segments of ethical and sustainable fashion business in the future in India. According to the UnivDatos are rising youth demand for affordable fashion, growing awareness of sustainable fashion, increased urbanization and disposable income, expansion of e-commerce & thrift apps, social media influence on second-hand fashion, the popularity of branded apparel at lower cost, and circular economy push by government & NGOs drive the India Second-Hand Apparel market.  

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