§1What this business is
Fabric in different colours and designs is spread on a table, cut to size with scissors, stitched on power sewing machines, finished with hooks, eyelets and buttons by hand, then pressed and packed. Buyers are children's-wear shops, wholesalers and school-uniform buyers.
Capacity: 90,000 garments a year.
§2Is it right for you?
Who it is for
A tailor or boutique owner who can design and sell to local shops.
Who it is not for
Someone with no garment or tailoring background.
Advantages
- Parents buy children's clothes often as children grow
- Simple process that tailors already know
- Small investment for 9 jobs
- Can add school uniforms and festival wear
Drawbacks
- Net surplus is under 9% of sales
- Fabric is two-thirds of sales
- Designs must follow fashion
- Branded and online children's wear competes hard
Skills you need
- Pattern cutting
- Stitching and finishing
- Design and colour sense
- Selling to shops and wholesalers
Why difficulty 2/5: Easy to start; margins depend on design and selling.
§3Market
Who buys
- Parents buying for children
- Schools (uniforms)
How it sells
- Children's-wear shops
- Garment wholesalers
- Weekly markets and fairs
Good to know
- The profile says new fashion trends keep raising demand for children's garments.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Power-operated sewing machines | — | — |
| Embroidery machine | — | — |
| Overlock stitching machine | — | — |
| Measuring tools (set squares, tape), large and small scissors | — | — |
| Cutting table and stools | — | — |
| Washing machine and hydro-extractor | — | — |
| Portable steam press | — | — |
| Wooden racks and office furniture | — | — |
| All equipment with erection and installation | — | ₹6,75,000 |
From: KVIC Project Profile — Children Garments (PMEGP)
- Fabric in different colours and designs₹27.72 lakh a year at full capacity in the profile
- Thread, hooks, eyelets and buttonstrims
- Labels and packing material₹25,000 a year
§5Licences & registration
- Udyam
- GST
- Trade licence
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
KVIC/PMEGP model project; MUDRA (up to ₹20 L) and CGTMSE fit the ₹9.85 L size.
§7Money
How the investment is worked out: KVIC profile: equipment ₹6.75 L (power sewing machines, embroidery machine, overlock machine, measuring tools and scissors, cutting table and stools, washing machine, hydro-extractor, portable steam press, wooden racks, erection, office furniture) + working capital ₹3.10 L = ₹9.85 L. Land own, no work-shed cost.
Working capital: Working capital ₹3.10 lakh; the profile works out ₹3.14 lakh per cycle. Fabric is ₹27.72 lakh a year at full capacity.
Year not printed on the KVIC profile — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: AEPC
- Clothes for older children go under the regular garment headings 6203–6206 by type.
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Unsold stock after a season
- Fabric price rise
- Price competition
- Slow payment from shops
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working children's garments unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam, GST), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Children's Garments?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.