Even though many people don't realise it, India has played an important role in the international fashion scene, as a source of inspiration and for its workmanship. Valentino, Escada and Badgley Mischka are just a few of the top brands that have been sourcing their fabrics, dyes and embroidery there for years, and Indian beading and mirror work have featured in many designer collections (consider the Jean Paul Gaultier mirrored top Uma Thurman wore at Cannes), and remains unrivalled for quality and intricacy.

At India's fashion week last year, buyers from the likes of Browns, Selfridges, Barney's New York and Bloomingdales could be found in the front row. Tahiliani, regarded as the founder of Indian couture, has had shows in Milan, and sells his east-meets-west collections at stores such as Scoop in New York. Another designer making headlines is Suneet Varma, who was described as being 'as good as Valentino' by Giuseppe Modenese, honorary president of the National Chamber for Italian fashion, after showing his collection there last year.

Little wonder that the likes of Elizabeth Hurley and Naomi Campbell are opting for traditional Indian attire. 'Indian designers have a lot of rich and strong heritage to fall back on - for instance the embroidery attracts many buyers and audiences in the west,' says Arati Thapa, a fashion journalist at the Hindustan Times. 'Unlike western designers, ours have been able to keep an identity of their own only by designing [traditional items], which makes them stronger culturally.'

There is no shortage of outlets in Hong Kong. Sanskrit, in Central, carries clothes from India's top designers. Living Costume sells cheaper fashion, accessories and home wares. Sunita Vachani has been representing couture designers such as Varma and Rina Dhaka for almost eight years.

One of the best-known boutiques in Hong Kong is Tabla in Prince's Building, which was opened in 1999 by former fashion editor Tania Mohan. Tabla is popular not so much for saris as its indo-western tops, handbags and skirts that are worn by the likes of Kate Moss to Lucy Tang.

'It's not the ethnic clothes like churidars or salwar kameez that are selling in Europe or in Hong Kong,' says Mohan. 'It's the workmanship of India, its heritage and colours. We live in a world where cultures are fused, where people are more cosmopolitan and interested in seeing and experiencing other cultures. They experiment and are not narrow minded with what they wear.'

Lane Crawford fashion director Sarah Ruston Pang says that, although Hongkongers are more open to ethnic fashion than they were a decade ago, 'they gravitate to the more sophisticated look. Ethnic is only really fashionable when it's going through the usual cyclical trend of the season, although there's always an Indian inspiration [in fashion] in terms of beading and colours. It is an 'interpretation' of India - not a direct transplanted look.'

This would explain why Mohan's shop does so well with its beaded evening tops, handbags and Indian resort wear (such as caftans and kurtis to wear with jeans or over swimsuits).

Indian designers have been quick to catch on, with many developing lines for this new market. 'I always want to push the limit,' says Tahiliani. 'I want to move away from traditional clothing and do contemporary clothing. Just like Prada does an Italian women's line, I want to do the Indian version - think modern designs with an Indian sensibility, with a twist.'

But will the ethnic look that's so in vogue this season last? 'I don't think it will stay for long,' says Tahiliani. 'Fashion is cyclical. It's all the rage and then it goes mass market and fades. However, for people who use it in clever ways like Missoni and D&G there will always be a market for it, as long as it's fresh.'

Mohan is more optimistic. 'It's very ambitious to say that local women are going to wear a sari every day,' she says. 'Despite this, I genuinely think that Indian touches, whether it's a Nehru jacket, a kurti or embroidery, it's not going anywhere. It's always been in vogue and it's never been a fad that's in and out. It's here to stay - just like Chinoiserie chic.'

Vachani also thinks the look is here to stay. 'So many of our local customers are fascinated with the work these designers do,' she says. 'The mix of stones and sequins can't be found anywhere else. It's the way the designers intermingle everything that's so appealing.'

If donning a sari is a bit too overwhelming for you, Mohan suggests opting for encrusted evening tops or simple items such as a kurti. If that doesn't appeal, there are plenty of new designers who are adopting the east-meets-west look, including Mumbai-based Monisha Jaising, who sells at Harrods, Abu Jani-Sandeep Khosla, who designed the clothes for the award-winning film Devdaas, Sabyasachi Mukherjee, who is all the rage after showing his clothes in Milan recently, and Manzar & Hirsch, who are developing a line of clothing and accessories for high-end fashion stores such as Henri Bendel in New York.

'Most designers, whether western or Chinese, will design a palette that will always suit women, and that's wearable and diverse enough,' says Mohan. 'Indian clothing is great because it suits so many women. The sari just suits everyone. Look at the John Galliano orange sari in his collection this season. This is our time to rock, so let's enjoy it.'

Local guide to Indian and Indian-inspired fashion:

Living Costume, Shop 162, Island

Beverly, 1 Great George St, Causeway Bay, tel: 2882 2896

Monica's Fashion, 1/F Mirador Mansions,

TST, tel: 2368 4432

Sanskrit, G/F 48 Lyndhurst Tce, Central,

tel: 2545 2088

Tabla, M31 Prince's Building, Central,

tel: 2840 0513

Sunita Vachani, tel: 9495 5147

(appointment only).