India's apparel market is expected to grow at nearly 11 per cent to reach USD 85 billion by 2021, according to the India Business of Fashion Report released on Tuesday.

The estimates are part of a study by Rajat Wahi, Partner, Deloitte India, titled 'Apparel and fashion industry and the importance of innovation and sustainability' for the report.

"The Indian apparel market pegged at around USD 65 billion, is the second-largest retail market after food & grocery in India. It grew at a Compound Annual Growth Rate (CAGR) of 11.5 per cent in the period from 2012-17 and is expected to grow at nearly 11 per cent CAGR in 2017-21 period to reach a value of USD 85 billion by 2021," the report said.

The report further illustrates that the country's fashion market is majorly driven by key growth drivers, including young demographics, rising urbanisation, increasing affluence and a growing middle income segment, greater brand awareness, better accessibility and availability and increased formalisation of the sector.