Kumar Mangalam Birla, Chairman of ABFRL, noted that India continues to serve as a bright element of the global economy, demonstrating significant resilience despite growing uncertainty on the international stage. He stated this at the annual general meeting of shareholders of Aditya Birla Fashion and Retail (ABFRL).
Birla emphasized that despite high tariffs, political uncertainty, and constant geopolitical tension, the world economy remained relatively stable throughout 2025, and global trade proved more resilient than initially expected. Under these conditions, India's growth momentum has intensified: GDP growth accelerated to 7.6 percent in 2025-26 compared to 7.1 percent in 2024-25, confirming India's status as one of the fastest-growing major economies in the world.
This growth was supported by strong domestic demand, as private consumption increased by 7.7 percent year-on-year. This was achieved through measures such as income tax reduction and GST rationalization, which helped strengthen household purchasing power and consumer sentiment.
He also forecasts that growth will be around 6.6 percent in 2026-27, and India will maintain its position among the fastest-growing major economies globally. Birla concluded that the combination of sustained consumption, supportive policy measures, and the economy's internal strength creates a solid foundation for continued growth.
Regarding the apparel market, Birla views the fashion and lifestyle industry in India as a long-term growth opportunity. He added that rising incomes, favorable demographics, rapid urbanization, and increasing fashion awareness are gradually changing consumer approaches to this category.
Industry estimates suggest that the apparel retail market in India could exceed 14 trillion by 2029-30, with organized and branded segments expected to grow faster than the overall market. Birla noted that this structural shift presents a significant opportunity for the company, given the breadth of its portfolio and presence in some of the most attractive consumer segments.
Following the demerger, ABFRL is moving to the next phase with greater clarity, a more focused approach, and a portfolio designed to participate in several growth vectors of Indian fashion. The company is present in ethnic wear, 'masstige' (a blend of 'mass' and 'prestige'), mass-market retail, luxury retail, and digital brands. Birla stated that this combination allows for scaling with greater focus, responding more effectively to changing consumer needs, and building a stronger and more sustainable business over time.
Looking ahead, Birla acknowledged that the company closely monitors short-term volatility in the retail environment but remains confident in the strong structural opportunity of the organized fashion and lifestyle market in India. Growing aspirations, increased penetration of organized retail, and a preference for trusted brands form a solid base for ABFRL's next phase of growth. The company's priorities are clear: to unlock the full potential of the portfolio by driving profitable growth, strengthening unit economics, scaling the strongest offerings, and continuing to create a differentiated consumer experience across all channels.