- A readymade garment shop can start from around ₹5–15 lakh depending on size and location.
- Source smartly from hubs like Tirupur (knits) and Ludhiana (hosiery/woollens).
- The businesses that survive control size/colour stock and markdowns from day one.
Readymade garments are one of India's most popular retail businesses — steady demand, repeat customers and healthy festival spikes. But margins live and die by stock control. Here's a practical, step-by-step guide to starting a garment business in 2026, with realistic numbers.
1. Investment needed (indicative)
| Item | Approx. cost |
|---|---|
| Shop deposit & interiors (racks, trial room, counter) | ₹2–8 lakh |
| Opening stock (styles × sizes × colours) | ₹3–10 lakh |
| Billing software + barcode hardware | ₹60,000–₹1.2 lakh |
| Licenses, signage & misc. | ₹20,000–₹50,000 |
2. Licenses & registration
- Shop & Establishment registration (state)
- GST registration (mandatory above the turnover threshold)
- Local municipal trade licence
- Current bank account and (optionally) a brand/trademark if you'll private-label
3. Source your stock well
- 1Pick a focus — men's, women's, kids' or a mix — and a price segment
- 2Source from hubs: Tirupur for knits/T-shirts, Ludhiana for hosiery/woollens, Surat for ethnic
- 3Buy a balanced size curve (more Medium/Large, fewer extremes) to cut dead stock
- 4Negotiate credit terms and start narrow, then widen range as you learn demand
4. Run it profitably from day one
The difference between a shop that thrives and one that drowns in dead stock is size/colour discipline. From opening day, use garment software to bill by barcode, track stock by exact SKU, and watch your fast- and slow-movers — so you reorder what sells and mark down what doesn't before it's worthless.
Over-buying 'safe' extremes (XXL, unusual colours) that feel cheap in bulk but become next season's markdown pile. Buy to your real size curve, not the supplier's offer.
How much does it cost to open a garment shop in India?
A small readymade shop typically needs ₹5–15 lakh including deposit, opening stock, fit-out and billing software — more for a large showroom or a branded store.
Do I need GST registration?
Yes if your turnover crosses the threshold (and usually needed to buy from wholesalers on proper invoices). Garments attract 5% GST under ₹1,000 and 12% above.
Opening a garment shop and want it running smoothly from day one? Book a free Wizix demo and we'll set up matrix billing, stock and GST tailored to your business.
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